Labelling Trump’s lies as ‘disputed’ on X makes supporters believe them more, study finds
UK consumer confidence tumbles as households fear ‘painful’ budget; UK debt hits 100% of GDP – as it happened
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Fears of a ‘painful budget’ next month have knocked morale among UK consumers – a bad sign for the economy.The latest poll of UK consumer confidence has fallen sharply this month, with optimism over people’s personal finances, their purchase intentions, and the state of the economy all sharply lower than in August.The index, published by data provider GfK, has dropped to -20 this month, down from -13 in August.That is the lowest reading since March, when the index was -21,Consumer confidence had been improving as the economy grew robustly in the first half of this year and inflation dropped
UK debt hits 100% of GDP, the highest level since 1960s
The scale of the challenge facing Rachel Reeves ahead of the autumn budget has been laid bare by a rise in Britain’s national debt to the highest levels since the 1960s and a collapse in consumer confidence.Figures from the Office for National Statistics (ONS) showed the government’s outstanding debt pile reached 100% of gross domestic product in August, the highest level since 1961, as monthly borrowing rose by more than expected.Labour has warned repeatedly that the economic inheritance from the Conservatives will require “painful” decisions ahead of the 30 October budget, including tax rises and cuts to welfare benefits and other spending.Figures released by data provider GfK on Friday revealed a sharp fall in consumer confidence in September to the lowest level since March, blaming households’ concern about Reeves’s cuts to winter fuel payments and the prospect of further spending restraint at the budget.“Consumers’ reaction to the government’s warnings shows that Reeves will need to be careful to not overdo the fiscal tightening next month,” said Elliott Jordan-Doak, a senior economist at the consultancy Pantheon Macroeconomics
Packaging tax will raise price of many everyday items, say UK firms
A new packaging tax to fund recycling will push up the price of many products including soft drinks, beer, kitchenware and small appliances such as kettles and toasters, companies have warned.Pev Manners, the managing director of the cordial maker Belvoir Farm, said the preliminary cost for glass in the extended producer responsibility (EPR) for packaging was “nuts”. The brand would have to pass on the levy as the fees would wipe out its annual profits, he said.The EPR, which comes into effect next year, shifts the cost of household recycling from councils back on to the companies using the packaging.In August, the Department for Environment, Food and Rural Affairs (Defra) published its “first estimate” of the rates to be charged for each tonne of material, giving companies a price range from the lowest to the highest
Mars brings Marathon name back in UK as nostalgia rises for retro sweets
Depending on your age and resistance to change, potentially it never went away, but 34 years after the shock Snickers rebrand the Marathon bar is making a comeback in the UK.The decision to drop the British name for the treat caused uproar back in 1990 and some diehard fans have been complaining about it ever since. So, with this nostalgic audience in mind, Mars has announced it is making a “special Marathon retro edition”.The confectionery company said the revival was to mark a milestone for its UK business.“We’re excited to bring back the Marathon bar branding for a limited period,” said the senior brand manager Steve Waters
Thames Water warns its cash may run out as soon as December
The UK’s biggest water supplier is scrambling to shore up its finances, admitting it faces a shortage of cash as soon as December.The warning from Thames Water comes as some of its biggest lenders are considering easing repayment terms as it fights for survival, with lenders concerned their loans risk being wiped out if the company is temporarily nationalised.Talks with creditors would only allow for enough funds to last until spring next year. Any agreement would therefore mark just a step on the road to a potential restructuring – staving off the immediate risk of insolvency.The company announced on Friday morning it was seeking fresh repayment terms, confirming it had only about £1
UK consumer confidence falls sharply amid fears of ‘painful’ budget
Consumer confidence in the UK has fallen sharply amid growing concerns over government plans for a “painful” budget, risking a hit to the economic recovery from the cost of living crisis.The latest barometer of sentiment from the data company GfK found consumer confidence fell to the lowest level since March, wiping out progress made this year to rebuild household morale.Neil Bellamy, the consumer insights director at GfK, said the “major correction” in the outlook for personal finances had come despite a return to stable inflation earlier this year, lower borrowing costs and resilient wage growth.“Following the withdrawal of the winter fuel payments, and clear warnings of further difficult decisions to come on tax, spending and welfare, consumers are nervously awaiting the budget decisions on 30 October,” he said.Keir Starmer said last month that the new government would need to take “painful” decisions in the autumn budget after finding what Labour calls a “£22bn black hole” in the public finances
Keir Starmer and top Labour colleagues to stop taking clothes gifts from donors
Lords appointments must be transparent | Letter
Focus on NHS and cost of living or lose former Tory voters, Labour told
‘He could be here more’: Clacton split over Nigel Farage’s first months as MP
Reform can learn from Lib Dems on ground campaigning, says Richard Tice
Ministers and union leaders to hold crunch talks over workers’ rights plans