Theresa May, Alok Sharma, business and church leaders say plan would harm UK and not even Margaret Thatcher would have countenanced itThe former prime minister Theresa May has condemned a promise made by Kemi Badenoch to repeal the Climate Change Act if the Tories win the next general election, calling the plans a catastrophic mistake".She joined other leading Tories, business groups, scientists and the Church of England in attacking the Conservative leader's announcement, which would remove the requirement for governments to set carbon budgets" laying out how far greenhouse gas emissions will be cut every five years, up to 2050. Continue reading...
Employees wonder if the shutdown will leave them out of work temporarily or set stage for permanent terminationAn estimated 750,000 federal employees are furloughed as a result of the first federal government shutdown since 2018.Many have been on edge for months", according to James Kirwan, who works as a labor attorney inside a government agency. Now the Trump administration is threatening to implement another sweeping wave of cuts to their ranks. Continue reading...
Donald Trump wanted EJ Antoni to head agency, but critics said he was too partisan and exceedingly unqualified'Economists are expressing relief that the White House withdrew its nomination for head of the Bureau of Labor Statistics (BLS), the government agency that reports key economic data.In August, Donald Trump nominated EJ Antoni, chief economist at the conservative Heritage Foundation and a co-author of Project 2025, to replace Erika McEntarfer, whom Trump fired after the bureau released revisions to its monthly jobs report that showed weak job growth over the summer. Continue reading...
Report says changes to occupational mix since release of ChatGPT in 2022 sluggish' compared with 1940s and 50sThe US jobs market has yet to experience serious disruption from breakthroughs in artificial intelligence, according to an academic study.Analysis by Yale University's Budget Lab found there had been no discernible disruption" since ChatGPT's release in November 2022. Continue reading...
Losses narrow to nearly 16m for 48 weeks to 4 January 2025 but group has not made pre-tax profit since 2019Selfridges has blamed a slump in the number of international tourists shopping for luxury goods in the UK and weaker consumer confidence for a fall in annual sales, as the retailer racked up losses for a fifth year in a row.The upmarket department store chain reported a 7% decline in sales in the 48 weeks to 4 January 2025 to 775m compared with 835m recorded over the 53 weeks of its previous year. Continue reading...
Survey of bosses shows energy prices also a concern, as Bank policymakers warn inflation may take longer to dropBusiness confidence fell to its lowest level on record in September, driven by concerns over soaring costs, according to a survey of bosses.Topping the unease were labour costs, with energy prices also weighing on the outlook. Continue reading...
by Julia Kollewe (now) and Graeme Wearden (earlier) on (#70DDK)
Insolvency firm running Lindsey oil refinery announces job losses after collapse of parent company Prax GroupAbout 125 jobs are to go at the Lindsey oil refinery in north Lincolnshire, following the collapse of its parent company, the energy conglomerate Prax Group.However, there are at least two bids to buy and operate the site as a going concern with a full workforce, according to the Unite union.We can confirm that 125 Prax Lindsey Oil Refinery employees have been informed that their positions will be made redundant at the end of October. A further 255 employees will remain at the site.This decision was not taken lightly and follows a thorough review of all aspects of the business, following its insolvency.The government has been tin eared to the plight of workers at the second oil refinery facing closure in less than a year. This makes a mockery of government promises to protect workers and its plan for net zero.The government had promised to ensure that job focused bids would be the priority at Lindsey, yet prior to bids even being considered, they are already issuing redundancy notices. Continue reading...
Looming funding cuts to the US food assistance program come as food prices continue to rise under Trump's administrationAmericans are bracing for the impact of the largest cuts to the government's food assistance program for low-income people in US history that have begun to take effect as a result of Donald Trump's One Big Beautiful Bill Act.Effective 1 October, the beginning of fiscal year 2026, funding for Snap-Ed, part of the Supplemental Nutrition Assistance Program (Snap) that provided funding for food banks across the US, is being eliminated. The cuts are part of the sweeping spending bill Trump signed in July. Continue reading...
While Javier Milei's shock therapy to tame inflation has won support from Washington and the IMF, ordinary Argentinians seem less impressedWe're backing him 100%. We think he's done a fantastic job. Like us, he inherited a mess." Donald Trump gave his enthusiastic endorsement to Javier Milei's radical economic experiment when the pair met in New York last week.The US has declared itself ready to offer more than rhetorical support to the chainsaw-wielding Argentinian president in the coming days, as Buenos Aires stands on the brink of a fresh financial crisis. Continue reading...
