The UK economy, high inflation, rising interest rates, and the increasing cost of living

[LaLoco]

UK bar/restaurant/hotel workers (etc) struggle to keep on top of their monthly rent and bills at times, and they mainly rely on free food from where they work for their main meals. They can just about afford bus/tube fares to & from work! --- and they certainly could not own nor could they run a BMW.

Few saw 'click bait" video from a random blogger and fell for it.

 

[LaLoco]

Its funny how you ignored what i just said, and its easy for you to ignore it because you dont suffer from that problem.

The issue is minimum wage. What you earn in three days, we earn that in a month. Prices are way high than what a person can afford.

A bartender in Europe can own a bmw. In pakistan, a job going person cannot afford to buy a car. His under market value salary is enough to only buy a bike.

But i dont expect you to understand these things because you are blistfully shielded from this.

For you uk=pakistan....

and these are the so called parhay likhay overseas that look down on the pakistanis back home

You are probably the most miss-informed comment poster in this thread.

It can't be because you are incapable of comprehension and that left only one reason, agenda.

 

[James]

The increase in demand has pushed the average asking price for a house across Britain to a record £348,804.

Outrageous !

 

[Technics 1210]

Value capitalism vs. asset capitalism.

In. The 50s, 60s, 70s, the West experienced the biggest boom in living standards, this was due to value capitalism. Ushered in the generation known as Baby Boomer.

89s 90s 00s and so on is based on asset capitalism. A broken system that has resulted in false wealth.

Who here knows the difference?

 

[ElRaja]

Value capitalism vs. asset capitalism.

In. The 50s, 60s, 70s, the West experienced the biggest boom in living standards, this was due to value capitalism. Ushered in the generation known as Baby Boomer.

89s 90s 00s and so on is based on asset capitalism. A broken system that has resulted in false wealth.

Who here knows the difference?

id say the 80s, and 90s still had massive value creation, availability of computers, office software, the internet, democratisation of information. the real problems started after the dot com bubble burst and politicians realised how entwined "regular wealth" had gotten with the stock market.

its been a downhill slope ever since with capital being thrown hand over fist over ventures which not only fail to add economic value, but IMO are value destroyers (most of social media and entertainment platforms being the main culprits)

there's a saying in urdu, "behti ganga main haath dhona", if you don't jump on the bandwagon you would have lost out massively over the last 20 years, and that FOMO will continue to provide market legitimacy to central bank actions which either by mistake or design, ill leave that up to, inevitably increase inequality.

then there is a real elephant in the room, western society has used asset price inflation to create capital growth to replace then decline in demographic growth, you have hundreds of millions of old people who will rely on trillions in pensions locked up in this same malaise. its a messed up system, but there is no option other than to play ball.

 

[Major]

You are probably the most miss-informed comment poster in this thread.

It can't be because you are incapable of comprehension and that left only one reason, agenda.

Being called miss informed by the guy who doesnt understand pakistani politics yet loves to post comments on it

 

[Major]

UK bar/restaurant/hotel workers (etc) struggle to keep on top of their monthly rent and bills at times, and they mainly rely on free food from where they work for their main meals. They can just about afford bus/tube fares to & from work! --- and they certainly could not own nor could they run a BMW.

Dont know about uk, but talking about belgium, will ask them which model they got.

But he said they make good enough money just as bartenders there....

 

[shaz619]

Outrageous !

That is bonkers!!! 350k!! am sure it was 250k not long ago, feel especially for first time buyers who are probably the biggest victims

 

[James]

That is bonkers!!! 350k!! am sure it was 250k not long ago, feel especially for first time buyers who are probably the biggest victims

Yes pre covid it was a bit under 250k for a UK house on average, which given that the house prices had previously been increasing around 3% every year on average in “normal times” tells us that 350k is a truly insane increase in just 2 years. I feel extremely lucky to have bought my house in 2016 before things exploded.

 

[LaLoco]

Being called miss informed by the guy who doesnt understand pakistani politics yet loves to post comments on it

The average salary of a bartender in Belgium is about 2700 Euro.
The average rent for a studio or one bed room apartment is about $800.
Then one has to factor in groceries, phone bill, internet, electric bill, probably water bill, healthcare, and entertainment.

Average price of 2012 BMW with over 250K KM in Belgium is about 9500 Euro.

Unless, the person is Zardari nephew, getting stolen money from Pakistan then it will be quite difficult for one to afford it on a average bartender salary.

Regarding Pakistan's politics, You are absolutely correct, I failed to understand someone who believe Billo Rani will be the PM of Pakistan after IK retired.

Bhutto will finally die after Zardari leave this world, remember that.

Regards

 

[LaLoco]

The average salary of a bartender in Belgium is about 2700 Euro.
The average rent for a studio or one bed room apartment is about $800.
Then one has to factor in groceries, phone bill, internet, electric bill, probably water bill, healthcare, and entertainment.

Average price of 2012 BMW with over 250K KM in Belgium is about 9500 Euro.

Unless, the person is Zardari nephew, getting stolen money from Pakistan then it will be quite difficult for one to afford it on a average bartender salary.

Regarding Pakistan's politics, You are absolutely correct, I failed to understand someone who believe Billo Rani will be the PM of Pakistan after IK retired.

Bhutto will finally die after Zardari leave this world, remember that.

