News about UK

Homes available for sale in the UK have reached their highest level for this time of year since 2014, according to Rightmove, limiting price growth as sellers face elevated mortgage rates. Average asking prices for new listings were broadly flat at £371,015, up 1% month on month but down 0.1% year on year. Northern regions saw the biggest monthly falls, while London rose 2.5% after a 6.0% decline over the summer. The average two-year fixed mortgage rate rose from 5.29% to 5.55%, sales agreed fell 8% and new buyer enquiries fell 9% year on year, and some buyers may be waiting for details of the Your First Home scheme.

HMS Prince of Wales, Britain's largest warship, has left Portsmouth Naval Base to lead the UK Carrier Strike Group to the Arctic and North Atlantic, marking the second phase of Operation Firecrest focused on readiness, training and NATO interoperability. It is accompanied by the Type-45 destroyer HMS Dauntless and carries an air group that includes F-35 jets and several types of helicopters. More than 1,200 British personnel are deployed, working with Norway, Denmark and Germany. The ship will host military and political leaders in Oslo for forums on Northern European security. A former Royal Navy chief has warned earlier this year that the navy is in its most parlous state in the 60 years he has been on the active list.

Apple is reportedly preparing for a legal dispute with the UK Competition and Markets Authority (CMA), which plans to publish consultation proposals next week on Apple's position in contactless payments. According to the Financial Times, the CMA plans to argue that Apple holds unfair control over the UK 'tap-to-pay' market and will call for iOS changes that let iPhone users choose an alternative payment service as default instead of Apple Pay. The proposals follow Apple's 'strategic market status' designation under new digital competition rules, which carries penalties of up to 10% of global turnover, and complaints from lenders and fintechs about the 0.15% fee on credit card transactions made through Apple Pay. Apple restricts third-party access to the iPhone's NFC chip, citing user privacy and fraud prevention, and two people briefed on the matter said the company is likely to appeal.

Think tank IPPR urged Britain to make EU membership its 'medium-term' goal, arguing that the UK lacks the scale to handle Russian aggression, American unreliability and Chinese coercion on its own. Ahead of the UK-EU summit in Brussels, where Prime Minister Andy Burnham will set out relationship options, IPPR said 'hedging' between the US and Europe was a strategy for survival rather than success. A Persuasion UK poll found 52% of people backed rejoining against 29% opposed, though budget contributions and replacing the pound with the euro could damage that support. The government responded that the current Brexit deal had weakened immigration control and growth.

Think tank IPPR says Britain should make EU membership its medium-term goal as Andy Burnham prepares to outline options for the UK's relationship with Europe at the UK-EU summit in Brussels on November 20. The report argues that Britain lacks the scale to handle Russian aggression, American unreliability and Chinese coercion alone, and that hedging between the US and Europe is a strategy for survival rather than success. It suggests first building support through cooperation on defence, manufacturing and democratic resilience, and possibly joining the EU's Made in Europe scheme, without an immediate referendum. Polling for the think tank found 52% of people back rejoining the EU, compared with 29% opposed. The Government says the Brexit deal it inherited has weakened border control and growth.

According to Reuters citing The Telegraph, Microsoft (MSFT) has withdrawn from an AI data center in Loughton, Essex that Nscale was building for it, though no reason was given. Grid officials reportedly told Nscale power would not be available until the 2030s, and Nscale says it remains committed to the site and is exploring other power sources. The site was planned to house about 23,000 Nvidia chips, roughly 11.5% of a program of about 200,000 chips. Meanwhile, Microsoft's cash capex in the June quarter reached $35.80 billion, more than double the year-earlier figure. The article argues the problem is grid timing rather than AI demand, and Microsoft reports results on October 28.

The IPPR think tank urges Britain to make EU membership its medium-term goal as Prime Minister Andy Burnham prepares to set out relationship options at the UK-EU summit in Brussels on November 20. The report says Britain lacks the scale to face Russia, the US and China alone, and that balancing between the US and Europe is a strategy for survival rather than success. It proposes working with the EU on defence and manufacturing, including possible inclusion in the 'Made in Europe' scheme, as steps toward membership, while noting the government needs time to build the case. Polling in June found 52% support for rejoining and 29% opposition, though concerns over EU budget contributions and replacing the pound with the euro could significantly damage support. A government spokesman said the threadbare Brexit deal has weakened control of illegal immigration and tangled businesses in red tape.

