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Updated 2025-07-08 09:00
Flight of the non-doms: how worried should Labour be about the super-rich leaving the UK?
Reports say wealthy elite are leaving over tax changes - prompting a possible rethink by Rachel Reeves - but hard data is tricky to findIn Chester Square, the exclusive London address that was once home to Margaret Thatcher, multimillion-pound stuccoed townhouses are proving a hard sell.More than 20 luxury properties in the Belgravia postcode are on the market, says a buying agent. In nearby Montpelier Square in Knightsbridge, less than a 10-minute walk from Harrods department store, nine houses are on the open market. Continue reading...
EU leaders race to secure a deal as deadline looms in Trump trade talks
There are just two days of talks left before the US president's potentially swingeing tariffs are restoredThe EU is entering a crunch week with only two days of talks left to secure a trade deal with Washinton to avert Donald Trump's threatened 50% tariff on its imports into the US.According to the US treasury secretary, Scott Bessent, on Friday, the negotiations - which continued over the weekend - are focussed on 15 to 18 agreements with important partners, while Trump warned of import tax rates of up to 70% on others. Continue reading...
Liz Truss is long gone – but her fiscal meltdown still dictates every step Labour makes | Max Mosley
A jittery No 10 now seeks the market's approval for everything. The result? Cruel cuts and a chronic fear of desperately needed public spendingOn 6 September 2022, Liz Truss entered No 10 with a clear vision for the country; the country asked her to leave less than 50 days later. But nearly three years on, even though all that remains of her premiership at Downing Street is a portrait she didn't stick around long enough to see hung, it is she who really runs Britain.Not through her influence - which has since been reduced to poorly attended speeches at far-right conferences in the US - but through the fear she left behind. Truss may be gone, but what remains is the shadow her failure cast, and the rigid fiscal caution that grew out of it.Max Mosley is a senior economist at the New Economics Foundation Continue reading...
The spirit of the G8 ‘make poverty history’ summit of 2005 seems long gone | Heather Stewart
The 2008 crash, Trump, aid budget cuts and a more fragmented world has made debt relief seem a lost cause but there are murmurs of a renaissanceTwenty years ago this weekend, the leaders of the world's most powerful countries, chaired by Tony Blair, gathered at the Scottish golf resort of Gleneagles and made a series of historic promises on debt relief and overseas aid.It was the culmination of a long-running campaign involving charities, churches and celebrities and benefited from the passionate commitment of Gordon Brown, for whom international development is a lifelong cause. Continue reading...
Here we go again: latest Trump tariff deadline looms amid inflation concerns
US is on the brink of launching a trade assault on dozens of countries as 90-day pause on tariffs is set to end on 9 JulyWhen Donald Trump unveiled his liberation day" tariffs in the spring, only to pull the plug days later as panic tore through global markets, his officials scrambled to present the climbdown as temporary.Three months of frenetic talks would enable the Trump administration to strike dozens of trade agreements with countries across the world, they claimed. We're going to run," the White House trade adviser Peter Navarro told Fox Business Network. Ninety deals in 90 days is possible." Continue reading...
How to balance the UK books: six options open to Rachel Reeves
From spending cuts to tax rises, we rank possible routes to plugging the gap caused by Labour's welfare climbdownRachel Reeves is under pressure to tackle a multibillion-pound shortfall in the government finances.Labour's high-stakes welfare U-turn and a spike in bond markets prompted by speculation over the chancellor's position has dragged the government's tax and spending plans into the spotlight. Continue reading...
Rachel Reeves needs wider headroom against fiscal rules, ex-Bank of England deputy says
Charlie Bean says slim margin of 10bn means chancellor has to neurotically fine-tune taxes to control OBR forecast'
‘An unjust transition’? Teesside locals divided over net zero after deindustrialisation
In the third in a series, the Guardian hears how Reform UK is targeting voters over green policies - which business says are bringing new jobs to the area
US adds 147,000 jobs in June, surpassing expectations amid Trump trade war
Economists anticipated drop, but 8,000 new positions were added in June compared with May, with unemployment rate down to 4.1%The US economy added 147,000 jobs in June, a sign of continuing strength in the labor market amid Donald Trump's trade war.The number of jobs added surpassed expectations, as economists largely anticipated a drop in openings. Instead, 3,000 more jobs were added in June compared with May, according to new job figures from the Bureau of Labor Statistics (BLS). The unemployment rate actually decreased to 4.1%, down from 4.2% in May. Continue reading...
