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Inflation falls to 2.6% but SMEs shouldn’t spend the dividend

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Tracy Brabin leads West Yorkshire trade mission to Switzerland and Germany

UK inflation fell to its lowest level in more than a year last month, but small business owners should read the number for what it is: a snapshot of a June that has already been overtaken by events.

Figures published by the Office for National Statistics on Wednesday showed inflation cooled to 2.6 per cent on an annual basis in June, down from 2.8 per cent the previous month. City economists had forecast 2.7 per cent. It was the lowest reading since March 2025.

The driver was fuel. Diesel fell by 10.7p to 176.4p per litre between May and June, and petrol dropped 2.1p to 155.3p, after the United States and Iran signed a memorandum of understanding to stop fighting for 60 days and global oil prices slid.

For any firm running vans, plant or a delivery fleet, that was a genuine reprieve. It may also prove a short one. Fighting resumed in July and oil has jumped by around a fifth in the past month, which is likely to push inflation back up in the second half of the year.

Grant Fitzner, chief economist at the ONS, said: “A fall in motor fuel prices, particularly diesel, helped ease inflation in June.”

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“Food prices fell this month, driven by products including chocolate, margarine and beef. Clothing prices also fell with the start of summer sales, with bigger discounts than last year.”

Grocery price growth slowed to 1.7 per cent over the year to June, from 2.2 per cent, the lowest annual food inflation rate since August 2024. Hospitality operators and food retailers working on thin margins will take that where they can get it.

The more telling figure for business owners sits further down the release. Services inflation, the measure the Bank of England watches most closely for domestically generated price pressure, inched down only to 3.6 per cent from 3.7 per cent. Core inflation, stripping out food and energy, was flat at 2.6 per cent.

In other words, the fall was imported and the sticky domestic bit has barely moved. That is why the Bank’s monetary policy committee, which meets next Thursday, is expected to leave Bank Rate unchanged at 3.75 per cent. Governor Andrew Bailey has already indicated that cuts are off the table for now, so any SME that has pencilled cheaper borrowing into its second-half cash-flow forecast should sharpen the pencil.

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The data lands well for Andy Burnham in his first week as prime minister, following public borrowing figures of £16 billion in June that came in nearly £5 billion below the same month last year. Unemployment was stable at 4.9 per cent in the three months to May.

John Healey, the chancellor, said: “Falling inflation is news families want to hear but there is much more to do to give people the breathing space they need.

“That is why yesterday we cut VAT on electricity bills and today we’re announcing a £2 cap on bus fares from January. We have chosen to focus on the cost of living in our first week, signalling that concern for working people will be at the heart of everything we do.”

The two measures, VAT removed from electricity bills from October and most single bus fares in England capped at £2, are aimed squarely at households. Business owners should check the small print before budgeting for relief: the VAT cut applies to domestic electricity supplies, not commercial ones, and VAT-registered firms reclaim the tax on energy in any case.

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The read-across for SMEs is modest but real. Cheaper household energy and transport support consumer spending, and flat unemployment suggests demand is holding. What has not changed is the cost of money, the cost of employing people, or the direction of oil. June was the good month. Plan for the rest of the year on that basis.


Jamie Young

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk

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10 Reasons Behind His Surprising Decision to Join Philadelphia’s Sixers

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LeBron James

LeBron James ended weeks of speculation Friday, agreeing to a two-year, $8 million contract with the Philadelphia 76ers, a franchise he had never previously played for and one few insiders had seriously considered a frontrunner until the final stretch of his free agency. Here’s a breakdown of the factors that appear to have driven the decision, based on James’ own statements and reporting from those closest to the process.

1. A blockbuster trade reshaped the roster

According to ESPN’s Shams Charania, the Sixers weren’t even seriously in the conversation until Philadelphia’s front office traded Paul George and four draft picks to acquire All-NBA forward Jaylen Brown from the Boston Celtics earlier this month. “The Sixers were not even on the map until Bob Myers and Mike Gansey went out there and traded for Jaylen Brown,” Charania said. That trade instantly transformed Philadelphia’s championship outlook and put the team on James’ radar for the first time.

2. A roster James found genuinely compelling

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Once the Brown trade went through, James reportedly compared Philadelphia’s roster directly against his other options. “LeBron James looked at that roster, he looked at the Cavaliers roster, he looked at the Heat roster. He is choosing the Philadelphia 76ers,” Charania said. The Sixers can now field a starting lineup featuring Tyrese Maxey, VJ Edgecombe, Jaylen Brown, James and Joel Embiid, a grouping NBC Sports described as making Philadelphia a “legit threat to make the NBA Finals.”

