Business Secretary Jonathan Reynolds has written to insurance firms urging them to pay out quickly to businesses damaged by last week's rioting. He told the BBC he had written to the Association of British Insurers (ABI) to make sure companies "receive the cover that they are entitled to through their insurance policies as swiftly as possible". Businesses including shops and hotels in Stockport, Liverpool, Hull, Sunderland and Belfast have seen windows or facades smashed or set on fire by rioters, while other stores have been looted. The ABI said it would "work with our members, the government, and other stakeholders, to do everything we can to help customers recover as quickly as possible". The Federation of Small Businesses (FSB) is also calling on Home Secretary Yvette Cooper to ensure fair treatment for its members from the insurance industry, Sky News has learnt. In his letter to her, Martin McTague, the FSB's national chairman, said its members had been on the "front line" of some of the worst disorder to hit Britain in decades. "Alongside supporting the police response, many have tried to protect their premises and are amongst the first in line the day after to help clean up their business, neighbourhoods and communities," he wrote. "Local authorities, insurance companies and politicians of all stripes, as you'll agree, need to be ready to support their small businesses to rebuild, recover and get back on their feet”.

Sainsbury’s is urging the Government to cut business rates, warning that failure to do so could lead to 17,300 shop closures over the next decade. The supermarket, citing research from Development Economics, has called for a rate cut of 20% to revitalise the high street and protect jobs, arguing that such a move could also boost Government tax revenue by £70m net per annum, whereas shop closures could cost the government £5.5bn in lost tax revenue. “All responsible retailers want to pay their fair share of tax, but the current business rates system has become an enormous burden on our industry,” Sainsbury’s CEO Simon Roberts said. “It is no longer fit for purpose… It has failed to keep pace with major changes in how customers are now shoppingand how much our retail industry has changed over the last decade”.

Water companies may have to pay customers more in compensation when they fail. Ministers are suggesting the minimum payment for most failings should double to £40, and they are also considering adding new rules for what could trigger compensation payments, including failing to carry out meter readings or installations as promised. Environment Secretary Steve Reed said households and businesses had been let down by water companies. “The new Government will clean up the water industry and turn the tide on the destruction of our waterways ensuring water companies protect the interests of their customers and the environment,” he said.

Business output has jumped to its highest level in two years, according to a closely-watched survey by advisory group BDO. Its output index rose 2.67 points to 100.77 in July, suggesting growth above historic trends. A score above 95 signals growth. Manufacturing did especially well, rising to 100.03 in July, from a sub-95 reading in June. Services also surpassed the 100 threshold for the first time since August 2022 at 100.87, driven by a surge in new contracts and increased staffing to meet demand at the start of the summer tourism season. Meanwhile, BDO’s business optimism index came in at more than 100 for the third month in a row, rising 0.13 points to 102.22, its highest level since the middle of 2022. BDO attributed the increases to across the board to easing inflationary pressures and expectations of further interest rate cuts. Last month, The Bank of England lowered borrowing costs - by 0.25% - for the first time since March 2020.

The battle against inflation is not yet over, according to Catherine Mann, a member of the Bank of England’s interest rate setting Monetary Policy Committee. Britain must not be “seduced” into thinking that the pace of price rises had been contained, she told The Financial Times, adding that she believes inflation will rise again from the Bank’s 2% target. Survey evidence suggests companies are still expecting to make relatively big increases to both wages and prices, which “says to me right now I’m looking at a problem for next year,” she said. Talking of annual pay deals, “some people at the bottom got quite a bit of an increase, rightfully so, but the ones above them didn’t. Which means next year they will,” she added. However, a survey from the Chartered Institute of Personnel and Development released this morning suggests British employers expect to raise pay by 3% over the coming year, the lowest planned increase in two years and down from 4% three months ago.  The Office for National Statistics will publish the latest data on wage increases, inflation, growth, and retail sales later this week.

Chancellor Rachel Reeves’ review of rail infrastructure projects is posing a threat to construction of the 4.5 mile tunnel into London Euston Station that is vital to finishing the HS2 rail line, the Telegraph reports. Reeves said last month that the Department for Transport (DfT) would review all rail infrastructure work as part of efforts to plug a £22bn gap in public finances. HS2 has spent £20m installing two drilling machines at the tunnel site, which are currently being assembled underground in west London. An HS2 spokesman told the newspaper: “We need to get tunnelling by next year if we’re going to avoid increased costs and complexity, but we can’t start until the budget is in place and we get the go-ahead from the Government. You can’t leave such complex equipment underground for an extended period. It would be like putting a car in the garage and not starting it for a year. We need to get the machines running as soon as we can so that they’re not deteriorating and won’t require maintenance.” The machines weigh 1,700 tonnes apiece and are 190 metres long. A DfT spokesman said: “The Government is working at pace to review the position it has inherited on HS2, including options for Euston. We will set out a clear plan in due course.”

