Andrew Bailey sets Donald Trump challenge on tariff plans July 16, 2025 Bank of England Governor Andrew Bailey has set President Donald Trump a “constructive challenge” to explain contradictions in fiscal policies that threaten the world economy and financial stability. In his Mansion House speech delivered to an audience of City leaders, Andrew Bailey defended the principles of free trade and post-war agreements to introduce multilateral systems [...]
Alarming OBR forecast is too optimistic – debt is set to be 647 per cent of GDP July 9, 2025 The OBR is being far too optimistic in its assumptions about productivity growth in the UK – meaning the scale of the country’s debt problem is even greater than it appears, says Ben Ramanauskas According to the OBR’s forecast, the National Debt is projected to be over 270 per cent of GDP by the 2070s. [...]
Berenberg: Labour welfare row will lead to tax hikes and higher interest rates June 26, 2025 Divisive party politics at the top of the Labour government stand to prevent the Bank of England from making further interest rate cuts, given struggles to curb spending, a leading City broker has warned. The government is embroiled in another row over spending cuts, as £4.8bn in welfare budget savings look set to be watered down following a [...]
Blow to Thames Water as KKR pulls out of equity raise June 3, 2025 Thames Water’s battle to escape nationalisation has suffered a hammer blow after KKR withdrew its bid to acquire an equity stake in the business. The US private equity giant had been selected as a preferred partner for the debt-laden utility business as part of its efforts to raise funds, with KKR having “prepared detailed plans, [...]
Relentless surge in government debt is unsustainable says BIS May 27, 2025 Policymakers across the world need to get a grip on the relentless surge in public government debt, a leading economist has warned. Agustin Carstens, general manager of the Bank for International Settlements (BIS) said fiscal authorities have a “narrow window” to put their house in order “before the public’s trust in their commitments starts to [...]
UK government borrowing blows past estimates on Labour’s spending plans May 22, 2025 Government borrowing spiked in April, official data has shown, reflecting Rachel Reeves’s difficulties in controlling public finances. The rise to £20.2bn in monthly borrowing was more than economists’ prediction of £18bn. Capital Economics suggested that the rise in borrowing costs since March via debt interest payments has slashed Reeves’ headroom down to £5.7bn. Tax receipts [...]
The great debt headache May 22, 2025 Debt, debt, everywhere but not a drop to… add to any well balanced investment portfolio. The world is awash with government bonds thanks to the debt piled up during the pandemic. But the increase in interest rates alongside the most significant bout of inflation for four decades has left investors in a quandary. What interest [...]
Government debt sale delayed over ‘Bloomberg system issues’ May 21, 2025 An auction of UK government debt was delayed on Wednesday after a Bloomberg system outage prevented traders from participating. In a statement the UK’s Debt Management Office (DMO) said: “Due to the ongoing market-wide Bloomberg system issues, the bidding window for this morning’s auction of 4 per cent Treasury Gilt 2031 is being extended.” A [...]
Reeves’ risky borrowing policies prompt fresh tax hike fears May 20, 2025 Tax hike fears are gathering pace as rising borrowing costs are set to wipe out around half of Chancellor Rachel Reeves’ small £9.9bn headroom, a leading economics consultancy has warned. Reeves made around £14bn in spending cuts at her Spring Statement two months ago but left herself with one of the slimmest fiscal buffers on [...]
Debenhams: Shares in Boohoo owner rise amid £175m refinancing talks May 12, 2025 Shares in Debenhams Group, which also includes brands such as Boohoo, have risen amid talks over a £175m refinancing its huge debt pile as it looks to turn around the struggling business. The owner of Pretty Little Thing, which rebranded to Debenhams earlier this year in a shift to a marketplace model, has been struggling [...]