UK’s anti-corruption champion to visit offshore haven on fact-finding mission

Foreign Office sending Margaret Hodge to British Virgin Islands to investigate slow progress against financial crime

The Foreign Office will dispatch the UK’s anti-corruption champion, Margaret Hodge, to the British Virgin Islands (BVIs) to find out why the offshore haven is dragging its feet on proposals designed to fight financial crime.

Several of the UK’s semi-autonomous British overseas territories missed last month’s deadline to implement new registers of corporate ownership, a measure targeting the secrecy regimes campaigners say benefit criminals and kleptocrats.

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Sick pay changes could benefit UK firms by up to £2bn, TUC says

Exclusive: Analysis shows covering part of salaries from first day off can boost productivity and employee retention

Changes to sick pay to cover part of workers’ salaries from the first day off could end up benefiting British businesses by as much as £2bn, according to analysis commissioned by the UK’s main union body.

The Trades Union Congress (TUC), which is pushing for the government to stick with its plans for workers’ rights, said modelling showed businesses would gain benefits of £2.4bn thanks to productivity boosts, while facing direct costs of £425m to pay for extra sick days.

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Southern Water issues hosepipe ban for 1m people in Hampshire and Isle of Wight

Announcement takes number of people hit by restrictions across England to about 8.5 million

Southern Water has become the fourth English utility to issue a hosepipe ban, taking the number of people hit by such restrictions to about 8.5 million.

The latest ban, which comes into force for about 1 million residents across large swathes of Hampshire and all of the Isle of Wight from 9am on Monday, comes after Yorkshire, Thames and South East Water announced similar measures.

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Trump threatens to impose drug and chip tariffs as soon as 1 August

US president talks of low tariff to give pharmaceutical firms a year or so to build, and then making it ‘very high’

Donald Trump has threatened to impose tariffs on pharmaceutical products and semiconductors as soon as 1 August, the latest deadline for the introduction of his “reciprocal” levies on individual countries.

The US president told reporters late on Tuesday the taxes on drug imports could be announced “probably at the end of the month, and we’re going to start off with a low tariff and give the pharmaceutical companies a year or so to build, and then we’re going to make it a very high tariff”.

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China’s economy beats expectations in face of Trump’s trade war

GDP grows 5.2% in second quarter as world’s second largest economy ‘front-loads’ shipments before tariffs kick in

China’s economy grew more strongly than expected in the second quarter as it proved resilient in the face of Donald Trump’s trade war.

China’s gross domestic product (GDP) grew 5.2% in April to June compared with a year earlier, slowing from 5.4% in the first quarter, but just ahead of analysts’ expectations for a rise of 5.1%.

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Reeves to say cuts to City red tape will bring trickle-down benefits to households

Chancellor to announce raft of deregulation changes as City regulators move to pare back transparency rules

Rachel Reeves will claim that cutting red tape for City firms will have trickle-down benefits for households across Britain, as she tries to drum up support for a new financial services strategy.

A raft of regulatory reforms are due to be announced by the chancellor on Tuesday, in what the Treasury says will be the “biggest financial regulation reforms in a decade”. It will come before her Mansion House address to City bosses during a dinner at Guildhall in London on Tuesday evening.

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Treasury minister says ‘headline’ rate of income tax won’t go up, in hint thresholds might be frozen in budget – UK politics live

Darren Jones also declines to rule out wealth tax when questioned about government plans

In an interview with the Times, Andrew Bailey, governor of the Bank of England, says firms are “adjusting employment and hours” in the light of last year’s rise in employer NICs. That sounds like a euphemism for cutting jobs. But he says, if the labour market slow down, the Bank may respond by cutting interest rates more aggressively.

Asked about this comment in an interview on the Today programme, Darren Jones, chief secretary to the Treasury, played down the impact of the budget. He said:

There’ve also been hundreds of thousands of new jobs created across the economy, and in the first quarter of the year [we had] the fastest growing economy in the G7, so we’re doing everything we can to create conditions for businesses to be profitable and to be able to grow.

Of course, we had that particular tax decision in the budget last year, because our commitment was to protect working people in their pay slips. And I recognise the independence of the bank governor.

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Bank of England governor says jobs slowdown could prompt rate cut; European markets fall after Trump tariff threat – business live

Rolling coverage of the latest economic and financial news, as Andrew Bailey insists: “I think the path [for interest rates] is down”.

A Bank of England interest rate cut next month is looking more likely, according to the latest city pricing.

The money markets are indicating there’s now an 85% chance that the Bank cuts interest rates at its next meeting on 7 August, up from 76% at the end of last week.

Friday’s disappointing GDP figures, combined with these weak jobs figures boost the case for the Bank of England to cut interest rates in August. The central bank’s governor Andrew Bailey told The Times ‘slack’ was opening up in the labour market, and he believes ‘the path is downward’ for interest rates.

All eyes are on Wednesday’s inflation report with CPI expected to remain at remain around 3.4% in June, roughly unchanged for the third consecutive month.”

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Trump’s latest tariffs ‘are real’ unless deals improve, economic adviser says

Kevin Hassett says talks are ‘ongoing’ after US president announced 30% tariffs on goods from EU and Mexico

Donald Trump has seen some trade deal offers and thinks they need to be better, Kevin Hassett, the White House economic adviser, said on Sunday, adding that the president will proceed with threatened tariffs on Mexico, the European Union and other countries if they don’t improve.

“Well, these tariffs are real if the president doesn’t get a deal that he thinks is good enough,” Hassett told ABC’s This Week program. “But you know, conversations are ongoing, and we’ll see where the dust settles.“

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Macron calls on EU to ‘defend European interests resolutely’ from Trump tariffs

French president says bloc should be ready for trade war after 30% tariff threat but other EU leaders call for calm

The French president, Emmanuel Macron, has called on the EU to “defend European interests resolutely” after Donald Trump threatened to impose 30% tariffs on nearly all imports from the EU.

