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Economics

  • UK economy expected to rebound

    August 11, 2025

    The UK economy is expected to have returned to growth in June after two consecutive months of declines amid concerns about the impact President Donald Trump’s tariffs have had on the economy. Economists polled by Bloomberg expect the Office for National Statistics (ONS) to post UK growth of 0.2 per cent for June when the [...]

  • Starting pay growth at slowest pace since 2021

    August 11, 2025

    Pay for new hires rose at the slowest pace in over four years, fresh data has indicated, in signs redundancies and higher taxes are depressing wage growth.  The lack of demand among recruiters and the larger number of job seekers in the UK economy has led to starting salary inflation slowing down to its lowest [...]

  • Economy faces ‘midlife crisis’ as benefit claimants hit new high

    August 10, 2025

    The economy faces a “midlife crisis” after a fresh study revealed the number of jobless benefit claimants aged 50 or older has reached nearly two million for the first time. A new report from the Centre for Social Justice (CSJ) has shown the number of 50 to 64-year-olds who are out of work and claiming [...]

  • Interest rates likely to remain higher for longer

    August 8, 2025

    Markets are indicating interest rates are set to stay higher for longer than expected after the Bank of England’s “hawkish cut” and gloomy inflation and growth forecasts shocked City analysts. Prior to the Bank’s interest rate cuts, markets had all but priced in a further 25 basis point cut by the end of the year, [...]

  • Bank of England: Future of interest rate cuts now ‘more uncertain’  

    August 7, 2025

    The future of interest rate cuts is now “more uncertain” as the Bank of England suggested it was more worried about inflation ticking up higher than expected.  In its decision on Thursday, the Bank voted 5-4 for interest rates to be cut by 25 basis points to four per cent.  But the Bank now believes [...]

  • LIVE: Bank of England cuts interest rates to four per cent

    August 7, 2025

    The Bank of England has slashed interest rates to the lowest level in more than two years at four per cent. The decision to cut rates from 4.25 per cent comes after members were told to vote for a second time after facing a split decision. It follows the Bank’s chief economist, Huw Pill, telling [...]

  • Starmer refuses to rule out tax rises – and criticises forecasters

    August 6, 2025

    The Prime Minister has refused to comment on whether he will break Labour’s manifesto pledges on taxes at this year’s Autumn Budget as he slapped down independent forecasters’ claims the government faced a £50bn black hole.  The National Institute of Economic and Social Research (NIESR) claimed Rachel Reeves would miss her borrowing target by £41.2bn [...]

  • Trump hikes India tariffs to 50 per cent for fuelling Russian ‘war machine’

    August 6, 2025

    President Donald Trump has imposed an additional 25 per cent tariff on India after the country’s government imported Russian Federation Oil. In an executive order signed on Wednesday, the White House said it would slap Indian imports with the fresh levy taking their overall rate to 50 per cent. The President warned on Tuesday he [...]

  • Construction sector contracts at the fastest pace since 2020

    August 6, 2025

    Activity in the UK’s construction industry is contracting at the fastest rate since the coronavirus pandemic in 2020 as high costs and tax hikes bite. The sector is vital for the Labour government’s plans for a house building boom and improvements in infrastructure, with the private sector expected to help boost the UK’s economic growth. [...]

  • The Bank of England’s trouble-free decision to cut interest rates

    August 6, 2025

    The Bank of England has long suffered from the accusation of groupthink. Reforms have been mooted – and some have been implemented – but it has struggled to shake off the charge. Economists at the Cato Institute and the National Institute of Economic and Social Research (NIESR) have, for example, pointed the blame at Threadneedle [...]

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