Enews - 19 August 2026
In this week’s Enews, we look at
• Prime Minister urged to reverse IHT changes at Autumn Budget
• UK inflation increases to highest rate in four months
• Data shows UK economy grew between April and June
Prime Minister urged to reverse IHT changes at Autumn Budget
Prime Minister Andy Burnham has been urged to reverse changes to Inheritance Tax (IHT) at the upcoming Autumn Budget.
Farmers from around the UK have called on Mr Burnham to honour his pre-election pledge to ‘look again’ at the changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).
Prior to the Makerfield by-election, Mr Burnham acknowledged worries regarding IHT changes and pledged to revisit the matter if he became Prime Minister.
From 6 April 2026, the government implemented a £2.5 million cap per person on 100% relief for APR and BPR. Originally, the reforms were proposed with a £1 million threshold, but this was increased to £2.5 million following pressure from the farming community and business groups.
The Ulster Farmers’ Union (UFU) stated that the government ‘has more work to do’ to rebuild trust with the farming community.
Press release: Farming UK
UK inflation increases to highest rate in four months
The UK rate of inflation has risen to 2.9% - its highest level in four months.
The rise was driven by higher energy costs, according to the data published by the Office for National Statistics (ONS).
Following regulator Ofgem’s price cap increase, energy bills rose on 1 July, adding £221 a year to a household’s bill.
Chancellor John Healey stated that the war in Iran is also affecting prices, but stressed that the UK economy is resilient.
Some prices, however, have slowed: food inflation is at 1.3% - its lowest for almost five years.
Responding to the latest figures, Caterina Batog, Research and Economics Analyst at the British Chambers of Commerce (BCC), said: ‘Firms continued to feel the heat from inflation last month, with CPI rising to 2.9%, further fuelling the cost of doing business crisis.
‘Higher household energy bills fuelled by the Middle East crisis played a significant part in July’s CPI rise, and as the Bank of England has warned, energy is likely to push up inflation further in the coming months.’
Press release: British Chambers of Commerce
Data shows UK economy grew between April and June
The UK economy grew by 0.4% between April and June, official data has revealed.
The Office for National Statistics (ONS) found that the summer sunshine and sports fixtures helped the economy grow.
The ONS stated that growth has ‘remained fairly robust’. The services sector and manufacturing propelled growth in the second quarter.
According to the ONS, the economy is currently 1.2% bigger than a year ago.
Responding to the data, Stuart Morrison, Research Manager at the British Chambers of Commerce (BCC), said: ‘Faced with global headwinds from the Iran conflict, the UK economy showed welcome resilience in Q2, growing by 0.4%, according to [the] first estimate.
‘The service sector performed particularly robustly, alongside a welcome return to growth in construction.
‘But the headline figures shouldn’t disguise the cocktail of cost pressures choking long-term business growth.’
Press release: British Chambers of Commerce