British finance minister Jeremy Hunt will seek to fill a 50 billion pound ($57 billion) hole in the country's public finances with around 30 billion pounds of spending cuts and 20 billion in tax rises, two government sources said on Monday, Reuters reported. Hunt is due to present a fiscal statement to parliament on Nov. 17, in a bid to restore financial market confidence after his predecessor Kwasi Kwarteng's Sept. 23 tax cutting plan pushed sterling to a record low against the U.S. dollar and ultimately forced Liz Truss to resign as prime minister.

Britain's banks were slow to start passing on increases in central bank interest rates to savers and consumers should consider switching to another UK lender, the Financial Conduct Authority said on Monday, Reuters reported. Banks have been quick to pass on higher interest rates to their mortgage customers, but savers are also keen to get better returns after years of record low central bank interest rates. "It was a slow start," FCA Chief Executive Nikhil Rathi told parliament's Treasury Select Committee. "I would also encourage consumers to actively consider switching," Rathi said.

Improving transparency of 'non-banks' such as pension funds is a first step in applying lessons from turmoil in Britain's government bond market, Bank of England executive director Sarah Breeden said on Monday, Reuters reported. The central bank had to intervene in UK bond markets in September after the 1.6 trillion pound Liability Driven Investment funds (LDI) sector - used by pension funds to help ensure future payouts - struggled to meet collateral calls after the previous government's tax cut plans triggered a market rout.

The Bank of England’s policymakers raised interest rates on Thursday by the largest amount since 1989, intensifying their battle against inflation even as the central bank predicted that the British economy would enter a “prolonged” recession, the New York Times reported. The bank lifted its key policy rate by three-quarters of a point, ramping up its effort to tighten financial conditions and taking the rate to 3 percent, the highest since November 2008.

Out-of-pocket creditors have been in a forgiving mood since Covid-19 shuttered businesses in 2020, but that looks to be changing, Bloomberg News reported. A form of legal action in which creditors can apply to have companies shut down and their assets sold to pay debts has become increasingly common. Firms were protected from some forms of creditor action by legislation brought in during the pandemic, but those restrictions ended earlier this year.

Lending to British consumers rose last month by less than expected and the number of mortgages approved by British lenders eased back, according to Bank of England data on Monday that point to tougher times ahead for Britain's economy, Reuters reported. The BoE said that net unsecured consumer credit rose by 745 million pounds ($861 million) in September, the smallest monthly increase since December 2021, following a 1.215 billion pound increase in August. A Reuters poll of economists had pointed to net lending of just under 1 billion pounds.

Britain, rattled by the recent near meltdown of some pension funds, is pressing ahead to tighten oversight of the so-called shadow banking sector, taking the lead ahead of possible co-ordinated international action, Reuters reported. U.K. regulators could preempt recommendations by the G20's Financial Stability Board (FSB) to require permanently higher liquidity buffers for Liability Driven Investment (LDI) funds - used by UK defined benefit pension schemes - backed by regular stress tests, two sources said.

Made.com Group Plc plans to file for insolvency after the British online furniture store failed to find a rescue buyer and ran out of cash, Bloomberg News reported. The company said Tuesday it intends to appoint PwC as administrator putting potentially as many as 500 jobs at risk. Shares of Made.com have been suspended from trading on the London Stock Exchange. News of Made.com’s collapse marks a steep decline for a company which only listed last year with a valuation of £775 million ($893 million) and was hailed as a millennial favorite.

The Bank of England on Tuesday is set to become the first major central bank to sell off assets accumulated during a 13-year-old stimulus program, providing a test case for how quickly markets can shift away from easy-money policies, Bloomberg News reported. The UK central bank, which was buying gilts as recently as a few weeks ago to soothe market stress, plans an auction of the first £750 million in short-maturity securities it wants to unload. Results of the operation are due about 3 p.m. in London.

U.K. house prices fell the most since the start of the pandemic in October as political and market turmoil sent shock waves through the property market, Bloomberg News reported. The figures add to evidence that the property market is now in the grip of a downturn, with experts predicting values could fall by more than 10%. That would erase some of the gains made over the last two years. “The market has undoubtedly been impacted by the turmoil following the mini-budget, which led to a sharp rise in market interest rates,” said Robert Gardner, chief economist at Nationwide.