Regards

And yea for the completeness sake, the car insurance, the gas and regular car maintenance, remember, the cost to maintain for a car such as BMW is not cheap

 

[Major]

The average salary of a bartender in Belgium is about 2700 Euro.
The average rent for a studio or one bed room apartment is about $800.
Then one has to factor in groceries, phone bill, internet, electric bill, probably water bill, healthcare, and entertainment.

Average price of 2012 BMW with over 250K KM in Belgium is about 9500 Euro.

Unless, the person is Zardari nephew, getting stolen money from Pakistan then it will be quite difficult for one to afford it on a average bartender salary.

Regarding Pakistan's politics, You are absolutely correct, I failed to understand someone who believe Billo Rani will be the PM of Pakistan after IK retired.

Bhutto will finally die after Zardari leave this world, remember that.

Regards

Difference between googling and first hand info and googling

 

[LaLoco]

Difference between googling and first hand info and googling

LOL - do you want me to visit Belgium to put your 'shooting from hips before thinking' types of comments to bed? lol

So google is lying about the car prices
The average rent
the cost of living

But, you with an agenda, is doodh ky dhulay, and everyone else who live in the west are lying, rhenay dey bhai

 

[Technics 1210]

Yes pre covid it was a bit under 250k for a UK house on average, which given that the house prices had previously been increasing around 3% every year on average in “normal times” tells us that 350k is a truly insane increase in just 2 years. I feel extremely lucky to have bought my house in 2016 before things exploded.

Average house price in UK is not £350K, it is £270K

https://www.gov.uk/government/news/uk-house-price-index-for-november-2021

This is based on a 10% house price increase each year.

The £370K average may be linked to a specific region.

 

[Technics 1210]

Difference between googling and first hand info and googling

Your first hand info of UK bartenders being able to afford BMWs is not even worth Googling!

 

[Major]

Your first hand info of UK bartenders being able to afford BMWs is not even worth Googling!

I am saying that based on people living there and there accounts.....

 

[James]

Household energy bills could top £3,000 a year in England, Wales and Scotland from October, in part due to the Ukraine crisis, a report has warned.

The bank Investec said the conflict, along with surging global demand, had made gas and electricity prices soar.

It expects the energy price cap, which limits what suppliers can charge, to hit £3,238 a year for the average home when it's next adjusted in October.

The cap is already due to rise by £693 to £1,971 in April.

Investec analyst Martin Young said a further rise in October, which would impact about 22 million households in England, Wales and Scotland, would be "devastating".

He said such an increase would "plunge many people into fuel poverty", with many facing an "eat or heat dilemma in the winter season".

"Absent sharp and significant declines in wholesale prices, we expect a significant jump in the cap in October," he said.

 

[MenInG]

UK fuel prices have soared to new record highs, with the average cost of a litre of diesel rising to £1.61, with no end in sight for spiralling pump costs.

Data from Experian Catalist reported by the AA also showed unleaded at £1.55 on Sunday as the impact of Russia's invasion of Ukraine continued to be felt at forecourts.

The latest average costs were revealed hours after oil prices surged further, hitting $139 for a barrel of Brent crude, after confirmation from the United States that it was considering, along with European allies, a boycott of Russian oil and gas.

Ukraine invasion: Live updates

Brent had started the day at $118.

Brent crude oil costs rose sharply early on Monday, signalling the likelihood of more pump pressure to come through March
While petrol prices are important for UK motorists generally, rising diesel costs are seen as a greater economic threat as the fuel is the backbone of UK industry - accounting for the vast majority of vans and all HGVs.

Sky's Ian King says there is a huge risk of a downturn in the West if Russian oil and gas are banned as previous similar oil price spikes and embargoes, such as those that followed the Yom Kippur War and the Iranian revolution in the 1970s, led to recessions.

Petrol has now reached 155.62p a litre while, and diesel averaged 161.28p, the AA said.

A year ago, they averaged 124.32p and 127.25p a litre respectively.

AA fuel price spokesman Luke Bosdet said it meant that the cost of filling up an average 55 litre tank was almost £17 more expensive, with a gallon of fuel now passing £7 for the first time, as there are 4.54 litres in a gallon.

Mr Bosdet said: "A year ago, with pump prices rising steadily after the pandemic slump, 125p a litre was bad news but 155p was unimaginable.

"Although with every pump price surge a slump eventually follows, notwithstanding the fuel trade's reluctance to pass on savings quickly, £7 a gallon could well be a watershed moment."

The inflation index signalling a 1970s-style leap in prices is looming large

RAC fuel spokesman Simon Williams said: "These hikes are unprecedented and will sadly be hitting both homes and businesses hard.

"It's therefore vital the chancellor acts quickly to limit the damage by cutting VAT to at least 15% which would save drivers 6.5p a litre and take the average price of unleaded back under £1.50.

"Importantly, this could also limit the impact of inevitable fuel price rises in the coming days and weeks."

VAT is currently charged at a rate of 20% on petrol and diesel.

The campaign group FairFuelUK claimed prices were up to 14p a litre higher than they needed to be - when wholesale costs and currency exchange rates were taken into account.

Its founder, Howard Cox, called on Rishi Sunak to cut fuel duty and take a series of additional actions as the Treasury benefits from the surging prices.

"With over half of the cost of a litre of diesel accounted for by tax, we firmly believe that action should be taken to back UK hauliers and keep consumer prices under control through the introduction of an essential user rebate of 15p per litre.

"This step would mirror an approach taken by many other European nations including Spain, France and Italy which has proved successful," he said.

