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Economics

  • Reeves’ tax hikes ‘won’t bring inflation down anytime soon’, Smeg warns

    September 18, 2025

    The tax hikes introduced by Chancellor Rachel Reeves in last year’s Autumn Budget will mean it is “sometime” before inflation gets down to the government’s two per cent target, the UK arm of kitchenware brand Smeg has warned. The Abingdon-based division said the increase to employers’ National Insurance contributions, which came into effect in April, [...]

  • Was this actually Starmer’s best week?

    September 18, 2025

    £150bn of investment has been pledged by US giants, itching to pour their money into the UK – including more than £30bn to turbocharge our artificial intelligence base. The choreography was masterful, and I don’t just mean the military and Royal welcome dolled out to the Trumps and their entourage, although it was pretty spectacular.  [...]

  • Bank of England holds interest rates and slows down QT to £70bn

    September 18, 2025

    The Bank of England’s Monetary Policy Committee (MPC) voted 7-2 to hold interest rates amid sticky inflation, with a decision to slow down its quantitative tightening (QT) process also made in light of febrile markets raising borrowing costs.  MPC members made a dual decision at its September meeting on interest rates and the sale of [...]

  • Reeves considering ‘staggered stamp duty payments’ to boost housing market

    September 18, 2025

    A proposal to spread stamp duty payments across several years, in an effort to drive growth and boost the housing market, is among changes to property tax being considered by the Treasury ahead of Budget discussions with the Office for Budget Responsibility (OBR).  Suggested reforms to stamp duty would allow house buyers to pay the [...]

  • What the US tech investments tell us about the UK’s public markets

    September 18, 2025

    There was some debate in the City AM newsroom on Tuesday over which story should grace the front page yesterday. On the one hand, news of £30bn worth of tech investment offered the kind of optimism we’re always looking out for, but on the other hand news came that global fund managers were pulling out [...]

  • Labour warned Employment Rights Bill will damage jobs market

    September 17, 2025

    Labour’s Employment Rights Bill must be changed immediately to prevent the UK’s jobs market crisis from worsening, top business groups have warned Peter Kyle in a last-ditch attempt to secure growth-focused changes.  The government’s workers’ rights reforms have faced strong opposition from thousands of businesses across the UK, with bodies representing their interests claiming changes [...]

  • Hawks vs Doves: Bank of England’s MPC will hold interest rates – but expect dissent

    September 17, 2025

    In the last year, the Bank of England has cut interest rates five times on the expectation that price rises were easing in the UK.  When inflation hit a 41-year high of 11.1 per cent in October 2022, policymakers at the Bank warned that its fight to battle inflation was “sacrosanct”.  The relentless spiralling of [...]

  • Inflation: Brits ‘paying the price for years of poor economic management’

    September 17, 2025

    Inflation hit 3.8 per cent in the year to August, according to official data, sending a warning to Bank of England officials ahead of a crucial interest rate vote on Thursday.  The previous reading for inflation in July was 3.8 per cent, with the August figure likely to confirm Bank of England rate-setters will vote [...]

  • ‘Exhausting’ house buying process damaging the economy, says Santander

    September 17, 2025

    The UK’s outdated house buying process and rate of failed transactions are costing the economy at least £1.5bn a year, one of Britain’s biggest high street banks has warned. According to a report from Santander UK, over half a million failed housing transactions are costing consumers £560m directly, with some costs, including the costs of [...]

  • OBR ‘downgrades productivity’ in major pre-Budget blow to Rachel Reeves

    September 16, 2025

    The Office for Budget Responsibility (OBR) has reportedly told Chancellor Rachel Reeves that it will downgrade productivity forecasts for the UK economy, blowing a hole in the public finances and making tax hikes all but guaranteed at this year’s November Budget.  In another setback for the Labour government, the OBR has informed the Treasury that [...]

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