3. An aggressive recruiting push from the team’s stars

Philadelphia’s core didn’t wait for James to come to them. According to multiple reports, Embiid, Maxey and Brown personally reached out to James to try to persuade him to join the franchise, with ESPN’s Brian Windhorst reporting that James remained in continuous contact with the trio throughout the process.

4. James already respected Brown’s game

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James’ admiration for Brown predates the trade itself. Speaking earlier this season, James praised Brown’s play directly. “He’s playing great basketball, man,” James said. “This whole MVP thing, I don’t understand why his name is not getting talked about some, as well. Like, nobody gave them a shot to start the season.”

5. One more shot at a championship

James was direct about his primary motivation in the message he posted to X announcing the decision. “I still want to sacrifice. I still want to work. I still want to grind. I still want to compete, to win and to have a chance at the feeling of winning another championship,” James wrote. “I believe I can help make the Philadelphia 76ers a championship team.”

6. He explicitly said it wasn’t about money or family ties

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James used his announcement to rule out the two factors many assumed would guide his decision. “This is my last decision. I’m not going for money. I’m not going for family. What am I really playing for at this point?” he wrote, a statement that helps explain why he ultimately passed on a return to Cleveland, where he began his career, or Miami, where he won two championships.

7. A dramatic pay cut that signals his true priority

James had been earning roughly $50 million per year with the Lakers. His new deal with Philadelphia pays just $8 million over two years, a reduction that multiple outlets described as one of the most surprising aspects of the entire decision. That financial sacrifice reinforces James’ own framing that competing for a title, not maximizing earnings, drove his choice.

8. He needed real time away from the game to decide

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James revealed that he had quietly considered retirement before ultimately choosing to keep playing. “I thought I was done when the season ended. I wasn’t ready to announce it, and I knew I needed some time to really decide, but I was pretty sure I played my last game,” James wrote. “I was honest at that last press conference when I said I needed to look at myself and decide if I still love this game. I still truly love this game, and I have more to give.”

9. A new challenge with an unfamiliar franchise

NBC Sports noted that James chose to “finish his career with a team he had not been on before,” a decision that came with what the outlet described as “a sense of unfamiliarity” compared with a more sentimental return to Cleveland or Miami. That willingness to embrace the unknown, rather than lean on nostalgia, appears to reflect James’ stated desire to be pushed competitively in what he has called his final chapter.

10. A front office he trusted to build a winner

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James’ decision also reflects confidence in Philadelphia’s front office, led by president of basketball operations Mike Gansey, who was brought in to replace Daryl Morey. NBC Sports credited Gansey’s aggressive summer, from acquiring Brown to ultimately landing James, as a potential Executive of the Year-caliber performance, suggesting James was betting not just on the current roster but on the organization’s broader direction.

A decision that reshapes the rest of free agency

James’ announcement is expected to trigger a wave of subsequent moves across the league, with Cleveland, Philadelphia and Golden State all reportedly holding roster decisions in place while awaiting his choice. Players including DeMar DeRozan and Jonathan Kuminga were also said to be waiting on James’ decision before finalizing their own free agency plans.

A farewell to his previous teams

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Even in committing to Philadelphia, James took time to acknowledge the franchises that shaped his career. “Thank you LA. Miami I’ll forever love and Northeast Ohio will always home!” he wrote, closing the book on eight seasons with the Lakers, four championship-contending years with the Heat, and his original run with the Cavaliers, as he now begins a new chapter with a fourth NBA franchise at age 41.

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American Airlines: Buy Any Fuel Panic

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American Airlines: Buy Any Fuel Panic

American Airlines: Buy Any Fuel Panic

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Earnings call transcript: Ovintiv tops revenue in Q2 2026, shares rise

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Earnings call transcript: Ovintiv tops revenue in Q2 2026, shares rise

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Ford Recalls More Than 565,000 Bronco and Bronco Raptor SUVs in US Over Engine Compartment Fire Risk

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Ford Motor Co. is recalling more than half a million Bronco and Bronco Raptor SUVs in the United States after determining that a wiring harness in the engine compartment can become damaged and short circuit, potentially increasing the risk of an engine fire, according to the National Highway Traffic Safety Administration.

