A top City investment bank has delivered a blunt verdict on Sir Keir Starmer and Rachel Reeves: for all the talk of national renewal, they left the economy no better off than they found it. For Britain’s small firms, the bill is landing as higher energy costs and fresh barriers to hiring and building.

In a research note published on Friday, Panmure Liberum said the former Prime Minister and Chancellor’s missteps on energy and housing meant it was “difficult to conclude” that the economy had improved in the two years since the general election.

“Progress in pockets of the economy have been stifled by new barriers to construction and employment leaving the UK, in our view, no better off than it was in July 2024,” chief economist Simon French wrote. He blamed a “new UK disease of prioritising luxury beliefs over hard-nosed competitiveness” for casting a shadow over the pair’s economic legacy.

The verdict cuts against the story both told on their way out. In a resignation speech defending his record, Starmer said he had left “this country in better shape than I found it” and that the “economy is stronger”. At last week’s Mansion House dinner, Reeves told City executives she had “restored economic credibility” and put the public finances on a firmer footing, echoing her earlier claim that the economy is not broken, just stuck.

For business owners, the detail matters more than the rhetoric. Housebuilding and energy were meant to be the twin engines of recovery. Labour’s manifesto promised to make Britain a “clean energy superpower” and cut household bills by £300 a year, alongside a pledge to build 1.5m homes over the parliament, a target that has since drifted out of reach.

French argued the refusal to open the North Sea to new drilling had deterred private investment and rationed an important source of power. “There remains little chance of a revival in economic growth whilst this approach creates a wider chilling approach on the deployment of capital into energy assets and auctions lock in higher energy costs for a further generation,” he wrote.

That is a pointed warning for energy-intensive SMEs, from manufacturers to hospitality operators, who have spent years absorbing bills they cannot easily pass on. Higher costs “locked in” for a generation is not the backdrop most owners planned their investment around.

On housing, French said the government had taken “a backwards step on private housing volumes as luxury beliefs swamp the positive rhetoric”, a blow to the builders, tradespeople and suppliers whose order books depend on shovels in the ground. He was warmer on infrastructure, crediting “more encouraging progress” on speeding up major projects.

The numbers tell a familiar story. Over the two years, the economy grew at roughly 1.2 per cent a year, broadly in line with the average since the 2008 financial crisis. GDP per capita, which accounts for population size, grew slightly faster than that post-crisis trend, helped in part by Starmer’s success in bringing immigration numbers down.

None of which will comfort owners who were promised a decade of renewal and, on Panmure Liberum’s reading, got two years of standing still. The wider growth picture has hardly helped. The message for the next administration is unsparing: competitiveness, not luxury beliefs, is what moves the dial for the firms that actually create the growth.

Amy Ingham

Amy Ingham is a reporter at Business Matters, covering UK business news with a focus on breaking news, business policy, late payments and insolvency. She joined the magazine in 2026 after completing the NCTJ Diploma in Journalism at Harlow College’s journalism school. Her recent reporting includes British Steel’s nationalisation and its impact on SME suppliers, the decline in late payments by large firms, and Insolvency Service director disqualifications. Reach her at aingham@cbmeg.co.uk.

Economic growth cannot be delivered by any one institution acting alone

The Senedd election is now behind us, the UK has a new Prime Minister, and a fresh chapter in Welsh public policy is beginning.

With new administrations taking shape and priorities being set, there is a renewed opportunity to focus on what matters most: delivering sustainable economic growth for Wales.

I would like to welcome the appointments of Andy Burnham as Prime Minister and Stephen Kinnock as Secretary of State for Wales.

Their success will matter enormously to businesses, communities and families across our nation. While politics will always involve differing viewpoints, economic prosperity is best achieved when governments, businesses and civic institutions work constructively together towards shared objectives.

Our chief executive, Alan Vallance, has already congratulated the Prime Minister on his appointment and set out ICAEW’s commitment to working constructively with the new government.

That spirit of partnership is one that we strongly support here in Wales. ICAEW stands ready to work with ministers at both Westminster and in the Senedd to help shape policies that support enterprise, improve productivity and drive sustainable economic growth.

At ICAEW, our members operate in every sector of the Welsh economy. They advise businesses large and small, support investment decisions, help organisations navigate periods of uncertainty and play a critical role in driving productivity and growth. From that vantage point, one message is consistently clear: collaboration delivers better outcomes than confrontation.

That lesson feels particularly relevant today. The latest ICAEW business confidence monitor published last week shows that business confidence in Wales has fallen sharply, reflecting wider challenges facing firms across the UK.

