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Economics

  • Burnham won’t be bold enough to make devolution shift the dial on growth

    July 28, 2026

    Within a year of Cornwall abolishing the 45p additional rate of income tax and reducing corporation tax to 15 per cent, hundreds of entrepreneurs and businesses, including dozens of major financial and professional services firms, had relocated to the county. The influx of private sector dynamism delivered an astonishing economic boost to a region that [...]

  • ‘Moron premium’ – Westminster turmoil has ‘cost taxpayers £35bn’ since 2022

    July 28, 2026

    Secretive plotters and vengeful strategists in Westminster have cost taxpayers around £35bn since 2020, new research by one of the world’s top insurance companies has found.  In a study into the costs of political fragility facing European governments, researchers at Allianz Trade found that the UK government continued to pay a “distinct political premium” due [...]

  • Burnham and Healey face investor fury over summer of tax speculation

    July 27, 2026

    Andy Burnham and John Healey are contending with a growing backlash from investors after another summer of tax speculation looks set to leave financial managers on edge.  The chief executive of one of the UK’s biggest investment platforms, AJ Bell, urged Chancellor Healey to take a more emphatic approach on ruling out tax hikes across [...]

  • Exclusive: Jobs lost across Labour’s ‘growth potential’ sectors in blow to Burnham

    July 27, 2026

    In a blow to the government’s plans to boost employment, eight sectors previously identified as having high growth potential in Labour’s industrial strategy have suffered job losses, according to a report seen by City AM. The so-called ‘IS-8’ sectors, which include life sciences, financial services and defence, were singled out by the UK government last [...]

  • Scotland’s tax hike may have backfired as receipt falls

    July 26, 2026

    The Scottish government’s decision to raise the top rate of income tax may have backfired, according to analysis by the lawyer Dan Neidle.  Neidle’s research on tax data suggested that a decision to increase the top income tax rate to 48 per cent led to lower receipts.  HMRC data from 2024-25 suggested that the Scottish [...]

  • Bank of England to hold interest rates as oil price surge threatens UK economy

    July 26, 2026

    The Bank of England is expected to hold interest rates in a split vote on Thursday yet a surge in oil prices could complicate the crucial decision.  The Bank’s Monetary Policy Committee is widely expected to leave interest rates unchanged at 3.75 per cent.  Analysts believe that two members, Huw Pill and Megan Greene, could [...]

  • As it happened: Stocks jump as oil drops below $100; Trump in tariff blitz

    July 24, 2026

    Welcome back to the City AM FTSE 100 liveblog. Stocks jumped on Friday after oil eased back after reaching two-month highs on Thursday. The benchmark price of Brent crude oil slipped 4.1 per cent on Friday to $96.63 per barrel. Prices had surged to $100 following attacks by the Houthis, an Iran-backed militia based in Yemen, on [...]

  • Healey: Squeezed businesses also need ‘breathing space’

    July 23, 2026

    Chancellor John Healey has said he is “just as concerned” by costs facing businesses as those facing households, adding that bosses also required “breathing space” to manage burdens from energy, labour and supply chains.  Echoing Andy Burnham’s pledge to provide “breathing space” on the cost of living, Healey said he would aim to ease cost [...]

  • ‘Businesses are not cash machines’ – Badenoch calls on Burnham to rule out tax rises

    July 23, 2026

    Kemi Badenoch has called on Andy Burnham to rule out tax rises as the new Prime Minister has made a series of small unfunded promises.  The Tory leader said Burnham seemed “like a nice guy” and had a “sense of humour” yet she ridiculed the Prime Minister’s early flurry of policies.  In her speech overlooking [...]

  • ‘Door is open’ to interest rate hike as inflation fears return

    July 23, 2026

    An interest rate hike by the Bank of England this year is back on the cards as fears of continued oil and gas trade disruption across the Strait of Hormuz could push inflation higher, according to City economists.  A spike in oil prices to levels seen during the Iran war has dampened the mood across [...]

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