Business

Argos has fallen to a £223.2 million pre-tax loss in its latest financial year after cutting more than 2,000 jobs and suffering a drop in sales amid a tough general merchandise market.

The retailer — owned by Sainsbury’s since 2016 — saw its performance swing sharply from the £37.3 million profit it posted the previous year. Newly filed accounts for the 12 months to 1 March 2025 show revenue slipped from £4.22 billion to £4.13 billion, reflecting weakened demand across key categories.

Headcount fell from 12,000 to 9,800, as Argos pushed ahead with restructuring efforts designed to simplify its operating model and reduce costs.

The company said revenue had been hit by a “subdued and highly competitive general merchandise market”, noting that online traffic dropped significantly in the first half of the year. A “cooler and wetter summer” also dampened seasonal demand, leading to sales falling short of expectations.

Despite the weak start, Argos reported improved trading during the second half as online visits recovered. The retailer returned to year-on-year growth in the fourth quarter, supported by heavy promotional activity.

Argos posted an underlying pre-tax loss of £73 million, driven by thinner margins as promotional sales rose sharply in what it described as “tough trading conditions”.

In a statement signed off by the board, Argos said it was focused on driving more frequent shopping and encouraging larger baskets:
“Following a slow start to the financial year and within a general merchandise market that remains highly competitive, our focus is on encouraging customers to shop with us more often and with bigger baskets. We are driving change in our digital and commercial proposition and have made good progress strengthening the Argos offer.”

The update comes shortly after Sainsbury’s confirmed it had entered talks over a potential sale of Argos to Chinese e-commerce giant JD.com — only to abruptly abandon the discussions a day later. JD.com, China’s largest retailer with more than 600 million active customers, had been exploring expansion into European omnichannel retail, but no agreement was reached.

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Argos plunges to £223m loss as 2,000 jobs cut and sales slump

Zipcar is preparing to withdraw from the UK after its US owner decided to wind down operations ahead of the introduction of London’s expanded Congestion Charge, which will apply to electric vehicles for the first time from next year.

The car-sharing company has begun a formal consultation with its UK workforce and has suspended future bookings, a move expected to result in significant job losses. Zipcar will not accept any new reservations beyond 31 December 2025, pending the outcome of the consultation.

In an email sent to customers, James Taylor, Zipcar UK’s general manager, wrote: “I’m writing to let you know that we are proposing to cease the UK operations of Zipcar and have today started formal consultation with our UK employees. We will temporarily suspend bookings, pending the outcome of this consultation.”

The decision follows a difficult year for the company. Zipcar’s UK losses ballooned to £11.7 million in 2024, compared with just £364,000 the year before. Revenue also declined from £51 million to £47 million.

In its most recent accounts, the company cited “external cost pressures”, including persistently high electricity prices which disproportionately affected its large electric fleet, for which charging costs were bundled into rental pricing. A weak vehicle resale market and rising motor insurance premiums added further financial strain.

Although Zipcar has not explicitly linked its exit to upcoming policy changes, the timing coincides with Sadiq Khan’s decision to extend the Congestion Charge to electric vehicles. From January 2026, EVs will no longer be exempt, meaning Zipcar’s electric fleet would incur a £13.50 daily charge—a shift expected to significantly increase operational costs for the business.

The company employed 71 full-time staff in 2024, down from 92 the previous year.

Founded in Cambridge, Massachusetts, Zipcar became a pioneer of urban car-sharing and was listed on Nasdaq before being acquired by Avis in a $500 million deal. Its UK retreat marks the end of nearly two decades of operations in London, where it once positioned itself as a key alternative to private car ownership.

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Zipcar to shut down UK operations as London prepares new EV Congestion Charge

Startups face a fundamental challenge when competing against established corporations. Limited marketing budgets often prevent early-stage companies from accessing traditional PR channels that larger competitors routinely utilize. Yet credibility remains essential for securing clients, attracting investors, and recruiting talent.

