Business

Money markets have begun to price in a Bank of England interest rate of 6.5%. The interest rate on ten year government bonds (the gilt yield as it’s sometimes called) exceeded the peak it hit after the mini-budget of September last year – that one which provoked a crisis in many parts of the bond

Higher wages are the “biggest driver of price rises” for two-thirds of businesses, according to the findings of a report which will do nothing to ease worries at the Bank of England that inflation is coming under control. The British Chambers of Commerce’s (BCC) economic survey of its members, covering April to June, showed that

The UK is now the only country in the G7 group of rich nations still dealing with rising inflation, the Organisation for Economic Co-operation and Development (OECD) has said. The Paris-based OECD – a club of 38 rich countries – said inflation in the UK rose to 7.9% in May, up from 7.8% in April,

The water industry regulator has admitted investors in crisis-hit Thames Water have become “more concerned about the turnaround of the company”, as it seeks £1bn to help shore up its immediate financial future. Ofwat chief executive David Black told a Lords committee that while talks were continuing, new shareholders may have to be sought if

More than half of broadband customers in the UK continue to experience problems with their service, a survey has found, despite providers raising prices by more than the rate of inflation. The findings are part of the latest “broadband satisfaction survey” from consumer group Which?, which found that 53% of those asked had connection issues

Drivers are used to working hard to find the best price for a tank of fuel. Supermarkets, it turns out, have been working only as hard as they need to to provide it. A Competition and Markets Authority investigation into fuel pricing has found that retail margins at supermarkets have widened by 6p per litre

The average mortgage rate for a five-year fixed deal has risen to 6.01%, according to a financial information company. Meanwhile, the average two-year fixed rate mortgage has increased to 6.47%, Moneyfacts said. The previous average for a five-year rate was 5.97% on Monday, while the two-year deal was 6.42%. A five-year fixed deal is at

​​​​​​​Disruption to rail journeys are expected across the country this week as train drivers refuse to work overtime for six days. ASLEF announced last month that its members would withdraw non-contractual overtime, known as rest-day working, with 16 of the country’s 35 rail operators from Monday 3 July to Saturday 8 July. Train companies affected

One of Britain’s most senior boardroom figures is to replace John Allan at the helm of Tesco. Sky News can exclusively reveal that Gerry Murphy, the chairman of Burberry and Tate & Lyle, has been chosen to replace Mr Allan, whose recent departure was hastened by a series of personal misconduct allegations. Sources said Dr

Households will pay less for their gas and electricity from today but bills will still be almost double what they were before the energy crisis. The average household energy bill will fall by £426 a year from 1 July after Ofgem dropped its price cap following tumbling wholesale prices. People had been advised to submit

A senior Tory peer has taken a swipe at the City watchdog over its timetable for approving the merger of two prominent London stockbrokers. Lord Leigh of Hurley, a key figure in Conservative fundraising circles and a veteran banker, accused the Financial Conduct Authority (FCA) of acting as “a block on economic growth” during a

A firm in Iceland is pioneering cutting-edge technology that turns CO2 into stone – promising a boost to the global fight against climate change and its devastating consequences. Carbfix takes the greenhouse emissions from industrial plants and dissolves them in water, which is then injected deep underground into porous rock formations such as volcanic basalt,

Rising mortgage rates have yet to hit the housing market but threaten to be a “significant drag” in the short-term, Nationwide has said. However, the high street lender said “a relatively soft landing is still possible” against a backdrop of income growth and modest falls in property prices. The building society also said while typical

An estimated 15.7 million people in the UK experienced postal delays last month, according to new research commissioned by the charity, Citizens Advice. Many of those who experienced delays said they had suffered knock-on impacts, such as missing health appointments, fines or bills. One woman said at least four of her hospital appointment letters were

UK households withdrew a record amount from their savings last month and were more cautious with credit card spending, according to Bank of England data highlighting the extent of the squeeze on consumers. The smallest net increase in monthly unsecured lending this year, at £1.1bn, was recorded by the bank in May. A figure closer

The governor of the Bank of England, which has raised interest rates to a 15-year high, has said the UK labour market and not Brexit is to blame for stubbornly high inflation. Andrew Bailey said the tight jobs market – with near-record low unemployment, more than a million jobs vacancies and wage growth of 7.2%

The National Grid Electricity Systems Operator (ESO) has confirmed it will have no coal-fired power as back-up this winter, if needed, to help keep the lights on. There were five contingency units to call on last winter as the energy market reeled from the impact of Russia’s war in Ukraine. They were warmed up several

The government has begun drawing up contingency plans for the collapse of Thames Water amid growing doubts in Whitehall about the ability of Britain’s biggest water company to service its £14bn debt-pile. Sky News has learnt that ministers and Ofwat, the industry regulator, have started to hold discussions about the possibility of placing Thames Water

Executives from the country’s biggest supermarket chains have defended their grocery prices but backed the idea of greater fuel transparency over claims customers are paying over the odds for both. The business and trade committee of MPs heard representatives of Tesco, Sainsbury’s, Asda and Morrisons deny any suggestion of food profiteering on their part as

The chancellor has told banks “in no uncertain terms” they must pass on higher interest rates to savers. Jeremy Hunt faced pressure from both Labour and his own Conservative backbenchers on the matter during a statement about support to mortgage holders agreed on Friday. Labour’s Dame Angela Eagle – a Treasury minister under Gordon Brown