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Economics

  • Scottish Widows owner: Pension funds deal risks making UK like China 

    July 7, 2025

    Labour’s flagship deal with pension funds risks making the UK economy more like China, the boss of Lloyds Banking Group has warned after its subsidiary Scottish Widows chose not to sign up to the agreement.  Chancellor Rachel Reeves won the support of 17 pension funds which agreed to invest at least five per cent of [...]

  • Get ready for £30bn tax raid, City analysts warn

    July 5, 2025

    Top City economists have warned welfare U-turns and President Trump’s damage to growth prospects will lead to tax hikes worth £30bn this autumn.  Chancellor Rachel Reeves suggested last year’s £40bn tax raid on businesses, homeowners and investors was a “once in a parliament reset” while Keir Starmer has suggested the UK could not “tax [its] [...]

  • Economists urge fiscal discipline after ‘rollercoaster’ week for bond market

    July 4, 2025

    Economists have called on Chancellor Rachel Reeves to exercise fiscal discipline after a “rollercoaster” week in the bond market exposed the precarity of the government’s finances. Yields on 10-year gilts briefly rose more than 20 basis points, the highest intraday rise since the ill-fated Liz Truss minibudget in 2022, after Reeves appeared distraught in the [...]

  • How much tax do you pay above £100k? Britain’s highest earners in numbers

    July 4, 2025

    A growing number of Brits have seen their salaries hit £100k – but a growing number are also feeling underwhelmed after having crossed the threshold. What accounts for their disappointment? There were as many as 1.35m taxpayers earning over £100,000 in the UK during the 2022/23 tax year, an increase of around 16 per cent [...]

  • Government has ‘lost track’ of illegal migrants working in the UK, MPs warn

    July 4, 2025

    The UK government has lost track of the number of migrants who have overstayed visas and what happens to people who have had their sponsorship withdrawn, senior MPs have warned in a devastating blow to Labour’s bid to restore credibility with voters on migration.  Keir Starmer’s government pledged to restore control over UK borders and [...]

  • Rachel Reeves’ cash ISA plans would ‘choke mortgages’

    July 3, 2025

    Rachel Reeves’ plans to slash the tax-free cash ISA allowance “would be effectively choking mortgage availability” for those who need them the most, a building society’s CEO has said. Darlington Building Society was reacting to the news that the Chancellor is set to announce a lowering of the current £20,000 cap that savers are allowed [...]

  • Keir Starmer refuses to rule out £40bn tax raid 

    July 3, 2025

    Keir Starmer has refused to rule out that this year’s Autumn Budget will be softer than the tax raid seen last year, which targeted business and homeowners in raising £40bn extra in receipts.  The prime minister has previously said that the UK cannot “tax [its] way to growth” while under-pressure Chancellor Rachel Reeves vowed to [...]

  • Watch: Labour’s ‘total clusterf**k’

    July 3, 2025

    It wasn’t supposed to be like this. Exactly a year ago the Labour government swept into office promising stability, competence and economic growth. So why, on the one year anniversary of their victory, does it feel like their dying days? This has been a pretty extraordinary week in British politics and it’s a week that [...]

  • Gilts back to where they were before Rachel Reeves’ tears

    July 3, 2025

    UK government bonds have settled back to prices seen before Rachel Reeves was seen crying at PMQs as bond markets were soothed by Keir Starmer’s warm words about the chancellor.  The prime minister said Rachel Reeves was a “great colleague” and re-affirmed she would be the chancellor for “a very long time to come”.  Bond [...]

  • Labour versus the bond markets, businesses and ballots

    July 3, 2025

    Birthdays aren’t best celebrated on a hangover but Labour’s senior leaders will be waking up with a painful headache this morning after haemorrhaging support from both bond markets and backbenchers. As dozens of Labour MPs discovered the level of influence they held over whips in parliament, unsympathetic bond traders flexed their own powers as medium-term [...]

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