Rise of 11.6% in October from 10.6% a month earlier comes as milk, teabags and sugar become more expensive
Food prices in the UK soared by 11.6% in October – the fastest rate on record – as staples such as teabags, milk and sugar became more expensive along with fresh food, data shows.
Annual food inflation rose from 10.6% in September, the latest monthly report from the British Retail Consortium and the data firm Nielsen showed.
Continue reading...Many households who use non-smart prepayment meters are failing to redeem vouchers, says PayPoint
Government energy bill support worth as much as £400 over the winter is not reaching many households who use prepayment meters, according to data from a payments company.
Households with prepayment energy meters are entitled to vouchers giving them monthly discounts, but only half of the expected number have been used so far, according to PayPoint, which handles top-up payments in shops across the UK.
Continue reading...Pubs, restaurants and hotels threatened by energy bills and food price inflation, survey finds
More than a third of UK hospitality businesses, including pubs, restaurants and hotels, could go bust by early next year as energy bills surge and bookings fall, according to a new survey.
With nearly all businesses saying they face higher energy costs and food price inflation, 35% of respondents to a quarterly hospitality industry survey said they expected to be operating at a loss or to be unable to continue trading by the end of the year.
Continue reading...Many Ukrainians are ending six-month stays and finding there is nowhere for them to go, local authorities say
Ministers need to act urgently to prevent a looming homelessness crisis among Ukrainian refugees, council leaders have warned.
More than 100,000 people have become guests of British families under the Homes for Ukraine scheme, but many are coming to the end of their six-month stays and finding there is nowhere for them to go.
Continue reading...Coalition of 40-plus charities and groups launches amid fears of spending cuts to plug public finances
Pressure is building on the leaders of Britain’s two biggest political parties to support higher taxes on wealth amid growing fears over the impact that a renewed austerity drive would have amid the cost of living crisis.
In an intervention which comes as the new prime minister, Rishi Sunak, considers options for filling a £35bn black hole in the public finances, a new coalition of 40 charities and campaign groups – including Oxfam, Save the Children and Christians Against Poverty – said Britain’s tax system was broken and those who paid the most should “pay their proper share”.
Continue reading...Service says the move is aimed at encourage the return of borrowers who stopped using the library during the Covid pandemic
Libraries in Peterborough are holding a fine amnesty to try to recover 22,000 missing books.
The service, which runs 10 libraries across the area, will not fine anyone for returning overdue books and will clear accounts of debt.
Continue reading...With budgets always tight some smaller football clubs are looking to offset their soaring power costs
Shrewsbury Town’s fans had long since filed out of the Montgomery Waters Meadow stadium after the defender Chey Dunkley had scored an injury-time winner against Exeter, when Brian Caldwell looked angrily skyward. The League One club’s chief executive was unimpressed to see the ground’s floodlights still burning bright.
Caldwell is among the football executives trying to limit the financial pain from huge energy bills. Faced with an even bigger surge in his annual costs, Caldwell was forced to settle for a £100,000 increase, to £180,000, when signing a new energy contract in April. “It’s a massive dent in our finances. Football clubs are not normal businesses, they’re set up to break even and put the money you can into the playing budget,” he said.
Continue reading...Exclusive: Trussell Trust to distribute 1.3m emergency food parcels to help soaring numbers of households in need
The UK’s biggest food bank network is preparing to spend millions of pounds topping up charity food parcels this winter as it offers help to record numbers of families at risk of going hungry as a result of the cost of living crisis.
The Trussell Trust said the expenditure was needed to ensure food banks had adequate food reserves because its customary main source of food supplies – donations from the public – was failing to keep pace with rapidly increasing demand.
Continue reading...UK heading for ‘Victorian levels of poverty’ unless pay and benefits rise with inflation, says union body
One in seven people in the UK are skipping meals or going without food, according to new polling data released by the Trades Union Congress (TUC).
The data from an MRP poll by Opinium reveals that more than half of British people are cutting back on heating, hot water and electricity in the cost of living squeeze, and one in 12 have missed the payment of a household bill.
Continue reading...Latest updates: James Heappey, defence minister, also claims that Truss deserves credit for admitting she made mistake
Liam Fox, the Tory former international trade secretary, told Sky News this morning that Liz Truss’s future would partly depend on whether the financial markets settle down following the latest mini-budget U-turns. He said:
We can all read the polls and I don’t need to tell you what the atmosphere is like at Westminster. People will be weighing up what the prime minister said last night - that she had made mistakes, that she learned from those, and that the measures that Jeremy Hunt had put in place seemed to be providing the necessary economic stability in the markets.
If the markets don’t believe that a Conservative government is able to manage public finances sensibly then that government has had it.
Continue reading...Latest updates: chancellor to make statement after leader of Commons denied PM was hiding under a desk
Judging by what Conservative MPs have been telling journalists in private over the last few days, the consensus (but not unanimous) view among Tories seems to be that Liz Truss will have to be replaced as party leader before the next election. But very few MPs are saying that in public, and Sky’s Tom Larkin, who is running a spreadsheet of Tories calling for Truss’s resignation, has only got three names on it.
Damian Green, the former first secretary of state, was on the Today programme and you would expect him to be on the Larkin list. He is chair of the One Nation Conservatives caucus, the group most horrified by Truss’s experiment with hardline free market ideology. But he insisted that Truss did have the credibility to carry on as PM, despite the fact she is abandoning most of the key tax policies at the heart of her leadership campaign. He explained:
She is a pragmatist - she’s realised that the first budget didn’t work in spectacular fashion, so she’s now taken the sensible view that we will now try something else, and she’s appointed a very sensible chancellor in Jeremy Hunt.
