The Bank of England must contend with a slowdown in Britain's economy but also stubborn inflation pressures when it considers whether to cut interest rates in early February as well as its message about the outlook for the rest of the year.

All boroughs are also set to see a 4 percent rise in the portion of tax that goes towards the Mayor of London, which has gone up to £18.98. The City of London has seen a 3 percent increase to £171.25. This part of London is officially one of the UK’s best places to visit in 2025.

Inflation in the U.K. unexpectedly fell in December, a move that will likely fuel pressure on the Bank of England to cut interest rates again next month

U.K. inflation fell to a lower-than-expected 2.5% in December, with core price growth slowing further, according to data released by the Office for National Statistics.

Slower inflation provides ‘welcome’ boost to London markets - The FTSE 100 finished 99.59 points, or 1.21%, higher to end the day at 8,301.13.

Less than a third of businesses in the city now believe the UK economy will improve over the next 12 months. But 48% of firms in the capital expect their turnover to grow in the next year. Nearly half, 48 per cent, of businesses also expect their profitability to rise over 2025.

Thanks to years of cutbacks in public spending and unprecedented inflation, London’s borough councils are facing a cash crisis. Soon, for the first time thousands of London’s poorest residents will have to pay council tax, while 15 boroughs will increase council tax for all residents.

LONDON — Inflation in the U.K. unexpectedly fell in December, a move that has bolstered expectations that the Bank of England will cut interest rates again next month and relieved some pressure ...

LONDON (Reuters) - British inflation unexpectedly slowed last month and core measures of price growth - tracked by the Bank of England - fell more sharply, according to official data that will be welcomed by finance minister Rachel Reeves after recent a market selloff.

London was the only UK region to see house price falls in the year to November, according to the latest figures from the Office of National Statistics (ONS). Property prices in the capital dropped 0.1 per cent to an average of £511,000 in November, a slight improvement on the 0.4 per cent fall recorded in October.

Inflation is stuck above the BoE's 2% target and looks set to rise further while the economy has stagnated since the middle of 2024, offering conflicting signals for the central bank's rate-setters.

The yield on 10-year U.K. government bonds was 16 basis points lower at 4.727% at 4 p.m. in London, putting it on course for its first daily decline since Dec. 31. A surge since the start of the year on concerns over the country's growth outlook and debt load had taken the benchmark yield to its highest level since 2008.