The think tank IPPR says Britain should make EU membership its medium-term goal as Andy Burnham sets out options for the country's relationship with the bloc at the UK-EU summit in Brussels on November 20. The report argues Britain lacks the scale to handle Russian aggression, American unreliability and Chinese coercion alone, and that hedging between the US and Europe is a strategy for survival rather than success. It proposes working with the EU on defence, manufacturing and democratic resilience as steps toward membership. It also warns that joining the EU's 'Made in Europe' scheme could require aligning with EU tariffs on Chinese electric vehicles, potentially putting net zero targets at risk. Polling by Persuasion UK in June found 52% of people support rejoining and 29% oppose, though concerns about EU budget contributions and replacing the pound with the euro could damage support.

Profit warnings from London-listed companies rose to 65 over the summer, up from 59 in the second quarter and the most since the fourth quarter of 2024, when 71 were issued, according to EY. Over half of firms blamed geopolitical uncertainty, with 38% citing the Middle East conflict, while others pointed to cancelled or delayed contracts and weaker consumer confidence. Construction and household goods had the most warnings at 8, including 6 from housebuilders, taking the housebuilders' year-to-date total to 14, above the 10 issued at the peak of the 2008 financial crisis. EY said this is not a conventional economic cycle, and housebuilders face cost and interest rate pressure while details of the government's first-time buyer support remain unconfirmed.

According to Rightmove, asking prices for homes newly listed in London rose 2.5% between September 12 and October 10, while Inner London rose 3.9%, unlike the national decline of 0.1%. London's rise followed a weak summer, when asking prices fell 6% across July and August, and sellers hope to capitalize on buyers wanting to move before Christmas. Rising mortgage rates have added about £250 to new mortgage payments since February, and sales agreed were 8% lower and buyer inquiries 9% lower than a year earlier. Listings remain at their highest level for this time of year since 2014, 38% of homes have had price cuts, and offers take 78 days (11 weeks) on average to be accepted. Rightmove suggests some London sellers may be too optimistic on price.

Chancellor John Healey is reportedly considering raising the surcharge on bank profits above £100million from 3% to 8% at the upcoming Budget, reversing a cut introduced in April 2023 under Jeremy Hunt. The change could raise some £2billion for the Exchequer, but banks warn it could inflict a £20 billion hit on the economy. Lenders may try to recoup the cost by raising mortgage rates and cutting savings rates, though that risks losing customers to rivals. Conservative and City groups say the tax would stifle investment and harm Britain's competitiveness, while the TUC backs it and estimates it would raise £2.25billion a year. The Treasury said decisions on tax are for the Chancellor to announce at fiscal events.

One-year fixed savings rates have reached 4.41%, the highest since September 2024, and the average fixed rate across all terms is 4.49%. Personal finance experts say savers could earn about £215 more a year on £10,000 by choosing a 5.15% account instead of one paying 3%. Caitlyn Eastell of Moneyfacts notes that non-ISA fixed rates have risen for over six months, and top rates across all terms are above 5% for the first time since December 2023. Fixed bonds lock money away for the full term, so savers risk missing out if rates rise further. Meanwhile, £4.4 billion flowed into ISAs in August, ahead of the cash ISA changes in April.

The TUC estimates UK households have paid an extra £13,961 on bills on average since 2021, or £2,792 a year, amid soaring inflation and a difficult backdrop including the Covid crisis, war in Ukraine and war in Iran. TUC general secretary Paul Nowak said working people have borne the brunt of successive crises and that high bills are squeezing consumer spending and holding back the economy. A Resolution Foundation study found working families are £2,900 a year worse off over the past five years compared with inflation at around 2 per cent a year. Its chief economist James Smith said any new help must be targeted at the poorest families, starting with energy bills, as public finances leave less room than ever to provide support.

HMS Prince of Wales, the UK's largest warship, left Portsmouth on Sunday to lead the UK Carrier Strike Group on a deployment to the Arctic and North Atlantic, marking phase two of Operation Firecrest, focused on readiness, training and NATO interoperability. It sails with the Type-45 destroyer HMS Dauntless and carries an air group of F-35 jets, Merlin and Wildcat helicopters and Malloy drones. The Royal Navy says more than 1,200 British personnel are deployed, working with Norway, Denmark and Germany. The UK government says the deployment will help keep key energy, trade and communication links in the region secure, and the carrier will host military and political leaders in Oslo to discuss Northern European security.

