FTSE 100 Live: Ofwat £11m fine; Unemployment at four-year high

Good morning and welcome back to the Morning Wire liveblog.

We received another gloomy snapshot of the economy ahead of the ever-important Bank of England rate decision on Thursday.

New unemployment data showed another blow for the Labour government, which has denied that its policies have had an on the ailing jobs market.

The UK unemployment rate for people aged 16 years and over was estimated at 5.1 per cent in August to October 2025, according to the Office for National Statistics. This marks an uptick from the last quarter and rise from estimates just 12 months ago.

Employers in various business surveys have sounded off on the Chancellor’s £25bn hike to national insurance contributions (NICs), stating it cooled hiring levels and forced companies to cut payroll costs by making more staff redundant. 

Another piece of data ahead of Thursday will be Wednesday’s inflation data.

Inflation is expected to remain stubbornly high, which will pile greater scrutiny onto the upcoming interest rates decision. 

Price growth is set to remain at 3.5 per cent in the year to November, a slight fall from the month before, according to consensus established by Trading Economics.

Still, traders are pricing in a 25 basis point cut, with Governor Andrew Bailey expected to make the final call in a close debate between doves and hawks. 

In the last meeting, Bailey said he would wait for more economics data to be published before making a judgement on whether to cut interest rates, adding to the significance of Wednesday’s inflation data release. 

Here’s a few of our top stories from yesterday: 

• Budget knocks confidence to two-year low amid ‘deteriorating conditions’
• High earners see purchasing powers eroded after Budget measures  
• Inflation to remain sticky before interest rates call
• Hikma: FTSE 100 giant’s boss replaced by former chief after share price woes
• Motor finance lenders brace for legal battles amid redress spat