Research from Global Recognition Awards reveals that 63% of award-winning small businesses report income increases, compared to 48% among large companies. The data suggests that recognition delivers disproportionate benefits to smaller organizations. While Fortune 500 companies already command market authority, startups gain critical third-party validation that transforms how potential customers perceive them.

The business recognition sector itself has grown substantially. Projected to reach $13.3 billion by 2025, the industry now serves companies across more than 50 countries. Traditional awards programs typically require 3-6 months from application to announcement. Global Recognition Awards compressed that timeline to 14 days while maintaining evaluation standards that reject 69% of applicants.

Blockchain Technology Addresses Industry Credibility Gap

Pay-to-play schemes have undermined confidence across the awards sector. Many programs accept nearly every applicant willing to pay entry fees, creating certificates that carry minimal weight with customers or investors. Jethro Sparks, CEO of Global Recognition Awards, implemented blockchain timestamping to combat this problem.

“We’re the first major business awards program to implement blockchain timestamping for certificates, creating tamper-proof recognition,” Sparks explained. The technology embeds verification data directly into digital certificates, preventing alteration after issuance. Recipients can prove authenticity to third parties without relying solely on the issuing organization’s reputation.

The blockchain integration required significant technical investment. The platform has processed over 12,400 verified evaluations since implementing the system. Each certificate receives a unique timestamp recorded on distributed ledgers, making fraudulent replication effectively impossible. Companies pursuing human resources awards or other categories receive documentation that withstands scrutiny from investors conducting due diligence.

Speed and Rigor Create Competitive Advantage

Most startups cannot afford to wait months for recognition results. Product launches, funding rounds, and market opportunities operate on compressed schedules. Reducing evaluation time from 90 to 180 days to 14 days changes the strategic value of awards for time-sensitive businesses.

The accelerated timeline raises concerns about the quality of evaluation. Global Recognition Awards maintains a 69% rejection rate, rejecting more applications than it approves. The company employs transparent judging criteria across 26 industry categories, evaluating metrics such as revenue growth, market differentiation, and customer satisfaction scores.

Sparks emphasized the balance between speed and standards. “We’ve disrupted traditional timelines by reducing recognition time from months to 14 days while maintaining rigorous standards,” he noted. The company processes applications from businesses ranging from bootstrapped startups to publicly traded corporations. Recent winners include Tesla, Nvidia, SpaceX, OpenAI, and Moderna.

Guaranteed Media Coverage Amplifies Impact

Winning an award generates limited value if customers never learn about it. Traditional recognition programs leave publicity entirely to recipients, who must negotiate separately with media outlets. Startups often lack the relationships or budgets to secure meaningful coverage.

Global Recognition Awards include guaranteed placement on tier-1 outlets, including Bloomberg, Yahoo Finance, and Business Insider. The bundled media access eliminates a major barrier that prevents startups from capitalizing on recognition. Coverage appears automatically rather than requiring separate outreach, saving both time and money.

The 4.8-star rating on Trustpilot, based on 76 reviews, suggests that recipients value the integrated media component. Survey data from over 1,200 business professionals indicate that 95% of leaders believe CEO awards significantly boost company morale and public perception. Women entrepreneurs report particularly strong results, with 88% experiencing business growth within six months of receiving recognition.

Lead Generation Validates Return on Investment

Startups must justify every expenditure in terms of measurable outcomes. Awards that function primarily as vanity credentials deliver questionable value. Data showing that recipients average 40% increases in qualified leads provides concrete evidence of commercial impact. Understanding how to win awards becomes relevant when programs demonstrate clear ROI.

The lead generation metric reflects changes in customer behavior. Third-party validation from credible sources reduces perceived risk for potential buyers. Particularly in B2B markets, purchasing committees prefer vendors with documented recognition from independent evaluators. Awards function as pre-screening mechanisms that accelerate sales cycles.

