Is the UK really facing a second winter of discontent?

Comparisons with 1979 are misleading – strikes over pay now are smaller in scale and focus, and stoked by inflation

Britain is facing a winter of strikes, as industrial action on the railways spreads to the health service and other key sectors of the economy. Such is the wave of discontent that more than 1m working days could be lost to disputes in December, the most since 1989, during Margaret Thatcher’s final years in power.

With inflation at the highest rate in 41 years amid the cost of living crisis, it’s not difficult to see why workers are pushing for better pay. Coming after the worst decade for average wage growth since the Napoleonic wars, including deep real-terms pay cuts for many in the public sector, it’s even less surprising still.

Continue reading...

RBA interest rates: Reserve Bank raises official cash rate to 3.1%, the eighth increase in as many months

More pain for borrowers with interest rates to rise again after central bank lifts cash rate 25 basis points to the highest level since the end of 2012

Hopes for a “Santa pause” on interest rates have been dashed with the Reserve Bank lifting borrowing costs for a record eighth time in as many months at its last meeting for the year.

The RBA on Tuesday raised its cash rate 25 basis points. Most economists had expected the quarter point increase to 3.1%, the highest level since the end of 2012.

Continue reading...

Timetable of trouble: the wave of strikes set to hit the Tories this winter

Rampant inflation and government policy has brought matters to a head: so where is disruption going to hit and what are the unions asking for?

Strikes are not something most managers think about. The oft-mentioned “winter of discontent” and year-long miners’ strike were features of the late 1970s and mid-1980s. Since then, industrial action in the private and public sectors has fallen to a level so low that academics have given up studying it.

When pay talks began a year ago for the current financial year, inflation was rising, but the Bank of England was reasonably certain it would be temporary. Union leaders prepared for a post-pandemic battle over pay, but not one that would probably end in strike action.

Continue reading...

UK house prices fall at fastest pace since 2020 amid fallout from mini-budget

Nationwide warns inflation and rising interest rates will weigh down housing market

UK house prices have fallen at their fastest rate for two and a half years as the fallout from Liz Truss’s disastrous mini-budget put buyers off according to Nationwide, which warned inflation and rising interest rates would weigh on the market in the coming months.

The price of an average home dropped 1.4% to £263,788 in November, according to the lender’s house price index, accelerating a slowdown that saw prices fall 0.9% in October. It was the third monthly fall in a row, and the biggest drop since June 2020.

Continue reading...

Amazon’s UK tax bill could rise by £29m amid business rates overhaul

Hikes set to hit warehouses and online retailers hardest in 2023 as UK government addresses ‘brick v clicks’ tax gap

Amazon’s UK tax bill jump could jump by £29m next year as a result of changes to business rates that are scheduled to hit warehouses and online retailers the hardest.

The online retailer is likely to be among firms facing big tax rises following the chancellor’s autumn statement, according to analysis from the real estate adviser Altus Group.

Continue reading...

Keir Starmer walks fine line in shifting Labour’s stance on immigration

Party leader is reluctant to hint he will allow thousands into UK but wants to avoid upsetting his pro-migration MPs

In his speech to a hall packed with business leaders, Keir Starmer came with the message that Labour had changed, hoping to sweep away the years of antipathy between his party under its previous leadership and growth-hungry executives.

But another change in position was clear to see: on immigration, Starmer held up the recruitment of overseas workers as a sticking plaster solution to the problem of significant worker shortages in the UK.

Continue reading...

Immigration is still the nettle preventing Tory detente with business

Rishi Sunak’s visit to CBI conference found old allies keen to mend fences, but impeded by hard politics of immigration

Amid the steady grey Birmingham drizzle, Britain’s leading business lobby group tried to walk a careful path on immigration.

Members of the Confederation of British Industry (CBI), present in greater numbers than in recent years at its annual conference, have been clamouring for more flexibility on hiring foreign workers, as a tight labour market wreaks havoc on their businesses and drives up wages.

Continue reading...

