The Bank of England has cut interest rates for the first time since 2020 as inflation continues to remain steady, holding at their two percent target for two consecutive months.
Bank Rate is currently 5.25per cent, a 16-year high where it has been pegged for the last year to fight inflation, but it has now been set at five percent, a drop of 0.25 percentage points.
Governor Andrew Bailey said the move comes after inflation pressures “eased enough that we’ve been able to cut interest rates today”.
The decision will come as joy for homeowners who have been struggling with rising mortgage payments as major banks have confirmed rates could go down as low as three per cent.
Chancellor Rachel Reeves has welcomed the move but warned “millions of families are still facing higher mortgage rates after the mini-budget”.
Key Points
- BoE cuts interest rates in major boost for mortgage holders
- Major banks reduce mortgages after Bank of England interest rate cuts
- Reeves welcomes interest rates cuts but warns families still struggling
- GPs take industrial action over budget dispute
- Braverman: Tories have ‘no chance of winning’ election
Pictured: Yvette Cooper and Keir Starmer meet police leaders
15:40
Salma Ouaguira
Braverman: Tories have ‘no chance of winning’ election while Reform exists
15:34
Salma Ouaguira
Suella Braverman has claimed the Tories have “no chance of winning” the next general election as long as Reform UK still exists.
The former home secretary said her party and Nigel Farage’s Reform “cannot co-exist”.
She told GB News: “There is not enough room in British politics for two conservative parties. Reform and the Conservatives cannot co-exist in the way that they are.
“We will have no chance of winning the next general election as long as Reform is a viable alternative.”
But she the Conservative MP for Fareham and Waterlooville was unsure how to fix the situation.
Braverman rules out running in future Tory leadership contests
15:23
Salma Ouaguira
Suella Braverman has ruled out running to be a Tory leader in the future.
Asked if she had given up on the idea, she told GB News: “I won’t put myself forward again. I am very happy. I have had a go.”
Mrs Braverman added she believed “that will be it for me I think”.
It comes as the rightwing struggled to get the 10 MPs needed to put her on the ballot paper to become the next Conservative leader as Brexiteers look at Robert Jenrick as an alternative candidate.
Allies warned that a “Stop Suella” campaign is running among parliamentarians because of the “uncomfortable truths” she spoke about the state of the party and her enormous support among ordinary members.
Tory MP endorses Mel Stride for party leader
15:15
Salma Ouaguira
Thank you, @jeromemayhew. A colleague who really understands business.
— Mel Stride (@MelJStride) August 1, 2024
I will unite and lead the whole Conservative family in our mission to regain the trust of the British people on public services, immigration and lower taxes. https://t.co/rvuCpKx1Lz
Braverman denies she will defect to Reform unless ‘driven out’ of Tory party
15:09
Salma Ouaguira
Suella Braverman has said she will not defect to Reform UK unless she is “driven out” of the Conservative Party.
In her first interview since abandoning her bid to replace Rishi Sunak as party leader, the former home secretary warned that the Tories have “no chance of winning the next general election” as long as Nigel Farage’s outfit “is a viable alternative”.
Asked about speculation that she might join Reform UK, Ms Braverman told GB News: “I’m not going to defect to Reform, no.
“I hope I’m not driven out to Reform by my colleagues.”
Describing Tory-to-Reform defector Lee Anderson as a “good friend,” she continued: “We should not be hounding out Conservatives, right-wingers, Eurosceptics, people who want to stand up for our flag and our faith as if they are somehow swivel-eyed loons.
“Lee Anderson should be a Conservative MP.”
Ms Braverman also warned her party against “complacency” over the threat from Reform.
“I am absolutely confident that Reform can do better,” she said.
“Young people are voting more for Reform than they are for the Conservatives.”
“These facts alone should seriously alarm any Conservative leader and all Conservative MPs.
“I’m just concerned that there’s still a level of complacency.”
UK factories ‘more optimistic after election’ as activity jumps to two-year high
15:00
Salma Ouaguira
Britain’s manufacturing sector saw activity jump to a two-year high in July amid surging optimism after Labour’s landslide victory, a report has shown.
The closely-watched S&P Global UK manufacturing PMI survey recorded a reading of 52.1 for July, up from 50.9 in June and above the 51.8 indicated in last month’s “flash” estimate.
The sector has now remained above the 50 mark – which indicates growth – for the past three months.
