Major retailer Poundland has confirmed the closure of additional UK stores following the sale of the budget brand earlier this year. In June, owners Pepco sold the brand to a US investment company, Gordon Brothers, for £1, and as part of the deal, a huge restructuring plan was announced and approved, leading to a significant number of stores being removed from the high streets.

This summer saw a huge number of Poundland stores launch sales ahead of the shops’ closing down for good. The chain has now confirmed that these closures will continue into 2026, with stores scheduled to close throughout December and into February. 

The new plan will see the chain’s network of around 800 UK stores slashed to 650 to 700 stores. By the end of December, 18 more Poundland stores would have closed, with two scheduled to cease operation from tomorrow. 

Items in the stores that are closing have been reduced, with some offers up to 40% off, while stock lasts.

Darren MacDonald, Poundland’s UK country manager, said: “We know how disappointing it is when we leave a store, but before we close our doors for a final time, we’re determined to say goodbye by offering even more amazing value to customers. 

“The special reductions, on top of the value we provide in every store, will help us leave locations we’re leaving with pride. And when we close our doors, we look forward to welcoming customers to one of the hundreds of Poundland stores we’ll continue to operate right across the UK.”

An expert has issued a stark warning as the UK economy has sent a worrying signal.

Nigel Green, CEO of financial advisory firm the deVere Group, said that the country is “staring down the barrel of the stagflation gun”, with stunted growth and persistent inflation combining to create “one of the most challenging financial environments in over a decade”.

Mr Green also highlighted that, this week, the 30-year gilt yield hit a “staggering” 5.25%. This was its highest point since the 2008 financial crisis.

A gilt is a Government liability denominated in sterling that is issued by HM Treasury and listed on the London Stock Exchange.

The Government guarantees to pay the gilt holder a fixed cash payment coupon every six months until the maturity date, at which point the holder receives the final coupon payment and the return of the principal.

Index-linked gilts are different from conventional gilts in that the semi-annual coupon payments and the principal repayment are adjusted in line with the UK Retail Prices Index (RPI) with a lag.

Rachel Reeves’ deputy, Darren Jones, has said that the Chancellor will not break her promise to borrow money only for investment, and not to pay for day-to-day spending, in the face of high gilt levels.

Rising UK borrowing costs threaten to make it much harder for Ms Reeves to meet her fiscal rules, The Guardian reports.

Market turmoil this week sent UK borrowing costs higher, and the pound lower. This triggered calls for the Chancellor to cancel her trip to China.

Mr Green said: “Stagflation’s grip on the UK has been exacerbated by weak domestic growth, which under normal circumstances would prompt the Bank of England to lower interest rates.

“However, with inflation still uncomfortably high, policymakers find themselves in a precarious position, hesitating to make moves that could further weaken the pound and worsen price pressures.”

He added: “For Chancellor Rachel Reeves, the situation is particularly dire. Her key fiscal rule—eliminating all non-investment borrowing by 2029—now hangs in the balance, as rising interest payments on debt eat into the Treasury’s capacity to act.

“Achieving this goal will demand either politically challenging tax increases or deep public spending cuts. Both measures will hurt economic growth, amplifying the stagflationary spiral.

“The rise in gilt yields signals growing investor caution about the UK’s economic outlook.

“Higher borrowing costs are creating ripple effects across sectors, from property to retail, as businesses and consumers alike face higher for longer interest rates. At the same time, the weakening pound, spurred by fears of stagnation, makes UK assets more attractive to international investors.

“For global investors, the UK’s predicament is not just a warning—it’s a call to action. Stagflation may erode domestic purchasing power, but it also opens the door to undervalued opportunities in key sectors, particularly for those with a long-term strategy.

“Fixed-income securities are more appealing given their higher yields, especially for those seeking safe havens in a turbulent global economy.”

The exodus of companies from the London Stock Exchange due to takeovers has reached the highest level in 14 years, in a major blow to Keir Starmer‘s government.

Forty-five firms have dropped their listings in the Capital so far this year because of mergers or acquisitions, according to figures compiled by Bloomberg, as concerns persist that economic conditions are putting off investment.

