Inflation how to control it

Councils will be forced to ditch spending plans and draw up emergency cuts to public services after the highest inflation in 40 years sparks an £800m surge in costs. The Local Government Association (LGA) warned that inflation will force local leaders to make cuts to frontline services and poses a “serious risk to the future financial viability” of some councils. James Jamieson, chair of the body representing local authorities, said funding for social care, bin collections and support for poor households could be at risk as councils scramble to meet their legal requirement to balance the books. Council budgets were signed off earlier this year but soaring inflation has eroded funding for public services in real terms. Analysis by the LGA found surging prices will increase council costs by £800m this year. It estimates that inflation, higher energy bills and increases to the National Living Wage will combine to add an extra £2.4bn in costs this year, climbing to a … [Read more...] about Councils forced to ‘rip up financial plans’ as inflation adds £800m to costs

Staff at the Bank of England are to demand a major pay rise in the face of surging inflation, despite pleas for restraint on wages from their own Governor. The trade union Unite is consulting staff on Threadneedle Street this summer about securing a “decent pay rise” to cushion the blow of soaring living costs. Staff received just a 1.5pc increase this year, far below the 9.1pc rate of inflation reached in May. Mutiny at the Bank of England over pay would prove deeply embarrassing for Andrew Bailey, the Governor, after he urged UK workers not to demand large wage increases in remarks criticised by unions and politicians. The Bank’s policymakers fear that a surge in pay packets will fuel a wage-price spiral that prolongs painfully high inflation. Unite, which has 600 members at the Bank, said this year’s pay deal was agreed “before inflation started to soar” but that it will demand a bigger boost to help with the living costs crunch. Steve O’Donnell, Unite regional officer, … [Read more...] about Andrew Bailey faces Bank of England mutiny over staff pay rise

The Bank of England Governor has warned that Britain faces a faster and steeper downturn than other rich countries as households are battered by a “very large national real income shock”. Andrew Bailey said the UK economy is at a “turning point” after Covid, the energy price surge and the war in Ukraine combined to trigger spiralling inflation and the worst drop in disposable incomes for decades. Opening the door to a bigger hike in interest rates to tame price pressures, he vowed to act “more forcefully” if painfully high inflation - forecast to hit 11pc in October - persists. Speaking at a conference in Portugal, Mr Bailey said: “The UK economy is probably weakening rather earlier and somewhat more than others . I think that’s been somewhat evident now for a few months.” It came as a slew of retail industry chiefs warned of a looming plunge in consumer spending in a survey shared with The Telegraph. Stefano Pessina, the head of Boots owner Walgreens Boots Alliance, has … [Read more...] about Britain suffering faster and steeper downturn than Europe, warns Andrew Bailey

Last July, President Joe Biden made a series of public remarks that have come back to haunt him as things have turned out to be the opposite of what he predicted. Those statements marked the beginning of a tumbling approval rating, which, a year later, has yet to bounce back. Biden's time in the White House started off promising after the Democrat received more than 81 million votes—the most ever cast for a presidential candidate—and he entered office with a relatively high approval rating. Biden's approval rating has since sunk below that of former President Donald Trump 's at the same point in his term, and members of his own party are losing confidence in his ability to lead on key issues. Biden's rating remained steady at about the 52 percent mark until mid-June 2021. What followed were three crises facing America and what seemed to be less-than-accurate predictions from the Biden administration on the Omicron COVID surge, the U.S. withdrawal from Afghanistan and soaring … [Read more...] about Biden faces 3 awkward anniversaries of things he shouldn’t have said

Britain's biggest pubs operator is exploring a sale of a 75-strong portfolio that could command a price-tag of up to £100m. Sky News has learnt that Stonegate Group, which owns the Slug & Lettuce and Be At One brands, has hired advisers to gauge potential buyers' appetite for the pubs, which are located mainly in London and south-east England. City sources said that Eastdil, the real estate investment bank, and Sapient Corporate Finance had been engaged to work on the deal. Advertisement The sale process comes as the hospitality industry grapples with soaring inflation and labour shortages across the sector, with industry bosses warning of huge challenges in the months ahead. More from Business Former Man City executive Tom Glick to take top Chelsea job Klarna investors asked to commit to funding as value slips to $10bn Premier League takes gamble on betting company compromise The portfolio of Free-of-Tie pubs … [Read more...] about Pubs giant Stonegate calls time on 75-strong portfolio

