The latest purchasing managers' index (PMI) data from the UK's manufacturing sector suggests that the country's economy stabilised in June, according to an IHS Markit survey.

The composite PMI reading came in at 47.6 in June, up from 30.0 in May and just 13.8 in April.

PMIs are an indicator of private sector activity and are given on a scale of 1 to 100. Because anything below 50 signals a decline, the figure indicates that the UK economy contracted once again in June, although the pace slowed significantly from previous months.

IHS Markit reported figures of 47.0 figure for the services sector and a 50.1 figure for the manufacturing sector with survey respondents noting that the easing of coronavirus restrictions had a favourable impact on activity.

Chris Williamson, Chief Business Economist at IHS Markit, said: 'June's PMI data add to signs that the economy looks likely return to growth in the third quarter, especially given the further planned easing of the lockdown from 4th July.

'June saw a record rise in the PMI for a second successive month, confirming that the economy is moving closer to stabilising after the worst of the immediate economic impact from the COVID-19 pandemic was felt back in April.

'Uncertainty over recovery prospects and job prospects also mean demand for many goods, especially non-essential big-ticket items, is likely to remain weak for many months, with Brexit uncertainty also continuing to cast a shadow over the economy.'

VAT claims submitted under the Overseas Refund Scheme will be subject to delays due to changes in HMRC's working practices during the COVID-19 pandemic, the tax authority has stated.

The delays relate to payments due to overseas businesses that are not established in the EU.

The affected claims are those within the prescribed year 1 July 2018 to 30 June 2019, submitted on or before 31 December 2019.

HMRC says the move to working from home, in line with government guidance on 23 March, has affected some of its operational processes.

As a result, while its objective is to process and refund overseas VAT claims within six months of the submission deadline of 31 December the changes mean the department is unable to meet this deadline for some of the 2018/19 claims.

HMRC now expects to pay valid 2018/19 claims by 30 September.

Further information on the delayed repayments can be found here.

The Institute of Directors (IoD) has called on the government to act to support jobs and investment once the coronavirus lockdown ends.

In a submission to the Treasury, the IoD has urged the government to act now in order to reduce the cost of employing people as the Coronavirus Job Retention Scheme (CJRS) comes to a close.

The IoD recommends increasing the Employment Allowance and raising the threshold for employers' national insurance contributions (NICs).

Within the submission, the Institute also proposed widening the scope of Research and Development (R&D) tax reliefs to support investment in technology and training.

Jonathan Geldart, Director General of the IoD, said: 'The government may want to hold back some ammunition until the autumn, but directors have to make hiring and investment plans ahead of time.

'Now is the moment for the Treasury to reduce the cost of employment so companies can retain staff. As the furlough scheme winds down, jobs are at risk, so it will be crucial to soften the blow.'

In a letter to Chancellor Rishi Sunak, the Federation of Small Businesses (FSB) has outlined a series of recommendations designed to support small businesses once the COVID-19 lockdown ends.

The Chancellor is expected to deliver an economic statement early next month.

The FSB stated that the majority of businesses will face 'significant costs' when they reopen. 86% of businesses polled by the FSB said they'll need to make changes to their premises to allow for social distancing measures. 60% said it will cost up to £1,000 to reopen in line with government guidance, whilst 28% believe it will cost more than £1,000.

Additionally, in order to protect livelihoods as the government's Coronavirus Job Retention Scheme (CJRS) comes to an end, the FSB recommends that the Chancellor consider reducing employers' national insurance contributions (NICs) or uprating the Employment Allowance.

The business group has also called for a full statutory sick pay (SSP) rebate for those who need to self-isolate over the coming weeks.

Commenting on the letter, Mike Cherry, National Chairman of the FSB, said: 'The fundamental question facing small businesses today is: can I open in a way that's both commercially viable and safe?

'Among those for whom the answer is yes, the majority will face additional costs as they adjust their operations. The government should step in with back to work vouchers so firms doing the right thing can recover this expenditure.'

The FSB's list of recommendations can be found here.

The Association of British Insurers (ABI) has called for an overhaul of the UK pensions tax relief system following the publication of research which suggested that basic rate taxpayers are missing out on vital tax relief.

The ABI's research showed that the lower paid and the young are missing out on pensions tax relief despite more saving for retirement. A Defined Contribution (DC) pension scheme provides retirement income that is based on the amount paid in and the investment growth of the money.