Rental website Spareroom.com has surveyed its subscribers asking whether they are confident in the rental market and 81% voted no. Only 19% said yes. “We've asked this question several times over the years, but we've never seen such high levels of doubt from landlords before,” Spareroom said, noting that previously, the highest ‘no’ vote was 57% in December 2022. Spareroom also asked whether landlords believed the new government's housing policies will improve the rental market: 79% answered no. 14% thought it was too early to tell.

First it was JPMorgan Chase and Goldman Sachs, then last week it was Barclays, and now Wall Street bank Citigroup is removing the EU-imposed bonus cap for hundreds of its top London staff. However, it is as yet unclear how much Citi’s leading investment bankers could be able to earn relative to their base salary, The Sunday Times said yesterday. Barclays is allowing so-called material risk-takers (MRTs) to earn a bonus worth up to 10 times their base salary. The EU cap allows only 2 x base salary. The post-Brexit proposal to scrap the cap on bankers’ bonuses was first proposed by Liz Truss’ Government and then Rishi Sunak’s. Labour, despite criticising the move in both cases at the time, has not repealed the policy.

HSBC has pledged not to close any more of its branches until at least 2026 as regulators and politicians ramp up efforts to ensure access to cash and in-person banking services, City AM reports.

Indian steel magnate Sunil Mittal is hoping to buy a 24.5% in BT from Israeli billionaire Patrick Drahi’s European telecoms firm, Altice. Bharti Global, the investment arm of the Mittal family’s telecoms giant Bharti Enterprises, confirmed the deal this morning, saying it “demonstrates the confidence we have in BT and in the UK”. “BT has a strong portfolio of market-leading brands, high-quality assets and an experienced management team with a compelling strategy mandated by the BT board to deliver value over the long term, which we fully support,” its statement added. The statement also said Bharti had “no intention” of making a formal bid to acquire the company. Allison Kirkby, CEO of BT, said: “We welcome investors who recognise the long-term value of our business, and this scale of investment from Bharti Global is a great vote of confidence in the future of BT Group and our strategy. BT has enjoyed a long association with Bharti Enterprises, and I’m pleased that they share our ambition and vision for the future of our business.” Bharti Enterprises will acquire a 9.99% stake initially: the additional 14.51% will require national security clearance from the Government. Shares in BT have risen more than 6% in London this morning on the news.  

TalkTalk will announce today that it has reached agreement on the terms of a £400m refinancing that will see shareholders - including founder Sir Charles Dunstone - inject £235m into the group, Mark Kleinman reports for Sky News. In return, bank lenders and bondholders have agreed to extend the maturity of its borrowings from November this year and February 2025 to September 2027, buying the consumer broadband provider “crucial financial breathing space,” Kleinman says.

Worcester Bosch has agreed to change to the way it markets its products across the UK following criticism by The Competition and Markets Authority (CMA). The CMA raised concerns that the company may have mislead consumers into thinking that its boilers – marketed as ‘hydrogen-blend ready’ – are “unique or special” when in fact most boilers can run on a blend of up to 20% hydrogen; and that such marketing “could give the false impression that consumers would reduce their carbon footprint and ‘future-proof’ their heating system” by buying a “hydrogen ready” Worcester Bosch boiler. The watchdog said it was also concerned that Worcester Bosch “did not make it clear to consumers that it is uncertain whether hydrogen might be used for home heating systems in the future”. Worcester Bosch will now withdraw or change its marketing material across all its channels and contact its network of installers and third-party retailers asking them remove or change any Worcester Bosch marketing material of concern to the CMA.

Tesco has agreed to introduce “digital passports” across its F&F clothing range. The move anticipates an EU edict requiring such passports so shoppers buying everything from toys and fashion to furniture have detailed information on materials used in the products, their environmental impact, and where materials were sourced. Andrew Xeni, founder of the eco-friendly fashion label Nobody’s Child, which has already tested the passports, said: “What [the EU is] doing is, in essence, saying consumers should have the right and access to a level of information that enables them to make an informed buying decision, so that they’re aware of the environmental impact of that product that they’re buying.” The directive is to come into force across the eurozone across different sectors over the next eight years. Xeni told The Telegraph it could cause “massive disruption” among fast fashion brands, especially those that have faced scrutiny over sustainability.

Revolution Bars has had its restructuring plans approved by the High Court. The bar chain said its turnaround plan would enable it to secure its long term future by amending and extending its secured lending facilities; exiting the leases of certain loss-making sites; and implementing rent reductions on others. The London-listed group expects the plan to deliver "a significant annualised EBITDA improvement" of roughly £3.8m. As many as 25 bar and pub locations will be closed as part of the plan.

Shein is said to be preparing to open its first British warehouse in preparation for a £50bn listing on the London Stock Exchange. According to The Telegraph, the Chinese fast fashion giant is looking for a large site within the Midlands' so-called "golden logistics triangle" and has viewed sites in Derby, Daventry, Coventry and Castle Donington. Currenly, third-party provider, Super Smart Service, handles the company's UK orders from a Cannock warehouse. A Shein spokesman confirmed tit was searching worldwide for warehouse space but said it had “no immediate plans to acquire warehouse space in the UK”.