The US central bank has lowered interest rates for the first time in more than four years with a bigger than usual cut. The Federal Reserve reduced the target for its key lending rate by 0.5 percentage points, to the range of 4.75%-5%. It will be a relief to US borrowers, who have been dealing with the highest interest rates in more than two decades, the BBC reported.

The Swedish government has cut a tax on flying, despite admitting that it would increase emissions. The flight tax, aimed at cutting pollution from aviation, was introduced in 2018. The government’s latest budget for next year said that from 1 July 2025 the tax would no longer apply. The move is expected to cut ticket prices from Sweden by 80 SEK (£5.93) on European flights and 325 SEK (£24.09) on those outside Europe, the Guardian reported.

Lloyd’s of London has named Treasury veteran Charles Roxburgh as its next chair. He will will take up the role on 1 May 2025 – succeeding Bruce Carnegie-Brown who held the position for an eight-year term. Roxburgh joined the Treasury in 2013 as director general of financial services until 2016. He then served as the second permanent secretary to the Treasury until 2022 and was awarded a KCB for services to government, City A.M reported.

19 September 2024: Tupperware files for bankruptcy; train drivers accept pay deal to end strike action; Google wins £1.3bn case against EU ruling.

US brand Tupperware has filed for bankruptcy as it struggles to survive in the face of sliding sales. The 78-year-old firm said it will ask for court permission to start a sale of the business and that it aimed to continue operating. The move follows shifts in buyer behaviour away from containers, as well as financial reporting failures such as the misstating of results in 2021 and 2022. The company's shares have fallen by more 50% this week, the BBC reported.

Train drivers have accepted a pay deal that will see the end of more than two years of strike action in England, Scotland and Wales. Aslef union members accepted an offer which included a 5% backdated pay rise for 2022-23, a 4.75% rise for 23-24, and a 4.5% increase for 24-25. The package had been agreed by union officials and the government in August, but required the backing of members in a vote, the Guardian reported. Aslef said 96.6% of its membership who voted backed the deal and the turnout was 88.5%.

Google has overturned a nearly €1.5bn (£1.3bn) EU fine related to its AdSense advertising platform. The General Court annulled the fine after ruling that Google’s advertising contracts did not prove abuse of its dominant position. Google failed to overturn a €2.4bn EU fine earlier this month over its shopping comparison service. It is still battling its record €4.3bn fine from the EU’s top court over its Android smartphone operating system, City A.M reported.

18 September 2024: Amazon staff to work in office full time; London’s Oxford Street to ban traffic; car insurance prices drop.

Amazon is ordering staff back to the office five days a week as it ends its hybrid work policy. The change will come into force from January, Amazon's chief executive Andy Jassy said in a memo to staff. They were previously allowed to work from home two days a week. Amazon's push to get corporate staff back into the office has previously caused protests. It employs more than 1.5 million people globally in full-time and part-time roles, the BBC reported.

Traffic will be banned from London’s Oxford Street under plans announced by the mayor, Sadiq Khan. This will be done using new powers from Labour to push through long-thwarted pedestrianisation of the capital’s famous shopping strip. Khan maintains that a pedestrianised street would enjoy increased footfall and spending, and generate increased tax revenue, the Guardian reported.

The cost of car insurance is slowly coming back down after reaching record levels last year. The latest Consumer Intelligence report showed annual price rises for car insurance rose 9.8% over the 12 months to the end of August. This was down on the 34% average price rise reported in the year ending in May. There was also a drop in the cost of cover in many areas. The most common quotes for drivers ranged between £500 and £749 in August this year.

17 September 2024: scrapping tourist tax cost retailers £220m; rent gap between England’s north and south narrows; Harland and Wolff to go into administration.

Retail business in London missed out on a projected £220m in the first half of 2024. This was due to the ongoing effect of the so-called tourist tax, despite continued growth in international visitor numbers. The scheme allowing visitors to reclaim VAT paid on purchases was scrapped in 2021. This year, the number of international visitors to London was 3% above pre-pandemic levels, but spending in the West End fell nearly 12% in the first half of the year versus 2019. In comparison, international spending in continental Europe rose 36%, City A.M reported.

The gap in rents paid by those in the north and south of England has closed to its lowest level in at least 11 years. The average rent paid by tenants in the north of England in August was £960 a month, up 9.6% compared with the same period last year. This was 37% (£357) lower than the £1,317 that the average renter in the south of the country pays. It is a significant reduction from the 43% gap recorded last year, and the 55% peak in 2021, the Guardian reported.

Shipbuilding company Harland and Wolff has confirmed the business is to be placed into administration for the second time in five years. Insolvency practitioners Teneo are being lined up to act as administrators and some "non-core" staff are being made redundant. The company said there was a way for its four shipyards to continue trading under new ownership, but that shareholders will see the value of their investments in the business entirely wiped out, the BBC reported.

16 September 2024: new rules for banks to deliver financial stability; PwC faces six-month China ban; UK to buy electricity system operator from National Grid.

