3 d. ago UK’s FTSE 100 share index hits record closing high despite economy shrinking in April – business live

UK economy shrank by 0.3% in April, biggest fall since October 2023, as trade with the US slumped.. but FTSE 100 ends at new record closeFull story: UK economy shrinks by 0.3% as as exports hit by Trump trade warNicholas Hyett, Investment Manager at Wealth Club, blames “a cocktail of headwinds to growth” for the 0.3% fall in UK GDP in April.Hyett says:In the very short term the change to Stamp Duty rules have put the legal and property services on ice - with legal activities down 10.2% month-on-month.New barriers to trade with the US and changes to employment costs, from a higher living wage and increased national insurance contributions, are a longer term challenge.“The 0.3% m/m fall in real GDP in April supports our view that the strength in Q1 was unsustainable. This won’t prompt the Bank of England to cut interest rates next Thursday. But it is one more piece of news pointing to another cut in August.”We still expect the Bank Rate to be maintained at 4.25% in the June meeting, t...

Economics

3 d. ago Reeves only a ‘gnat’s whisker’ from having to raise taxes in autumn, says IFS – UK politics live

Institute for Fiscal Studies says figures for projected departmental efficiencies savings from Treasury are not credibleReeves gambles on ‘renewing Britain’ to win voters’ trustRachel Reeves is now on ITV’s Good Morning Britain. Susannah Reid and Richard Madeley are interviewing her.Q: You must be disappointed about the growth figures? Continue reading...

Politics

3 d. ago Largest ever plunge in UK exports to US as Trump tariffs hurt growth; dollar hits three

UK economy shrank by 0.3% in April, biggest fall since October 2023, as trade with the US slumpedFull story: UK economy shrinks by 0.3% as as exports hit by Trump trade warNicholas Hyett, Investment Manager at Wealth Club, blames “a cocktail of headwinds to growth” for the 0.3% fall in UK GDP in April.Hyett says:In the very short term the change to Stamp Duty rules have put the legal and property services on ice - with legal activities down 10.2% month-on-month.New barriers to trade with the US and changes to employment costs, from a higher living wage and increased national insurance contributions, are a longer term challenge.“The 0.3% m/m fall in real GDP in April supports our view that the strength in Q1 was unsustainable. This won’t prompt the Bank of England to cut interest rates next Thursday. But it is one more piece of news pointing to another cut in August.”We still expect the Bank Rate to be maintained at 4.25% in the June meeting, to allow still troubling earnings growth ...

Politics

3 d. ago Government Spending Review 2025: Economy shrinks as NHS spending surges and struggling councils miss out

From a surprise economic slump and warnings of a “National Health State”, to council funding concerns, a 74 per cent house price surge, and rising Tesco sales - here are today’s top UK business stories.

Politics

3 d. ago Rachel Reeves seized her moment – whatever the future brings, Labour’s economic course is now set | Martin Kettle

The chancellor is no mere technocrat: her spending review revealed a visceral commitment to social and economic mobilityThe consensus has long been that the 2025 spending review would be a defining moment for Keir Starmer’s government. For once, the consensus proved spot-on. The government’s main priorities were set out on Wednesday in a blizzard of Commons announcements from Rachel Reeves, some economically substantive, others more for show. The upshot is that the shape of the British state, as Labour intends it, is now decided until the eve of the next election.There are further crossroads still to come, some of them major, as the years covered by the review unroll. Taxes are likely to rise, probably as soon as the autumn budget, to pay for Reeves’s big ticket boosts on Wednesday for defence, health and housing. Council tax could rise too, with possibly dramatic results. The review’s emphasis on capital spending means current spending could be squeezed again, perhaps heralding pay...

Economics

4 d. ago The Guardian view on Labour’s spending review: the chancellor tightened belts and loosened seams | Editorial

The government offers capital investment and fiscal prudence but real-terms department cuts and grand promises could strain political credibilityBrexit’s ghost haunts a Labour spending review intended to lay the foundations for a second term. Its headlines echo the twin themes of the referendum campaign: control immigration, fund the NHS. The chancellor, Rachel Reeves, said she would end the use of hotels for asylum seekers “in this parliament” saving £1bn a year, while NHS spending will rise by 3% a year. Ms Reeves framed it as a politics of security and compassion. Yet it reads as Brexit’s populist promises, filtered through Westminster orthodoxy.The risk is that this is all slogan and very little solution. The asylum savings are speculative, and the annual increase in NHS budgets is below its historical average. There are also real-terms cuts or essentially flat budgets for key departments such as transport, education and local government. The Home Office faces cuts deeper than a...

Politics

4 d. ago Labour promised people we would rebuild Britain – and that’s what we’re doing | Keir Starmer

This week’s spending review marks a new stage in the mission of national renewal, built on the foundations laid last yearKeir Starmer is the prime minister of the United KingdomThe mandate we received from the British people could not have been clearer. First, we had to stop the chaos and return Britain to economic stability. Second, we had to turn the page on Tory decline with clear Labour choices. Third, we were instructed to rebuild our country.Wednesday’s spending review turbocharged that rebuilding. It is an investment in Britain’s renewal, so working people have more money in their pocket, more pride in their community and more hope for their children’s future. It’s what people voted for. An NHS cutting waiting lists, with care closer to the community. Wealth and opportunity no longer hoarded by only a few towns and cities. Continue reading...

