Uk Economy

PM Keir Starmer plans reform of UK state in bid to counter criticism

Starmer's reset moment, including six 'milestones' designed to be tools to measure the government's progress, instead triggered more disquiet and confusion about his strategy

UK transport minister Louise Haigh quits in new blow to PM Starmer

In her resignation letter shared by Starmer's office early on Friday, Haigh said she was standing down as the issue 'will inevitably be a distraction from delivering on the work of this government'

British employers warn tax rise will hit investment, jobs, salary

"The rise in National Insurance and the stark lowering of the threshold caught us all off guard," CBI Chief Executive Rain Newton-Smith said as the organisation met for its annual conference

UK retail sales plunged more than expected before new govt's budget: ONS

A monthly rise in sales in September was also revised down to 0.1 per cent from a previous estimate of a 0.3 per cent gain

UK inflation rises by 2.3% in October, again more than BOE's expectation

The increase was the biggest month-to-month rise in the annual CPI rate since October 2022

UK Treasury chief Reeves unveils budget with 40 billion pounds in tax hikes

British Treasury chief Rachel Reeves is announcing 40 billion pounds in tax hikes in her first budget, saying she will use the money to invest, invest, invest and get the economy growing. Reeves is delivering the first budget from the UK's Labour Party government since it took power in July. She says the tax increases are needed because of the economic black hole left by the previous Conservative government. She told lawmakers, I am restoring stability to our public finances and rebuilding our public services. The centre-left party was elected July 4 after promising to banish years of turmoil and scandal under Conservative governments, get Britain's economy growing and restore frayed public services.

British inflation sends pound below $1.30, dollar firm on Fed outlook

The pound dropped to as low as $1.2984, dipping under the $1.30 level for the first time since Aug. 20, after data showing the rate of annual consumer price inflation dropped to 1.7 per cent in Sep

UK pay grows slowest in two years as BoE considers when to cut rates again

BoE cut borrowing costs in August but kept them on hold at its September meeting, saying it wanted to see further signs that inflation pressures were abating

UK property market strengthens, pressure on renters intensifies: RICS

Tarrant Parsons, RICS' head of market analytics, said the reduction in borrowing costs in August had helped to recover buyer demand

UK PM Starmer to meet sceptical investors in attempts to woo them

Years of Brexit-linked political chaos may have ended with his Labour Party's big election win, but the near-collapse of utility Thames Water has unsettled investors

UK borrows more than expected in July, underlining challenge for FM Reeves

The figures did not include recent pay deals struck between the new Labour government, elected last month in a landslide victory, and public sector workers including junior doctors

UK economy records strong growth in Q2 but likely to see slowdown ahead

Zero growth in June as wet weather hit retail sales

UK inflation rises 2.2%, remains slightly less than expected in July

When the BoE cut interest rates from a 16-year high of 5.25 per cent at the start of this month, it said May and June's 2 per cent inflation readings probably marked a low point for inflation

UK should double public investment to boost long-run growth: Think tank

NIESR forecasts Britain's economy will only grow by 1.1 per cent this year and does not expect annual growth to exceed 1.3 per cent in between now and 2029

London's FTSE 100 falls after US recession fears spark global sell-off

Friday's data showed a sharp slowdown in US job growth, raising fears of deterioration in American labour market and potential recession, prompting bets for a half-point interest rate cut in September

Nation 'broke & broken', says new UK govt as it plans to repair economy

Britain's new left-leaning government said Sunday that the nation is broke and broken, blaming the situation on its predecessors ahead of a major speech on the state of the public finances that is widely expected to lay the groundwork for higher taxes. In a sweeping assessment three weeks after taking power, Prime Minister Keir Starmer's office professed shock at the situation they inherited after 14 years of Conservative Party rule, while releasing a department-by-department analysis of the perceived failures of the previous government. The critique comes a day before Treasury chief Rachel Reeves is expected to outline a 20-billion-pound ($26 billion) shortfall in public finances during a speech to the House of Commons. We will not shy away from being honest with the public about the reality of what we have inherited," Pat McFadden, a senior member of the new Cabinet, said in a statement. We are calling time on the false promises that British people have had to put up with and we .

Here's how Taylor Swift's 'Eras Tour' is boosting the British economy

Singer Taylor Swift's concerts witnessed a lightning-fast sell-out, with ticket sales soaring within minutes of their release

Ex-Fed chair finds 'shortcomings' in Bank of England's economic forecasting

A review of the Bank of England's economic forecasting that was published on Friday and undertaken by Ben Bernanke, the former chair of the US Federal Reserve, has found significant shortcomings that should be addressed to better inform future interest rate decisions. Following widespread criticism about the Bank of England's forecasts, Bernanke was tasked last year to review the forecasting models. Though noting that all central banks have had problems over the past few years as a result of a series of economic shocks, notably the coronavirus pandemic and the cost-of-living crisis heightened by Russia's invasion of Ukraine, Bernanke said the Bank of England's issues were made worse by out-of-date software that had not been properly maintained. The review said that insufficient resources have been devoted to ensuring that the software and models underlying the forecast are adequately maintained". Bernanke, who led the Fed between 2006 and 2014, a period that included the global ...

British businesses keep up recovery but prices still a worry, shows PMI

Closely watched by the BoE ahead of its 1200 GMT interest rate decision, the S&P Global Composite Purchasing Managers' Index (PMI) inched down to 52.9 in March from 53.0 in February

UK economy puts recession behind it but price pressures rise: PMI survey

That is likely to be a relief for Prime Minister Rishi Sunak who has had to endure taunts of "Rishi's recession" from the opposition Labour Party which is riding high in opinion polls