With the UK economy apparently on the brink, this year has seen a number of major deals, with the sale of video game company Keywords Studios to private equity company EQT, the sale of Virgin Money to Nationwide, and Thoma Bravo’s aquisition of cybersecurity leader Darktrace, according to The Telegraph.

The coming months are expected to bring further sales, including Carlsberg’s purchase of Britvic, and Czech billionaire Daniel Kretinsky’s bid to aquire IDS, the owner of Royal Mail.

Meanwhile, mining giant Rio Tinto, one the biggest firms on the exchange, is coming under pressure to de-list, with activist investor Palliser Capital telling the firm that its Anglo-Australian structure had cost shareholders £39.5bn.

The multi-strategy investment firm has called for an independent review of the arrangement to be launched.

It comes as business leaders and analysts have criticised the UK’s trading environment, with concerns about Britain’s ability to match other major economies.

Nikolay Storonsky, chief executive of fintech firm Revolut recently branded London listing as “not rational”, in an appearance on the 20CV podcast.

Storonsky cited the 0.5% stamp duty tax on trading as a factor, as he questioned how the UK measures up to the US.

This summer, Wealth Club, an investment platform for affluent and sophisticated investors, released its inaugural “British Wealth Report”.

It found that 55% of high-net-worth individuals feel the country does not support wealth creation or creators, while 42% consider the country an unattractive place to set up a business, as per Business Matters.

Meanwhile, 31% said they were more inclined to leave the UK for financial reasons compared to a year ago, in a major blow to Keir Starmer and Rachel Reeves.

Nicholas Hyett, Investment Manager at the investment service, said at the time: “The UK has an image problem. Wealthy investors view the country as an unappealing place to start a business, citing a culture unsupportive of wealth creators and burdensome taxation.

“These individuals are crucial to the UK economy. The top 100 earners contribute an average of £46 million in tax each, while the highest-earning 100,000 cover a quarter of the total income tax and capital gains tax bill, despite representing just 0.3% of UK taxpayers.

“This data, obtained via a Freedom of Information request to HMRC in November 2023, underscores the importance of changing this group’s perception of the UK.”

Last week, a Treasury spokesperson said in an statement to City Am that Chancellor’s “top priority is growth and making the UK the most attractive place to invest”.

“UK capital markets have raised more equity capital in 2024 than the next three European exchanges combined, and recent reforms to Listings Rules will make us an even more attractive destination for exciting businesses,” they added.

A Treasury spokesperson said: “Growth and driving more investment in the UK is our number one mission.

“Recent IPOs and listing announcements by high-growth companies like Raspberry Pi and Canal+ demonstrate confidence in our capital markets and there is more we can do to attract exciting businesses to the UK.

“That’s why we are creating pension megafunds to unlock billions of pounds of potential investment for businesses, as well as backing the largest overhaul of UK listings rules in decades.”

Express.co.uk has approached Rio Tinto for comment.

Gloomy economic data published by the Bank of England has raised the spectre of “severe stresses” for UK businesses and a consequent credit crunch.

The Bank has warned that global financial markets are increasingly vulnerable to shocks following a “spike in volatility” over the summer.

In its latest Financial Policy Committee (FPC) report economists offered reassurance that the UK banking system remains robust enough to withstand tougher economic conditions and continue supporting households and businesses.

Nevertheless, there are choppy times ahead, particularly in vulnerable sectors.

While risks to UK financial stability have remained broadly unchanged since June, the FPC highlighted that uncertainty surrounding global geopolitics and economic forecasts remains elevated.

Tensions in the Middle East, in particular Israel‘s ground offensives in Lebanon, have only added to the volatility.

The FPC noted a “short-lived spike in volatility and declines in global equity markets” in early August, driven by disappointing US employment data and underwhelming financial results from major technology companies.

Although positive macroeconomic news soon followed, prompting asset prices to return to “stretched” levels, the fragility of the markets remains a concern.

The report warned: “Markets remain susceptible to a sharp correction, which could affect the cost and availability of credit to UK households and businesses, with investors sensitive to short-term developments in a challenging global risk environment.”

Businesses and banks needed to be “prepared” for “severe but plausible stresses”, it added.

Despite the resilience shown by UK mortgage-holders, with home loan rates starting to fall, the FPC flagged ongoing pressure on lower-income households and renters.