New rules for banks and building societies have been announced. The Basel 3.1 reforms are the final part of the internationally agreed Basel 3 framework. Under them, banks and building societies will have to maintain sufficient capital against risks, such as loans not being repaid. This aims to better protect people and businesses from the fallout from a 2008-style financial crash.

PwC's Chinese arm has been suspended from the country for six months, over its work on collapsed Chinese property giant Evergrande. The Big Four firm is also being fined more than $62m (£47m) after Chinese authorities said it had helped cover up fraud at Evergrande, the BBC reported. PwC said it was "disappointed" by its Chinese unit's work, which it said had fallen "unacceptably below the standards" it expected.

The UK government will buy great Britain’s electricity system operator from National Grid for £630m. It will be transferred into public ownership to create a new national energy system operator (Neso), which will also oversee the gas system. The deal takes effect from next month, the Guardian reported. Neso is expected to work alongside GB Energy to help connect new generation projects with the electricity grid.

13 September 2024: High Street hit as 38 shops close every day; economic growth in eurozone to be weaker than expected; OBR issues warning over national debt.

Pharmacies, pubs and banks made up half of the closures on Britain's High Streets in the first six months of this year. A total of 6,945 stores have closed so far in 2024, which is the equivalent of 38 shops per day. Accounting for new store openings, there's only a net closure of 12 stores a day – slightly higher than the same period last year. On average, 18 chemists, 16 pubs and nine banks shut down every week between January and June, PwC research found.

The European Central Bank has warned that economic growth in the eurozone will be weaker than it had hoped. It lowered interest rates for the second time this year. Its deposit rate was cut from 3.75% to 3.5% as inflation in the eurozone fell to 2.2% in August – down from 2.6% in July and near the ECB’s 2% target. The ECB lowered its forecast for GDP growth this year from 0.9% to 0.8%. For 2025, growth expectations were trimmed from 1.4% to 1.3%, and from 1.6% to 1.5% in 2026, the Guardian reported.

Public finances will be set on an “unsustainable path” in the coming years unless the government takes action, the spending watchdog warned today. The Office for Budget Responsibility forecast public debt would rise to more than 270% of GDP by the mid-2070s, up from nearly 100% at the moment, due to a big projected increase in public spending. It also predicted public spending will rise to 60% of GDP, from 45% at the moment, whereas revenue will remain flat, City A.M reported.

12 September 2024: UK to expand digital travel to more visitors; Tata Steel set for £500m UK government subsidy; TV production sector income in UK falls £400m.

Visitors who do not need a visa will soon need an electronic travel authorisation (ETA) to travel to the UK. This comes as part of the government’s plan to digitise the UK border and immigration system. Eligible non-Europeans will need an ETA to travel from 8 January 2025 and eligible Europeans will need one from 2 April 2025. An ETA costs £10 and permits multiple journeys to the UK for stays of up to six months at a time over two years. 

The UK government says it has reached a "new and improved deal" with Tata Steel, confirming it will give a £500m grant to the company. The money will go towards the cost of building a greener electric furnace in Port Talbot, and matches the amount agreed by the previous Conservative government. About 2,500 workers are set to be made redundant, with a further 300 expected to be made redundant in future, the BBC reported.

The TV production sector in the UK suffered a £400m fall in revenues last year. This comes as cash-strapped British broadcasters reduced spending to the lowest level since the height of the pandemic. The latest annual industry survey found that total revenues made by UK production companies fell by £392m to £3.61bn in 2023, the Guardian reported.

11 September 2024: Oasis and Ticketmaster urged to refund fans; Apple loses battle over €13bn tax bill in Ireland; State pension set to rise by £460 next year.

Oasis and Ticketmaster should refund tickets sold using “dynamic pricing”, consumer group Which? says. Some fans paid more than £350 for tickets with a face value of less than £150, after prices were inflated during the booking process. After waiting in sales queues and beginning the online checkout, such fans were surprised to learn the cost had more than doubled from the advertised price when they began. They had to make a split-second decision whether to complete their purchase before the sale timed out. Under the consumer protection from unfair trading regulations, traders must not mislead on how prices are presented or leave out key pricing information, the Guardian reported.

Ireland is required to recover more than 13bn euros (£11bn) in back taxes from Apple. The European Court of Justice decision restores a 2016 European Commission ruling that Ireland gave undue tax benefits to Apple in 1991 and 2007, which would be illegal under EU state aid rules. This meant it substantially and artificially lowered the tax Apple paid in the country since the early 90s compared to that other businesses were required to pay, in a way which did not correspond to economic reality, City A.M reported.

The new full state pension is expected to rise by £460 a year from April, latest wages data suggests. Under the arrangement called the "triple lock", the state pension goes up each year by either 2.5%, inflation, or average earnings growth - whichever is the highest figure. Earnings figures for the three months to July are used for the yearly increase, and these showed total pay rose at an annual rate of 4%, much higher than inflation, the BBC reported.

10 September 2024:governance weaknesses found in Wales’ Fire and Rescue Authorities; Bank of London reveals £42m in fresh funding; Asos customers face new returns charge.