The recall covers 565,691 vehicles, spanning Bronco and Bronco Raptor models from the 2021 through 2026 model years, according to NHTSA. Ford first reported the issue to the agency on July 20.

What’s wrong with the vehicles

According to safety documents filed with NHTSA, the primary wiring harness located inside the engine compartment of the affected vehicles is prone to premature wear and physical damage over time. That wear can eventually cause the electrical wiring to experience a short circuit. Because the engine bay is a tightly packaged space, a short circuit occurring there can generate excessive heat or produce sparks almost instantly. Under certain conditions, those sparks or heat sources can ignite nearby grease, plastic components or fuel vapors, significantly increasing the risk of a fire in the engine compartment.

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Which vehicles are affected

The recall spans the entire production run of the current, sixth-generation Ford Bronco, covering specific production configurations of the standard Bronco across the 2021 through 2026 model years, as well as the high-performance, wide-body Bronco Raptor variant across the same production window. Ford has estimated that approximately 1% of the recalled vehicles actually contain the wiring harness defect, though the company is recalling the full population of eligible vehicles out of caution given the difficulty of identifying which specific units are affected without individual inspection.

How Ford is fixing the issue

As part of the recall remedy, Ford is directing dealers to inspect the factory wiring loom in each affected vehicle and install a new, heavy-duty protective sheathing layer over the vulnerable sections of the harness. According to Yahoo Autos, this specialized protective sleeve is designed to act as a barrier, isolating the live electrical wires and shielding them from the kind of friction or heat-related grounding faults that can lead to a short circuit. NHTSA confirmed that dealers will perform this repair free of charge to vehicle owners.

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When owners will be notified

Official recall notification letters are scheduled to begin arriving in customer mailboxes starting Aug. 24, 2026, according to Yahoo Autos. In the meantime, owners concerned about whether their specific vehicle is included in the recall can check immediately by looking up their 17-digit Vehicle Identification Number through the online recall portal at NHTSA.gov.

Recall identification numbers

For reference, Ford’s internal recall number for this campaign is 26S55, while NHTSA’s official recall campaign number is 26V468. Vehicle identification numbers tied to the recall are searchable directly through NHTSA’s website using either of those reference numbers.

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What owners should do

Owners of eligible Bronco and Bronco Raptor models are encouraged to contact their local Ford dealership to schedule the wiring harness inspection and, if necessary, the sheathing installation, even before receiving their official notification letter in the mail. Because the repair is being performed at no cost to owners, there is no financial barrier to having the inspection completed proactively, particularly given the safety concern involved.

Owners who notice unusual smells, visible smoke, or other warning signs potentially associated with an engine compartment electrical issue are advised to contact their dealer promptly and avoid operating the vehicle until it has been inspected, given the specific fire risk outlined in the recall notice.

Part of a broader pattern of recalls in the auto industry

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The Bronco recall adds to a steady stream of vehicle safety recalls issued across the auto industry so far this year, reflecting the ongoing scrutiny automakers face over wiring, electrical and mechanical defects that can pose fire or safety risks to consumers. NHTSA continues to monitor and investigate a wide range of potential vehicle defects across manufacturers, with wiring harness issues in particular representing a recurring category of concern given the complexity of modern vehicle electrical systems and their proximity to heat-generating engine components.

Ford’s broader Bronco lineup

The Bronco, relaunched by Ford in 2021 after a lengthy hiatus from the model name, has become one of the automaker’s more prominent SUV offerings in recent years, drawing comparisons to rivals like the Jeep Wrangler in the off-road-focused SUV segment. The high-performance Bronco Raptor variant, aimed at a more extreme off-road audience, commands a significant price premium over the standard Bronco and has developed its own dedicated following among off-road enthusiasts since its introduction.

Given the recall’s scope, covering the entire production run of the current-generation Bronco since its 2021 relaunch, the issue touches a substantial share of the vehicles Ford has sold under the Bronco nameplate to date.

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With notification letters set to begin going out next month, Ford and its dealer network are expected to spend the coming weeks and months working through the population of more than 565,000 affected vehicles, prioritizing inspections and repairs for owners who reach out proactively or who report symptoms consistent with the wiring defect. NHTSA will continue monitoring the rollout of the recall remedy and tracking any additional complaints or incidents tied to the issue as Ford works to complete repairs across the affected fleet.

