Pack Up Your Troubles In Your Own Kit Bag!                   04 July 2025

In May, Dubai’s property market continued to move higher, posting US$ 18.20 billion in sales, (44.0% higher, when compared to May 2024), and a 6.0% increase in transactions to 18.7k.  According to CBRE, off-plan sales surged 46% on the year, in the first five months of the year, reflecting buyers’ preferences for newer, better designed developments. Other contributing factors include a healthy Dubai economy, increase in branded residences, enhanced post-handover payment plans, and attractive pricing compared to ready properties. It also noted the rising popularity of branded residences that not only offer premium amenities and services but also fetch higher resale values and rental yields. With Q2 posting record returns in off plan property sales, Business Bay continued to be one of the top-performing locations. YTD, it registered over1.9k deals, equating to US$ 1.23 billion in off-plan transactions, driven by renewed investor confidence, high-level developments, and enhanced lifestyle concepts. In May, Business Bay accounted for 5% of total sales by value, but only 3% of the transaction volume. It ranks among Dubai’s top-performing investment destinations, with average annual returns exceeding 7.0% in certain developments, and, according to Knights Frank saw a 22.0% annual Q2 increase in off-plan property prices, compared to a 15.0% rise across Dubai.

Driven by the quadruple whammy of sustained demand, limited supply, growing investor confidence and a marked rise in the number of millionaires living in the emirate, Allsopp & Allsopp have seen villa/townhouse prices in some Dubai localities surge more than 200% over the past three years. The agency noted that prices in Al Waha and Nad Al Sheba have risen by 265% to US$ 1.20 million and 207% to US$ 2.57 million. Other leading communities include Dubai South Residential District and Dubai Investment Park, both posting 185% price hikes to US$ 1.09 million and US$ 1.69 million; additionally, Al Quoz, Dubai Sports City, Emaar South and Al Satwa have seen rises of between 121% and 176%.

Dubai Holding, and Select Group, have joined to develop a real estate development in Palm Jumeirah, an upscale residential and hospitality offering that establishes “new benchmarks for luxury waterfront lifestyles in this world-class destination”. This agreement marks Dubai Holding’s first strategic land sale with a third-party developer at Palm Jebel Ali. Its seven islands span 13.4 km and feature sixteen fronds and over ninety km of beachfront. The landmark development is designed with several mixed-use pedestrian-friendly neighbourhoods.

It has also partnered in a d3 project which will serve as “a vibrant mixed-use community, seamlessly blending culture, innovation and contemporary urban living in one of Dubai’s most creative hubs”. Further details will be revealed in coming weeks. The location, which is a global creative ecosystem and the destination of choice for global design talent, reinforces Dubai’s status as the first city in the ME to be designated a UNESCO Creative City of Design.

Another launch by Dubai South Properties sees Hayat becoming the latest addition to the growing community. The master-planned luxury real estate community, located in the Golf District near Al Maktoum International Airport, will span ten million sq ft and is located near Al Maktoum International Airport. The first phase is due for completion by Q2 2028.

Dubai is home to some one hundred and forty branded real estate projects scheduled for completion by 2031 – and, with a 160% growth rate over the past decade, has become the global capital for branded residences. Betterhomes estimates that there has been an annual 43% hike in numbers to 13k, generating a transaction value of US$ 81.93 billion and representing 8.5% of the total real estate transaction value. It appears that investors and buyers are willing to pay, on average, a 40% – 60% premium per sq ft over their non-branded counterparts in the same locality. The likes of hospitality titans, Four Seasons and Ritz-Carlton got the ball rolling some years ago, but now it seems that there are so many brands from different sectors including luxury cars, (Bentley and Mercedes-Benz) fashion houses, (Armani and Missoni) and entertainment, (Cipriani) which have taken up the mantle. Now local developers have joined the crowd by either partnering with global brands or establishing their own presence in Dubai. The former is represented by the likes of Binghatti (Bugatti Residences), Arada (Armani Beach Residences), Damac (Trump) and Select Group (Six Senses Residences), with the latter by Emaar, Meraas, and Nakheel having created their own iconic, brand-centric enclaves.

