6:41 am, October 26, 2026
UK business activity grows at fastest pace for eight months
UK businesses have reported the strongest growth for eight months, according to new figures, in a positive signal ahead of the Budget.
New early figures showed that firms were boosted by the sharpest rise in new work for two years.
The closely watched S&P Global flash UK composite purchasing managers’ index (PMI) – which is based on preliminary data from the manufacturing and services sectors – recorded a reading of 53.1 for October. It represented an improvement from a 52 reading in September and marked the fastest growth since February.
Banks set to report stronger profits as they face prospect of tax hike
Britain’s high street banks are set to unveil stronger profits as they face the prospect of being targeted for a tax hike in the Budget.
Lloyds Banking Group, HSBC, NatWest Group and Santander will report their third-quarter financial results next week.
Banks are widely speculated to be a target of chancellor John Healey’s Budget this week, with Healey thought to be considering increasing the surcharge on profits from 3% to 8% – reversing a tax cut for the sector introduced by former Conservative chancellor Jeremy Hunt.
Government pledges extra £220m to tackle potholes
The government has released an extra £220m in funding to help councils in England fix potholes across the country.
That comes on top of the £4.9bn that has already been spent on repairing roads this year, which has resulted in close to 7,000 miles of road being resurfaced, according to the Department for Transport.
Figures from local councils have shown that over 1% more resurfacing has been completed than last year, with £800 million more being spent than before the current Labour government came into power.
The markets
The FTSE 100 ended a losing week in the red on Friday as higher oil prices and lingering artificial intelligence spend concern kept investors sidelined.
In London, the FTSE 100 index ended down 34.67 points, 0.3%, at 10,690.36. The FTSE 250 ended 25.68 points higher, 0.1%, at 24,237.39, and the AIM all-share shed 4.26 points, 0.6%, at 746.67.
The pound was quoted at 1.3376 dollars, up from 1.3365 dollars. Against the euro, sterling climbed to 1.1946 euros from 1.1933 euros.
Rayner: Nothing off table in Burnham’s talks with European Union
Nothing should be off the table in talks with the European Union, Angela Rayner said after Andy Burnham called for an ‘honest discussion’ about a return to freedom of movement with the bloc.
The prime minister wants to consider various options for a new relationship with Brussels, potentially including a return to full EU membership or joining the single market – which would require free movement.
Burnham will meet EU chiefs including European Commission president Ursula von der Leyen in Brussels on November 20 as he seeks to strike a better deal with the bloc.
Recovery under way after storms kill man and cut power to 800,000 properties
The recovery is under way after two storms in three days saw one man killed by a falling tree and more than 800,000 properties lose power.
The final weather warning ended at 9pm on Sunday after Storm Boelo pummelled the north of the UK, bringing 84mph gusts and a third of a month’s rain to pockets of Scotland.
Power cuts hit 838,700 British properties during Boelo and its predecessor by hours, Storm Austen. A 60-year-old man died after he was hit by a falling tree in Dumfries and Galloway, western Scotland, at about 10.30am on Sunday.
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Weather
Northern and eastern areas will start dry with some brightness today, before cloud and rain spread north-eastwards across the UK, reports BBC Weather. Winds will strengthen throughout the day.
Tonight will be windy, with further heavy rain moving eastwards from the west, followed by clearer spells and blustery showers in many areas.