SKY

 

[James]

<b>Ukraine war: Cost of filling diesel family car hits record £90</b>

The cost of filling an average family car with diesel has topped £90 for the first time, as soaring oil prices hit household budgets.

The RAC motoring group said the average price of a litre of diesel rose 3p overnight to a record 165.24p - the second biggest daily jump since 2000.

Tuesday's oil embargo on Russia for invading Ukraine has left governments searching for alternative supplies.

The UK gets 8% of its oil imports from Russia, but about 18% of its diesel.

A litre of petrol was now 158.2p, a 2p rise, the RAC said.

The latest jump in pump prices is likely to have been pushed higher by soaring wholesale costs before Tuesday's announcement that the UK intends to phase out its imports by the end of 2020.

A barrel of crude oil rose 1.3% on Wednesday, and experts say this will feed through into still higher retail prices.

RAC fuel spokesman Simon Williams said: "The diesel daily increase was the second largest on record since 2000.

"The cost of a filling a 55-litre family car with petrol is now £87 - £7 more than it was at the start of the year. Diesel drivers are even worse off with a tank now costing more than £90 for the first time ever - £8 more than in early January."

And he warned of more pain at the pump:

"Petrol is now certain to top an average of £1.60 a litre this week while diesel will progress very quickly towards £1.70."

The US said on Tuesday it would immediately ban Russian oil and gas, and the EU vowed to cut is gas imports by two thirds this year.

Business Secretary Kwasi Kwarteng tweeted that the UK's transition would give its "market, businesses and supply chains more than enough time to replace Russian imports".

Robert Buckley, an energy analyst at Cornwall Insight, told the BBC the UK ban was "largely symbolic" because Russian oil was such a small part of its overall energy mix.

However, together with the US ban, and widespread boycotts by western companies, the move is likely to increase already high oil prices in the coming weeks, he said.

"This is a global market and you've got to replace that displaced supply somehow," Mr Buckley told the BBC.

"At the margin, this decision will act to support oil prices which are already extremely high."

The price of Brent crude - the global oil benchmark - has climbed for weeks, hitting a 14-year high of $139 a barrel at one point on Monday. Prices jumped 7% on Tuesday after the sanctions were announced.

In research published on Tuesday, the Centre for Business and Economic Research (CEBR) warned that a combination of rising commodity and oil prices and sanctions was likely to have major impact on the UK economy.

It estimates that GDP growth this year will be more than halved - down from a previously forecast 4.2% to 1.9%.

https://www.bbc.co.uk/news/business-60670120

 

[Rana]

It’s gone absolutely bonkers!

UK government might use the Parliamentary salary as chicken feed but they are not the ones who are going to pay the average person’s fuel and energy (gas/electricity) prices!

This boycott of Russia needs to end now!!

 

[IAJ]

Diesel and Petrol are around £2,5/litre here in Norway today. And Norway is the biggest oil producer in Europe (apart from Russia). This is crazy!

 

[KingKhanWC]

Diesel and Petrol are around £2,5/litre here in Norway today. And Norway is the biggest oil producer in Europe (apart from Russia). This is crazy!

This is crazy.

You have the 2nd most expensive price after Hong Kong which is around £3.00 per litre. Has it risen since you last checked?

 

[James]

<b>Ukraine brings significant economic uncertainty, Rishi Sunak warns</b>

Russia's invasion of Ukraine means significant uncertainty for the UK economy, the chancellor has warned.

This is despite UK growth bouncing back in January as the effects of the Omicron Covid variant began to ease.

The economy grew by 0.8% compared with a 0.2% contraction in December the Office for National Statistics said.

But one industry body warned the UK faced a higher risk of recession as the impact of the Ukraine conflict would add to the sharp rise in living costs.

UK households were already facing sharply rising costs before Russia's invasion of Ukraine, in part due to soaring energy costs.

The conflict in Ukraine pushed the price of oil to its highest level for nearly 14 years at one point and this has had a knock-on impact on fuel costs, with UK petrol prices hitting record highs.

Gas prices have also soared, leading to warnings that average energy bills could reach £3,000 per year in October, after rising to £2,000 in April when the energy price cap is raised.

Grain prices have also jumped as both Russia and Ukraine are major global producers, particularly of wheat.

"Russia's invasion of Ukraine has increased the risk of a recession in the UK by exacerbating the already acute inflationary squeeze on consumers and businesses and derailing the supply of critical commodities to many sectors of the economy," said Suren Thiru, the British Chambers of Commerce (BCC) said.

Mr Thiru said January's growth was now like looking into a rear-view mirror.

The ONS figures show the UK's economy rebounded in January, with wholesaling, retailing, restaurants and takeaways all performing well.

While supply chain issues continued to dog some sectors, construction and manufacturing both grew, the ONS said.

Computer programming and film and TV production also had a good start to the year, said Darren Morgan, ONS director of economic statistics.

"GDP bounced back from the hit it took in December due to the Omicron wave and is now 0.8% above its pre-pandemic peak," he said.

"All sectors grew in January with some industries that were hit particularly hard in December now performing well."

Mr Sunak said that Russia's invasion "is creating significant economic uncertainty", but "it is vital that we stand with the people of Ukraine to uphold our shared values of freedom and democracy and ensure Putin fails".

He added that the government had "provided unprecedented support" throughout the Covid pandemic, "which has put our economy in a strong position to deal with current cost of living challenges".

Labour's shadow chief secretary to the Treasury, Pat McFadden, said households were facing "a year of surging inflation, weak earnings growth and tax rises".

