WEEKLY EDITION BY MARINA MOUKA

Welcome to your latest Accountancy Age’s Weekend Digest, your go-to source for the week’s top insights and updates tailored for accountants.

NEWS

Bank of England cuts interest rates to 4.25%

The Bank of England has cut interest rates to 4.25%, its fourth cut since August 2023 and the lowest level in nearly two years. The decision, split across the Monetary Policy Committee, reflects softening inflation pressures despite global trade uncertainty, particularly from US tariffs.

Businesses are expected to benefit from lower borrowing costs, although inflation may rise temporarily to 3.5% this year. The rate cut offers some relief to mortgage holders and could support growth, but policymakers are walking a fine line between stimulating the economy and avoiding renewed inflationary risks.

INSIGHTS

Why lease accounting now demands a smarter system

As FRS 102, IFRS 16 and ASC 842 reshape lease reporting, finance teams reliant on spreadsheets face growing risks. Manual systems are fragile, prone to errors, and lack audit trails—making them ill-suited to today’s compliance demands.

Modern lease accounting software offers audit-ready, scalable, and AI-enabled solutions that streamline lease management, improve collaboration, and ensure accuracy.

INSIGHTS

MTD named biggest challenge (and opportunity) for accountants in 2025

A new survey reveals that 81.7% of accountants view Making Tax Digital (MTD) as 2025’s biggest challenge—and 79.08% see it as the biggest opportunity.

With an April 2026 deadline for sole traders and landlords earning over £50,000, firms must shift from manual to digital tax processes. While MTD raises compliance demands and workload, it also enables real-time data, deeper client engagement, and new advisory revenue streams.

However, 1 in 3 accountants are still unprepared. Experts urge early adoption, internal process reviews, and team buy-in to maximise the potential of this transformation.