Business

The US central bank has increased interest rates by 0.75% to combat inflation – the sharpest hike in 28 years. The Federal Reserve signalled more rate rises to come and projected a slowing economy in the months ahead, along with rising unemployment. The bank raised its benchmark rate to a range of 1.5% to 1.75%,

The boss of Royal Mail has told Sky News it is keeping prices “under review” as costs surge across the business and that unions threatening strikes must understand the “changes that are required so we can compete in the market”. Simon Thompson was speaking as the company faces challenges to its modernisation plans across its

The pound has fallen to its lowest level against the dollar since the onset of the pandemic, fuelled by concerns about the economy and the prospect of a second Scottish independence referendum. Scotland’s First Minister Nicola Sturgeon said earlier that her government had an “indisputable mandate” for another vote and was ready to set out

A consumer rights expert has hit out at the aviation regulator while accusing airlines of presiding over a ‘blatant flouting of consumer rights’ following the recent flight chaos. Sue Davies, head of consumer rights at consumer group Which?, told the Business, Energy and Industrial Strategy Committee (BEIS) committee of MPs there were serious, historic, failures

The European Commission has warned it will take “proportionate action” to secure the legal implementation of the Northern Ireland Protocol after the UK government published legislation which will override the mechanism. The commission’s vice president Maros Sefcovic said the EU viewed the UK’s actions with “significant concern” and that it would consider what steps to

A leading business group has called for the prime minister and chancellor to take “vital actions” to avoid a recession after it downgraded its outlook for economic growth in the UK. The CBI warned there was a risk that the economy would be a “distant second” to politics in the coming months because of the

The UK economy contracted by 0.3% in April, according to official figures released as the CBI, Britain’s biggest employers’ group, demanded “vital actions” from the government to prevent an inflation-driven recession. The Office for National Statistics (ONS) had been expected by economists to confirm a slight rise in gross domestic product (GDP) for the month

The government has ordered an “urgent” review by the competition regulator into the fuel market after pump prices hit new record highs. Business Secretary Kwasi Kwarteng said in a letter to the Competition and Markets Authority (CMA) that there was “widespread concern” about the pace of price rises and public frustration that a cut in

Agency workers could be called in to replace striking rail staff, according to a report. Labour’s Tony Blair introduced a restriction on using agency staff to stand-in for striking workers when he was prime minister. But Transport Secretary Grant Shapps told The Sunday Telegraph that ministers are looking at ways to repeal this. It comes

Lenders to Matalan, one of Britain’s biggest budget retailers, are preparing for crunch talks about the chain’s future financing against a backdrop of soaring inflation and deepening economic gloom. Sky News has learnt that Matalan’s senior bondholders are lining up Perella Weinberg Partners to advise them on their options with a £350m repayment due to

More than half of UK households have cut down on their energy usage as a result of the cost of living crisis, new data suggests. A survey carried out by the Office for National Statistics (ONS) revealed that 52% of Britons are using less gas and electricity in a bid to cut down costs. The

The boss of Wizz Air is facing a backlash from unions, including pilots’ representatives, after he urged fatigued staff to go the “extra mile” as the industry battles flight cancellations caused by staff shortages. Jozsef Varadi made his remarks to workers after the company warned of fare increases ahead following the publication of financial results

The £100 tank of unleaded petrol is another milestone on the relentless upward path of fuel prices. Watching the price click in to three figures for the first time will draw the breath of anyone filling the 55-litre tank of a family saloon. But whichever way you count it, prices have been kicking consumers in

The average cost of filling a typical family car with petrol costs more than £100 for the first time, the RAC has said. The situation will likely worsen the cost of living crisis for motorists and for customers, as businesses will at some point look to pass on their rising costs. RAC fuel spokesperson Simon

UK economic growth will “grind to a halt” this year before briefly falling into negative territory, according to the British Chambers of Commerce. The business group downgraded its 2022 growth forecast from 3.6% to 3.5%, and said inflation would reach 10% in the last quarter – far higher than average wage rises. Investment growth expectations

Rishi Sunak has been urged by one of the world’s leading economic authorities to cut taxes or raise spending in the face of looming stagnation next year. The UK is poised for the weakest economic growth in the developed world next year, according to new forecasts from the Organisation for Economic Co-operation and Development. In

Cazoo, one of Europe’s largest online car retailers, has said it plans to cut nearly 750 jobs in a bid to save £200m as inflation and supply chain issues hit its business. The company said the decision had been made to scale the business down to a more sustainable size, and position it for profitable

The London Metal Exchange (LME), one of the world’s most important commodity trading hubs, is being sued by a US hedge fund for $456m (£363m). The lawsuit, filed by Elliot Management at the High Court in London last week, alleges that the LME acted “unreasonably and irrationally” when it decided to cancel trading on a

Retailers, along with pubs and restaurants, have enjoyed a “welcome boost” from the four-day weekend celebrating the Queen’s Platinum Jubilee, according to two measures of consumer spending. Early data covering sales and the volumes of people out and about for the public holiday suggested Britons spent heavily on having fun with friends and family following

Three-quarters of Londoners worked from home at least one day a week in spring 2022, according to new research from King’s College London’s Policy Institute and Business School. This is a marked shift from before COVID-19, when less than half as many Londoners worked from home. The researchers surveyed more than 2,000 people with a