Companies experiencing 212% compound annual growth since 2020 attract attention from competitors. The Stevie Awards, established in 2002, receive over 12,000 annual nominations across nine programs. TITAN Business Awards and Globee Awards offer international recognition across multiple categories. None combine blockchain verification with 14-day processing and bundled media coverage, according to the Global Recognition Awards.

Global Reach Serves Diverse Markets

Recognition programs have historically centered on North American or European markets. Startups operating in Asia-Pacific, Africa, or Latin America faced limited options for international validation. Global Recognition Awards operates across 50+ countries, with recent winners from the Philippines, the United Kingdom, the United States, and Australia.

The geographic diversity matters particularly for startups pursuing global customers. Recognition from programs with an international scope carries more weight than regional alternatives. Companies can reference awards when entering new markets, establishing credibility before building local track records.

“Our transparent, merit-based process with a 69% rejection rate has set new standards for authenticity,” Sparks stated. The rejection rate exceeds that of most competitors, which accept the majority of paying applicants. Maintaining high standards becomes essential when recipients use awards to support major business decisions, such as raising capital or signing enterprise clients.

Democratizing Access Without Lowering Standards

The original motivation behind faster, blockchain-verified awards was to expand access beyond large corporations. Established companies already possess resources to pursue traditional recognition through lengthy application processes. Smaller organizations require efficient alternatives that deliver comparable credibility without incurring disproportionate investment.

The platform has awarded 3,800 tamper-proof certificates while maintaining 100% uptime during global operations. Technical reliability matters because recipients depend on verification systems remaining accessible when customers or investors check credentials. The architecture supporting blockchain integration must function continuously across different time zones and jurisdictions.

The $7 million in annual revenue demonstrates commercial viability. Sustainable recognition programs require sufficient scale to maintain operational quality while serving diverse client segments. The business model strikes a balance between accessibility and the costs of rigorous evaluation and blockchain infrastructure.

Awards alone cannot substitute for product quality, customer service, or sound management. They function as accelerants that amplify existing strengths rather than creating credibility from nothing. Startups with genuine achievements benefit most from recognition that effectively communicates those accomplishments to broader audiences.

Byline: Sophia Mudanza

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How Global Recognition Awards Give Startups Credibility Without Big Budgets

The Purchasing Managers’ Index, commonly known as PMI, is a monthly survey that measures how business leaders feel about the economic conditions in their industry.

It focuses on areas such as new orders, production levels, employment, supplier deliveries and inventory changes.

Understanding PMI in Simple Terms

According to experts working for Montellis Group, PMI is valuable because it gives a direct glimpse into how companies are operating before official economic reports are released. Most readers who are new to economic data are often surprised by how straightforward PMI actually is.

A reading above 50 signals expansion, while a reading below 50 suggests that activity is slowing. Because these surveys come from the people managing supply chains and production lines, the results tend to reflect real shifts in business confidence and customer demand.

What makes PMI so influential is its timing. It is one of the earliest pieces of economic information published each month, which means traders, analysts and financial institutions treat it as an early signal of where the economy might be heading.

Even small changes in the index can trigger large reactions, especially if the reading differs from what markets expected. As specialists at Montellis Group explain, PMI acts almost like a pulse check on the economy.

How PMI Influences Market Volatility

PMI reports often create noticeable movements in currencies, commodities and stocks because these instruments respond strongly to changes in economic expectations. For instance, when manufacturing PMI in a major region unexpectedly rises, it can strengthen that region’s currency.

A stronger outlook typically suggests healthier business activity and improved demand, which supports the currency in foreign exchange markets. On the other hand, a weaker-than-expected PMI reading can lead to sharp intraday declines, as traders adjust their outlooks quickly.

Commodities react as well. A higher PMI usually implies stronger industrial activity, which can increase demand for raw materials such as copper, oil, or steel. When PMI signals contraction, demand expectations soften, and commodity prices can slide.

