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UK economy

  • US trade deal: Jonathan Reynolds questioned on Trump talks progress

    June 3, 2025

    Shadow business secretary Andrew Griffith has raised questions around the progress of the UK-US trade deal, saying that the agreement has “not been signed, published and presented in any form”.  In a letter posted on X, the former Treasury minister said that “no one has ever seen such a deal” and criticised Labour for a [...]

  • Deutsche Bank: £10bn of tax hikes coming in Autumn Budget

    June 3, 2025

    Chancellor Rachel Reeves is expected to raise taxes by at least £10bn in this year’s Autumn Budget as rising inflation and increased spending eat into the Treasury’s fiscal headroom. “With a tough Spending Review due in June, we expect fiscal news to worsen over the coming months,” said Deutsche Bank analysts in a research note. [...]

  • OECD: Rachel Reeves’ ‘insufficient’ fiscal headroom poses risk to UK economy

    June 3, 2025

    The OECD has warned Rachel Reeves’ wafer thin fiscal headroom poses a significant risk to the UK economy as it cut its growth outlook for Britain in 2025 and 2026. The economic organisation urged the Treasury to “step up” efforts to bolster its “very thin” fiscal headroom, expressing concern that it could cause “significant downside [...]

  • Pennon Group: FTSE 250 water firm swings to loss after parasite scandal

    June 3, 2025

    Pennon Group, the British utility firm which owns South West Water, swung to a loss in the latest financial year after struggles driven by the Brixham water supply scandal. The FTSE 250 company made a loss of £35.1m for the year, which the firm said was in line with management expectations. It marked a steep [...]

  • Starmer’s defence pledges will trigger a tax bombshell

    June 3, 2025

    Here’s a cracker of a pub quiz question for you: what links mega-rich non-doms, nuclear-powered submarines, congestion in Wigan and the Bank of England’s former chief economist? The answer, as so often appears to be the case, is tax. On the day that Keir Starmer unveiled a Strategic Defence Review that calls for nearly £70bn [...]

  • Monzo: The rockstar fintech setting the City abuzz

    June 3, 2025

    Monzo has dominated City chatter in recent months with its hotly anticipated IPO, and now the fintech unicorn’s latest financial results indicate the talk is only going to get louder. The UK fintech veteran broke another milestone in the last 12 months after topping £1bn in annual revenue. Behind the surge in takings was a [...]

  • Starmer’s defence spending will mean ‘chunky’ tax rises, warns IFS

    June 2, 2025

    Sir Keir Starmer’s plans to boost defence spending will require “chunky” tax rises, according to the chief of the Institute for Fiscal Studies (IFS). Paul Johnson told Times Radio: “…if we’re really going to spend another £10-15 billion a year on defence, whilst inevitably we’re going to spend more and more on health and pensions [...]

  • Majority of Labour MPs oppose Reeves’ fiscal rules

    June 2, 2025

    Two thirds of Labour MPs oppose Rachel Reeves’ fiscal rules, and twenty percent would prefer tax rises over spending cuts.  Polling by Survation, shared with The Times, showed that 64 per cent of Labour MPs said Reeves’ rules inhibit ministers’ abilities to meet their objectives, including: raising living standards, improving public services, and combatting climate [...]

  • Starmer refuses to commit 3 per cent defence spending despite ‘battle-ready’ claim

    June 2, 2025

    Keir Starmer has been criticised for failing to commit to increasing defence spending to 3 per cent of GDP.  The Prime Minister vowed to put in place the “largest sustained increase in defence spending since the Cold War,” with a 2.5 per cent share of GDP going to defence.  However, the PM maintained that hitting [...]

  • Reeves’ tax raids and tariff woes strain UK manufacturers 

    June 2, 2025

    British manufacturers continued to struggle in May, despite a surprise minor uptick, as tax hikes and tariffs weighed on firms. S&P Global’s latest PMI survey, which asks around 600 industrial companies about their performance, revealed manufacturers were still battling a tirade of challenges. The latest figure edged up to 46.4 in May, compared to 45.4 [...]

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