Confidence declined in ten of the eleven nations and regions surveyed, with geopolitical instability, rising costs and continued uncertainty weighing heavily on business sentiment. In Wales, labour costs remain a significant concern for many employers, although encouragingly businesses expect domestic sales growth to strengthen over the coming year.

Those findings tell an important story. Welsh businesses are realistic about the headwinds they face, but they have not lost their underlying optimism. They continue to invest, innovate and look for opportunities to grow.

The role of government must be to create the conditions that allow that confidence to be translated into higher investment, greater productivity and more well-paid jobs.

That is why constructive engagement between Westminster, the Senedd and the business community is so important.

Economic growth cannot be delivered by any one institution acting alone. It requires a shared commitment to improving competitiveness, encouraging entrepreneurship, supporting skills and creating an environment where businesses can thrive.

In that regard, I have been encouraged by the way Plaid Cymru has approached government in its opening months. The party has hit the ground running and made visible progress against its 100-day plan. Regardless of political affiliation, businesses value momentum, clarity and a willingness to engage. Those early signals matter because they help create confidence that government is focused on delivery.

I would therefore urge the new UK Government to work constructively with Plaid Cymru in Wales wherever common ground can be found. The Welsh economy will benefit most when political leaders focus on practical solutions rather than institutional disagreements.

Businesses are less concerned about which level of government receives the credit and more concerned that decisions are made, barriers are removed and investment opportunities are unlocked.

One particularly welcome development has been the positive discussion around a new development agency for Wales. If implemented effectively, such an organisation has the potential to become a powerful catalyst for investment, regeneration and business growth across the country.

Wales has enormous strengths: a highly skilled workforce, world-class universities, growing innovation clusters and a strong entrepreneurial culture. The challenge has often been ensuring those strengths are connected to the right support and sources of capital.

This is where collaboration will be critical. Working in partnership with the Development Bank of Wales, a new development agency could help create a clearer and more coordinated support ecosystem for businesses.

Whether supporting Welsh firms looking to scale, attracting inward investment, or helping companies relocate and establish operations in Wales, the focus must be on ensuring businesses can access the advice, finance and networks they need to succeed.

Productivity must also remain at the centre of the conversation. Raising productivity is not simply an economic statistic; it is fundamental to improving living standards, increasing wages and strengthening public services.

Too often, debates about growth focus solely on headline investment figures. Important though those are, long-term prosperity depends on helping businesses become more productive through innovation, digital adoption, skills development and better access to capital.

Chartered accountants have an important role to play here. ICAEW members work directly with businesses to improve performance, support investment decisions and identify opportunities for growth. They understand both the challenges facing employers and the practical measures that can help overcome them.

That is why I have been pleased to begin engaging with Adam Price as our Cabinet Secretary for Enterprise, Connectivity and Energy and other stakeholders as discussions around Wales’ economic future develop.

ICAEW is committed to bringing evidence, expertise and practical insight to these conversations. Our objective is not to advocate for a particular political perspective, but to ensure that the voices of our members and the businesses they support are heard.

The latest business confidence nonitor reminds us that challenges remain. Confidence has weakened, costs continue to rise and global uncertainty has not disappeared. Yet the survey also highlights resilience and a continued belief among Welsh businesses that growth opportunities exist, particularly through stronger domestic sales. The task now is to turn that potential into reality.

For Wales to succeed, government and business must work hand in hand. Westminster and Cardiff Bay must collaborate where possible. Investment agencies, financial institutions and the private sector must align around shared objectives. And policymakers must remain focused on the practical steps that improve productivity, encourage enterprise and create the conditions for sustainable growth.

If we can achieve that, Wales will be well placed not only to weather current economic challenges but to build a stronger, more competitive and more prosperous future. As ever, ICAEW Wales stands ready to play its part in helping shape that discussion and supporting the decisions that will drive growth across our nation.

• Robert Lloyd Griffiths is Wales director for the ICAEW.

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Albertsons lowered its fiscal 2026 sales and earnings outlook Thursday after weaker grocery demand and a more cautious consumer weighed on its first-quarter performance.

The grocery chain now expects identical sales to decline between 0.5% and 1.5% for the full fiscal year, compared with its previous forecast of flat sales to 1% growth.

Albertsons also cut its adjusted earnings forecast to between $1.75 and $1.85 per share, down from its prior range of $2.22 to $2.32. Adjusted EBITDA is now expected to range from $3.55 billion to $3.625 billion, compared with its earlier forecast of $3.85 billion to $3.925 billion.

Identical sales fell 0.8% during the quarter ended June 20, while net sales and other revenue edged up 0.2% to $24.94 billion, helped by higher fuel sales. Digital sales increased 13%, although the company said its core grocery business faced mounting pressure from softer industry unit trends.