The report said growth in production lifted to its highest level since February 2022, while new orders likewise strengthened.
It also revealed workforces in factories rose for the first time in nearly two years, with the survey showing a boost to confidence levels since the election result in early July.
Rob Dobson, director at S&P Global Market Intelligence, said: “Hopes for an economic revival and reduced political uncertainty took confidence to one of its highest levels for two-and-a-half years, with 60% of companies surveyed now forecasting output will rise over the coming 12 months.”
But he added: “Inflationary pressures remain a blot on the copybook, however, with input costs rising to the greatest extent in one-and-a-half years.
“The ongoing Red Sea crisis and associated freight issues are having a severe impact on prices, which are then sustaining a focus on cost-caution and cash flow protection at manufacturers.”
Scrapping the social care cap will come back and haunt this governmentScrapping the social care cap will come back and haunt this government
14:50
Salma Ouaguira
During the election, Labour committed to overhauling the ‘Cinderella service’ of adult social care – yet, in one of her first acts as chancellor, Rachel Reeves has removed the ceiling that limits an individual’s costs to £86,000. Will the public settle for another sticking-plaster solution, asks Andrew Grice:
Tories: ‘No surprise’ GPs on strike after pay rise for junior doctors
14:40
Salma Ouaguira
Shadow health secretary Victoria Atkins has said it was “no surprise” that GPs have voted for industrial action after Labour granted junior doctors a big pay rise.
The Tory MP said: “After appeasing junior doctors with a budget-busting 22 per cent pay rise, it comes as no surprise that other healthcare workers are feeling shortchanged by the new Labour Government.
“Instead of caving in to unaffordable union demands, the Labour Government must resolve this dispute or it is patients and the public who will pay the price with more strikes and higher taxes.”
It comes as family doctors announced industrial action in protest at the previous Conservative government increasing their budget by only 1.9 per cent this year.
Sarwar: Scotland has opportunity to target winter fuel benefit
14:30
Salma Ouaguira
The Scottish Government should explore making its version of the winter fuel payment “more targeted”, the leader of Scottish Labour has said.
This week, Chancellor Rachel Reeves announced the benefit would move from being universal to being means-tested, sparking outrage north of the border about a potential £160 million funding gap.
As part of the process of devolving social security, the Scottish Government is due to take control of the benefit this winter.
Ministers have said the universality of the payment – which could be worth as much as £300 for pensioners – cannot be guaranteed.
But Scottish Labour leader Anas Sarwar said the announcement from the Chancellor presents an “opportunity” for the benefit in Scotland.
Speaking to journalists on a visit to a community project in Easterhouse, Glasgow, he said: “This is a new devolved benefit that’s going to come to Scotland this year now that the winter fuel payment is going to be devolved.
“We have an opportunity to do that in a more progressive, fair way and I think the Scottish Government should take that opportunity.
“We’re willing to work with them and representative charities to make sure those that need the payment, those that are going to genuinely be supported by that payment, receive that payment.
“I don’t see the benefit in us giving a payment to those that frankly are millionaires and don’t need the money at a time when people are struggling to make ends meet and our public finances are in a difficult situation.”
Andrew Bailey urges government to remain ‘highly alert’ to inflation signs
14:20
Salma Ouaguira
Bank of England governor Andrew Bailey has said policymakers will remain “highly alert” to signs that inflation might increase, despite cutting the base rate to 5% on Thursday.
Mr Bailey said the UK has “truly come a long way in returning inflation to target”, but that some indicators like persistent services price inflation remain a risk factor.
He said: “We need to watch this very carefully. The Monetary Policy Committee continues to pay close attention to services inflation as an indicator of persistence in domestic inflationary pressures, along with a range of other economic indicators.”
He added: “The committee continues to remain highly alert to the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meeting.”
Labour facing fresh calls to back EU youth mobility scheme
14:10
Salma Ouaguira
The government has been urged to pursue a youth mobility scheme with the European Union (EU) alongside the “new approach” to legal migration launched by Yvette Cooper.
The home secretary on Tuesday launched a plan to boost the UK workforce’s skills before recruiting abroad in a bid to bring overall numbers down.
Housing market ‘set for confidence boost following base rate cut’
14:00
Salma Ouaguira
An autumn housing market boost is on the cards following the cut in the Bank of England’s base rate, property experts have suggested.