Roughly a third of mortgage-holders have yet to refinance at higher interest rates, which could add further strain.

UK businesses, too, have demonstrated resilience, but the report stressed there are “pockets of vulnerability,” especially among private equity-backed firms and small and medium-sized enterprises (SMEs).

Insolvencies remain concentrated in sectors such as construction, retail, accommodation, and food services, where smaller businesses are facing increasing financial stress.

With the global risk environment intensifying, the FPC’s warning underlines the growing pressures that could soon manifest as severe challenges for UK businesses across several sectors – in effect a credit crunch.

The phrase, coined during the financial crisis of 2007/2008, refers to a situation where there is a significant reduction in the availability of loans or credit from banks and other financial institutions. This often occurs suddenly and can result from various factors, such as increased default risks, economic uncertainty, or a lack of liquidity in the banking system.

During a credit crunch, banks become more reluctant to lend, impose stricter borrowing conditions, or raise interest rates, making it difficult for businesses and individuals to access the funds they need.

This tightening of credit can slow down economic growth, as businesses may struggle to finance operations or expansion, and consumers may find it harder to borrow for major purchases such as homes or cars.

A credit crunch can also lead to financial instability, particularly in sectors that rely heavily on borrowing.

Britain’s buoyant economy is outstripping several G7 countries in recent economic growth forecasts, in what Brexiteers are certain to hail as a major vindication of the decision to quit the European Union.

However, the UK is still likely to experience the highest inflation within the bloc, according to economists.

The Organisation for Economic Co-operation and Development (OECD) has placed the UK in joint second place in its economic growth projections for the remainder of 2024.

A predicted growth rate of 1.1 percent for the full year positions the UK alongside Canada and France, second only to the United States.

In the OECD’s previous forecast, released in May, the UK was ranked last among the G7 countries, which also include Japan, Italy, and Germany.

Despite the improved growth outlook, a predicted inflation rate of 2.7 percent for this year means the UK continues to have the fastest-rising prices in the G7.

The OECD noted in its interim report on the global economy that economic growth worldwide “has remained resilient and inflation has continued to moderate”.

It added: “Recent activity indicators suggest ongoing momentum, especially in services sectors. Real wage growth is now supporting household incomes and spending, though purchasing power has yet to fully return to pre-pandemic levels in many countries.

“Global trade is recovering faster than expected, but shipping costs remain elevated and export orders have recently moderated.”

However, the OECD also cautioned: “Significant risks remain.

“Persisting geopolitical and trade tensions could increasingly damage investment and raise import prices.”

This comes after the OECD’s announcement last week that the UK’s economic outlook is “gradually” improving, raising its growth forecasts to 1.1 percent in 2024 and 1.2 percent in 2025.

The OECD urged Chancellor Rachel Reeves to consider broader reforms to the tax system, not just tax increases, ahead of the October Budget.

Although the UK has climbed several positions in growth forecasts for this year compared to the OECD’s May predictions, it is only expected to achieve joint-fourth fastest growth in 2025, ahead of Germany and Italy.

UK inflation is projected to remain at 2.4 percent in 2025, continuing to rise at the highest rate in the G7.

Ms Reeves stated: “Faster economic growth figures are welcome, but I know there is more to do, which is why economic growth is the Government’s number one priority.

“Next month’s Budget will focus on fixing the foundations, so we can deliver on the promise of change and rebuild Britain.”

A key survey has cast a warning over the UK economy’s growth prospects as Rachel Reeves is just weeks away from presenting her autumn budget.

The recently unveiled ‘flash’ purchasing managers’ index (PMI) dipped to 52.9 from September’s reading of 53.8, sitting comfortably beneath the anticipated figures. Notably, it marked the lowest PMI score in two months.

Still, remaining above the pivotal 50 no-change threshold, the economy continues its expansion streak for an eleventh successive month.

According to the survey, slower growth was recorded within both services and manufacturing industries; however, both sectors are still expanding.

“Where higher levels of output were reported, survey respondents mostly commented on rising customer demand and improving domestic economic conditions. Meanwhile, fragile client confidence and ongoing inventory cutbacks were cited as headwinds to growth in September,” noted the report, as reported by City AM.