Households are suffering from the biggest cut in living standards since the 1950s amid escalating food and fuel bills alongside rising taxes and interest rates. Inflation is at 9%, its highest level in 40 years, driven by spiralling energy and food prices. The average UK household’s annual energy bill rose from £1,277 to £1,971 in April (equal to an extra £60 a month), while food prices are up around 6% on a year ago with the average UK household now spending an extra £23 per month. Meanwhile, the Bank Of England raised interest rates from 1% to 1.25%, the fifth consecutive rise, last week. And around nine in ten households have felt the impact of rising prices, according to official data from the Office for National Statistics (ONS). Here, we speak to three households about how they are coping with the ever-worsening cost of living crisis… ‘The government needs to give people more financial support’ Su Morgan, 42, runs a coffee subscription service called Dog … [Read more...] about The families on the frontline of the cost of living crisis: ‘It’s not fair that people are struggling so much’

Last July, a federal judge in West Virginia heard closing arguments in the first lawsuit to go to trial over the U.S. opioid addiction epidemic. With an avalanche of documents from the three-month trial, Judge David Faber didn’t indicate when he would make a ruling on the multibillion-dollar lawsuit filed by Cabell County and the city of Huntington against three major drug distributors, and his decision wasn't expected right away. Now, nearly a year later, there’s still no verdict, and a landmark case remains a book without a final chapter — even as the full dimensions of addiction, desperation, broken families and death continue to deepen the scope of the tragedy unfolding in one corner of West Virginia. “It is pretty unusual, but maybe this is an unusual trial,” said Carl Tobias, a University of Richmond law professor. Some 81 million pain pills were sent to Cabell County from 2006 to 2014. The lawsuit accused distributors AmerisourceBergen Drug Co., Cardinal … [Read more...] about WVa opioid trial verdict still pending nearly a year later

Benefits and state pension to see largest increase in 32 years Tories are now party of big spending, says Sunak How the PM brought in top economists to persuade Sunak Camilla Tominey: True-blue Tories are shuddering Fraser Nelson: Tax grabs have put Britain on road to recession Russia-Ukraine latest: PM calls for new weapons for Ukraine A Tory MP has quit his Government job and criticised the “toxic culture” in No 10 as Boris Johnson’s premiership continues to be rocked by the partygate scandal. Paul Holmes, the Conservative MP for Eastleigh, said in a statement published on his website that he had resigned as Parliamentary Private Secretary at the Home Office. A PPS is the lowest rung on the ministerial ladder but the resignation is likely to prompt alarm bells in Downing Street as the Government struggles to move on following the publication of the Sue Gray report on Wednesday. Mr Holmes said the report had "clearly showed a culture in No 10 … [Read more...] about Tory MP Paul Holmes quits Government job over ‘toxic culture’ at No 10

The Biden presidency is a disappointment to Americans. That goes for people who voted for him—who thought he'd do a better job—and people who, even as they voted against him, did not believe he could make as much of a hash of things as he has. The list of problems is long and growing longer. More COVID-19 cases than there were under Donald Trump . Inflation like we haven't seen since the Carter years. Rapidly rising interest rates. Shortages. The debacle in Afghanistan. War in Ukraine. It's no wonder a growing majority of Americans say the country is headed in the wrong direction. According to a new Associated Press-NORC survey , 85 percent of American adults—including more than 7 in 10 Democrats—say the country is not on the right track. Almost two-thirds—60 percent—blame the president for that, with just 39 percent of those participating in the survey saying they approve of his overall presidential leadership. As if that were not bad enough, 69 percent of those surveyed, … [Read more...] about What kind of president do Republicans want? | Opinion

Holidays across Europe could be thrown into chaos this summer due to mass strikes and staff shortages across the continent. British holidaymakers have faced a nightmare in recent weeks due to delays, cancellations and luggage going missing at the UK’s busiest airports. More problems are expected after British Airways workers at Heathrow voted to strike in a dispute over pay. Around 700 workers will walk out between July and September after the airline failed to restore a 10% pay cut imposed during the pandemic. However, it’s not just the UK facing these problems. Workers in France, Spain, Italy, Germany and Scandinavia have voted to or are discussing strike action over pay and conditions. Staff shortages have also caused delays and baggage problems in other popular destinations like Bucharest and Portugal. Thousands of British passengers are set to be caught up in the disruption, which affects major airlines like easyJet and Ryanair. Easyjet workers in Spain … [Read more...] about Summer holidays under threat from airline strikes across Europe