Chancellor to announce raft of deregulation changes as City regulators move to pare back transparency rulesRachel Reeves will claim that cutting red tape for City firms will have trickle-down benefits for households across Britain, as she tries to drum up support for a new financial services strategy.A raft of regulatory reforms are due to be announced by the chancellor on Tuesday, in what the Treasury says will be the biggest financial regulation reforms in a decade". It will come before her Mansion House address to City bosses during a dinner at Guildhall in London on Tuesday evening. Continue reading...

Retail body says sales up by 3.1% year on year in June after drop in May, but Barclays finds shoppers are cautiousRetail sales in the UK recovered in June as hot weather drove spending on electric fans, sports and leisure equipment, but households remained under pressure from high living costs.The snapshot from the British Retail Consortium (BRC) showed total sales grew by 3.1% year on year in June, after a sharp drop in May, as record-breaking temperatures and promotional offers encouraged consumers to spend. Continue reading...

Energy secretary says it is not clear if opposition have any net zero policyAs Rowena Mason revealed recently, No 10 has issued guidance that in effect bans civil servants from any level of speaking at events where journalists are present.Today the Times has published a letter signed by almost 30 experts - including former senior officials, thinktank leaders, academics and union leader - saying this policy is a mistake because it is having a chilling effect on public discussion" and that it should be withdrawn. They say:The government's new guidance that prevents public officials from participating properly in public or stakeholder events is a mistake. Effective government relies on public servants, whose salaries are paid by the taxpayer, hearing directly from businesses, charities, academics and citizens to help them make better policy. They should be able to explain government activity to those same groups. Continue reading...

EU trade commissioner says we want to use every minute until 1 August to find a negotiated solution'Donald Trump's threatened 30% tariffs on European goods would eliminate transatlantic trade, the EU's chief negotiator with the US has said, while voicing hope that a deal remained possible.Maro efovi, the EU trade commissioner, said a tariff of 30% or more would have a huge impact, making it almost impossible to continue" current transatlantic trade, which is worth 4.4bn (3.8bn) a day. Continue reading...

Rolling coverage of the latest economic and financial news, as Andrew Bailey insists: I think the path [for interest rates] is down".A Bank of England interest rate cut next month is looking more likely, according to the latest city pricing.The money markets are indicating there's now an 85% chance that the Bank cuts interest rates at its next meeting on 7 August, up from 76% at the end of last week.Friday's disappointing GDP figures, combined with these weak jobs figures boost the case for the Bank of England to cut interest rates in August. The central bank's governor Andrew Bailey told The Times slack' was opening up in the labour market, and he believes the path is downward' for interest rates.All eyes are on Wednesday's inflation report with CPI expected to remain at remain around 3.4% in June, roughly unchanged for the third consecutive month." Continue reading...

Slack' opening up in UK economy as higher taxes squeeze employers, says Andrew Bailey

The expanding group of emerging powers is building new rules, new tools and a shared industrial future - with or without Donald TrumpThe Brics summit in Brazil last week revealed a loose alliance of emerging powers becoming more complex - and perhaps more consequential. For Brics, heft matters. It now counts 11 member states - including Indonesia, which joined this year - representing half the world's population and 40% of the global economy, outpacing the G7 by $20tn.Yet its size hides its contradictions. The grouping's call for more inclusive global institutions sounds welcome, but there is a preponderance of autocracies within its own ranks. Brics is right that international law should be upheld in Middle Eastern conflicts. But it climbs down from its moral pedestal by condemning Ukraine's strikes on Russian infrastructure - while staying silent on Moscow's relentless attacks on civilians. Continue reading...

With the UK still shaking off the psychological side-effects of Covid, Rachel Reeves might want to broaden her aimsEvery parent who battled their way through home schooling during the long months of lockdown, and every vulnerable person forced to shield themselves away, can have had little doubt that the Covid pandemic was an unhappy time.But research by the non-profit consultancy Pro Bono Economics (PBE), suggests that the nation's wellbeing has never fully recovered from the plunge it took in mid-2020. Continue reading...

Country's economic woes remain main determinant to work opportunities but technological change is also creeping in

Exclusive: Announcement expected as part of series of changes outlined in chancellor's Mansion House speechThe chancellor, Rachel Reeves, is expected to trigger a review of the auto-enrolment pension scheme next week in a move that could ultimately force employers to raise their contributions to staff retirement pots.The announcement could come as early as Monday, forming a key part of the Labour government's pensions review, industry sources told the Guardian. Continue reading...

Experts suspect front loading' of activity may mask deeper impact of tariffs on the US economyThere has been no change to this date, and there will be no change," Donald Trump said on his Truth Social platform this week. All money will be due and payable starting AUGUST 1, 2025 - no extensions will be granted."There had, in fact, been a change. The 90-day pause" on the highest tariffs threatened by Trump on his so-called liberation day" in April elapsed on Wednesday. But with just three trade agreements in place, instead of the 300 once promised, the White House had switched one deadline for another. Continue reading...

Chancellor's Mansion House speech to cite opportunity' in attempt to shrug off anaemic economic performance

Latest economic report shows UK GDP fell by 0.1% in May, following 0.3% fall in April.

