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UK economy

  • UK economy in peril as growth forecast slashed in half

    Economics

    The UK economy is set to grow by half as much as economists predicted before the war in Iran started as forecasters attempt to make sense of how deep the impact of an energy price shock will be.  A leading economics consultancy has revised its UK growth forecast down to 0.4 per cent compared to [...]

    The UK government has been urged to introduce a new investor visa for wealthy foreign nationals to boost the UK economy.
  • Borrowing costs soar to post-financial crisis high in blow to Reeves

    Economics

    UK government borrowing costs have soared to their highest level since the Great Financial Crisis in 2008, with markets frightened by the state of public finances in the face of another global price shock.  Gilt yields have inched up over the course of the week, with the ten-year gilt yield topping 4.9 per cent on [...]

    Rachel Reeves addressing financial challenges amid rising borrowing costs, emphasizing economic resilience strategies.
  • Bank of England to hike interest rates twice, JP Morgan says

    Economics

    The Bank of England will hike interest rates at its next meeting in late April, JP Morgan has predicted, presenting a new threat to the security of the UK economy.  JP Morgan economist Allan Monks has said that the Bank’s Monetary Policy Committee (MPC) will opt to raise interest rates at least twice this year.  [...]

    For the first time in months, economists are unsure whether the Bank of England will cut interest rates.
  • What makes Rachel Reeves think she should be picking winners?

    March 20, 2026

    Rachel Reeves’ vision for an “active and strategic” state is just old fashioned dirigisme with a new name, says Emmanuel Igwe A few hours before her Mais lecture this week, the chancellor had told Faisal Islam in an interview that she “so believed in an active and strategic state… working with working people to shape the [...]

  • Reeves hit by spike in government borrowing

    March 20, 2026

    UK government borrowing rose by more than expected in February, it has been revealed, adding a strain on public finances as Chancellor Rachel Reeves faces trouble ahead with deciding the government’s response to the war in Iran.  The Office for National Statistics (ONS) has said that the government borrowed £14bn, with economists having predicted the [...]

  • FTSE 100 Live: Gilt yields soar, Bank of England rate hike fears grow, Wetherspoon shares tumble

    March 20, 2026

    Good morning from the City AM liveblog team. Stocks made gains on Friday morning after a statement from Israeli leader Benjamin Netanyahu that he could see “this war ending a lot faster than people think” reassured markets that conflict in the Middle East could soon recede. The remarks follow further missile strikes by the US [...]

  • Is AI ‘vibe coding’ too good to be true?

    March 20, 2026

    AI means companies can now 'vibe code' their own software products on the cheap – but they may soon discover the risks, writes Paul Armstrong.

  • CMA must act now to fix Britain’s broken cloud market 

    March 20, 2026

    The CMA correctly diagnosed the UK cloud market as broken and dysfunctional, so why isn’t it changing anything, writes Lord Clement-Jones.

  • Open banking is a growth engine Britain cannot ignore

    March 20, 2026

    Open banking doesn't grab headlines like AI, but combining these technologies can deliver exponential benefits, writes John Glen MP.

  • Sluggish economy spooks small housebuilders

    March 20, 2026

    Small and medium (SME) housebuilders are being put off from investing in new projects by the UK’s economy and housing market, according to a new report. As many as 70 per cent of SME building firms said current market conditions are reducing their appetite for starting new sites and a quarter expect to cut back [...]

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