U.K. house builders cut back on developments at a pace last seen during the pandemic and the global financial crisis 14 years ago after a jump in mortgage rates, a closely watched survey found. S&P Global said its PMI index for the sector dropped to 42.7, the lowest since May 2020 when homebuilding was brought to a standstill by the first Covid-19 lockdown. Excluding the pandemic, it was the weakest since 2009. It bucked a wider pickup in the construction industry in May. The overall PMI rose to 51.6 from 51.1 in April, boosted by commercial building and civil engineering work.
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The Bank of England has completed its planned sales of corporate bonds originally bought as part of a program to stabilize markets in the wake of the Brexit vote and the emergence of the Covid-19 pandemic, Bloomberg News reported.
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Wejo, a Manchester, England-based company that deals in connected vehicle data, has filed a notice of intention to enter administration to save it from liquidation, InsideRadio.com reported. The company, whose largest shareholder is General Motors Ventures, says it does not expect the move to impact its operations or business, according to BusinessLive. Wejo has been supplying connected car data to at least one U.S. broadcaster and has been working on signing others as clients.
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A Scottish Parliament committee has launched a public consultation to seek views on new Scottish bankruptcy laws, Scottish Legal News reported. The Bankruptcy and Diligence Bill will, among other provisions, create a “mental health moratorium”, meaning enforcement action against someone with serious mental health problems can be stopped. The bill will also make changes to the process for recovering money for creditors, including a requirement for creditors to provide a debtor with information about debt advice before enforcement.
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An investigation could be launched into an energy company which went bust owing more than £1m to livid customers, the Dorset Echo reported. Dorset, U.K.-based Daylight Energy officially went into liquidation in early May after racking up extensive debts and leaving hundreds of customers out of pocket. According to the report, compiled by insolvency practitioners Verulam Advisory, there are 397 customers who paid deposits totalling £1,014,427 - all of which is unsecured.
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Britain's Treasury chief said he would be prepared to see the U.K. economy slip back into recession if further interest rate hikes are necessary to bring down inflation, the Associated Press reported. With the Bank of England expected to keep raising rates following higher-than-anticipated inflation figures this week, Jeremy Hunt said it was necessary to prioritize measures to slow the pace of price increases. In an interview with Sky News that aired Friday, Hunt said the “only path to sustainable growth” is to bring inflation under control.
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British ministers are considering sweeping reforms to the 39 billion pounds ($49.22 billion) Pension Protection Fund that protects savers in company pension plans, the Financial Times reported, according to Reuters. Proposals brought before ministers could see the government-backed fund being given an extended remit to take on struggling corporate “defined benefit” retirement schemes, the newspaper said citing people briefed on the matter.
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Most British households, many feeling a cost-of-living squeeze, can expect cheaper energy bills from July after regulator Ofgem slashed its price cap to reflect a slump in wholesale costs, Reuters reported. Britain has the joint-highest rate of inflation among the Group of Seven nations along with Italy, and official data this week showed consumer prices rose 8.7% in annual terms in April, slowing from March, but still at elevated levels.
A council has been warned urgent action is needed to avoid bankruptcy over the spiraling cost of special educational needs and disabilities (SEND), BBC News reported. In the last financial year, Bristol City Council spent £94.6m on the sector, £16m more than was initially budgeted. Added to previous overspend, it now has a total deficit of £42.5m with three years to reduce the amount. The council is now working to lower costs despite rising demand in its SEND provision.
Bankrupt rocket company Virgin Orbit is shutting down after selling its facility leases and equipment to a trio of aerospace companies in an auction, the company confirmed on Tuesday, CNBC reported. “As Virgin Orbit embarks on this path, the management and employees would like to extend their heartfelt gratitude to all stakeholders,” the company said in a statement. Spun out of Virgin Galactic in 2017 by founder Sir Richard Branson, Virgin Orbit reached rarefied air by flying multiple missions.