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Economics

  • 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 [...]

  • Will Burnham take the pressure off business? Don’t bank on it

    July 23, 2026

    Andy Burnham’s big ambitions come with a big price tag. Our analysis shows a £22bn black hole of unfunded commitments, including the costs of honouring decisions announced in the dying days of Keir Starmer’s government, such as NHS pay rises and the Defence Investment Plan. If you add in the new PM’s other great ideas, [...]

  • Nearly 1m people to pay higher tax ‘by stealth’

    July 22, 2026

    Nearly one million people are being dragged into higher tax bands as the government’s “stealth” freezes take effect, according to new analysis.  Data crunched by the Taxpayers’ Alliance has shown that fiscal drag – where freezes on tax bands mean workers are forced to pay more into HMRC as wages grow – will impact 1m [...]

  • Lucy Rigby back as City minister

    July 22, 2026

    Lucy Rigby has been demoted to City minister after a stint as the chief secretary to the Treasury. Rigby, who previously served in the role under Keir Starmer, was moved from her cabinet role by Burnham and will now return to the dual brief of economic secretary to the Treasury and City minister.  The former [...]

  • ‘False dawn’: June inflation falls to 2.6 per cent but analysts say rises ahead

    July 22, 2026

    Inflation remained stuck above the Bank of England’s target rate despite government promises to tackle the cost of living.  The Office for National Statistics said consumer price index (CPI) inflation was 2.6 per cent in the year to June. Analysts predicted the price growth reading to be 2.7 per cent, lower than the 2.8 per [...]

  • As it happened: Stocks rise but oil tops $95; inflation eases

    July 22, 2026

    Welcome back to the City AM FTSE 100 liveblog. It’s Wednesday and new Chancellor John Healey secured an early boost after the Office for National Statistics (ONS) revealed that inflation slowed in June. Headline CPI inflation dipped from 2.8 per cent in May to 2.6 per cent in June. Grant Fitzner, chief economist at the [...]

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