There is an “evens” chance of Britain falling into recession by the end of next year, according to a leading economic think-tank, which called on the Bank of England to wield a “sledgehammer” against the expected downturn, the Financial Times reported. The National Institute for Economic and Social Research revised down its forecast for growth by 0.3 percentage points in 2016 and 1.7 percentage points in 2017 — larger downgrades than those made by the International Monetary Fund last month.

The Bank of England's stress tests are "worse than useless", according to a report claiming British banks would buckle under the strain of a major economic shock, BT.com reported. A study by the Adam Smith Institute said the Bank's stress tests are like a "ridiculously easy exam with a ludicrously low pass rate", which disguises the ability of UK banks to cope with an economic blow on the scale of the 2008 financial crisis. The report, which pinpoints 13 flaws in the stress test, said every single UK lender would currently fail "more rigorous" stress tests by the US Federal Reserve.

Britons’ vote to exit the EU is reverberating through its economy, with mixed effects. Some signs are already pointing to a slowdown, at least in the immediate weeks following the vote. Financial information firm IHS Markit Ltd. said on Monday its July purchasing managers index for the manufacturing sector fell to its lowest level since 2013, the latest in a series of gloomy economic signposts, The Wall Street Journal reported.

Banks have warned regulators that Britain’s exit from the EU could undermine work they are doing to hive off their retail banking operations from more risky investment banking activities, the Financial Times reported. Executives at several banks, including Royal Bank of Scotland and Lloyds Banking Group, have asked regulators at the Bank of England for clarification on the potential fallout from Brexit for their ringfencing plans.

Retail tycoon Philip Green's greed and disregard for corporate governance led to the demise of BHS and cost 11,000 jobs, a report by British lawmakers said, calling the collapse of the stores group "the unacceptable face of capitalism", Reuters reported. Billionaire Green, 64, owned BHS for 15 years before he sold the loss-making 180-store chain to Dominic Chappell, a serial bankrupt with no retail experience, for one pound last year. It went into administration in April, and all remaining 114 stores are due to close in the next four weeks.

New and increased government insolvency fees introduced yesterday will undermine the UK insolvency regime and cost creditors £8m per year, R3 has warned, according to Accountancy Age today. By threatening creditor returns, the government could undermine the UK’s World Bank insolvency ranking, the insolvency trade body said. Among other new fees, the government is introducing a fee of £6,000 in every compulsory liquidation or bankruptcy, even when the case is handled by a private sector insolvency practitioner rather than the government’s official receiver.

The English Court has recently considered who can be recognized as “foreign representatives” under the Cross-Border Insolvency Regulations 2006 (CBIR) in the case of Re 19 Entertainment Limited, about a US company in chapter 11, the National Law Review reported yesterday.

Britain’s housing market has taken a post-referendum nosedive with a sharp drop in purchase inquiries at estate agents, a reduction in sales agreed and expectations of falling prices. In its latest survey of estate agents and surveyors, conducted after the June 23 vote to leave the EU, the Royal Institution of Chartered Surveyors found a “marked drop in activity in the housing market”, the Financial Times reported. The monthly survey is a leading and closely watched indicator of house prices and economic activity related to moving home.

As the political chaos after Britain’s vote to leave the European Union starts to subside, one of the most pressing issues for the country’s new leader is how to keep doing business with the bloc’s vast single market of 500 million consumers. Many are pointing to fjord-flecked Norway as a possible model for the way forward, the International New York Times reported. Theresa May, who became Britain’s new prime minister on Wednesday, has said she wants to get the best deal possible to safeguard the country’s industrial base and its services industry.

A debt-ridden independent oil explorer has pulled its shares from London’s junior AIM market after restructuring talks with its lender fell apart, The Telegraph reported. Trinidad-focused Trinity Exploration suspended its shares this morning after Citibank called in repayments on its $13m debt pile. The bank had offered the embattled explorer numerous waivers while negotiating a wider financial restructuring of the business, but has now scrapped the repayment moratorium and frozen the explorer’s accounts.