Economy

Train drivers will strike for two days in the coming weeks, on 30 September and 4 October. These dates are no coincidence: they directly overlap with when MPs and attendees will be travelling to and from the Conservative party conference in Manchester. This move from Aslef and the RMT is far from subtle: the unions may be locked in a pay battle with train companies, but it’s the government’s attention they are hoping to get. The train strikes add to a growing list of other walkouts planned over the next few weeks. Consultants and junior doctors will also be walking out separately this month. But then in an unprecedented move,

The closure of 400 Wilko stores – at the cost of 12,500 jobs – spells more misery for the high street. Wilko joins a pantheon of big brand names who have been forced to shut their doors since the pandemic. We have seen the loss of Debenhams, the Arcadia Group (which owned Dorothy Perkins, Topshop and Topman), Victoria’s Secret, Paperchase, Oasis and Warehouse, Made.com and Cath Kidston among many others.  According to the British Retail Consortium, the crisis on our high streets goes back further, with 6,000 storefronts closing since 2018. Last year was the worst year for retail in five years, seeing the loss of 150,000 jobs from the high street and out of town shopping centres. The situation has become so bad

The Trades Union Congress (TUC) has vowed to report the government to the UN workers’ rights watchdog over its controversial strikes bill, but how seriously can we take this threat? The TUC’s leader, Paul Nowak, certainly sounds like a man on a mission: earlier this year, Nowak claimed the legislation was ‘almost certainly illegal’, a curious assertion given it was going through parliament at the time. Now that the bill has received royal assent, it appears the TUC is doubling down on its war on the strikes bill. Yet it’s hard not to see the TUC’s complaint as anything other than a stunt designed to further denigrate the Tories who, to the

Last week’s anniversary of Liz Truss entering Downing Street could have passed by quietly. But the Trussites had other ideas. Her supporters used the moment to make the case for Trussonomics once again: to say that Truss diagnosed the country’s problems correctly and that she was on track to find solutions – until her many conspirators took her down. As it turned out, the cheerleading was a warm-up to the big event: yesterday Truss announced the details of her upcoming book – Ten Years to Save the West – which will be published next spring. Speaking to the Mail on Sunday, the former prime minister promised a detailed account of her time in Downing Street,

Is the UK set for its 15th consecutive interest rate hike later this month? Markets expect that rates will peak closer to 6 per cent – up from 5.25 per cent now – but this might not happen immediately – or at all. Speaking at today’s Treasury Select Committee, the Bank’s governor Andrew Bailey suggested rate hikes were no longer a matter of certainty, as the headline rate of inflation is now back on track with the Bank’s projections for a significant fall by the end of the year. Speaking to MPs this afternoon, Bailey said that the UK had moved on ‘from a period … where it was clear rates needed

Ladies and gentlemen, please make sure your seat belt is securely fastened and your seat backs and tray tables are in their full upright position. Richard Branson will this week once again blast his Virgin rocket ship into space. Although not really, because at best his sub-orbital ship will only get to the edge of space, and only for a few moments, before gliding back to Earth. Galactic 03, on 8 September, will be the company’s third commercial flight after a successful mission in August and will carry three as-yet-unnamed passengers who bought their tickets on the company’s space plane back in the 2000s. ‘Space is Virgin territory,’ boasts Branson, who

It’s not often that we see a GDP revision as startling as the one published today. In its Blue Book for 2023 – which includes updated methods for a range of calculations – the Office for National Statistics (ONS) has upgraded the size of the economy in the final quarter of 2021 by 1.7 per cent. This means that by the time the Omicron variant hit, the UK economy was actually 0.6 per cent above its pre-Covid level – not 1.2 per cent below, as previously stated.  This is a staggering difference. It was thought as recently as this summer that GDP still had not returned to its pre-pandemic levels.

The Office for National Statistics reports this morning that public sector net borrowing in July came in at £4.3 billion. This is the fifth-highest July borrowing month since records began, with an additional £3.4 billion being spent to fund the government’s spending pledges compared to July last year. Still, there is fast talk of room for manoeuvre for Chancellor Jeremy Hunt to spend more or cut tax, as cumulative government borrowing continues to undershoot the Office for Budget Responsibility's (OBR) latest forecast for the fiscal year. In July, borrowing reached £56.6 billion, £11.3 billion less than had been expected by this point. In the Chancellor’s response to the figures this morning, the

Following last week’s news of unexpectedly strong economic growth in June of 0.5 per cent, today’s retail sales figures for July come as something of a shock. Across the month, the volume of sales fells by 1.2 per cent compared with June, and was 3.2 per cent lower than in July 2022. The fall occurred across the board, with food stores falling 2.6 per cent month on month, clothing stores 2.2 per cent and department stores – which had seemed to enjoy a revival in recent months – falling 2.9 per cent. The only positive news was on non-store retailing – i.e. the internet – sales were up 2.8 per

When inflation was at 5.5 per cent and rising in January 2022, the BBC’s Faisal Islam adopted a look of amazement when he asked the governor of the Bank of England, Andrew Bailey: ‘So you’re trying to get inside people’s heads and ask them not to ask for too high pay rises?’ ‘Broadly, yes,’ Bailey stepped into the trap, ‘It’s painful, but we need to see that in order to get through this problem more quickly.’ The governor was slated for insensitivity, critics making much of his own half-million package. That 38-second clip did more to make his out-of-touch reputation than any of his other stumbles. But he wasn’t wrong.

Over mighty trade unions. Short-termist management that prioritises profits over investment. And an education system that doesn’t produce enough scientists or engineers. There have been many different versions of the ‘British disease’ over the years to explain the consistent under-performance of our economy compared to some of our main rivals. But right now there is a new one: the British don’t want to go back to the office – and that is hitting output hard.  According to a survey by the consultancy AWA published this week, the British are more reluctant to go back to the office than workers in almost any other major developed country. Even as bosses plead