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Business Today
Business live
IFS says next UK government faces worst fiscal inheritance in 70 years; markets eye ECB rates decision
Live  
IFS says next UK government faces worst fiscal inheritance in 70 years; markets eye ECB rates decision
ECB president Christine Lagarde to face questions on timing of first rate cut; Chinese stocks rally after more stimulus
Headlines
Economic policy  
Labour and Tories need to be honest about economic trade-offs, says IFS
Labour and Tories need to be honest about economic trade-offs, says IFS
Hydrogen power  
Huge underground discovery in France raises hopes for clean energy
Manufacturing  
UK factories cut output for 11th month in a row amid tensions in Red Sea
Nuclear power  
Hinkley Point C could be delayed to 2031 and cost up to £35bn, says EDF
Supreme problems  
Domino’s Pizza shares dive 30%, wiping $1.5bn
Exclusive  
Labour to unveil plans for City at forthcoming business conference
Energy industry  
Questions over £22bn in UK billpayer cash handed to wood-burning firms
Local government  
English councils to get extra £600m funding to ease soaring costs
China  
Beijing announces 0.5% cut in banks’ minimum reserves
Boeing  
Grounded 737 Max 9 planes can return to service, says FAA
Environment  
Nuclear power output expected to break global records in 2025
Rail transport  
Eurostar passenger numbers back to pre-Covid levels
Tesla  
Carmaker delivers underwhelming earnings
Inquiry  
Former Post Office investigator insists cleared Horizon IT victim was guilty
Working from home  
Bank of America sends warning letters to staff not going into offices
Today's agenda
The next UK government will face the toughest tax and spending decisions in 70 years, according to a leading thinktank.

The Institute for Fiscal Studies said a combination of high interest rates and weak growth means whoever wins the general election later this year will find it “more difficult to reduce debt as a fraction of national income than in any parliament since at least the 1950s".

It warned that Jeremy Hunt’s much-predicted budget tax cuts – he will unveil the budget on 6 March – risk being reversed or paid for by spending cuts, and urged the Conservative and Labour parties to “level” with voters before polling day.

In other news ... Chinese stocks rallied after a cut in Chinese bank reserve requirements, releasing about 1tn yuan for lending. The Shanghai Composite rose by 3% after hitting a four-year low on Monday, Hong Kong’s Hang Seng was up 2%, with Japan’s Nikkei little changed.

Investors have been selling Chinese equities for months, amid fears about the sluggish economy and the property crisis.

The European Central Bank is meeting today and will announce its interest rate decision at lunchtime. It is not expected to change its main interest rate of 4.5%.

Minutes from the December meeting showed policymakers were pushing back on aggressive market expectations for rate cuts, and the ECB president, Christine Lagarde, is likely to face questions on their timing during the press conference. Last week, she said the central bank could cut rates in the summer, during an interview with Bloomberg at the World Economic Forum in Davos.

Also coming up
• 9am GMT: Germany Ifo business confidence for January
• 11am GMT: UK CBI retail sales survey for January
• 1.15pm GMT: ECB interest rate decision (forecast: no change)
• 1.30pm GMT: US durable goods for December (forecast: 1.1%)
• 1.30pm GMT: US GDP for Q4 (forecast: 2%)
• 1.45pm GMT: ECB press conference
• 3pm GMT: US New home sales for December

We’ll be tracking all the main events through the day …
Nils Pratley on finance
'Snail mail’ plan isn’t the solution that Royal Mail needs
'Snail mail’ plan isn’t the solution that Royal Mail needs
Opinion
The unexpected message from the US for Keir Starmer: it’s not just the economy, stupid
Larry Elliott
The unexpected message from the US for Keir Starmer: it’s not just the economy, stupid
Explainer  
How do other countries handle postal services?
Excited for a tax cut? Don’t be. All it means is more austerity for Britain
Duncan Weldon
Analysis  
The Telegraph hopes to reshape Tory party in its own image
Media
Telegraph takeover  
UK government intends to order new investigation into deal
UK government intends to order new investigation into deal
Meta  
Company has not done enough to safeguard children, whistleblower says
Spotlight
Fossil fuel CO2 emissions hit 60-year low
EU  
Fossil fuel CO2 emissions hit 60-year low
Fossil emissions ‘finally back to 1960s levels’, say analysts, but they warn levels are still falling too slowly
Popular on business
Ex-post office operator claims she was told British Asians were often pushed into theft
Ex-post office operator claims she was told British Asians were often pushed into theft
‘Hypocrisy’: Tata builds vast India furnace despite Port Talbot emissions claims
Royal Mail could save £650m by moving to three-day-a-week service, says Ofcom
British billionaire Joe Lewis pleads guilty to US insider trading
Jeremy Hunt has room for £20bn tax cuts after borrowing halves year on year
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