He called for the government to halt a planned National Insurance increase in April.

Mr McFadden also said the government "must look again at Labour's proposal for a one-off windfall tax on oil and gas producers to cut household energy bills by up to £600".

Paul Dales, chief UK economist at Capital Economics, said that while the economy had "rebounded with vigour" in January, "the cost of living crisis and the influence of the war in Ukraine probably means this is as good as it gets for the year".

He added that growth "will probably slow throughout the year".

Despite this, Mr Dales still expects the Bank of England to increase interest rates at its meeting on Thursday next week, with the main Bank rate likely to rise from 0.5% to 0.75%.

https://www.bbc.co.uk/news/business-60699815

 

[James]

<b>Cost of living: Energy bills to rise 14 times faster than wages, says TUC</b>

Energy bills are due to rise at least 14 times faster than wages this year, new research by the Trades Union Congress (TUC) suggests.

The TUC said average weekly wages are due to rise by 3.75% - while the price cap for gas and electricity set by Ofgem will go up by 54% in April.

That means energy price rises alone could wipe out or exceed pay rises.

The government says it is offering £21bn of help with bills - but rejected halting a rise in National Insurance.

The tax increase of 1.25p in the pound comes into force in April, just as the rising price of energy - likely to be made worse by Russia's invasion of Ukraine - is leading to large increases in the cost of living.

According to the Resolution Foundation think tank, the typical household income will fall by about £1,000 this year in real terms - the largest fall in living standards since the mid-1970s.

The TUC said people on low incomes will be hit hardest by the record energy prices, as years of low wage growth and benefits cuts have left poorer families "badly exposed" to increases in the cost of living.

Since 2010, energy bills have risen at twice the rate of average wages, the TUC estimated.

TUC general secretary Frances O'Grady said households are being "pushed to the brink" and called on the government to impose a windfall tax on oil and gas profits to provide more support.

Rising oil and gas prices are also pushing other costs higher, with average petrol prices hitting a new record high of £1.60 a litre.

Earlier this month, the highest rail fare increases for nine years came into effect, pushing up prices by 3.8%.

Inflation - which takes into account the changing prices of goods and services across the UK economy - reached a 30-year high of 5.5% last month, with the Bank of England warning it could rise above 7% this year.

Food prices in particular are expected to surge further as a result of the war, as Russia and Ukraine normally supply 30% of the world's wheat.

Labour has called for the government to halt its planned National Insurance rise, which is set to cost an extra £214 a year for someone earning £30,000.

But Downing Street has said it is fully committed to the increase, which is intended to help tackle the NHS backlog from Covid and fund social care.

A government spokesperson said its £21bn support package for energy costs included a £150 council tax rebate in April for most households and a £200 energy bill discount in October - which will have to be repaid over five years.

The government also said it plans to set out an energy supply strategy to "supercharge our renewable energy and nuclear capacity" and "drive down energy costs".

https://www.bbc.co.uk/news/uk-60719158

 

[Firebat]

Saudi Arabia: Boris Johnson to visit for talks on oil - as kingdom announces execution of 81 people

Boris Johnson is poised to travel to Saudi Arabia next week for talks on oil as he attempts to move the UK away from dependence on energy supplies from Russia.

Although Downing Street insists the trip is not finalised or confirmed, the prime minister is facing calls from Tory MPs to intervene to urge the Saudis to release more oil.

The potential trip has emerged as fuel prices at the pumps have reached record levels, topping £1.60 a litre for petrol and £1.70 for diesel, according to the RAC's latest figures.

Government insiders claim the prime minister has better links with Saudi Arabia's Crown Prince Mohammed bin Salman than any other G7 leader and that the pair have exchanged WhatsApp messages.

In contrast, it has been reported that the prince refused to take a call from President Biden, who has denounced Saudi Arabia as a "pariah" over the killing of journalist Jamal Khashoggi in 2018.

Mr Johnson's potential trip comes as Saudi Arabia announced that it executed 81 men, including seven Yemenis and one Syrian, for terrorism and other offences including holding "deviant beliefs" in the biggest mass execution in decades.

The Saudi interior ministry said: "These individuals, totalling 81, were convicted of various crimes including murdering innocent men, women and children.

"Crimes committed by these individuals also include pledging allegiance to foreign terrorist organisations, such as ISIS, al-Qaeda and the Houthis."

The last time the kingdom carried out an execution of a similar scale was in 1980 when 63 people were killed in one day, a year after militants seized the Grand Mosque in Mecca, according to state media reports.

On the prime minister's plans to travel to Saudi Arabia for a meeting with the prince, The Times reported: "The trip has not been finalised, but is looking increasingly likely."

A No 10 spokesperson told Sky News: "Nothing is planned at the moment. We will update in the usual way if anything is confirmed."

In his interview with Beth Rigby on Sky News on Thursday, Mr Johnson said: "What we are going to do is look at our energy supply… to move away from dependence on Russian oil and gas.

"We are now going to do the dramatic steps that we need to take to have independent energy supply, so that we're no longer capable of being blackmailed by Putin."

Claiming Mr Johnson is well placed to persuade the Saudis to pump more oil, government insiders point to his praise for the prince's reform agenda when he was foreign secretary.

And controversially, unlike the United States, the UK has continued to sell arms to Saudi Arabia, defying critics who protested that the weapons were being used in the war on Yemen.

The prime minister's allies also point out that in a highly significant coup he persuaded the Saudis to commit to net zero by 2060 ahead of the COP26 summit in Glasgow last year.

