After last week was dominated by economic data and interest rates, this week looks set to focus more on the UK’s productivity problem, with businesses hoping to start the run-up to Christmas with a boost in takings despite the public still taking a cautious stance over spending. With the Budget later than usual, that might well continue.
The government have given the green light for a second runway at Gatwick to be planned and built, while an entrepreneur is attempting to build a gas storage site which would add 50 per cent to Britain’s capacity for emergency access against the threat of blackouts. In the US, Donald Trump has confirmed the buyers of TikTok include Larry Ellison and Michael Dell, two of the world’s ten richest billionaires.
In stock market news, the FTSE 100 is down in early trading, after falling around 0.7 per cent last week.
Welfare reform happening all the time – minister
Work and Pensions Secretary, Pat McFadden, says welfare reform needs to continue to be on the agenda and the benefits bill is unsustainable.
“Welfare reform is happening all the time. Anyone who looks at the current system shouldn’t conclude that the thing to do is to circle the wagons around it,’” he said.
“’Look, I’m not ruling anything out. Welfare reform is really important. At the moment this system is unhealthy for people and in the long run is pushing up the benefits bill because we’re not getting the help to people who could work,” he added.
Karl Matchett22 September 2025 13:00
Work continues to recover after cyber attack hit Heathrow and other airports
Passengers at Heathrow could face another day of disruption after a cyber attack affected several major European airports.
Terror law watchdog Jonathan Hall KC said it was possible state-sponsored hackers could be behind the attack on Collins Aerospace, which operates check-in and boarding systems.
On Monday morning Heathrow said work was continuing to “resolve and recover” from the “outage” in the system.
Mr Hall, the independent reviewer of terrorism legislation, said attributing the attack would not be easy.
Karl Matchett22 September 2025 12:45
Barclays analyst eyes up 3.5% interest rate early next year
Barclays analysts still believe the Bank of England will cut interest rates again this year – and once more early next year.
Some economists have predicted no further cuts before mid-2026, with the bank rate at 4% after the BoE’s MPC left it untouched last week.
But that’s not how Jack Meaning at Barclays sees it, as he wrote in a research note.
“Our Bank Rate call remains two more cuts in the next six months, in November 2025 and February 2026, leaving Bank Rate at 3.5%. Recent MPC communication, along with an upwardly revised path for CPI inflation, makes this more finely balanced than [in] June.”
Karl Matchett22 September 2025 12:20
The insane government rules that are driving investment away
Keir Starmer is torn between attracting the world’s wealthy and speaking to the working man. His mixed messaging – and Britain’s sloppy legislation – is holding the country back, says Chris Blackhurst.
Karl Matchett22 September 2025 12:00
BMW sets aside more than £200m for UK motor finance scandal
BMW’s UK car finance business has set aside more than £200 million to cover the potential impact of the continued fallout from the car loan mis-selling scandal.
It is the latest car firm to reveal the potential cost of the motor finance scandal, with millions of drivers expected to be eligible for compensation claims.
The financial regulator, the Financial Conduct Authority (FCA), is currently consulting on an industry-wide redress scheme for consumers who lost out when they took out a car loan between 2007 and 2020.
This is because it thinks many banks and motor finance firms broke the law or its rules by not properly telling customers about commission paid to dealers, meaning people may not have got a fair interest rate on the deal.
The FCA said earlier this month that is hopes to start redress payments to affected customers next year.
Karl Matchett22 September 2025 11:40
More small British businesses embracing AI at work
Research from the British Chambers of Commerce shows over a third of SMEs (35%) say they are actively using AI technology, up from 25% in 2024.
Shevaun Haviland, director general of the BCC, said:
“Our data shows more SMEs are plugging into AI – and that’s really encouraging news for the UK’s economic future.
“The pace of technological change is speeding up, not slowing down, and it’s crucial that all businesses are part of the digital revolution. Our survey shows the picture is not equal across all sectors and firms aren’t yet using the technology to its full potential.
“It’s crucial that the Government acts swiftly on the recommendations of the SME Digital Adoption Taskforce. Improving AI awareness, support and skills must be the focus.
“Getting this right will help firms drive forward economic growth in an increasingly digital world.”
Karl Matchett22 September 2025 11:20
The weekend cyber attack on airport software continues to impact now into the new week, with investors feeling the brunt of the fallout.
“Shares in airline operators flew lower after a weekend of hell for travellers,” explained AJ Bell’s Russ Mould.
“The cyberattack on check-in software used by airports in London, Berlin and Brussels caused widespread pain, with flights delayed or cancelled. Airlines rely on efficiency to make money, and any disruptions can have a snowball effect.
“There will be some irate operators demanding answers as to why software provider Collins Aerospace didn’t have robust enough systems to block a cyberattack. Collins is owned by US-listed RTX, whose share price is likely to come under pressure when Wall Street opens for trading later today.
“Investors might take the view that RTX’s reputation will be battered and bruised by the incident, and that could cause potential customers to think twice about ordering its systems or existing customers to consider alternative options.
“EasyJet was among the airlines caught up in the drama, extending a bad run for its share price that’s been in motion since June. After yet another summer clouded by air traffic control strikes, EasyJet has now had to endure more cancellations and a queue of angry customers.”
Karl Matchett22 September 2025 11:00
Data shows Brits overspend when leaving the house
A new study from Creditspring suggests UK adults spend an average of more than £60 each time they leave their homes.
The study says almost two in five Brits (39%) feel pressure to “make the most” of being out, often leading to unplanned purchases.
“Treat mentality” seems to be at least partly behind the spending, with people not realising how much they are outlaying until the end of the day counting back.
Tamsin Powell, consumer finance expert at the firm, suggested tips like budgeting a weekly allowance for outings can help trim costs, as well as prepping meals to take with you, planning travel better or rethinking takeaway coffee habits which can amount to more than £1,000 annually even at just one a day.
Karl Matchett22 September 2025 10:40
Warren Buffett’s firm sells stake of BYD after enormous profits
Warren Buffett’s firm Berkshire Hathaway has sold its entire stake in electric vehicle company BYD.
After initially buying around 10 per cent of BYD at the time in 2008, for about $230m, Berkshire’s stake was worth around $9bn by 2022.
The selling began later that year and as of March this year, was complete, new filings show.
BYD shares dropped more than 3% on the news. Berkshire Hathaway made more than 20 times its initial investment.
Karl Matchett22 September 2025 10:20
Targeted social tariff could lift millions out of fuel poverty
A targeted social tariff offering discounted energy bills to those who need it most could lift millions out of fuel poverty in England and Wales, according to a report.
The report for energy firm Ovo by the Green Alliance think tank found a social tariff providing discounted energy bills for low-income households would lift more people out of fuel poverty than current support schemes while also preventing a squeeze on middle earners.
Ovo said it supported targeting households with unavoidable higher-than-average energy demand, such as those who live with disabilities, are older or live in high occupancy homes.
It urged the Government and industry to work together to find a “better way” of identifying these customers in need, using data that existed across the public and private sector.
Karl Matchett22 September 2025 10:00
