Asda hits out at government for ‘killing confidence’ among consumers

Asda has criticised the government for “killing confidence” among consumers but blamed “self-inflicted” problems that left gaps on shelves for a big reverse in sales.Total sales at the UK’s third-largest supermarket fell 3.8% to £5.1bn in the three months to the end of September compared with the same period a year before – diving back from 0.2% growth in the previous quarter

OBR challenges claims Reeves dropped income tax rise due to rosier forecasts

The Office for Budget Responsibility (OBR) has cast doubt on claims Rachel Reeves dropped plans to raise income tax in this week’s budget because of rosier forecasts, pointing out she knew about these well before the change of heart.In a move likely to exacerbate tensions with the Treasury, the OBR chair, Richard Hughes, has taken what he acknowledged was the “unusual step” of writing to the Treasury select committee to explain how its forecast evolved, “given the circumstances in this case”.Reeves’s budget was preceded by a flurry of speculation and briefing, even before the OBR accidentally made its documents available online earlier than intended on Wednesday.The chancellor took the rare step of delivering an early morning “scene setter” speech, on 4 November. This was widely interpreted as an attempt to clear the way for breaching the letter of Labour’s manifesto pledge on income tax by raising rates

Germany to urge EU to soften 2035 ban on sale of new petrol and diesel cars

The German chancellor, Friedrich Merz, is to urge the EU to soften the 2035 cutoff date for the sale of combustion-engine cars.Merz said he would send a letter to the European Commission president, Ursula von der Leyen, on Friday urging Brussels to keep technological options open for carmakers. The sale of new petrol and diesel cars in the EU is scheduled to be banned in a decade’s time.Merz’s letter hardens the battle lines emerging between Germany’s powerhouse car industry and those pleading with Brussels to stick to its flagship green policy, which is designed to help the EU meet its 2050 carbon-neutral target.“We’re sending the right signal to the commission with this letter,” Merz said, adding that the German government wanted to protect the climate in “a technology-neutral way”

Ryanair closes frequent flyers club after members take advantage of discounts

Ryanair is shutting its frequent flyers members’ club after only eight months because customers exploited its benefits too much.The budget airline said on Friday it was closing the scheme, which offered benefits including flight discounts, free reserved seating on up to 12 flights a year and travel insurance.It said 55,000 passengers had signed up to Prime, generating €4.4m (£3.5m) in subscription fees but customers had received more than €6m in benefits, making it a lossmaker for the company

JP Morgan boss gave go-ahead for new £3bn tower in London after UK assurances

The boss of JPMorgan Chase approved plans for a new £3bn tower in London after a senior adviser to the UK prime minister travelled to New York to reassure the bank over the government’s pro-business stance, it has emerged.The Wall Street bank, which along with Goldman Sachs announced substantial investment plans in the UK hours after they were spared tax increases in Rachel Reeves’s autumn budget, only signed off on the plan for its new UK headquarters last Friday.This followed a trip to the US by Varun Chandra, Keir Starmer’s business envoy, to meet Jamie Dimon, the chair and chief executive of JPMorgan Chase, according to the Financial Times.The visit came days before the chancellor announced £26bn in tax rises in a budget that did not impose higher levies on banks, after furious lobbying by the sector.The Treasury had not decided whether or not to increase taxes on banks when Chandra flew to New York, according to the Financial Times

Pub chain Mitchells & Butlers faces £130m hit from rising wage and food costs

The All Bar One owner, Mitchells & Butlers, has warned that it is facing about £130m in extra costs over the next year because of a soaring wage bill and rising food prices.The group, which also owns brands including Toby Carvery, Harvester and Miller & Carter, said the cost increases were largely being driven by April’s increases to the minimum wage and employers’ national insurance contributions.The company also said it was facing increases in food costs, particularly for meat.The additional bill also includes a “preliminary assessment” of the impact of Wednesday’s budget, which included an above-inflation rise in the minimum wage from April. The national living wage will rise to £12