10+ mon, 1+ day ago (516+ words) The chancellor is expected to unveil plans to create "Europe's Silicon Valley' as she stakes government success on kickstarting economic growth If you judge a speech by the advance headlines (and, yes, that is exactly how some people in government do judge these things), the pre-speech part of the exercise has gone well. Jonathan Reynolds, the business secretary, has been giving interviews this morning and on BBC Breakfast he defended the plan to green-light airport expansion, including a third runway at Heathrow. It's not just about aviation expansion, there's a whole range of things." We're not going to have endless judicial reviews effectively try to second-guess democratically-elected decisions from the elected government of the day. We will follow process, but that process has got to be one that can deliver the things. We simply cannot afford to say we don't…...

8+ mon, 3+ week ago (753+ words) Policy Exchange report blames austerity for breakdown in policing and criminal justice Soaring levels of crime are costing Britain's economy as much as "250bn a year, according to a report that blames austerity for a breakdown in policing and criminal justice. The report by the centre-right thinktank Policy Exchange, backed by the former Conservative chancellor and home secretary Sajid Javid, said that years of cuts to funding for the police, prisons and courts had contributed to a dramatic rise in crime which was holding back the economy. The report said an "epidemic" of shoplifting, alongside other crimes, was hitting businesses, the public sector and individuals hard, with a direct cost to the economy of about "170bn a year, or about 6.5% of gross domestic product (GDP). In addition, it estimated there were intangible effects on behaviour derived from a fear of crime. Although…...

8+ mon, 2+ day ago (762+ words) Chancellor confirmed welfare cuts of "4.8bn in spring statement, but insisted the priority was to restore stability to the public finances Good morning. Day two after a budget-type event is when the most insightful analysis tends to come out, and this morning the two heavyweight public spending thinktanks, the Resolution Foundation and the Institute for Fiscal Studies, are delivering their considered verdicts. And Rachel Reeves is doing interviews now defending her decisions.Here is our overnight splash about the spring statement.You're going to have to come back for more. You're going to have to come back for more cuts or tax rises in the autumn. That's the truth, isn't it?What I'm saying is that there are loads of things that this government are doing that are contributing to growth. And the Office of Budget Responsibility said yesterday that the…...

8+ mon, 3+ day ago (757+ words) Keir Starmer will face Kemi Badenoch at PMQs before the chancellor delivers her spring statement Good morning. This time last week Stephen Timms, a welfare minister, was doing an interview round to defend the "5bn disability benefit cuts announced the previous day, and he refused to rule out further benefit cuts in the future. Most of us thought he was being careful because of the risk of further cuts later in this parliament, or possibly later this year. I don't think anyone expected extra cuts to be announced within days.But that is exactly what has happened. As Heather Steward, Kiran Stacey and Richard Partington report in the Guardian splash, only hours before the spring statement, the Treasury has revealed that the disability benefit cuts are going to be even deeper than the ones set out last week. That is because…...

4+ mon, 6+ day ago (402+ words) Rolling coverage of the latest economic and financial news Trump announces Japan trade deal amid speculation over future of PM Ishiba Shares in Japan's carmakers have soared, on relief that a trade deal with the US has been reached. Japan's prime minister Shigeru Ishiba revealed overnight that auto tariffs on Japanese cars will be cut to 15% under the agreement, without any quota on the number of imports. Toyota's share price has jumped by 14.5%, Honda are up 10.8%, Subaro rose by 16.8% and Mazda gained 17.75%. Financial markets are cheering the news that Donald Trump has announced a trade deal with Japan. Stocks are surging in Tokyo, where the Nikkei index has jumped by 3.75% and the wider Topix has rallied by 3.55%. Other markets across Asia-Pacific are also higher, while the relief rally could drive Britain's FTSE 100 to a new record high when trading begins....

7+ mon, 4+ week ago (1825+ words) In today's newsletter: The administration's sweeping tariffs have left markets bracing for volatility " but what impact will they have on an unsteady global economy?Good morning. According to Donald Trump, it's "liberation day: the advent of a new trade order in which Americans reap the benefit of massive tariffs on imports, and the rest of the world picks up the tab.Unsurprisingly, the United States' trading partners tend to take a very different view. And they are doing everything they can to avoid being passive targets for the White House's carnivorous vision of American exceptionalism.Israel-Gaza war | Israeli Defence Minister Israel Katz announced a major expansion of the military operation in Gaza on Wednesday, saying large areas of the enclave would be seized and added to the security zones of Israel. Follow the latest here.Israel-Gaza war | Some of the…...

7+ mon, 6+ day ago (1844+ words) In today's newsletter: "The chancellor faces a pivotal moment in the US as she navigates high-stakes negotiations with the Trump administrationGood morning. I'm Annie Kelly, I'll be bringing you First Edition alongside Archie for the next few weeks.It's probably fair to say the annual spring meeting of the International Monetary Fund (IMF) has not traditionally been an event high on drama. Not so this year, as Rachel Reeves and her fellow finance ministers from around the globe have been blown into Washington DC on the chilly winds of global economic chaos caused by Donald Trump's "America First" economic policies, pithily described in a recent Guardian leader as "part oligarchic enrichment scheme, part mobster shakedown".Ukraine | At least nine people have been killed and more than 60 wounded in a "massive" missile attack on Kyiv, according to Ukraine's state emergency service....

6+ mon, 3+ week ago (524+ words) Almost two-thirds of people believe economy will get worse in next 12 months amid tariffs uncertainty and Ukraine warConsumer confidence in the UK economy has fallen to the lowest levels since the height of the cost of living crisis, as people worry about the impact of US tariffs and Russia's war in Ukraine.Almost two-thirds of people believe the economy will get worse in the next 12 months, while only 11% think it will improve, according to a survey from the consumer group Which?. Continue reading... Almost two-thirds of people believe economy will get worse in next 12 months amid tariffs uncertainty and Ukraine war Consumer confidence in the UK economy has fallen to the lowest levels since the height of the cost of living crisis, as people worry about the impact of US tariffs and Russia's war in Ukraine. Almost two-thirds of people…...

4+ mon, 2+ week ago (467+ words) Rolling coverage of the latest economic and financial news Britain's postal operator is being relieved of the obligation to deliver second-class letters six days a week, as part of reforms to the service. Regulator Ofcom has announced that from 28 July, it will allow Royal Mail to deliver Second Class letters on alternate weekdays, but no longer on Saturdays " but still within three working days of collection. Ofcom says it is making the change to allow the UK's universal postal service " guaranteeing delivery to anywhere in the country at a fixed price - "to survive. It points out that, since 2011, Royal Mail has been required under the universal service obligation to deliver First and Second Class letters six days a week. But the number of letters sent each year has more than halved over that time. Natalie Black, Ofcom's Group Director for…...

7+ mon, 2+ week ago (1766+ words) In today's newsletter: White House officials send mixed messages over Trump's stunning U-turnGood morning. Two main pieces of news from Donald Trump yesterday: he has rolled back water efficiency standards to "make America's showers great again, because he likes "to take a nice shower to take care of my beautiful hair; and he has rolled back the exorbitant tariffs he applied to many countries last week to 10% " but increased them for China. "No longer will showerheads be weak and worthless, the White House said. This will come as welcome news for the many investors who have recently been taking a bath.It was a pretty chaotic change, all told: there were contradictory messages from Trump's advisers on which countries would be affected, why he did it, and what Beijing should expect to happen next. Still, the markets breathed a large…...