Federal workers say they have little choice but to depart, with 100,000 leaving under deferred resignation programThe Trump administration is set to oversee the largest mass resignation in US history on Tuesday, with more than 100,000 federal workers set to formally quit as part of the latest wave of its deferred resignation program.With Congress facing a deadline of Tuesday to authorize more funding or spark a government shutdown, the White House has also ordered federal agencies to draw up plans for large-scale firings of workers if the partisan fight fails to yield a deal. Continue reading...
by Richard Partington Senior economics correspondent on (#70BZJ)
After being promised last year they could partner' with party on policy, many executives are asking what happenedLast year Keir Starmer had an invitation for bosses at Labour's first party conference in power in 15 years: You can have your finger prints on our policy ... you can shape it." Fresh from love-bombing corporate Britain before his election landslide, the prime minister told a sold-out business day" audience at its Liverpool get-together that he wanted his new government to partner" with industry.You have the right to badger us ... Our decisions will be better if we are talking to you and taking into account what you say," Starmer said. Continue reading...
Retailers stock up on countdown gifts as Britain's enthusiasm for (and spending on) spooky holiday growsIt is the stuff of nightmares if you think Christmas is too commercial: the Halloween Advent calendar is here.In this version of advent the countdown spans 13 (unlucky for some) to 31 nights of fright" and is meted out in everything from horror dolls to KPop Demon Hunter keyrings. Continue reading...
President places new duties on cabinets, vanities and sofas but national-security justification prompts puzzlementDonald Trump has often cited national security when announcing new tariffs. America and its military can not run without steel and computer chips. The nation's food and drug supply must be protected. But have you considered the security implications of your kitchen sink?Announcing his latest wave of tariffs on goods from overseas - a 50% levy on kitchen cabinets and bathroom vanities, and 30% on upholstered furniture, to be enforced next month - Trump once again cited the top priority of any president. Continue reading...
Rate-setter Swati Dhingra denies high inflation is a particularly British problem' and says short-term factors are to blameThe causes of the UK's inflation spike will fade" and policymakers should avoid being overly cautious" about cutting interest rates, a Bank of England rate-setter has argued.Swati Dhingra, a trade expert and external member of the Bank's monetary policy committee (MPC), rejected the idea that inflation is a particularly British problem". Continue reading...
by Lisa O’Carroll and Graeme Wearden on (#70AY8)
Britain will actively engage' with US over possible 100% duties, with truck and cabinet makers also in firing lineDonald Trump's threat to impose new tariffs from next week on branded drugs, trucks and kitchen cabinets has raised fresh concerns for the UK pharmaceutical industry, which remains excluded from Keir Starmer's US tariff deal agreed five months ago.Trump promised the UK preferential treatment" on pharmaceutical tariffs in May but has yet to deliver on his pledge. Continue reading...
Rachel Reeves may have to find up to 30bn in tax rises or spending cuts if forecaster revisits expectationsTreasury policymakers frustrated by the politically damaging timing of a downgrade to UK productivity forecasts by the Office for Budget Responsibility (OBR) are pressing the watchdog to score the benefits of Labour's pro-growth plans.Rachel Reeves faces the prospect of having to find up to 30bn in tax rises or spending cuts in her 26 November budget if, as expected, the OBR cuts its forecast for future productivity growth to match the consensus of other experts. Continue reading...
by Phillip Inman Senior economics writer on (#70A6Z)
Approach would risk fresh bond market crisis, say investors, amid speculation Greater Manchester mayor is seeking Westminster returnA call to end the UK's dependence on foreign lenders by Andy Burnham has been criticised by City investors who said such an approach would risk another bond market crisis.The mayor of Greater Manchester said the UK should not be in hock" to bond markets as he outlined measures that he believed a Labour government should pursue, including a big council housebuilding programme and the nationalisation of utilities paid for with a rise in taxes on the higher paid, a charge on expensive London homes and 40bn of extra borrowing. Continue reading...
It's more complicated than that, says Rosa Anderson in response to an article by Phillip Inman, while Peter Mather says boomers are being stereotyped, and Moira Sykes says the article picks the wrong targetOh no, not again. Guardian readers deserve better than Phillip Inman's tedious and hateful boomer-bashing (Boomers think their wealth came from wise choices - this myth needs busting, 20 September). This summer we've had his tax plans (tax boomers more), his suggestions for dealing with the housing crisis (kick boomers out of their homes), his idea for boomer national service" built around volunteering, and now his attacks on older people's occupational pensions. Goodness, Phillip, you really can't let this obsession with boomers go, can you?Economic inequalities - and with them social and health inequalities - are getting worse, and while Inman tells us with monotonous regularity that it's the boomers wot dun it", it is in fact a little more complicated. Generation is a far less important factor than gender, race, disability and, above all, class, and if we don't start looking at intra-generational inequalities we are going nowhere - not least because wealthy parents raise wealthy children, and support them financially to a value about 26 times more than poorer parents in the same generation, according to the Institute for Fiscal Studies. Continue reading...
