Business
Brexit partly to blame for high inflation, says Rachel Reeves
Brexit is partly to blame for high inflation in the UK, Rachel Reeves has said as she made the case for rebuilding ties with the EU.
The Chancellor said the cost of trading with Brussels was among the reasons for rising prices in Britain.
During an appearance at Riyadh’s Future Investment Initiative summit on her visit to Saudi Arabia, Ms Reeves attributed the UK’s vote to cut ties with the EU to “a rejection of open borders”.
But she said there was “public support” for the Labour Government’s move to reset relations with the bloc, including an agreement secured earlier this year aimed at cutting red tape for travellers and businesses.
“I think Brexit was a rejection of open borders, but if you look at the UK today, when we did that deal back in May with the European Union, to take down some of those barriers and indeed to introduce an ambitious youth mobility scheme, there was public support for that,” Ms Reeves said.
“And actually the sort of worry, perhaps, that we had as the Government, that reopening that can of worms of our relationship with the European Union might be quite dangerous – actually, the response has been very good.
“Businesses, especially small businesses, who face increasing red tape since we left the European Union, for workers, who are now locked out of the jobs market in Europe, there are obviously huge benefits from rebuilding some of those relations.”
Ms Reeves is preparing to deliver a challenging Budget next month in which she is widely expected to increase taxes again to plug a hole in the public finances.
Economists at the Institute for Fiscal Studies (IFS) have said she would need to raise £22 billion to restore the £10 billion of headroom she previously left herself.
The pressure has been eased slightly by better-than-expected inflation, with the Consumer Prices Index (CPI) rate remaining steady last month at 3.8%, but the Chancellor said on Tuesday that it was still too high.
“Inflation is too high in countries around the world including in the UK, and one of the reasons for that is that there’s too much cost associated with trade with our nearest neighbours and trading partners,” she told the audience.
Ms Reeves is leading a UK delegation in Saudi Arabia as the Government seeks to deepen ties with the region in a search for economic growth.
On Tuesday, she welcomed a package of two-way trade and investment deals with the country which the Treasury says is worth £6.4 billion.
The agreements include up to £5 billion in financing support from UK Export Finance for projects in Saudi Arabia, which the Government hopes will unlock contracts for British suppliers, and a new Barclays headquarters in Riyadh.
“The £6.3 billion package of new trade, procurement and investment commitments unveiled today will turbocharge business opportunity and create thousands of jobs at home – key ingredients for kickstarting economic growth and building an economy that works for, and rewards, working people,” Ms Reeves said.
Downing Street has defended the visit amid questions about Saudi Arabia’s human rights record, insisting that “economic partnership can co-exist with frank dialogue on areas of disagreement”.
“The Chancellor will be honest with Gulf counterparts over areas of divergence and cultural differences,” the Prime Minister’s official spokesman said on Monday.
Last Updated:
Indian benchmark indices opened higher on Wednesday, tracking positive global cues.
Sensex Today
Sensex Today: Indian benchmark indices — Sensex and Nifty — ended higher on Wednesday, tracking positive global cues and investor optimism ahead of the US Federal Reserve’s policy outcome. Sentiment was further lifted by reports suggesting that US President Joe Biden may soon finalise a trade deal with India.
The BSE Sensex climbed 368.97 points, or 0.44%, to close at 84,977.13, while the NSE Nifty50 gained 117.7 points, or 0.45%, to end at 26,053.9.
Broader markets also advanced, with the NSE Midcap 100 rising 0.64% and the Nifty Smallcap 100 up 0.43%.
Barring Nifty Auto, all sectoral indices closed in the green. Nifty Oil & Gas led the gains, up 2.12%, followed by Energy, Metal, Media, Bank, Financial Services, IT, Pharma, FMCG, and Consumer Durables.
Among Sensex constituents, NTPC, Power Grid, Adani Ports, HCL Tech, and Tata Steel were top gainers, while Bharat Electronics, Eternal, Mahindra & Mahindra, Maruti Suzuki, and Bajaj Finance ended as major laggards.
Ponmudi R, CEO, Enrich Money, said: “The Nifty50 marked its third straight day of gains, reflecting continued bullish sentiment. However, the index faces resistance around the 26,050–26,100 range, with support at 25,900–25,660. As long as it sustains above 25,800, the trend remains positive. A decisive move above 26,100 could drive an extended rally toward 26,250–26,400, while a drop below 25,900 might trigger mild profit-taking at higher levels.”
Global Cues
Asian markets traded mixed on Wednesday as investors awaited the US Federal Reserve’s policy announcement, where a second consecutive 25-basis-point rate cut is widely expected. Markets have nearly priced in the move, which would lower the federal funds rate to 3.75–4.00 per cent.
Japan’s Nikkei climbed over 1 per cent to a fresh record high, while the Topix was flat and South Korea’s Kospi added 0.17 per cent. Australia’s ASX 200 slipped 0.16 per cent after Q3 inflation rose to 3.2 per cent, the fastest pace in over a year. Hong Kong markets remained closed for a public holiday.
On Wall Street, major US indices hit new record highs overnight — the S&P 500 rose 0.23 per cent, Nasdaq gained 0.80 per cent, and the Dow advanced 0.34 per cent — as investors positioned ahead of the Fed decision.
