Why does consumer spending increase

Tui cancels quarter of flights from Manchester Airport FTSE 100 adds 0.1pc S&P 500 little changed, Nasdaq up 0.5pc Matthew Lynn: Businesses must go on strike over Sunak’s disgraceful tax raid Sign up here for our daily business briefing newsletter ​ M ortgage lending fell by more than a third in April, stoking fears of a slowdown in house prices. Total lending for house purchases slumped to £4.1bn, from £6.4bn in March, as the impact of higher interest rates kicked in. Data from the Bank of England showed mortgage approvals fell to around 66,000 over the month, compared with 70,700 in March. The number of loans granted was well beneath economists’ expectations, and below the average for the half-decade before the pandemic. 6:07PM Wrapping up T hat's all from us today, thank you for following! Before you go, have a look at the latest stories from our business reporters: Bank of England to take over collapsed … [Read more...] about Housing market slump feared as mortgage lending plunges by a third

T he American owners of Boots may revive plans for stock market float next year after scrapping the sale of Britain’s biggest chemist to a Wall Street buyout fund and Indian billionaire Mukesh Ambani. Walgreens, which merged with Boots in 2014 in a deal worth £9bn, said none of the offers for the “adequately reflects the high potential value of Boots and No7 Beauty Company”. The Illinois-headquartered company said bidders had struggled to arrange bank loans to buy Boots after financial markets “suffered unexpected and dramatic change”. Private equity fund Apollo and Mr Ambani had been in pole position to acquire Boots after Walgreens chairman Stefano Pessina put the business up for sale in January. But a £5bn approach — considerably lower than the £7bn Mr Pessina is said to have wanted — fell through. Ornella Barra, Boots operating chief, wrote to the company’s 56,000 staff saying she was “happy to confirm that it has been decided that Boots and No7 Beauty Company will … [Read more...] about Boots stock market float back on the table as £5bn sale collapses

Fossil fuel power plants are set to be temporarily freed from planned checks on their emissions in a scramble to prevent blackouts as Britain turns back to coal . Coal and gas stations providing back-up supply in 2023 will not have to get reports on their emissions signed off by an independent expert under changes being proposed by Whitehall officials. There is growing concern over energy security amid fears Russia will shut off gas supplies to Europe in retaliation for sanctions imposed in response to its war on Ukraine. The gradual retirement of the UK’s nuclear fleet in coming years as well as problems with France’s nuclear stations are adding to the pressure in energy markets. Coal-fired plants have already been asked to stay open this winter , while gas quality rules could also be relaxed to allow more from the North Sea into Britain’s pipes. Under rules from 2019, fossil fuel facilities bidding to take part in National Grid ESO’s market for back-up power supply … [Read more...] about Net zero red tape to be ditched as Britain returns to coal

Outgoing UK National Lottery operator Camelot has revealed falling sales because players have 'tightened their belts' amid the cost of living crisis. Camelot, which recently launched legal action against the Gambling Commission after losing the National Lottery licence to a rival, saw sales drop by 3% - a loss of £283.2 million. The company made £8.1 billion in the last year up to March 31. Camelot blamed the fall in sales on a 7% drop in sales of National Lottery instant win games - down by £240 million to £3.4 billion. The group also blamed the end of Covid restrictions, which it said meant there was 'greater competition for people's attention and spend.' It added that 'growing economic uncertainty' and rising costs held back sales, while scratch card sales remained below pre-pandemic levels. Joe Thwaite, 49, and Jess Thwaite, 46, from Gloucestershire, won a £184 million EuroMillions jackpot in May. National Lottery operator Camelot said fewer rollover jackpots … [Read more...] about National Lottery ticket sales drop by £283million as players tighten their belts in cost-of-living crisis, Camelot announces

Instead of looking forward to the great British getaway, families up and down the country are starting to fear the prospect of jetting off abroad this summer. Far from a relaxing break, parents are now facing the prospect of entertaining children as families wait in long queues that snake out of airport terminal buildings hoping that they will make the gate in time. And they might end up being the lucky ones. Plenty of holidaymakers may not make it abroad at all, as airlines continue to cancel flights every day with alarming regularity. Whether it be standing in line waiting to get away, or stuck at home on the sofa because of a cancellation, Britons will rightly ask what on earth has gone wrong this summer? Why is it that after two barren years during the pandemic, airlines and airports can not get their act together? Unsurprisingly, there is not one simple explanation. Aviation bosses have been grappling with a cocktail of problems that includes staff shortages, … [Read more...] about How the great British getaway became a holiday from hell

SIR – The Prime Minister, the Chancellor of the Exchequer and the Governor of the Bank of England are being taught by the unions what happens when you over-tax people, permit inflation to rise well above wage increases and fail to show any evidence of the advantages of an economy unhampered by European bureaucracy and red tape. Chaos. Alison Rhodes SIR – No trade union with any effective bargaining power would accept a 3 per cent pay rise (with strings attached) when the Bank of England predicts that consumer prices will soon rise by 11 per cent. No responsible government would approve of a pay rise that would lead to even higher inflation. A solution, proposed by Milton Friedman in 1974, would be an agreement to compensate for inflation retrospectively, in other words to agree that by this time next year there will have been a real-terms rise. If that were widely implemented, the forecast of 11 per cent might prove pessimistic. Frank Fishwick SIR – To receive … [Read more...] about Letters: The chaos of strikes thrives when taxes rise and inflation undercuts incomes

It’s clear by now that the Bank of England drastically missed the boat on inflation and failed to head off the soaring prices we’ve seen this year. But the picture is now getting murkier. Economic activity is slowing. House prices have stopped rising. The FTSE 250 is down by 22 per cent so far this year. All of this has policymakers speculating that, as far as inflation is concerned, the worst is over and we now need to worry instead about recession. The Bank of England is still holding fast to its belief that double-digit inflation is a temporary phenomenon and is raising rates cautiously, with an eye on slowing growth. Government ministers are taking this as carte blanche to argue that inflation will go away soon – and even seem to think that this argument will sway trade unions intent on securing huge pay rises. There is a conspicuous silence where there should be a debate about what to do if the Bank is wrong again. The most obvious risk is that inflation is already … [Read more...] about Britain is in a far more terrible state than anyone is prepared to contemplate