The UK government borrowed more than expected in April as high inflation drove up the cost of pensions and benefits, with concerns over the Iran war and political uncertainty adding to debt costs.
Borrowing Figures Exceed Forecasts
The Office for National Statistics (ONS) reported that public sector net borrowing — the difference between government spending and income — reached £24.3 billion in April 2026, £4.9 billion higher than in April 2025. Amid bond market jitters over the Middle East conflict and a Labour leadership challenge, the figure was £3.4 billion higher than forecast by City economists and the Office for Budget Responsibility.
Rising borrowing costs on financial markets drove the UK’s debt interest payments to £10.3 billion in April, £900 million more than a year ago and the highest in any April on record.
Retail Sales Decline Sharply
Motorists cutting back on petrol and fuel purchases at the steepest rate since the Covid pandemic in 2020 drove retail sales in Great Britain to their biggest monthly decline in a year. The ONS said the overall volume of retail sales plunged by 1.3% in April compared with the previous month, the biggest contraction since May last year and worse than the -0.6% forecast. Fuel purchases plunged more than 10% month on month, the biggest slide since November 2020, when monthly sales fell 14.8% as pandemic protocols put households into a second national lockdown.
Estée Lauder Ends Merger Talks with Puig
The US cosmetics company Estée Lauder has ended merger talks with its Spanish rival Puig over plans to create a fashion and beauty group worth almost $40 billion (£30 billion/€34.5 billion) after the two sides failed to agree on the balance of power in the combined company. Estée Lauder, one of the world’s biggest manufacturers of skincare, makeup and fragrances, owns brands including Clinique, Bobbi Brown and Tom Ford Beauty. Puig, which floated on the Madrid stock market two years ago, owns labels including Jean Paul Gaultier, Charlotte Tilbury, Carolina Herrera and Dries van Noten.
Standard Chartered CEO Apologises for ‘Lower-Value Human Capital’ Remark
The chief executive of Standard Chartered has apologised for referring to some of the almost 8,000 staff that are set to lose their jobs to artificial intelligence as “lower-value human capital”. Bill Winters offered the apology after a backlash over comments he made earlier this week as the London-headquartered lender became one of the first major global banks to lay out plans to cut about 7,800 back-office roles, primarily in response to AI.
