{"id":147496,"date":"2025-09-19T14:11:09","date_gmt":"2025-09-19T14:11:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/147496\/"},"modified":"2025-09-19T14:11:09","modified_gmt":"2025-09-19T14:11:09","slug":"business-news-live-uk-retail-sales-up-in-august-but-18bn-government-borrowing-makes-tax-rise-all-but-certain","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/147496\/","title":{"rendered":"Business news live: UK retail sales up in August but \u00a318bn government borrowing makes tax rise \u2018all but certain\u2019"},"content":{"rendered":"

<\/a>Starbucks staff to sue coffee shop over its \u2018tone deaf\u2019 new dress code<\/p>\n

Starbucks<\/a> is facing legal challenges in three US states after workers initiated action over a new dress code, claiming that the coffee giant broke the law by not reimbursing them for new clothing required by the updated policy.<\/p>\n

Backed by the union organising Starbucks<\/a> staff, workers have filed class-action lawsuits in state courts in Illinois and Colorado. Additionally, complaints have been lodged with California<\/a>\u2019s Labour and Workforce Development Agency. Should the agency opt not to pursue penalties against Starbucks<\/a>, the employees intend to launch a class-action lawsuit in California, according to the filings.<\/p>\n

Karl Matchett19 September 2025 15:00<\/p>\n

<\/a>US stocks to rise as Trump call with China starts<\/p>\n

President Trump has a call with China\u2019s Xi Jinping today, with TikTok and wider trade business on the agenda.<\/p>\n

Optimism is high that a positive outcome is on the way and that seems to have fed into investments today, with US stocks set to go up after trading starts shortly.<\/p>\n

Both the Nasdaq and S&P 500 are projected to rise around 0.2 per cent.<\/p>\n

Karl Matchett19 September 2025 14:30<\/p>\n

<\/a>Record number of people took out debt relief orders in August<\/p>\n

A record number of people turned to debt relief orders (DROs) in August to ease their financial struggles, Insolvency Service<\/a> figures show.<\/p>\n

In total, the number of people going financially insolvent across England<\/a> and Wales<\/a> jumped by 16% in August compared with the same month a year earlier, according to Insolvency Service figures.<\/p>\n

Some 11,348 people entered insolvency in England and Wales in August, which was also 7% higher than the total in July this year.<\/p>\n

Karl Matchett19 September 2025 14:04<\/p>\n

<\/a>Tax rises \u2018inevitable\u2019, experts warn after borrowing soars in another blow for Rachel Reeves<\/p>\n

The highest August borrowing for five years outstripped predictions at \u00a318bn, \u00a33.5bn more than in August 2024, according to the Office for National Statistics<\/a> (ONS).<\/p>\n

Martin Beck, chief economist at research and policy firm WPI Strategy, said: “The \u00a310 billion buffer the chancellor<\/a> pencilled in against her key fiscal rule in March has almost certainly gone. That means tax rises in November look inevitable.”<\/p>\n

Karl Matchett19 September 2025 13:30<\/p>\n

<\/a>The pension problem we can\u2019t keep ignoring<\/p>\n

In a first written piece for The Independent, Gabriel Nussbaum – also known as That Money Guy on Instagram, TikTok and the like – has delved into the world of pensions to offer a wake-up call why many of us need to do more…now.<\/p>\n

You simply can\u2019t afford to think pensions are boring. I\u2019m 28, and I currently have \u00a367,298.35 in my pension.<\/p>\n

I don\u2019t share that to brag, I share it to be transparent. Because we don\u2019t talk about money in this country enough, and it\u2019s time to change that. Especially since pensions will likely decide whether we can ever stop working.<\/p>\n

Let me clarify something else. Pensions are boring. Another line on your payslip taking money out of your take-home pay. Something for \u201cfuture you\u201d to worry about. At least, that\u2019s what I used to think. But here\u2019s the truth\u2026<\/p>\n

Read more on pensions being your money superpowers:<\/p>\n

Karl Matchett19 September 2025 13:00<\/p>\n

<\/a>Octopus to spin off software arm Kraken for potential $10bn listing<\/p>\n

Octopus Energy is to spin off software arm Kraken, say reports, in a bid to allow the tech side to continue its rapid expansion.<\/p>\n

Kraken could look to go public within two years, says the FT, in either London or New York.<\/p>\n

