The four factors set to raise inflation this year March 7, 2025 Inflation will briefly hit 3.6 per cent this year and “remain well above” the Bank of England’s target until late 2026, according to Oxford Economics. In a report led by UK economist Edward Allenby outlined the four key drivers of inflation in the upcoming year. Changes in the Budget Allenby highlighted the VAT slapped onto [...]
Co-op Bank mortgage applications soar following takeover March 7, 2025 Mortgage applications boomed at Coventry Building Society’s new subsidiary, The Co-op Bank, in its first batch of financial results since the acquisition. The bank recorded £116.2m in pre-tax profit for 2024, down from the £120.9m booked in 2023 but in line with company expectations. It said lower mortgage margins and increased savings rates weighed on net interest income, dampening [...]
Rate-setter calls on Bank of England to adopt ‘activist’ approach to rates March 6, 2025 The Bank of England should adopt a more activist approach to setting interest rates in order to deal with the “substantial volatility” affecting geopolitics and financial markets, a rate-setter has said. Catherine Mann, an external member of the Bank’s Monetary Policy Committee (MPC), argued that rate-setters should be more willing to vote for more radical [...]
Investors pulled £3bn from funds in January amidst economic uncertainty March 6, 2025 Investors pulled £3bn out of funds amidst geopolitical and economic instability in January. This marked a sharp reverse from December, when £2.3bn had flowed into funds, according to data published by the Investment Association (IA). The research said macroeconomic conditions on the home front, namely the reacceleration of inflation, had played a part in the investment [...]
Week in Business: Who will Rachel Reeves blame for higher taxes in Spring Statement? March 6, 2025 City AM Editor Christian May looks at the biggest business stories in his weekly video, today focusing on the UK economy and upcoming Spring Statement.
UK construction output plummets to five-year low March 6, 2025 The UK’s construction output hit a five-year low in February as its fastest downturn since May 2020 continued. S&P Global’s UK Construction Purchasing Managers Index dropped to 44.6 in February, down from 48.1 in January. The latest figure indicated a steep decline in overall construction activity was propelled by a sluggish performance in residential buildings, [...]
FTSE 100 giant Admiral announces bumper special dividend as profit jumps March 6, 2025 FTSE 100 insurance giant Admiral has reported a significant jump in profit for 2024. Earnings per share nearly doubled to 216.6p, up from 111.2p in the previous year, as pre-tax earnings increased by 90 per cent to £839.2m Turnover rose by 28 per cent to £6.15bn, as insurance revenue grew by 37 per cent to [...]
HMV: Sales on song as billionaire owner helps turn around high street icon March 6, 2025 Sales at HMV have more than doubled in the last three years as its recovery under the ownership of Canadian billionaire Doug Putman continues at pace. The high street staple has reported a turnover of £189.5m for the 12 months to 30 May, 2024, up from the £177.9m it achieved in the prior year. The [...]
UK’s payments regulator slams Mastercard and Visa for hiking fees March 6, 2025 The UK’s payments regulator has said the card market “isn’t working well” following a review into the fess charged by industry giants Mastercard and Visa. The Payment System Regulator (PSR) said on Thursday that the firms have raised core scheme processing fees 25 per cent since 2017, costing UK businesses an extra £170m a year. [...]
Could inheritance tax make chips an expensive luxury? March 6, 2025 Inheritance tax for farmers is often framed as an issue for landowners but if it leads to a loss of potato-growing land this could trigger sharp increases in the price of chips, says Sarah Jordan Could chips become the new caviar? It sounds absurd, but looming changes to inheritance tax (IHT) for farmers could transform [...]