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Everyday essentials surge in price as food inflation rises to a record 11.6%

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02/11/2022

Having already been hit with rising fuel and energy bills, shoppers are now being stung at the till will soaring prices for everyday essentials like milk and sugar.

According to new figures from the British Retail Consortium, food inflation soared to a record 11.6% in October.

Overall shop prices are now 6.6 per cent higher than they were this time last year – also a record – but food inflation jumped well above September’s 10.6 per cent and the three-month average rate of 9.7 per cent, according to the Nielsen Shop Price Index.

Fresh food prices are now 13.3 per cent more than last October, up from 12.1 per cent in September.

Non-food inflation accelerated to 4.1 per cent, up from 3.3 per cent.

Which? head of food policy Sue Davies said: “Soaring food prices are a real concern, and our research shows millions of consumers are already skipping meals or struggling to put healthy meals on the table due to the cost-of-living crisis. It is vital that households get the support they need from the government and businesses.

“Supermarkets have a crucial role to play in helping their customers navigate the tough months ahead. Budget lines for healthy and affordable essential items need to be widely available across their stores and they should ensure shoppers can easily compare the price of products to get the best value. Promotions should be targeted at supporting those most in need.”

Royal Mail to strike on Black Friday and run-up to Christmas

Helen Greaney

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01/11/2022

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Royal Mail workers will now stage two x 48-hour strikes in ongoing rows over pay and conditions.

It announced strikes will take place in the run-up to Christmas, including Black Friday on November 25.

The union representing Royal Mail workers – The Communication Workers Union (CWU) – has called the company’s latest pay offer “unacceptable”.

Royal Mail Group said it had put forward a deal on Monday, which included a pay rise worth 7% of a worker’s salary over two years, and a 2% lump sum this year – but the offer was subject to agreeing changes with Sunday working and starting times.

The CWU, which represents around 115,000 workers, previously called off planned walkouts on Sunday.

It has been at loggerheads with Royal Mail over pay failing to keep in line with the cost of living.

An average postal delivery worker earns less than £25,777.

Royal Mail reported losses of £219m in the first half of 2022, which demonstrated something had to change.

Talks between the union and the company have been held at the conciliation service Acas, and planned strikes in the next two weeks were called off following a legal challenge by the company.

The union has withdrawn strikes planned for November 12 and 14, saying it wants to take more “proportionate” action.

The CWU’s postal executive is due to meet n Thursday to discuss new actions in the Christmas build-up, adding that the union will hold a vote to reject Royal Mail’s pay deal and whether workers have confidence in the company’s chief, Simon Thompson.

Made.com fails to secure emergency buyer

Helen Greaney

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31/10/2022

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Made.com fails to secure emergency buyer

Trendy home furnishing giant Made.com says it will appoint administrators after to failing to find a new buyer.

The move, which ends a long survival battle complete with job cuts and falls in profit for the Shoreditch business, puts almost 700 employees at risk.

The company, which formed in 2011, failed to find £70 million in emergency funding to secure its future.

Downturn in purchases

It had previously been up for sale in September after a major downturn in customer purchases took its toll, amidst the cost of living crisis.

The retailer, which only last year was valued at £775 million, had stopped taking customer orders and paused returns.

It aims to fulfil orders it has already received but is not offering refunds at this stage.

Administrators seeking a sale

Made said the administrators Pricewaterhouse Coopers, would still seek to secure a sale of the firm.

In May, the retailer warned losses could be as much as £35 million for 2022.

The retailer was originally founded by former Lastminute boss Brent Hoberman and investor Ning Li along with several other financiers who have since left the company.

Only a few days ago, Eve Sleep, a mattress company in Camden, entered administration after failing to find a takeover.

Octopus Energy takes on collapsed Bulb

Energy
News

Helen Greaney

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29/10/2022

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Octopus Energy has struck a deal to takeover Bulb Energy’s 1.5 million customers after gaining approval from the government.

The company collapsed amidst the sudden spike in gas prices and despite a year-long sales process by administrators.

Bulb has spent the last year being state-run under ‘special administration’.

Octopus will pay the government to take on Bulb’s existing customers, with taxpayers to benefit from profit share.

Business secretary Grant Shapps said the sale would bring “vital reassurance and energy security to consumers across the country at a time when they need it most.”

