Britain’s red-hot labor market showed signs of cooling as unemployment hit the highest level since 2021, the number in work declined and private-sector wage growth eased, Bloomberg News reported. The portion of people out of work and looking for a job rose to 4.3% in the three months through July, the highest since September 2021, the Office for National Statistics said Tuesday. The report also showed average earnings excluding bonuses rose 7.8% from a year earlier, maintaining the fastest pace since the series began in 2001.

Bank of England policy maker Catherine Mann signaled she’s likely to support further interest-rate increases to combat inflation, warning that investors are pricing in an ever larger premium into UK assets to account for future price shocks, Bloomberg News reported.

The leader of Shropshire Council said the authority considered issuing a notice to declare bankruptcy, but decided against it, BBC.com reported. Inflation and increased demand for services meant the council's reserves were "practically gone". They raised the issue in a cabinet meeting in the same week that Birmingham City Council declared itself effectively bankrupt. Leader Lezley Picton said a plan was in place to control finances. Last year, Ms Picton said adult social care made up 85% of the council's entire budget. Leaving just 15% for everything else.

Local government bodies have warned that more councils across the UK could declare themselves in financial dire straits, after the country’s second biggest city said it could not balance its books, Agence France-Presse reported. In a statement on Tuesday, Birmingham City Council in central England said it had issued a Section 114 Notice under the Local Government Finance Act 1988, effectively declaring itself bankrupt. The statutory trigger blocks spending on all but essential services, and forces councillors to come up with an action plan within 21 days to tackle the shortfall.

Birmingham City Council has declared itself effectively bankrupt, the BBC reported. The largest local authority in Europe, it has issued a Section 114 notice preventing all but essential spending to protect core services. The pressures have been linked to a £760m bill to settle equal pay claims. In a joint statement, the leader and deputy leader of the Labour authority said the move was a "necessary step as we seek to get our city back on a sound financial footing".

B&M has sealed a deal to buy up to 51 Wilko stores from administrators following the collapse of the rival discount chain, PA Media reported. Wilko fell into administration last month, with insolvency experts from PwC spending recent weeks seeking to hammer out a rescue deal for the historic retailer. Administrators have held talks with a raft of suitors, including HMV owner Doug Putman, in order to save Wilko’s 400 stores and 12,500 jobs. On Tuesday, B&M European Value Retail said it has agreed to acquire up to 51 Wilko sites from the administrators in a deal worth up to £13 million.

Britain’s broad money supply has stopped growing for the first time in at least 13 years, a reading that will deepen concerns among monetarists urging the Bank of England to show restraint in its battle against inflation, Bloomberg News reported. Economists who predicted the surge in inflation during the pandemic after seeing money-supply growth rocket are now worried that the UK is in danger of recession and deflation.

Nearly a third of councils in poor areas in the United Kingdom are considering bankruptcy as they run out of money, the Mirror reported. A survey of 47 local authorities found five are currently in the process of deciding whether to declare they cannot balance their books this year. The councils are thinking about issuing what is known as a Section 114 notice, which would freeze all non-essential spending. A further nine local authorities said they might have to declare bankruptcy next year.

Britain dodged a recession last year despite a historic energy price shock and an investor revolt that forced out the prime minister. Recent data have raised questions about whether it will be so lucky this time around, Bloomberg News reported. Surveys of purchasing managers and retailers both point toward a sudden slowdown in recent weeks. More companies are taking steps to address financial distress. Even the jobs market, which remained strong through the pandemic, is showing signs of weakening.

When United Kingdom housebuilder Crest Nicholson Holdings Plc reported its first-half results in June, it expected full-year profit to meet expectations of just under £75 million (£73.7 million to be exact). This morning it slashed that outlook to “around £50 million.” It mostly comes back to the ongoing stand-off between buyers and sellers in the U.K. housing market. Mortgages are much more expensive than they were 18 months ago. Banks are happy enough to lend — keen, even, as Marcus points out.