Mr Johnson has been due to visit Saudi Arabia twice in recent years, most recently last month on a trip postponed because of the Ukraine crisis. A phone call was held instead.

And senior Conservative MPs believe that after the Saudis' phone call snub to President Biden, Mr Johnson could broker an oil deal which could be crucial to easing the energy crisis.

Ex-minister Steve Baker, a leading figure in the Tories' Net Zero Scrutiny Group, told The Daily Telegraph this week: "Boris has come into his own during this crisis.

"Now would be just the moment for him to help deliver more flows of oil and gas from Saudi Arabia so we can shut down Putin's war machine sooner."

Former Middle East minister Andrew Murrison said: "The UK has always maintained a positive and constructive relationship with Saudi based on dialogue. I'm sure that will be useful in the current context."

https://news.sky.com/story/saudi-ar...dom-announces-execution-of-81-people-12564322

 

[Technics 1210]

BoE raised interest rates to 0.75%

Predicts rate may have to rise to 2.25% by end of year.

Unfortunately this will not help as the inflation we are seeing is not due to excess money in the system, but commodity prices rising!

Pain for millions ahead.

 

[Technics 1210]

P&O Ferries sparks outrage by sacking 800 workers

P&O Ferries has sparked outrage after sacking 800 staff with plans to replace them with cheaper agency workers.

https://www.bbc.co.uk/news/business-60779001

 

[James]

<i>More on the above</I>

<b>A backlash against P&O Ferries is growing after the firm sacked 800 staff without giving them any notice.</b>

The government said it would review its contracts with P&O Ferries after it fired its employees, planning to replace them with cheaper agency staff.

Unions hit out against the dismissal, saying it marked a "dark day" in the shipping industry.

P&O said it was a "tough" decision but it would "not be a viable business" without the changes.

A chorus of cross-party MPs, however, described P&O Ferries' actions as "callous" and "disgraceful".

Nearly a quarter of P&O Ferries' staff were told via a video message on Thursday that it was their "final day of employment".

P&O Ferries sparks outrage by sacking 800 workers

The RMT union said it was one of the "most shameful acts in the history of British industrial relations".

There are protests planned on Friday across the ports of Dover, Liverpool, Hull and Larne.

P&O Ferries worker Andrew Smith said he felt "utter dismay" after working for the company for 22 years.

"It's our lives," he said. "It's how our families have grown up, knowing that this is what we do, and it's just been turned on its head within a matter of hours."

Mark Dickinson, general secretary of the maritime trade union Nautilus, told the BBC: "It's absolutely ripped the guts out of everybody."

Having worked in the sector for 40 years, he added: "It is a dark day in the shipping industry.

"I've seen some curveballs and some shocking developments over that time... but for a company to treat the legal process in such an underhand and callous way has shocked me."

In addition to taking part in demonstrations on Friday, both the RMT union and Nautilus are seeking legal advice on the dismissal.

Beth Hale, partner at employment law firm CM Murray, said P&O Ferries may well have breached employment law.

She told the BBC's Today programme that it should have consulted with unions and staff about potential dismissals and notified the government that hundreds of jobs were at risk.

"It's potentially an enormous breach, but they purport to be paying their way out of it," she added.

Sacked staff said the video message had referred to a "generous severance package" being offered, but no details were given.

Labour shadow transport secretary Louise Haigh pointed out that there were images circulating online, reportedly showing "handcuff-trained security, some wearing balaclavas, marching British crew off their ships.

"It is beneath contempt. The action of thugs," she said.

Maritime minister Robert Courts said he was "frankly angry at the way workers have been treated". He told the House of Commons P&O Ferries' actions were "wholly unacceptable".

"Reports of workers being given zero notice and escorted off their ships with immediate effect while being told cheaper alternatives would take up their roles, shows the insensitive nature by which P&O approached this issue," he said.

He added that he did not expect critical goods and services to be hit by the sudden drop in capacity, but travellers "should expect some disruption over the coming days".

The company has said services are unable to run over the next few days.

Former transport minister Sir John Hayes also criticised the "capricious, careless, callous" decision by P&O Ferries, and suggested the government should "recover any monies granted to P&O during the pandemic" in a bid to reverse it.

P&O Ferries claimed almost £15m in government grants in 2020, which included furlough payments for its employees.

Sir John added: "Don't let anyone tell me this is the free market. The free market put little girls in factories and boys down mines, and both at risk on the high seas; we thought those dark days had gone - P&O are either too dim to see that or too dastardly to know it.”

P&O Ferries said on Thursday that the decision to lay-off 800 workers was "tough" but said the business would not be viable without "making swift and significant changes now".

It said: "We have made a £100m loss year-on-year, which has been covered by our parent DP World. This is not sustainable. Without these changes there is no future for P&O Ferries."

P&O Ferries is one of the UK's leading ferry companies, carrying more than 10 million passengers a year before the pandemic and about 15% of all freight cargo in and out of the UK.

P&O was bought by DP World, the multi-national ports and logistics company based in Dubai in 2019.

At the time of purchase, its chairman Sultan Ahmed Bin Sulayem described it as a "strong, recognisable brand".

It paid a £270m dividend to shareholders in 2020.

However, like many transport operators, it saw demand slump in the pandemic.

Just a couple of months after the dividends announcement, it said it would cut 1,100 jobs after a downturn in bookings.

https://www.bbc.co.uk/news/business-60789612

 

[shortbread]

BoE raised interest rates to 0.75%

Predicts rate may have to rise to 2.25% by end of year.