Homeowners on tracker mortgage rates will see their annual payments cut by more than £340 on average as a result of the base rate reduction from 5.25% to 5%.
The turning point for the base rate, after a string of previous hikes, provides a ray of light to homeowners on deals which directly track the base rate.
It will also bring some relief to those sitting on the 700,000 fixed-rate mortgage deals which are due to end in the second half of this year – equating to around 4,000 homeowners per day potentially having a rate shock when their lower-rate deal ends.
One expert described the cut as “a clear signal to the market that the Bank feels it has turned a corner in the battle against inflation”, while another said it gives “important reassurance” to borrowers who have had to contend with a volatile mortgage market in recent years.
According to industry body UK Finance, based on outstanding mortgage balances, the average tracker mortgage borrower will see their monthly payments cut by £28.44.
Someone on a standard variable rate (SVR) mortgage meanwhile will see their monthly payments fall by £14.50, assuming their lender passes on the rate cut in full. SVRs are set by lenders individually.
Reeves will have to U-turn on winter fuel savings, warns ex-minister
13:56
Salma Ouaguira
Chancellor Rachel Reeves has been warned that her plans to means-test winter fuel payments will not be possible because of ageing computer systems.
Former pensions minister Guy Opperman, who ran benefits for pensioners between 2017 and 2022 and looked at means-testing the winter allowance, has issued a warning that the system in the Department for Work and Pensions (DWP) cannot cope with the changes Ms Reeves has proposed.
The chancellor announced that she would save almost £3bn by ending winter fuel payments – worth between £100 and £300 – for those not on pension credit.
The decision means around 10 million out of the 11.5 million pensioners who received the payment will no longer get it.
Our political editor David Maddox has the full story:
Rishi Sunak slams government’s public sector pay increases
13:36
Salma Ouaguira
Former prime minister Rishi Sunak claimed that the new government’s public sector pay increases may leave the Bank with less room to cut rates further by stoking inflation.
In a post on X, formerly Twitter, he said: “The Bank of England has cut interest rates for the first time since 2020.
“That’s good news for homeowners and shows Labour inherited a strong economy.
“My concern now is that Labour’s inflation-busting public sector pay rises have put further cuts at risk.”
The @bankofengland has cut interest rates for the first time since 2020.
— Rishi Sunak (@RishiSunak) August 1, 2024
That's good news for homeowners and shows Labour inherited a strong economy.
My concern now is that Labour's inflation-busting public sector pay rises have put further cuts at risk.
Reeves: Interest rate cut is a Bank of England decision
13:36
Salma Ouaguira
The interest rate cut was a decision made by the Bank of England, Rachel Reeves said when it was put to her the Tories’ decisions in office may have led to it.
The chancellor told broadcasters: “Decisions around interest rates are of course decisions for the independent Bank of England, but I have been left with a £22 billion black hole in the public finances.
“I am determined to close that black hole so that we can fix the foundations of our economy.
“That will require tough decisions, but that is what we were elected to do.”
Major banks reduce mortgages after Bank of England interest rate cuts
13:20
Salma Ouaguira
High street banks including Halifax, NatWest and Santander have slashed their mortgage rates following the BoE decision.
Governor Andrew Bailey confirmed the interest rates have now been reduced to five per cent for the first time in four years.
The move has been welcomed by mortgage holders but those on a fixed rate are excluded from the cut.
Experts claimed borrowing rates could fall to as low as 3.5 percent by end of the year.
BoE insists public sector pay rises will have no impact on inflation
13:11
Salma Ouaguira
Andrew Bailey has said the government’s 5.5 per cent public sector pay deal will have little impact on inflation.
Shadow chancellor Jeremy Hunt previously said the above-inflation public sector pay settlements will make further rate cuts harder.
But after holding talks with Treasury representatives at a MPC meeting, the Bank of England governor said the they will only have an impact of less than 0.1 per cent.
Mr Bailey added: “The proverbial back-of-the-envelope suggests an increment in the inflation space that is very small. I mean, you’re in quite small second decimal place numbers.”
Economists criticise Bank’s ‘late decision’ to cut interest rates
13:04
Salma Ouaguira
Senior economists have criticised the Bank of England decision to cut interest rates.
Experts at the Institute for Public Policy Research (IPPR) said the Bank waited “too long” to do so.
IPPR senior economist Carsten Jung said: “The Bank has been holding back the UK’s economic recovery by underappreciating the long-term effect of high interest rates.
