Two of Britain's largest energy suppliers increased their household power and gas prices on Thursday, leaving just two big utilities resisting pressure to hike prices for the second time this year.

Excess regulation is increasing the risk of final-salary pension schemes being closed or bought out, the Confederation of British Industry said on Wednesday, joining growing criticism of new rules facing the industry.

Inflation shot up in July to more than twice the central bank's target, dousing expectations of interest rate cuts any time soon despite new evidence of sliding house prices and waning consumer demand.

British inflation probably rose to over 4 percent in July, against the Bank of England's 2 percent target, but the bank is unlikely to react by raising interest rates soon as the economy stalls.

A growing number of private tenants are falling behind on their rent, potentially damaging the ability of landlords to pay creditors, insurance group AXA said on Saturday.

Britons pay up to 20 percent more for a litre of petrol than some of their major European counterparts, according to a survey.

Consumer sentiment dived to a record low in July, a survey showed on Wednesday, as fears grew about the risks of a recession and rising living costs.

British manufacturing activity fell for a third straight month in July and at the sharpest rate in almost a decade as firms struggled with record price pressures and a slump in orders, a survey showed on Friday.

Still reeling from the gas price rises? Snap out of it and fight back fast or you could lose hundreds of pounds, say industry watchers.

The Bank of England released figures on Tuesday showing that June saw a new low in mortgage lending.

Net sales of retail funds and tax-advantaged Individual Savings Accounts (ISAs) fell to their lowest since January last month, data on Monday showed, as investor confidence wilted in the face of falling stock markets.

HBOS, Britain's biggest mortgage lender, said it is cutting rates on some of its home loans, the third time it has reduced borrowing costs this month.

A rapidly slowing economy is at significant risk of falling into recession and will force the Bank of England to cut interest rates next year even in the face of high inflation, a Reuters poll showed.

Mortgage approvals for house purchases dived by more than two thirds in June from a year ago to hit a fresh record low of 21,118, the British Bankers' Association said on Wednesday.

The long-term unemployed could be forced to work for their benefit payments under plans for the biggest reform of the welfare system in 60 years, the government said on Monday.

Gas prices are going to be more strongly influenced by global oil markets for the foreseeable future and householders will have to get used to spending much more on energy unless the surge in oil costs is reversed, Eclipse Energy Group said.

The Council of Mortgage Lenders (CML) said on Friday that gross mortgage lending dropped three per cent in June to around £23.8 billion. The figure is 32 per cent lower than in June 2007.

A weaker currency and rising household bills kept more Britons at home this spring, while those that ventured abroad kept to tighter budgets.

Gas prices are going to be more strongly influenced by global oil markets for the foreseeable future and householders will have to get used to spending much more on energy unless the surge in oil costs is reversed, Eclipse Energy Group said.