Tag: News Story

STORY

The Government has sold £4.25 billion of 30 year bonds at a yield of 5.8168 per cent, the highest borrowing rate recorded at a gilt auction or syndication since the Debt Management Office was established in 1998. The sale comes as rising international borrowing costs place additional pressure on Chancellor John Healey before his first Budget on 28 October.

Demand for the bonds remained strong despite the cost to the Government, with investors placing orders worth £87.2 billion. Approximately 71 per cent of demand came from British investors. The yield exceeded the previous comparable record of 5.79 per cent, set in May 1998, and reflects the wider increase in long term borrowing costs across major economies.

Higher gilt yields increase the cost of financing Government debt and can reduce the amount available for public spending or tax reductions. The Office for Budget Responsibility had already forecast debt interest expenditure of £109 billion during the current financial year, equivalent to 8.4 per cent of public spending. The Chancellor has promised to retain the existing fiscal rules, although updated economic and borrowing forecasts will not be published until the Budget.

STORY

More than 600 flights to and from British airports were cancelled after a technical failure affected the UK’s air traffic control system. NATS said the problem occurred within its flight processing system and affected services at airports including Heathrow, Gatwick, Stansted, London City, Manchester and Birmingham, as well as airports in Scotland.

NATS subsequently implemented a fix and said its system was beginning to recover, although airlines warned that disruption would continue while aircraft and crews were moved back into position. Flightradar24 recorded at least 625 cancellations, with British Airways, easyJet, KLM and Lufthansa among the affected carriers. The cause of the technical failure has not yet been established publicly.

Wizz Air described NATS as unfit for purpose in its present form, while Ryanair called for chief executive Martin Rolfe to resign. Both airlines referred to the major NATS failure in August 2023, after which the Civil Aviation Authority instructed the company to strengthen its contingency arrangements. The regulator has requested a full report and said it will consider whether further measures are needed to protect the reliability of Britain’s air traffic control system.

STORY

Israel has announced that it will close the British Consulate General in Jerusalem in response to the UK Government’s decision to restrict trade with Israeli settlements in the occupied West Bank. Israeli Foreign Minister Gideon Sa’ar said the measure had been agreed with Prime Minister Benjamin Netanyahu and accused Britain of interfering in Israel’s affairs ahead of its national election in October.

Sa’ar also said Britain would be excluded from a United States led coordination mission for Gaza and prevented from continuing its training of Palestinian Authority personnel in the West Bank. A group of British politicians and campaigners, including Jeremy Corbyn, Diane Abbott and Zarah Sultana, will be prohibited from entering Israel. The timetable for implementing the consulate closure and the other measures has not yet been confirmed.

The British sanctions will prohibit imports from Israeli settlements and restrict services including finance, construction and property advertising connected with them. Foreign Secretary Ed Miliband said the measures were intended to oppose settlement expansion and protect the possibility of a two state solution. Israel disputes the widespread international view that its settlements breach international law and described the British action as discriminatory. The UK Government has not announced whether it will take any further action in response to Israel’s measures.

STORY

Jaguar Land Rover has announced plans to remove approximately 4,000 jobs from its global workforce during the next two years. The company employs around 43,000 people worldwide, including approximately 34,000 in Britain, meaning the proposed reductions represent almost one in ten of its existing roles.

The reductions will principally affect salaried and management employees rather than manufacturing workers, with Jaguar Land Rover saying that it intends to achieve as many of the departures as possible through voluntary redundancy. The company has not published a geographical breakdown, so the number of British posts affected remains uncertain. The programme forms part of plans to save £1.7 billion and reduce the number of vehicles the company must sell annually to break even to approximately 300,000.

Jaguar Land Rover said it was responding to technological change, international competition and geopolitical uncertainty, having also faced disruption from a major cyberattack and higher tariffs in the United States. Business Secretary Jonathan Reynolds is expected to meet chief executive PB Balaji to discuss the proposals, while the Government and trade unions will examine opportunities for retraining and redeployment. The company says it remains committed to investing between £15 billion and £18 billion in electrification, digital technology, manufacturing and new vehicles over five years

STORY

The Government has withdrawn decisions to reorganise councils in Essex, Hampshire, Norfolk and Suffolk after receiving updated legal advice. Communities Secretary Angela Rayner has announced a wider review intended to establish whether the process followed by the previous administration was legally robust and compatible with the new Government’s plans for devolution.

The withdrawn decisions would have replaced existing county and district councils with five unitary authorities in Essex, five across Hampshire and the Solent, three in Norfolk and three in Suffolk. Reorganisation plans covering 14 other areas have also been paused and placed under review, together with proposals for Cambridgeshire and Peterborough and West Sussex. Ministers have not abandoned the principle of simplifying local government, but the previously selected structures and boundaries can no longer be treated as settled.