“The UK is still 6 per cent below its pre pandemic growth path, behind the United States and the euro zone, and the Bank today confirmed that it expects growth to remain weak.
“With inflation expectations back at pre-pandemic levels, and the labour market cooling, now is the time for the Bank to signal clearly that it will continue the lowering interest rates in the coming months.”
Is the door open for future rate cuts?
12:58
Salma Ouaguira
Bank of England governor Andrew Bailey has been asked whether there could be more rate cuts in the future.
During the press conference, a journalist asked: “Is the door open for future rate cuts, or does today’s move mean the Bank of England is ‘one and done’?”
Mr Bailey cautioned the committee is still on “high alert” to the risks of inflation despite the decision to reduce rates to five per cent.
Refusing to give a firm answer he said: “We will go from meeting from meeting, as we always do. It’s this judgement about resilience.”
Streeting promises to ‘work with GPs’ to rebuild NHS amid strikes
12:54
Salma Ouaguira
Wes Streeting has vowed to “work with GPs to rebuild the NHS together” following the announcement that family doctors will strike.
The health secretary tweeted:
We inherited an absurd situation, where patients can’t get a GP appointment, and GPs can’t get a job.
— Wes Streeting MP (@wesstreeting) August 1, 2024
We’re taking immediate action to recruit an extra 1,000 GPs.
I want to work with GPs to rebuild the NHS together.https://t.co/qmPKEi2n0I
Bailey: We have truly come a long way
12:49
Salma Ouaguira
Andrew Bailey has declared “we have truly come a long way” to hit inflation targets.
Talking to the press, he showed a chart showing how inflation has fallen from a 11 per cent peak in 2022 to two per cent in June.
But the government warned inflation is expected to rise later this year to around 2.75 per cent before going back to the two per cent target again.
Pictured: Healey and Lammy meet Lebanese prime minister in Beirut amid conflict
12:46
Salma Ouaguira
Unions: ‘Working people paid the price for Tories’ economic failures'
12:44
Salma Ouaguira
TUC has claimed working people paid the price for the “Tories’ economic failures”.
In response to the BoE announcement, the general secretary Paul Nowak said: “This rate cut will give relief to millions of families and businesses – and needs to be the first of many.
“Working people didn’t cause the huge spike in inflation. But they have paid the price for the Conservatives’ economic failures with sky-high bills and mortgage payments.
“Labour’s plans to invest in industry and deliver a new deal for workers can help create a new period of economic stability, with prices kept under control and living standards recovering.”
Bailey: Economy has been stronger in recent months
12:39
Salma Ouaguira
Bank of England governor Andrew Bailey is holding a press conference in response to the announcement interest rates are now down to five per cent.
Mr Bailey said inflation pressures have eased and remained on the two per cent target for two months in a row.
He added the “UK economy has been stronger in recent months”. But he warned: “We need to make sure that inflation stays low. We need to put the period of high inflation firmly behind us.”
Hunt chalks up interest rate cut
12:31
Salma Ouaguira
Jeremy Hunt has claimed the latest interest rate cut is part of the Tories’ legacy.
The Tory MP said Labour inherited a “stronger economy” thanks to the “difficult decisions” he took while in No 11.
The shadow chancellor said:“Today’s cut will be welcome news for millions of homeowners and shows that Labour inherited a stronger economy which was on the right track.
“In government, we took difficult decisions that cut inflation from 11.1 per cent to the Bank’s target of 2.0 per cent, paving the way for lower rates.
“Our concern is that further substantive cuts may now take longer because of inflation-busting public sector pay rises rushed through by the Chancellor ahead of the summer.”
Lib Dems hail ‘light at the end of tunnel’ after interest rates announcement
12:24
Salma Ouaguira
The Liberal Democrats have said “there is light at the end of the tunnel” after the reduction of interest rates.
Treasury spokesperson, Sarah Olney MP said: “There is finally light at the end of the tunnel for homeowners but sadly for millions the damage has already been done. Families across the country are already paying off sky high mortgage bills.
“The country is still reeling from Liz Truss’ disastrous mini-budget and years of economic failure under the Conservatives.”
She added: “Today must serve as a reminder that governments should never treat Budgets as an economic experiment for wild policies. We need a return to sound economics and stability after years of Conservative chaos and mismanagement.”
