Enews – 26 September 2025

In this week’s Enews, there is a call for the Chancellor to make changes to National Insurance and Income Tax rates in the Autumn Budget. There is also news on the potential for AI to boost the world economy and a report into the cost of failed housing transactions to update you on.

• Chancellor urged to cut National Insurance but hike Income Tax in Autumn Budget
• AI to boost trade by nearly 40% by 2040 if gaps are bridged, says WTO
• Failed housing transactions cost £1.5 billion a year

Chancellor urged to cut National Insurance but hike Income Tax in Autumn Budget

Chancellor Rachel Reeves has been urged to cut National Insurance contributions (NICs) and increase Income Tax to create a ‘level playing field’ and protect workers’ pay.

The Resolution Foundation said the Chancellor should make a 2p cut to NICs as well as a 2p rise in Income Tax in the Autumn Budget.

The think tank said the move would help to address ‘unfairness’ in the tax system.

Adam Corlett, Principal Economist at the Resolution Foundation, said:

‘Significant tax rises will be needed for the Chancellor to send a clear signal that the UK’s public finances are under control.

‘Any tax rises are likely to be painful but given the fallout from the recent employer NICs rise, the Chancellor should do all she can to avoid loading further pain onto workers’ pay packets.

‘She can do this by switching our tax base away from employee NICs and onto Income Tax, which is paid by a far broader group in society. This should form part of wider efforts to level the playing field on tax, such as ensuring that lawyers and landlords face the same tax rates as their clients and tenants.

‘These sensible reforms would raise revenue while doing the least possible harm to workers and the wider economy. And by acting decisively, the Chancellor can turn her full attention back onto securing stronger economic growth.’

Internet link: Resolution Foundation website

AI to boost trade by nearly 40% by 2040 if gaps are bridged, says WTO

Artificial intelligence (AI) could boost the value of cross-border flows of goods and services by nearly 40% by 2040 thanks to productivity gains and lower trade costs, according to a World Trade Organization (WTO) report.

However, the report says that for AI and trade to contribute to inclusive growth policies need to be in place to bridge the digital divide, invest in workforce skills, and maintain an open and predictable trading environment.

William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), said:

‘This report is a call to action for business and policymakers worldwide to ensure we realise the full benefits of AI in boosting global trade, productivity and skills.

‘It identifies a possible AI premium for global economic growth of 12-13% and goods export growth of up to 37% by 2040. AI can boost exports by reducing red tape, speeding up journey times, and cutting customs delays. AI-services are also highly exportable, and can be a major source of growth, in an area where the UK is already a world leader.

‘But tariff and technical barriers to trade need to be dealt with to allow AI to realise these full gains. We also need to ensure that electronic transmission of services across the world remains tariff-free.’

Internet link: WTO website BCC website

Failed housing transactions cost £1.5 billion a year

Failed housing transactions cost consumers and the economy at least £1.5 billion every year, according to research published by Santander.

The research says that over 530,000 transactions fall through every year due to the UK’s antiquated homebuying process.

The economic analysis shows that the direct cost to consumers of this through expenditure on elements such as mortgage and solicitors’ fees that consumers cannot recoup, is £560 million annually.

However, the impact is not just limited to consumers. The repercussions on the broader economy include the loss of work output due to stress and the time taken to buy a property within work hours, estimated at £380 million per year.

There is also the cost of people’s reduced wellbeing, estimated to be £400 million and wasted leisure time, approximately £170 million.

David Morris, Head of Homes at Santander UK, said:

‘The homebuying journey is still operating in the confines of a framework that was established a century ago. This antiquated system is an increasingly heavy anchor weighing on the economy and fixing it must be key.

‘While the government has put the housing market firmly on its agenda – as this research shows – the scale of the challenge remains largely underappreciated, and that’s why we’re calling for powerful reforms to give buyers and sellers more confidence, ease the financial and emotional strain and create a housing system fit for the needs of today’s consumers and economy.’

Internet link: Santander website