The Ernst & Young ITEM Club said �the persistence of high inflation could undermine the Monetary Policy Committee's credibility� and �tie [its] hands�.

Yahoo Inc. has agreed to pay $1.1 billion for Tumblr, a six-year-old company with more than 100 million users but very little revenue, a deal that highlights the shifting balance of power in the technology business.

Marks and Spencer was dragged into the intensifying corporate tax avoidance row on Sunday night with allegations that its online sales operation was operated in a similar way to that of Amazon to minimise payments to the UK Treasury.

Prime Minister David Cameron wrote to the Cayman Islands and nine other U.K. territories to request action to tackle company tax evasion as Britain prepares to host the Group of Eight summit next month.

A UK Treasury analysis paper will say an independent Scotland could have "significant difficulties" providing protection for savers.

Helped by the warmer weather, footfall on the high-street rose 3.4pc year-on-year in April, the biggest increase since the run-up to Chrismtas in 2011.

LONDON�Roger Carr, the chairman of U.K. gas utility Centrica PLC, is the front-runner to replace Dick Olver as chairman of Britain's defense contractor BAE Systems PLC, a person familiar with the matter said Sunday.

Has the time come to halt the demonisation of bankers? Outgoing Bank of England governor Sir Mervyn King thinks so. His point is not simply that it has gone on long enough and that it is time to move on.

U.K. home sellers raised asking prices for a fifth consecutive month, pushing values to a record and giving the market its best start to a year since 2004.

A postal union leader has threatened a summer of industrial disruption and campaigning in a late attempt to halt the privatisation of Royal Mail.