Business

Soaring inflation has seen interest payments on government debt leap by 63% over the past year, official data reveals. Figures published by the Office for National Statistics (ONS) also showed the UK borrowed more than expected in July as public spending outstripped taxes and other income. Government borrowing hit £4.9bn in July, according to the

Consumer confidence is at an all-time low in light of “acute concerns” about the soaring cost of living and bleak economic outlook, according to new research. GfK’s Consumer Confidence Barometer, which has run since 1974, provides a monthly snapshot of the public mood on crucial economic issues. The group’s index decreased by three points in

A union boss has warned rail strikes will continue until a settlement is reached as the latest walkout by workers caused widespread disruption for train passengers. Speaking to Sky News, RMT chief Mick Lynch said his members were “completely committed to the cause” and would “keep going” in their long-running dispute over pay, jobs and

An Ofgem director has quit over the electricity and gas regulator’s decision to change the way it calculates the energy price cap, which she said will lead to much higher bills. The regulator confirmed to Sky News that Christine Farnish had stepped down from the board after disagreeing with the rest of its members over

Britain’s rate of inflation has surged to a fresh 40-year high, heaping yet more pain on cash-strapped households as the cost of living crisis deepens. The Consumer Prices Index (CPI) rose to 10.1% in the 12 months to July, up from 9.4% in June and remaining at the highest level since February 1982, the Office

While naturally most attention with today’s jobs figures will focus on the biggest decline in wages in real terms, in other words when inflation is factored in, the numbers also point to a lot of interesting things going on beneath the surface. First of all, look at the way the growth in wages including bonuses

Workers have suffered a record real-term pay slump in the face of soaring prices, official data reveals. Regular wages, excluding bonuses, plunged an average of 4.1% on the year in the three months to June when inflation is taken into account, according to the Office for National Statistics (ONS). It is the highest fall since

The American consumer goods group which owns Reebok and an interest in David Beckham’s branded products portfolio is close to unveiling a cut-price £200m takeover of Ted Baker, the London-listed fashion retailer. Sky News has learnt that the board of Ted Baker is preparing to recommend a 110p-a-share offer from Authentic Brands Group (ABG), run

Spiralling energy bills have led to demands for immediate increased government action to help struggling families. Pressure is mounting on the two Conservative candidates vying to be the next prime minister to put forward detailed proposals as political opponents and some of the UK’s largest power companies have outlined their own plans to curb soaring

Sir Keir Starmer has pledged that people will not “pay a penny more” on their winter energy bills as he prepares to unveil Labour’s plan for easing the cost of living crisis. Ahead of a full reveal on Monday, the Labour leader says his party’s £29bn energy plan will save the typical family £1,000 immediately,

A footwear reseller which has developed a cult following among Gen-Z consumers has drafted in advisers to explore options including a £150m sale. Sky News has learnt that Kick Game, which was founded in 2013, is working with the accountancy firm PricewaterhouseCoopers (PwC) to field interest from a number of suitors. The process, which is

The family which jointly founded one of Britain’s biggest leisure empires is finalising a £300m-plus deal to retake control of Butlin’s, the holiday camps chain. Sky News has learnt that a vehicle connected to the Harris family, which helped to establish Bourne Leisure in the 1960s, is close to signing a transaction with Blackstone, the

A US car dealership giant with a market value of over $7bn was the mystery bidder which made an offer last month for Pendragon, its British peer. Sky News has learnt that Lithia Motors, which is listed on the New York Stock Exchange, tabled a 29p-per-share bid valuing Pendragon at about £460m. City sources said

Labour has vowed to stop “outrageous” premiums that energy prepayment meter customers face. The pledge is part of a package of measures to tackle the cost of living crisis which Sir Keir Starmer’s party is set to unveil. It comes as Boris Johnson doubled down on his insistence that it is for his successor to

The UK’s economy contracted by 0.1% in the second quarter, according to latest estimates. In June, GDP fell by 0.6%, services fell by 0.5%, manufacturing by 1.6% and construction by 1.4%, the Office for National Statistics said. The large drop in June was partly caused by the large reduction in services spending as coronavirus test

Around 5% of businesses with 250 or more employees have offered a one-off cost-of-living payment to their workers in the last three months. The figure comes from the Office for National Statistics’ Business Insights report, which also says the rate was just 1% among smaller firms. It comes despite many businesses struggling with their own

