Business

Used car retailer Motorpoint has reported a sharp rise in profits after embracing artificial intelligence to power its online sales. The London-listed firm said it sold hundreds of cars through its new AI agent, which has become a key part of its digital sales strategy.

Chief executive Mark Carpenter said the technology, known internally as Lily, had helped the company sustain conversations with potential buyers in a way that human agents often could not.

“We’ve sold about 350 vehicles with the AI agent since we introduced it,” Carpenter said. “Our sales agents keep asking who Lily is, because Lily is the name of the online agent who sold the car. The main purpose is to move customers further along the buying journey — so when they do need to interact with our team, we can answer questions faster and make the process more satisfying.”

Motorpoint said its AI-driven, data-led approach to vehicle sourcing and customer engagement was now fully embedded across its operations. The strategy contributed to an 80 per cent rise in profits to £2.7 million for the six months to the end of September, alongside a 15 per cent increase in turnover to £647.7 million.

The strong performance underscores how digital transformation is reshaping the UK’s automotive retail market, with Motorpoint using technology to streamline the car-buying experience and boost efficiency at a time when consumer confidence remains fragile.

However, Carpenter joined a growing list of UK chief executives warning that economic uncertainty surrounding next month’s autumn budget could dampen consumer sentiment heading into the festive trading period.

A series of potential tax changes — including increases to income tax, national insurance, bank levies, vehicle duties and property taxes — have been floated by Treasury sources ahead of Chancellor Rachel Reeves’s Budget on 26 November. The Chancellor is expected to raise taxes by at least £30 billion to address a widening fiscal gap.

“Trailing different tax changes, whether leaked or speculative, is hugely unhelpful when customers start doubting their disposable income,” Carpenter said. “Uncertainty is always the worst thing in business. Any leader would prefer a stable, known environment — and with this year’s Budget arriving a month later than usual, it’s even harder for seasonal retailers heading into Christmas when people aren’t sure how much they have to spend.”

Motorpoint, which specialises in nearly new cars, has invested heavily in digital tools and automation to stay competitive amid tight margins and volatile consumer demand. The company said it would continue expanding its AI-led operations to deliver faster responses, smarter pricing, and a more personalised customer experience.

Read more:
Motorpoint drives 80% profit surge after selling hundreds of cars through AI agent

Grocery price inflation eased to its lowest level in more than two years last month as supermarkets increased discounts to attract cost-conscious shoppers in the run-up to the chancellor’s budget and the Christmas trading season.

According to new data from Worldpanel by Numerator, grocery inflation slowed to 4.7 per cent in the four weeks to 2 November, down from 5.2 per cent the previous month. The decline came as supermarkets rolled out a wave of price cuts and promotions to offset consumer nervousness ahead of Rachel Reeves’s autumn budget, which is due to be delivered just four weeks before Christmas.

Spending on promotional offers surged 9.4 per cent during the period, accounting for almost a third of all grocery sales, while spending on full-priced goods rose only 1.8 per cent.

Fraser McKevitt, head of retail and consumer insight at Worldpanel, said supermarkets were “very alive to the financial struggles that some households are facing, not least ahead of this year’s budget,” and were focusing on price cuts rather than multibuy deals to deliver clearer value.

He added that discounting was likely to intensify as Christmas approaches, with retailers seeking to protect margins while maintaining customer loyalty during a challenging economic climate.

The easing in grocery inflation mirrors broader consumer trends, with overall UK inflation holding steady at 3.8 per cent in September, according to the latest figures from the Office for National Statistics. The next official inflation data will be published on 19 November.

Worldpanel reported that prices were falling fastest in dog food, toilet paper and sugar confectionery, while rising quickest in chocolate, unprocessed meat and coffee.

Despite tighter household budgets, British consumers continue to trade up within supermarkets, with sales of premium own-label ranges expected to reach a record £1 billion in December, as shoppers opt for restaurant-quality meals at home. Premium private-label products generated £582 million in sales in the latest four-week period.

Overall, take-home grocery sales grew 3.2 per cent year-on-year, with most major supermarkets seeing growth. Tesco, Sainsbury’s, Aldi and Lidl all recorded gains, while Asda and the Co-op slipped back.

Asda, owned by the Issa brothers and TDR Capital, reported a 3.9 per cent fall in sales over the past 12 weeks, with market share dipping to 11.6 per cent from 11.8 per cent. The Co-op’s sales fell 1.4 per cent, reducing its share from 5.7 to 5.4 per cent, while Morrisons saw a modest 2.3 per cent rise in sales but still lost share, falling from 8.5 to 8.3 per cent.