Unfortunately this will not help as the inflation we are seeing is not due to excess money in the system, but commodity prices rising!

Pain for millions ahead.

QE always contributes towards inflation. Its the wrong time for Central banks to buy bonds, throw money at bounce back schemes, maintain near zero rates when supply is restricted. If supply is restricted then the bank plays an important role is choking demand by reducing cash flow, they did the opposite.

BoE has no other option than raise rates of inflation will spiral, wage pressure will rise and the pound will fall. There is pain ahead and no way to avoid it.

 

[James]

QE always contributes towards inflation. Its the wrong time for Central banks to buy bonds, throw money at bounce back schemes, maintain near zero rates when supply is restricted. If supply is restricted then the bank plays an important role is choking demand by reducing cash flow, they did the opposite.

BoE has no other option than raise rates of inflation will spiral, wage pressure will rise and the pound will fall. There is pain ahead and no way to avoid it.

Yes, we are in for a rocky period.

Just got to ride it out as best we can.

 

[Technics 1210]

QE always contributes towards inflation. Its the wrong time for Central banks to buy bonds, throw money at bounce back schemes, maintain near zero rates when supply is restricted. If supply is restricted then the bank plays an important role is choking demand by reducing cash flow, they did the opposite.

BoE has no other option than raise rates of inflation will spiral, wage pressure will rise and the pound will fall. There is pain ahead and no way to avoid it.

QE hasn’t contributed to inflation (it did contribute to asset inflation), but supply chain has. Oil, Gas, Food.

Raising rates will not effect inflation as we know it.

Typically if inflation is due to excess of money (QE), then raising rates might make a difference because the theory is higher rates, less spending, drop in prices. In current case, raising rates, will lower spending and affordability, but not resolve supply chain issues.

 

[DeadlyVenom]

A mate of mine is looking to buy a house at the moment and the prices are astronomically high, and way over valued.

It seems that even the threat of a war with Russia, rising energy prices and rising interest rates are not enough to deter buyers from really stretching themselves and going all out when buying a house.

This is surely unsustainable?

Property Crash within the next 2 years imo.

 

[shortbread]

In current case, raising rates, will lower spending and affordability, but not resolve supply chain issues.

No, but it will choke demand that will slowly help normalise prices. Slowing demand will also create the breathing space to normalise supply. It also helps reduce people piling on more cheap debt, which otherwise would continue to push up prices.

For far too long we have been fed on QE that its now become tough to wean off. We cant keep kicking the can down the road, Time to swallow the pill. If the interest rates are too high for people, they shouldn't have taken on unaffordable debt in the first place.

Apologies if I sound rude, but I'm a cynical Grinch who's been on a permanent face palm mode looking at how society has been money managing lately.

 

[Technics 1210]

No, but it will choke demand that will slowly help normalise prices. Slowing demand will also create the breathing space to normalise supply. It also helps reduce people piling on more cheap debt, which otherwise would continue to push up prices.

For far too long we have been fed on QE that its now become tough to wean off. We cant keep kicking the can down the road, Time to swallow the pill. If the interest rates are too high for people, they shouldn't have taken on unaffordable debt in the first place.

Apologies if I sound rude, but I'm a cynical Grinch who's been on a permanent face palm mode looking at how society has been money managing lately.

The trouble is demand for energy and food will always exist.

We can live without upgrading our phones every year, buying computer games, buying clothes every month, but lack of energy and food can result in deaths.

One way to reduce energy costs and resolve the supply chain issue is UK can start pumping it’s own oil, and subsidise farmers.

Globalisation has increased our dependency on imports, time to change all that.

 

[Technics 1210]

A mate of mine is looking to buy a house at the moment and the prices are astronomically high, and way over valued.

It seems that even the threat of a war with Russia, rising energy prices and rising interest rates are not enough to deter buyers from really stretching themselves and going all out when buying a house.

This is surely unsustainable?

Property Crash within the next 2 years imo.

Raising rates will no doubt reduce our addiction to debt (as a society).

QE along with near zero interest rates has no doubt help inflate the property market which is built on debt.

One of the main reasons BoE have not raised rates fast enough and high enough, is simply because those in debt with drown in repayments.

 

[James]

A mate of mine is looking to buy a house at the moment and the prices are astronomically high, and way over valued.

It seems that even the threat of a war with Russia, rising energy prices and rising interest rates are not enough to deter buyers from really stretching themselves and going all out when buying a house.

This is surely unsustainable?

Property Crash within the next 2 years imo.

The housing market at the moment is absolutely insane.

My region has historically featured some of the “lower on average” property prices in the UK.

But properties here seem to have gone up in price by 30-40% (or more) all of a sudden.

In some cases, it’s arguably good, because some of the nice smaller houses (1-2 bed) which were bought with a low deposit and were being slightly underrated in the past — like my own — are now clocking in at a price that reflects their value to the owner, gives them some priceless additional breathing room, and helps them to potentially climb the ladder with a larger equity pot.

But the majority of properties with 3 or more bedrooms are now becoming simply unaffordable, and for no particular reason. Numbers are being magically pulled out of the air at a rate of knots. £275k-£350k for a relatively bog standard 3 bed ex-council house built 60-70 years ago is a literal disgrace.

 

[Technics 1210]

Banks are about to relax lending requirements too, buy-to-let are being hit with new taxes, Sunak is about to raid inheritance and CG tax.

