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UK households cut spending at fastest pace in almost five years, says Barclays

about 8 hours ago
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UK households cut back on spending at the fastest pace in almost five years last month as consumers put Christmas shopping on hold, according to a leading survey.Adding to concerns that uncertainty surrounding the budget has helped dampen consumer confidence, Barclays said card spending fell 1.1% year on year in November – the largest fall since February 2021.The bank said retailers still enjoyed their busiest day of the year so far on Black Friday, with transaction volumes 62.5% higher than the average day for 2025.

However, the British Retail Consortium and the consultancy KPMG found that the usual Black Friday lift was much less significant this year caused by shoppers having “jitters”.Black Friday has become a key trading period for retailers, kicking off the Christmas shopping season and giving shops an early insight into their customers’ appetite for spending.The BRC said sales were moderately ahead of those last November, propped up by higher food spending.Food sales increased 3%, though this rise was below the average rate of inflation, at 3.6%.

Sales of other products increased by just 0.1% year on year – below the 12-month average of 1.6%, the BRC said.Opposition parties have blamed Rachel Reeves for harming consumer confidence with months of speculation before the budget on 26 November.The chancellor has since come under pressure to review changes to business rates, which medium-sized retailers and pub chains say will hit them especially hard.

Barclays said pub spending slowed by 1,5% in November, with 42% of those aged 18 to 34 opting for alcohol-free drinks and 40% for alcohol-free activities, according to its survey of 2,000 UK adults,The study showed that confidence in the economy remained “subdued” in November, while the confidence consumers had in their own finances improved marginally,Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionA slowdown in economic growth, rising unemployment and the difficulties faced by high street retailers are expected to prompt the Bank of England to cut interest rates from 4% to 3,75% when its policy committee meets later this month.

Barclays said there was better news in November’s figures for travel agents, who enjoyed a Black Friday boost, up 10.7%.Streaming services and subscriptions increased 3.5% thanks to hit shows such as Stranger Things and Pluribus.The BRC said homeware and upholstery sold well as households prepared to host friends and family over the festive season.

Fashion sales lagged behind as the mild first half of November dampened demand for winterwear.Jack Meaning, the chief UK economist at Barclays, said: “Even with a boost from Black Friday, consumer spending remained muted as we moved through the final quarter of the year.2025 has been defined by this economic deceleration.“The question remains as to whether easing interest rates and falling inflation can offset this trend and spur a rebound in consumer spending, or whether tightening fiscal policy and continued uncertainty will see the malaise continue in 2026.”The chief executive of the BRC, Helen Dickinson, said: “Pre-budget jitters among shoppers meant the month of Black Friday did not deliver as strongly as retailers had hoped or the economy needed.

“Looking ahead to 2026, it is time public policy started prioritising measures to revive consumer confidence and keep costs of doing business down so retailers can focus on growth strategies to maximise their contribution to economic recovery.”
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‘Could do a better job than Keir Starmer’: who could replace the PM if he is forced out?

With Keir Starmer’s poll ratings getting worse, and the Labour party alarmed by the prospect of wipeout at next May’s local elections, there is much speculation at Westminster about whether he can last the course.The prime minister has no intention of standing aside for another candidate, saying he has defied his detractors before and would do so again. But with many on his own side fearing that he doesn’t have what it takes to turn things around, he may not have the chance.The jostling among those who may wish to replace him – or whose allies believe they’d do a better job – continues…Timing is everything in politics. When Downing Street unleashed an extraordinary bout of leadership speculation amid fears Starmer was vulnerable to a challenge after the budget, it was not Rayner they were worried about

about 17 hours ago
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For once, Nigel Farage is the dog that doesn’t bark | John Crace

The dog that didn’t bark in the night.You can normally set your watches by Reform. It’s a rare Monday morning in which Nigel Farage doesn’t pop up somewhere in central London to give a press conference.Even when he has nothing new to announce, he usually has no shame in saying something he’s said before many times. He likes the attention

about 18 hours ago
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UK will go further to stop ‘abusive’ Slapps lawsuits, Lammy says