Luxury goods boom in Britain as the young, rich and mortgage-free buck the recession

Rich kids of Insta use strong dollar to fuel sales of high-end brands such as Burberry, Louis Vuitton and Gucci

They’re young, rich and mortgage-free, and the scions of the 1% are having a roaring twenties.

Despite the economic gloom currently shrouding the UK and many other western countries, sales of luxury brands have been booming and growing numbers of buyers are young adults.

Continue reading...

How the autumn statement brought back the ‘squeezed middle’

IFS and Resolution Foundation say Jeremy Hunt’s policies will shock middle England, with higher taxes here to stay


Traditionally elections in Britain are decided by swing voters in a relatively small number of seats. Parties go to considerable lengths to tailor their policies to the perceived demands of those getting by on average incomes. Pollsters have even coined names for the archetypal electors that need to be wooed: Basildon man and Worcester woman.

So it will be of some concern to government strategists that the post-autumn statement analysis by thinktanks focused heavily on how the measures announced by Jeremy Hunt had an effect on those not particularly poor but not especially rich either. Both the Resolution Foundation and the Institute for Fiscal Studies highlighted the return of the “squeezed middle”.

Continue reading...

Autumn statement 2022 live: OBR says living standards to fall 7% as Hunt confirms millions to pay more taxes

Fiscal watchdog’s figures show eight years of growth wiped out; chancellor announces higher taxes and some cost of living support

In the Commons Rishi Sunak is making a statement about the G20 summit. These statements are normally routine, and just summarise what was said or decided at the meeting. They don’t normally include fresh announcements.

Sunak started by talking about the missile incident in Poland. He said Russia attacked Ukraine with missiles on the day that he “confronted the Russian foreign minister across the G20 summit table”. He said the blame for the missile landing in Poland lay with Russia. Ukraine could not be blamed for defending itself, he said.

During the bombardment of Ukraine on Tuesday an explosion took place in eastern Poland. The investigation into this incident is ongoing and it has our full support.

As we’ve heard the Polish and American presidents say, it is possible the explosion was caused by Ukrainian munition which was deployed in self-defence.

In just a few moments the chancellor will build on these international foundations when he sets out the autumn statement, putting our economy back on to a positive trajectory and restoring our fiscal sustainability.

Continue reading...

Labour lambasts autumn statement but Tory dissent is muted

Shadow chancellor attacks ‘crisis made in Downing Street’ but there are few signs of anger on Tory benches

Jeremy Hunt has seemingly escaped public pushback from fellow Conservative MPs over his tax-raising autumn statement, but he was lambasted by Labour for trying to blame global factors for a crisis sparked by Liz Truss’s mini-budget.

While there had been mutterings of dissent in advance at the idea of Hunt trashing Truss’s embrace of tax cuts, in the lengthy Commons debate after his statement there were only a few fairly muted quibbles.

Continue reading...

Jeremy Hunt: everyone will be paying more tax after autumn statement

Chancellor also warns of severe cuts to services as he prepares for his biggest test in his new role

Everyone will be paying “a bit more tax” after the autumn budget, the chancellor has said, as he asked everyone to make sacrifices.

Warning of severe cuts to public services, Jeremy Hunt said there would be “very difficult decisions” made but claimed his plan would show the way through “difficult times”.

Continue reading...

Truss? Brexit? Covid? Who is really to blame for the Tories’ ‘fiscal hole’?

The succession of PMs have all spoken out on who or what has caused the state of UK finances. They’re all partly right, but conveniently miss out one or two other key reasons

Covid-19 ripped a £400bn hole in the government’s finances. The money was used largely to support the economy and it succeeded in allowing industries and workers to bounce back once restrictions were lifted.

Continue reading...

Truss allies challenge Kwarteng’s claim he tried to slow down tax cuts

One backer of ex-PM says ‘that wasn’t what was going on’, as Jeremy Hunt also appears to dispute version of events

Kwasi Kwarteng’s claims that he tried to get Liz Truss to slow down her financial plans have been challenged by her allies.

In his first interview since he was sacked as chancellor by Truss, Kwarteng said he had told the then prime minister to be more cautious with their £45bn programme of tax cuts.

Continue reading...

