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Economy

UK Spring Statement: Further budget cuts and halved economic growth

Britain's Chancellor of the Exchequer Rachel Reeves has laid out the latest on UK public finances. Her statement arrives at a moment when the nation needs to find billions to boost defence spending against the backdrop of an ailing economy. Here are the key takeaways.

Economy

UK inflation slowed to 2.8% in February, fuelling hopes of a rate cut

The better-than-expected inflation figure comes as a relief to the economy as it faces the looming threat of stagflation: high inflation coupled with low output.

Economy

Bank of England keeps benchmark interest rate stable at 4.5%

The central bank's decision comes amid rising uncertainty over the UK's economic growth, especially as US tariff threats loom.

Economy

Bank of England expected to pause rate cuts despite contracting output

Policymakers find themselves in a tight spot ahead of Thursday’s rate decision, with growth remaining sluggish and inflation stubborn.

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Economy

The UK economy unexpectedly contracts in January in setback for state

The British economy shrank in the first month of 2025 compared with December, driven by a decline in production.

Economy

Struggling to find work? UK sees more jobseekers and fewer vacancies

UK firms are reluctant to hire due to subdued growth prospects and rising labour costs, two new studies show.

Business

UK house prices on the rise for sixth month in a row, says Nationwide

Economists have been predicting a flurry of buyers trying to complete purchases before stamp duty increases in April.

Business

Unilever CEO Hein Schumacher to step down from role

In an unexpected exit from the consumer goods giant, Unilever CEO Hein Schumacher is to give up the helm later this week.

Economy

Shock for UK as Bank of England halves its economic growth prediction

The BoE's predictions follow its decision on Thursday to cut its main interest rate for the third time in six months. The bank now predicts that the British economy will only grow by 0.75% this year, down from its previous forecast of 1.5% just three months ago.

Economy

Bank of England cuts key interest rate as pound drops and stocks rally

The Bank of England cut its base rate to 4.5% amid easing inflation but flagged lingering risks. GDP growth remains weak, and potential US tariffs add uncertainty. The pound fell, while the FTSE 100 hit record highs.

Economy

UK Chancellor looks to third Heathrow Airport runway to boost growth

Rachel Reeves' support for a third runway came in a wide-ranging speech on boosting UK growth rates, which have been historically low since the 2008 global financial crisis for a variety of reasons.

Business

UK supermarket Sainsbury's axes thousands of jobs to cut costs

The cuts will be across the company in a cost-cutting drive which will see the closure of its cafes and pizza counters. There will also be a reduction in a number of senior management roles.

Economy

Rising borrowing costs set to batter UK government - does it matter?

As borrowing costs rise, the government has less money to spend on the country's creaking National Health Service, military, emergency services and schools.

Economy

UK inflation in surprise December dip, raising hopes over bond markets

The rise in the interest rate investors are charging the UK government to borrow money over 10 years hit a 16-year high in recent days, piling pressure on Chancellor Rachel Reeves to cut spending or raise taxes.

Economy

UK bond yields soar to multi-decade highs: Is it a new 'Truss moment'?

UK gilt yields hit multi-decade highs, with 10-year yields at 4.90% and 30-year at 5.40%. The pound slumped to a 14-month low. Analysts debate if this is a new "Truss moment" or temporary turbulence driven by inflation and fiscal worries.

Culture news

ABBA Voyage gives UK economy huge boost, contributing £1.4 billion

The virtual concert residency has attracted over two million visitors since opening in 2022 and new data shows that the production has delivered £1.4 billion (approx. €1.7 billion) in economic benefits.

Business

Stellantis announces plans to close Vauxhall van-making plant at Luton

The French-Italian car giant says it is planning more investment to enhance its other UK factory at Ellesmere Port as the UK's sustainable, EV-only volume manufacturing plant.

Economy

UK inflation rises to 2.3% as energy bills push up consumer prices

Inflation in the UK rose sharply to a six-month high in October, above the BOE's 2% target, scaling back bets that there will be further cuts in borrowing rates this year.

United Kingdom

Euroviews. Standing open-armed, UK is choosing investment over decline

A UK with strong foundations and a stable economy translates into a UK that is a stable partner to our friends in Europe, United Kingdom's Chancellor of the Exchequer Rachel Reeves writes in a Euronews exclusive.

Business

Germany and UK take aim with 'landmark' deal to make artillery guns

The new defence agreement will bring jobs to the UK as the Labour government seeks to build closer ties with European allies.