UK money news stories - 20 August 2025

Reeves considers replacing stamp duty with new property tax

Could Stamp Duty Land Tax be about to get an overhaul? According to the Guardian, Treasury officials are considering swapping out the tax with something new that could see homeowners charged when they sell their property for over £500,000.

UK Inflation increases to 3.8%

The latest figures reveal that inflation has gone up by more than expected as a result of ongoing food price hikes and increases in transport and hotel prices. But what else is going on with inflation and what does this mean for your savings?

Warm Home Discount expansion will push energy prices higher in October, says leading forecaster 

Industry experts predict the energy price cap will increase by £17 from October, as a result of the extra funding required to broaden the Warm Home Discount scheme. Higher energy costs combined with greater usage as winter approaches means that households should start preparing for now.

Average mortgage rates below 5% for first time since Truss budget 

The average 2-year mortgage rate has dropped to 4.99% - the first time it’s been below 5% since the disastrous mini-budget in September 2022. Experts say it’s a “symbolic turning point” and shows that lenders are starting to compete more aggressively. 

Iceland offering £1 reward scheme for customers who report a shoplifter

In a, perhaps controversial, bid to combat shoplifters, the high street supermarket is incentivising shoppers to sound the alarm when they see theft taking place. If they do end up helping catch a thief, they’ll get a £1 boost to their Bonus Card. 

Final £1 coins featuring late Queen enter circulation 

In what’s been described as a “pivotal moment in British coinage history”, the last batch of over 23 million £1 coins with the face of the late Queen Elizabeth II is going into circulation. In addition, we’re also be seeing a further 7.5 million new King Charles coins.