It was hailed by Theresa May as a business success story that showed how Brexit could be a piece of cake. A Somerset-based dessert-making company called Ministry of Cake had been sold to a French rival called Mademoiselle Desserts.
But the managing director of the firm has told the Financial Times that Britain leaving the EU will pose major challenges for its ability to recruit staff and – ultimately – to expand in the future. Read more
Chancellor Philip Hammond presented his first and last Spring Budget against a backdrop of economic resilience since the Brexit referendum last summer. It came amid heightened uncertainty as the government prepares to invoke Article 50 to leave the EU.
Read our summary of the Budget announcements here
The Bank of England has left interest rates on hold and kept its bond-buying programme unchanged. It has increased growth forecast for the next three years and said it will continue to tolerate higher inflation.
- Bank holds rate at 0.25%
- Government bond buying target remains at £435bn plus £10bn of corporate bonds
- Sterling weakens against dollar as markets rule out chance of near-term rate rise
By Gavin Jackson and Elaine Moore
The British prime minister Theresa May set out her Brexit blueprint in a speech in London on Tuesday, giving more clarity about the sort of deal the UK is seeking to negotiate with the remaining 27 members of the EU.
- UK will come out of the single market and customs union and has an “open mind” on what future customs deal would look like
- Government wants a “phased process of implementation”, but not “unlimited transitional status”.
- Promises to put final deal to vote in both Houses of Parliament
- UK will leave EU without an exit deal, if no good deal on offer.
- May warns other EU member states that any attempt at a “punitive deal” for Britain would be “calamitous” for the rest of Europe.
- Post-Brexit, the UK will reintroduce immigration controls on EU citizens; no unilateral guarantee to EU nationals resident in the UK
- Common travel area between UK and Ireland will remain.
- Promises to continue to cooperate with EU on defence and use UK’s “unique intelligence capabilities” in fight against terrorism
- She says the vote to leave was not aimed at damaging the EU
By Mark Odell and Jim Pickard
by Chloe Cornish
Theresa May should do more to help companies to employ staff who are recovering from addiction, an independent review has said.
While employers were generally supportive of existing staff who develop drug or alcohol problems, they were reluctant to hire people with addiction histories, a review led by Dame Carol Black has found.
“Additional government action is required as employers are clear that they need to ‘de-risk’ the decision to employ someone in recovery,” according to the 138-page report.
However Dame Carol did not back a suggestion made by David Cameron last year that people who reject help to get off drugs or lose weight should have their benefits cut. A Downing St spokesman said on Monday that Mr Cameron’s idea was “not under consideration”.
Dame Carol is a special adviser to the Department of Health and Public Health England and principal of Newnham College, Cambridge.
Her recommendations included an “Individual Placement and Support model” trial, which would involve expert support and discretionary funds to cover costs incurred for small companies taking on people with addictions.
The report suggested that a “try before you buy” probationary approach would help persuade employers to hire people with substance problems, after an opportunity to assess their suitability through a work trial.
And having JobCentre staff in treatment centres could help addicted people return to work faster, said the report.
Returning to or staying in employment was found to help people recover from addiction. “[D]uring the first six months after treatment for alcohol misuse 45 per cent of those who were unemployed relapsed, compared to 23 per cent of the employed,” according to one study quoted in the report.
Dame Carol said: “Our goal has been to find ways of overcoming the employment problems that people face when they are addicted to alcohol or drugs, or are obese. After a searching inquiry we are clear that a fresh approach is needed, one that brings together health, social, and employment agencies in new collaborative ways.”
Part of the report’s scope was to ascertain “whether the government should make benefit claimants with an addiction engage with treatment as a condition of their benefit entitlement”.
But it concluded that mandating people suffering from addictions or obesity to attend treatment as a precursor to receiving benefits, was unlikely to be successful or “cost-effective”.
Chancellor Philip Hammond is presenting his first Autumn Statement to the House of Commons today, setting out the Conservative government’s plans for taxes, spending and borrowing as the UK prepares for Brexit.
Remain and Leave campaigners have finally found something they agree on: the vote for Brexit is like the vote for Donald Trump. Read more
The Bank of England has increased it forecasts for growth and inflation for this year and next, part of its quarterly update on the economy. It also held interest rates.
Meanwhile the UK government has lost its case in the High Court over whether it can trigger Article 50 without a parliamentary vote, and will now file an appeal to the Supreme Court.
The BoE now expects inflation to hit 2.7% next year, and stay that high in 2018
The Bank unanimously voted to hold hold interest rates
The UK government has lost its case on triggering Article 50 in the High Court, and will appeal
UK services PMI rises to 54.5 from 52.6 – fastest pace of growth since January
Mark Carney is up in front of the Treasury Select Committee. Brexit and the economy are in focus. The appearance by the governor of the Bank of England follows that of Theresa May in Parliament, her first since the summer recess, where she effectively ducked most questions on Brexit
Carney tells MPs he is “absolutely serene” about his comments warning of a post-Brexit downturn
Bank of England governor says he was “comfortable” with the rate cut decision taken in August
May tells House government will not disclose negotiating position on Brexit
PM Repeats assertion that she can trigger Article 50 Brexit divorce clause without consent of parliament.
Eleven years ago Geoffrey Wheatcroft buried the Conservative party.
His book “The Strange Death of Tory England” marked the party’s nadir – but it was out of date shortly after it came off the presses. Just months later the Conservatives elected David Cameron. The rest is history. Read more
I’ve spent some time looking into the business background of Britain’s new chancellor, Philip Hammond. It tells us a lot about his approach to politics. Here’s what I think the public, the City, and the rest of government can expect from the new broom at 11 Downing Street. Read more
The Bank of England has cut interest rates for the first time since 2009, as it calibrates its response to the Brexit vote.
