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Britain’s economy grew by 2.3% in April as the high street and hospitality sector reopened, official figures show.

That meant that GDP was a record 27.6% larger compared with the same month last year when the nation was in the grip of the first coronavirus lockdown.

Chancellor Rishi Sunak hailed it as a “promising sign that our economy is beginning to recover”.

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Mr Sunak is also understood to be pushing for companies to commit to climate reporting
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The chancellor acknowledged that workers continued to need support

The data from the Office for National Statistics (ONS) covers a period when non-essential retail as well as outdoor drinking and dining were allowed to resume – on 12 April.

It followed a subdued start to the year when latest lockdown measures had sent the economy into reverse gear.

The ONS said that April’s monthly growth was the fastest since July last year, when businesses were reopening after the initial period of coronavirus restrictions.

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But it still left gross domestic product (GDP) 3.7% below its pre-pandemic peak of February 2020.

Jonathan Athow, ONS deputy national statistician for economic statistics, said GDP was boosted by strong growth in retail spending as well as schools – which had returned in March – being open for the full month, and the start of the reopening of the hospitality sector.

There was also an increase in car and caravan sales as well as negative one-off factors such as car plant shutdowns and oil field maintenance.

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Pubs reopen doors in Stockton-on-Tees

Meanwhile, trade friction following the end of the Brexit transition period continued to have an impact.

“Exports of goods have now, broadly, recovered from the disruptions seen at the beginning of the year,” Mr Athow said.

“However, imports of goods from the EU are still significantly down on 2020 levels.”

Monthly imports from non-EU countries were the highest since records began in January 1997, the ONS said.

The chancellor said: “Today’s figures are a promising sign that our economy is beginning to recover.”

But he added that, while a million people had come off furlough across March and April, many workers still required continued support.

The COVID-19 pandemic resulted in GDP shrinking by nearly 10% in 2020, the biggest collapse in 300 years.

Forecasters predict that as Britain emerges from the crisis it will see a consumer-led bounce back with the fastest pace of growth since the Second World War.

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‘Thank goodness’ for recovery – but longer term relatively weak, says BoE governor

But there are fears that a delay to the 21 June date for the end of lockdown measures could hold back the recovery.

UK GDP shrank by 1.5% in the first quarter though on a monthly basis the economy has been recovering ever since a 2.5% contraction in January, posting growth of 0.7% in February and 2.1% in March.

April’s growth figure was broadly in line with economists’ expectations.

Thomas Pugh, UK economist at Capital Economics, said: “The jump in GDP in April was another sign that consumers are raring to spend as the economy reopens.

“GDP is on track to return to its February level before the end of the year.

“If anything, the economy could regain its pre-crisis level even sooner.”

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Donald Trump announces sweeping global trade tariffs – including 10% on UK imports

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Donald Trump announces sweeping global trade tariffs - including 10% on UK imports

Donald Trump has announced a 10% trade tariff on all imports from the UK – as he unleashed sweeping tariffs across the globe.

Speaking at a White House event entitled “Make America Wealthy Again”, the president held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.

“This is Liberation Day,” he told a cheering audience of supporters, while hitting out at foreign “cheaters”.

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He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.

Mr Trump said the US has been “looted, pillaged, raped, plundered” by other nations.

President Donald Trump holds a signed executive order during an event to announce new tariffs in the Rose Garden of the White House, Wednesday, April 2, 2025, in Washington. (AP Photo/Evan Vucci)
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Pic: AP

His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.

Mr Trump confirmed the European Union would face a 20% reciprocal tariff on all other imports. China’s rate was set at 34%.

The UK’s rate of 10% was perhaps a shot across the bows over the country’s 20% VAT rate, though the president’s board suggested a 10% tariff imbalance between the two nations.

It was also confirmed that further US tariffs were planned on some individual sectors including semiconductors, pharmaceuticals and critical mineral imports.

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Trump’s tariffs explained

The ramping up of duties promises to be painful for the global economy. Tariffs on steel and aluminium are already in effect.

The UK government signalled there would be no immediate retaliation.

Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.

“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.

“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.

“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”

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Who showed up for Trump’s tariff address?

The EU has pledged to retaliate, which is a problem for Northern Ireland.

Should that scenario play out, the region faces the prospect of rising prices because all its imports are tied to EU rules under post-Brexit trading arrangements.

It means US goods shipped to Northern Ireland would be subject to the EU’s reprisals.

The impact of a trade war would be expected to be widely negative, with tit-for-tat tariffs risking job losses, a ramping up of prices and cooling of global trade.

Research for the Institute for Public Policy Research has suggested more than 25,000 direct jobs in the UK car manufacturing industry alone could be at risk from the tariffs on car exports to the US.

The Society of Motor Manufacturers and Traders (SMMT) had said the tariff costs could not be absorbed by manufacturers and may lead to a review of output.

The tariffs now on UK exports pose a big risk to growth and the so-called headroom Chancellor Rachel Reeves was forced to restore to the public finances at the spring statement, risking further spending cuts or tax rises ahead to meet her fiscal rules.

Read more:
What do Trump’s tariffs mean for the UK?
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A member of the Office for Budget Responsibility (OBR), David Miles, told MPs on Tuesday that US tariffs at 20% or 25% maintained on the UK for five years would “knock out all the headroom the government currently has”.