Tory MPs were quick out the gates to claim credit for the cut
12:18
Salma Ouaguira
Tory MPs took just minutes to try to claim credit for the Bank of England’s decision, Archie Mitchell writes.
“Our plan was working,” declared Central Suffolk and North Ipswich MP Patrick Spencer, moments after the announcement was published.
Rachel Reeves will be rebelling at the fortuitous timing of the central bank’s decision, right after Rishi Sunak’s snap general election, with Labour able to bank any bounce felt by consumers.
Our plan was working! https://t.co/RUPWbstloz
— Patrick Spencer MP (@pspencer_CSNI) August 1, 2024
Unite slams interest rates cut is 'too little, too late’
12:16
Salma Ouaguira
Unite has branded the Bank of England’s move to cut interest rate from 5.25 per cent to 5 per cent “too little, too late”.
General secretary Sharon Graham said: “This is too little, too late from the Bank of England. Interest rates still stand at historic highs and this small cut will offer little help to workers struggling with the cost-of-living crisis and record housing costs.
“Decisive action from both the Bank of England and government is urgently needed. Including, a clear roadmap for future rate cuts and a programme of serious investment in our public services and industry to get us out of this crisis.”
Reeves welcomes Bank of England interest rates cut
12:11
Salma Ouaguira
The chancellor has welcomed the Bank of England’s decision to cut interest rates but warned families are still facing soaring mortgages.
Rachel Reeves said: “While today’s cut in interest rates will be welcome news, millions of families are still facing higher mortgage rates after the mini-budget.
“That is why this government is taking the difficult decisions now to fix the foundations of our economy after years of low growth, so we can rebuild Britain and make every part of our country better off.”
Breaking: Bank of England cuts interest rates in major boost for mortgage holders
12:03
Salma Ouaguira
The Bank of England has decided to cut the base rate for the first time since 2020.
The Bank’s Monetary Policy Committee has announced the country’s main interest rate is down to 5 per cent from 5.25 per cent in August 2023.
It comes after new economic data suggested the UK’s cost-of-living crisis has eased in recent months thanks to inflation coming off the boil.
Consumer Prices Index (CPI) inflation hit 2% in May and June, which is the central bank’s target level, indicating that price rises have been brought under control.
Economists stressed that other key indicators of inflationary pressure – mainly services inflation and wage rises – have remained a concern for policymakers.
Pound falls as interest rate decision approaches
11:55
Salma Ouaguira
While we wait the Bank of England to announce the interest rate decision, the pound is still in the red.
The pound is currently down 0.6 per cent or 0.8 of a cent at $1.2775 hitting a four-week low this morning.
Bas Kooijman, CEO and asset manager of DHF Capital, said: “The British Pound is facing pressure as investors await the Bank of England’s (BoE) decision on interest rates, later today.
“Recently, the Pound has weakened, reaching a three-week low and falling against the euro and the dollar. This decline is partly due to expectations that the Bank of England may cut rates. Markets strongly expect the Bank of England to lower rates from 5.25%, which has also contributed to drops in British two-year and five-year bond yields.”
Junior doctors could strike again next year despite pay rise
11:50
Salma Ouaguira
The head of the junior doctors’ union has suggested there could be fresh strikes next year despite securing a 22 per cent pay deal this week, LBC reports.
Co-chairman of the junior doctors committee of the British Medical Association (BMA) Robert Laurenson claimed the “window of opportunity [for strikes] is about 12 months away” because Labour is in a “honeymoon period”.
The BMA recommended that members should accept Wes Streeting’s offer, which included a pay rise of 4.05 per cent and an increase between 8.8 and 10.3 per cent.
But Mr Laurenson said that the union could consider a “long sustained” strike in the next months.
He said: “Now the last two years the strategy was based on a general election and trying to extract a deal from a desperate chaotic government in decline.
“I think the only way to extract a better deal would be to take long sustained action for probably the next 12 months.”
He added the BMA’s strategy was “based on a general election and trying to extract a deal from a desperate chaotic government in decline.”
The union leader said: “I think the only way to extract a better deal would be to take long sustained action [strikes] for probably the next 12 months.”
Seven Just Stop Oil protesters arrested while trying to disrupt Heathrow Airport
11:46
Salma Ouaguira
Seven Just Stop Oil protesters have been arrested on suspicion of public order offences after blocking the passenger search area at Heathrow’s Terminal 5.