The housing market is crazy - we need a proper black swan moment in the UK now, even 2008 crash wasn’t heeded on.

Pump pump pump.

 

[Technics 1210]

The other thing, totally hilarious, when rates go up, banks raise mortgage rates instantly, but saving rates hardly change!

The entire nation should stop paying debt repayments, only then will the system collapse proper. In fact, time to make a run on the banks.

 

[shortbread]

The trouble is demand for energy and food will always exist.

We can live without upgrading our phones every year, buying computer games, buying clothes every month, but lack of energy and food can result in deaths.

One way to reduce energy costs and resolve the supply chain issue is UK can start pumping it’s own oil, and subsidise farmers.

Globalisation has increased our dependency on imports, time to change all that.

I agree, but O&G prices aren't high because of supply issues, but because a cartel manages supply. Both Saudis and emaratis have excess unutilised production capacity, but restrict supply to prop up prices.

Two big producers, Iran and Venezuela are under American sanctions. BoJo is in Saudi Arabia right now to beg MBS to increase supply. In the meantime supply them with arms so that they can bomb Yemenis to extinction.

I am digressing.

Rishi was throwing money at businesses through grants and bounce back loans, most of which have disappeared forever. Soon after this splurge house prices shot up, wonder why? £40-50 billion was pumped into the economy within a quarter and people wonder why house prices are rising so fast. Fastest way to spend 50k, down payment for property.

Imagine if we had this money right now to help the poor overcome rising energy bills?!

 

[Technics 1210]

I agree, but O&G prices aren't high because of supply issues, but because a cartel manages supply. Both Saudis and emaratis have excess unutilised production capacity, but restrict supply to prop up prices.

Two big producers, Iran and Venezuela are under American sanctions. BoJo is in Saudi Arabia right now to beg MBS to increase supply. In the meantime supply them with arms so that they can bomb Yemenis to extinction.

I am digressing.

Rishi was throwing money at businesses through grants and bounce back loans, most of which have disappeared forever. Soon after this splurge house prices shot up, wonder why? £40-50 billion was pumped into the economy within a quarter and people wonder why house prices are rising so fast. Fastest way to spend 50k, down payment for property.

Imagine if we had this money right now to help the poor overcome rising energy bills?!

BoJo has come back empty handed from SA/ME. The cartel will not increase supply because they are absolutely coining it with prices so high at the moment. I think supply chain is also a contributing factor especially after the Russia/Ukraine war, which is precisely why sanctions on Russian oil have not been implemented, if they were, Oil will shoot past 200/barrel, but yes, I agree, OPEC will manipulate output.

However saying this, Oil was in 60/barrel ball park for some time, and OPEC could’ve reduced supply to push prices up, didn’t happen. With Russia however, different story, as Russia provides on average 40% of O&G to Europe. If sanctions are in place for Russian oil, the demand for O&G will go through the roof, thus prices, until Europe finds supplies to plug the 40% hole, and when it does, Russian oil will be sanctioned.

As for Sunak, totally agree. The funds were spent on buying more assets, further distorting the markets. It wasn’t just property, equity markets too were fuelled with the Covid QE.

What the government should look at is first unifying the inflation is measured. The basket of goods keep changing, switching between RPI and CPI, effectively manipulating the inflation rate. Most economist believe we have already hit double digit inflation.

Government needs to improve affordability by reducing VAT to 5%, reducing fuel duty, reducing taxes, this is the only was I see going forwards.

 

[Cpt. Rishwat]

I agree, but O&G prices aren't high because of supply issues, but because a cartel manages supply. Both Saudis and emaratis have excess unutilised production capacity, but restrict supply to prop up prices.

Two big producers, Iran and Venezuela are under American sanctions. BoJo is in Saudi Arabia right now to beg MBS to increase supply. In the meantime supply them with arms so that they can bomb Yemenis to extinction.

I am digressing.

Rishi was throwing money at businesses through grants and bounce back loans, most of which have disappeared forever. Soon after this splurge house prices shot up, wonder why? £40-50 billion was pumped into the economy within a quarter and people wonder why house prices are rising so fast. Fastest way to spend 50k, down payment for property.

Imagine if we had this money right now to help the poor overcome rising energy bills?!

I know plenty of businessmen who were using bounceback loans of 50k to improve their homes.

 

[IMMY69]

Regarding housing, it's not just house prices but the rental market in London is on fire too.

 

[Cpt. Rishwat]

Houses that come on the market are sold within days. No wonder prices are shooting up. I feel so sorry for young people who are trying to get on the property ladder.

 

[Technics 1210]

Don't confuse 'sold' with 'acceptance of offer'

Average completion end to end exceed 8 weeks.

 

[Cpt. Rishwat]

Don't confuse 'sold' with 'acceptance of offer'

Average completion end to end exceed 8 weeks.

For the person looking for a house it essentially means the same thing. Someone who is buying a house isn't going to wait around for 8 weeks to see if the contract has been signed, they'll assume the house is off the market and look somewhere else.

 

[Technics 1210]

For the person looking for a house it essentially means the same thing. Someone who is buying a house isn't going to wait around for 8 weeks to see if the contract has been signed, they'll assume the house is off the market and look somewhere else.

No it doesn't.

Someone buying a house does have to wait for a few weeks. Once an offer is accepted then the entire legal and conveyancer process begins. Thus can take between weeks to months. Not to mention chain issues.

Buying a house isn't like buying Lego from Amazon prime.

