Jump in UK borrowing shows Rachel Reeves needs to relax her strict budget rules

There is mounting pressure on Rachel Reeves to relax her budget rules and to prepare the ground by telling voters in the next few weeks.The latest public borrowing figures for April, which show a rise above most City forecasts, indicate that the chancellor will struggle to stay within the constraints she imposed on herself at last year’s budget.Reeves gambled that the Treasury could brazen out a difficult year with nearly £10bn of headroom – a cushion that would protect the government against all eventualities.Donald Trump’s tariffs war and the subsequent global slowdown have been enough to derail that tactic.Economic growth is expected to slow over the next year despite a spate of trade deals

Will cyber-attack threaten M&S’s hard-won return to fashion relevance?

In September 2019, as Marks & Spencer fell out of the FTSE 100 for the first time, its then chief executive, Steve Rowe, described the retailer as having a “reputation for frumpiness”. Just six years later, thanks to clever campaigns, unexpected collaborations and a focus on catwalk-influenced pieces, the retailer has transformed itself into the go-to fashion destination for high street shoppers.Annual results, released on Wednesday, showed a 22% rise in pre-tax profits in the year to 30 March. Overall sales were up 6% to £13.9bn with fashion and homeware increasing 3

UK borrowing rises to £20.2bn, putting pressure on Rachel Reeves

The UK government borrowed more than expected in April, underscoring the challenge for Rachel Reeves to fix public services and grow the economy while meeting her fiscal rules.With the chancellor under pressure on Labour’s tax plans, the Office for National Statistics (ONS) said public sector net borrowing rose to £20.2bn in April, £1bn more than the same month a year earlier. City economists had forecast borrowing of £17.9bn

WeightWatchers scraps business model to team up with anti-obesity drugs provider

WeightWatchers is teaming up with a provider of weight-loss drugs such as Wegovy and Mounjaro, in a seismic shift for the brand away from a focus on dieting as it tries to turn around its struggling business.WeightWatchers, which has promoted a non-medical, points-based approach to food intake since its creation in the 1960s, has announced a strategic partnership in the UK with CheqUp, a provider of GLP-1 weight-loss medication and accompanying clinical support and health coaching.The partnership comes weeks after WeightWatchers filed for Chapter 11 bankruptcy protection in the US, as it tries to cut its debt after the popularity of anti-obesity injections upended its model.All CheqUp members will be able to access a WeightWatchers app, which has been specifically designed for people on weight-loss injections, with guidance from experts on food recommendations to minimise the side effects of the medication, such as nausea, while supporting healthy weight loss.The two companies said the tie-up would help patients who are “seeking sustainable weight loss through GLP-1 medication and behavioural support”, with their “complementary offerings” allowing patients to achieve better results than with medication alone

HSBC high street bank staff face bonus cuts over remote working

HSBC has told staff in its UK high street banks that it may cut their bonuses if they do not work in the office frequently enough.The bank told employees at its HSBC UK division, which includes its retail and domestic commercial banking businesses, that anyone who did not spend at least 60% of their time in the office could end up being paid less, according to a report by Bloomberg.It is the latest bank to harden its stance on remote working. In January, the rival bank Barclays ordered all staff to work from the office for at least three days a week, up from a previous requirement of two days. Last year Santander told employees they must be in the office for at least three days a week

Liberty Steel has not produced anything at two key plants since July 2024

Liberty Steel has produced nothing at two of its key UK plants since July, in a sign of the deep financial difficulties for Britain’s third-biggest steelmaker as it looks for rescue funding.The plants at Rotherham in South Yorkshire and Motherwell in Scotland have not produced any steel for about nine months because of a lack of funds to buy vital materials, with staff on furlough on 85% of their salaries for the duration, according to workers who spoke to the Guardian.Steel companies have been struggling for several years. UK steel production fell in 2024 to its lowest since the 1930s, and in the last month the government in effect took over the British Steel blast furnaces at Scunthorpe, amid fears of more than 2,700 job losses and the end of primary steel-making in the UK.Liberty Steel is ultimately owned by Sanjeev Gupta, whose GFG Alliance metals empire is under severe financial pressure across the world after a debt-fuelled expansion spree