David Lammy has said the UK will go further to tackle abusive and spurious lawsuits aimed at silencing whistleblowers and journalists, raising the prospect of further legislation next year.The deputy prime minister told campaigners and officials at the launch of the government’s anti-corruption strategy that he was determined to crack down on the practice known as Slapps – strategic lawsuits against public participation.Excessive legal threats have been used in several cases in an attempt to silence reporting on Russian oligarchs, as well those who tried to expose the Post Office Horizon scandal and allegations against Mohamed Al Fayed.The Ministry of Justice said the first priority would be to action the limited provisions in the Economic Crime and Corporate Transparency Act 2023, which tackle Slapps that relate to economic crimes.It also said it was a “priority commitment” in the strategy to consider the future approach for comprehensively tackling all Slapps

about 19 hours ago
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‘It’s Scotland’s energy’: SNP to focus on renewables in Holyrood election

The future of Scottish renewables will underpin the Scottish National party’s Holyrood election campaign, the party leader, John Swinney, has said, as he claimed independence could cut household energy bills by a third in the long term.At what was billed as the first campaign event before next May’s elections to the Scottish parliament, Swinney declared: “It’s Scotland’s energy” – mirroring the famous 1970s slogan “It’s Scotland’s oil”, which bolstered the SNP’s first Westminster breakthrough.Contrasting how the UK and Norway managed their oil wealth, the campaign argues that “Westminster handed control of our oil to private companies and funnelled the profits south”, while Norway “kept their oil in public hands, built a national energy company and invested the profits for the long term”.In his speech, Swinney told supporters: “Just like oil and renewables-rich Norway, Scotland has been blessed twice. We may have missed out on the full benefit of our oil and gas bonanza, but with our vast, low-cost renewable energy resource, Scotland has a second chance to get it right

about 19 hours ago
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No 10 declines to comment on White House claim that Europe facing ‘civilisational erasure’ – as it happened

Downing Street has defended Britain’s record on freedom of speech – while declining to comment on a White House policy document saying Europe is at risk of “civilisational erasure”.At the No 10 lobby briefing, the PM’s spokesperson said that he would not comment on the national security strategy published by the White House on Friday because it was as US document.As Jon Henley reports, the document does not just relate to US policy because it says the American government should be “cultivating resistance to Europe’s current trajectory within European nations”.Referring to Europe as a whole, the document says that it does not spend enough on defence and that it suffers from economic stagnation. But it goes on:This economic decline is eclipsed by the real and more stark prospect of civilisational erasure

about 19 hours ago
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Lord Maxton obituary

John Maxton, Lord Maxton, belonged to a generation of able Labour MPs who sustained the party through 18 hard years of opposition before its electoral success in 1997.He retired from the Commons at the following general election and became a respected working peer, serving on the science and technology committee, which reflected longstanding interests and expertise.His friend George Foulkes, with whom he shared a Westminster office for many years, is “pretty sure he was the first MP with a mobile phone”. Maxton maintained an enthusiasm for new technologies, alongside a conviction that the Palace of Westminster should be turned into a museum and replaced with a modern parliamentary home. He advocated electronic voting and supported ID cards as a means to that end

about 20 hours ago
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Great British Railways flies the flag as logo goes back to the future

about 15 hours ago
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Why has Paramount Skydance launched a hostile bid for Warner Bros Discovery – and what happens now?

about 16 hours ago
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Paramount launches $108.4bn hostile bid for Warner Bros Discovery

about 16 hours ago
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Anglo American’s merger bonus was a pay wheeze too far | Nils Pratley

about 20 hours ago
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Paramount Skydance makes $108.4bn bid for Warner Bros Discovery, challenging Netflix’s offer – as it happened

about 21 hours ago
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Bank of England cutting jobs as part of overhaul after critical Bernanke review

about 22 hours ago