Spending watchdog says state-owned bank exposed taxpayers to ‘unacceptable risk’ as cost spiral to £3bn

An attempt to modernise the state-owned savings bank NS&I has been a “full-spectrum disaster”, parliament’s spending watchdog has concluded in a damning report.

NS&I (National Savings & Investments), which runs a popular monthly cash-prize draw for premium bond holders, has been criticised by a committee of MPs for exposing the taxpayer to “unacceptable risk” owing to the spiralling costs of its £3bn modernisation programme.

GDP in last three months of 2025 also hit by weak consumer spending, with little momentum going into this year

• Analysis: UK economy limps along at 0.1% growth – but there are reasons for optimism in 2026

The UK economy expanded by only 0.1% in the final three months of last year, according to official data, as falling business investment and weak consumer spending led to little momentum going into 2026.

Figures from the Office for National Statistics (ONS) show that the economy grew at the same rate of 0.1% as the previous three months. This was less than a 0.2% rise that economists had been expecting.