
John Swinney hints at major U-turn on SNP munitions ban
The SNP may drop its ban on using taxpayers' cash to support munitions projects due to threats posed by nations like Russia, John Swinney has said.
The first minister told a recording of the podcast Holyrood Sources that his party's long-standing position 'can be reconsidered' in a notable shift which seemed to be paving the way for a U-turn.
The Scottish government has come under significant pressure and been accused of playing 'student politics' over a policy that means taxpayer support cannot be granted to support the 'manufacture of munitions'.
The Times revealed last month that Scottish Enterprise, the economic development agency, had refused to support plans for a new specialist welding centre due to fears it could be used to support the building of Royal Navy attack submarines.
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Reuters
23 minutes ago
- Reuters
UK's Moonpig forecasts slower earnings growth in fiscal year 2026
June 26 (Reuters) - British greeting card and gifting retailer Moonpig (MOONM.L), opens new tab said on Thursday it expects an 8% to 12% rise in adjusted earnings per share in 2026 and announced the departure of its CEO Nickyl Raithatha after seven years with the company. The adjusted earnings per share grew 18.1% to 15 pence in 2025.


The Independent
24 minutes ago
- The Independent
First-time buyers and retirees set to gain from possible mortgage rule changes
The UK's financial watchdog has initiated a significant review into mortgage regulations, potentially easing access to homeownership for first-time buyers, those borrowing into retirement, and the self-employed. The Financial Conduct Authority (FCA) has launched a discussion paper, marking the start of a "public conversation" aimed at exploring the benefits and risks of amending current mortgage rules. The paper specifically identifies areas where regulatory adjustments could foster broader access to sustainable homeownership and stimulate economic growth. It also considers how greater flexibility might enable lenders to better tailor products to individual customer needs. David Geale, executive director for payments and digital finance at the FCA, told the PA news agency: 'We're starting a public conversation on the future of the mortgage market, to see what we can do to help consumers navigate their financial lives and to support growth. 'So it's very much at that discussion end of: Here are some thoughts, where should we be on the spectrum of balancing risk versus opportunity?' He added: 'The areas we've opened up for discussion I think will benefit a wide group of people. 'But we are particularly looking at some of the constraints we see around people who are self-employed, people with volatile or unpredictable incomes, people maybe in vulnerable circumstances, who may be a good mortgage risk from a lending perspective, but the rules may be too rigid to allow lenders to look at them a bit more holistically.' Mr Geale said: 'It's looking at people for whom society has evolved in terms of the ways that they're paid and the ways that they live.' He said that the FCA is looking at whether there is more that can be done to help first-time buyers, people who are long-term renters with aspirations to get into the housing market, as well as people in later life who may have significant equity in their home but who 'may be income-constrained'. Mr Geale later added: 'What we're saying is we think there are perhaps better ways of assessing who is a good mortgage borrower. So, for example, if you've been paying rent on a regular basis, had no problem paying your rent, and a mortgage would actually be cheaper, well, could we be more explicit about the ability to take that into account?' He said the FCA will take what comes out of the discussion paper and 'reflect on that as feedback and then decide which areas we actually think we may need to change the rules, if at all'. Mr Geale described the discussion paper as 'an exciting way into' the debate about finding the right balance. He added: 'We are aiming to do this quickly, we are not hanging around. We have already acted in some places where we think there was room to do that.' The regulator's data shows that in 2024, more than two-thirds (68%) of first-time buyers borrowed for terms of 30 years or longer. The paper said: 'Many people's patterns of employment in the UK are now very different to those of earlier generations. There is more use of short-term contracting, zero-hours contracts and more people are self-employed.' The regulator wants to hear feedback on what further changes are needed to support mortgage access for those who are self-employed or with volatile income, both for home purchase and in later in life. The FCA is also seeking opinions on whether the stress test for mortgages should be changed. The stress test requires lenders to consider the potential impact of likely future changes to interest rates, to help make sure a borrower can afford their mortgage. Firms were made responsible for setting their stress rate, but the paper suggested a central stress rate could be set, with a forecasting model updated at regular intervals. However, there could be some drawbacks to this suggestion, including firms losing flexibility to adapt their test to different products, the paper said. The document also put a spotlight on homeowners increasingly needing to access their housing wealth to help fund them through retirement. It said that with 38% of working-age people projected to be under-saving for retirement, 'access to mortgages could be key to helping people achieve their financial goals in later life'. Many lenders will now accept earned income up to the age of 75 in their affordability assessments. But the paper said that some products tailored to older borrowers can generally be more expensive than standard mortgages – and older people may not know about the full range of options available to them. The FCA said it wants to help ensure its rules are not creating a barrier to innovative products. As an example, equity release products allowing borrowers to draw down on a monthly basis, rather than in a lump sum, may be a cost-effective option for some people who do not have a reliable income in retirement, the paper suggested. Other discussion points in the wide-ranging paper include whether the regulator should intervene to support the take-up of long-term fixed-rate mortgages; whether a rent-based affordability assessment would be a responsible basis to assess a consumer's ability to repay a prospective mortgage; and whether the regulator should take further steps to support part interest-only and part capital repayment ('part and part') mortgages. The regulator wants to hear feedback on whether changes to interest-only mortgage provisions could help first-time buyers. It also wants to know whether more could be done to support survivors of economic abuse who are in a joint mortgage with their abuser. The FCA is also looking at whether there are any regulatory interventions to the mortgage market that could help with addressing climate change challenges. There are around 8.96 million regulated mortgages across the UK and 3.6 million renting households who aim to buy a home in the future, according to the FCA. Lending rules were toughened following the 2008 financial crisis. The FCA said this has led to a more resilient market, with fewer borrowers in arrears and more than 99% of mortgages originated since 2014 being on track. The discussion paper added: 'However, this more cautious approach may also have unduly restricted consumer access to the market. As house prices have grown much faster than wages, home ownership has become an increasingly challenging aspiration for many – particularly those without financial support from family. 