9 h. ago The six starkest warnings from OBR as report lays bare the perilous state of UK public finances

Here are the most stark warnings in the Office for Budget Responsibility’s report

Events

9 h. ago Public finances on ‘unsustainable’ path due to spending promises, says OBR

Richard Hughes told a briefing in Liverpool that the projected rise in state pension spending would contributed to growing UK national debt.

Economics

10 h. ago UK public finances on ‘unsustainable’ path amid growing climate, debt and pension costs

Office for Budget Responsibility warns national debt on course to hit 270% of GDP by 2070 amid volatilityBusiness live – latest updatesThe UK’s public finances are on an unsustainable long-term trajectory, given the growing costs of state pensions and the mounting climate emergency, the Office for Budget Responsibility has warned.Richard Hughes, who chairs the budget watchdog, said government debt would rise to 270% of GDP by 2070 – up from less than 100% today – if current policies were left unchanged. Continue reading...

Economics

11 h. ago OBR: Vulnerable UK faces 'daunting' threats to stability of public finances after welfare climbdown

Successive governments’ efforts to put the UK public finances have met with only “limited and temporary success” says watchdog

Economics

12 h. ago Risks from climate, pensions and bonds leave UK public finances ‘vulnerable’

Office for Budget Responsibility warns national debt on course to hit 270% of GDP by 2070 amid volatilityBusiness live – latest updatesThe UK’s public finances are in a “relatively vulnerable position”, with pensions costs, climate change and volatile bond markets all posing significant risks, the independent Office for Budget Responsibility has warned.In its annual assessment of the long-term threats to the government’s fiscal position, the OBR points out that the UK has “the sixth-highest debt, fifth-highest deficit and third-highest borrowing costs among 36 advanced economies”. Continue reading...

Economics

12 h. ago UK public finances in ‘vulnerable position’ after Starmer’s U

The OBR’s warning piles fresh pressure on Rachel Reeves ahead of the autumn Budget

Politics

13 h. ago Deadly floods could be new normal as Trump guts federal agencies, experts warn

Cuts and chaos instigated by Trump come as threat from extreme weather grows due to human-caused climate crisisThe deadly Texas floods could signal a new norm in the US, as Donald Trump and his allies dismantle crucial federal agencies that help states prepare and respond to extreme weather and other hazards, experts warn.More than 100 are dead and dozens more remain missing after flash floods in the parched area known as Texas Hill Country swept away entire holiday camps and homes on Friday night – in what appears to have been another unremarkable storm that stalled before dumping huge quantities of rain over a short period of time, a phenomena that has becoming increasingly common as the planet warms. Continue reading...

Events

35 h. ago Panic over Labour 'wealth tax' to fill £30bn black hole in government finances

The prospect of a charge on the assets of the well-off has been mooted as the Chancellor scrambles to fill a potential £30billion black hole in the public finances.

Economics

3 d. ago Even poorest OAPs face paying income tax in new stealth raid on state pension

Millions of Britain's poorest pensioners face being dragged into an 'old-age tax trap' as Chancellor Rachel Reeves desperately attempts to fill a growing black hole in the public finances.

Economics

4 d. ago Jeremy Corbyn says ‘discussions are ongoing’ after Zarah Sultana claimed she would ‘co

Sultana announced on Thursday she was quitting Labour to join Jeremy Corbyn’s Independent AllianceMy colleague Lauren Almeida, who is running the Guardian’s business live blog, has shared the following:Rachel Reeves has not given herself enough fiscal headroom to manage public finances, Charlie Bean, the former deputy of the Bank of England has said, and has to “neurotically fine tune taxes”.About £10bn – that’s a very small number in the context of overall public spending. Government spending is about one and a quarter trillion so £10bn is a small number and it is a small number in the context of typical forecasting errors.You can’t forecast the future perfectly both because you can’t forecast the economy and you can’t forecast all the elements of public finances . The forecasts are imprecise and there is no way you can avoid that. That is a fact of life.In light of reports of atrocities committed by the Israeli government in Gaza and reports of the UK’s collaboration with Israeli ...

