Rachel Reeves touched down in Washington on Tuesday carrying an unwelcome piece of luggage: the International Monetary Fund’s verdict that Britain is the biggest economic casualty of the Iran war among the world’s wealthiest nations.

The Fund’s spring forecast, delivered as the Chancellor arrived for the IMF and World Bank meetings, trimmed 0.5 percentage points from the UK’s 2026 growth projection, the steepest cut handed to any G7 economy since its January outlook. Inflation is now expected to push towards 4 per cent, while unemployment is heading for its highest rate in more than a decade.

For the small and medium-sized businesses that power two-thirds of the UK’s private sector workforce, the numbers translate into a grim set of pressures: softer consumer demand, stubborn cost inflation and a Treasury with precious little headroom to soften the blow.

The UK entered the conflict already on the back foot. Growth was sluggish well before the first missiles flew, with firms and households hunkering down ahead of last autumn’s Budget amid a fog of tax speculation that dampened activity across the high street and the boardroom alike.

Pierre-Olivier Gourinchas, the IMF’s economic counsellor, pointed to what he called a “shadow effect” lingering from that weaker momentum, a drag the Fund believes will bleed into next year’s performance. It is a diagnosis the Chancellor firmly rejects, arguing that Labour inherited a damaged economy from the Conservatives and has since set firmer foundations. Yet the data is unsympathetic: British households were already wrestling with the G7’s highest inflation rate before a single Iranian oil facility was struck.

The deeper problem is energy. The Iran conflict has delivered the sharpest shock to global supplies since the oil crises of the 1970s, and Britain’s gas-heavy power mix leaves it unusually exposed. Although much of the country’s gas is produced domestically, imported cargoes are being bought at sharply elevated wholesale prices, and because gas sets the marginal price for UK electricity, the pain travels quickly from the terminal to the meter.

“There is more of a pass through, if you want, of gas prices into wholesale prices of energy,” Gourinchas observed, noting that household bills were being cushioned only temporarily by existing government measures.

Reeves has used her Washington platform to push for de-escalation while sharpening her criticism of Donald Trump’s decision to prosecute the war on Iran. The political calculus is plain enough. With the public finances squeezed by elevated debt and stubbornly high borrowing costs, her fiscal room for manoeuvre is wafer-thin, and Labour is trailing in the polls as it approaches a testing set of May local elections.

Treasury insiders expect short-term, narrowly targeted relief measures rather than a broad spending splurge, precisely the prescription the IMF itself has endorsed. Anything more expansive risks spooking the gilt market and undoing the hard-won credibility Reeves has spent the past year trying to bank.

For Britain’s business community, the more consequential question is what happens once the immediate crisis fades. Insulating the country against the next energy shock will demand a far more aggressive push into domestic renewable generation, grid reinforcement and the kind of supply-side reforms that unlock private investment at scale.

SME owners hoping for relief will be watching two pressure points closely: whether the promised targeted support reaches smaller firms exposed to soaring input costs, and whether the long-promised industrial strategy finally delivers the cheaper, home-grown power that British manufacturers have been demanding for the best part of a decade.

Reeves returns from Washington with the IMF’s blessing for her fiscal restraint, but also with its unvarnished warning that, on current trajectory, Britain will spend 2026 at the bottom of the G7 league table. For a Chancellor already short on political capital, that is a verdict she can ill afford to let stand.

Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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The tax filing deadline for 2025 tax returns is here, with taxpayers having until just before midnight on April 15 to file their returns or request an extension.

Last-minute tax filers racing against the clock to get their return filed ahead of the IRS deadline will want to be systematic in ensuring they have everything they need to file their return accurately when they get started, according to a tax expert.

“Gather all your documents in one place,” said Lisa Greene-Lewis, CPA and TurboTax expert, in an interview with FOX Business. “Documents that report your income like your W-2s, 1099s, and then don’t forget about any forms or receipts for anything that can be deductible.”

She noted that the process of gathering those documents may be more extensive than in years past due to changes from last year’s One Big Beautiful Bill Act, which created new provisions extending tax relief to income from tips, overtime and Social Security.

HOW TO FILE A TAX EXTENSION BEFORE THE APRIL 15 DEADLINE

Taxpayers can get refunds faster by e-filing their returns. (Timothy Fadek/Bloomberg via Getty Images)

Other provisions affected the child tax credit and created a deduction for auto loan interest on some new U.S.-made cars, while businesses are able to depreciate equipment for the year purchased instead of amortizing it over several years.

Taxpayers who anticipate getting a refund back from the IRS can get their refund the fastest by e-filing their return.

“Go online and e-file with direct deposit – that’s the fastest way to get your refund,” Greene-Lewis recommended. “If you mail your return, you don’t know when the IRS is going to get it. If you e-file, you get a message that they’ve accepted it.”

