Tag: UK

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UK inflation drops to 3%, rate cut hopes rise

In a welcome break for millions of households, inflation in the United Kingdom has fallen to 3% in January, its lowest level in almost a year. The latest data from the Office for National Statistics shows that the sharp rise in everyday expenses is finally slowing, helped by cheaper fuel, lower airfares after the festive season and a gentler increase in food prices.

For families who have spent the past few years carefully balancing budgets, the change is more than just a number. Lower petrol prices mean less strain on commuting costs, while a slower rise in grocery bills offers some breathing space at the checkout. The easing of transport and food costs has been the biggest contributor to the overall decline in inflation.

The development has also sparked fresh optimism in financial markets. With price pressures cooling, expectations are growing that the Bank of England could begin cutting interest rates in the coming months. A reduction would be significant for homeowners facing high mortgage payments and for businesses struggling with expensive borrowing.

Yet, the picture is not entirely worry-free. Some underlying costs, especially in the services sector, are still rising faster than the central bank would like. This means policymakers are likely to move carefully, ensuring inflation continues to fall towards the 2% target before taking decisive action.

Economists believe inflation could edge closer to that goal by spring if global energy prices remain stable and wage growth cools. At the same time, signs of a softer job market are increasing the pressure on the central bank to support economic growth.

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1 Minute-Read

Indian in UK earns ₹18,000 an hour training AI models

Utkarsh Amitabh, a 34-year-old Indian entrepreneur in the UK, earns around ₹18,000 per hour training AI models for data-labeling startup micro1.

Starting in January 2025, he balances this work with family life and other professional commitments. Motivated by curiosity rather than money, he focuses on testing AI against complex business scenarios and refining prompts to enhance accuracy.

With prior experience at Microsoft and academic research on AI, Amitabh finds the role intellectually stimulating and complementary to his career, highlighting the growing demand for AI expertise worldwide.

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Leaders

Lakshmi Mittal leaves UK as tax fears rise

Steel tycoon Lakshmi Mittal, one of Britain’s richest residents for decades, has quietly begun moving his financial base out of the United Kingdom, a shift that reflects growing anxiety among the country’s wealthiest families as the Labour government prepares a major tax overhaul.

According to people familiar with his plans, Mittal is relocating his tax residency to Switzerland and is expected to spend more time in Dubai, a city that has increasingly become a haven for global billionaires. While the UK has long been his primary home, the changing tax climate appears to have accelerated his decision to look elsewhere.

The Labour government’s proposal to tighten tax rules for the super-rich,  including a potential exit tax and stricter treatment of global assets has unsettled several high-net-worth individuals. For many, the biggest worry is not the immediate wealth tax but the broader reach of inheritance tax, which can apply to worldwide assets if an individual is deemed UK-domiciled.

For families with complex international holdings, this has raised difficult questions about how much control the government may eventually have over future wealth transfers. Advisors say the Mittals, like many other affluent families, have been assessing the long-term implications of these changes for years, but the new political climate appears to have tipped the scales.

Mittal’s departure is especially symbolic. He has been more than just a wealthy resident,  he built ArcelorMittal, the world’s largest steel company, while living in London, and once owned some of the city’s most expensive homes. His long association with the UK made him a fixture in business circles, and he has even been a donor to the Labour Party in the past.

His exit now raises broader questions: Will others follow? Can the UK maintain its appeal for global entrepreneurs if tax rules become less favourable? Economists warn that a high-profile billionaire leaving the country could send the wrong signal at a time when Britain is trying to attract investment and rebuild post-pandemic growth.

For Mittal, however, the decision appears practical rather than political. Switzerland and Dubai both offer predictable, inheritance-tax-free environments, a financial stability that contrasts sharply with the uncertainty now defining Britain’s tax landscape.

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