A potential valuation of $10bn has been mentioned.<\/p>\n

The tech company licences its software to other firms like Eon and EDF.<\/p>\n

Karl Matchett19 September 2025 12:40<\/p>\n

<\/a>Treasury ‘alarm bells’ as situation could get worse before Budget, says expert<\/p>\n

It\u2019s not great reading for Rachel Reeves and co at the moment but it could get even worse.<\/p>\n

Grim borrowing figures, rising unemployment and inflation all being high could see consumers and businesses alike act cautiously over the coming months – making it even tougher to fix the problems, says one industry expert.<\/p>\n

\u201cAlarm bells are ringing in the Treasury after new figures showed public finances to be in a worse state than expected. That\u2019s saying something, given expectations were already rock bottom, said AJ Bell investment director Russ Mould.<\/p>\n

\u201cUK government borrowing in August hit the highest level for the month in five years. Borrowing for the first five months of the financial year now stands at \u00a383.8 billion, a rise of \u00a316.2 billion year-on-year.<\/p>\n

\u201cIt makes Chancellor Rachel Reeves\u2019 job of plugging the black hole even harder and raises the likelihood of a swathe of uncomfortable decisions at November\u2019s Budget. A drop in the pound and a spike in gilt yields was the financial markets\u2019 way of saying that the latest government borrowing figures make for grim reading.<\/p>\n

\u201cThe government continues to say it will get its finances under control, but the clock is ticking to convince the nation that the plan is the right one.<\/p>\n

\u201cBusinesses are already showing signs of nervousness around potential tax changes at the Budget, and that\u2019s causing many to delay investment or halt recruitment activity.<\/p>\n

\u201cThe UK economy isn\u2019t exactly thriving at present and there is a real risk that activity weakens in the run-up to the big day on 26 November.\u201d<\/p>\n

Karl Matchett19 September 2025 12:20<\/p>\n

<\/a>Barclays analysts not ruling out interest rate cut in November<\/p>\n

On the back of yesterday\u2019s interest rates decision to stick at 4% from the Bank of England, most analysts were suggesting that\u2019s it for this year.<\/p>\n

Some even say only one cut between now and the end of 2026 – but analysts at Barclays are not buying it.<\/p>\n

\u201cWe continue to think that a November cut is possible, in fact, it remains our base case, although it is increasingly finely balanced and dependent on the data flow in the coming weeks,\u201d read the research note.<\/p>\n

\u201cDeputy Governor Lombardelli said after the decision that November is not decided and will depend on the path of the economy and what is happening to underlying inflationary pressures. The committee retained language that policy is not on a “pre-set path” and will remain “responsive to the accumulation of evidence” which we interpret as signalling ongoing data dependence.\u201d<\/p>\n

Karl Matchett19 September 2025 12:00<\/p>\n

<\/a>Trump UK visit: The British business winners and losers after US \u00a3150 billion investment pledge<\/p>\n

Donald Trump<\/a>\u2019s UK state visit<\/a> coincided with an announcement that US firms will invest round \u00a3150 billion into the UK.<\/p>\n

The trip comes amid a key period for global trade, after the US president\u2019s tariff plans led to significant trade tensions earlier this year.<\/p>\n

Firms in some sectors have announced fresh commitments to pump billions into the UK, in a potential boost for Chancellor Rachel Reeves.<\/p>\n

However, some industries criticised a lack of trade deal support and tough investment conditions in the UK.<\/p>\n

So, which sectors have been winners and losers this week?<\/p>\n

PA19 September 2025 11:40<\/p>\n

<\/a>Vodafone pay \u00a326m for Romania expansion deal<\/p>\n

Vodafone have struck a deal to buy Telekom Romania\u2019s post-paid customer base in a departure from recent sales of European assets.<\/p>\n

The company sold off their operations in Spain and Italy over the past 18 months, the latter for $8bn. The Romania deal is worth around \u00a326m.<\/p>\n

Margherita Della Valle, CEO, said the deal \u201csupports our strategy of building strong positions in growing markets, which enables us to invest in the high-quality networks our customers rely on.\u201d<\/p>\n

Meanwhile, the telecommunications firm has confirmed Ruth McGill as the new Chief HR Officer of the group and a member of the Group Executive Committee, starting 1 January 2026.<\/p>\n

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