By contrast, Ocado, the online grocer backed by Marks & Spencer, recorded a 15.9 per cent surge in sales, marking one of the strongest performances in the sector as more shoppers continue to blend online and in-store grocery spending.

With the crucial festive period now under way, all eyes will be on how consumers respond to ongoing price cuts — and whether further economic uncertainty ahead of the Budget will tighten the nation’s purse strings or encourage early festive spending.

Read more:
Supermarket discounts drive grocery inflation down to 4.7% ahead of chancellor’s budget

More than six million small and medium-sized enterprises (SMEs) across the globe are calling on world leaders to take urgent and coordinated action to support business-led climate progress, warning that the path to net zero will stall without their inclusion.

In an open letter released ahead of the UN Climate Change Conference (COP30) in Brazil, the SME Climate Hub and its global partners urged governments to adopt a unified set of policies that unlock green finance, simplify climate guidance, and create meaningful incentives for smaller firms to take action.

SMEs account for 90 per cent of global businesses and generate over half of the world’s GDP, yet they are among the least supported when it comes to decarbonisation. Despite their crucial role in local economies and international supply chains, most small businesses still face significant barriers to climate action. A recent SME Climate Hub survey found that 80 per cent of respondents reported either minimal government support or no awareness of existing climate-related incentives.

“The global climate transition cannot succeed if SMEs are left behind,” said Pamela Jouven, Director of the SME Climate Hub. “Governments have the power to turn climate risk into business opportunity. We’re urging Heads of Delegations at COP30 to adopt a practical policy framework that empowers SMEs and recognises them as vital contributors to the net zero transition.”

The open letter calls for governments to strengthen national frameworks so that SMEs are formally recognised within climate and biodiversity strategies and included in consultation processes. It also advocates for the integration of small firms into public procurement systems, ensuring they can compete fairly for green contracts and become part of sustainable value chains.

Jouven and her fellow signatories argue that governments must do more to demonstrate the business case for decarbonisation, including funding research that quantifies the commercial benefits of net zero strategies — from energy efficiency savings and improved resilience to risk, to access to new markets and customers.

Another key priority is clarity. Many SMEs are held back not by reluctance, but by confusion. The letter urges policymakers to develop consistent, centralised guidance to help small firms navigate reporting requirements and access credible resources for climate adaptation and emissions reduction.

Above all, the group stresses that progress depends on unlocking finance. It calls on financial institutions and governments to design funding models that meet the needs of smaller enterprises, including tailored green loans, grants, tax incentives and government-backed guarantees.

“Small businesses are the backbone of economies and global supply chains,” Jouven added. “Empowering them to take climate action will accelerate the delivery of national net zero targets and build resilience across the global economy.”

The letter’s release comes as climate financing is expected to dominate the agenda at COP30 in Belém, Brazil. With SMEs employing two billion people worldwide, the SME Climate Hub warns that failing to equip them for the green transition would not only jeopardise climate goals but risk leaving vast sections of the economy unprepared for the low-carbon future.

Read more:
Six million small firms urge COP leaders to unlock finance and incentives for green growth

Andrew Mountbatten-Windsor is shutting down some of his final remaining business ventures, including Pitch@Palace Global Ltd, once seen as a potential source of private income after the King withdrew financial support.

Pitch@Palace began as a Dragon’s Den-style initiative allowing entrepreneurs to pitch start-up ideas to investors, backed by the then Duke of York. It attracted global attention and corporate sponsors before collapsing under the weight of scandal following Mountbatten-Windsor’s association with convicted sex offender Jeffrey Epstein.

A document filed with Companies House on Tuesday confirmed that Pitch@Palace Global has applied to be struck off the register and dissolved. The application, signed by the firm’s sole director, accountant Arthur Lancaster, declared that there were no outstanding debts or other obstacles to closure.

Lancaster, who has long acted as a business associate of Doug Barrowman and Baroness Michelle Mone — both embroiled in a high-profile dispute over a pandemic PPE deal — is understood to hold the company’s shares on behalf of Mountbatten-Windsor. The former prince remains listed as a person with significant control, under his previous title.

Pitch@Palace’s UK arm was wound up in 2021 after the Newsnight interview that prompted Mountbatten-Windsor’s withdrawal from royal duties and the removal of his official titles. However, its international division, Pitch@Palace Global, had remained open until now.

