Strongest rise in UK business activity in a year while hiring falls; WH Smith shares crash 40% on accounting error –as it happened
More good news: the UK’s business activity posted its biggest growth in a year this month, led by a solid upturn in the service sector, according to a closely-watched survey.The ‘flash’ reading from the S&P Global PMI survey showed improvement across the private sector, despite employment remaining a weak spot, with companies cutting hiring for an eleventh month.The headline index rose to 53.0 in August from 51.5 in July, indicating faster expansion in business activity
Customers feeling raw after Tesco adds 25p to price of a meal deal
Tesco has put the price of its meal deal up by 25p, its third increase since 2022, as food prices across the UK continue to race higher.The meal deal now costs £3.85 for Clubcard holders. Customers who do not have a Tesco loyalty card will pay £4.25
Why radical tax reform may be only way for Reeves to balance the books
Despite a good month for the public finances, the Treasury won’t be putting in any champagne orders.Higher self-assessment tax receipts and an increase in national insurance payments by employers filled the government’s coffers by more than expected in July. The result was that Rachel Reeves’s spending deficit fell to £1.1bn, down by £2.3bn from the same month a year earlier
UK borrowed less than expected in July in lift for Rachel Reeves
The UK government borrowed less than expected in July, official figures show, in a boost to the chancellor, Rachel Reeves, as she faces pressure in the run-up to her autumn budget.Figures from the Office for National Statistics (ONS) showed public sector net borrowing – the difference between public spending and income – fell to £1.1bn, down by £2.3bn from the same month a year earlier.The reading was below City predictions for a deficit of £2
Fed governor urged by Trump to resign will not be ‘bullied’ into stepping down
Donald Trump has called on a Federal Reserve governor to immediately resign, renewing his extraordinary attack on the central bank’s independence as officials mull next steps on interest rates.A close Trump ally accused Lisa Cook, an appointee of Joe Biden, of “potentially committing mortgage fraud” and urged the US Department of Justice to investigate.The claims have not been confirmed, and this evening Cook said she had “no intention of being bullied” into stepping down.The US president has repeatedly broken with precedent in recent months to demand the Fed cut rates and urge its chair, Jerome Powell, to quit after disregarding such calls.On Wednesday, Trump leaped on the allegations about Cook
The only way to solve England’s water crisis is state control | Letters
The behaviour of private water companies is widely recognised as unacceptable: they flout regulations, cause significant environmental harm, neglect their responsibilities, and still pay enormous sums to directors and shareholders. Ofwat’s rulings and fines appear ineffective, often penalising consumers (Letters, 18 August), while renationalisation is dismissed as prohibitively expensive.We propose an alternative means of controlling private-sector companies – replace Ofwat’s monetary fines with state-owned voting shares of equivalent value. This approach would have several immediate benefits. By exercising shareholder rights, the state – on behalf of the public – could directly influence company policies; the public purse would gain revenue from dividends; and over time, as the state’s shareholding increased, full nationalisation would become financially feasible
OpenAI eyes world’s largest valuation for private company in stock sale talks
US surveillance firms run a victory lap amid Trump’s immigration crackdown
Intel secures $2bn lifeline from Japan’s SoftBank
UK has backed down on demand to access US Apple user data, spy chief says
Social media still pushing suicide-related content to teens despite new UK safety laws
Chatbot given power to close ‘distressing’ chats to protect its ‘welfare’
WH Smith shares plunge 42% after retailer’s £30m accounting error
Almost £600m was wiped off the market value of WH Smith on Thursday after the retailer cut financial forecasts and launched an independent review when it discovered an accounting blunder at its North American arm.Shares plunged 42% after investors took fright at the news that profits at the division had been overstated by £30m.The group said it discovered the mistake while preparing its year-end results. The retailer said it was “largely” because it had logged some of its income too early.The mistake relates to arrangements it has with suppliers, which offer rebates if the retailer hits sales targets on certain items and payments for marketing and promotions