Depressing data comes as Rachel Reeves and her team were daring to hope business confidence was recovering

Trader confidence that Trump will not act on tariff threats sends London Stock Exchange index to 8,979 points

Rolling coverage of the latest economic and financial news, as shares in London end the day at a new closing highThe Footsie' is continuing to hit new highs this morning!It's now up almost 1% at 8952 points, up 85 points today. Miners such as Anglo American (+4.6%), Glencore (+3.5%) and Antofagasta (+2.8%) are driving it higher.Cindy is an outstanding and inspirational business leader with extensive experience at some of the world's most recognised companies and a track record of growing large-scale businesses. She has led multi-billion-dollar operations across the UK, EMEA and globally, built enduring client relationships and delivered growth in both enterprise and consumer environments.Cindy has supported the digital transformation of large enterprises around the world - including embracing AI to create new customer experiences, business models and revenue streams. Her expertise in this landscape will be hugely valuable to WPP as the industry navigates fundamental changes and macroeconomic uncertainty. Cindy's appointment follows a thorough selection process that considered both internal and external candidates. As an existing Board member she understands our business and the needs of our clients, and we look forward to working with her in her new role as CEO. Continue reading...

After changes to the welfare reform bill failed to save money, the millionaire Dale Vince thinks it's time for people like him to contribute more to the public finances. Arun Advani explains how a wealth tax could work and if it's time for Labour to introduce oneAfter cuts in Labour's proposed welfare reform bill caused uproar, many of the party's supporters insist it's time for a different approach. Rather than cutting the benefits bill or public spending, why not tax the wealthiest more? It's a question Keir Starmer was asked in PMQs, and he replied by saying it wasn't possible to tax our way to growth".The millionaire Dale Vince disagrees. A former new-age traveller who made his money in green energy and has donated to Just Stop Oil, he is part of the Patriotic Millionaires organisation who think it is high time people like them are asked to increase their contributions. There's a whole bunch of us. We're all saying the same thing, that we can afford to pay more tax. Rich people should pay more tax, and we can use that money to reduce inequality in our country." Continue reading...

Rolling coverage of the latest economic and financial news, as BoE recommends banks can issue more high loan-to-income level loans

Move hopes to push lenders to offer more high loan-to-income mortgages and help 36,000 buyers on to housing ladder

Latest escalation in trade war is expected to push up costs across key parts of US economyCopper prices hit a record high in the US after Donald Trump announced he would impose a 50% tariff on the industrial metal, in the latest escalation of his trade war.Trump said before a cabinet meeting on Tuesday: Today we're doing copper," proposing a 50% tariff rate for imports. He also threatened to impose a 200% border tax on pharmaceuticals but in a year or a year and a half's time. Continue reading...

Andrew Hauser says it is puzzling' investors not more concerned by tectonic economic shifts emanating from Washington

A marketing campaign is all very well but if the LSE's fortunes are to turn, the real oomph needs to come from the chancellor

Readers respond to Randeep Ramesh's article on the flaws in Labour's approach to the economyRandeep Ramesh certainly tackles a worthwhile and complex modern economic policy conundrum (Labour could find the money it wants without raising taxes. This is austerity by amnesia, 29 June). But his opinion that the Bank of England should simply hand over the cash proceeds from quantitative tightening (QT) and that central bank independence is somehow partly responsible for Britain's economic woes, are misguided.Central bank independence was hard-won and has largely proven a resounding success in the developed world for more than 30 years. Allowing a central bank to hand over substantial moneys from QT revenues to the Treasury would be a recipe for disaster, against the spirit if not the letter of the law, as well as a dangerous precedent. Continue reading...

OBR report warns that UK public finances are in a relatively vulnerable position, as Archie Norman updates MPs about cyber-attack

Future of 100bn UK-France trade relationship in focus amid attempt to show unity in face of Trump tariffsAs Keir Starmer welcomes Emmanuel Macron to Britain for a landmark state visit aimed at building closer ties between London and Paris, the future of the nations' 100bn trading relationship will be drawn sharply into focus.In the three days of talks, concluding with the 37th Franco-British summit on Thursday, much of the attention will be on cross-Channel issues, including migration, amid expectations for a new deal on tackling small boat crossings. However, cooperation on business, trade, defence and security in the shifting global landscape will also feature prominently. Continue reading...

Office for Budget Responsibility warns national debt on course to hit 270% of GDP by 2070 amid volatility

The shifting timeline of Trump's tariffs, the most significant US tariff increase in nearly a century, has roiled global markets and caused widespread confusion

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...

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...

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 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...

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...

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...

Charlie Bean says slim margin of 10bn means chancellor has to neurotically fine-tune taxes to control OBR forecast'

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

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...

Rolling coverage of the latest economic and financial news, as economists predict that Wednesday's sell-off has strengthened Reeves's position

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...

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...

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...

Cost of government borrowing leaps as investors take fright from PMQs, before falling back as No 10 says chancellor staying in post

With 6.25bn in planned savings now shelved, the government faces awkward choices on how to plug gap

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...

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...

Rolling coverage of the latest economic and financial news

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...

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...

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-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...

Concerns over conduct of bosses at Lincolnshire site, with ministers saying workers had been badly let down'