UK economy entering 2026 amid sharp private sector downturn, says CBI
Business leaders have warned that Britain is entering 2026 amid a sharp economic downturn in the private sector, after companies “put the brakes on” investment and hiring before the autumn budget,In a gloomy snapshot after months of tax speculation, the Confederation of British Industry (CBI) said private sector output was on track to fall in the fourth quarter of 2025,Suggesting the budget did little to brighten bosses’ moods, the lobby group’s latest growth indicator showed falling activity was reported across all sectors of the economy in the three months to December,Separate figures from the jobs website Adzuna showed the number of UK job vacancies shrank in November for a fifth month running,Reporting a 6.
4% month-on-month slide in new openings, the jobs website said 2025 had been “one of the toughest years for jobseekers since the pandemic”.The chancellor’s tax and spending statement on 26 November does not appear to have kickstarted business optimism.According to the CBI, private firms are predicting economic activity will fall further in the next three months, continuing a run of negative forecasts that began in late 2024.Alpesh Paleja, deputy chief economist at the CBI, said: “Uncertainty ahead of November’s budget put the brakes on key spending decisions and big projects, choking up pipelines of work.The latest growth indicator suggests that the alleviation of this uncertainty hasn’t materially boosted activity.
“Our latest surveys round off a disappointing year for private sector growth.They mark a continuation of the headwinds that have plagued businesses over the past 12 months: tepid demand conditions with households cautious around spending, and strong cost pressures squeezing margins.”Compiled from a survey of more than 900 companies between 24 November – the week of Rachel Reeves’s budget – and 11 December, the CBI’s snapshot revealed a broad-based downturn across the private sector.The reading on its monthly growth indicator fell to -30%, from -27% in November.The weighted balance score is the difference between the percentage of firms who expect activity to rise over the next three months and respondents anticipating a decline.
The Bank of England warned last week that Britain’s economy was on track to record zero growth in the final three months of 2025, after output unexpectedly shrank in October, with consumers holding back on spending before the budget.Businesses are calling on the Labour government to work with industry to increase its support for companies grappling with high energy costs, while also working to simplify the tax system as part of ministers’ mission to boost economic growth.Andrew Hunter, the co-founder of Adzuna, said the budget had added to end-of-year uncertainty for employers.He said: “2025 has been one of the toughest environments for jobseekers across almost every corner of the market, particularly among people entering the market for the first time.One glimmer of light is that wage growth continues to counteract the vacancy slump.
”Adzuna data shows the number of UK job vacancies slid by 15% in November compared with the same month a year earlier, at a time when many employers would usually take on extra staff for Christmas.Official figures released this month show the UK unemployment rate hit a four-year high of 5.1% in the three months to October.Graduate jobs have seen one of the sharpest falls over the past 12 months, marking an annual slide in vacancies of almost 45%, Adzuna said.Recent reports have shown young people are being hit hard by the rise in unemployment.
The decision by companies to cut the size of their workforce by using artificial intelligence is seen as one of the reasons for the fall in vacancies in entry-level roles, three years on since the launch of ChatGPT.However, wage growth continues to outpace inflation, Adzuna found.The average advertised salary rose by 7.7.% annually to reach £42,687 in November, with public-sector wages growing almost twice as fast as those in the private sector.
Salaries in the IT sector have risen by 12.7% over the past year, making it the best-paid sector.
Mass clearout of England leadership not in ECB plans after Ashes failure
The England and Wales Cricket Board is eager to avoid a mass clearout of England’s senior leadership in the wake of another humiliating away Ashes series defeat.England’s hopes of winning the urn were expunged inside 11 days for just the fourth time in the contest’s 143-year history with Sunday’s 82-run defeat in Adelaide, and a fourth Ashes whitewash is on the cards in Melbourne and Sydney, unless the tourists can arrest a dismal 18-match run without a win in Australia that stretches back to 2011.A full review of the tour’s planning and execution will take place following the final Test next month when jobs could be on the line, with Brendon McCullum’s position as head coach expected to come under the most scrutiny.The Guardian has been told that the ECB do not want to repeat the mass cull that followed their 4-0 defeat in Australia four years ago, however, when coach Chris Silverwood and director of cricket Ashley Giles were sacked the following month, with Joe Root resigning as captain following another series defeat in the West Indies two months later.While changes could still be made depending on the outcome of the rest of the tour, the ECB believes that mass sackings would be a mistake and leave England less well-placed to learn the lessons of the tour
Dan Frost freezes out Newcastle to put dominant Bath back on top of Prem
Bath returned to the summit of the Prem, ruthlessly exposing the gulf between top and bottom at Kingston Park. Despite resting several front-liners, including Finn Russell, they ran in eight tries against Newcastle to bounce back emphatically from last week’s Champions Cup defeat in Toulon.They simply had too much firepower for Newcastle who were shut out for the last 53 minutes of the game.If there was a disparity between the starting lineups, the bench mis-match was colossal and Bath’s head coach, Johann van Graan, rubbed it in by introducing all eight of his replacements in one fell swoop with 25 minutes to go.It was a shock and awe move with Sam Underhill, Ted Hill and Thomas du Toit emerging from the fog and Bath, leading 33-14 at the time, eased away with three more fine tries to reach their half-century
My surf addiction didn’t need more fuel. Then I found the WSL third-tier live stream | Kieran Pender
At first, it seemed like a natural progression. I have long been a surf fan, I regularly write about the World Surf League Championship Tour, and once even tried my hand in a local surf competition. And so in recent years, during breaks between top-tier WSL events, I found myself glued to live streams for the second tier, the Challenger Series.Only this year, the WSL wrapped up in September, and the Challenger Series had major gaps in its schedule. And that was how I found myself addicted to third-tier surfing, the WSL Qualifying Series (QS)
Arrogant England’s cricket machine collapses like a castle of dust in 11 days | Barney Ronay
So this is Christmas. And what have we done? The Ashes is over. With two Tests still to comeWhen the moment finally came the visuals were perfect: clean lines, neat angles, figures picked out in crisp afternoon sun against the almost satirical splendour of Adelaide Oval.Scott Boland took the final wicket to seal Australia’s unassailable 3-0 Ashes series lead, the 74th time this moment has been played out down the centuries, and immediately the white shapes converged to form a bobbing huddle. England’s batters stood in an attitude of formal deflation
Stokes vows to remain England captain as McCullum admits regret over Ashes preparations
As Ben Stokes stressed his commitment to leading England after losing the Ashes inside 11 days, Brendon McCullum gave his first admission of regret. Poor preparation has been widely blamed for this failed tour of Australia and, in that regard, the head coach was prepared to hold his hand up.Speaking after the 82-run defeat at Adelaide Oval that took Australia 3-0 up with two Tests in Melbourne and Sydney to come, Stokes offered a simple “absolutely” when asked if he had the energy to continue as captain but played down England’s threadbare warm-up period.“That dream that we came here with is now over, which is obviously incredibly disappointing,” said Stokes, at the ground where he made his Test debut 12 years ago. “I hate living in hindsight because you can never change what you have done
Dominant Australia defeat England in third Test to retain Ashes – as it happened
With the third Test wrapped up, I’ll do likewise. Thanks for your company throughout five (!) thrilling days of Test cricket and see you all in Melbourne.Ali Martin has delivered his match report.And Geoff Lemon has written about Pat Cummins and his Ashes legacy. Enjoy!Having wrapped up the series in 11 days and retained the Ashes in ruthless fashion, Australia will have a very merry Christmas indeed
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