US inflation grew at a slower pace than expected in July, according to the latest government figures, easing pressure on the Federal Reserve to deliver another super-sized interest rate hike. Consumer prices jumped by 8.5% in July compared with a year earlier, down from the 9.1% year-on-year jump in June. On a monthly basis, prices

Energy bosses have been “hauled in” before government to discuss what they are going to do with their rising profits as household bills soar, the education secretary has told Sky News. James Cleverly said Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng are to meet with leaders of energy companies as calls grow for more

Royal Mail workers are set to stage four days of strikes in the coming weeks in a dispute over pay. The Communication Workers Union (CWU) said over 115,000 staff will form the biggest strike of the summer so far to demand a “dignified, proper pay rise”. Walkouts will take place on Friday 26 and Wednesday

The summer heatwave prompted shoppers to spend more on summer clothes, picnic food and air conditioning in July, according to the latest figures. The British Retail Consortium said the value of total sales was 2.3% higher last month than it was in July 2021 – good news for retailers after falls in each of the

Campaigners have demanded a 25p cut in fuel prices to help reduce the cost of living. FairFuelUK said fuel duty should be cut by 20 to 25p per litre in a similar manner to cuts seen in Europe. The campaign organisation said the price of a barrel of Brent Oil was now below £80 a

Just over half of councils in England have started making payments to COVID-hit businesses from a £1.5bn support package – almost 18 months after it was launched. Businesses in the retail, hospitality and leisure sectors were given a business rates holiday due to the pandemic, but those outside these sectors were told they could not

Arcadia Group’s pension schemes are closing in on a deal to offload retirement funding promises made by the retail empire, owned by Sir Philip Green, prior to its collapse two years ago. Sky News has learnt that the trustees of its executive and staff schemes are in detailed discussions with Pension Insurance Corporation (PIC), the

Water companies across the UK are being “strongly urged” to enforce a hosepipe ban. Environment Secretary George Eustice says some local providers “have rightly taken action to mitigate the effects of this prolonged dry weather” – but other utility companies are yet to follow suit. Writing in The Sunday Telegraph, Mr Eustice warned the “very

The high street giant Next is in talks to take a big stake in Joules, the struggling fashion and lifestyle products chain. Sky News has learnt that Next has been negotiating for several weeks to acquire up to 25% of the smaller London-listed retailer. City sources said this weekend that the discussions were not certain

Workers at the UK’s biggest container port will go on strike for more than a week later this month in a dispute over pay. More than 1,900 members of Unite union at Felixstowe will strike for eight days from Sunday 21 August until Monday 29 August. The union said that employer Felixstowe Dock and Railway

The US hiring boom continued last month, as employers added 528,000 jobs – more than double the number expected. The government data showed a labour market continuing to defy surging inflation and back-to-back quarters of contraction in GDP, which have raised fears of a recession. It marked the 19th consecutive month of payrolls expansion, and

Just a day after the Bank of England warned of a 15-month recession, there are signs in housing and recruitment that the slowdown is already well under way. Figures out on Friday showed that house prices fell in July (in monthly terms) for the first time in more than a year, with warnings that the

How does it feel running an energy intensive business in the age of soaring prices? “It’s like a train coming down the tracks and you know you can’t avoid it,” says Matthew Greene. He’s the managing director of Ercon Powder Coating, a second-generation family firm in Bilston in the West Midlands, one of hundreds of

Next says warm weather and demand for formal clothing have helped boost its sales in recent months. The British retailer said that full price sales were 4.7% stronger than expected in the second financial quarter, saying this was likely the result of “unusually warm and dry weather”. The return to formal dressing “perhaps driven by

Hope of a meaningful drop in global oil prices have been dashed after a major group of oil-producing nations, including Russia, agreed to increase volumes by a much lower rate than requested. The United States had called on the OPEC+ cartel to raise output by at least 300,000 barrels per day (bpd) to help ease

The UK’s service sector has grown at its slowest rate since February last year – when much of the country was still under COVID-19 restrictions. The monthly S&P Global/CIPS UK services PMI survey hit 52.6 in July, from 54.3 a month earlier. Anything above 50 is positive so it means the sector – which accounts

The energy price cap will remain above £3,500 a year throughout most of 2023, according to the latest dire forecast for household bills. The prediction, from energy consultancy Cornwall Insight, comes as families gear up for what is set to be the toughest winter for decades amid mounting costs on almost every front as inflation