Pound and UK bonds recovering after Starmer backs Reeves; US economy adds 147,000 jobs in June – business live
Rolling coverage of the latest economic and financial news, as economists predict that Wednesday's sell-off has strengthened Reeves's position
UK government bond markets rally after Starmer backs Reeves
Bond yields fall, reversing a sharp rise on Wednesday sparked by speculation over the future of the chancellor Business live - latest updatesUK government bonds have rallied after Keir Starmer backed Rachel Reeves to remain as chancellor for a very long time" despite lingering investor concerns over a multibillion-pound hole in Britain's public finances.The yield - in effect the interest rate - on 10-year British government bonds, also known as gilts, fell on Thursday morning to trade close to 4.5%, reversing much of the rise on Wednesday sparked by feverish speculation over Reeves's future. Continue reading...
‘It’s harsh. It’s mean, brutal’: Trump bill to cause most harm to America’s poorest
President embraces Robin-Hood-in-reverse policies to benefit wealthiest and hurt those earning under $50,000Last November, Donald Trump made a solemn vow to all Americans: Every citizen, I will fight for you, your family and your future every single day." Eight months later, Trump is vigorously backing many policies that will mean pain for millions.Trump has pushed to enact the Republican budget bill, which would make significant cuts to Medicaid, Obamacare, and food assistance, and would do the greatest damage to those Americans struggling hardest to make ends meet - the 30% of the US population that lives in households earning under $50,000 a year. Continue reading...
Nearly 1,000 Britons will keep shorter working week after trial
All 17 businesses in six-month pilot to continue with either four-day week or nine-day fortnightNearly 1,000 British workers will keep a shorter working week after the latest trial of a four-day week and similar changes to traditional working patterns.All 17 British businesses in a six-month trial of the four-day week said they would continue with an arrangement consisting of either four days a week or nine days a fortnight. All the employees remained on their full salary. Continue reading...
UK bond yields rise sharply amid speculation over future of Rachel Reeves
Cost of government borrowing leaps as investors take fright from PMQs, before falling back as No 10 says chancellor staying in post
Where does the welfare bill climbdown leave UK public finances?
With 6.25bn in planned savings now shelved, the government faces awkward choices on how to plug gap
EU may as well be ‘province of China’ due to reliance on imports, says industrialist
Stefan Scherer, boss of AMG Lithium, says Europe must become more self-sufficient in critical raw materials and new technologiesThe EU may as well apply to be a province of China" such is its inability to wean itself off that country's supply of critical raw materials used in everything from electric vehicles to smartphones and wind turbines, a leading German industrialist has said.As chief executive of AMG Lithium, the EU's first factory to make the lithium hydroxide used in many car batteries, Stefan Scherer sits at the centre of what has been dubbed a new gold rush. Continue reading...
The G7 has once again put multinationals’ profits over the interests of people
Acceding to US demands to exempt its companies from an agreed global tax deal is morally and financially indefensibleThe US Treasury just made a deal with the other G7 countries that global minimum taxes that were already agreed upon will not apply to American companies. The G7 governments caved under intense pressure from President Donald Trump and lobbying from multinationals in Washington, London, Brussels, and beyond - just as India, and now, sadly, Canada have caved on digital taxation.Years ago, the international community recognised that too many global companies were not paying their fair share of taxes, and some weren't paying taxes to the country where the economic activity actually occurs. The complex agreement that emerged in 2021 at the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting comprised two pillars; only Pillar Two, a global minimum corporate tax, has been adopted. (The other pillar allocated taxation rights among countries and spurred opposition from developing countries and the US.) Continue reading...
Fed chair Jerome Powell blames Trump tariffs for failure to cut US interest rates this year – business live
Rolling coverage of the latest economic and financial news
Food prices pushed up by hot weather hitting harvest yields, say UK retailers
Rising fruit and vegetable prices contribute to jump in annual food price inflation in June to 3.7%Britain's largest retailers are warning that food prices are being driven up by hot weather hitting harvest yields, as the latest UK heatwave pushes temperatures close to record levels.The British Retail Consortium (BRC) said rising fruit and vegetable prices had contributed to a jump in food price inflation in June, while retailers also passed on tax rises and employment costs to consumers. Continue reading...
