Published 12 May comments Comments Share close Share page Copy link About sharing The risk of a recession has risen, analysts have warned, after the economy shrank during March just as the UK had recovered from the pandemic. Higher prices are "beginning to bite", the UK statistics body said , with people spending less and cutting down on car journeys due to high fuel costs. The impact of higher energy bills in April has also yet to be seen. The economy grew by 0.8% over the first three months of the year, but in March it shrank by 0.1% as people cut back. The main boost to the economy came in January, as hospitality and travel industries recovered from coronavirus pandemic restrictions. However, that came before the war in Ukraine and before households began to feel the pinch of higher prices. Paul Dales, chief UK economist at Capital Economics, said the … [Read more...] about Recession fears grow as rising prices hit spending
Cases rising in uk
UK inflation hits 9.1% in new 40-year high as cost of living crisis deepens
UK inflation has climbed to 9.1% as the cost of living crisis continues to squeeze household finances. The consumer prices index (CPI) measure of inflation rose in the 12 months to May to its highest level sinceMarch 1982. CPI had already hit a 40-year high when it reached 9% the previous month , according to latest Office for National Statistics (ONS) data. The latest figures mean inflation is almost five times higher than the Bank of England (BoE) target of 2%. BoE economists are expecting UK inflation to hit 11% by the end of this year. It had previously estimated that the rate of CPI would hit 10%. Are you worried about rising prices? Let us know: [email protected] How inflation has changed over the years The ONS said food and drink prices were the biggest contributor of inflation creeping higher in the 12 months to May. Households are also being hit by sky-high energy costs, after the Ofgem price cap was raised by 54% in April, … [Read more...] about UK inflation hits 9.1% in new 40-year high as cost of living crisis deepens
Most only have £500 of savings says Lloyds boss
By Simon Jack Published 2 hours ago comments Comments Share close Share page Copy link About sharing Most Lloyds Bank customers have less than £500 of savings in their accounts, its chief executive said. Charlie Nunn said Lloyds had seen customers seeking debt advice jump up by a third in just the first six months of this year. Credit card spending on travel was up 300% on last year, but the majority of Lloyd's customers were worried about the cost of living, he said. It was possible for the UK to avoid the recession many are predicting, he said. It comes as UK households struggle with the soaring cost of food, energy bills and fuel as inflation rises at the fastest rate in 40 years. The head of the UK's biggest high street bank told the BBC: "80% of individuals and UK customers and families have less than £500 pounds worth of savings in their current … [Read more...] about Most only have £500 of savings says Lloyds boss
Pound slides to two-year low against the dollar
By Tom Espiner Published 2 hours ago comments Comments Share close Share page Copy link About sharing The pound has fallen to a two-year low against the dollar reflecting traders' increasing concerns about recession around the world as energy prices continue to soar. But sterling is also weak because markets are worried about future UK economic growth, analysts said. Sterling could fall even further after predictions of economic stagnation and as inflation rises, they added. London shares regained some ground on Wednesday following Tuesday's falls. The resignation of two senior government ministers on Tuesday evening, including former Chancellor Rishi Sunak, was not a significant factor in the pound's fall, Rabobank head currency strategist Jane Foley told the BBC Radio 4 Today programme. UK household energy bills to hit £3,000 per year Sunak … [Read more...] about Pound slides to two-year low against the dollar
Four ways Nadhim Zahawi may try to boost the economy
Published 7 minutes ago Share close Share page Copy link About sharing Following the shock resignation of former Chancellor Rishi Sunak, his replacement Nadhim Zahawi has said he and Prime Minister Boris Johnson want to "rebuild the economy" and get soaring inflation under control. Mr Zahawi said "nothing is off the table" in terms of cutting taxes. What are some of the options open to the new Chancellor to make good on those plans? 1. Cut VAT Mr Zahawi has said he wants to do two things: cut taxes and "bear down" on inflation. Those are not usually happy bedfellows. Cutting taxes puts more money into the economy, which drives prices up - so how can he walk this line? A temporary cut in VAT - the tax paid when buying goods and services - from 20% to 17.5%, say, would lower the price of goods and services in the basket used to calculate inflation - taxes would get cut, and … [Read more...] about Four ways Nadhim Zahawi may try to boost the economy
All the Tories brutally turning against Boris Johnson’s leadership as MPs ‘read last rites’