Farmers have urged Prime Minister Andy Burnham to scrap the inheritance tax on family farms in the upcoming budget, saying the policy often forces families to sell land to pay the bill. The threshold was raised from £1 million to £2.5 million (£5 million for married couples) after a backlash, but farmers say that is not enough. Sandy Wade-Gery, whose Bedfordshire farm has been in his family since 1536, warned that his son could be the last William at the farm. The Conservatives and Reform UK have vowed to reverse the changes if they win the next general election, while the NFU opposes the changes and the Countryside Alliance calls for the tax to be scrapped entirely. There is speculation that further changes could be announced in next week's budget as Burnham seeks to mend ties with farmers.

According to Hargreaves Lansdown, new state pensioners under 77 could receive up to about £488 more a year, as the triple lock forecast points to a 3.9% rise from April 2027. The increase is based on average wage growth of 3.9% rather than inflation of 2.9%, with the final figure due at the Budget on October 28. A full new state pension would rise from £241.30 to £250.70 a week, and a full basic state pension from £184.90 to £192.10 a week. New Prime Minister Andy Burnham has confirmed the triple lock will stand for the rest of this Parliament, despite earlier plans to scrap it from 2030. Helen Morrissey of Hargreaves Lansdown says the rise will help but will only cover the basics, urging people to boost pension contributions.

NatWest has cut some fixed-rate mortgage deals, including a two-year fix at 5.04% and a five-year fix at 4.98%, while HSBC, which currently offers a 5.01% two-year and 5.03% five-year fix, looks set to start offering sub-5% fixes. NatWest's largest reductions, up to 0.17 percentage points, are on five-year remortgage deals at 85% and 90% LTV, and HSBC has cut across its purchase and remortgage ranges from 60% to 90% LTV. Industry commentators said the cuts reflect lenders competing for business rather than cheaper funding, as five-year swap rates rose from 4.619% to 4.723% over the past month. Other lenders could come under pressure to review their own pricing.

Campaign group FairFuelUK says more than 30,000 motorists, families, small businesses, tradespeople, farmers and hauliers have emailed the Prime Minister and Chancellor within 24 hours, ahead of the Budget on 28 October. The group is calling for an immediate cut and permanent freeze to Fuel Duty, plus a PumpWatch regulator with legal powers to investigate pump prices, and asks ministers to consider measures used in more than 40 countries. It also wants to meet founder Howard Cox to discuss his 20-year transport strategy, developed with input from more than 80,000 drivers. Cox argues cheaper fuel would lower business costs and inflation, while respondents, including a rural pensioner and a self-employed driving instructor, describe high fuel costs and limited public transport as a serious burden.

FairFuelUK says more than 30,000 people emailed Prime Minister Andy Burnham and Chancellor John Healey within 24 hours, urging urgent action on fuel costs before the Budget on October 28 as petrol and diesel prices rise amid conflict in the Middle East. Many respondents, including a pensioner in rural Wales and a self-employed driving instructor, say they rely entirely on cars for hospital visits, shopping and work because bus services are unreliable or absent. Demands include cutting Fuel Duty, a permanent freeze, a PumpWatch regulator with legal powers over excessive pricing, and recognising affordable mobility as a driver of growth. Founder Howard Cox argues that cheaper fuel would lower costs and inflation, and supporters ask to meet him to discuss a 20-Year Transport Strategy developed with input from more than 80,000 drivers and stakeholders.

A Business Ownership Index study for BusinessesForSale.com finds 60% of UK adults believe traditional careers are less secure than before, and only 21% expect a traditional path with a single employer. The findings come as UK unemployment reached 1.78 million, a 4.9% rate, with 16 to 24-year-olds at 16.4%. Some 76% say wage growth has failed to keep pace with inflation, and 54% believe owning a business is the best way to maximise earnings, rising to 65% among 18 to 24-year-olds. Yet 54% say entrepreneurship is poorly supported, and 35% are unaware they could buy an established business rather than start one. The article's examples argue that buying an existing business can offer faster access to customers, staff and cash flow.