Taylor Swift, Charli xcx and Springsteen among live music acts who gave UK £10bn lift in 2024
Report says concerts attracted record 23.5m fans, leading to unprecedented spend across British economyA wave of big-name acts including Taylor Swift, Charli xcx and Bruce Springsteen helped to attract a record of more than 23 million live music fans in the UK last year, leading to an unprecedented 10bn of spending across the UK economy.A report from the industry body UK Music estimates that 23.5 million music tourists" attended concerts and festivals last year, up almost a quarter on the 19.2 million in 2023. Continue reading...
White House says Canadian PM ‘caved’ to Trump demand to scrap tech tax
Trump officials hail U-turn as Mark Carney says decision to rescind digital services tax means revival of trade talksThe United States has said that Canada's prime minister, Mark Carney, caved" to demands from the White House after his government abruptly scrapped their digital services tax on US technology companies, which was set to go into effect on Monday.It's very simple. Prime Minister Carney and Canada caved to President [Donald] Trump and the United States of America," the press secretary, Karoline Leavitt, said in a daily briefing. Continue reading...
UK economic growth confirmed at 0.7% in first quarter; Lincolnshire oil refinery calls in administrators –as it happened
UK-US trade deal kicks in today, lowering tariffs for British carmakers and aerospace sectorUK households hit by squeeze on living standards despite fastest growth in G7Karim Haji, global and UK head of financial services at KPMG, said:May's uptick in mortgage approvals bucks the downward trend we've seen throughout the year so far. The gradual easing of interest rates could be helping to boost confidence and demand amongst mortgage borrowers.The cost of living remains high, but a drop in consumer borrowing in May signals that rising incomes are starting to feed through to the cost of day-to-day expenses.It is incredibly positive news to see an increased number of mortgage applications approved. It is one of the loudest signals of them all regarding consumer affordability, and it is also a massive vote of confidence from lenders in the longer-term prospects of the economy too.As we head into the summer months, we have witnessed on average the number of viewings per property available see an uplift of around 30% compared to the month previous. On top of this, we have also seen the UK Government make a pledge to create a National Housing Bank which could bring significant investment to help build 500,000 new homes, enabling a potential greater degree of flexibility for those who aspire to buy. Continue reading...
Lindsey oil refinery owner Prax falls into administration as ministers urged to intervene
Concerns over conduct of bosses at Lincolnshire site, with ministers saying workers had been badly let down'
UK households hit by squeeze on living standards despite fastest growth in G7
ONS confirms GDP growth at 0.7% between January and March but households saving less of disposable income
Number of new UK entry-level jobs has dived since ChatGPT launch – research
Vacancies for graduate jobs, apprenticeships, internships and junior jobs with no degree requirement have dropped 32%, Adzuna finds
Rachel Reeves must rethink how tax and spend decisions are made after welfare U-turn | Heather Stewart
Binary rules and twice-yearly OBR forecasts have turned chancellor's moves into grim spectator sportThere are many lessons for Labour's bruised leadership from last week's embarrassing U-turn on welfare cuts, but one is surely that how - and when - fiscal policy is set is not working.Binary fiscal rules, a slim margin for error (less than 10bn), and the Office for Budget Responsibility's twice-yearly forecasts have combined to turn tax and spending decisions into a grim spectator sport. Continue reading...
‘It breaks my heart’: how a refinery closure is hitting jobs and politics
In the second in a series, the Guardian looks at how Grangemouth struggles as Reform UK hopes to win votes
The global south needs more than tinkering at a conference: debt forgiveness is the only fair way | Kenneth Mohammed
Next week, a UN summit in Seville will discuss the future of financing the world's poorer nations. It should first concede that the old methods have failedIt is 2025, and the architecture of economic power remains grossly tilted against the nations of the global south. Nowhere is this imbalance more acute - and more enduring - than in the debilitating impact of sovereign debt.From the vast countries of Africa to the scattered but strategically vital small island developing states (Sids) of the Caribbean and the Pacific, debt has become a modern form of bondage - the chains that restrict growth, sovereignty and the basic human dignity of nations struggling to define their own path to development. Continue reading...