A new project emanating from the Dubai Land Department, together with Dubai Department of Economy & Tourism, sees the launch of a scheme to assist UAE residents – both locals and expats’ – to buy their own first homes in the emirate. It will apply to any home valued at less than US$ 1.36 million, (AED 5 million), with those signing up getting ‘better rates that what’s available in the market’ and access to new launches. Availability is open to:

• every UAE National and resident
• only those who have not owned a home earlier in the UAE
• over eighteen years

They will also get flexible payment plans from banks participating in the project as well as support from developers, with mortgages available for up to eighteen years. The DLD commented that “in a second phase, we could open this to overseas buyers”. It is hoped that this new initiative will bring in US$ 16.35 billion by 2033. To date, thirteen developers and five banks have signed up to offer the preferential terms to home buyers wanting to go through with the programme.

Dubai Municipality has announced a new set of performance standards and indicators aimed at improving quality, transparency, and accountability in the construction sector – a major update to its ‘Contractors and Engineering Offices Evaluation System’; they will take effect early next year. It will also see improved enhancements on the likes of financial stability, Emiratisation rates, social responsibility, timely project delivery, and support for innovative projects that adopt advanced technologies. Not only will it ensure a smarter, more sustainable, and pioneering construction sector in Dubai, it will also align with the highest international standards and benchmarks.

After identifying professional practices that violated approved regulations, standards, and ethical guidelines, Dubai Municipality has suspended two engineering consultancy offices for six months. It was reported thatthe violations posed potential risks to the interests of property owners and developers. Consequently, both also been prohibited from obtaining licences for any new projects during the suspension period.

Moreover, DM has awarded a US$ 27 million contract for the first phase of the Ras Al Khor Wildlife Sanctuary Developent Project. The full US$ 177 million project aims to develop the sanctuary into an urban eco-tourism model, in line with Dubai’s 2040 Urban Plan.

 flydubai has broken ground on its new Aircraft Maintenance Centre at Dubai South, (and in close proximity to Al Maktoum International Airport), which is slated for a Q4 2026 completion. It will be home to the carrier’s expanding team of more than six hundred skilled engineers working in Line Maintenance, Technical Services, Materials and Workshops. The multimillion-dollar facility, spanning 32.6k sq mt, will ensure an increased level of control and quicker maintenance turnaround for the carrier’s fleet. It will house an aircraft hangar, support workshops and office buildings. At the ceremony, its CEO, Ghaith Al Ghaith, noted that, “this is a strategic step towards supporting our growing maintenance requirement and capacity as we take delivery of more aircraft, and reaffirms our long-term commitment to innovation, operational efficiency and supporting Dubai’s position as a global leader in aviation and business excellence.”

Last Monday saw Joby Aviation successfully conduct its first test flight of its fully electric aerial taxi in Dubai. The test flight took place at a remote desert site, with the aircraft starting with a vertical take-off, flying several miles, and ending with a vertical landing. This was critical to the emirate’s strategy to integrate electric vertical take-off and landing aircraft as part of its transport network by 2026. The Joby Aerial Taxi is capable of flying up to 160 km at speeds reaching 320 kmph. It will definitely assist with speeding up the traffic; a conventional taxi ride would normally take fifty minutes from DXB to Palm Jumeirah whereas in an eVTOL aircraft it would take only twelve minutes. The commercial rollout will initially connect four vertiport hubs—Dubai International Airport, Palm Jumeirah, Dubai Downtown, and Dubai Marina. Archer Aviation has also conducted test flights of its Midnight electric vertical take-off and landing air taxi services at Al Bateen Executive Airport in Abu Dhabi, marking a key milestone for its planned commercial deployment in the UAE and the expansion of its operations in the region.

New research by Travelbag ranks Dubai as the third most scenic city globally to explore at night, behind New York and Tokyo – but ahead of Singapore and Muscat. It appears that noctourism is one of 2025’s biggest travel trends, with interest in after-dark adventures having soared, as witnessed by Google searches for nighttime tourism activities spiking by 164% over the past twelve months. The survey of more than one hundred cities looked at various factors such as Instagram hashtag activity, levels of light and noise pollution, nighttime safety scores, and the number of late-night venues. Dubai stood out for its blend of safety and style, with its nightlife scene, (and one hundred and ninety late-night venues), having inspired 29.6k Instagram hashtags. Its nighttime safety scored 83, (third behind Abu Dhabi and Taipei), whilst its moderate light and noise pollution rated 53.

