Closing post
Time to wrap up…
The governor of the Bank of England has warned there are growing signs that the UK jobs markets is slowing as employers respond to higher national insurance contributions (NICs) by cutting hiring and offering weaker pay rises.
Andrew Bailey also told the BCC’s annual conference today that growth in the economy is likely to “moderate” this year, after a pacy start to 2025.
His comments came shortly before new data showed America’s economy shrank faster than previously thought in January-March, due to the surge of imports to beat Donald Trump’s trade wars.
Prime minister Keir Starmer acknowledged the tax burden placed on businesses during his speech to the BCC this morning, as firms urged the government not to impose further tax rises.
In other news…
A report into the Office for National Statistics has identified ‘cultural’ failings which led to its problems producing reliable data, and recommending splitting the top job running the ONS.
Energy secretary Ed Miliband has declined to support a plan to build the world’s longest subsea power cable to bring North Africa’s renewable energy to British homes and companies.
Shell has said it has “no intention” of making an offer for the rival fossil fuel company BP after speculation it had been planning a £60bn takeover, ruling out a formal approach for the next six months.
The former Barclays chief executive Jes Staley has lost a legal challenge against the UK financial regulator, leaving him banned from the City for life for misleading the watchdog over his relationship with the sex offender Jeffrey Epstein.
The dollar has fallen to a three-year low following a report that Donald Trump is considering bringing forward the announcement of his choice to succeed the Federal Reserve chair, Jerome Powell.
No respite for the US dollar as the widely-followed DXY index depreciates to its lowest level since early 2022.
— Mohamed A. El-Erian (@elerianm) June 26, 2025
Today’s move brings the year-to-date drop to just over 10%.#economy #markets #dollar pic.twitter.com/uQUYYl2kTq
The selloff pushed the pound up by almost a cent to $1.375, its highest level in over three years.
Review finds cultural failings at UK statistics office
The Devereux Review of the Office for National Statistics has found cultural problems that ultimately contributed to the statistical problems that have plagued the organisation.
They fall into three areas:
a “commendable interest in both new approaches to statistics”, which led the ONS to de-prioritise the crucial task of delivering core economic statistics of sufficient quality to guide decision making
A weak system of planning and budgeting, leading to ONS staff not having the resources they needed.
A reluctance, at senior levels, to hear and act on difficult news. The ONS aimed to be “radical, ambitious, inclusive, and sustainable” – which it lived up to in the Covid-19 pandemic when other activities were de-prioritised. However, the Review adds, “several people suggested that the list of values was missing “realistic””.
The review says there has been:
…a reluctance on the part of some to take at face value the warnings which have been raised, apparently preferring instead to categorise those making the warnings as lacking in accountability.
This categorisation seems to me to be without foundation, and it has undoubtedly made life difficult for many senior people working at ONS who are concerned about the quality of population and economic statistics. I am not surprised that so many, experienced, senior leaders have chosen to leave.
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