'Increasing numbers of consumers are finding it hard to meet affordability criteria, access a mortgage and consequently own a home.' The regulator said that while it may amend its rules in future, oversight and monitoring of the market and the Consumer Duty, which requires firms to put consumers at the heart of what they do, will continue to be central to its approach. It said it will continue to hold firms to high standards and closely monitor trends. Those with an interest in the paper will include mortgage lenders, intermediaries, trade bodies, consumer groups, homeowners and people aiming to become homeowners, the regulator said. Feedback will close on September 19. The regulator said it will focus on how consumers and the market are protected before recommending any rule changes. Matt Smith, Rightmove's mortgage expert, said: 'It's really promising that the regulator is opening up these discussions and continuing to look at targeted regulatory changes that could help people in different circumstances to borrow what they need to buy a home. 'We particularly welcome the potential to help more first-time buyers that can afford it to borrow more responsibly, and have access to sustainable home ownership.' He added: 'There are also some significant regional differences in property prices to be mindful of in discussions about enabling people to borrow more, with the gap between average earnings and property prices more stretched in the south of England than the north of England, Scotland and Wales. 'The desire to support more people in achieving their home ownership aspirations needs to be balanced against the potential risks of allowing people to borrow more, so that mortgage lending continues to be responsible. 'This balance is complex and is why we welcome the FCA's approach to open up a wide-ranging discussion on what is right.' Charles Roe, director of mortgages at UK Finance, said: 'We welcome the FCA's discussion paper on the future of the UK's mortgage market, and its recognition that changes to current regulations are needed to support sustainable home ownership to stimulate economic growth. 'Whilst mortgage firms will always lend responsibly, we look forward to working with our members to identify ways the FCA could amend its rules to help more individuals get on to, and move up or down, the housing ladder.'


The Independent
28 minutes ago
- The Independent
Starmer prepares welfare concessions amid backlash over benefit cuts
Sir Keir Starmer is preparing a climbdown as a major rebellion builds against his planned benefit cuts, Downing Street has suggested. The prime minister will be locked in talks on Thursday with backbench Labour MPs to find concessions to help him stave off an embarrassing defeat. After more than 120 of his own MPs signed an amendment threatening to kill his welfare reform bill, a Downing Street source said ministers are 'talking to colleagues about the bill and the changes it will bring'. But, after days of appearing to rule out changes to the legislation, which aims to cut the welfare bill by £5bn, the source told reporters that 'we want to start delivering this together on Tuesday'. And Douglas Alexander said on Thursday that, having read the rebel amendment, 'the first thing that strikes you is that everyone agrees welfare needs reform and that the system is broken'. The trade minister told Sky News: 'Everyone recognizes you're trying to take people off benefits and into work, because that's better for them and also better for our fiscal position. 'Where there is some disagreement at the moment is on the issue of how you give implementation to those principles.' Mr Alexander said a second reading vote like Tuesday's was usually on the principles of legislation, but the rebellion has forced ministers to consider 'how to give implementation to those principles'. 'So given the high level of agreement on the principles, the discussions over the coming days will really be about the implementation of those principles,' he said. It came after Labour MPs called for 'regime change' in Downing Street, with some elected last summer lashing out at the 'over-excitable boys' in Sir Keir's top team. Many blame the PM's chief of staff, Morgan McSweeney, for ignoring the concerns of backbenchers 'We are all very happy that we have a leader who's so respected around the world… we just think he needs fewer over-excitable boys in his team,' one MP told The Times. The total number of Labour MPs who have signed the amendment against Sir Keir's welfare cuts hit 126 on Wednesday, despite rebels having been warned with potential de-selections and the government's potential collapse if they support it. Efforts to win over rebels had been led by health secretary Wes Streeting, chancellor of the Duchy of Lancaster Pat McFadden, business secretary Jonathan Reynolds, and work and pensions secretary Liz Kendall. Asked what concessions could be offered to convince rebels to back the government, Angela Rayner sought to reassure backbenchers that they would not be expected to betray the party's traditional values. "I'm not going to get into that on your show tonight," the deputy prime minister said in an interview on ITV's Peston programme. "Those discussions are ongoing around making sure that the welfare reforms that we're bringing in support people into work who need that, and we're putting a huge amount of investment into doing that, but also protecting the most vulnerable." She acknowledged that "a lot of people are very scared about these changes" but added: "I haven't changed my Labour values and we're not expecting our benches to do anything that isn't in check with them. "What we want to do is support people, and that is the crucial bit around these reforms of what Labour are trying to achieve, and we're discussing that with our MPs." The plans restrict eligibility for personal independence payment (Pip), the main disability payment in England, and limit the sickness-related element of universal credit. The Government hopes the changes will get more people back into work and save up to £5 billion a year. Existing claimants will be given a 13-week phase-out period of financial support, a move seen as a bid to head off opposition by aiming to soften the impact of the changes. The fact so many Labour MPs are prepared to put their names to the "reasoned amendment" calling for a change of course shows how entrenched the opposition remains. One backbencher preparing to vote against the Bill said: "A lot of people have been saying they're upset about this for months. To leave it until a few days before the vote, it's not a very good way of running the country. "It's not very grown up." They said that minor concessions would not be enough, warning: "I don't think you can tinker with this. They need to go back to the drawing board." According to the government's impact assessment, the welfare reforms as a whole could push an extra 250,000 people, including 50,000 children, into relative poverty.