Local elections scheduled for May 2027 will now proceed using the existing council boundaries. The review will not affect Surrey, where East Surrey Council and West Surrey Council are due to replace the existing county and district authorities in April 2027. Several councils had begun or considered legal challenges against the wider programme, while local government organisations had raised concerns about its cost, timetable and potential effect upon services.

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The Government has condemned what it called “thuggish and intimidating behaviour” after police officers were injured and emergency vehicles damaged during an anti-immigration protest in Portsmouth. Hundreds of demonstrators gathered near Eastney after approximately 140 people travelling in a small boat were brought ashore in the city on Sunday.

Protesters blocked roads and attempted to prevent coaches carrying the arrivals from leaving for the Home Office processing centre at Manston in Kent. Hampshire and Isle of Wight Constabulary said objects were thrown at officers and vehicles belonging to the police, Coastguard and Border Force were damaged. A small number of officers received treatment at the scene, but police said no-one was seriously injured.

Around 200 remaining demonstrators were dispersed at approximately 4am on Monday. No arrests had been made when the force issued its latest statement, although an investigation is seeking to identify people suspected of assaulting officers, causing criminal damage or committing other offences. The Government defended the right to peaceful protest but said the conduct in Portsmouth had crossed that boundary, while Reform UK representatives criticised violence against the police and repeated their opposition to the Government’s approach to Channel crossings.

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King Charles has confirmed that the Duke and Duchess of Sussex will remain non working members of the Royal Family following their return to live in Britain. A letter authorised by the King reportedly states that the couple undertake commercial and charitable activities as private individuals and will not resume official royal duties.

The arrangement maintains the position established after Harry and Meghan stepped back from their roles in 2020. They will not use their Royal Highness styles in their working activities and cannot formally represent the monarch, although Harry remains a prince and both retain their Duke and Duchess of Sussex titles.

The clarification does not itself determine the couple’s police protection, which is handled separately by the relevant authorities according to security assessments. Their return to Britain therefore changes their place of residence but not their constitutional status or responsibilities within the Royal Family.

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UK house prices fell by 0.4 per cent in the year to August, the first annual decline recorded by the Lloyds House Price Index since November 2023. The average price was £298,468, representing a monthly fall of 0.2 per cent.

The figures varied considerably across the country. Prices rose by 6.9 per cent in Northern Ireland and 3.5 per cent in Scotland, while falling by 1.6 per cent in south east England and 1.5 per cent in London. Lloyds said economic uncertainty and higher borrowing costs had made buyers and sellers more cautious.

The index is based upon mortgages approved by Lloyds and Halifax and does not cover every property transaction. Nationwide reported annual growth of 1.6 per cent for August, illustrating the differences between individual lenders’ measurements, while the most recent official data showed prices rising by 2 per cent in the year to June.

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Masked anti-immigration demonstrators temporarily blocked roads leading to the Port of Dover on Saturday, disrupting passenger and freight traffic across the Channel. Protesters dressed predominantly in black and wearing face coverings formed blockades and chanted “stop the boats”, while congestion extended for approximately four miles and some ferry passengers experienced delays.

The Government said peaceful protest was fundamental to democracy but condemned the demonstrators’ behaviour and the travel disruption it caused. Kent Police engaged with the crowd during what it described as a protest, while the Port of Dover reported that all routes into and out of the terminal were affected. Witnesses described the appearance of the masked crowd as intimidating, although police received no reports of violence and made no arrests.

The demonstrators had dispersed and access to the port was restored by around midday, with ferry operators offering later sailings to affected passengers. Some reports linked participants to the anti-immigration Patriot Platform, while right-wing activist Stephen Yaxley-Lennon, also known as Tommy Robinson, promoted footage of the action. The organisers and precise number of participants have not been independently established. The incident nevertheless caused temporary disruption to nationally important transport infrastructure and prompted a formal Government response.

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The Government has extended the authorisation of PAVA incapacitant spray at three public sector Young Offender Institutions for a further 12 months. Specially selected and trained staff at HMYOI Feltham A, HMYOI Werrington and HMYOI Wetherby will continue to be permitted to carry the spray when responding to serious violence.

Justice Minister Jake Richards said PAVA would remain a measure of last resort and could be used only where it was necessary, proportionate and appropriate to prevent serious harm to staff or children in custody. The original 12 month authorisation was introduced in April 2025 to give staff a distance based option for intervening in the most dangerous incidents.

Every incident in which PAVA is drawn or used will continue to be reviewed, including any disproportionate effects upon children with protected characteristics or other vulnerabilities. The Independent Restraint Review Panel and an independent expert will oversee the arrangements, while NHS England evidence will be incorporated into the Government’s assessment of possible physical, emotional and behavioural effects. Ministers said their longer term aim remained a significant reduction in the use of force across the youth secure estate.