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
October 29, 2025, 09:15 IST
Read More
Keiron TourishBBC News NI north west reporter
BBCIt’s not easy out there for families living through the cost-of-living crisis – and that’s why a new scheme in County Tyrone is offering free baby clothes in a bid to support people facing hardship.
The project in Strabane, funded by the Department for Communities, will be available to any family with children up to five years old.
It will also support people with nappies, baby and family toiletries for a nominal fee, but that can be waived in certain circumstances.
Karen Brown, a health visitor with the Western Trust, said the HiVe Baby Hub and free clothing exchange aims to support families in “one of the most socio-economically deprived areas in the entire UK”.
The project, which involves the Western Trust, the GP Federation and a local community project, will operate from the Grass Roots Centre on John Wesley Street.
Families can be referred to the service through their health visitor, family nurse and social workers or even call into the centre themselves.
The project also aims to reduce the environmental impact of clothing waste through recycling.
What does the Strabane baby clothes scheme offer?
Ms Brown, who came up with the idea, said she sees first-hand the needs of parents locally.
“The cost-of-living crisis has hit an awful lot of families hard, so this is a great initiative where we can help.
“Families who have that wee bit extra can also donate if they like.”
To support struggling families, the project already operates a wellness café and a social supermarket where people can purchase groceries at a discounted price if they are part of the membership scheme.
It also offers help with a range of services from money management to learning how to cook and grow your own vegetables.
Ms Brown said that as well as offering a free clothing exchange, it’s also a hygiene hub, which can “help with baby toiletries, nappies and anything really that a parent is going to need to look after their child”.
Ursula Doherty, from the Strabane Community Project, said people are struggling to meet the cost of baby hygiene products and clothes, and the exchange was a great initiative because it focuses on re-using and recycling.
“We do live in a very throw-away society, so it’s a great project in order to take it from landfill,” she said.
She added that people are going through real hardship.
“More and more families are finding it hard to make ends meet – food, fuel and even baby items.
“That’s right across the board. That’s people who are working and people who are on benefits. Everybody.
“In an ironic way it has equalised us all because everybody is suffering, so it’s always about looking at new initiatives.”
Derry and Strabane Deputy Mayor Niree McMorris said it was an amazing initiative.
“They have things like the clothes exchange, which is taking things out of landfill and putting them back into the community for re-use.
“In the Baby Hub, young families can avail of nappies and hygiene products.
“Everything you need to take care of your child. And also hygiene products for the mammy as well, so I think that’s really important.
“It’s amazing to see the good work that they’re doing here.”
The wait is finally over for over 1 crore central government employees and pensioners. The Union Cabinet, led by Prime Minister Narendra Modi, has officially approved the Terms of Reference (ToR) for the 8th Central Pay Commission (CPC). The Commission is expected to submit its recommendations within 18 months from the date of its formation. (Image: AI-Generated)
The Central Pay Commission is set up every few years to review and revise salary structures, retirement benefits, and service conditions. (Image: AI-Generated)
Historically, a new Pay Commission is implemented roughly every 10 years. (Image: AI-Generated)
The salary hike depends largely on the fitment factor, which is a multiplier used to calculate the revised basic pay. In the 7th Pay Commission, the fitment factor was 2.57, raising the minimum basic salary from Rs 6,000 to Rs 18,000. (Image: AI-Generated)
For the 8th Pay Commission, different fitment factors are being considered. Here’s how they could impact salaries: if the fitment factor is set at 1.83, the basic salary could rise from Rs 18,000 to around Rs 32,940. A slightly higher factor of 1.86 would increase it to Rs 33,480. However, if the government applies a more generous fitment factor of 2.47, the revised basic pay could reach Rs 44,460. These figures help illustrate how significantly the fitment factor influences salary revisions under the Pay Commission. (File Photo)
Gross salary includes Basic Pay, Dearness Allowance (DA) – linked to inflation, revised twice a year, and House Rent Allowance (HRA) – based on city category (30% for metro cities, 20% for Tier-2 cities, and 10% for Tier-3 cities). (Image: AI-Generated)
Let’s calculate the gross salary using a fitment factor of 2.47 and assuming: Basic Pay: Rs 44,460; DA: Rs 0 (for simplicity); HRA (30% for metro): Rs 13,338. The New Gross Salary = Basic Pay + DA + HRA, which is 44,460 + 0 + 13,338 = Rs 57,798. (Image: AI-Generated)
Sensex Ends 369 Points Higher, Nifty At 26,053; Oil & Gas, Metal Shares Shine
Low-cost tactics can ease heat-linked issues in Bangladesh RMG sector
Australian police design AI tool to decipher predators’ Gen Z slang
-
Fashion1 week agoChinese woman charged over gold theft at Paris Natural History Museum
-
Entertainment1 week agoJohn Grisham unveils his first-ever mystery, “The Widow”
-
Tech1 week agoThis Smart Warming Mug Is Marked Down by $60
-
Tech1 week agoEaster Island’s Moai Statues May Have Walked to Where They Now Stand
-
Fashion1 week agoThe North Face and Cecilie Bahnsen launch second collaboration
-
Tech1 week agoOpenAI has slipped shopping into ChatGPT users’ chats—here’s why that matters
-
Tech1 week agoAI model could boost robot intelligence via object recognition
-
Politics4 days agoTrump slams ‘dirty’ Canada despite withdrawal of Reagan ad