The BoE also boosted its quantitative easing programme, expanding its bond buying to the corporate debt market.
BoE in 25 bps cut, taking benchmark rates to 0.25 per cent
BoE will expand QE with an extra £70bn
Bank will also extend QE to buy corporate bonds
Mark Carney calls Brexit vote a “regime change”, expects unemployment to rise
MPC votes 9-0 for rate cut, 6-3 for QE expansion
Theresa May, Britain’s new prime minister, has announced sweeping changes with her first cabinet.
Meanwhile the Bank of England has surprised markets by leaving interest rates on hold. Many had been expecting a cut.
- Philip Hammond (treasury)
- Boris Johnson (foreign office)
- Amber Rudd (home office)
- Justine Greening (education)
- Liz Truss (justice)
- David Davis (Brexit minister)
- Liam Fox (international trade)
- Jeremy Hunt (health)
- Damian Green (work and pensions)
- Michael Fallon (defence)
- Chris Graylling (transport)
- Andrea Leadsom (environment)
- George Osborne (treasury)
- Michael Gove (justice)
- Nicky Morgan (education)
- Stephen Crabb (work and pensions)
- John Whittingdale (culture)
- Oliver Letwin (cabinet office)
- Theresa Villers (Northern Ireland)
Theresa May has taken over as prime minister after David Cameron ended his six-year tenure. She becomes the second female prime minister of the UK 26 years after the first, Margaret Thatcher, resigned.
Mrs May has started to form her cabinet with key appointments announced late on Wedneday.
Key cabinet appointments
Philip Hammond becomes chancellor
David Davis takes on new role as secretary of state for Brexit
Boris Johnson becomes foreign secretary
Amber Rudd takes over as home secretary
Michael Fallon remains defence secretary
Liam Fox is appointed in a new role as international trade secretary
Theresa May will take over as the next British prime minister on Wednesday, incumbent David Cameron has said. The swift handover of power came after her only rival, Andrea Leadsom, pulled out of the race to become the next leader of the rulling Conservative party..
David Cameron says he will offer his formal resignation to the Queen on Wednesday
1922 committee confirms Theresa May as new leader of the Conservative party, making her prime minister-elect
Andrea Leadsom withdraws from Tory leadership race, saying period of uncertainty “highly undesirable”
Labour’s Angela Eagle begins formal challenge to Jeremy Corbyn’s leadership
Lib Dems, Greens call for early general election
Theresa May, the home secretary, and pro-Brexit campaigner Andrea Leadsom, are through to the final two in the race to be the next Conservative leader.
Michael Gove was eliminated in the final round of voting at Westminster.
The two leading candidates will now be presented to 125,000 party members to make the final choice for their new party leader who will replace David Cameron as prime minister
May won the votes of 199 out of 330 Tory MPs in the second round of voting
Leadsom came second with 84
Gove was eliminated after coming third with 46
The result of the members’ ballot is due by September 9
Sir John Chilcot has released his long-awaited report on the UK involvement in the Iraq war, which has led to more than 500,000 civilian deaths in the country.
Sir John said the UK government “chose to join the invasion of Iraq before the peaceful options of disarmament had been exhausted” and “military action at that time was not a last resort”.
Prime minister David Cameron tells MPs that the report is not “accusing anyone of deliberate explicit deceit” while Jeremy Corbyn, the Labour leader, formally apologises on behalf of the Labour Party for taking the country to war.
Former Prime Minister Tony Blair said he stood by his decision to back an invasion and that the report “should lay to rest allegations of bad faith, lies or deceit.”
Blair committed to an invasion almost eight months before receiving parliamentary and legal backing
The invasion was based on “flawed intelligence and assessments” that went unchallenged
The UK was “undermining” the UN Security Council’s authority in the absence of majority support for military action.
The inquiry did not express a view on whether military action was legal but concluded “the circumstances in which it was decided that there was a legal basis for UK military action were far from satisfactory”.
The race to be the next prime minister is now in full swing. Michael Gove has launched his campaign to become the next Prime Minister argued that only someone who had campaigned for Brexit should lead the Conservative party; the frontrunner Theresa May campaigned on the Remain side.
Sterling remains lower following Bank of England governor Mark Carney’s comments that the UK was suffering “post-traumatic stress” and the central bank is likely to have to ease policy in the coming months.
As policymakers scramble to respond to the economic shock of the vote to leave, Chancellor George Osborne said that he is dropping his long-held goal of reaching a surplus in the UK’s public finances by the end of the decade.
Michael Gove sets out his bid for Tory party leadership, focus on change and reform
Labour leader Jeremy Corbyn could face a leadership challenge
George Osborne abandons his 2020 public finance surplus target
FTSE 100 enjoys best week since Dec ’11
Boris Johnson will not be running to replace David Cameron, but Michael Gove will. He’ll face new favourite home secretary Theresa May – and a handful of others.
Boris Johnson pulls out of the race for Tory party leadership
Michael Gove launched surprise run
May, Leadsom, Fox and Crabb launch candidacy
Bank of England governor hints at more monetary easing, warning of a “materially slower” growth
FTSE 100 closes at highest since Aug 2015; Gilt yields fall negative for first time ever
European leaders met today to discuss the UK’s fate after it voted to leave the EU. The British prime minister, however, was not among them.
Back home the attention was on the twin battles to lead the country’s major political parties.
David Cameron called on Jeremy Corbyn to step down as Labour leader “for the national interest”
François Hollande said London should lose the right to clear euro-denominated trades
Liam Fox threw his hat into the ring in the Tory leadership contest; Tom Watson said that he would not enter a Labour contest
Stephen Crabb launched bid for Tory party leadership
The FTSE 100 recovered all post-Brexit losses
Sterling was steady at $1.35