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UK economy

  • Reeves’ taxes push inflation to 3.5 per cent in ‘Awful April’

    May 21, 2025

    Inflation bounced back up to 3.5 per cent in April, official data has revealed, underlining the cost burden firms are taking on after Chancellor Reeves’ tax hikes on employers and rise to the national living wage came into effect.  Consumer price inflation rose by 1.2 per cent on a month-on-month basis, higher than the last [...]

  • UK SMEs could ‘unlock £78bn’ by using AI

    May 21, 2025

    The UK’s small and medium enterprises (SMEs) could unlock up to £78bn for the economy over the next decade through greater adoption of generative AI. Despite the transformative potential of AI tools like ChatGPT, Copilot, and other large language models (LLMs), uptake among SMEs remains limited. Less than one in five small businesses are currently [...]

  • Reeves takes comfort in the promise of future growth

    May 21, 2025

    The government is having a good week. The Prime Minister, in particular, has a spring in his step following his UK-EU ‘reset’ summit. Addressing MPs in the House of Commons yesterday he seemed to have grown taller. True, it only takes a glance at pictures from last week of Starmer meeting Albania’s 6ft 7in leader [...]

  • What will stricter buy now pay later regulations mean for Klarna?

    May 20, 2025

    The government is clamping down on the “wild west” of buy now, pay later (BNPL) but this could spark trouble for industry veterans in a competitive sector. The Treasury is set to bring BNPL providers under the supervision of the Financial Conduct Authority, meaning they will have to adhere to the stricter frameworks of the [...]

  • Starmer and Badenoch face off over EU deal 

    May 20, 2025

    Prime Minister Keir Starmer has defended his EU ‘reset’ deal in  the House of Commons amid criticism from opposition MPs that the pact unpicks Brexit and sells out the fishing industry.  Starmer told MPs that businesses’ reaction to the EU deal was so supportive that he didn’t “have time to run through the list” of [...]

  • 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 [...]

  • Insolvency levels hit highest level in eight months in Awful April

    May 20, 2025

    April insolvency levels soared to their highest level in in eight months, official data has shown, reflecting businesses’ helplessness in the face of higher employment costs and the looming threat of President Trump’s tariffs.  Over 2,000 companies collapsed last month, with most owners filing for voluntary liquidation and some 105 firms going into administration.  If [...]

  • Starmer meets BlackRock’s Larry Fink for growth talks

    May 20, 2025

    The Prime Minister this morning met the boss of the world’s largest money manager, in the latest such conversation as part of ministers’ growth agenda. Sir Keir Starmer held discussions with Larry Fink, who leads the $11.6tn giant BlackRock. Fink was pictured leaving Downing Street on Tuesday morning. This follows on from the American billionaire’s [...]

  • Trio of trade deals puts UK in better position “than any other country,” Rachel Reeves says

    May 20, 2025

    Chancellor Rachel Reeves has said the UK is now in a better place on trade “than any other country in the world” after securing new trade agreements with India, the US and the EU this month. Reeves said the agreements have “come along like buses,” and that the government’s next targets for trade deals are [...]

  • Interest rate cuts need to slow down to curb inflation, says Huw Pill 

    May 20, 2025

    Interest rate cuts are fuelling inflation and need to slow down, the Bank of England’s chief economist Huw Pill has warned ahead of the release of fresh data set to show a jump in price growth in April.  The Bank‘s Monetary Policy Committee (MPC) voted by a slim majority to cut interest rates to 4.25 [...]

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