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Economics

  • Construction sector hit by waning activity ahead of Budget

    October 6, 2025

    Business activity expectations in the construction industry have fallen to the lowest since the end of 2022 as companies remained glum on future outlook ahead of the Autumn Budget. The latest Purchasing Managers Index (PMI) from S&P Global showed construction output showed the industry hit its highest level for three months at 46.2 – though [...]

  • Economists ask Labour to prioritise planning reform and cut tax to boost growth

    October 6, 2025

    A survey of economists and policy experts has put pressure on Labour to “spend political capital” on planning reform to encourage more home building and on reforming the welfare system, reflecting the urgency of the government’s mission to grow the economy.  A centre-left think tank focused on growth policy, the Centre for British Progress, has [...]

  • Rachel Reeves mulls bank tax amid scramble to fill fiscal hole

    October 6, 2025

    Rachel Reeves is reported to be weighing up a tax on Britain’s banking giants as the Treasury looks to strum up cash in the forthcoming Autumn Budget. The Chancellor is expected to be staring down a fiscal blackhole of over £20bn come November 26 and banks have been viewed as an easy – and politically [...]

  • Tories commit to £47bn savings package to ‘restore public finances’

    October 6, 2025

    The Tories have committed to making £47bn in savings across the welfare state and Whitehall to “ensure the country lives within our means”, in a radical pledge that aims to restore the beleaguered party’s reputation for fiscal responsibility. In a speech to Tory party members in Manchester on Monday, Shadow Chancellor Mel Stride will claim [...]

  • Capital gains tax raid should have ‘health warning’, Labour warned

    October 6, 2025

    Labour risks stunting growth and discouraging investment if it pursues further capital gains hikes, tax advisers have warned, as reforms proposed by top think tanks were pushed back on by industry figures.  Rachel Reeves and Keir Starmer have talked up the prospects of attracting investment in the UK and making the wider tax system fairer [...]

  • Rachel Reeves mulls hiring ‘outsider’ for banking watchdog role

    October 4, 2025

    Chancellor Rachel Reeves is looking to hire a City heavyweight to succeed Sam Woods as the chief executive of the main banking watchdog once his term ends in the middle of next year, it has been reported.  Sam Woods’ term as chief executive of the Prudential Regulation Authority (PRA), the watchdog which is part of [...]

  • Andrew Bailey: Regulation is not hampering growth

    October 3, 2025

    Bank of England governor Andrew Bailey has warned of the dangers associated with paring back financial regulation, in a speech in which he also denied that the abundance of red tape foisted on the financial sector after the Great Financial Crash had impeded economic activity. Addressing the Klass Knot Farewell Symposium, Bailey, who was recently [...]

  • ‘Subdued’ services sector suffers steep drop as tax hikes bite

    October 3, 2025

    Business activity expansion fell to a five-month low after a “subdued” services sector experienced a dull end to the third quarter. S&P’s UK Services Purchasing Managers Index Business Activity tumbled to 50.8 in September, falling steeply from the 16-month high of 54.2 secured in August. “This summer’s acceleration in output growth is now looking like [...]

  • OBR hands Rachel Reeves first damning pre-Budget report on UK economy 

    October 3, 2025

    The Office for Budget Responsibility (OBR) has handed Chancellor Rachel Reeves its first evaluation of the state of the UK economy and crippled public finances, setting policy discussions about likely £30bn tax rises and possible savings in motion.  The OBR’s Budget Responsibility Committee, which consists of the economists Richard Hughes, David Miles and Tom Josephs, [...]

  • Has the wind shifted on Net Zero?

    October 2, 2025

    Once upon a time the promise of Net Zero enjoyed such universal support that a Tory government signed the UK’s Net Zero pledge into law. Today, the Tories say they’d scrap it – while alarm bells are ringing as the costs of the policy become clearer. In June 2019, Prime Minister Theresa May passed a [...]

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