Business
Brexit impact on UK economy ‘negative for foreseeable future,’ Bailey warns
Brexit will have a negative impact on the UK’s economic growth “for the foreseeable future,” Bank of England governor Andrew Bailey has warned.
The economy is, however, likely to adjust and find balance again in the longer term, Mr Bailey, who was speaking at the G30 40th annual International Banking Seminar on Saturday, added.
The event in Washington, DC saw Mr Bailey highlight a decline in the UK’s potential growth rate from 2.5% to 1.5% over the past 15 years.
He linked this to lower productivity growth, an ageing population and trade restrictions – including post-Brexit economic policies.
“For nearly a decade, I have been very careful to say that I take no position per se on Brexit, which was a decision by the people of the UK, and it is our job as public officials to implement it,” Mr Bailey said.
“But, I quite often get asked a second question: what’s the impact on economic growth?
“And as a public official, I have to answer that question.
“And the answer is that for the foreseeable future it is negative.”
“But over the longer term, there will be – because trade adjusts – some at least partial rebalancing,” Mr Bailey added.
Referencing the works of 18th-century economist and philosopher Adam Smith, he continued: “Why do I give that answer? Because that’s the Smithian growth model: making an economy less open restricts growth over the long term.
“Longer term, you will get some adjustment. Trade does adjust, it does rebuild.
“And all the evidence we have from the UK is that is exactly what is happening.”
Investment in innovation and new technologies, including AI, may help address the decline in productivity growth in the long run, Mr Bailey said.
“If we take account of the impact of ageing and trade restrictions, we’re really putting our chips on investment,” he said.
“We’re putting our chips on general-purpose technology, and AI looks like the next general-purpose technology, so we need to work with it.
“We need to ensure that it develops appropriately and well.”
Mr Bailey warned that, although AI is likely to usher in a breakthrough in productivity long-term, it may “in the current circumstances, be a risk to financial stability through stretched valuations in the markets”.
“It doesn’t undermine the fact that AI, in my view, is likely, in addressing this slower growth issue, that we have and the consequences of it – that it is actually the best hope we have, and we really do need to do all we can to foster it,” he said.
The Bank of England governor’s prediction comes as Chancellor Rachel Reeves is under pressure ahead of next month’s Budget, with official figures showing muted growth in August following a surprise contraction in July.
The Office for National Statistics (ONS) said gross domestic product (GDP) rose by 0.1% month-on-month in August and fell by 0.1% in July, in a revision to the previous estimate for no growth.
In the three months to August, GDP grew by 0.3% compared with 0.2% growth in the three months to July, the ONS said.
The latest figures come after the International Monetary Fund (IMF) earlier this week forecast UK inflation was set to surge to the highest in the G7 in 2025 and 2026.
Business
IndiGo flight cancellations: India’s duty norms stricter than global standards, says IATA chief – The Times of India
Business
India’s First Vande Bharat Sleeper To Run Between Patna And New Delhi: 1,000 Kms In 8 Hours, 160 Kmph Speed, Luxury Amenities – Reports
Delhi-Patna Vande Bharat Sleeper: Indian Railways passengers have been waiting eagerly for the new luxurious Vande Bharat Sleeper Express, which has been in the final stages of roll out and is being given final touches at the BEML factory. Passengers travelling between Patna and New Delhi are set to get a completely new travel experience as the much-awaited Vande Bharat Sleeper Train is expected to begin operations this month. The train promises the speed of Tejas, the comfort of Rajdhani, and the advanced technology of Vande Bharat — all in a sleeper configuration for the first time.
Designed for high-speed night travel, the train is being positioned as a premium option for long-distance passengers.
Trial Runs to Begin Soon
Two rakes of the Vande Bharat Sleeper Train are being manufactured at the BEML factory in Bengaluru. The first rake is expected to be ready and dispatched by December 12, after which trial runs will begin on the Patna–New Delhi route, reported Dainik Bhaskar. The train will cover around 1,000 kms in around eight hours.
Railways plan to start regular services before the New Year. The train is expected to run six days a week, departing Patna in the evening and arriving in Delhi the next morning. The return service will follow the same overnight schedule, reported Prabhat Khabar.
Speed and Performance Highlights
The train is designed to run at an operational speed of 160 km/h, with a maximum speed capability of 180 km/h. According to railway officials, the ride will be so stable that even tea kept in a cup will not spill while the train is running at full speed.