Government takes over Liberty Steel plants in South Yorkshire after collapse
The government has taken control of the UK’s third-largest steelworks as ministers try to protect 1,450 jobs after Liberty Steel’s operations in South Yorkshire were put into administration.The high court in London on Thursday ordered the winding up of Speciality Steel UK (SSUK), which has plants in Rotherham and Stocksbridge, despite the company’s request for more time to find new financial backers.The company, previously part of the metals tycoon Sanjeev Gupta’s Liberty Steel group, was then put under the control the government’s official receiver who appointed special managers from the advisory firm Teneo to run it.The judge, Mr Justice Mellor, said there was too much uncertainty over whether Gupta could come up with funding. “It is quite clear that there are special managers lined up who have the support of the government,” he said
Google launches Pixel 10 with AI tools that anticipate users’ needs
Google’s latest Gemini AI upgrades attempt to anticipate what useful information you made need from your life to address a potential issue, make you to better photographer or become your personalised health and sleep coach.Shipping on the just-announced Pixel 10 Android phones, the new Magic Cue feature enables the chatbot to comb through your digital life and pull up relevant information on your phone just when you need it.Placing a call to an airline will automatically display your booking information from Gmail in the phone app. Or when a friend texts about brunch on Sunday Gemini will suggest a suitable coffee shop and show your calendar in line with your messages.The feature is part of a series of artificial intelligence upgrades for the newly announced Pixel 10, 10 Pro and 10 Pro Fold phones
Microsoft workers occupy HQ in protest against company’s ties to Israeli military
Dozens of Microsoft employees occupied the company’s east campus in Redmond, Washington to protest against what they say is the use of its software by the Israeli military to carry out operations in Gaza and enable the surveillance of Palestinians.Less than a week after the company said it was launching an independent investigation into the use of its Azure software, current and former staff occupied a space they declared the “Free Zone”, holding placards that read “Join The Worker Intifada – No Labor for Genocide” and “Martyred Palestinian Children’s Plaza”.The protests, organised by the No Azure for Genocide group, has demanded Microsoft divest from Israel. Earlier this year, employee Joe Lopez interrupted a speech by CEO Satya Nadella at the annual developer conference.“Satya, how about you show how Microsoft is killing Palestinians,” said Lopez
Connor inspires win over Hull KR that lifts Leeds level with Wigan in second
If you weren’t sure this Leeds side are firmly in the Super League title equation, then you are now. For clarity, teams very rarely defeat Hull KR: this is only the fourth time they have tasted defeat in 2025 and two of them have been by the Rhinos. It is also the first time they have lost by 20 points or more in almost 18 months.This was not just a victory for Brad Arthur’s side. It was a statement that Super League title No 9 may not be too far away for a team who are rejuvenated under the guidance of the Australian
Father of Boston Celtics star Jaylen Brown charged with attempted murder in Las Vegas
The father of Boston Celtics All-Star Jaylen Brown is facing an attempted murder charge in Las Vegas after police say he stabbed another man during a parking lot confrontation.According to authorities, officers were called to the 1500 block of South Buffalo Drive at 5.42pm Tuesday, where they found a man suffering from multiple stab wounds. The victim was taken to a local hospital and remained in critical condition.In a statement, a Las Vegas metropolitan police department spokesperson said the suspect, 57-year-old Quenton Marcelles Brown, was stopped a short distance from the scene and taken into custody
Labour-run councils consider legal challenges to asylum hotels
How Labour can build a stronger British economy | Letters
Reeves leaves no stone unturned as she mulls reforms for property tax
Government’s deal with Iraq to return illegal migrants will ‘deter small boat arrivals’, says Starmer – as it happened
‘Past mistakes must be avoided’: anxiety as Labour eyes public-private funding for NHS
Reeves considering tax on high-value homes to help plug hole in finances