The protesters, who tried to disrupt access to the departure gates inside the airport at just before 9am on Thursday, were seen holding signs reading: “Oil Kills” and: “Sign the Treaty”.
Both the Metropolitan Police and Heathrow said minimal disruption was caused, and it is understood the demonstrators were removed within 20 minutes.
Passengers continued to access security lanes either side of where the group sat.
Scotland Yard said: “Seven Just Stop Oil protesters have been arrested on suspicion of public order offences after they blocked a passenger search area at Terminal 5, Heathrow.
“Officers swiftly attended and removed the protesters with minimal disruption caused.”
In full: Rachel Reeves confirms taxes will rise in her first budget in October
11:43
Salma Ouaguira
Taxes will have to rise in October to plug a £22bn hole in the public finances, Rachel Reeves has warned.
Ahead of her first budget, the chancellor refused to rule out hiking capital gains and inheritance tax and pursuing pension reform to fill the gap. And, setting the scene for a brutal financial statement, she said: “I think that we will have to increase taxes in the budget.”
The warning comes after she scrapped a series of infrastructure projects and announced the winter fuel allowance for pensioners would be means-tested in a bid to address the black hole left by the Conservatives.
Our political correspondent Archie Mitchell has the full report:
House of Commons staff offered X-rays after asbestos rules breached
11:32
Salma Ouaguira
House of Commons chiefs have offered staff X-rays at St Thomas’ Hospital after an asbestos breach, once thought to have affected more than 100 people.
The health and safety watchdog has found “material breaches” of asbestos and construction regulations after a probe into works at the Speaker’s on-site accommodation.
The Health and Safety Executive (HSE) confirmed “appropriate action” has been taken, and a spokesperson for the legislature promised staff would “continue to learn lessons from this event” and use new contractor competency checks to ensure they have the necessary skills and qualifications to carry out works.
The House of Commons spokesperson said: “We fully accept the findings from the Health and Safety Executive.
“Our absolute priority is the safety of the those who work on and visit the Parliamentary Estate, and we are continuing to support those who have been impacted by the incident in autumn 2021.
“Since then, we have taken a number of actions to minimise the risk of any incidents occurring across the many construction and maintenance projects on the estate, including additional training for operatives, new competency checks and the implementation of an updated escalation process for serious safety incidents on the Estate.
“We have also commissioned an independent asbestos specialist to provide support for teams, who has undertaken a thorough review of our asbestos management arrangements.
“We will continue to learn lessons from this event to ensure our safety processes remain robust.”
Electoral reform and proportional representation: Ask us anything
11:22
Salma Ouaguira
Political columnist Andrew Grice is here to answer your questions on the alternatives to first-past-the-post and whether there’s enough appetite for reform in Westminster.
If you have a question on electoral reform or proportional representation submit it now, or when I join you live at 12pm on Friday 2 August for the “Ask Me Anything” event.
Register to submit your question in the comments box under this article.
Scroll down or click here to leave your comment.
Breaking: GPs vote in favour to take industrial action
11:03
Salma Ouaguira
Family doctors from the British Medical Association have voted in favour to take industrial action.
More than 8,500 family doctors in England cast their vote in the ballot with 98.3 per cent of support to strike.
The BMA union said: “This means, from today, the Association will encourage practices to choose from a list of ten actions, and practices can choose to implement as few or as many as they think appropriate.
“ Actions may include refusing to share patient data unless it’s in the best interests of a patient, referring patients directly to specialist care rather than following longer and more complex NHS processes and switching off NHS software which tries to cut prescribing costs.”
VOICES: Can ‘Houdini’ Reeves escape her terrifying tax-raising predicament?
10:54
Salma Ouaguira
With Rachel Reeves’s admission of ‘difficult decisions to come’ in her autumn statement, the walls have started to close in on the hitherto superhero chancellor, writes John Rentoul:
Market experts positive on growth but warn about inflation pressures
10:44
Salma Ouaguira
Rob Dobson, director at S&P Global Market Intelligence, said UK manufacturing started the second half of 2024 on an encouragingly solid footing.
He added: “July saw growth of production and new orders strengthen and staffing levels rise for the first time since September 2022.
“Hopes for an economic revival and reduced political uncertainty took confidence to one of its highest levels for two-and-a-half years, with 60% of companies surveyed now forecasting output will rise over the coming 12 months.”
