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      The items included in the consumer price inflation (CPI) basket of goods and services tend to reflect Britons’ typical shopping list and favourite feel-good purchases.

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UK economy

  • Donald Trump announces 25 per cent tariffs on EU imports

    February 26, 2025

    Donald Trump has announced he plans to slap 25 per cent tariffs on imports from the European Union (EU) into the US. The US President slammed the European trading bloc, claiming it was set up to “screw” America, and had “done a good job of it but now I am President”. His comments came as [...]

  • Tariffs unlikely to spark persistent inflation, Bank of England rate-setter says

    February 26, 2025

    Swati Dhingra, a rate-setter at the Bank of England, said Donald Trump’s tariffs would likely push down on domestic inflation as global exporters slashed prices to maintain market share. Dhingra warned that the UK was “particularly sensitive” to changes in imported costs due to its openness, but suggested that the danger of tariff-induced inflation was [...]

  • Shadow Chancellor slams inheritance tax changes as an “absurdity”

    February 26, 2025

    Shadow Chancellor Mel Stride has slammed proposed changes to business tax relief, saying that the policy will force many to “shut down or be forced to sell”. Stride’s comments echo those of prominent businesspeople and politicians who have been railing against the higher taxes announced in Labour’s budget for the last four months. “British institutions, [...]

  • PMQs: Starmer won’t confirm if Chagos deal money included in defence rise

    February 26, 2025

    Keir Starmer has declined to confirm whether money spent on the Chagos Islands deal will be included in the rise in defence spending. The UK is in talks with Mauritius about handing over sovereignty of the British Indian Ocean Territory but leasing back the strategic Diego Garcia military base, which the US uses. The Prime [...]

  • Keir Starmer’s defence pledge will prompt ‘tough choices’ on tax

    February 26, 2025

    The Prime Minister confirmed yesterday that defence spending will rise to 2.5 per cent of GDP by 2027, up from 2.3 per cent at the moment.

  • Heathrow to pay first dividend in five years to new owners

    February 26, 2025

    London Heathrow Airport plans to pay its owners a first dividend in five years after passenger numbers reached record highs in 2024. The West London hub has settled on a payout of £250m over the coming weeks, the first since before the pandemic. Heathrow’s ownership underwent its most significant change in decades in 2024 after [...]

  • Spring could prove to be an economic washout

    February 26, 2025

    A modest burst of warm weather towards the end of last week may have coaxed the snowdrops and bluebells into life but don’t go dusting off the BBQ, as the cold isn’t done with us yet. Meteorologically speaking, Spring kicks in on 1 March but forecasters say the first month of the new season is [...]

  • ‘Productivity argument’ against family firm tax breaks, IFS director argues

    February 25, 2025

    There is a “productivity argument” against treating family businesses “generously”, the Institute for Fiscal Studies (IFS) director has argued, when asked about inheritance tax. Economist Paul Johnson addressed the National Farmers Union (NFU) conference in Westminster on Tuesday, which saw environment secretary Steve Reed’s speech interrupted by farming protestors, as well as NFU president Tom [...]

  • London Stock Exchange boss: UK needs to change ‘perverse’ view on retail investment

    February 25, 2025

    "We have a regulatory structure that has historically made it easier to buy a riskier product and then hardest to buy the least risky product in the stack, which is perverse," she said.

  • Higher taxes will force two-thirds of hospitality business to cut jobs

    February 24, 2025

    The hospitality sector will be drastically affected by higher taxes on employees’ wages, a new survey has found. A majority of businesses will reduce employment, while over one in ten have to close at least one site and just under two thirds will cancel investment, according to UKHospitality. The UK’s three core hospitality trade bodies [...]

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