Good morning and welcome to your Morning Briefing for Friday 12 September 2025. To get this in your inbox every morning click here.
UK economic growth stalls in July
UK GDP flatlined in July, with zero growth recorded after a 0.4% expansion in June, according to the Office for National Statistics (ONS).
Over the three months to the end of July, the economy grew by just 0.2% compared with the previous quarter.
The ONS said the service sector remained a bright spot, supported by healthcare, computer programming and office support services, but this was offset by weakness in manufacturing.
Tavistock buys into Lifetime to boost wellbeing push
Tavistock Investments has acquired a 76.59% stake in financial management and wellbeing firm Lifetime, in a deal aimed at widening access to affordable financial advice.
Lifetime chief executive Ian Dickinson remains the only other shareholder, retaining a significant stake.
The acquisition, subject to FCA approval, is described as both a partial sale and a strategic partnership intended to accelerate the firm’s growth.
It’s a US power play, but markets are doing well
It’s a mile a minute lately, isn’t it? Not a day goes by without something fairly substantial dropping on markets. Yet, in the main, investors are shrugging them off, writes David Coombs, head of multi-asset investments at Rathbones.
The US has knocked out some more trade agreements and hit other nations with punitive tariffs to bring them to the table.
Well – as we’ve mentioned before – these aren’t trade agreements in the traditional, or probably even legal, sense.
Quote Of The Day
A spell of pleasant summer weather may not be the most reliable foundation for an economic recovery, but today’s disappointing July GDP growth data could have been worse without it
– Jeremy Batstone-Carr, European strategist at Raymond James, comments on the latest GDP figures from the Office for National Statistics
Stat Attack
Insurers are expecting more attractive investment opportunities across the board this year compared to last year but are concerned that risk levels will increase, a new global study from Ortec Finance shows. Key findings:
83%
of insurers and their investment managers say the attractiveness of investment opportunities in fixed income will increase this year compared with last year, including
46%
expecting a substantial improvement. In private markets,
80%
believe investment opportunities will be more attractive this year compared with last year, including
17%
who anticipate a dramatic improvement. In equity markets,
74%
expect an improvement although only
3%
think it will be substantial. This outlook is reflected in expectations for equity risk in the insurance portfolios they manage, with
75%
expecting an increase over the next 12 months. That includes
16%
expecting a dramatic rise, while
23%
foresee no change and just
2%
expect a decrease. When it comes to credit risk, nearly half
45%
expect a dramatic increase in their portfolios, with another
45%
anticipating a slight rise over the 12 months. None of the respondents expect credit risk to decline, with
10%
believing it will remain unchanged.
Source: Ortec Finance
In Other News
Professional services firms across the UK are bracing for another difficult professional indemnity insurance (PII) renewal season, as high premiums and rising costs put pressure on cash flow.
Law and accountancy practices have already faced higher expenses in 2025 due to wage growth, fiscal policy changes and energy prices. Now PII costs are coming into focus again.
For law firms, premiums typically account for 3% to 9% of annual turnover, with 5% most common. With the Solicitors Regulation Authority mandating cover, many are preparing for tough renewal talks.
Solicitors also face the highest share of litigated claims, representing 56% of nearly 800 cases filed since 2020.
Accountancy firms, required by membership bodies such as ICAEW, ACCA and AAT to hold PII, also face some of the highest-value claims of any profession.
Just Group has completed a £23m pension buy-in with the Welcome Break Pension Plan, covering 348 members of the scheme sponsored by the UK motorway services operator.
The deal, completed in June 2025, insures the benefits of 137 deferred members and 211 pensioners.
Mercer acted as consultant and lead broker, with trustee advice from Squire Patton Boggs. PwC and CMS advised the sponsor.
Just Group deal manager Alma Goyanes-Payne said the transaction was supported by the firm’s Beacon service, allowing the scheme to act quickly.
She added that demand across the insurance de-risking market “remains strong”.
Business rates rise would put hundreds of big shops at risk (The Guardian)
Barclays boss warns UK government on wages and bank taxes (Financial Times)
OpenAI, Nvidia CEOs to announce UK Data Centre Investments (Bloomberg)
Did You See?
Soft pears or crunchy pears is a surprisingly emotive debate in our house, writes Andrew Martin, chief commercial officer at Dunstan Thomas.
My wife enjoys the apple-like crunch of what I dismiss as an underripe disappointment. I prefer to wait for the perfect softness – though a recent thunderstorm taught me the risk of patience, when the pear I had my eye on hit the ground and was swiftly snaffled by squirrels and birds.
Retirement income planning poses a similar challenge: wait too long, and what looked like a better option may be gone before you can enjoy it.
Delaying annuity purchase sounds clever on paper: drawdown first, annuity later, maybe not until your 80s. It’s an idea doing the rounds again, often backed by slick charts suggesting you’ll get the best of both worlds. But the reality is messier – and the risks are real.