MAJOR GROCERY CHAIN BEATS WALMART, ALDI IN PRICE WAR AS SHOPPERS HUNT FOR CHECKOUT RELIEF

The grocery chain now expects identical sales to decline between 0.5% and 1.5% for the full fiscal year. (Ethan Miller/Getty Images)

“In the first quarter, our digital and pharmacy businesses continued to deliver strong growth, while core grocery faced increasing pressure from softer industry unit trends and a more cautious consumer,” CEO Susan Morris said in the company’s earnings release.

Albertsons said it is accelerating investments aimed at strengthening its customer value proposition and improving the shopping experience before anticipated productivity benefits take hold.

“We are choosing to accelerate investments in our customer value proposition and the customer experience ahead of expected productivity benefits because we believe these actions will improve our growth trajectory, strengthen our competitive position, and create long-term shareholder value,” Morris said.

As part of that effort, Albertsons announced an operating realignment called ACI Edge. The company consolidated its 11 divisions into four regions and placed center-store merchandising under a single enterprise team.

Albertsons said the restructuring is intended to accelerate decision-making, improve local execution and bring category management, supplier relationships and merchandising strategy under a more centralized structure.

First-quarter net income fell to $84.7 million, or 17 cents per share, from $236.4 million, or 41 cents per share, a year earlier. Adjusted earnings declined to 42 cents per share from 55 cents.

Albertsons also announced an operating realignment called ACI Edge. (Bridget Bennett/Bloomberg via Getty Images)

Gross margin narrowed to 26.6% from 27.1%. Albertsons attributed some of the pressure to higher delivery and handling expenses associated with digital growth, along with higher fuel costs.

Separately, Albertsons said Chief Financial Officer Sharon McCollam plans to retire later this year. McCollam will remain in her current role until a successor is named and will then serve in an advisory capacity through Feb. 27, 2027, to assist with the transition.

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Albertsons operated 2,240 stores across 35 states and the District of Columbia as of June 20.

Bayern Munich are preparing to open formal negotiations with striker Harry Kane over a new contract, with the England captain‘s current deal set to expire at the end of next season, according to reports from BBC Sport.

Kane, 32, is aware of the German champions’ intention to secure his long-term future in Munich, with detailed discussions expected to progress in the coming weeks. The move comes despite continued interest from other top European clubs, with Kane reportedly settled in Germany and showing no inclination to leave.

A prolific record in Munich

Since joining Bayern from Tottenham Hotspur in the summer of 2023 in a deal reportedly worth an initial 100 million euros, or roughly £86.4 million, Kane has established himself as one of the club’s most productive strikers in recent memory. He has scored 146 goals in 147 appearances for Bayern, a rate of production that has made retaining him a clear priority for the club’s leadership.

That success has translated into team trophies as well. Kane has helped Bayern win two Bundesliga titles and the DFB-Pokal since arriving in Munich, giving him the domestic silverware that eluded him for much of his career in England. This past season alone, he scored 61 goals across all competitions for Bayern before adding six more for England during the 2026 World Cup.

Fending off interest from elsewhere

Kane’s productivity has continued to attract interest from other clubs, including Barcelona and Saudi Arabian side Al-Hilal. According to Goal.com, however, Kane remains fully settled in Munich and is not currently considering a move elsewhere. His decision to prioritize a Bayern extension effectively rules out the widely speculated possibility of a return to the Premier League, whether to Tottenham or another English club.

A trade-off with the Premier League scoring record

Staying in Germany carries one significant personal cost for Kane: it likely ends his realistic chances of ever breaking Alan Shearer’s Premier League scoring record. Shearer holds the all-time record with 260 league goals, while Kane finished his Tottenham career with 213 Premier League goals, sitting 47 behind Shearer’s mark. By committing his long-term future to Bayern rather than returning to England, Kane is effectively setting aside any pursuit of that individual milestone in favor of continued team success in Germany and a shot at the trophy that has so far eluded him: the Champions League.

A deliberately unhurried process

Kane and Bayern have taken a notably measured approach to contract discussions throughout the year, with both sides indicating there was no urgency to rush a deal. Speaking in May after helping Bayern win the DFB-Pokal with a hat-trick in the final against VfB Stuttgart, Kane made clear that formal talks would wait until after the World Cup. “It’s not the time to talk about that now, but there’s no panic,” Kane told Sky Sport DE at the time. “We wanted to hold conversations until the end of the season and we’ve got a World Cup still to play. But everyone knows how much I enjoy it here. That situation is calm.”