The company’s most recent accounts show cash reserves dwindling from £220,990 to just £10,965 by the end of March, suggesting that most of the remaining funds have been withdrawn in recent years.

The venture had continued to generate controversy abroad. The Chinese arm’s founder, Yang Tengbo, was accused of espionage — allegations he denied — while a Dutch accelerator, Startup Bootcamp, briefly explored a deal to acquire the business in 2024, citing “immense value” in its international network. That agreement later fell through.

On the same day, a second company linked to Mountbatten-Windsor — Innovate Global Ltd — also filed for closure. Lancaster is again listed as the sole director. The firm, which has no employees and minimal assets, was reportedly intended to serve as a reboot of Pitch@Palace’s international operations under a new brand.

The closures further mark Mountbatten-Windsor’s continued retreat from public and commercial life. Once billed as a champion for innovation and entrepreneurship and the self styled royal entrepreneur-in-residence at the palace , his flagship initiative has now quietly come to an end.

It was also confirmed this week that his surname will formally be rendered with a hyphen — Mountbatten-Windsor — aligning with the spelling first approved by the Privy Council in 1960.

Read more:
Andrew Mountbatten-Windsor winds up Pitch@Palace and remaining business interests

After a decade of rapid growth, Britain’s employee ownership movement is hitting the brakes. New tax rules introduced in last year’s Budget have curbed the number of business owners selling to their staff, following a clampdown on offshore trusts used to sidestep capital gains tax (CGT).

The Employee Ownership Association (EOA) reports that company sales to employee ownership trusts (EOTs) fell from 550 in 2024 to just 200 in the first eight months of this year. The total is now expected to reach around 350 for 2025 — a drop of more than a third.

Fresh figures from HM Revenue & Customs, obtained by accountancy firm Price Bailey, back up the trend. Only 104 EOTs were cleared by HMRC in the three months to June, the lowest level since early 2022.

Experts say the decline follows reforms designed to close tax loopholes exploited by some sellers. Previously, company owners could transfer their businesses to offshore EOTs, whose trustees would quickly resell the company to another buyer, allowing the original owners to pocket the proceeds tax-free.

The government’s new rules now ban offshore structures and introduce a tougher four-year “clawback” clause, meaning sellers could lose their CGT exemption if the company is sold on within four full tax years — up from just one.

James de le Vingne, chief executive of the EOA, said the slowdown “serves as a reminder that despite a decade of learning, education and insights driving growth, greater alignment of employee ownership succession with business support and regional growth plans is still needed to unlock the full opportunity of people-powered growth.”

EOTs were first introduced in 2014 to promote the John Lewis model of shared ownership, offering 100 per cent CGT relief to sellers who pass control to their employees. Since then, the number of such trusts has soared from a few hundred to around 2,500, including well-known firms such as The Entertainer, Go Ape and Richer Sounds.

Robert Postlethwaite, founder of Postlethwaite Solicitors and a leading expert on employee ownership, said that while the new rules had cooled activity, the long-term picture remained positive.

“Some owners used EOTs purely as a tax-efficient exit — that’s no longer the case,” he said. “Those now pursuing employee ownership tend to be genuinely committed to it as part of their company’s future, rather than simply looking for a tax-free escape route.”

He expects the pace to pick up again as more business owners approach retirement: “There are so many companies needing a succession solution, and EOTs will remain an important option.”

Simon Blake, a partner at Price Bailey, described the latest reforms as “the most consequential change to the EOT regime since its introduction,” adding that the four-year rule “fundamentally alters the risk calculus — transforming what was once a frictionless exit into a compliance marathon.”

Despite the slowdown in conversions, the EOA has continued to expand, adding 210 new members in the year to September. The professional, scientific and technical sectors accounted for the largest share of new entrants, followed by IT, manufacturing and construction — evidence that, while the tax breaks may be less generous, interest in shared ownership remains strong.

Read more:
Employee ownership boom cools as tax clampdown slows sales to staff

One in eight UK small and medium-sized enterprise (SME) leaders are planning to relocate themselves, their companies, or both overseas, citing rising taxes and mounting regulatory costs, according to a new report by Rathbones.

The research, released just weeks before Chancellor Rachel Reeves delivers her Autumn Budget, paints a bleak picture of business confidence across the UK’s private sector.