Stocks also respond in a similar way. Companies tied to manufacturing, transportation or energy may rise when PMI suggests growth but face pressure when the index dips below key thresholds.

According to analysts from Montellis Group, the reason the report has such an immediate impact is that it shapes market sentiment. Big players move capital quickly when expectations shift, and this rapid adjustment filters through major trading instruments.

Even sectors not directly tied to manufacturing can respond, because PMI shapes the broader conversation around economic momentum. When the reading surprises, volatility tends to spike as traders reposition.

Why Understanding PMI Matters

Anyone following the markets can benefit from understanding how PMI works. It offers context behind sudden price moves and helps explain why certain days feel more volatile than others.

Professionals at Montellis Group often encourage individuals to track how markets behave immediately before and after PMI releases, as patterns can emerge over time. Recognizing those patterns can make daily market activity feel far less random and much more connected to underlying economic signals.

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What Is PMI and How Does It Affect the Markets? Montellis Group Are Here to Help

Entrepreneur and Dragons’ Den star Steven Bartlett is preparing to launch a new tech news website later this month, as he expands his fast-growing media and business empire.

The publication, reportedly called Founded, will cover the technology and start-up landscape across the UK and US, according to City AM. Bartlett is understood to be hiring around 10 journalists alongside an editor-in-chief as he builds out a full newsroom.

A holding page on Founded.com has replaced the earlier preview content, but cached versions hint at the publication’s mission: “FOUNDED is a culturally fluent business publisher built for the founders of today… trusted by entrepreneurs, operators, and builders around the world.”

The move comes shortly after Bartlett unveiled a new parent company, Steven.com, and secured an eight-figure investment valuing the business at about £320 million. The firm, incorporated in the US, now houses Bartlett’s creator-led ventures including FlightStory, FlightCast, and FlightFund, with Bartlett retaining more than 90% ownership.

Bartlett has become one of the UK’s most influential business personalities, hosting The Diary of a CEO podcast since 2017 and investing in more than 60 companies, among them matcha drink Perfect Ted and hydration brand Cadence.

Speaking during a recent visit to FlightStory’s London headquarters, he said he saw his current ventures as merely the starting point. “I’m less than 1% of the way on my journey,” he said. “If we do a good job in laying good foundations, I think the business will exist long after I’m gone.”

Drawing a comparison to Disney’s 102-year legacy, Bartlett said he aims to build a generational media company that helps define the future of the creator economy.

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Steven Bartlett to launch new tech news website as media ambitions grow

The UK’s financial watchdog is preparing to bring Environmental, Social and Governance (ESG) ratings agencies under formal regulation for the first time, in what is being described as the most sweeping overhaul of sustainable finance rules in the country’s history.

The Financial Conduct Authority (FCA) has launched a consultation setting out plans to police the rapidly expanding ESG ratings sector, which has grown into a $2.2bn (£1.6bn) global industry as investment managers increasingly embed ESG criteria into their strategies.

Ratings agencies assess companies and funds on environmental impact, social responsibility and governance standards. But the sector’s explosive growth has triggered persistent concerns about inconsistent scoring, opaque methodologies and potential conflicts of interest, particularly where ratings providers also offer consultancy services to the same firms they assess.

Under the FCA’s proposals, agencies would be required to disclose their methodologies and data sources, and identify and manage any conflicts. The move follows warnings from investors and regulators worldwide that divergent ESG scoring practices undermine confidence in sustainable finance.

James Alexander, chief executive of the UK Sustainable Investment and Finance Association, welcomed the proposals. “We particularly welcome the emphasis on transparency and consistency with international standards,” he said, noting alignment with earlier recommendations from the International Organisation of Securities Commissions (IOSCO).

The government’s decision to back FCA oversight comes despite the Chancellor and Prime Minister pushing regulators to slash “excessive red tape” in a bid to stimulate economic growth. Ministers wrote to major regulators last year demanding proposals to lighten regulatory burdens on businesses.