One of its key strengths is rapid acceleration and braking, allowing it to cover distances faster and reduce time spent stopping and restarting at stations.
Coach Composition and Seating Capacity
The Vande Bharat Sleeper Train will have 16 coaches with a total capacity of 827 passengers:
* 11 coaches of AC 3-tier (611 berths)
* 4 coaches of AC 2-tier (188 berths)
* 1 coach of AC 1st Class AC (24 berths)
Railways may increase the number of coaches in the future based on passenger demand. Ticket prices are expected to be around the fare of the Rajdhani Express.
Current Status of Vande Bharat Trains in India
At present, 164 chair-car Vande Bharat Express trains are operating across India. These semi-high-speed trains are manufactured at the Integral Coach Factory (ICF) in Chennai and have received strong passenger response.
Due to growing demand for comfortable long-distance night travel, the sleeper variant has been developed, with the Patna–Delhi route likely to be among the first to get this service.
What the Railway Minister Said
Union Railway Minister Ashwini Vaishnaw recently told the Lok Sabha that the sleeper version of the Vande Bharat train has been indigenously designed for medium and long-distance overnight journeys.
He said that two rakes have been produced and are currently undergoing trials and commissioning.
Key Features and Facilities in Vande Bharat Sleeper Train
The interior of the train is designed to provide a premium airline-like and hotel-style experience. Major facilities include:
Passenger Comfort Features
* USB-integrated reading lamps for night-time reading
* Real-time passenger information system with audio and video updates
* High-speed Wi-Fi and onboard infotainment system
* Modular pantry unit for freshly prepared onboard meals
* Touch-free bio-vacuum toilets
* Hot water shower facility in First AC coaches
* Ergonomic ladders for upper berths
* PRM-friendly berths and toilets for elderly and differently-abled passengers
Advanced Safety and Security Systems
* KAVACH anti-collision technology to prevent train accidents
* Integrated emergency talk-back units for direct communication with train crew
* Fully sealed gangways between coaches to prevent dust and enhance safety
* Automatic plug doors that close before departure
* CCTV surveillance in every coach to deter theft and ensure passenger safety
Timings of the Vande Bharat Sleeper Train
The train will run six days a week:
* Evening departure from Patna, Morning arrival in New Delhi
* Evening departure from New Delhi, Morning arrival in Patna
The Vande Bharat Sleeper has been specially designed to offer high speed, superior comfort, and a premium travel experience for overnight journeys.
Business
Drug rebate rate cut by over a third after zero-tariff deal with US
Rebates paid by drugs firms to the NHS are being cut by more than a third next year following the recent tariff deal with the US.
The Government said the rebate costs for companies – the proportion of revenues from new branded medicine sales that drugs firms must pay back into the NHS – would fall to 14.5% in 2026 from 22.9% this year.
It comes after the UK-US tariff deal earlier this month, which will see zero tariffs on British pharmaceutical products imported into the US in return for the NHS raising spending on medicines.
As part of the deal, it was also agreed that repayment rates on NHS drug prices would be capped at 15% for the first three years.
This is the amount that drugs firms pay back to the NHS to ensure it does not overspend its allocated budget for branded medicines.
The Government said it is able to offset the lower rebate thanks to falling costs for medicines, in part driven by drugs coming off patent.
But Downing Street admitted soon after the trade deal that the agreement to increase the threshold for what the NHS can pay for new medicines by 25% will cost it around £1 billion extra a year by 2029.
The Association of the British Pharmaceutical Industry (ABPI) said the “high and unpredictable” rebate costs had been a “significant drag on UK life science competitiveness in recent years”.
Richard Torbett, chief executive of the ABPI, said: “It’s good that the amount of revenue companies will need to pay to the UK government has come down in 2026.”
He added: “However, this is only the first step in returning the UK to a more competitive position.
“Payment rates remain much higher than in similar countries, and there is work to do to accelerate the NHS’s adoption and use of cost-effective medicines to improve patient care.”
The Department for Health said the lower rebate costs should also make the UK an attractive place for investment by pharma firms, clinical trials and the early launch of new medicines.
Health innovation minister Dr Zubir Ahmed said that together with the tariff deal, “this will help secure and drive investment in the sector, ensuring Britain remains a powerhouse for life sciences for the benefit of our patients, our NHS and our economy”.
Science minister Lord Vallance added: “We need our brilliant life sciences companies to discover and get important new medicines to patients right across the NHS and to create jobs in the UK.
“This new rate helps achieve that.”
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