𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

May figures are in for the UK’s GDP and it’s more bad news for Rachel Reeves and co.

Data from the Office for National Statistics (ONS) shows the economy shrinking 0.1 per cent following April’s more stark 0.3 per cent contraction. Lower production and construction were partly to blame for May’s disappointing figures.

“May’s fall in production was driven by oil and gas extraction, car manufacturing and the often-erratic pharmaceutical industry,” said ONS director of economic statistics Liz McKeown.

“While services grew overall in May with a strong month for legal firms, which recovered from a weak April, and computer programming, these were partially offset by a very weak month for retail sales.”

The FTSE 100 had been on a fairly flat trajectory for most of the week up until the last couple of days – and yesterday was a bumper day with the index closing 1.2 per cent up.

Barring some pretty bad news it should finish in positive territory for the week, given it’s up almost 1.8 per cent all told, but profit-taking is always possible after the index hit a new all time high level.

The 9,000 milestone is now very close indeed.

Former chancellor Lord Norman Lamont has told the government that the loss of AstraZeneca, the biggest public listed company on London’s FTSE 100, would be a huge blow.

He said: “The loss of AstraZeneca, were it to happen, would be a devastating blow to the London Stock Exchange.

“Is it not therefore very important, if we are to retain the listings, that the Government have a supportive policy for life sciences in particular?

“Is it not regrettable, first, that the life sciences review has not yet appeared and, secondly, that the Government refused to back the vaccine plant at Speke near Liverpool?

“Is it not important that, if we want to retain the listings, which will mean retaining the research, development and employment, we have a proper strategy with these companies and do not just regard them as cash cows but valuable investments to be encouraged?”

Any attempt by Rachel Reeves to plug the gap in the UK’s public finances through a wealth tax would be “naive”, with very few success stories from other nations, experts have warned.

The chancellor may need to find as much as £30bn in savings through either cutting costs or raising taxes ahead of her Budget, with Keir Starmer’s government under pressure to find ways of raising funds for the public purse.

But a leading tax lawyer told The Independent a wealth tax would actually have a detrimental effect on the UK’s tax take – and that the government would be “arrogant” to think it would work in this country.

Good morning and welcome to our final day of the week covering the rolling business and stock market news.