Nevertheless, the FCA says regulating ESG ratings could generate £500 million in net benefits over the next decade by reducing the due diligence costs that asset managers currently bear when comparing divergent ratings methodologies.

The proposals appear to have broad industry backing: 95% of respondents to a government survey supported bringing ESG ratings under regulatory oversight.

Andy Ford, head of responsible investment at St. James’s Place, said regulation was a welcome step but cautioned against assuming it will resolve every challenge in the market. “ESG ratings can differ between providers because methodologies differ,” he said. “Investment managers shouldn’t be overly reliant on third-party ratings. These should be one input among many, compared with in-house analysis rather than outsourced judgement.”

The consultation is open until March next year, with final rules expected towards the end of 2026.

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FCA to regulate ESG ratings providers amid transparency and conflict-of-interest concerns

Fears over the strength of the UK economy appear to have kept shoppers away from high streets on Black Friday, adding to growing evidence that consumer caution will weigh heavily on growth into 2026.

Footfall across all shopping destinations fell by 2% on Friday and was 7.2% lower than the equivalent days last year, according to data from monitoring firm MRI Software. Only locations close to central London offices bucked the trend, seeing a slight lift as workers browsed stores during breaks or on their commutes.

While much Black Friday activity has shifted online, the picture there was also uneven. The online retail association IMRG reported a sharp fall in sales on Thursday but noted a stronger performance earlier in the week.

“The cost of living squeeze appears to be weighing on overall activity,” said Jenni Matthews of MRI Software.

The subdued results coincided with a warning from consultancy KPMG, which said that soft consumer spending would be one of the key drags on the economy over the next 12 months. Although much of the £26bn tax-raising impact of Rachel Reeves’s first budget will not feed through immediately, KPMG said households remain under severe pressure as unemployment edges up towards 5.2%.

“The outlook for growth in 2026 is subdued, reflecting the impact of a cooling labour market and weak household spending,” said Yael Selfin, KPMG’s chief economist. She noted some positive areas, including investment in green energy, and said the medium-term picture could improve if planning reforms help unlock housing construction. KPMG forecasts GDP growth of 1% in 2026 and 1.4% in 2027.

Two separate reports published on Monday reinforced the downbeat outlook among business leaders. The CBI’s latest services sector survey, conducted before the budget, recorded the steepest fall in business optimism in three years, with firms citing rising costs and uncertainty over future demand.

“Businesses expect little near-term relief, with uncertainty about demand and persistent cost pressures set to constrain future hiring and investment plans,” said Charlotte Dendy of the CBI.

Meanwhile, the Institute of Directors said its confidence index remained close to historic lows, slipping to –73 in the run-up to the budget before inching up to –72 afterwards. “Persistent speculation over tax rises kept confidence subdued,” said Anna Leach, the IoD’s chief economist. “With four in five business leaders viewing the budget negatively, confidence remains close to record lows.”

Hospitality businesses also warned they will face significant financial pressure from next year’s business rates changes, despite measures in the budget intended to ease the transition away from Covid-era support schemes. Many pubs are bracing for steep increases due to rises in the rateable value of their premises — a key component of the business rates formula — in contrast to many retailers whose valuations will fall due to weaker high street trading.

In her budget speech, Reeves said she was introducing “permanently lower tax rates for over 750,000 retail, hospitality and leisure properties”, funded in part by higher rates on major retailers and online giants. But operators say the reality for pubs in particular will be far harsher.

“In the vast majority of cases it seems that instead of the promised reduction in our bills, our members will be expected to pay more — in many cases vastly more — once existing support ends next April,” said Paul Crossman, chair of the Campaign for Pubs and licensee of three pubs in York.

Alex Reilley, founder of the café-bar chain Loungers, said the classification of some of the company’s venues softened the impact, but warned that many operators would still face higher costs. “Most hospitality businesses will be looking at an increase of some description,” he said. “For our pub sector it could quite easily be an extinction event.”