Visa’s 2025 Global Digital Shopping Index, of 1.7k consumers and three hundred and twenty-nine merchants, conducted by PYMNTS Intelligence, places the UAE as the world’s leading market for mobile shopping. Its findings found that:

• 67% of UAE consumers used their phones as part of their latest retail purchase – 23% higher since 2022
• The UAE has the highest rate of online shopping with mobile devices, at 37%, ahead of Singapore (34.8%), the UK (27.6%), and Brazil (24.4%)
• 32% of UAE consumers surveyed used biometric authentication (such as fingerprint or facial recognition) for their latest online retail transaction, far exceeding the 17% global average
• 53% of UAE consumers want to use cross-channel shopping (across physical and digital channels and different devices) – the second-highest rate globally
• UAE shoppers rank among the highest worldwide in preferring rewards programmes (75%), free shipping (73%), and price matching (70%)
• 38% of UAE shoppers made their most recent retail purchase online through a mobile phone or computer for home delivery

Starting last Tuesday, 01 July, Dubai government employees moved to a four-day work week, or reduced summer hours, under the ‘Our Flexible Summer’ initiative. The former will see the group working eight hours a day, Monday to Thursday, and the latter working seven hours from Monday to Thursday and 4.5 hours on Friday. This, aiming to improve work-life balance and productivity, will run until 12 September.

As from 2014 to 2024, population-wise, Dubai has seen a 74.5% surge, to 3.864 million, (from 2.214 million); over this period, Abu Dhabi’s growth has been 51.0% to 4.136 million. Last year, impressive growth was seen in both emirates – Dubai by 5.7% and Abu Dhabi by 7.5%. In H1, Dubai welcomed a further 103k and its 30 June population has risen to 3.967 million, which should top 4.0 million by September.

Dubai’s “Al Freej Fridge” campaign, organised by Ferjan Dubai, with support from the Mohammed bin Rashid Al Maktoum Global Initiatives, expects that two million bottles of cold water, juices, and frozen treats will be delivered to outdoor workers this summer, to help protect them from the extreme heat. The campaign, which runs until 23 August, focuses on workers such as cleaners, construction staff, delivery drivers, and landscapers who spend long hours outdoors under the sun. Refrigerated trucks travel across Dubai to deliver cold drinks directly to workers at their outdoor job sites. In addition, fixed refrigerators stocked with water, juices, and frozen treats have been installed in workers’ accommodation to increase accessibility.

Recently, Dubai’s Crown Prince of Dubai, Sheikh Hamdan bin Mohammed, as well the Crown Prince of Abu Dhabi, Sheikh Khaled, bin Mohamed bin Zayed (and a group of aides and friends), visited the Dubal Mall, and had lunch at La Maison Ani. Several in the restaurant were surprised to see both leaders casually walking in for lunch and noted that ‘they were super friendly and said hello to everyone’. To add to the patrons’ joy, the Crown Prince paid everyone’s bill!

Almost nine years ago, the federal government liberalised fuel prices so that they could be aligned with market rates until the onset of the pandemic which saw prices frozen by the Fuel Price Committee, in 2020. The controls were removed in March 2021 to reflect the movement of the market once again. The approved fuel prices by the Ministry of Energy are determined every month, according to the average global price of oil, whether up or down, after adding the operating costs of distribution companies. After two months of unchanged prices, July saw monthly increases of between 4.5% – 5.0% for petrol and 7.3% for diesel, (driven mainly by rising oil prices because of the outbreak of conflict between Israel and Iran, followed by US strikes on Iranian nuclear sites). The breakdown of fuel prices for a litre for July is as follows:

Super 98     US$ 0.736 from US$ 0.703       in July        up     3.5% YTD US$ 0.711     

Special 95   US$ 0.703 from US$ 0.673      in July         up     3.2% YTD US$ 0.681        

E-plus 91     US$ 0.684 from US$ 0.651      in July         up     3.3% YTD US$ 0.662

Diesel           US$ 0.717 from US$ 0.668      in  July        up     7.3% YTD US$ 0.730

Pursuant to Article (14) of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations and its amendments, the Central Bank of the UAE imposed a financial sanction of US$ 1.61 million on an unnamed foreign bank branch operating in the UAE. It was reported that the financial institution failed to comply with the central bank’s regulations.

In the first nine months of its fiscal year, ending 30 June, Taaleem posted a 18.5% hike in revenue to US$ 268 million, with a US$ 66 million profit, at a 24.6% margin. More is to come in the future as this year the Dubai-based school operator has started building two high end Harrow schools, in Dubai and Abu Dhabi, as well as taking over Kids First Group, which operates 34 nurseries. It now boasts thirty-eight schools educating 41.3k pupils. Its CEO, Alan Williamson, noted that “we accelerated investment across our platform, with capex reaching AED 600.3 million (US$ 164 million) – or 61% of operating revenue”, and that “our financial position remains strong with net debt at just AED 17.4 million, (US$ 4.7 million)”. Its debt levels have risen to US$ 150 million to support the acquisitions and spending plans.