Bayern’s leadership echoed that unhurried stance earlier in the year. Sporting director Max Eberl confirmed discussions were underway at a Bundesliga event, saying simply, “We’re talking to Harry, we’re talking,” and adding, “Everyone knows at some point a decision has to be made.” Bayern chief executive Jan-Christian Dreesen offered further reassurance about the club’s confidence in reaching an agreement, saying, “Harry has great confidence in us and he feels comfortable in Munich. He and his family are settled in. Therefore we’ve got absolutely no reason to rush.”

Cautious notes on contract length

Not everyone connected to the club has been fully bullish on the length of any new deal, given Kane’s age. Former Bayern midfielder Dietmar Hamann offered a more measured outlook on how long an extension should run. “He still has a year left on his contract. I think they are talking about two or three years, and I’d be a bit cautious because he’s now 33,” Hamann said. “The question is: How much longer will he keep scoring goals?” Hamann added that a shorter extension made more sense to him, saying, “A one-year extension, yes. Two years, possibly. Three years would be too much in my opinion,” while also praising Kane’s broader impact on the club and the league. “People are very happy with him. He’s a great ambassador for football. It’s an honour for the Bundesliga and for Bayern Munich that the England captain plays here.”

Kane’s own reflections on the move

Kane has previously spoken warmly about his decision to leave the Premier League for Bavaria, describing it as one of the most rewarding choices of his career. “The move has been one of the best decisions of my life,” Kane said at the end of last year. “To experience a new league, a team like Bayern Munich, these European nights, the atmosphere in the German league, has been a great step in my career and helped me improve as a player. I’m quite open to staying longer. The way we are right now and the way we are playing, I feel we are one of the best teams in Europe, for sure. I don’t look at any other team and think, ‘I want to go there.’ I’m really happy here.”

With formal discussions now set to begin, Bayern are aiming to finalize a new agreement with Kane before the club’s fixture schedule becomes more congested heading into the new season. Securing his signature would allow the club to build its continued push for domestic dominance and a long-sought Champions League title around its most prolific attacking option, while giving Kane the stability to continue chasing team silverware in Munich rather than pursuing individual scoring records back in England.

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Prime Minister Andy Burnham has opened the doors to No 10 North in Manchester

No 10 North has welcomed visitors for the Prime Minister’s inaugural meeting to be conducted at his Manchester headquarters. Andy Burnham described it as the ‘best day of my life’ while addressing personnel at Heron House, close to Manchester’s Albert Square, on Friday morning.

Addressing staff upon his arrival, Mr Burnham said: “I cannot tell you what a proud moment this is. I think this might be the best day of my life.

“I’m not joking. I know you think I am, but I’m not. Things are just completely coming full circle here, for me to be here with you all in the heart of Manchester this Friday morning at the end of a fairly big week is just everything to me.”

He continued: “Things are just completely coming full circle here for me, and to be here with you all in the heart of Manchester this Friday morning, at the end of a fairly big week, is just everything to me because it’s almost exactly 35 years since I left this city as a recently-graduated young man who couldn’t find a job in the city. It was in a pretty bad place at that time, it’s fair to say, this is the because the 80s had turned into the 90s, there wasn’t much.

“That really is an experience that I’ve never forgotten, my generation of people growing up here. And it’s true of places all over the country to get on in life, you had to leave where you where you were because things weren’t here.”

“The country has always been a little like that, hasn’t it? That opportunity has not been evenly spread around the country, and not all places have felt that they are part of the national story, and that is what this Government is going to work every single day to change.

“And that is what No 10 North is all about: putting power in every postcode so that people can turn things around for themselves and make changes, just as this great city has done, and the other English cities are doing through devolution, turning things round because of that ability to be able to do more for themselves. And it’s also about getting the whole country facing the same way, and then pulling in the same direction, that I think is what No 10 North can achieve.”

The PM’s new northern headquarters also houses GCHQ’s Manchester and North West hub. The Prime Minister stated that Whitehall opposition to devolution is ‘over for good’ ahead of the landmark occasion, reports the Manchester Evening News.

Mr Burnham is anticipated to operate from the Manchester site once weekly throughout his time in office. On Friday, he will lead a session of the National Economic Council, a Cabinet committee originally established in 2008 to address economic difficulties.

Earlier he justified the expense of establishing No 10 North, noting that many of his detractors – “often London based” – will regard the initiative as a “gimmick”. He said: “There’ll be many voices out there, I can hear them all already, often London based, but not exclusively… They like to say, ‘Oh, this will just be the new levelling up, or another sort of short-lived gimmick’, and they’ll also say ‘What’s it going to cost?’”.

Mr Burnham went on to say: “What does it cost for everybody to troop down to London every time there’s a meeting when you need to make an argument about something?

“What does that cost? So actually, isn’t it better that we have a North Pole that balances the South Pole of our country, where power will always be concentrated? At least it creates that sense of a more balanced country, and that big things can be done from here.”