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Economics

  • ‘Encouraging’ signs for UK economy as business confidence rebounds

    February 28, 2025

    Business confidence rebounded rapidly in February, according to a new survey, with firms increasingly optimistic about the health of the economy.

  • Interest rates to fall to 3.5 per cent City firm predicts

    February 27, 2025

    Paul Dales, chief UK economist at the City consultancy, said it was "very unusual" for the Bank of England to cut interest rates when inflation is expected to rise further even further above target.

  • Week in Business: Will more defence spending mean higher taxes?

    February 27, 2025

    Cutting the international aid budget to boost defence spending – sounds like a fair exchange in a time of war and hazard – but there’s more to this announcement than meets the eye. The Prime Minister was deadly serious when he stood up in the Commons this week to declare that the country faces a [...]

  • Income tax will need to rise to fund defence push, Mervyn King says

    February 27, 2025

    Speaking on Sophy Ridge's show on Sky News, Mervyn King acknowledged the government was in a "very difficult position," but criticised it for a lack of ambition.

  • Tariffs unlikely to spark persistent inflation, Bank of England rate-setter says

    February 26, 2025

    Swati Dhingra, a rate-setter at the Bank of England, said Donald Trump’s tariffs would likely push down on domestic inflation as global exporters slashed prices to maintain market share. Dhingra warned that the UK was “particularly sensitive” to changes in imported costs due to its openness, but suggested that the danger of tariff-induced inflation was [...]

  • ‘Delicate time’ for US economy as growth fears build

    February 26, 2025

    The world's largest economy has been the standout global performer for the past couple of years, with growth far outstripping other advanced economies.

  • Keir Starmer’s defence pledge will prompt ‘tough choices’ on tax

    February 26, 2025

    The Prime Minister confirmed yesterday that defence spending will rise to 2.5 per cent of GDP by 2027, up from 2.3 per cent at the moment.

  • Businesses face ‘powder keg’ of costs as Budget tax hikes loom

    February 26, 2025

    The vast majority of businesses will be forced to change their plans as a result of the government’s tax raid, a new survey shows, which will result in higher prices for consumers and thousands of lost jobs. More than four out of five business leaders (82 per cent) said Labour’s national insurance hike will have [...]

  • Spring could prove to be an economic washout

    February 26, 2025

    A modest burst of warm weather towards the end of last week may have coaxed the snowdrops and bluebells into life but don’t go dusting off the BBQ, as the cold isn’t done with us yet. Meteorologically speaking, Spring kicks in on 1 March but forecasters say the first month of the new season is [...]

  • CBI boss warns Rachel Reeves’ farm tax will undermine growth push

    February 25, 2025

    Speaking at the National Farmers' Union's (NFU) conference, Newton-Smith said there was no sector more "foundational" to the UK economy than farming.

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