The Welsh Auditor General has highlighted governance weaknesses in Wales’ Fire and Rescue Authorities (FRA). Its investigation found that the roles and responsibilities of FRA members are not always reflected in their actions in practice. It added that whilst FRAs review the effectiveness of their governance arrangements, the contribution of individual members is typically not evaluated. Moreover, training and development activity is limited and is not always informed by members’ needs. The National review recommended actions to address these areas.

The Bank of London has raised another £42m from investors days after being hit by a winding-up order by HMRC. The financial company said the oversubscribed funding round closed in August and that this latest investment would “position the bank for its next phase of growth in its core UK market”. The company is not disclosing how much was owed, and it is unclear how long the taxes has been outstanding, the Guardian reported.

Asos customers are criticising a new rule charging them for returns if they do not keep a certain amount of their order. Some customers received an email saying they had been identified as having a "frequently high return rate". They will now have £3.95 deducted from their refund if they keep less than £40 worth of items. Asos has not said what constitutes a high return rate, the BBC reported.

9 September 2024: second homes for sale in Wales treble after tax hike; UK needs £1tn investment to hit economic targets; PwC UK orders staff to spend more time in office.

PwC UK has ordered staff to spend more time in the office and meet clients in person. The Big Four firm is the latest firm to adopt tighter rules on working from home. Its new hybrid working policy requires staff to spend at least three days a week – or 60% of their time – with clients or in the office. This is due to come into force in January 2025, City A.M reported.

The UK needs £1tn of fresh investment over the next decade if the government is to hit its economic growth targets, a City taskforce says. The Capital Markets of Tomorrow report found that to achieve at least 3% annual growth, the UK must attract £100bn of investment per year, divided between key sectors. That includes £20bn-£30bn towards the UK’s housing stock, £50bn for the energy sector, £8bn for water projects and £20bn-£30bn worth of venture capital for growing companies that are beyond the startup stage, the Guardian reported.

The number of second homes for sale in a Welsh county has trebled since council tax increased by 200%. There were 135 Pembrokeshire second homes on the market in July, compared to 38 the previous year. New government rules aimed to make it easier for people to afford homes in the area where they grew up. Powers were given to local authorities to charge a premium of up to 300% on top of the normal council tax rate for those who own a second home in Wales. While tourist spots are criticising the move, many young people support it, saying wealthy second homeowners were pricing them out of the market, the BBC reported.

6 September 2024: Volvo retires plan to sell only EVs by 2030; Wetherspoons makes huge price cuts in VAT protest; Asos sells Topshop stake for £135m to help repay debts.

Volvo has abandoned its target to produce only fully electric cars by 2030. The car maker blamed changing market conditions for its decision to give up the target it announced three years ago. It now expects it will only be selling some hybrid vehicles by that date. The news comes as the industry faces a slowdown in demand in some major markets for electric vehicles and uncertainty due to the imposition of trade tariffs on EVs made in China, the BBC reported.

JD Wetherspoon will make a huge cut to its prices on 12 September. This comes in a bid to highlight what the pub giant describes as the benefit of a permanent VAT reduction in the hospitality industry. The price of its food and drink will be reduced by 7.5%, but the cut will only be for that one day to mark Tax Equality Day. The chain is calling on the chancellor to create tax equality by cutting VAT to 12.5%, City A.M reported.

Asos has sold a majority (75%) stake in Topshop for £135m. The deal will help it repay debts and could see the brand return to the high street. It bought the stake in Topshop just over three years ago for £330m. It has now sold it to Heartland, an arm of Bestseller, the Danish fashion business controlled by the major Asos shareholder Anders Povlsen, the Guardian reported.

5 September 2024: UK to be a standout performer among major economies; pay rise for thousands of UK Amazon workers; State pension to rise more than £400.

The UK will be the “standout performer” among major economies in the months to come, analysts predict. This comes as firms are set to benefit from strengthening domestic demand. Panmure Liberum’s early cycle indicator (ECI) measures the UK at 1.09, comfortably ahead of both the eurozone and the US. The ECI has continuously improved since it reached a nadir of 0.80 last August, City A.M reported.

Amazon has announced a pay rise worth nearly 10% for tens of thousands of UK employees. This comes as it defeated a bid by the GMB trade union for bargaining rights over pay and conditions. The online retail company said the increase would lift minimum pay rates by 9.8% to between £13.50 and £14.50 an hour, depending on location. Staff with at least three years’ service will receive a minimum of between £13.75 and £14.75 an hour, the Guardian reported.

The Treasury expects the new full state pension to be boosted above inflation by more than £400 a year in cash terms. This is due to the triple lock. Following the planned winter fuel payment cut, millions of people may see an overall increase in their income of £100 or £200. The increase will take the full state pension for men born after 1951 and women born after 1953 to around £12,000 next year, after a £900 increase last year. Pre-2016 retirees are likely to see at least a £300 a year increase in the basic state pension to £9,000 next year under the old system, the BBC reported.