Despite these signs of deceleration, Chris Williamson, chief business economist at S&P Global Market Intelligence, encapsulated the findings as “should not be seen as too concerning”.

He further articulated that the survey aligns with predictions of GDP growing at a quarterly pace of 0.3 per cent, which correlates with the Bank of England’s projections from August.

The economic assessment also highlighted another strong month for new business, predominantly propelled by the service sectors increasing orders.

While business optimism persists due to the progressively brighter economic forecast, Williamson hinted that nervousness regarding the imminent budget remains palpable.

“Investment plans in particular are reported to have been put on ice pending clarity on the new government’s policies, especially towards taxation. Hiring likewise has been stifled by business uncertainty about the near-term economic outlook ahead of the ‘budget’,” he remarked.

Clients are also adopting a ‘wait-and-see’ stance regarding pivotal decisions before the fiscal announcement.

Most analysts agree that the survey points to a gradual deceleration in economic growth throughout the latter half of the year, following the UK’s unexpectedly robust performance at the start.

“The fall in September’s composite flash PMI is not a sign that the economy is on the cusp of another downturn, but instead is further evidence that real GDP growth has slowed towards a more normal rate in Q3 after the burst of growth in the first half of the year,” commented Alex Kerr, a UK economist at Capital Economics.

The survey further revealed signs of easing inflationary pressures, with the rate of prices charged inflation dropping to a 42-month low, primarily due to lessened pressures in the services sector, which has been a focal point for policymakers concerned with interest rates.

A number of respondents from the survey indicated that severe competitive forces were limiting their ability to raise prices.

Nevertheless, there was a marginal uptick in input price inflation, attributed to increased shipping costs and rising wages. In the manufacturing domain, the inflation rate for purchase prices hit its peak since January 2023.

The UK’s most recent survey was published shortly after PMIs for the German economy revealed a quickening downturn, with businesses slashing jobs at the fastest pace in over 15 years, excluding the pandemic period.

“The downturn in the manufacturing sector has deepened again, evaporating any hope for an early recovery,” stated Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

The UK’s economy is outperforming those of countries which are members of the eurozone – with Brexit a factor, a UK-based expert has said.

And, citing figures from Eurostat, the European Union’s own statistics division, Julian Jessop pointed to wages which were rising faster than those in the 19 countries signed up for the single European currency.

Posting on X, Mr Jessop, Economics Fellow at the Institute for Economic Affairs, pointed to figures indicating hourly wages and salaries increased by 4.5 percent in the #euro area in Q2 compared to a year earlier – about two percent above the average price inflation of 2.5 percent over this period.

However, he pointed out that, while not exactly comparable, UK average weekly regular earnings rose by 5.4 percent in Q2, 3.2 percent above CPI inflation.

He told Express.co.uk: “One reason why the British economy has outperformed the euro area so far this year is that real wages (after allowing for inflation) are rising more quickly in the UK.

“This has helped to underpin a stronger recovery in consumer spending.

He explained: “This mainly reflects a relatively tight labour market and shortages of workers, which in turn is due to a wide range of factors including increased long-term sickness, more people retiring early, and Brexit.

“The fact that employers can no longer rely on cheap labour from the EU is clearly having some beneficial impact on the wages of UK workers, even taking account of the adverse effects on costs and prices.

“Overall, this is good news for people in work, but sends mixed signals about the underlying health of the economy.”

Average wage increases in Germany, the bloc’s economic powerhouse, were slightly higher than the eurozone average, at 4.7 percent in Q2.

However, in France, the other major economy, they are lagging well behind, on 3.4 percent.

Figures published by the Office for National Statistics for August 2024 indicate that the annual growth for regular earnings (excluding bonuses) was 5.4 percent from April to June 2024.

Growth was last lower than this in May to July 2022, when it was 5.2 percent.

Annual growth in employees’ average total earnings (including bonuses) was 4.5 percent.

However, this total pay annual growth rate is affected by the NHS one-off bonus payments made in June 2023, causing what is known as a “base effect”.

The UK economy flatlined in July for the second month in a row, according to the latest official figures, in a significant setback from Chancellor Rachel Reeves and recently installed Prime Minister Sir Keir Starmer.