The government has pledged billions of pounds in transitional relief to soften large increases in business rates next year, but industry analysts warn the measure merely delays — rather than eliminates — the financial hit.

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UK shoppers pull back on Black Friday as concerns grow over weakening economy

Accenture has begun referring to its global workforce of nearly 800,000 people as “reinventors” as part of a sweeping restructuring aimed at positioning the consultancy as a leader in artificial intelligence.

Chief executive Julie Sweet has already adopted the new terminology in internal communications, and the company is encouraging the label to be used across the business. The shift stems from a June reorganisation that merged Accenture’s strategy, consulting, creative, technology and operations arms into a single entity called Reinvention Services.

The rebrand is the consultancy’s second major identity overhaul in three years, following the 2022 transformation of its interactive division into Accenture Song — a move widely mocked across the advertising and marketing industries.

Damon Collins, co-founder of the agency Joint, was scathing about the latest effort. “From the people that brought you Accenture Song now come the ‘reinventors’. Staff are going to cringe,” he said. “If they think this is going to win favour with employees or clients, they have another thing coming.”

Accenture’s terminology joins a growing corporate lexicon of unconventional job titles: Disney’s engineers are “imagineers”, Apple’s in-store support teams are “geniuses”, and MediaMonks staff call themselves “monks”.

Industry branding experts warned that recasting the title of every role risks creating confusion. Gonzalo Brujó, global chief executive of Interbrand, said the reinvention label applies meaningfully only to a fraction of employees. “To be a real reinventor is a name for just a few people,” he said. “Pushing it across all 800,000 will raise expectations internally and cause pushback.”

Accenture’s shift comes as the New York–listed consultancy sharpens its AI focus and signals a tougher stance on employee skills. Sweet told investors in September that the company would “exit” staff unable to adapt to using AI tools at work. Accenture has already laid off 11,000 workers, leaving a global workforce of 791,000.

The company has also reportedly updated internal HR systems to refer to its workforce as “reinventors” instead of “workers”, according to the Financial Times.

Accenture’s move reflects the pressure on major consulting firms to reposition themselves amid rapid advances in generative AI. But the company is navigating a complex backdrop: its shares have fallen more than 25% this year after Donald Trump ordered US government agencies to review their spending on large consultancies.

Accenture posted 7% revenue growth to $69.7bn (£52.7bn) in the year to August but warned that US federal spending cuts are likely to weigh on its performance next year. Its market value has dropped to about $155bn.

Accenture declined to comment.

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Accenture rebadges 800,000 employees as ‘reinventors’ as consultancy pivots to AI

The UK government has withdrawn its backing for a $1.15bn (£870m) loan to a major gas development in Mozambique, citing escalating concerns over climate impact, human rights violations and the deadly insurgency that engulfed the region.

Business secretary Peter Kyle confirmed on Monday that the UK Export Finance (UKEF) agency would pull its support for the long-delayed Mozambique liquified natural gas project, led by French energy giant TotalEnergies. The decision comes five years after the scheme became a focal point for environmental protests and accusations that it was fuelling instability in Cabo Delgado province.

The project has been frozen since 2021, when Islamist militants stormed the nearby town of Palma, killing more than 800 people and forcing Total to evacuate staff and halt operations. The company is preparing to restart work in the coming months after enhanced security measures were deployed in the area.

Kyle said UKEF’s withdrawal followed “a comprehensive assessment of the project and the interests of UK taxpayers”, adding: “Whilst these decisions are never easy, the government believes that UK financing of this project will not advance the interests of our country.”

The UK had initially approved the loan in 2020, shortly after MPs on the environmental audit committee urged the previous Conservative government to end financial support for overseas fossil fuel projects, warning such backing undermined the UK’s climate commitments.

UKEF originally argued the scheme could support more than 2,000 UK jobs, benefit small businesses and deliver economic development for Mozambique. A 2019 agreement with Centrica also raised the possibility that gas from the project could supply British households.