Last Friday, it was reported that an Emirates NBD email was sent to clients advising then that as from 01 September 2025, customers would be charged US$ 0.71, (inclusive of VAT), for international transfers made via the app or online banking, including those done through DirectRemit. However, the bank has confirmed that money sent, via Emirates NBD DirectRemit, to six countries – India, Pakistan, the Philippines, Egypt, Sri Lanka, and the UK – would remain free of charge.

Drake and Scull has submitted clarification on its two Arabian Hills contracts to DFM confirming that the project will be financed via its cash resources and available bank facilities, with a profit margin to range between 8-10%. An independent valuation firm, Securities & Commodities Authority, has been appointed to look into the project value. Drake & Scull has submitted further clarification to the DFM so as to assess the ‘fairness and competitiveness’ of the contract value that Drake & Scull signed up for’, relating to its infrastructure works. This covers an area of 6.2 million sq mt and the various packages would come to over US$ 272 million, with ‘minor deviations from market benchmarks’, according to DSI. The firm ‘affirms the valuation process and presentation to the general assembly were conducted transparently and based on reports from independent engineering consultants’. This is probably the largest project that the firm has carried out since its turnaround strategy was given the approval by the Dubai Courts. DSI had been fighting against liquidation for years before the court gave the approval, and combined losses of Dh4 billion plus through the years.

Emirates REIT posted a Q1 profit of US$ 19 million – 24.0% higher on the year – as operating expenses were down 8.4%, year-on-year, to US$ 3 million. Net income – excluding Trident Grand Mall and Office Park – was flat at US$ 16 million, as net finance costs declined sharply by 57% to US$ 6 million, driven by the successful Sukuk refinancing in late 2024. Driven by the ongoing upward trend in the UAE property market, the fair value of investment properties rose 14.0%, on the year, to US$ 1.2 billion – and this despite strategic asset disposals but underpinned by unrealised revaluation gains of US$ 149 million. Occupancy topped 95%, whilst there was a 17.0% hike in commercial and retail rental rates. This performance reflects Dubai’s robust leasing environment and sustained demand for high-quality real estate. Last month, the shareholders of Emirates REIT approved the distribution of a final US$ 7 million cash dividend, or US$ 0.02 per ordinary share, for the financial year ending on 31 December 2024, with a further dividend payment later in the year.

The DFM opened the week, on Monday 30 June, on 5,684 points  and shed thirteen points (1.0%), to close the trading week on 5,741 points, by Friday 04 July 2025. Emaar Properties, US$ 0.28 higher the previous week, gained US$ 0.13, closing on US$ 3.79 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.75, US$ 6.27, US$ 2.32 and US$ 0.46 and closed on US$ 0.76, US$ 6.40, US$ 2.50 and US$ 0.47. On 04 July, trading was at one hundred and ninety-four million shares, with a value of US$ one hundred and fourteen million dollars, compared to two hundred and eighty-two million shares, with a value of US$ two hundred and forty-six million dollars, on 26 June 2025.

The bourse had opened the year on 4,063 points and, having closed on 30 June at 5,707 was 1,644 points (40.5%) higher YTD. Emaar had started the year with a 01 January 2025 opening figure of US$ 2.16, and had gained US$ 1.55, to close on 30 June at US$ 3.71. Four other bellwether stocks, DEWA, Emirates NBD, DIB and DFM started 2025 on US$ 0.67, US$ 4.70, US$ 1.56 and US$ 0.38 and closed June 2025 at US$ 0.77, US$ 6.27, US$ 3.71 and US$ 0.46.  

By Friday, 04 July 2025, Brent, US$ 0.69 lower (1.5%) the previous week, gained US$ 2.38 (2.6%) to close on US$ 66.28. Gold, US$ 174 (5.5%) higher the previous week, gained US$ 53 (1.6%) to end the week’s trading at US$ 3,344 on 04 July.

Brent started the year on US$ 74.81 and shed US$ 8.07 (10.8%), to close 30 June 2025 on US$ 66.74. Gold started the year trading at US$ 2,624, and by the end of June, the yellow metal had gained US$ 679 (25.9%) and was trading at US$ 3,303.

