Welcome to our sixth newsletter for 2025 aiming to bring you the latest in financial news and updates. This month Porter Garland Chartered Accountants focus on the following topics.
First our lead story:
UK-INDIA TRADE DEAL CUTS TARIFFS: Britain and India have signed a long anticipated trade deal that is expected to boost the UK economy by £4.8bn a year by 2040. Finalised after more than three years of negotiations under multiple governments, this agreement is one of the most significant post-Brexit wins for British trade.
The deal focuses heavily on tariff reductions across a wide range of goods. India will cut tariffs on 90% of UK product lines, including whisky, gin, chocolate, biscuits, cosmetics, lamb, salmon, soft drinks, aircraft parts, medical devices and electrical machinery. Based on 2022
trade data, these reductions will save UK exporters £400m annually from day one.
Tariffs on British whisky and gin, currently at 150%, will drop to 75% initially, and fall further to 40% by the 10th year. For British-made cars, tariffs will fall from around 110% to 10%, though quotas will apply to exports in both directions. In return, the UK will lower tariffs on Indian clothing, footwear and food products, offering consumers greater choices and potentially lower prices.
The deal also includes a reciprocal exemption from national insurance contributions for workers temporarily seconded between the two countries for up to three years. Though this has sparked controversy in the UK, it was a key demand from Delhi and a central sticking point in talks. India’s government has hailed the exemption as a “huge win” and a landmark achievement. Ministers say the deal will strengthen economic ties, open new markets and support industries.
And other stories:
HMRC STOPS PHONE SUPPORT FOR UTR NUMBERS: From 6 May 2025, HMRC is no longer confirming a taxpayer’s unique taxpayer reference (UTR) number over the phone. This change applies to individual taxpayers and agents calling on behalf of clients.
BANK OF ENGLAND CUTS INTEREST RATES BY 0.25% TO 4.25% AMID SLOW GROWTH: The Bank of England has cut interest rates, aiming to support the UK economy as uncertainty rises. It marks the fourth reduction since August 2024.
UK UNEMPLOYMENT HITS HIGHEST LEVEL SINCE 2021: Unemployment has risen to 4.5%, the highest level since summer 2021. The figure covers the first quarter of 2025 and marks a 0.2 percentage point increase from the previous quarter.
WANT TO TALK TO AN EXPERT? Call one of the team at Porter Garland Chartered Accountants for advice on any of your financial matters – accounting, taxation and bookkeeping services. Or to keep reading, click this link: Newsround-up – June25