Private sector slump to drag on to Spring 2026, businesses say December 22, 2025 UK business leaders have warned that the sharp downturn in the private sector is likely to continue until Spring 2026, after firms put plans for future investment on ice in the run-up to the Labour government’s Autumn Budget. The Confederation of British Industry (CBI) anticipates private sector output to fall in the fourth quarter after [...]
UK economic growth downgraded for second quarter December 22, 2025 Growth in the UK economy was revised downwards on Monday after fresh figures revealed economy expanded less than initially thought in the second quarter. The Office for National Statistics (ONS) cut the UK’s economic growth in the three months to June to 0.2 per cent from 0.3 per cent previously. The third quarter’s sluggish 0.1 [...]
Know your OBR from your CPS? Take City AM’s politics quiz of 2025 December 20, 2025 Welcome to City AM‘s politics quiz of 2025, a year where Keir Starmer said his best moment in office was walking into Downing Street, Kemi Badenoch got Northern Ireland’s voting record on Brexit wrong and Nigel Farage admitted he did not own property in his constituency. There have been many other errors, blunders and mishaps [...]
Rachel Reeves: I have returned stability to the British economy December 19, 2025 The latest cut to interest rates reflects the choices this government has made to restore economic stability, says Rachel Reeves The latest interest rate cut is another sign that we have returned stability to the British economy. The Bank has now reduced rates from four per cent to 3.75 cent, the sixth cut since the [...]
Metro Bank handed capital boost from banking watchdog December 19, 2025 High street lender Metro Bank is set for a major capital boost after a reclassification from the banking watchdog. The FTSE 250 firm said on Friday it has received confirmation from the Prudential Regulation Authority (PRA) that it would be listed as a transfer firm under the newly introduced MREL regime from 2026. Introduced in [...]
UK government borrowing overshoots expectations in November December 19, 2025 UK government borrowing exceeded expectations in November but still fell year-on-year after tax receipts surged following Rachel Reeves’ first Autumn Budget. The latest release from the Office for National Statistics (ONS) showed public sector borrowing topped £11.7bn in November. City economists expected government borrowing to come in at £10.2bn over the month. Despite this, the [...]
‘Chance of 2026 recession’ despite interest rate cut – follow live December 18, 2025 Welcome back to the City AM liveblog. The Bank of England has handed Chancellor Rachel Reeves and the Labour government a highly-desired Christmas present today. The central bank confirmed a chop to interest rates falling to 3.75 per cent – the lowest in nearly three years. It comes after inflation undershot expectations on Wednesday providing [...]
Britain is ‘too pessimistic’ to succeed December 18, 2025 Britain is in the grips of an overly pessimistic mindset that is preventing it from taking the risks and making the reforms needed to reawaken its economy, the former chair of Deutsche Bank has said. Dr Paul Achleitner said that while structural issues were largely behind the paucity of growth across Europe and the UK, [...]
Business rates overhaul to hit Square Mile hotels as row continues December 18, 2025 Hotels in the Square Mile are set to be among the hardest-hit by the property revaluations which have sparked a clash between the hospitality sector and the government. The business rates overhaul, introduced in the November Budget, will see the property values that determine this tax more than double across leading hotels in the City [...]
For Starmer, things can only get worse December 18, 2025 It’s been a bad year for Starmer, characterised by scandals, economic woes and plummeting poll ratings – and it looks 2026 is going to be no better, says Tom Harwood As we all enjoy late December’s time honoured if questionable traditions of frantic Christmas shopping, parties and hangovers – please spare a thought for one [...]