BEWARE OF THESE TAX SCAMS AS THE FILING DEADLINE APPROACHES, CONGRESS WARNS

Taxpayers who file a paper return and mail it on Wednesday should request a physical “round-date stamp” to ensure it’s postmarked in time. (Michael Bocchieri/Getty Images)

Greene-Lewis said that taxpayers who plan to mail their return should keep in mind that the U.S. Postal Service changed how it postmarks mail. 

Starting in late December, USPS changed its rules to postmark parcels when processed at a facility, rather than when they’re dropped off at a post office, which can delay the postmark by 24 hours or more in some cases. 

That means taxpayers who want to mail their return should either mail early, use certified mail or request a “round-date stamp” be applied manually when dropping it off at the retail counter.

IRS REFUND TRACKER EXPLAINED: WHAT YOU NEED TO KNOW BEFORE THIS YEAR’S TAX FILING DEADLINE

E-filing will allow taxpayers to have their returns processed more quickly, which means that any tax refund they are owed will hit their accounts via direct deposit sooner.

“The majority of people do get a refund, and we are seeing that refunds will be up this year,” Greene-Lewis said. “I would definitely try to make the deadline with all the deductions and credits available. Especially if you’re thinking you might owe, you may be able to get a refund.”

The IRS’ tax filing deadline is on April 15, just before midnight. (J. David Ake/Getty Images)

Taxpayers can request an extension to file their 2025 tax return through the IRS website and third-party tax preparation services, though they should be aware that if they owe the IRS money they will need to pay that amount or set up a payment plan by the deadline.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

“One thing to remember is that it is an extension to file, and not an extension to pay. So you do need to try to pay what you owe by the deadline, even if you’re filing an extension,” Greene-Lewis added.

This article was written by

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The major Tyneside employer put its former offices the Old Post Office up for sale last year for £3.95m

Major Newcastle employer NBS has moved to new offices amid moves to create a more sustainable work space for its colleagues.

The construction consultancy – part of Hubexo – was based in the Old Post Office for 25 years, after the firm carried out a £5.8m conversion of the property. The work, designed by Newcastle architecture firm JDDK and carried out by contractor Surgo, won the Newcastle Lord Mayor’s Design Award for refurbishment and a regional prize in the British Council for Offices Awards.

However, last year NBS put the historic building with its five floors of office space on the market, as it began its move to a new base. The building, marketed by Savills, was put up for sale with a £3.95m price tag and is currently under offer.

Now NBS has relocated its Newcastle headquarters to 1 Trinity Gardens on Newcastle Quayside, in a move it says will save around 60 tonnes of carbon annually. Bosses said the relocation embodies Hubexo’s vision to make the built world more sustainable, whilst helping employees work more efficiently by providing a modern space that supports collaboration.

The office will house over 250 employees in Newcastle across product and technology, technical content and technical delivery, corporate services, finance and IT, sales, marketing and customer service teams, supporting global operations across the UK, Nordics, Australia, US and Canada.

The move also maintains NBS’s 50-year commitment to Newcastle, while also strengthening its ability to attract future talent in the North East, with a modern, flexible workspace reflecting the company’s ambitions.

NBS will source 100% renewable electricity for the new energy-efficient building, which has views over the River Tyne and modern amenities, including an on-site gym.

Jo Keit, president of UK and Ireland, Hubexo, said: “One of our core missions is to help the industry build sustainably, and our move to a greener, more energy-efficient Newcastle home will hopefully encourage others in the industry to make similar carbon-reducing commitments. Investing in our hubs is about investing in our people today, but also the people we want to attract tomorrow.

“These spaces are designed to support connection, collaboration and the culture we’re building together, and we’re delighted to see colleagues enjoying the new facility.”

Lee Jones, head of sustainability, Hubexo, added: “After more than a quarter of a century at the historic Old Post Office, we’re making a move that aligns with our sustainability commitments. The building’s gas heating system produced approximately 80 tonnes of CO₂ annually, incompatible with our net zero by 2045 ambition.

“As a platform supporting the construction industry’s digital transformation and sustainability goals, we want to lead by example.”

Meanwhile, Newcastle-based financial services and technology organisation, True Potential has officially opened Gateway House, a new office building that expands its headquarters.

Gateway House sits alongside True Potential’s existing Newburn House headquarters, providing additional purpose-built space to support its future growth ambitions.

Colleagues gathered to celebrate the opening, with CEO Gerry Mallon marking the occasion with a ribbon cutting at the building’s main entrance.

The event brought together teams from across the business who played a key role in delivering the project,

Mr Mallon said: “Gateway House represents an important step forward for us. Newcastle has always been at the heart of our story, and this expansion is a reflection of how far we have come as one of the UK’s leading wealth managers, the momentum we’re building as an organisation and our commitment to investing in our people, our future and our region.

“This has been a true team effort, and I want to thank everyone who has contributed to bringing this to life. The result is an office we’re immensely proud of – a fantastic state-of-the-art space that fits how we work today and supports our growth plans for the future.”

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