Business

More than five million households could see their annual mortgage payments rise by an average of £5,100 between now and the end of 2024, a leading think tank has warned. In total, mortgage payments are set to rise annually by £26bn over the next two years, according to the Resolution Foundation. Affected households in London

So farewell, then, Trussonomics. The demise of the country’s second shortest-lived chancellor also brings with it the demise of the country’s shortest-lived economic movement. Liz Truss came into office promising to boost the country’s growth rate through a forensic combination of tax cuts, reforms to the country’s supply side (for which read: things like planning

The financial markets have responded positively to the government’s anticipated U-turn on parts of its massive mini-budget programme of unfunded tax cuts and energy price cap spending. Despite initial positive moves in the market on Friday the response to Liz Truss’s U-turn speech on Friday afternoon has been negative. UK government borrowing, necessary for planned

The chancellor has insisted he is “not going anywhere” amid the economic turmoil in the UK and said he remains “totally focused” on delivering the government’s growth plan. During a visit to Washington DC, Kwasi Kwarteng was asked whether he and Liz Truss, the prime minister, will be in their respective roles this time next

The head of the International Monetary Fund has delivered a blunt condemnation of the UK government’s mini-budget – pointing out government and Bank of England policies should not be working against each other. Kristalina Georgieva was speaking at a news conference in Washington after the government’s mini-budget unleashed chaos in the markets when it was

The chancellor’s mini-budget “complicated matters” for the Bank of England as it battled to bring down inflation, the International Monetary Fund’s chief economist has told Sky News. In an interview at the IMF’s annual meetings in Washington, Pierre-Olivier Gourinchas warned the coming years would “not be very pleasant” for the global economy. He also said

The economic credibility of the government has come under siege on financial markets since last month’s tax-cutting mini-budget. While the value of the pound hit a new record low against the dollar of $1.03 in the days following the chancellor’s statement to MPs, which contained no details on how it would all be paid for,

The International Monetary Fund (IMF) has predicted a tough 2023 as it cut growth predictions and forecast economic contraction in a third of the world. “The worst is yet to come”, the global financial institution’s World Economic Outlook report said. “For many people 2023 will feel like a recession”, it said. A downward revision of

The Bank of England’s governor has ruled out extending its bond-buying support for pension funds beyond Friday’s deadline, prompting a dramatic fall in the value of the pound. Andrew Bailey told an event in Washington that funds had “three days left… to get this done” after a series of interventions to support the “dysfunctional” market

The government’s mini-budget has left it facing such a large black hole in the public finances that the most credible way of filling it is severe spending cuts similar to the kinds imposed during the austerity years a decade ago, according to an authoritative new report. The “Green Budget”, from the Institute for Fiscal Studies

The acquisition by Morrisons of McColl’s, one of Britain’s biggest convenience store chains, has edged closer to being given the go-ahead by the competition watchdog. The Competition and Markets Authority has said it is “minded to accept” proposals from the retailers. A total of 28 McColl’s stores could be offloaded as part of the proposals

A former boss of crisis-hit Wasps is spearheading a takeover bid for the Premiership Rugby club that could save it from the threat of relegation or extinction. Sky News has learnt that David Armstrong, who stepped down as Wasps’ chief executive in 2017, is working with Terminum Capital, an investment firm, on a bid to

Octopus Energy is close to clinching a takeover of stricken rival Bulb in a deal that will crystallise up to £4bn of losses for British taxpayers. Sky News has learnt that ministers at the Treasury and the Department for Business, Energy and Industrial Strategy (BEIS) have been told that a sale of Bulb’s 1.6m-strong customer

Kwasi Kwarteng, the chancellor, has ruled out tearing up the regime put in place to segregate high street lenders’ investment banking arms that was put in place after the 2008 financial crisis. Sky News has learnt that Mr Kwarteng told a gathering of industry chief executives this week that bank ring-fencing would not be scrapped

The interest rate on a typical two-year fixed-rate mortgage has broken 6% for the first time in 14 years. The sudden rise has left first-time buyers with few affordable mortgage options, and those looking to re-mortgage facing huge increases in their monthly repayments. On the Sky News Daily, Niall Paterson speaks to two people whose

The pound’s value ebbed and flowed on Friday – supported by a Bank of England deputy governor’s vow to persist in the fight against inflation but later hammered as stronger than expected US jobs data lifted the dollar. Remarks by Sir Dave Ramsden, a member of the monetary policy committee (MPC) which sets Bank rate,

The number of company insolvencies in England and Wales hit its highest level for 13 years in the second quarter of the year, according to official figures. The Office for National Statistics (ONS) recorded a total of 5,629 business failures between April and June. It was the highest quarterly number since the third quarter of

September saw the slowest retail sales growth since shops reopened post-COVID restrictions due to a combination of inflation, economic crisis and an uexpected bank holiday, figures show. In-store and online sales increased by just 2.8% in September on last year, according to BDO’s High Street Sales Tracker (HSST). It comes after a similar poor set

A measure of confidence in the UK’s creditworthiness has been slashed by another major ratings agency in the wake of the mini-budget, piling further pressure on the under-fire pound. Fitch revealed on Wednesday night that it had cut the outlook for its credit rating on UK government debt to “negative” from “stable”. It maintained its

“Stealthy” freezes to tax and welfare thresholds will outweigh any benefits people will get from the government’s plan to cut taxes, according to economists. Chancellor Kwasi Kwarteng announced a raft of measures in his mini-budget last month, including cutting the basic rate of income tax by 1p and reversing the increase to National Insurance, brought