If realised, the potential exodus could involve around 680,000 firms out of the UK’s 5.67 million SMEs — a prospect that analysts warn would hit jobs, tax revenues, and economic growth.

Among SME leaders planning to leave, one-third are considering moving their businesses abroad, with Ireland, Dubai, and the US emerging as the most popular destinations.

Another 26 per cent of business owners expressed growing concern about the UK tax environment, even if they have no immediate plans to relocate.

The survey found that dissatisfaction extends well beyond taxation, with two-thirds of SMEs believing that the government is not doing enough to encourage business growth and more than 40 per cent say current policies are actively unsupportive of enterprise.

Rathbones said many respondents pointed to higher employers’ National Insurance contributions, increases in the national living wage, and complex new regulations as key factors undermining their ability to grow.

“SMEs are the backbone of the UK economy, and the fact that many are considering leaving because of taxation is deeply concerning,” said Ade Babatunde, senior financial planning director at Rathbones.

“Their departure would mean the loss of valuable jobs and tax revenue, at a time when the government is trying to boost growth.”

The findings come as several business groups sound the alarm over the impact of government policy on smaller firms. The British Chambers of Commerce has reported that small exporters are struggling under post-Brexit trade rules, while insolvency specialists Begbies Traynor recently recorded a sharp rise in SMEs facing critical financial distress, particularly in consumer-facing industries.

Many small firms are also bracing for potential changes in income tax, capital gains tax, and business rates in Reeves’ upcoming Budget, following last year’s increases in employers’ National Insurance and capital gains tax.

With SMEs employing 60 per cent of the UK workforce and representing 99 per cent of private sector businesses, experts warn that persistent fiscal pressure on small firms could choke investment, stall hiring, and weaken long-term economic growth.

“The government needs to offer more targeted support for SMEs, whether through tax relief or policies that incentivise growth and risk-taking,” Babatunde added.

“Otherwise, we risk seeing a significant exodus of talent and businesses at a time when the economy can least afford it.”

The warning adds to growing pressure on Reeves to reassure business leaders that her fiscal plans will not further burden small enterprises. With signs of rising unemployment and slowing private investment, economists say the Autumn Budget could be pivotal in determining whether the UK remains a competitive base for entrepreneurs.

Analysts expect Reeves to focus on closing the tax gap and raising new revenue streams, but business groups have urged the Treasury to avoid blunt tax hikes that could deepen economic stagnation.

As one industry leader put it: “Britain cannot tax its way to growth — it needs to back the very people creating it.”

Read more:
Reeves’ tax plans could drive one in eight UK businesses overseas

The Co-op has announced plans to open or refurbish 50 stores before Christmas, marking a major investment drive as it continues to recover from the fallout of a devastating cyber attack earlier this year.

The retailer said the latest openings would bring its total store launches and refurbishments to more than 200 this financial year, representing over £200 million in investment across its estate.

The group, which has 6.9 million member-owners and operates more than 2,300 food stores nationwide, said the programme underscores its “confidence in the future of the high street” — but warned that long-promised business rates reform is urgently needed to sustain investment.

“We’re investing in stores and communities right across the UK because we believe in the future of the high street,” said Shirine Khoury-Haq, Co-op Group chief executive.

“But sustained growth needs certainty. Business rates reform is vital if retailers — especially the 99% who run small stores — are to plan with confidence, protect jobs and keep local economies thriving.”

New stores and refurbishments

The Co-op confirmed that its latest rollout includes:
• 14 brand new stores, including one at the Brent Cross Town development in London — where it will become the site’s first permanent retailer.
• Five micro-format ‘on the go’ stores designed for busy urban locations.
• A new franchise store opening at Lancaster University.
• The remaining outlets will be re-openings of previously closed sites following major refurbishments featuring updated designs and expanded product ranges.

The push comes as the Co-op works to recover from a large-scale cyber attack in April, which it said would reduce annual earnings by around £120 million and cause £206 million in lost sales.

Hackers reportedly impersonated employees to gain access to internal systems, stealing data for all members. While the attackers were able to copy a company file, they failed to install ransomware or inflict deeper damage on the retailer’s digital infrastructure.

The incident temporarily left some stores with bare shelves and disrupted supply chains, prompting the group to accelerate investment in digital resilience and security.

Ahead of the autumn Budget, the Co-op has joined a chorus of major UK retailers urging the Chancellor Rachel Reeves to deliver property tax reform.

Business rates — based on commercial property values — have long been criticised by high street chains and small shops as outdated and unfairly weighted against bricks-and-mortar businesses.