But he added that a “very limited tariff war” that the UK stays out of could be “mildly positive”.

He said: “There’s a bit of trade that will get diverted to the UK, and some of the exports from China, for example, that would have gone to the US, they’ll be looking for a home for them in the rest of the world.

“And stuff would be available in the UK a bit cheaper than otherwise would have been. So there is one, not central scenario at all, which is very, very mildly potentially positive to the UK. All the other ones which involve the UK facing tariffs are negative, and they’re negative to very different extents.”

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Donald Trump’s tariffs will have consequences for globalisation, the US economy and geopolitics

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Donald Trump's tariffs will have consequences for globalisation, the US economy and geopolitics

For decades, trade and trade policy has been an economic and political backwater – decidedly boring, seemingly uncontroversial. 

Trade was mostly free and getting freer, tariffs were getting lower and lower, and the world was becoming more, not less, globalised.

But alongside those long-term trends, there were some serious consequences.

Trump latest: US president announces sweeping global trade tariffs

Mature, developed economies like the UK and US became ever more reliant on cheap imports from China and, in the process, saw their manufacturing sectors shrink.

Large swathes of the rust belt in the US – and much of the Midlands and North of England – were hollowed out.

And to some extent that’s where the story of Donald Trump’s “Liberation Day” really began – with the notion that free trade and globalisation had a darker side, a side he wants to remedy via tariffs.

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He imposed a set of tariffs in his first term, some on China, some on specific materials like steel and aluminium. But the height and the breadth of those tariffs were as nothing compared with the ones we have just heard about.

Not since the 1930s has the US so radically increased the level of tariffs on all nations across the world. Back then, those tariffs exacerbated the Great Depression.

It’s anyone’s guess as to what the consequences of these ones will be. But there will be consequences.

Consequences for the nature of globalisation, consequences for the US economy (tariffs are exceptionally inflationary), consequences for geopolitics.

President Trump with his list of tariffs for various countries. Pic: Reuters
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Imports from the UK will face a 10% tariff, while EU goods will see 20% rates. Pic: Reuters

And to some extent, merely knowing that little bit more about the White House’s plans will deliver a bit of relief to financial markets, which have fretted for months about the imposition of tariffs. That uncertainty recently reached unprecedented levels.

But don’t for a moment assume that this saga is over. Nothing of the sort. In the coming days, we will learn more – more about the nuts and bolts of these policies, more about the retaliatory measures coming from other countries.

We will, possibly, get more of a sense about whether some countries – including the UK – will enjoy reprieves from the tariffs.

To paraphrase Churchill, this isn’t the end of the trade war, or even the beginning of the end – perhaps just the end of the beginning.

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Heathrow bosses were warned about power supply after stolen cables turned off runway lights, MPs told

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Heathrow bosses were warned about power supply after stolen cables turned off runway lights, MPs told

Heathrow bosses were warned its power supply was vulnerable less than a week before a major outage, and a terminal could have got some flights moving by mid-morning rather than being shut for a day, a committee of MPs has heard.

The chief executive of Heathrow Airline Operators’ Committee Nigel Wicking told MPs of the Transport Committee he raised issues about resilience on 15 March after cable and wiring theft took out lights on a runway.

Mr Wicking said he believed Heathrow’s Terminal 5 could have been ready to receive repatriation flights by “late morning” on the day of the closure, as “there was opportunity also to get flights out”.

Politics latest: ‘Disastrous’ not to shut Heathrow during outage, airport boss says

A fire at an electricity substation in west London meant the power supply was disrupted to Europe’s largest airport for a day – causing travel chaos for nearly 300,000 passengers, the committee heard.

“I’d actually warned Heathrow of concerns that we had with regard to the substations and my concern was resilience”, said Mr Wicking, the head of a body representing more than 90 airlines using Heathrow Airport.

“So the first occasion was to team Heathrow director on the 15th of the month of March. And then I also spoke to the chief operating officer and chief customer officer two days before regarding this concern.

“And it was following a number of, a couple of incidents of, unfortunately, theft, of wire and cable around some of the power supply that on one of those occasions, took out the lights on the runway for a period of time. That obviously made me concerned.”

Other problems

The biggest challenge was getting information, Mr Wicking said.

The desire for information on the outage and closure was so large that a Teams call on the day of the closure was “maxed out” with “a thousand participants”, he added.

However, Heathrow chief executive Thomas Woldbye said keeping the airport open during last month’s power outage would have been “disastrous”.

There was a risk of having “literally tens of thousands of people stranded in the airport, where we have nowhere to put them”, Mr Woldbye told MPs.

Fire surveillance and CCTV systems were down as a result of having limited electricity, he added, meaning it would not have been safe to reopen.

‘The most expensive airport in the world’

Heathrow should have top quality infrastructure and service, Mr Wicking said.

“It is the most expensive airport in the world with regard to passenger challenges. So from our perspective, that means we should actually have the best service. We should have the best infrastructure,” he added.

Aerials show burned substation which shut Heathrow Airport
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Aerials show burned substation which shut Heathrow Airport

A review on resilience at Heathrow was done in 2018, he told MPs, but was told it was “not for sharing” with airlines.

“I think it is for sharing now because frankly, we’re paying enough”, Mr Wickling said he told Mr Woldbye.

“I don’t feel that we should be paying more attention for further resilience. The resilience should have been there in the first place.”

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