But he said inflationary pressures are still a blot on the copybook, adding: “However, with input costs rising to the greatest extent in one-and-a-half years.
“The ongoing Red Sea crisis and associated freight issues are having a severe impact on prices which are then sustaining a focus on cost-caution and cash flow protection at manufacturers.”
Swinney urged to act to avert strike by refuse staff during Edinburgh festivals
10:42
Salma Ouaguira
The leader of Edinburgh City Council has called on First Minister John Swinney to intervene and prevent refuse workers from taking strike action during the Scottish capital’s busy summer festival period.
Cammy Day warned the eight-day strike later this month, announced by three local government unions, will be a “tough time” for the council, adding “the impact will not be pleasant over the festival time”.
Having already warned strikes could lead to a “stinking Scottish summer”, the unions Unison, Unite and the GMB all announced waste and recycling staff will walk out over pay from 5am on Wednesday August 14 to 4.59am on Thursday August 22, with in 26 of Scotland’s 32 councils affected.
The action comes after the unions rejected the 3.2% pay rise offered, which local government body Cosla insisted was at the limit of affordability for councils.
A similar strike in 2022 was only resolved when the Scottish Government stepped in and provided additional funding for council workers’ pay.
With the unions insisting the offer is less than that being made to their counterparts in England, Mr Day urged Scottish ministers to “find that little more to avert strike action”.
Reform Lee Anderson ridiculed after attack to migrants backfires
10:30
Salma Ouaguira
Reform MP Lee Anderson threatened to do “whatever it takes” against a Travelodge he thought was housing migrants.
The MP for Ashton took to Facebook to raise concerns, saying: “I do not want groups of young men who have entered our country illegally roaming our streets. It is not racist or bigoted to say this. I love my constituency and will do whatever it takes to protect it.”
But the attack backfired after he was forced to rectify after realizing the hotel was in fact hosting international NHS nurses.
Responding to his post, one user, Neethu James, said: “I am appalled to see the comments on here. Yes there were two bus loads of people there, who are mostly international nurses and their families working in Kingsmill, and nursing homes in and around Sutton and Mansfield.
“They were on a weekend trip to have a family holiday together. None of them are on benefits, nobody lives in Travelodge and all of them pay taxes like you all do.”
Stride: ’Outdated’ Conservative party needs ‘radical overhaul’
10:18
Salma Ouaguira
Tory leadership contender Mel Stride has said the Conservative party is “outdated and over centralised”.
The shadow work and pensions minister said he will “revolutionalise” the party campaign machine if he becomes the new leader.
He tweeted: “Our party structure is outdated and over centralised. We need a radical overhaul and fast.
“I will revolutionise CCHQ and our whole campaign operation into a dynamic locally focused campaigning machine to win the upcoming local elections and the General Election.”
Our party structure is outdated and over centralised.
— Mel Stride (@MelJStride) August 1, 2024
We need a radical overhaul and fast.
I will revolutionise CCHQ and our whole campaign operation into a dynamic locally focused campaigning machine to win the upcoming local elections and the General Election. pic.twitter.com/MxP4U0ksVa
UK manufacturing soared to a two-year high in July
10:08
Salma Ouaguira
The UK’s manufacturing sector has seen activity jump to a two-year high in July as growth in production and new orders strengthened, according to fresh data.
The closely watched S&P Global UK manufacturing PMI survey recorded a reading of 52.1 for July, up from from 50.9 in June and above the 51.8 indicated in last month’s “flash” estimate.
The sector has now remained above the 50 mark for the past three months.
Any reading above 50 means a sector is in growth, while a score below this means it is contracting.
EU reveals its eight demands for a better relationship with Britain
09:58
Salma Ouaguira
The EU has warned Sir Keir Starmer his attempt to repair relations with the bloc may fail if he does not meet a list of eight demands, it has emerged.
The prime minister has made rebuilding ties with Brussels a top priority since the general election, after years of mistrust between the two sides over Brexit.
And the European Commission has welcomed Sir Keir’s positive approach, but issued a list of tests through which the UK can “demonstrate real government commitment” to its withdrawal agreement with the EU.
Our political correspondent Archie Mitchell has the full story:
Lord Frost: Labour must not ‘fall for’ EU’s negotiating ‘playbook’,
09:47
Salma Ouaguira
Lord Frost has warned Labour will be