US President Trump has got his ‘big, beautiful bill’ passed, which cleared the Senate and Congress approvals. Now, Trump gets to sign what he has always termed the ‘big beautiful bill’ that will set off faster growth for the US economy. One thing is certain – a marked improvement in the US economy would push the greenback higher which in turn will pull gold prices in the other direction – downwards

Bad news for many airlines, including Ryanair, the EU’s transport and tourism committee proposed changes to EU passenger rights rules that could force airlines to allow customers to take two bags onto planes, completely free of charge. On the agenda was:

• a common reimbursement form
• no charge for selecting a child seat
• a free on-board personal item and small hand luggage
• better protections for customers travelling across multiple modes of transport. 

The outcome was basically that passengers should have the right to one personal item (such as a handbag, backpack or laptop), with the maximum dimensions of 40 x 30 x 15 cm, and also to one small item of hand luggage (with a maximum dimension of 100 cm and weighing no more than 7kg), without being forced to pay extra. 

Today, Michael O’Leary, the group chief executive of Ryanair, called on Ursula von der Leyen to ‘quit’ if she cannot stop disruptions, caused by repeated French air traffic control strikes. He has stated that as she is unable, at an EU level, to put an end to damaging disputes, which have resulted in interruptions to overflights or “if you’re not willing to protect or fix overflights then quit and let somebody more effective do the job”. The latest action began on Thursday and is due to conclude later today, forcing thousands of flights to be delayed and cancelled through French airspace closures.

This week Microsoft confirmed that it would be laying off some 9k employees, impacting on several unnamed divisions that could include its Xbox video gaming unit. It had already initiated three rounds of redundancies earlier in the year, including 6k announced in May, which would equate to some 4% of its 228k workforce leaving so far this year. The tech giant has already indicated that it would be investing up to US$ 80.0 billion in mega data centres to train AI models.

According to Nationwide, June UK house prices posted their biggest monthly fall, of 0.8%, since February 2023, not helped by weaker demand following the April changes to stamp duty; house buyers in England and Northern Ireland now pay the tax on properties over US$ 172k, (GBP 125k) instead double that amount, as was the case previously. On an annual basis, house prices US$ 371k, (GBP 272k), were 2.1% higher – its slowest annual growth rate for nearly a year. An improvement is expected in the coming months driven by the distinct possibility that borrowing costs could become cheaper, unemployment rate will probably remain low and  earnings will still outpace inflation.

A warning to anyone considering visiting the UK this summer is that mobile thefts have surged to record levels, with an average of thirty-seven people having their mobiles stolen in the West End every day. Almost 40k phones were reported stolen in the area over the past four years. The Metropolitan Police estimates that almost 231k phone thefts and robberies were recorded in the capital, with the number of victims tripling over the past four years. 

Latest Labor Department figures show that a larger than expected 147k jobs were added last month, driven by roles in state and local government education rising, with around 63.5k positions added, while healthcare and social assistance gained another 58.6k jobs; on the flip side, hiring for roles in the federal government, professional services, and manufacturing declined. The unemployment rate dipped 0.1 to 4.1%, but the number of long-term unemployed increased by 190k to 1.6 million people. A cause for some concern was that many employers were hesitant to take on new staff or replace those who leave in these uncertain economic times. These figures point to the Fed maintaining rates at current levels – 4.25% – 4.50% – which will not be well received by the US President who, only this week, reiterated that it was ‘Too Late’ should resign immediately” as he yet again berated Chairman Powell for not cutting rates.

Being unhappy with a recently introduced Canadian 3.0% tax targeting big tech companies, Donald Trump threatened to cut off trade talks with Canada “immediately”; the talks were ongoing, with a mid-July trade deal on the horizon.  It was estimated that it would cost American companies, such as Amazon, Apple and Google, more than US$ 2 billion a year (Other countries have a similar tax in place, including the UK, France and Italy). Trump promised that “we will let Canada know the tariff that they will be paying to do business with the United States of America within the next seven-day period”. The US is Canada’s top trade partner, with imports totalling US$ 348.41 billion in 2024, under a longstanding free trade agreement, whilst trade in the other direction came to US$ 435.17, accounting for some 76.4% of Canada’s total export; only 14.0% of US exports head north. However earlier in the year Trump levied a 25% tariff, citing drug trafficking on the border.