Khoury-Haq said the government had “an opportunity to do its part” by modernising the system to make investment in high street stores viable.

“Co-op is showing what’s possible when businesses commit to communities,” she said. “The government now has an opportunity in the autumn Budget to do its part by delivering reform that’s long been promised — giving every retailer, from small to large, the stability to invest and grow.”

The Co-op’s expansion drive offers a rare boost of optimism for the UK’s embattled retail sector, which continues to grapple with rising operating costs, inflation, and weakened consumer confidence.

Analysts say the retailer’s move demonstrates the resilience of community-focused convenience models and highlights the continuing relevance of physical retail spaces, even as online competition intensifies.

If successful, the programme could help the Co-op regain lost ground and reinforce its reputation as one of the UK’s most community-oriented retailers — proving that even in a challenging environment, the high street still has room to grow.

Read more:
Co-op to open or refurbish 50 stores as it recovers from £120m cyber attack hit

The UK government has unveiled a new £75 million strategy to accelerate the phase-out of animal testing in scientific research, setting out a clear roadmap to replace existing experiments with cutting-edge alternatives such as organ-on-a-chip systems, artificial intelligence modelling, and 3D bioprinted human tissues.

Science Minister Lord Vallance announced the plan on Tuesday, calling it a “roadmap for innovation and compassion” that will help the UK become a global leader in non-animal testing methods. The initiative will back scientists and regulators to adopt validated alternatives without compromising safety in fields such as medicine, vaccines, and chemical testing.

The strategy includes ambitious milestones. By the end of 2026, the government plans to end animal testing for skin and eye irritation and skin sensitisation. By 2027, tests on mice for Botox potency and certain contamination checks for human medicines will be replaced with DNA-based methods. By 2030, the use of dogs and non-human primates in pharmacokinetic studies—tracking how drugs move through the body—will be significantly reduced.

Funding will establish two major national hubs: one focused on data sharing and collaboration between researchers, and another dedicated to streamlining regulatory approval for new non-animal testing methods. An additional £15.9 million from the Medical Research Council, Innovate UK, and the Wellcome Trust will support “human in vitro” disease models, including research on the liver, brain, cancer, pain, and blood vessels.

Lord Vallance said the UK’s plan “will end animal testing wherever possible and roll out alternatives as soon as it is safe and effective to do so.” Animal Welfare Minister Baroness Hayman hailed the move as “a major step forward for animal welfare and scientific innovation.”

The National Centre for the Replacement, Refinement and Reduction of Animals in Research (NC3Rs) will play a central role in implementing the plan. Its chief executive, Dr Vicky Robinson, described the roadmap as “ambitious” and a crucial step in ensuring the UK maintains its global leadership in ethical science.

The strategy has been widely welcomed across the scientific and animal welfare communities. The RSPCA said it marked “a clear ambition towards eliminating animal use,” while the Association of the British Pharmaceutical Industry (ABPI) praised the government’s support for research that maintains patient safety while advancing humane science.

However, experts also cautioned that animal research will remain necessary in some areas until alternatives are fully validated. Dr Nicola Perrin, chief executive of the Association of Medical Research Charities, said: “It’s important that we continue to use animals where no other options are available, while doing everything possible to advance alternatives.”

The plan will be overseen by a cross-departmental committee chaired by Lord Vallance, with key performance indicators published next year to track progress. If successful, it could pave the way for the UK to become a world leader in ethical, high-tech bioscience—delivering breakthroughs in medicine while ensuring animal testing becomes increasingly obsolete.

Read more:
UK to phase out animal testing faster under £75m roadmap for scientific alternatives

Lord Anthony Bamford, the billionaire chairman of JCB and one of the Conservatives’ most prolific donors, has donated £200,000 to Nigel Farage’s Reform UK, signalling growing business support for the populist party.

JCB confirmed the contribution on Saturday, stating that it had donated the same amount to both the Conservative Party and Reform UK in recent weeks.

“Both the Conservative Party and Reform UK believe in small business, and it’s for that reason JCB has donated £200,000 to each,” the company said.

The move marks a significant shift for Bamford, who has donated over £9 million to the Conservatives and was one of Boris Johnson’s key financial backers, even hosting the former prime minister’s wedding celebration.

Bamford, a long-time Brexit supporter who helped bankroll the Vote Leave campaign, has not previously donated to Farage’s party. However, his company sponsored Reform UK’s annual conference in September and has featured prominently in Farage’s campaign events.

