Topic
uk economy
Business UK Interest Rates Expected to Hold at 3.75% as Bank of England Maintains Cautious Stance Amid Global Uncertainty
The Bank of England is widely expected to hold its benchmark interest rate at 3.75% for a fifth consecutive meeting, as uncertainty over global politics, the Middle East conflict, and inflation persists. The decision, due at 12:00 BST, will keep mortgage repayments stable for tracker borrowers but fixed-rate deals are rising, with the average two-year fixed rate at 5.62%.
Business Birmingham Michelin Chef Says Business Rates Cut 'Not Enough' for Struggling Restaurants
Michelin-starred chef Alex Claridge, owner of Birmingham's The Wilderness, says the government's 20% business rates reduction for pubs, social clubs, and live music venues does not go far enough and omits restaurants, cafés, hotels, and cinemas. He calls for a VAT reduction instead, warning that many independent hospitality businesses are barely breaking even despite full dining rooms.
Business Record 7.4m UK households struggle to afford essentials as cost-of-living crisis deepens
A record 7.4 million low-income households in the UK are struggling to afford essentials such as food, heating and clothing, according to anti-poverty charity Joseph Rowntree Foundation (JRF). Prime Minister Andy Burnham has pledged to cut VAT on electricity bills from October, but charities are calling for further measures.
UK Economy Returns to Modest Growth in May After April Contraction, ONS Reports
The UK economy grew by 0.1% in May, driven by the services sector, after a slight contraction in April attributed to the US-Israel war with Iran, according to the Office for National Statistics. In the three months to May, the economy grew 0.7% compared with the previous three-month period.
Business Surrey Attractions Welcome Summer VAT Cut on Tickets and Food
The UK government's Great British Summer Savings scheme, effective from Thursday, cuts VAT on tickets and children's meals at attractions such as Birdworld in Surrey from 20% to 5%. Business leaders at Birdworld and Hobbledown welcome the move but call for longer-term relief as operating costs rise.
Business Andy Burnham's Devolution Plan: Can It Boost UK Economic Growth?
Andy Burnham, in his first major policy speech as an MP, outlined a radical devolution plan to rebalance power from Whitehall, aiming to boost UK economic growth. BBC Verify's analysis shows no clear historical growth impact from devolution in Scotland, Wales and Northern Ireland, but Burnham points to Greater Manchester as a successful case study.
Trade Brexit cost 6% of UK economy, Bank of England company data suggests, study finds
A study using internal Bank of England data on thousands of British companies estimates Brexit has cost the UK economy 6% of GDP over a decade. Half the hit came from post-referendum uncertainty, the rest from rising trade barriers after leaving the customs union and single market in 2021. Bank Governor Andrew Bailey acknowledged the negative impact on growth and export markets.
Trade Brexit Cost UK Economy 6% According to Bank of England Company Data Study
Economists analyzing Bank of England's Decision Maker Panel data found Brexit cost the UK economy 6% of GDP over ten years. Half the impact came from post-referendum uncertainty, half from rising trade barriers after 2021. The study used company-level data alongside five other methods, with an average estimate of 8%.
Finance Bank of England Expected to Hold Interest Rates at 3.75% for Fourth Consecutive Meeting
The Bank of England is widely expected to hold its benchmark interest rate at 3.75% for a fourth consecutive meeting, according to analysts. The UK inflation rate remains above target but has not risen as high as many feared due to the US-Israel war with Iran. Oil prices have dropped after a peace deal, potentially easing energy price pressures, though domestic gas and electricity prices are expected to rise with the next Ofgem price cap in July.
Business UK Economy Contracts 0.1% in April as Services Output Falls
The UK economy shrank by 0.1% in April 2026, according to the Office for National Statistics, driven by a drop in services output. Construction output rose, partially offsetting the decline. In the three months to April, the economy grew 0.7% compared with the previous quarter.
Business British Heart Foundation to Close 150 Charity Shops Amid Rising Costs
The British Heart Foundation plans to close 150 charity shops over the next two years, citing rising costs and changing consumer habits. This move affects nearly a quarter of its retail locations across the UK.