But environmental groups and development campaigners have long criticised the project’s climate impact and the forced relocation of communities living near the construction zone. They also argued that Mozambique — one of the countries most vulnerable to climate change — should be supported to expand renewable energy capacity instead.

Antoine Bouhey of Reclaim Finance said the UK’s withdrawal showed the project was “riddled with problems and cannot be supported”, adding that major lenders including Standard Chartered, Crédit Agricole and Société Générale should now follow suit. “It has been blatantly clear for years that this project is a disaster for local communities and for the climate,” he said.

Friends of the Earth chief executive Asad Rehman said the government’s decision was long overdue. “This gas project is a huge carbon timebomb, linked to serious human rights abuses,” he said. “It should never have been given UK taxpayer-funded support in the first place.”

Rehman urged other governments to withdraw backing and called on the UK to shift support toward climate adaptation efforts and clean energy projects in Mozambique, where 60% of the population still lacks access to electricity.

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UK withdraws $1.15bn loan from Mozambique gas project over climate and security risks

Prime Minister Keir Starmer has denied accusations that Chancellor Rachel Reeves misled the cabinet or the public over the state of the public finances ahead of last week’s Budget, after a fresh row erupted between the Treasury and the Office for Budget Responsibility (OBR).

Speaking at a nursery in London, Starmer defended Reeves’ tax rises and her decision to scrap the two-child benefit cap, despite weeks of speculation over possible income tax hikes. He insisted that revenue-raising measures were unavoidable and dismissed allegations that the government exaggerated the scale of its fiscal challenges.

“There was no misleading,” he said. “It was inevitable we would always have to raise revenue. I was clear we needed more headroom.”

His comments follow criticism of the Treasury’s pre-Budget handling after Reeves repeatedly signalled that income tax rates might be raised — a position later abandoned. Reports suggested the Treasury believed there was a £30bn shortfall in fiscal headroom, a figure now disputed by the OBR.

In a letter to the Treasury Select Committee, OBR chair Richard Hughes confirmed that there was no significant deterioration in the public finances after 20 October, aside from the government’s decision to ditch planned welfare cuts. That assessment contradicts claims circulating in early November that the UK faced a much deeper fiscal hole.

Further questions have arisen about the timing of Reeves’ statements. On 5 November, she implied Labour was prepared to break its manifesto pledge on income tax. By 13 November, media briefings claimed tax rises had been shelved due to improved forecasts. The OBR has since confirmed no such improvement occurred in that period.

The BBC’s political editor, Chris Mason, said on Monday that the Treasury had “misled the public” by allowing speculation to build on inaccurate or incomplete information.

Starmer rejected the accusation, pointing instead to the OBR’s productivity review, which downgraded trend growth forecasts and forced the government to raise additional revenue. He said he was “bemused” that the OBR had not revised these figures before the General Election.

“I’m not angry at the productivity review,” he said. “It’s a good thing to do them from time to time.”
He added that the OBR remained “vital and integral” to maintaining financial stability.

Hughes is due to appear before MPs on Tuesday in what is expected to be a tense hearing between the OBR and the Treasury.

Starmer’s remarks came during a speech outlining the government’s next phase of its economic growth agenda. He identified three priorities — deregulation, welfare reform, and boosting trade ties — as central to raising living standards.

He also appeared to confirm that the government will back all recommendations from economist John Fingleton’s review of the nuclear sector. The review found that a planning system dominated by “process over outcomes” had made the UK the costliest place in the world to build nuclear power plants.

“I am accepting the Fingleton recommendations,” Starmer said, with business secretary Peter Kyle instructed to extend reforms across other sectors.

“Today represents the biggest, most radical change to nuclear regulation in our country’s history,” said Lawrence Newport of Looking for Growth. “These reforms will transform our energy sector, allowing us to make more energy here and reduce bills for households and businesses.”

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Starmer rejects claims government misled public as tensions with OBR escalate