Octopus boss Greg Jackson said the firm would work “unbelievably hard to deliver value for taxpayers” as it took over control of Bulb.

“We started off as rivals but shared the same mission – driving a greener, cheaper energy system with people at the heart,” he said.

Octopus Energy will be in touch before system transfer and until then, customers will remain with their current Bulb teams. They expect that the transfer of ownership will not have a significant impact on Octopus customers.

Bulb customers’ credit balances will automatically get transferred to their new account with Octopus together with their existing direct debits.

PM under pressure to expand windfall tax

Helen Greaney

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27/10/2022

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New Prime Minister Rishi Sunak is already being urged to expand the windfall tax on energy giants.

Shell swerved the bill despite doubling its profits amidst soaring oil and gas prices.

The multinational made almost £10 billion earlier in the year and is on track for a record year for profit.

But Shell says it shouldn’t pay the windfall because it made investments worth $400m in the UK during its third quarter and this meant, it made no profit here.

The Energy Price Levy – or windfall tax – on the profits of energy firms was announced by Sunak when he was chancellor. He had said it would raise £5 billion in its first year.

Climate activists and opposition MPs are urging the Prime Minister to go further on his windfall tax as oil and gas giants see profits soar over Russia’s war in Ukraine.

The Energy Profits Levy also has a measure that allows energy companies to apply for tax savings worth 91p of every £1 invested in fossil fuel extraction in the UK.

Downing Street said that any changes to the windfall tax would be a matter for Chancellor Jeremy Hunt’s autumn statement.

Oil and gas prices began to rise after the end of Covid lockdowns but have surged since February after Russia’s invasion of Ukraine, resulting in bumper profits for energy companies.

Higher oil and gas prices has also fuelled the rise in energy bills for both households and businesses.

The government is limiting gas and electricity bills through the Energy Price Guarantee scheme but instead of lasting for two years as originally planned, it will now end in April.

Picture by Simon Walker / HM Treasury, OGL 3, https://commons.wikimedia.org/w/index.php?curid=124686916

Rail strikes cancelled on Poppy Day

Helen Greaney

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25/10/2022

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Rail union RMT said it will not strike on November 3 after being made aware that the Royal British Legion’s Poppy Day was the same date.

Workers will now walk out on November 5,7 and 9 as part of a long-standing dispute over salaries, jobs and working conditions.

Network Rail members said they will strike for all three dates but staff at 14 other railway companies will only walk out on November 5.

About one in five trains are likely to run, with large areas of Great Britain with no rail services at all.

In separate disagreements, London Underground and Overground workers will walk out on November 10.

Four unions are involved in the strikes: RMT, the main rail union; Aslef, representing train drivers, Transport Salaried Staffs’ Association (TSSA), the union for white-collar staff in the transport industry and Unite, representing some grades in some train operators.

RMT general secretary Mick Lynch said: “The dishonesty of Network Rail bosses has reached a new low in this national rail dispute.

“On the one hand, they were telling our negotiators that they were prepared to do a deal while planning to torpedo negotiations by imposing unacceptable changes to our members’ terms and conditions. Our members are livid with these duplicitous tactics, and they will now respond in kind with sustained strike action.”

Tim Shoveller, Network Rail’s chief negotiator, said: “A two-year eight per cent deal, with discounted travel and a new extended job guarantee to January 2025, is on the table ready to be put to our staff. Unfortunately, the leadership of the RMT seems intent on more damaging strikes rather than giving their members a vote on our offer.

“Me and my team remain available for serious talks and continue to negotiate in good faith. Our sector has a £2 billion hole in its budget with many fewer passengers using our services. That reality is not going to change anytime soon.”

Three quid from the Grid for off-peak use

News
Energy

Helen Greaney

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20/10/2022

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Three quid from the Grid for off-peak use

Householders are being offered £3 per kilowatt hour to use electrical appliances late at night.

The National Grid is attempting to reduce demand as it works on plans to avoid blackouts this winter.

National Grid warned this month that homes could face three-hour power cuts if Russia blocks gas supplies into Europe and Britain experiences sustained cold weather, increasing the amount that households use for heating.

The electricity system operator says that avoidance of appliances in the evening could save customers up to £100 a year.