Hunt dismisses Kwarteng’s claim that mini-budget not to blame for state of UK finances – UK politics live

Latest updates: chancellor says ‘we’ve learned that you can’t fund spending or borrowing without showing how you are going to pay for it’

Sadiq Khan, the Labour mayor of London, has released polling suggesting that half of Londoners are either “financially struggling” (18%) or “just about managing” financially (32%).

According to the polling, 49% of Londoners are also using less water, energy or fuel.

This shocking new polling highlights the realities of the worst cost of living crisis in generations.

With spiralling inflation and soaring interest rates meaning many Londoners are struggling to make ends meet – a situation made worse by the government’s failed mini-budget – the chancellor has a duty to take decisive action on Thursday to support vulnerable Londoners.

In total, the NHS paid more than £3bn to agencies who provide doctors and nurses on short notice. The figure represents a 20% rise on last year, when the health service spent £2.4bn. Trusts spent a further £6bn on bank staff, when NHS staff are paid to do temporary shifts, taking the total spent on additional staff to around £9.2bn.

One in three NHS trusts paid an agency more than £1,000 for a single shift last year, while one in every six trusts paid more than £2,000, results from freedom of information requests reveal.

Taxpayers are picking up the bill for the Conservatives’ failure to train enough doctors and nurses over the past 12 years. This is infuriating amounts of money paid to agencies, when patients are waiting longer than ever for treatment.

Labour will tackle this problem at its root. We will train the doctors and nurses the NHS needs, paid for by abolishing the non-dom tax status.

Continue reading...

Decline of UK manufacturing accelerates as government ‘abandons’ sector

Amid higher costs and worker shortages, British Chambers of Commerce says Brexit is another factor

When the minor ups and downs caused by the extra bank holiday for the Queen’s funeral are stripped out of the latest GDP figures, it is clear the long decline of Britain’s industrial base has accelerated.

Protected by the government through the coronavirus pandemic, this year, factory owners say ministers have abandoned them to cope with a long recession without so much as a glance in their direction.

Continue reading...

Zayn Malik urges Rishi Sunak to give free school meals to all children in poverty

Bradford-born singer who relied on free school lunches urges PM to extend provision to all families on universal credit

Zayn Malik has called on Rishi Sunak to “give all children living in poverty” free school meals during the cost of living crisis.

The former One Direction singer, 29, who relied on free school lunches as a child growing up in Bradford, recently became an ambassador for the Food Foundation and is backing its Feed the Future campaign.

Continue reading...

Jeremy Hunt to outline £60bn of tax rises and spending cuts

Guardian understands early drafts of UK government’s autumn statement include at least £35bn reduction in spending

Jeremy Hunt will set out tax rises and spending cuts totalling £60bn at the autumn statement under current plans, including at least £35bn in cuts, the Guardian understands.

Ministers must submit the key points of the autumn statement to the Office for Budget Responsibility (OBR) by Monday morning.

Continue reading...

Rishi Sunak preparing years of tax rises to plug £50bn fiscal black hole

PM set to hike taxes across the board to repair nation’s finances after Liz Truss’s disastrous mini-budget

Rishi Sunak is preparing years of tax rises for Britain in an effort to make up for a £50bn fiscal hole left by Liz Truss’s disastrous tenure in Downing Street, according to a Treasury insider.

After a meeting between the prime minister and Jeremy Hunt on Monday to plan the upcoming autumn statement, a Treasury source said things were going to get “rough”.

Continue reading...

Voters choose Sunak’s Tories over Labour to repair economy, new poll reveals

Rishi Sunak’s arrival in Downing Street is already helping to repair the party’s reputation for financial management

Rishi Sunak and the Conservatives have overturned Labour’s lead in terms of who voters trust most to manage the economy, a new poll for the Observer has revealed.

The new prime minister is currently drawing up tax rises and spending cuts designed to fill a £40bn fiscal hole left by Liz Truss’s disastrous time in Downing Street, with warnings that any significant attempt to cut Whitehall budgets will lead to huge pressure on public services. It comes with new analysis revealing that freezing public service spending would save £20bn but would also lead to a return to the austerity of the 2010s.

Continue reading...