I obviously don’t know what he’s going to say, but clearly what he’s going to do is already beginning to reassure the markets, and I hope will continue to do so afterwards.
Yes, because if she leads us into the next election, that will mean that the next two years have been a lot more successful than the past four weeks have been. That would not only be good for the Conservative party, that would be particularly good for the country as well, so I think everyone would welcome that.
Continue reading...As cost of living crisis bites, 3,000 volunteers across several organisations sign letter of warning to the prime minister
Thousands of food bank volunteers will warn Liz Truss on Monday that they are having to ration provisions, as their services have become “overstretched and exhausted” because of an influx of people needing their help.
In a sign of a continuing cost of living crisis that was building even before the economic crisis that followed the government’s mini-budget, a letter signed by more than 3,000 food bank workers will be delivered to Downing Street.
Continue reading...BT customers face £113 rise as providers such as EE and TalkTalk prepare controversial ‘inflation-plus’ mechanism
Broadband bills could surge by as much as £113 next year if a number of the UK’s biggest telecoms firms push ahead with inflation-busting price increases next spring, says consumer watchdog Which?
Many of the country’s main internet providers – including the largest player BT, along with TalkTalk, EE, Plusnet and Vodafone – use a mechanism to increase the cost of bills annually by the rate of inflation as measured by the consumer prices index (CPI) in January, plus 3.9%.
Continue reading...Increase adds up to a £26bn rise for homeowners, says Resolution Foundation thinktank
More than five million families could see their annual mortgage payments rise by an average of £5,100 between now and the end of 2024, heaping fresh pain on households already struggling with higher food and energy bills.
The increase adds up to a £26bn mortgage rise for homeowners, according to the analysis by the Resolution Foundation thinktank which said nearly a fifth of British households would have to spend more on their housing costs by the end of 2024.
Continue reading...Source close to sacked chancellor briefs Times that ‘wagons are still going to circle’ around embattled prime minsiter
The Conservative peer, Ed Vaizey, said he disagreed with the international trade secretary, Greg Hands, who earlier said Kwasi Kwarteng’s early return is not unusual. “It is quite unusual for this to happen,” he said.
Speaking to Sky News, Vaizey said the chancellor cutting his trip to the US short is “not a good sign”. He said:
I’m afraid the chancellor coming back a day early doesn’t fill one with confidence.
The fact that people were speculating about the prime minister’s leadership this early in her premiership is not ideal, but I think he’s just got to bite the bullet. He’s got to try to give the markets confidence in the British economy.
If he can do that then perhaps he can say: ‘Well, I had to do some difficult choices, slightly humiliating choices, but the result is stabilisation and I can move forward.’
Continue reading...Strong demand for beauty products such as eyeliners and mascaras, as chocolate and coffee also sell well
The shadow cast by the cost of living crisis has spurred a retreat into small luxuries with Britons cheering themselves up with mood boosters such as luxury lip balms and false nails as well as chocolate and coffee.
The lipstick index, coined by Estée Lauder’s Leonard Lauder, is the idea that sales of affordable luxuries rise in economic downturns. This spending behaviour has been true during previous downturns and the same picture is emerging again as consumers battle severe financial headwinds.
Continue reading...Statement from No 10 comes straight after PM told MPs she was ‘absolutely’ committed to avoiding public spending cuts
Sajid Javid, the former Tory chancellor, has been speaking at an event organised by the Legatum Institute thinktank this morning. As Chris Smyth from the Times reports, Javid said the turmoil in the markets was caused by the fact that the tax cuts in the mini-budget went “way beyond” what Liz Truss promised during the leadership campaign, and by the fact that her energy bills bailout was also much bigger than expected.
The government has drawn up a plan to cap the unit cost of gas and electricity for two years. Labour proposed its own plan to freeze energy bills, but it only proposed a commitment for six months.
Continue reading...Latest updates: Labour leader hoping to put party on war footing ahead of next election
In the supreme court Dorothy Bain KC, the lord advocate, the Scottish government’s most senior law officer, is now setting out her case.
Here is the 50-page submission to the court setting our her case that was released in July.
Despite the political context of this reference, the questions the court has to decide are limited to technical questions of law. The court will decide them by applying legal principles.
The court will require time after the hearing to prepare its judgement. The hearing is the tip of the iceberg. We also have more than 8000 pages of written material to consider.
Therefore, as usual, is likely to be some months before we get our judgement.
Continue reading...Sandwich shop chain to increase pay by 5% for most cafe workers, with higher rates for baristas
Pret a Manger is investing £10m in raising pay, announcing its third rise in 13 months to a minimum of £10.30 an hour, as hospitality and retail businesses compete to attract workers during the busy run-up to Christmas.
The sandwich shop chain, which has more than 400 outlets in the UK, said it was increasing pay by 5% or 50p an hour for most cafe workers from 1 December. Pay for skilled baristas, who are particularly in short supply, will rise from a minimum of £10.30 to £10.85 – an extra 5p.
Continue reading...Boss says bank is putting aside more money for potential defaults linked to cost of living crisis
The boss of Santander UK says the bank is putting aside more money for potential defaults linked to the cost of living crisis after seeing a pickup in customers falling behind on mortgage and loan payments.
Mike Regnier told the Guardian that he was keeping a close eye on the “strain and pressure” facing customers as a result of the cost of living crisis, which has made it harder for some households to keep up with rising food and energy bills and financial commitments such as home loans.
Continue reading...