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Capital One Financial: Q2 Earnings Confirms The Trajectory

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Capital One Financial: Q2 Earnings Confirms The Trajectory

Capital One Financial: Q2 Earnings Confirms The Trajectory

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JPMorgan Chase Preferreds: Why It Might Be Better To Avoid High-Coupon Fixed-Rate Preferreds At Present

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JPMorgan Chase Preferreds: Why It Might Be Better To Avoid High-Coupon Fixed-Rate Preferreds At Present

JPMorgan Chase Preferreds: Why It Might Be Better To Avoid High-Coupon Fixed-Rate Preferreds At Present

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Slideshow: Confectionery-centered innovations

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Slideshow: Confectionery-centered innovations

New products and foodservice items with candy at its core are rolling out.

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Scotch whisky levy lifted as Trump imposes new wave of US tariffs

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King Charles looking at Donald Trump, both wearing suits and smiling.

First Minister John Swinney said: “This a win for Scotland and a win for the United States.”

“It benefits businesses and workers on both sides of the Atlantic, and not just among whisky producers, but also the businesses and communities that support the sector across Scotland.”

Trump’s announcement in April that he would drop whisky tariffs had sparked a row over who was able to claim credit for changing his mind.

Swinney said he had raised the issue with President Trump during a previous meeting in the Oval Office.

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But political opponents accused him of taking credit for the deal over King Charles.

The first minister said it had come courtesy of the “remarkable contribution of the King” and a “Team Scotland” approach.

He added: “We were able to partner with the bourbon industry in the United States, raise the issue with President Trump in the Oval Office, and get this issue on his agenda.”

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10 Things You Need to Know About Apple’s iOS 27, From Siri AI to Parental Controls in This Fall’s Update

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Ismael Saibari

Apple’s next major iPhone software update, iOS 27, is now in public beta testing ahead of its expected release this September, bringing a rebuilt version of Siri, expanded Apple Intelligence features and a range of refinements across the operating system. Here’s what iPhone users need to know about the update before it arrives.

1. It was unveiled at WWDC in June

Apple officially announced iOS 27 during the keynote presentation at its Worldwide Developers Conference on June 8, 2026, alongside companion updates including iPadOS 27, macOS Golden Gate, watchOS 27, visionOS 27 and tvOS 27. The conference ran from June 8 through June 22, with iOS 27 headlining much of the software-focused announcements.

2. A public beta is already available

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Apple released the first public beta of iOS 27 on Monday, July 13, giving everyday users, not just registered developers, an early chance to test the new software ahead of its official release. A second public beta followed just nine days later, on July 22, according to 9to5Mac. Compared with prior years, iOS 27 has been described as one of Apple’s more stable betas, though the company continues to caution against installing beta software on a primary device, particularly one relied upon for health-tracking apps.

3. The public release is expected in September

While Apple has not confirmed an exact release date, the company has historically launched new iOS versions during the second week of September alongside new iPhone hardware. Based on that pattern, Macworld has projected Monday, Sept. 14, as a likely release date for iOS 27, timed to coincide with the launch of Apple’s newest iPhone lineup.

4. Siri is getting a complete overhaul

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The centerpiece of iOS 27 is a rebuilt version of Siri, referred to internally as Siri AI, which uses generative AI technology to behave far more like a conversational chatbot than the voice assistant Apple has offered in the past. According to MacRumors, the new Siri can hold full back-and-forth conversations and draw on a user’s personal data to complete more complex, multistep tasks, functioning more similarly to AI assistants like ChatGPT or Claude than previous versions of Siri.

5. Not every iPhone will get every feature

While iOS 27 itself will be compatible with every iPhone that currently supports iOS 26, reaching all the way back to the iPhone 11, access to the newest AI-powered features will vary significantly by device. Apple Intelligence and Siri features generally require an iPhone 15 Pro or later, while more advanced capabilities, including on-device processing for improved dictation and a customizable Siri voice, are limited specifically to the iPhone 17 Pro and iPhone Air. The iPhone 15 and older models will not have access to any Apple Intelligence features at all.

6. Siri AI won’t launch everywhere at once

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Due to regulatory constraints, Siri AI will not be available in the European Union on either iPhone or iPad at launch, according to PhoneArena, meaning users in that region will need to wait for a later rollout of the feature even after it becomes available elsewhere.