Politics

4 d. ago Home secretary rejects Zarah Sultana’s claim Labour failing to improve lives – UK politics live

Sultana announced on Thursday she was quitting Labour to join Jeremy Corbyn’s Independent AllianceMy colleague Lauren Almeida, who is running the Guardian’s business live blog, has shared the following:Rachel Reeves has not given herself enough fiscal headroom to manage public finances, Charlie Bean, the former deputy of the Bank of England has said, and has to “neurotically fine tune taxes”.About £10bn – that’s a very small number in the context of overall public spending. Government spending is about one and a quarter trillion so £10bn is a small number and it is a small number in the context of typical forecasting errors.You can’t forecast the future perfectly both because you can’t forecast the economy and you can’t forecast all the elements of public finances . The forecasts are imprecise and there is no way you can avoid that. That is a fact of life.In light of reports of atrocities committed by the Israeli government in Gaza and reports of the UK’s collaboration with Israeli ...

Society

5 d. ago P&O Ferries boss got pay rise of at least 55% after firing almost 800 workers

Delayed 2023 accounts show Peter Hebblethwaite was paid £683,000 despite public outrage over dismissalsThe boss of P&O Ferries was paid £683,000 in the financial year after the cross-Channel operator outraged the public and parliament by dismissing almost 800 mainly British workers.The windfall, revealed in much delayed 2023 accounts seen by the Guardian and ITV News that report more than £90m of annual losses, represents a pay rise of at least 55% for Peter Hebblethwaite, who was the company’s highest-paid director. Continue reading...

Economics

5 d. ago Which tax rises could Rachel Reeves introduce to pay for the £5bn welfare U

Labour’s pledge not to raise taxes on ‘working people’ leaves the chancellor with a limited number of workable options to fill the £5bn hole in the public finances left by this week’s welfare climbdown

Economics

6 d. ago UK bond rout draws Truss comparisons as public finances rattle investors

UK bond rout draws Truss comparisons as public finances rattle investors  Reuters

Economics

1 week ago BoE urged to curb bond sales investors say could ‘reignite’ sell

‘Quantitative tightening’ is driving up borrowing costs and piling pressure on public finances, according to fund managers

Economics

1 week ago It’s also a ‘new era’ for share prices in the defence sector

Nato’s spending splurge has made Babcock hot – a sign fundamental change in dull income defence stocks is happening It’s a miracle. Babcock International, the defence contractor with a specialism in kitting out the UK’s nuclear submarines, has emerged from the depths. After about half a decade in which the story was mostly about cost overruns, acquisition indigestion, accounting woes, pension deficits and too much debt, Babcock is suddenly back in the FTSE 100 index and is a hot stock. The share price has more than doubled this year.Of course it’s not really a miracle because the performance is easily explained. A fix-the-basics strategy was started in 2020 under ex-Cobham boss David Lockwood and has worked. The last of the badly performing major contracts – to build first-of-a-kind Type 31 frigates for the Royal Navy – is no longer spitting out provisions. Continue reading...

Politics

1 week ago Courts pushing back on corporate carbon offsetting claims, LSE report finds

Scrutiny of how companies plan to meet climate commitments is growing, with many successful legal challengesJudges across the world are proving sceptical of companies’ attempts to offset their greenhouse gas emissions by buying carbon credits, a report has found.In an analysis of nearly 3,000 climate-related lawsuits filed around the world since 2015, the latest annual review of climate litigation by the London School of Economics found action against corporations in particular was “evolving”, with growing scrutiny of how companies plan to meet their stated climate commitments. Continue reading...

Events

2 w. ago The home buyers who could benefit from possible mortgage rule changes

The UK’s financial watchdog has initiated a "public conversation" into the future of the mortgage market, potentially easing access for first-time buyers, the self-employed, and those borrowing into retirement.

Economics

2 w. ago Top civil servant told to ‘get on it’ after Supreme Court ruling on gender

Michelle Thomson MSP challenged permanent secretary Joe Griffin on the issue at Holyrood’s Finance and Public Administration Committee.

Events

2 w. ago Why Americans who live near coastlines and lakefronts may face heightened ALS risk

The problem is growing thanks to climate change and nutrient pollution

Events