At the launch of Reform’s local election campaign in March, Farage arrived at his speech riding one of JCB’s pothole-filling machines — a symbolic nod to Bamford’s company and its ties to British manufacturing.

Last year, Bamford revealed that he had paid for an £8,000 helicopter flight for Farage from Kent to JCB’s headquarters in Rocester, Staffordshire.

Farage welcomed the donation as proof that Reform UK is gaining credibility among entrepreneurs and small firms. The party has long claimed that “big business dominates government policymaking,” leaving small businesses “without a voice.”

On Monday, Farage announced the creation of a new small business advisory group, chaired by Kevin Byrne, founder of Checkatrade, to help shape Reform’s economic policies.

“Unlike other party leaders, I set up my own company in 1993, so I know how tough it can be,” Farage said. “It’s the big businesses that shape policy. The small businesses don’t even get a look in.”

He also reiterated his opposition to the government’s off-payroll IR35 rules, which affect contractors and freelancers, and attacked Labour’s planned workers’ rights reforms, which he said would place “crippling burdens” on employers.

Reform UK has struggled to attract major donors despite rising poll numbers, relying heavily on internal financing from senior figures such as Richard Tice, who serves as both deputy leader and key funder.

According to Electoral Commission data, the Conservatives raised £6.3 million in the first half of this year — roughly three times the £2.1 million raised by Reform UK.

However, the balance may be starting to shift. In October, property tycoon Nick Candy confirmed that he had fulfilled his £1 million donation pledge to Reform, while Bamford’s contribution represents the party’s first major donation from an established Tory backer.

A Reform UK spokesperson declined to comment on the donation, but Farage thanked Bamford publicly during Monday’s event, calling it “a sign that small business Britain is coming our way.”

Read more:
Tory donor Anthony Bamford backs Reform UK with £200,000 donation

Chancellor Rachel Reeves is preparing to announce a landmark whistleblower reward scheme that will pay informants a share of the taxes recovered from exposing large-scale fraud — a first for the UK.

According to the Financial Times, the initiative will be unveiled in the Autumn Budget later this month as part of the government’s wider “Close the Tax Gap” strategy. The scheme, modelled on the successful US system, would allow HMRC to pay tipsters up to 30 per cent of any money recouped from tax evasion cases based on their information.

The move represents a major shift in Britain’s approach to whistleblowing, which has traditionally relied on moral duty rather than financial incentive.

“The new incentive programme will target higher-value tax fraud and supercharge enforcement,” a Treasury source said.

The Treasury estimates that tax evasion cost the UK £5.5 billion in 2022–23, though MPs on the Public Accounts Committee have warned that figure could be “just the tip of the iceberg.”

Across the 2023–24 financial year, the government lost £47 billion in unpaid taxes, underscoring the scale of the problem Reeves is seeking to address.

HMRC has already ramped up enforcement activity, conducting 648 raids in the past year — a 42 per cent increase from 2021–22 — and paying out nearly £1 million to informants in 2023–24, up 92 per cent from the year before.

The UK’s new whistleblower system is closely inspired by the US Department of Justice’s False Claims Act and the Internal Revenue Service (IRS) Whistleblower Program, which have recovered billions in unpaid taxes and fraud penalties.

Nick Ephgrave, then-director of the Serious Fraud Office, previously called for Britain to adopt a similar system.

“If you look at the US example, their system allows that — and I think 86 per cent of the $2.2 billion in civil settlements and judgments recovered by the US Department of Justice were based on whistleblower information,” Ephgrave said in February 2024.

The launch comes as the government faces growing pressure to tighten tax enforcement and close loopholes exploited by high-value individuals and corporations.

Fraud losses reached £629 million in the first half of 2025, according to UK Finance, with much of the surge driven by the use of AI-powered scams.

Reeves is expected to frame the whistleblower scheme as part of a broader campaign to make “those who owe tax pay their fair share,” while simultaneously plugging a multi-billion-pound fiscal gap.

The Treasury has not confirmed how rewards will be calculated, but sources suggested the system will be limited to serious cases of tax evasion and corporate fraud, with oversight mechanisms in place to prevent abuse.

If implemented, the plan would mark a significant cultural and operational shift for HMRC — aligning the UK with the US in recognising whistleblowers as key allies in the fight against economic crime.

Read more:
Reeves to unveil US-style whistleblower rewards to tackle tax fraud