The longer the period between crises, the greater the complacency. That complacency is pushing share prices ever-higherUS job creation has stalled and, despite the curbs on migration, unemployment is rising. Tariffs are pushing up the cost of imports. And Donald Trump is at war with the governor of his own central bank and wants him out.But traders on Wall Street are not bothered by the fact that inflation is above the target or that growth is slowing. Share prices are testing new record levels on an almost daily basis. Jerome Powell, the man Trump wants to be rid of, says stocks are fairly highly valued", which is an understatement if ever there was one. By historical standards, stocks are extremely highly valued. There is trouble - perhaps big trouble - ahead.Larry Elliott is a Guardian columnist Continue reading...
What we are witnessing right now is the rise of two Americas. One for the billionaire class. And one for everybody elseLet's take a deep breath and, for one moment, forget about Donald Trump, Jimmy Kimmel, the UN, Charlie Kirk, Gaza, a government shutdown and the other crises that we face.Let's talk instead about the reality which the corporate-controlled media and the corporate-controlled political system don't talk about very much. Continue reading...
Amid battle over independence, Fed chair pushes back against claim that central bank lets politics drive decisionsThe US Federal Reserve chair, Jerome Powell, pushed back hard against claims the central bank allows politics to drive decisions, in the midst of an extraordinary battle over its independence.Donald Trump, who is seeking to increase his administration's control over the Fed, has branded Powell a very political guy" after he declined to bow to the president's public demands for drastically lower interest rates. Continue reading...
International body warns British rate will be higher than that in US, despite effects of Trump tariffsThe UK is expected to suffer the highest inflation among G7 nations this year, the Organisation for Economic Co-operation and Development has said.Amid resurgent food prices, with some retailers blaming the UK government's 25bn-a-year increase in employer national insurance contributions (NICs) for pushing up costs, the OECD predicts that inflation in the UK will average 3.5% in 2025. Continue reading...
Stephen Miran says rates should be below 3% by end of year and dismisses fears of US president's tariffs stoking inflationStephen Miran, Donald Trump's new appointee on the Federal Reserve's interest-rate-setting board, has doubled down on his calls for the central bank to more aggressively cut interest rates.Last week, the Fed cut interest rates by a quarter point, bringing rates down to a range of 4% to 4.25% - the lowest it's been since early 2023. Out of 12 voting board members, Miran was the only one to vote against the crowd. He wanted a half-point cut, not a quarter-point cut. Continue reading...
Robert Thomas responds to an article about family firms that will be hit by changes to the rules for inheritance taxI am 83 next birthday and, so that my descendants escape the potential inheritance tax bill of 6m-plus, I'll have to survive until October 2032 (Our plans could be derailed': family firms say Labour tax rises will force fire sales, 16 September). My firm is property-based. In the event of an earlier demise, sites will require disposal within six months, cruelly affecting investment, growthand employment.In my case the tax has turned into an ageist lottery. At the moment plans are afoot to rig up a life-support unit at home with an instruction to pull the plug on the appointed day, seven years hence. Any suggestions for relief, Rachel?
Qualified candidates struggle in a sluggish market due to Trump tariffs, AI screening and vanishing entry-level rolesWhen Philip Kowalski lost his job earlier this year as a USAID contractor working on aid to Ukraine due to Doge cuts, he was confident in his credentials: a master's degree from the University of London and years of hands-on experience managing American foreign aid contracts that he thought would help him land on his feet.Instead, he found himself adrift in what he calls a massive pool of unemployed people who are highly qualified all competing for the same tiny pool of available jobs". Continue reading...
TBI says poll data threatens Keir Starmer's ambition for UK to become artificial intelligence superpower'Nearly twice as many Britons view artificial intelligence as a risk to the economy than regard it as an opportunity, according to Tony Blair's thinktank.The Tony Blair Institute warned that the poll findings threatened Keir Starmer's ambition for the UK to become an AI superpower" and urged the government to convince the public of the technology's benefits. Continue reading...
