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UK economy

  • Rachel Reeves ducks ‘speculation’ despite tax pledge confusion 

    July 14, 2025

    Chancellor Rachel Reeves ducked questions about her Autumn Budget plans despite growing confusion over tax pledges and definitions of “working people”.  In an interview on Monday, the chancellor reiterated the government’s pledge not to raise the rates of income tax, national insurance or VAT.  But Reeves declined to comment on whether she would introduce a [...]

  • Buy UK: City stocks set for boost from Trump’s trade war with EU

    July 14, 2025

    As the chaos around President Donald Trump’s erratic tariff agenda shows no sign of abating, brokers have thrown their weight behind UK stocks. Just this weekend, Trump threatened escalations with Mexico and the EU before slapping a 30 per cent levy on the 27-state bloc from August 1. But among the geopolitical noise, the UK [...]

  • High inflation ‘not sufficient’ to scupper Bank of England interest rate cuts

    July 14, 2025

    June inflation data showing a 3.4 per cent year-on-year rise in prices would not put Bank of England officials off voting for an interest rate cut in August, leading economists have said.  A Bloomberg poll of City analysts has predicted that inflation will remain above the Bank’s two per cent target as price growth is [...]

  • Mansion House: UK giants to agree to pick high-return pension schemes

    July 14, 2025

    UK giants Tesco and NatWest Group are set to answer Canada Lord Mayor’s calls to focus on driving returns rather than getting bogged down by fee costs when picking pension schemes for employees.  Ahead of the Mansion House speech on Tuesday, the Lord Mayor criticsed UK companies for choosing providers that charged [...]

  • Treasury minister Darren Jones struggles to define ‘modest income’

    July 14, 2025

    Chief Secretary to the Treasury Darren Jones says Labour’s “working people” tax pledge refers to “anyone that gets a payslip, basically”.  Rachel Reeves’ deputy was asked across multiple interviews on Monday morning to clarify who exactly would be shielded from tax hikes, and whether Labour’s pre-election promises not to raise levies on “working people” will [...]

  • Mansion House speech: Rachel Reeves to ‘rip up’ red tape in financial services

    July 14, 2025

    Rachel Reeves is to pledge a bonfire of financial services regulation as she seeks to rekindle her relationship with the City. The Chancellor will vow to cut “reams of financial red tape” when she gives her annual Mansion House speech on Tuesday evening, according to people familiar with the matter. That is set to include [...]

  • Andrew Bailey calls for lower interest rates if job market stalls

    July 14, 2025

    The Governor of the Bank of England has called for more dramatic cuts to interest rates if the jobs market sees a substantial slowdown.  In an interview with The Times, Andrew Bailey insisted: “I really do believe the path is downward” for rates.  He said that businesses are “adjusting employment” following Rachel Reeves’ tax hikes [...]

  • Rachel Reeves urged to make ‘bold choices’ at Mansion House speech as growth stalls

    July 14, 2025

    Financial services are looking to Rachel Reeves’ Mansion House speech and the launch of her new growth strategy for the sector as a pivotal turning point. The industry has been courted by the Chancellor in hopes of feeding ideas into the Treasury’s inaugural Financial Services Growth and Competitiveness Strategy.  Now, firms look to be banking [...]

  • HMRC under pressure as underpaid tax by US firms surges

    July 14, 2025

    The UK’s tax collector is under pressure amid a surge in underpaid tax by US companies. HMRC suspects as much as £8.8bn in tax was underpaid by US companies in the previous tax year, a jump of 57 per cent compared to the previous year, according to figures obtained by accounting firm UHY Hacker Young. [...]

  • London hiring plunges as Rachel Reeves’ tax grab weighs

    July 14, 2025

    London hiring has suffered a steep drop as rising costs weigh on employers following Rachel Reeves’ tax grab. Permanent staff places in the capital – hires with no fixed end date – fell at the sharpest rate in 22 months in June. Meanwhile, temporary bills, which track the total income recruitment agencies earn from placing [...]

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