Starmer still faces Labour anger over risk of ‘two-tier’ disability benefits
Rebel MPs will try to lay new amendment on Monday giving colleagues a chance to delay bill despite No 10 concessionsKeir Starmer is battling to stem the revolt over his cuts to disability benefits, with about 50 Labour MPs concerned the new concessions will create a two-tier" system where existing and new claimants are treated differently.Senior government sources insisted things were moving in the right direction" for No 10, with the whips phoning backbenchers to persuade them to support the bill on Tuesday. Continue reading...
Reeves expected to freeze income tax thresholds to raise funds after welfare U-turn
Government's concessions over welfare cuts leave chancellor with a growing hole in her budgetRachel Reeves is expected to extend a freeze on income tax thresholds to raise fresh funds after the government's U-turn on welfare cuts left her with a growing budget hole.The chancellor was already facing pressure to backtrack on pledges not to increase taxes further as she attempted to fix public services and grow the economy while meeting her fiscal rules. Continue reading...
Wall Street hits record high on trade deal hopes; UK car exports to US halve due to tariffs – as it happened
Rolling coverage of the latest economic and financial news
Rising poverty in conflict zones ‘causes a billion people to go hungry’
In first assessment since pandemic in 2020, World Bank urges other countries to step up supportExtreme poverty is accelerating in 39 countries affected by war and conflict, leaving more than a billion people to go hungry, according to the World Bank.Civil wars and confrontations between nations, mostly in Africa, have set back economic growth and reduced the incomes of more than a billion people, driving up extreme poverty faster than anywhere else", the Washington-based body said. Continue reading...
EU ready for trade deal with US but ‘all options on the table’, says von der Leyen
European Commission president says EU will defend the European interest as needed' as Trump threatens 50% steel tariffsThe European Commission president, Ursula von der Leyen, has said the EU is ready for a trade deal with Donald Trump, but all options remain on the table".Von der Leyen said she was analysing the latest US negotiating document received on Thursday. Our message today is clear, we are ready for a deal," she told reporters, after briefing EU leaders at a summit in Brussels. At the same time, we are preparing for the possibility that no satisfactory agreement is reached ... and we will defend the European interest as needed. In short, all options remain on the table." Continue reading...
People dying early of cancer costs UK economy £10.3bn a year, study finds
Cancer Research UK says this is more than any other health condition and 350,000 years of productivity are lostPeople dying early of cancer costs the UK economy 10.3bn a year, more than any other health condition, a study has revealed.That is the total cost of the 350,000 years of lost productivity recorded across Britain every year because adults have died prematurely of the disease, according to Cancer Research UK (CRUK). Continue reading...
Office for National Statistics has ‘deep-seated’ problems and needs an overhaul
Devereux Review on the UK's main statistics body also says a revision of past figures may be requiredThe UK's main statistics body needs a 10m overhaul and its top role split in two after a series of management failings and errors that have plagued the organisation for several years, a scathing report has found.The Devereux Review on performance and culture of the Office for National Statistics (ONS) found deep-seated" issues that called for radical measures and warned of the likelihood that past statistics would need to be revised. Continue reading...
Bank of England governor warns of slowdown in the UK jobs market; review finds failings at ONS – as it happened
Andrew Bailey says slack appearing in labour market, after Keir Starmer tells businesses they have made a huge difference'
Growing signs of slowdown in UK jobs market, says Bank of England governor
Andrew Bailey warns of significant decline in wage growth in year ahead' as Bank prepares for interest rates decision
Chinese exports to UK rise as firms seek to avoid US tariffs
Data shows 16.1% jump as Bank of England suggests influx of cheaper goods could bear down on inflationChinese exports to the UK jumped in May, according to data from Beijing, raising the prospect of a flood of cut-price goods as firms look for alternative markets to avoid Donald Trump's tariffs.Data published by the Chinese government showed a 16.1% increase in exports to the UK in May compared with the same month last year, hitting the highest level since February 2022. Continue reading...