LVMH owner Bernard Arnault, who could take 1bn hit, says proposed 2% levy aims to destroy liberal economy'Europe's richest man, the luxury goods magnate Bernard Arnault, has said that a wealth tax that could cost him more than 1bn (817m) would be deadly for France's economy.The French founder of LVMH Moet Hennessy Louis Vuitton said in a statement to the Sunday Times that calls for a 2% wealth tax on all assets aims to destroy the liberal economy, the only one that works for the good of all". Continue reading...
Economic benefits of generative AI, which may take time to show, put ahead of impact of datacentres on energy and waterJensen Huang, the boss of the chipmaker Nvidia, had some advice for UK ministers last week as they signed a multibillion-pound tech deal with the US: burn more gas.I've every confidence that the UK will realise that it takes energy to grow new industries," he said. Sustainable power like nuclear and wind and of course all of that solar is all going to contribute. But I'm also hoping that gas turbines can also contribute." Continue reading...
If Reeves swipes some of the huge gains amassed from property and pensions, the lucky generation cannot argue - but willThe most infamous example of middle-income baby boomers seeking retribution for the loss of their accumulated wealth occurred in Germany in 2009, when a retired builder and his pensioner accomplice took their financial adviser hostage after more than 2m of stock market investments had crashed.In the UK, the chancellor, Rachel Reeves, is unlikely to face the same prospect if she swipes some of the gains baby boomer's have amassed from property and pensions in her November budget, but those affected are still going to seek their revenge. Continue reading...
Rolling coverage of the latest economic and financial news, as August borrowing hits highest level since 2020August's jump in borrowing means there are difficult fiscal decisions" on the horizon for Rachel Reeves to tackle, says the EY ITEM Club.Matt Swannell, chief economic advisor to the EY ITEM Club, explains:In August, the Government borrowed 18bn, the largest August deficit in five years and 5.5bn more than the OBR expected. As the Budget approaches, this leaves the UK finances in a fragile position. So far this fiscal year, the Government has borrowed 83.8bn, outstripping the OBR's 72.4bn forecast.However, the Government's performance against its primary fiscal rule will be judged by the progress made on the current budget, which accounts for how much it borrows to cover day-to-day spending. In August, the current budget deficit was 13.6bn, up from 9.6bn at the same time last year. Across the fiscal year-to-date, the current budget is in deficit by 62bn, well above the OBR's March forecast of 46.6bn. The OBR expects a marked reduction in current borrowing in the latter half of this fiscal year, so it looks like it will only become more difficult to carefully manage the day-to-day finances from here."The pound has sunk on this data, and is testing support at $1.3500, it is the second worst performing currency in the G10 FX space today, and is lower by 0.33% vs. the USD. The UK's bond market is extremely fragile, 10-year and 30-year yields rose sharply on Thursday, although global long end yields were higher, the UK was the weakest performer across Europe and the US.UK bond yields could rise further on this news, especially as the Bank of England is maintaining its careful and gradual' approach to loosening monetary policy. Although the BOE has reduced the amount of bonds that it is offloading from its balance sheet, especially long end bonds, they are still shrinking their balance sheet albeit at a slower pace. Thus, the BOE cannot be relied on to relieve pressure on the long end of the Uk Gilt curve. Continue reading...
by Richard Partington Senior economics correspondent on (#705FG)
Food inflation pushes consumers to the limits of what they are willing to spend, costing retailers salesWhen George Osborne came unstuck with his pastygate" budget 13 years ago, a Greggs sausage roll cost 66p: a price from another planet for consumers in 2025.The Conservative chancellor's plan to impose VAT on hot food - including Cornish pasties and sausage rolls - would have imposed a 20% price rise. The backlash - led in part by the Newcastle-based bakery chain - was swift: Osborne, branded posh and out of touch, was forced into an embarrassing U-turn. Continue reading...
The LFW organiser's new boss, Laura Weir, wants to embed fashion into government thinking and lure back famous brandsThe Prince and Princess of Wales's private garden at Kensington Palace has been commandeered by Burberry, which is building a tent the size of a minor airport for its show on Monday. The mid-century fortress by Eero Saarinen that once housed London's American embassy, recently reopened as a luxury hotel, is dressing the ballroom for the 20th anniversary show by Roksanda on Saturday night.But the biggest transformation of London fashion week is happening not on the catwalk but in the boardroom, where the British Fashion Council (BFC) is under the new leadership of Laura Weir as CEO, a former newspaper magazine editor and Vogue fashion editor. Continue reading...
by Richard Partington Senior economics correspondent on (#7052Z)
Worsening public finances mean Rachel Reeves will almost certainly announce tax rises in November budgetUK government borrowing rose to a five-year high in August, official figures show, fuelling growing expectations for Rachel Reeves to raise taxes at the autumn budget.Figures from the Office for National Statistics (ONS) showed public sector net borrowing - the difference between public spending and income - rose to 18bn in August, 3.5bn more than in the same month a year earlier. Continue reading...
by Richard Partington Senior economics correspondent on (#704WN)
The Bank of England's disposal of the bonds it bought after the 2008 financial crisis is being slowed downThe Bank of England has announced that it will scale back its multibillion-pound quantitative tightening" programme.The process is significant for the UK economy and the public finances. But how will it work? Continue reading...