The Office for National Statistics (ONS) said gross domestic product (GDP) recorded no growth in July.

Economists had been expecting GDP to edge up by 0.1 percent in the month, according to a consensus provided by Pantheon Macroeconomics.

The latest data comes after the economy continued its recovery from recession at the end of last year, with growth of 0.6 percent between April and June.

ONS director of economic statistics Liz McKeown said: “The economy recorded no growth for the second month running, though longer term strength in the services sector meant there was growth over the last three months as a whole.

“July’s monthly services growth was led by computer programmers and health, which recovered from strike action in June.

“These gains were partially offset by falls for advertising companies, architects and engineers.

“Manufacturing fell, overall, with a particularly poor month for car and machinery firms, while construction also declined.”

Commenting, Sam Kirk, Managing Director at J-Flex Rubber Products commented: “All eyes in the economy are very much on the forthcoming Budget.

“Visibility, or rather the lack of it, is currently a major challenge for many SMEs throughout the supply chain, with some reluctant to press ahead with plans until there is clarity after the Autumn Budget.

“Businesses will be nervously waiting to hear whether Labour announce further tax hikes or increased borrowing, which, if true, will only add to inflationary pressures and undermine business confidence.

“I truly hope Labour can deliver a Budget that both revitalises the economy and reassures sceptics like me. I fear that may be too much to ask, and that we’ll just be left with even more uncertainty.”

Posting on X, Julian Jessop, Economics Fellow at the Institute of Economic Affairs, said: “Surprisingly weak UK #GDP data for July – no growth for the second month running…

“Monthly data can be erratic – the less volatile 3m/3m measure still rose 0.5 percent – but the poor July numbers are hard to square with the positive tone of the business and consumer surveys.”

Riz Malik, Independent Financial Adviser at R3 Wealth suggested the case for an interest rate cut had been bolstered.

He said: “No growth Britain could put Britain into recession very quickly.

“Is this enough for a September rate cut?

“Unlikely, but it adds weight to further rate cuts before the year is out.”

Isaac Stell, Investment Manager, Wealth Club, said: “The month-on-month GDP figures missed all estimates producing a fairly dismal set of numbers with the services sector managing to mitigate the declines seen in the construction and manufacturing sectors.

“A reversal in the fortunes for the manufacturing and construction sectors is a blow to the new Labour Government that has growth as a central pillar of its agenda.

“The usual bright spot was the bounce back in growth for the services sector with the health sector one of the leading contributors, springing back to life following strike action in June.

“A notable slowdown in advertising and architects may be indicative of a wider slowdown.

“With the canaries beginning to look a bit peaky, the chancellor may need to tread more carefully in October.”

The British Pound Sterling has improved against the euro and hit a 13-month high against the US dollar.

On Thursday, the pound was at $1.31 against the dollar and €1.18 against the euro.

Equivalent private-sector surveys showed that Germany has suffered another economic downturn.

It is expected that the US will cut interest rates in September, and Germany’s struggles mean the European Central Bank could do the same.

Francesco Pesole at ING said: “The surveys have been a testament to the growing growth sentiment divergence between the eurozone and the UK.”

The news comes after a number of business sector surveys, including the newly published purchasing managers’ index (PMI) for August.

They indicate that the UK economy will grow by 0.3 or 0.4 percent in Q3 (July-September), down from the 0.6 and 0.7 percent growth in the first two quarters of 2024.

Experts have recently said that the UK was the fastest-growing economy in the G7 in 2024.

The Office for National Statistics director of economic statistics Liz McKeown said: “The UK economy has now grown strongly for two quarters, following the weakness we saw in the second half of last year.

“Growth across the three months was led by the service sector, where scientific research, the IT industry, and legal services all did well.

“In June, growth was flat with services falling, due to a weak month for health, retailing, and wholesaling, offset by widespread growth in manufacturing.”

Reacting to the news, Chancellor Rachel Reeves said: “The new government is under no illusion as to the scale of the challenge we have inherited after more than a decade of low economic growth and a £22billion black hole in the public finances.

“That is why we have made economic growth our national mission and we are taking the tough decisions now to fix the foundations, so we can rebuild Britain and make every part of the country better off.”