With still almost ninety trade deals still to settle, the US government has finalised at least one with Vietnam that will see a 20% levy charged on imports – it was earlier facing a 26% tariff. Furthermore, Vietnam will not charge the US any duty on its exports to the country. In his “Great Deal of Cooperation”, Trump will charge 40% on goods transhipping through Vietnam – it is estimated that at least a third of all Vietnamese exports to the US originated from China which will now face the increased rate The country has become a major hub for many global brands such as Apple, Nike, and Lulumelon.

The US President has voiced his concern that a trade agreement could be settled with Japan and has threatened to impose a “30% or 35%” tariff on the country if a deal is not reached before next week’s deadline. He had posted a 24% tariff on the country as part of his 02 April ‘Liberation Day’ announcements, which, in line with other countries was dropped to 10% for a ninety-day period which runs out next Wednesday, 09 July.  There is also a 25% import tax on Japanese vehicles and parts, while steel and aluminium are subject to a 50% tariff. Last Tuesday, Japan’s chief cabinet secretary Yoshimasa Hayashi said he would not make concessions that could hurt his country’s farmers to strike an agreement with Washington. Trump has commented that “to show people how spoiled countries have become with respect to the United States of America, and I have great respect for Japan, they won’t take our RICE, and yet they have a massive rice shortage”. He may have a point!

Today, the US government has started sending out “ten or twelve” letters to countries with details of higher US tariff rates that will begin on 01 August. The balance will be sent out over the coming days. The US President added that the import duties will range from “60% or 70% tariffs to 10 to 20% tariffs”, having previously commented that there would be a baseline tariff of 10% on many economies up to a 50% maximum. He has yet to confirm which countries’ goods would face the US taxes, or whether the rates would only apply to certain goods. He added that “my inclination is to send a letter out and say what tariff they’re going to be paying”. “It’s just much easier.”

The latest annual Hologic Global Women’s Health Index places the UK at forty-first out of one hundred and forty-two countries – down again, for the fourth consecutive year. Although still hanging on to a place in the top third of global countries, it is ranked as the twenty-third out of thirty-one European nations and below the US where women’s healthcare has been impacted by restrictions on access to abortion in some states. The study noted that there had been an annual decline in how women in the UK rate pregnancy care, and they were less likely to be screened for conditions such as diabetes, high blood pressure and cancer than in comparable countries. Despite the creation of a women’s health strategy, three years ago, it appears that there has been little improvement in women’s healthcare. The top-ranked countries globally were Taiwan, Kuwait, Austria, Switzerland and Finland, with Afghanistan, the Democratic Republic of Congo, Chad, Sierra Leone and Liberia making up the bottom five.

Fifty-five years ago, Margaret Thatcher uttered the famous words – ‘the lady’s not for turning“; now it seems that Keir Starmer’s mantra is ‘the man is ready to turn again’. He has been involved in three major – and potentially damaging – U-turns over the past month alone:

• the ultra slow change in direction on the winter fuel payments for millions of pensioners taken away by Chancellor Rachel Reeves in her now infamous October 2024 budget
• the contra decision to hold a statutory inquiry into grooming gangs, having indicated that the government thought it unnecessary but changed its mind under intense political pressure
• this week’s debacle on benefits which has seen the prime minister publicly humiliated by his own MPs despite multiple warnings that they were deeply unpopular with many of his party members. The knight – probably via a mix of political inexperience, naivety and arrogance – and his cabinet refused to budge believing that it would push the bill through parliament because of its huge majority What happened was a road crash that left Rachel Reeves in ICU

Following the Chancellor’s tearful attendance at this Wednesday’s PMQs, sterling slumped 1.0% and government borrowing costs rose to 4.67% – one of the biggest single day movements since October 2022 when markets were in turmoil after former Prime Minister Liz Truss’s mini-budget. At the time, the Prime Minister refused to give her a public show of support but later, long after the damage had been done, commented that he worked “in lockstep” with Rachel Reeves and she was “doing an excellent job as Chancellor”.  The fact that the U-Turn on welfare reforms puts a US$ 6.81 billion dent in her plans would not add to her demeanour and points to future problems for her to balance the books and the inevitability of tax increases later in the year. She had committed to self-imposed rules to reduce debt and balance the budget, but whether that is still possible is subject to some conjecture. Speculation around her future led investors to question the government’s commitment to balancing the books – and how they would do that. It must be time for her To Pack Up Your Troubles In Your Own Kit Bag!