The economy

The decision to raise the standard rate of VAT from 17.5 per cent to 20 per cent next year will be a significant driver behind a stubborn rate of inflation, the Bank of England has said.

The private as well as the public sector could be hit by job losses in the future.

The Chancellor, George Osborne has called on the UK’s banks to improve the level of access that smaller firms have to finance.

UK manufacturing is enjoying a sharp rise in output, but the trend may not be a lasting one, a new report has warned.

The chances of the UK economy entering a second recession next year have risen, according to the National Institute for Economic and Social Research (NIESR).

The UK economy expanded at twice the forecast rate during the second quarter of the year.

A leading business group has urged the government to extend the promise of a national insurance contribution holiday for new businesses right across the country as a new survey shows business confidence in decline.

The UK labour market could face a five-year jobs deficit if the growth predictions of the Office for Budget Responsibility (OBR) are just slightly weaker.

A study by a leading think-tank has claimed that reducing the obstacles to starting up a new business could push up economic growth significantly over the coming years.

The UK economy continued to grow in the second quarter of the year, but the recovery is still fragile, a new report has revealed.