Post-Brexit Britain ‘too focused’ on major trade deals, ministers say
New strategy to focus on more agile' modest agreements, as opposed to wide-ranging dealsBritain has focused too much on trying to sign major trade deals with other countries, ministers have said, as they lay out the case for a big shift in post-Brexit trade policy.The change forms the heart of the government's new trade strategy, which ministers will publish on Thursday. Continue reading...
British Business Bank back in the spotlight with £10bn UK growth mandate
Louis Taylor, CEO of state-owned lender, targets investment in eight key UK sectors as he prepares defence at Covid inquiryLouis Taylor is caught between two eras. The chief executive of the British Business Bank (BBB) has spent much of his tenure attempting to revive the state-owned lender's image after a battering from the fraud-hit pandemic loan scheme under the last government, and will soon have to defend its actions at the Covid inquiry.But until then, he can focus on the BBB's gleefully landed fresh 10bn mandate linked to the centrepiece industrial strategy Labour hopes will boost a flagging economy as it nears the end of its first year in power. Continue reading...
Eurostar passengers suffer ‘nightmare’ disruption after ‘cable theft’ disrupts services; Nasdaq 100 tech share index hits record high – as it happened
Disruption between St Pancras and Gare du Nord after theft of cables at Lille leave passengers stranded
Bank governor wades into row over Reeves’ focus on fiscal rule forecasts
Andrew Bailey says OBR projections - which the chancellor uses to calculate headroom - shouldn't be over-interpreted'The Bank of England governor, Andrew Bailey, has waded into the controversy over Rachel Reeves's fiscal rules with a warning against over-interpreting" the Office for Budget Responsibility's forecasts.The chancellor announced spending cuts in her spring statement in March to rebuild headroom of 9.9bn against her fiscal rules based on projections from the OBR. Continue reading...
Bank of England governor Andrew Bailey warns Trump trade wars are creating unpredictability; UK restricts steel imports – as it happened
Bailey says the BoE doesn't know how trade wars will play out, as UK brings in new restrictions on steel imports
As Starmer unveils his 10-year plan, here’s my advice: don’t fall into the Joe Biden trap | Sam Alvis
The ex-president spent billions reforming the US economy for the long term - but the Democrats lost. Labour must learn that prices in the here and now matter too
Goldman Sachs warns Brent crude could hit $100 per barrel if strait of Hormuz is disrupted; oil dips as Trump demands lower prices – as it happened
Rolling coverage of the latest economic and financial news
US strikes on Iran could damage global growth, says IMF chief
Oil prices could rise if Iran goes ahead with threat to shut down shipping in the strait of HormuzUS strikes on Iran could damage global economic growth, the head of the International Monetary Fund has warned.Director Kristalina Georgieva told Bloomberg TV that the IMF was watching energy prices closely, warning a rise in oil prices could have a ripple effect throughout the global economy. Continue reading...
UK industrial strategy: the key points – and what’s missing?
Plan to drive growth in eight sectors through measures such as trade support and cutting energy prices
‘Billionaires’ bonanza’: Labour derides Reform plan to offer tax exemptions to wealthy
Nigel Farage defends policy to top up poorest workers from 250,000 landing fee' on rich UK newcomers
Economic policymaking needs to adapt to the climate emergency | Heather Stewart
Tackling inflation from companies raising prices during cost shocks requires more than adjusting interest ratesThe heatwave that gripped much of the UK this week was the latest sweltering reminder that the climate emergency is already making daily life more volatile.Many of the places most brutally exposed to out-of-kilter weather patterns and natural disasters are in the global south, and rightly demand solidarity from the wealthier countries responsible for most historical emissions. But the costs of the emergency are being felt everywhere. Continue reading...
‘They feel betrayed’: how Reform UK is targeting votes in Britain’s manufacturing heartlands
In the first in a series, the Guardian maps out the rise in support for Farage and how parties are targeting the UK's deindustrialised areasWhen Nigel Farage called for the nationalisation of British Steel on a visit to the Scunthorpe steelworks this spring, it was a marked change in direction for a man who had spent almost all of his political career campaigning for a smaller, Thatcherite state.Two years earlier, he had questioned why British taxpayers' money should be thrown into keeping the fires of the very same blast furnaces burning. Back in 2018 he told an interviewer: I supported Margaret Thatcher's modernisation and reforms of the economy. It was painful for some people, but it had to happen." Continue reading...
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