As businesses consume far more energy than domestic customers, their savings could be much higher.

In response to inevitable challenges, the Grid is encouraging households to take part in its new demand flexibility service, which launches in November.

So far, Octopus and Ovo Energy – the scheme pilots – have signed up.

This winter, customers are facing record energy bills.

The Energy Price Guarantee, announced by the prime minister in September, was initially due to last for two years from October 2022 to September 2024. However, the new chancellor announced on 17 October 2022 that it would now only last sixth months ending at the end of March 2023.

Cornwall Insight predicts the price cap will be above £4,000 per year – when the support package is now expected to end next April, after Chancellor Jeremy Hunt slashed its timeframe.

Business community remembers London legend Tony Berry

Helen Greaney

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19/10/2022

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Business community remembers London legend Tony Berry

Londoners have paid their respects to the long-term director of Tottenham Hotspur, Tony Berry.

He passed away iaged 81 after a long illness.

Hailed one of the businessman of his generation, Berry’s drive and determination led him to chair a company worth one billion pounds.

He quickly grew recruitment company Blue Arrow in the eighties and acquired more businesses including Brook Street.

Blue Arrow soon became a FTSE 100 company and the biggest recruitment business in the world.

He later became chair of Berry Recruitment Group, which turns over £70 million annually across 40 offices in England and Wales.

Football fans will also recognise Berry as a stickler for Tottenham Hotspur, enjoying a stint as club chairman in 1991-92.

The dad of two was born in Edmonton, London, where he captained the cricket club for a number of years, and met wife Marion on one of its tours.

His son Spencer said: “So many people attended the funeral to pay their respects – there was standing room only.

“We heard so many wonderful stories about him from all sorts of people.

“He was diagnosed with cancer around 20 years ago but it didn’t stop him. He had always been a man in a hurry.

“He loved meeting new people and buying companies, and realising their potential was a defining part of his success.”

Among those to pay tribute was Claude Littner, of TV’s The Apprentice who said: “Every so often you meet someone special. Tony Berry was special.

“He was always friendly, welcoming, funny, clever and a true gentleman. Friends for 30 years, wish it could have been longer.”

Police reopen roads after ‘suspicious package’ found

Helen Greaney

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19/10/2022

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Police reopen roads after ‘suspicious package’ found

The City of London Police have reopened roads near Bank Station after resolving an incident regarding a “suspicious package”.

Queen Victoria Street, Queen Street and Princes Street were among those roads closed this morning after reports of an unattended item at Mansion House.

The area also includes the City of London Magistrates’ Court and several major banks.

Bank Station was also temporarily shut, with office workers nearby unable to enter their buildings until noon.

Just before midday, the police said the incident had been resolved and cordons were in the process of being lifted.

Transport for London said Bank station was “closed due to a security alert at street level” but Monument Station was not affected.

Chief Inspector Nikki Gander, from the City of London Police, said: “Officers were called to a report of a suspicious package near Mansion House at 10.06am this morning. This is currently being investigated and precautionary cordons and road closures have been put in place.”

The incident comes a day after police were forced to close roads around Cannon Street Station, when a man climbed onto the roof of Starbucks on Wallbrook and threw rocks.

Houses prices soar £36,000 in 12 months

Helen Greaney

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19/10/2022

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The average cost of a home in the UK has jumped by more than a typical British annual pay packet in the last year, according to new figures.

House prices have risen by around £36,000, according to the Office for National Statistics, putting another obstacle in the way of those looking to buy their first home.

The average price of a UK home in August was £296,000, while the average cost of a house in England is £316,000 forcing many to rent properties rather than buy.

The rising demand for housing teamed with soaring inflation – which rose to 10.1% in September 2022 from 9.9% in August, returning to the 40-year high hit in July – has seen landlords scrambling to increase rents.

Private rental prices paid by tenants in the UK has risen by 3.6 per cent in the 12 months to September 2022.

Surging energy price rises coupled with continued Bank of England interest rate rises have been expected to hit household finances, and there were signs that the housing market was losing momentum.

The stamp duty cut announced in September was intended to benefit first-time buyers by making property more affordable, but the market uncertainty caused by the mini-budget led to significant mortgage rate hikes, forcing lenders to pull their products and making them available again but with higher rates.

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