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UK economy

  • Payments watchdog won’t be abolished ‘any earlier than 2027’

    February 4, 2026

    The boss of the payments watchdog has said he doesn’t expect the regulator to be officially abolished any earlier than the first quarter of 2027 as criticism grows over the slow progress of reforms in the sector. David Geale, managing director at the Payment Systems Regulator (PSR), said he had “not seen the outcome” of [...]

  • Service sector sees longest run of job losses in 16 years

    February 4, 2026

    A new survey suggests that the UK service sector has endured its longest sustained period of job losses in 16 years, despite rising business activity at the start of the year.  Employment in the service sector has decreased in each month since October 2024, according to S&P’s purchasing managers’ index (PMI), with the pace of [...]

  • Shell chief reportedly set for £4.5m pay boost

    February 4, 2026

    The boss of Shell will reportedly receive a multimillion-pound remuneration incentive, with the firm poised to reveal a new boardroom pay policy.  According to reports, the firm’s chief executive Wael Sawan would pocket at least £4.5m more each year.  Sky News‘ Mark Kleinman has reported that investor sources have revealed a long-term incentive stock reward [...]

  • Mandelson branded a ‘naive sucker’ as he tried to build career post-government

    February 4, 2026

    Peter Mandelson was branded “naive” and a “sucker” in new revelations from the Epstein files that shine a light on Mandelson’s efforts to build a career post-government. The Labour veteran told convicted paedophile Jeffrey Epstein that he had sought the advice of financier Nathaniel Rothschild as he weighed up a role at advisory and investment banking [...]

  • Bank of England to avoid signalling faster interest rate cuts

    February 4, 2026

    The Bank of England will not signal a faster pace of interest rate cuts over the coming months to combat jobs market woes across the UK economy, with some economists fearing it could send markets mixed messages on monetary policy.  Markets expect interest rates to be held at 3.75 per cent on Thursday due to [...]

  • FTSE 100 Live: Beazley seals $15bn Zurich deal, Santander in $12bn takeover

    February 4, 2026

    Good morning and welcome back to the City AM liveblog. Shares in Europe’s biggest data, publishing and legal software groups slumped on Tuesday after AI giant Anthropic unveiled a new tool aimed directly at in-house lawyers. The move rattled investors who had long viewed the sector as an AI winner. In London, Relx fell close [...]

  • Political uncertainty leaves British businesses only planning year-to-year

    February 4, 2026

    Businesses are seeing political change and regulatory uncertainty as a barrier to long-term workforce planning, making it harder for leaders to implement effective workforce strategies. Nearly 80 per cent of employers find themselves unable to look beyond a 12-month horizon, according to a survey of nearly 700 employers by law firm Lewis Silkin. Lucy Lewis, [...]

  • Britain’s growth slumps and the Business Secretary scratches his head

    February 4, 2026

    Having spent another day wading through the Epstein-Mandelson email traffic I was going to write another column about how unbelievably grubby the revelations are, but it’s too depressing. So, I thought I’d focus on something more cheerful; the latest downgrades to the UK’s economic growth forecasts. On his visit to China alongside the PM, the [...]

  • The Debate: Should student loan debt be forgiven?

    February 4, 2026

    Student loans are under the spotlight, with those who took out plans between 2012 and 2023 feeling the bite. Should student debt (or some of it) be forgiven?

  • Cost of hiring graduates shot up after Reeves’ tax raids

    February 4, 2026

    The cost of hiring graduates and other young Brits in entry-level roles increased by seven per cent in real terms after Chancellor Rachel Reeves hiked employers’ national insurance and raised the national living wage, economists have found. A new set of forecasts and analysis by the National Institute of Economic and Social Research (Niesr) has [...]

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