Category Archives: Services sector

Bank of England keeps interest rates at 5.25% but hints at a June cut

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Policymakers say they want to see more evidence that price pressures are easing before cutting rates

• Business – live

The Bank of England has signalled it could start cutting interest rates as early as June after inflation was found to be “moving in the right direction”, as it kept borrowing costs on hold at 5.25% for the sixth time in a row.

Alongside the decision to keep rates on hold, the Bank said inflation was already on course to hit its target of 2% and would fall to just 1.6% in two years, opening the door to future cuts in interests.

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UK workers should expect smaller pay rises this year, warns HR body

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Employers are reining in hiring plans despite improved business confidence driven by services sector

Workers in the UK can expect less generous salary settlements this year, as employers rein in hiring plans, according to a report from the professional body for human resources.

In its regular labour market outlook, which gauges employers’ expectations for the year ahead, the Chartered Institute of Personnel and Development (CIPD) said employers were pencilling in the most meagre pay rises since the pandemic.

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UK economy returns to growth amid Black Friday spending lift

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GDP rises by 0.3% in November after October decline, with car leasing and video games fuelling bounceback

The UK economy returned to growth in November after a recovery in consumer spending driven by Black Friday sales, with shoppers hunting for bargains as the key Christmas shopping season got under way.

Gross domestic product rose by 0.3% on the month, after a decline of 0.3% in October, according to the Office for National Statistics (ONS). City economists had forecast more modest growth of 0.2%.

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Wetherspoon’s returns to profit for first time since Covid pandemic

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Cost of living crisis drives consumers to low-cost pub chain but company remains cautious

JD Wetherspoon has bounced back to profit for the first time since the start of the coronavirus pandemic three years ago, as budget-conscious consumers flocked to the low-cost pub chain amid the cost of living crisis.

Wetherspoon’s, which runs about 830 pubs across the UK and Ireland, reported a pre-tax profit of almost £43m in the year to 30 July.

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Bond market sell-off sends UK long-term borrowing cost to 25-year high

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Rate tops level last seen after Liz Truss mini-budget as fears of global inflation and US political instability spook markets

Britain’s long-term cost of borrowing has hit its highest level since 1998, as political instability in the US and fears of sustained high levels of inflation triggered a sell-off in global bond markets.

The yield, or interest rate, on 30-year UK government bonds hit 5.115% early on Wednesday, according to the financial data provider Refinitiv.

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Getir value ‘drops to $2.5bn’ as shoppers move away from convenience

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Value of fast-track grocery delivery service believed to be quarter of the $11.8bn it was worth 18 months ago

The fast-track grocery delivery service Getir is reportedly now worth a quarter of what it was valued at 18 months ago, after a big shakeout in the sector amid declining consumer demand.

The Istanbul-based company is raising $500m in a funding round that will value the business at $2.5bn and is expected to close later this month, according to a Financial Times report citing people familiar with the matter.

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Global economic fears deepen as service sector dips in China and Europe

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Fresh signs of weakness in Chinese economy and weak UK and eurozone data spook investors

Fears about the health of the global economy have intensified following downbeat news about service sector activity in China, the eurozone and the UK.

Share prices fell in Asia and the pound dropped to a 12-week low against the US dollar after fresh signs of weakness in China triggered speculation that its post-lockdown recovery was running out of steam.

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Wetherspoon’s boss: hospitality holding off price rises could be ‘catastrophic’

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Tim Martin says Bank of England is right to ask firms to be mindful but advice should not be taken too literally

The boss of JD Wetherspoon has warned it could be “catastrophic” for pubs and restaurants to hold off raising prices as costs continue to soar, as the pub chain revealed that the “ferocious” impact of inflation has fuelled a dramatic increase in its bills.

Tim Martin said that Andrew Bailey, the governor of the Bank of England, was right to warn companies to be mindful of how much they put up prices to avoid continuing to fuel an inflationary cycle, after the headline annual rate unexpectedly rose to 10.4% last month.

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Dignity funeral services firm targeted in first UK takeover bid of the year

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Consortium spearheaded by Direct Line founder, Sir Peter Wood, have swooped for company

A consortium spearheaded by Direct Line founder Sir Peter Wood has swooped for the funeral services company Dignity in the first UK takeover attempt of the year.

A subsidiary of Valderrama – a joint venture between Wood’s investment firm SPWOne and investment house Castelnau Group – has made a possible offer for the London-listed company, whose board recommended the deal to shareholders.

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Rail strikes ‘cost UK hospitality sector £1.5bn in December alone’

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Figure worse than predicted and head of industry body expects ‘more business failures’ in early 2023

The rail strikes have had a worse impact on the UK’s hospitality industry than expected – costing bars, pubs, restaurants and hotels £1.5bn in December alone – according to the head of the body representing the sector.

