UK business confidence plunged to its lowest level on record in September, driven primarily by escalating employment costs and ongoing energy price pressures. According to a survey of business leaders conducted by the Institute of Directors, cost expectations reached unprecedented heights, with labor expenses representing the most significant concern. Anna Leach, the IoD's chief economist, noted that "business confidence has plumbed new depths in September" following a brief improvement at summer's end, highlighting deteriorating conditions across multiple sectors.

The bleak business sentiment emerges against a backdrop of divided views among Bank of England policymakers regarding the inflation trajectory. Two Bank officials, Clare Lombardelli and Catherine Mann, have expressed concerns that UK inflation may not decline as rapidly as anticipated next year, with recent food price spikes potentially persisting into 2026. Both policymakers voted against the central bank's most recent interest rate cut in August, with Mann stating she believes "an inflation persistence scenario is playing out" despite maintaining that further rate reductions remain possible.

In contrast, Deputy Governor Sarah Breeden has adopted a more optimistic stance, asserting that the recent increase in UK inflation will prove temporary and unlikely to generate significant second-round effects. Speaking at Cardiff University, Breeden stated she had "not seen any evidence yet to suggest that the underlying disinflationary process from past shocks is veering off-track," characterizing the situation as "so far so good." Her comments came as headline inflation remained at 3.8% in August, unchanged from the previous month.

The policy divergence within the Bank's Monetary Policy Committee reflects the complex balancing act facing UK monetary authorities. While some members worry about entrenched inflation, Breeden has cautioned that maintaining restrictive policy for "too long" carries economic risks, potentially undermining output and employment while pulling inflation below target. This tension between inflation control and growth preservation comes as businesses grapple with record-low confidence and the chancellor faces calls to deliver a growth-focused budget in November that prioritizes business interests.

Health Secretary Wes Streeting has announced an urgent independent inquiry into maternity services at Leeds Teaching Hospitals NHS Trust, describing himself as "shocked" by families' experiences of "repeated maternity failures in Leeds - made worse by the unacceptable response of the trust." The decision comes after years of campaigning by bereaved families who reported feeling "gaslit, dismissed and even blamed" for what went wrong at one of Europe's largest teaching hospitals. Mr. Streeting emphasized the "stark contradiction between scale and safety standards" at the trust, which official data shows "remains an outlier on perinatal mortality."

The inquiry follows a June downgrade by the Care Quality Commission, which rated maternity services at the trust as "inadequate" and identified serious risks to women and babies. Inspectors highlighted a deep-rooted "blame culture" that made staff reluctant to raise concerns about incidents. Brendan Brown, chief executive of LTH NHS Trust, apologized to bereaved families and expressed hope that the inquiry would provide them with "answers." He stated the trust is "determined to do better" and is already taking significant steps to improve maternity and neonatal services following reviews by regulatory bodies.

Families affected by the failures have welcomed the inquiry but are calling for rigorous leadership, specifically requesting that midwife Donna Ockenden chair the investigation. Fiona Winser-Ramm, whose daughter Aliona died in 2020 after an inquest found multiple failures, emphasized the importance of ensuring the inquiry is "the best and most thorough that it can possibly be." She described how families have been "thrust into this life that none of us should be living," noting that their shared grief should never have brought them together under such circumstances.

Serious questions are now being raised about what Sir Julian Hartley, who led the trust for ten years until 2023 and now heads the Care Quality Commission, knew about the poor maternity care. In a statement, Sir Julian expressed being "truly sorry" for families' suffering and said that while he was "absolutely committed to ensuring good patient care across all services, including maternity," this commitment "wasn't enough to prevent some families suffering pain and loss." Lauren Caulfield, whose daughter Grace died in 2022, called it "completely unacceptable that nothing has been done to date" to examine Sir Julian's role, expressing hope that the inquiry will address this gap.