It came as the EU moved to de-escalate tensions after the blunt move by Trump on Saturday. The bloc declared a further pause on €21bn of retaliatory tariffs until 1 August, dovetailing with the US president’s new deal deadline.

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English councils urged to install pavement gullies for home charging of electric cars

Scheme aims to stop cables trailing across pavements and encourage drivers to switch to electric vehicles

Local councils in England will be encouraged to install pavement gullies that link houses to the kerbside so that electric cars owners can charge their cars from home if they do not have a driveway.

The new government scheme hopes to stop cables trailing across pavements, as EV owners in built up areas where off-street parking is scarce, try to charge their cars. The Department for Transport has said it will put £25m towards “cross-pavement” charging – essentially a narrow cable channel with a cover on top.

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Trump’s 10% tariff on most UK goods ‘here to stay’, says Lord Mandelson

British ambassador to US believes universal levy unlikely to change but there is ‘scope’ for negotiations in some sectors

The 10% tariffs on most UK goods imported into the US are likely “here to stay”, according to Lord Mandelson.

The British ambassador to the US said the “universal 10% tariff” was unlikely to change but that there was “scope” for negotiations in different sectors and industries, such as technology.

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EU risks breaking international law over Israel gas deal, say campaigners

Europe accused of ‘trampling over Palestinian rights’ with deal linked to imports from pipeline running parallel to Gaza coast

The EU is “trampling over Palestinian rights” and risks breaching international law, over an energy deal signed with Israel to bring more gas to Europe, a campaign group has said.

A report by Global Witness shared exclusively with the Guardian concludes that the EU could be “complicit in breaches of international law” over a 2022 energy deal linked to gas imports from a pipeline said to traverse Palestinian waters. The NGO has called on the EU to cancel all gas imports linked to the East Mediterranean Gas (EMG) pipeline and terminate the 2022 deal, which was also signed with Egypt.

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HSBC becomes first UK bank to quit industry’s net zero alliance

Campaigners condemn ‘troubling’ move that follows departure of six of largest US banks after Trump’s election

HSBC has become the first UK bank to leave the global banking industry’s net zero target-setting group, as campaigners warned it was a “troubling” sign over the lender’s commitment to tackling the climate crisis.

The move risks triggering further departures from the Net Zero Banking Alliance (NZBA) by UK banks, in a fresh blow to international climate coordination efforts.

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Enduring confusion is the only certainty amid Trump’s latest tariff threats

Experts suspect ‘frontloading’ of activity may have masked deeper impact of tariffs on the US economy

“There has been no change to this date, and there will be no change,” Donald Trump said on his Truth Social platform this week. “All money will be due and payable starting AUGUST 1, 2025 – no extensions will be granted.”

There had, in fact, been a change. The 90-day “pause” on the highest tariffs threatened by Trump on his so-called “liberation day” in April, elapsed on Wednesday. But with just three trade agreements in place, instead of the 300 once promised, the White House had switched one deadline for another.

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Australia news live: Bob Brown takes out ad praising woman injured in pro-Palestine protest; AMA welcomes new medicinal cannabis guidelines

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The political leader of the central Tibetan administration – Tibet’s government in exile – is visiting Australia this week.

It comes as Anthony Albanese heads to China this weekend.

It is not enough to have freedom only in a few countries in this world. Freedom is necessary for every human being in this world.

When prime minister Albanese’s visiting there, I would urge him to also say that he would like to visit Tibet.

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Government inheriting poor value assets due to bad handling of PFI contracts, watchdog says

Public accounts committee warns UK infrastructure risked becoming ‘stony ground’ for investors without major overhaul

Bad management of private finance contracts is leading to poor quality assets being handed back to the government, including schools and hospitals, according to parliament’s spending watchdog.

Its report into the use of private finance initiatives (PFI) for infrastructure comes at a time when the government has identified private investment in projects such as power plants and transport outside London as a key part of its growth agenda.

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Segal says stripping universities of funding a ‘last resort’ – as it happened

This blog is now closed

Australia’s biggest peanut supplier set to shut down

The corporate owners of Australia’s biggest peanut processor will scale down the century-old business in the coming 18 months before shutting it down for good.

There isn’t detail, and it’s unclear whether those tariffs will ever actually be applied.

We do know that the contributions from the pharmaceutical industry in the US to that investigation has been to urge the US government to focus their levers on non-friendly countries and not apply tariffs or punitive levers to allies such as Australia.

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Royal Mail gets go ahead to axe second-class post on Saturdays

Deliveries will also alternate on weekdays to reflect changing behaviour of users but critics say regulator has let courier off the hook

Royal Mail has been given the green light to drop Saturday deliveries of second-class letters and provide services only on alternating weekdays from Monday to Friday under new rules announced by the regulator.

Ofcom said that reforms of the universal services obligation (USO) reflected changing behaviour of postal users, with fewer letters being sent across the country. The regulator said it could end up saving the postal delivery service between £250m and £425m each year.

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Trump announces 50% tariff on Brazil, citing a ‘witch-hunt’ against Bolsonaro

Latest threats heighten fears that the president’s erratic trade strategy risks exacerbating inflation across the US

Donald Trump announced on Wednesday that his administration will hit Brazil with a 50% tariff on products sent to the US, tying the move to what he called the “witch-hunt” trial against its former president, Jair Bolsonaro.

Posting letters on Truth Social, the US president had earlier in the day targeted seven other countries – the Philippines, Brunei, Moldova, Algeria, Libya, Iraq and Sri Lanka – for stiff US tariffs on foreign exports starting on 1 August.

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