High energy prices threaten UK’s status as manufacturing power, business groups say

The UK is at risk of losing its status as a major manufacturing centre after a sharp rise in energy prices that has forced about 40% of businesses to cut back investment, according to a report by the CBI and Energy UK.In a stinging message to ministers, the report said British businesses – from chemical producers to pubs and restaurants – were being undermined by a failure to cap prices and upgrade the UK’s ageing gas and electricity networks.A far-reaching review of outmoded regulations that govern the sale and supply of energy is also needed to spur investment and boost economic growth, the report said.Energy UK, which represents more than 100 electricity generators and retailers, said business electricity costs remained 70% higher than before Russia’s invasion of Ukraine, while gas prices were 60% higher.A survey underpinning the report found that almost 90% of companies have seen energy bills rise over the last five years and four in 10 had reduced investment as a result

Don’t be fooled by recent good news, the UK economy is still in a precarious state

Too many Labour MPs want it all, and no amount of pleading from the top of government about the depleted public finances seems to make a difference.The mainly leftist MPs want all the wrongs of the last 15 years put right and quickly. Their next opportunity to demand more cash arrives when Rachel Reeves delivers her spring statement on 3 March.All the signs are that the chancellor will try to marry caution about the public finances – directed at backbench MPs – with an optimistic message about the economic recovery to cheer the public.Whatever she says, there will be many on her own side who will demand that economic orthodoxy be ditched in favour of a bolder outlook delivered with a Liz Truss-like energy

‘Doubling down on meat’: is the UK’s love affair with vegetarian food over?

McDonald’s, Wagamama and others scale back plant-based choices in the UK in favour of ‘high-margin’ meat-led dishesIn 2021, vegetarianism and veganism were booming and menus reflected it. Restaurants and fast-food chains rapidly expanded their meat-free offerings, racing to meet growing demand from diners. McDonald’s launched its first plant-based burger, joining a wave of operators embracing non-meat options.Fast forward to 2026 and the landscape looks markedly different. Last month, the fast food chain announced it was axing most of its vegetarian range – sparing only its McPlant burger – owing to weak sales

Stock markets rally and US dollar dips after supreme court rules against Trump’s sweeping tariffs; Hat-trick of good UK economic news – as it happened

Stock market investors are welcoming the supreme court’s rejection of Donald Trump’s global tariffs.The Dow Jones industrial average, of 30 large US companies, is up 0.3% or 138 points at 49,533 points, having dipped slightly in early trading before the ruling was announced.The S&P 500 share index, which had opened flat, is now up 0.32%

Brighter UK economy gives Reeves a springboard for March statement

The economic backdrop to Rachel Reeves’s upcoming spring statement appeared to brighten on Friday after a trio of reports painted a better-than-expected picture of the UK economy.Record monthly public finances, a surge in retail spending and accelerating business activity offered the most coherent picture of recovery since last autumn, economists said, and provided the chancellor with a more positive narrative before her 3 March statement.“It’s been a hat-trick of good economics news for once for the UK,” said Sandra Horsfield, a senior economist at Investec bank. “We had a disappointing end to last year, but as things look, we may be starting 2026 on a much brighter note.”Public sector finances posted their biggest monthly budget surplus since records began in 1993, of £30

Aston Martin issues another profit warning and sells F1 naming rights for £50m

Aston Martin has warned that its losses will be worse than expected and sold its permanent naming rights to its Formula One team, as the struggling British carmaker battles to stabilise its finances.The luxury carmaker, majority-owned by the Canadian billionaire Lawrence Stroll, said its earnings for 2025 would be worse than City forecasts, its fifth profit warning since September 2024.Analysts had been expecting the struggling company to post a loss of £184m at its annual results, due to be published next Wednesday.Aston Martin delivered nearly 10% fewer cars last year than in 2024 – 5,448 in total – as US trade tariffs battered sales and the company fell short on lucrative special edition deliveries. Shares fell as much as 4% on Friday morning before recovering some ground, down 2%