Politics

4 d. ago Treasury minister dismisses claims spending review will lead to autumn tax rises – UK politics live

Darren Jones says such claims are ‘incoherent’ and the government is allocating money that has already been raisedSpending review: key points at a glanceGreen party MPs and activists joined a protest outside parliament today saying the government should use the spending review to announce a wealth tax. In a post on social media, Adrian Ramsay, the party’s co-leader, said:We expect the chancellor to take another axe to public spending today: decline by design from a govt that refuses to tax wealth to properly fund our overstretched public services & support the most vulnerable. We need to invest in a secure & fairer future. #TaxExtremeWealth Continue reading...

Politics

4 d. ago Reeves pledges funds for northern rail but London left short | Spending review 2025

Reeves pledges funds for northern rail but London left short | Spending review 2025  The Guardian

Economics

4 d. ago Watch: Rachel Reeves delivers spending review as chancellor pledges to make working people ‘better off’

Watch again as Rachel Reeves delivered her much-anticipated spending review on Wednesday (11 June) as the chancellor pledged to make working people “better off”.

Economics

4 d. ago Reeves says use of hotels for asylum seekers to end ‘in this parliament’ – UK politics live

Chancellor delivers spending review, claiming asylum move will save £1bn and says health spending represents a record cash investmentSpending review: key points at a glanceGreen party MPs and activists joined a protest outside parliament today saying the government should use the spending review to announce a wealth tax. In a post on social media, Adrian Ramsay, the party’s co-leader, said:We expect the chancellor to take another axe to public spending today: decline by design from a govt that refuses to tax wealth to properly fund our overstretched public services & support the most vulnerable. We need to invest in a secure & fairer future. #TaxExtremeWealth Continue reading...

Politics

4 d. ago Spending review 2025 – live: Reeves criticised for ‘fantasy’ plan as economists warn tax hikes ‘very likely’

Chancellor Rachel Reeves insists she will never have to repeat last year’s Autumn Budget, when tax rises were announced

Events

4 d. ago Spending review: Reeves vows to ‘renew Britain’ with big rises for NHS, housing and defence

Chancellor pledges to end spending on asylum hotels, as she contrasts Labour investment with Tory austerityUK politics live – latest updatesSpending review 2025: key points at a glanceFive charts underpinning Rachel Reeves’s decisionsRachel Reeves has pledged to “renew Britain” with a spending review prioritising health, defence and more than £100bn for long-term capital projects, despite leaving some key areas facing a tough squeeze on funding.In a speech to the Commons setting out Labour’s priorities up to the next general election, the chancellor said her investment programme would be felt in all corners of the country, while decrying austerity as a “destructive choice”. Continue reading...

Politics

4 d. ago Spending review 2025: Key takeaways after Rachel Reeves announces government budgets

The Independent looks at what is in the spending review, and, crucially, what is not

Politics

4 d. ago Spending Review 2025 LIVE: Rachel Reeves pledges billions more for NHS and social housing... but Met police cash row looms

Chancellor announces extra £29 billion per year for the NHS and vows to end use of asylum seeker hotels

Economics

4 d. ago Spending review 2025 – live: Reeves vows to end asylum hotels by next election in £600bn budget plan

Chancellor promises review will boost ‘Britain’s renewal’

Economics

4 d. ago Spending review 2025: What’s in and what’s not after Rachel Reeves announces government budgets

The Independent looks at what is in the spending review, and, crucially, what is not

Politics

4 d. ago Reeves says use of hotels for asylum seekers to end ‘in this parliament’ and NHS spending to rise 3% a year – UK politics live

Chancellor claims asylum move will save £1bn and says health spending represents a record cash investmentSpending review: key points at a glanceGreen party MPs and activists staged a protest outside parliament today saying the government should use the spending review to announce a wealth tax. In a post on social media, Adrian Ramsay, the party’s co-leader, said:We expect the Chancellor to take another axe to public spending today: decline by design from a govt that refuses to tax wealth to properly fund our overstretched public services & support the most vulnerable. We need to invest in a secure & fairer future. #TaxExtremeWealthSenior SNP figures held a secret meeting on Monday night to discuss removing John Swinney as party leader, The Herald has learned, following last week’s defeat in the Hamilton, Larkhall and Stonehouse byelection.One of the 25 attendees said the first minister had two weeks to come up with a new strategy on independence — or risk facing a leadership...

Politics

4 d. ago Spending Review 2025 LIVE: Rachel Reeves sets out spending plans with 'biggest cash injection in social housing in 50 years'

Chancellor is laying out the Labour government’s day-to-day and capital spending plans

Economics

4 d. ago Watch live: Rachel Reeves delivers spending review as chancellor pledges to make working people ‘better off’

Watch live: Rachel Reeves delivers her much-anticipated spending review on Wednesday (11 June) as the chancellor pledges to make working people “better off”.

Economics