Kate Nicholls, the chief executive of UKHospitality, said this had contributed to a “perfect storm” for businesses battling high energy bills and a cost of living crisis, adding this meant “undoubtedly we will see more business failures” in the next three months.

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G4S strike prompts fears of festive cash shortages at banks and shops

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More than 1,000 staff who deliver money to firms such as Barclays, Asda and Tesco to take action

More than 1,000 security workers who deliver cash and coins to some of the UK’s biggest banks and supermarkets have voted to strike in December, raising the prospect of potential cash shortages in the run-up to Christmas.

The 48-hour strike by 1,156 members of the GMB union who work for the security company G4S is due to take place from 3am on 5 December, after a 97% vote in favour of industrial action in a dispute over pay. However, only 665 workers voted in the ballot, a turnout of 58%.

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Sunak hints he will slow down progress on India trade deal

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Prime minister says UK should not sacrifice quality for speed as he seeks to improve terms at G20 talks

Rishi Sunak has hinted he will slow down progress on the India trade deal to improve its terms, saying the UK should not “sacrifice quality for speed”.

The comments, which preceded talks with the UK prime minister’s Indian counterpart, Narendra Modi, at the G20 on Wednesday, suggested a marked change of approach from Boris Johnson and Liz Truss, who prioritised speed and hard deadlines, having pledged a “deal for Diwali” that did not materialise.

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Pizza Express waiting staff win back bigger slice of tips

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Workers took action after share of tips paid on credit and debit cards was cut from 70% to 50% in 2021

Pizza Express waiting staff have won back a bigger slice of their tips after a year-long campaign against a change that handed more to kitchen staff.

The restaurant workers were forced to take action after their share of tips and service charges paid on credit and debit cards was cut from 70% to 50% last year at a time when pay was already under pressure from social-distancing measures that limited the number of diners.

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It’s cold and wet, but Scarborough is a beacon of normality for families

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The weather couldn’t dampen spirits as the Yorkshire resort’s hoteliers and guests celebrated the return of domestic travel

The sky was overcast, a chill wind blew in from the sea, and everyone was wearing coats. But for four-year-old Caitlin and two-year-old Jim, there was little to complain about – they were on a beach and they were building sandcastles.

For their parents, Lindsay and Jim Roger, a week’s holiday in the North Yorkshire seaside town of Scarborough was a blessed relief. Lindsay is a nurse who has been working on Covid wards, while Jim works in construction. As key workers with young children, lockdown has been difficult but they were “really pleased” to be able to travel again. “It’s just nice to get out and nice to see the sea,” Jim said. “It makes such a change from the house and the garden.”

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A year of Covid crisis: a glimmer of economic hope at the end of the tunnel

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Twelve months after the pandemic struck the Guardian’s economic tracker reveals real risk of lasting damage

When Boris Johnson announced the first stay-at-home order, effectively shutting down whole sections of the economy, it was hoped the tide could be turned within 12 weeks. As many months later, lockdown measures are being relaxed for a third time and Britain still faces a lengthy road to recovery from the worst recession for 300 years.

As restrictions ease, the chief economist at the Bank of England, Andy Haldane, warned that despite the reopening of the economy, the risk of a “jobs equivalent of long Covid” remains for workers across the country.

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Concern over ‘opaque’ Covid-related contracts awarded around world

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UK among the countries in spotlight after spending more than £2.5bn on outsourcing

The UK has spent more than £2.5bn on services and equipment related to the Covid-19 pandemic, according to fresh analysis that raises concerns about “opaque” contracts around the world wasting money and putting lives at risk.

A report by the Open Contracting Partnership and Spend Network found governments had spent $130bn (£97bn) on pandemic-related contracts, including on PPE (personal protective equipment) and other medical supplies, out of an annual procurement spend of nearly $13tn.

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Covid-19: UK economy plunges into deepest recession since records began

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GDP falls 20.4% – the worst of any G7 nation in the three months to June

Britain has entered the deepest recession since records began as official figures on Wednesday showed the economy shrank by more than any other major nation during the coronavirus outbreak in the three months to June.

The Office for National Statistics (ONS) said gross domestic product (GDP), the broadest measure of economic prosperity, fell in the second quarter by 20.4% compared with the previous three months – the biggest quarterly decline since comparable records began in 1955.

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England yet to embrace reopened restaurants and pubs, data suggests

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Tracker finds sales about 40% down on same period last year among venues that reopened

People have not embraced an easing of lockdown restrictions in England’s pubs, bars and restaurants, according to figures that showed a drop in sales of about 40% among venues that opened their doors at the beginning of the month.

Pubs that were open in the week beginning 6 July posted a 39% decline in sales compared with the same period last year, while bars were down 43% and restaurants down 40%.

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