Hearing on 5 November sets up major test of the president's use of executive power to drive his economic agendaThe US supreme court will hear oral arguments on the legality of Donald Trump's sweeping global tariffs on 5 November, a crucial hearing on the president's aggressive economic agenda.The court announced earlier this month it would hear the case after a lower appeals court ruled that the US president had overstepped his authority by using a federal law meant for emergencies to impose most of his broad tariffs on the world. Continue reading...
by Joanna Partridge and Kalyeena Makortoff on (#7047Q)
Retailer says economic outlook clouded by fall in job opportunities and government overspendingBosses at the clothing and homeware chain Next are forecasting years of anaemic" growth across the UK, with the retailer claiming that regulation, government spending and higher taxes will hurt jobs and productivity.The FTSE 100 company, which is headed by the Conservative peer Simon Wolfson, said that while it did not believe the economy was heading towards a cliff edge", the weakening outlook gave the company another reason to be cautious". Continue reading...
Decision on government debt holdings could reduce market jitters and Treasury's borrowing costsThe Bank of England has left interest rates on hold at 4% and will slow the pace of its quantitative tightening" programme in the year ahead to avoid distorting jittery government bond markets.The central bank's nine-member monetary policy committee voted 7-2 to leave borrowing costs unchanged, after five cuts since summer 2024, including a reduction last month. Continue reading...
Pensions triple lock should also go, says Ruth Curtice, a former civil servant who says it's nice to be allowed to say what you think'She clearly has to fix the problem. I think it's one thing to come back twice. We don't want to be here a third time." Bluntness served Ruth Curtice well in her past life as a senior Treasury official. These days, she deploys it publicly, as chief executive of the Resolution Foundation - urging Rachel Reeves to think the unthinkable before November's crunch budget.In the course of half an hour's conversation in her bright white Westminster office, Curtice says the chancellor must be ready to ditch Labour's manifesto tax pledges, scrap the pensions triple lock, lift the two-child limit on benefits - and forget the idea that a new wealth tax is the answer to anything. Continue reading...
by Daniel Boffey, Eleni Courea and Michael Savage on (#703ZR)
Prime minister seeks to make best of difficult state visit by US president with package of commitments by US firmsKeir Starmer has sought to navigate a politically treacherous state visit by Donald Trump with an announcement of 150bn of US investment in the UK, as the president was kept safely within the confines of Windsor Castle.As thousands of protesters voiced their anger in London at a Stop Trump Coalition protest, the US president was escorted by the king and queen through a first day that ended in a state banquet but kept him out of reach of his critics. Continue reading...
Central bank moves to set rates at range between 4 and 4.25% but decision unlikely to satisfy Donald TrumpThe US Federal Reserve cut interest rates on Wednesday, its first rate cut since December, as the central bank moved to stabilize a wobbling labor market even as Donald Trump's tariffs continue to push up prices.Rates are now at a range of 4% to 4.25% - the lowest since November 2022. But the decision is unlikely to satisfy Trump, who has lambasted the Fed for acting too late" and called for a far bigger cut. Continue reading...
Food prices rise at fastest rate since January 2024 with vegetables, milk, cheese and fish going up; US Federal Reserve widely expected to cut rates later todayThe pound is little changed versus the dollar following the inflation data, at $1.3636, but hovering at a two-month high.Victoria Scholar, head of investment at the investing platform interactive investor, said:In light of today's data, it still looks like the Bank of England is on track to keep interest rates unchanged at tomorrow's decision meeting. While inflation is clearly stuck significantly higher than target, there was nothing too surprising in this inflation report - CPI came in line with forecasts, and consequently there wasn't much of a reaction from sterling.Elevated inflation, notably higher than the 2% target makes it harder for the central bank to continue on its monetary loosening path, raising the likelihood of a higher-for-longer interest rate environment which could have negative effects on borrowing and the housing market. Continue reading...