Shameless Boris Johnson has told friends he will "smash on" despite a string of resignations. The Prime Minister is said to have declared "I'm not going anywhere” despite Rishi Sunak , Sajid Javid and his Solicitor General all resigning last night. But MPs have other ideas - with a string of Tories from across the spectrum reading him the “last rites”. While the Cabinet are now mostly firm, the PM is being rocked by a string of junior resignations from government. Between 6pm on Tuesday and 2pm on Wednesday 21 MPs resigned from the government - nine ministers, nine parliamentary private secretaries, two trade envoys and one Tory vice chair. Back bench MPs across the spectrum, from moderate ex-ministers Chris Skidmore and Nick Gibb to culture war Red Wallers Jonathan Gullis, Tom Hunt and Lee Anderson, have charged over the top. For so many MPs, the revelation the PM knew about claims against MP Chris Pincher, then promoted him repeatedly, then “forgot” he’d been told, is … [Read more...] about All the Tories brutally turning against Boris Johnson’s leadership as MPs ‘read last rites’
Household energy bills to hit £3,000 per year
By Faisal Islam Published 6 hours ago comments Comments Share close Share page Copy link About sharing All types of household energy bill are now heading above £3,000 a year this winter, say energy industry sources. The rise is 7% higher than the predicted prices on which the government's recently announced cost of living support package was based. The government said it didn't recognise the figures, but added it and Ofgem "keep a close watch on energy prices". National Energy Action said there were "few signs of energy prices becoming affordable this winter". The bleak prediction comes as households are already struggling with rising food and fuel prices. Every UK household is to get an energy bill discount of £400 this October, whilst poorest households will also get a payment of £650. When will households get the £400 energy grant? … [Read more...] about Household energy bills to hit £3,000 per year
Free speech row over new hate crime bill in Scotland
Published 25 July 2020 Share close Share page Copy link About sharing A public consultation has closed on changes to Scotland's hate crime laws, which opponents say could have a damaging effect on free speech. Ministers argue the bill offers great protection for victims at a time when the number of cases is on the rise. Scottish Labour's James Kelly said he had 'serious reservations', especially over the offence of stirring up hatred. But Scotland's justice secretary said people's freedom of expression was not under attack. As you are reading this news story on the BBC news website I am going to hazard a guess that you probably believe that freedom of expression is a fundamental human right. And that you think without the right to free speech many other freedoms may be threatened? You would probably also agree that it is wrong actively attempt to stir up hatred against … [Read more...] about Free speech row over new hate crime bill in Scotland
Sydney floods aftermath: ‘Everybody is traumatised’
By Shaimaa Khalil Published 20 hours ago Share close Share page Copy link About sharing In the town of Windsor, north-west of Sydney, some roads have turned into small rivers. And the only way to get around is by boat. Mathew Benson has been rowing up and down one of the streets in a neighbourhood in the suburb of Australia's largest city. "I'm bringing food and water to people over there," he tells me, pointing to the other side. "We're just watching and waiting." While some cars are barely visible, others are completely submerged. Many residents in the area have had to leave their homes and others are stranded as roads have been cut off. Thousands have been left without power. Another local, Sam, points to her house just across the submerged road. "We don't know about the second floor. But the first floor is definitely flooded," she tells me in tears. This is the … [Read more...] about Sydney floods aftermath: ‘Everybody is traumatised’
Cost of living: Disability charity says carers are skipping meals
Published 2 hours ago Share close Share page Copy link About sharing A national charity supporting children with disabilities says more than 90% of the families it helps are struggling to pay bills due to rising living costs. Half of carers looking after disabled youngsters have skipped meals in the past 12 months to cut back on spending, a survey by Family Fund suggests. A West Yorkshire family supported by the charity say they are "scared" they won't be able to afford winter heating. The government said it was helping families with disabled children. York-based Family Fund said many families with seriously ill or disabled children faced higher energy bills due to the need to power home medical equipment. Frequent GP or hospital appointments mean regular car journeys for many, including the family of 11-year-old Charlie, from Bingley in West Yorkshire. "We can't go on as … [Read more...] about Cost of living: Disability charity says carers are skipping meals