Individuals receive tax relief from the government when contributions to a DC pension scheme are made. The research found that, in 2018, DC contributions represented 17.5% of the total amount spent on tax relief. This was despite an increase in the number of people contributing to workplace pensions, which rose from 55% in 2012 to 87% in 2018.

The ABI revealed that basic rate taxpayers make up 83.4% of all taxpayers, but they only receive 26% of the pensions tax relief related to DC pension contributions.

It also highlighted that more young people are paying into their pension, but the tax system benefits older people.

Commenting on the issue, Yvonne Braun, Director of Long-term Savings and Protection at the ABI, said: 'Pensions tax relief plays a vital role in encouraging people to save, but also supporting the adequacy of that saving. However, the distribution of pensions tax relief under the current system exacerbates existing inequalities, particularly between men and women.'

Over £40 billion has now been borrowed through government-backed schemes designed to help businesses get through the coronavirus (COVID-19) crisis, according to the latest figures from the Treasury.

More than 304,000 businesses have now accessed support through either the Bounce Back Loan Scheme (BBLS), the Coronavirus Business Interruption Loan Scheme (CBILS) or the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Almost threequarters of the lending has been through the BBLS, which has now reached £28 billion. The BBLS allows small businesses adversely affected by the pandemic to apply for up to £50,000, with the government guaranteeing 100% of the advance.

Lenders have provided £10.5 billion to over 50,000 businesses through the CBILS, while loans of £2.1 billion have been approved to 315 mid-sized and large UK businesses through the CLBILS.

Commenting on the figures, Stephen Pegge, Managing Director of Commercial Finance at UK Finance, said: 'Three months on from the launch of the first support measure, the CBIL scheme has helped 50,000 UK businesses to get access to the finance they need.

'It's important to remember that any lending provided under government-backed schemes is a debt not a grant, and so firms should carefully consider their ability to repay before applying.'

A report published by think tank the Resolution Foundation has suggested that young people are most likely to lose their jobs as a result of the coronavirus (COVID-19) lockdown.

Many 18 to 24-year-olds are earning less than they did before the lockdown, according to the Resolution Foundation. Younger workers' pay could be affected for years and older workers could find themselves involuntarily retired, the report stated.

A quarter of young workers have been furloughed, the report found. 9% have lost their jobs – this represents the highest figure of all age groups analysed. Workers aged between 35 and 44 were least likely to have been furloughed or made redundant, the report revealed.

Figures from the government show that around eight million people have been furloughed as a result of the COVID-19 pandemic, at a cost of almost £11 billion.

The government has again been urged to consider an emergency VAT reduction in order to help businesses once the coronavirus (COVID-19) lockdown ends.

A new report published by think tank Policy Exchange has suggested that reducing the rate of VAT to 15% could help boost consumer spending in the short-term. The current standard rate of VAT is 20%.

The publication of Policy Exchange's report comes following rumours that Chancellor Rishi Sunak is reportedly considering reducing the standard rate of VAT to help tackle the economic fallout caused by the COVID-19 lockdown.

According to reports, the Chancellor is preparing to deliver a 'Summer Statement' in early July, in which he is likely to outline new initiatives on skills and apprenticeships, alongside measures to help boost the UK economy.

Experts have also recommended cutting employer national insurance contributions (NICs) and extending the business rates relief scheme in England and Wales.

According to an annual survey carried out by Fair Tax Mark, the UK public is using the coronavirus (COVID-19) lockdown to take 'decisive action' against tax avoidance practices.

79% of people polled would rather shop with a business that can prove it's paying its fair share of tax, according to the survey.

78% of individuals believe that all businesses should have to publicly disclose the amount of tax they pay in the UK. Additionally, 77% of people think the UK should take the lead and require multinational businesses to disclose how much income, profit and tax they pay in each country they do business.

'For many, lockdown has provided an opportunity to reflect more on societal values – whether it's supporting our vulnerable, shopping locally or gaining a greater understanding of how employers act at a time of crisis,' said Paul Monaghan, Chief Executive of Fair Tax Mark.

'The vast majority of people want to support and celebrate the businesses that reject the use of tax havens and tax avoidance.

'That's why during the coronavirus crisis we have been calling on the UK government to ensure that any bailouts are conditional on recipients committing to responsible tax conduct and transparency.'