7. Safari is getting smarter tab management

Among the more practical Apple Intelligence additions in iOS 27 is a new capability in Safari that automatically sorts open browser tabs by topic, grouping related tabs together and allowing users to save those groupings for later. A companion “Notify Me” feature lets users flag a specific tab for ongoing monitoring, with Apple Intelligence alerting them automatically when something on that page changes, removing the need to manually check back.

8. Passwords and Messages get AI assistance too

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Apple’s Passwords app in iOS 27 will be able to use Apple Intelligence in combination with Safari to automatically upgrade eligible accounts to stronger passwords, logging in and making the change on the user’s behalf without requiring manual intervention. Separately, in Messages, Apple Intelligence will be able to pull context from ongoing conversations and surface suggested actions based on what’s being discussed.

9. Parental controls are expanding significantly

iOS 27 introduces new “Ask to Buy” and “Ask to Browse” features that require children to obtain parental permission before downloading any app or visiting a new website in Safari, according to MacRumors. Parents will also gain the ability to manage their child’s contact list directly and require approval before a child can contact someone new. Separately, the update’s Communication Safety feature, previously focused on blocking nudity in Messages and FaceTime, will now also block graphic gore and violence.

10. The visual design stays largely the same

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Unlike last year’s iOS 26, which introduced Apple’s “Liquid Glass” visual redesign across the operating system, iOS 27 does not represent another major visual overhaul. Instead, PhoneArena described this year’s update as more of a refinement pass on the Liquid Glass aesthetic Apple introduced previously, with most of the year’s headline changes centered on functionality, AI capabilities and performance rather than a fresh visual identity.

Additional features worth noting

Beyond the headline changes, iOS 27 includes a range of smaller updates. A new wallpaper extension feature uses Apple Intelligence to automatically expand a photo beyond its original frame so it fills the entire Lock Screen more naturally, according to MacRumors. The Wallet app is also gaining expanded support for more types of digital passes beyond the airline boarding pass upgrades introduced in iOS 26. For users on paid iCloud+ storage plans, iOS 27 unlocks additional perks, including increased daily usage limits for certain Apple Intelligence features, such as the revamped Image Playground tool, along with expanded access to some advanced Apple Intelligence capabilities in the Home app, though those specific features require a 2-terabyte iCloud+ tier or higher.

With the public beta already in its second iteration and additional beta releases expected throughout the summer, Apple is expected to continue refining iOS 27 in the weeks ahead before its anticipated public release alongside new iPhone hardware this September. Users curious about the update can join the public beta program now through Apple’s official beta software site, though the company continues to recommend testing beta software on a secondary device rather than a primary iPhone relied upon for daily use.

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Faisal Islam: The UK’s Trump trade deal no longer looks world-beating

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Donald Trump holds up his right fist while wearing a white shirt and red tie.

It has been a long road for President Donald Trump as he looks for a justification to erect a tariff wall around the US, including against key allies.

From the opioid crisis to illegal migration, then the need to bring manufacturing back to America’s shores, the list goes on.

Through Trump’s second term, there has been a new justification almost every month for the trade levies he is seeking to place on allies.

Some have been overturned by the courts, others by economics and some even by their own logic. And so, Trump has now turned to effectively accusing dozens of trade partners of trading in goods that have been produced using forced labour.

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These are “tariffs in search of an authority”, as one industry figure put it. The forced labour line shores up President Trump’s tariffs against a challenge from Congress or the courts.

In practice, the levies are curiously similar by country to a previous round of tariffs imposed supposedly for completely different reasons.

The good news for the UK is that the regime effectively remains the same as before.

What has changed is that our nearest neighbours in the European Union now have a much better deal than before, and in turn are in a better situation than the UK.

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While the UK and the EU each appear to have a 10% rate, the EU’s is a flat rate, while the UK’s will apply alongside other tariffs, in a range of goods including footwear and textiles.

The government has struck effective side deals on medicines, steel, aluminium, cars and, with the help of King Charles, whisky.

At the end of this process however the overall trade-weighted effective tariff rate for the EU (8.5%) could end up a bit lower than the UK’s (6.8%).

It should not matter that much, but the help given by doing the first deal, and by post-Brexit trade freedoms, looks to have been short-lived.

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The British Chambers of Commerce trade expert William Bain points to the competitive advantage for EU exporters into the US in some sectors.

The EU has secured better treatment because it has passed a ban on forced labour goods, which the UK has not.

This is not an accusation on the use of forced labour in supply chains. It is about the passing of specific legislation, mirroring the US ban on products that have used forced labour in supply chains.

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