 

[Cpt. Rishwat]

No it doesn't.

Someone buying a house does have to wait for a few weeks. Once an offer is accepted then the entire legal and conveyancer process begins. Thus can take between weeks to months. Not to mention chain issues.

Buying a house isn't like buying Lego from Amazon prime.

Don't think we are talking about the same thing. I am talking about the person who is informed a house they were looking at has been "sold" or if you like an offer accepted. Most will then assume the sale will go through and look elsewhere. I think you are talking about the person who has had the offer accepted.

 

[mazkhan]

The only reason the housing is going up because there isn't enough housing and too many people in particular mass immigration.

Add 100000s of ukranians in the future to the mix as well and the countless ones hitting the dinghy rapids across the English Channel.

All these people need housing so rents will go up and so will property prices .

Small island too many people in particular from the third world started by Tony Blair.

 

[shortbread]

As for Sunak, totally agree. The funds were spent on buying more assets, further distorting the markets. It wasn’t just property, equity markets too were fuelled with the Covid QE.

What the government should look at is first unifying the inflation is measured. The basket of goods keep changing, switching between RPI and CPI, effectively manipulating the inflation rate. Most economist believe we have already hit double digit inflation.

Government needs to improve affordability by reducing VAT to 5%, reducing fuel duty, reducing taxes, this is the only was I see going forwards.

Nope inflation figures will continue to be skewed in favour of minimising the inflation on paper, and the cowardly mainstream british media will never question this!

But as long as people feel the pinch, there is no point in brushing it under the carpet.

The Conservatives will never reduce VAT, because that would mean they would have to look for tax revenue elsewhere. Plus businesses, retailers will simply push up prices to take advantage of lower VAT, this govt. is filled with lobbyists that they would simply close their eyes if that happens.

 

[shortbread]

The only reason the housing is going up because there isn't enough housing and too many people in particular mass immigration.

Add 100000s of ukranians in the future to the mix as well and the countless ones hitting the dinghy rapids across the English Channel.

All these people need housing so rents will go up and so will property prices .

Small island too many people in particular from the third world started by Tony Blair.

UK is not a small country, it's sparsely populated, look at the map!

UK's economy is driven by the housing bubble. All the London centric financial/banking institutions hold housing related debt, that is their no.1 business. London stock market has been stagnant for years due to lack of innovation or tech giants. So where do they generate revenue....housing!

The biggest business in the country is keep pushing up house prices - sell more debt, keep pushing up house prices - sell more debt.

So if interest rates rise, BoE will slacken rules on loans, reduce down payments, offer 95-100-105+% loans. They need to keep selling debt to survive. It's already happening, because the system will shake if house prices fall.

The govt. local and Westminster for its part will always choke supply. Is there a lack of land....No, Is there a lack of demand....No, so why has supply been struggling for so many decades. Every govt. bureaucrat is invested in property, buy to lets, commercial, what not.

The UK establishment will never allow the bubble to pop, but if it does.....?!

 

[James]

Interest rates have been raised from 0.5% to 0.75% - their highest level since March 2020.

The Bank of England announced its decision a day after US interest rates were raised for the for the first time since 2018.

Since the global financial crisis of 2008, UK interest rates have been at historically low levels.

In March 2020 the rate was just 0.1%.

So how high could interest rates go?

Few had been expecting UK interest rates to top 1.25% this year.

But the Office for Budgetary Responsibility (OBR) - the government's independent economic advisor - looked at the impact of higher and more persistent inflation.

This can happen if people think price rises will continue.

Businesses could raise prices to keep making a profit and workers could demand wage increases to maintain living standards.

The OBR has suggested that if this occurs interest rates could reach 3.5%.

BBC

 

[IMMY69]

Don't think we are talking about the same thing. I am talking about the person who is informed a house they were looking at has been "sold" or if you like an offer accepted. Most will then assume the sale will go through and look elsewhere. I think you are talking about the person who has had the offer accepted.

In London exchanges are up from last year too so as a buyer you maybe missing out on other opportunities if you wait 8-10 weeks in the hope that the sale falls through.
Stocks are down and demand is up so as of now it very much is a sellers market.

 

[IMMY69]

Interest rates have been raised from 0.5% to 0.75% - their highest level since March 2020.

The Bank of England announced its decision a day after US interest rates were raised for the for the first time since 2018.

Since the global financial crisis of 2008, UK interest rates have been at historically low levels.

In March 2020 the rate was just 0.1%.

So how high could interest rates go?

Few had been expecting UK interest rates to top 1.25% this year.

But the Office for Budgetary Responsibility (OBR) - the government's independent economic advisor - looked at the impact of higher and more persistent inflation.

This can happen if people think price rises will continue.

Businesses could raise prices to keep making a profit and workers could demand wage increases to maintain living standards.

The OBR has suggested that if this occurs interest rates could reach 3.5%.

BBC

Rising cost yet low GDP.
Raising interest rates in the hope we steer away from stagflation.

Interest rates are the only practical tool available at the moment.

 

[ElRaja]

this thread is an excellent example of not seeing the wood from the trees.

are house prices high, yes, but not by historic norms, the average house price in the UK in 2008 was £190,000, which inflation adjusted in todays terms is £280,000, which is £6k above current average house prices, so in historical inflation adjusted terms houses are actually cheaper now.

so what gone wrong, stagnant wage growth in a high inflation environment, especially for young professionals, middle aged and older people dont necessarily have much problem with house prices, equity appreciation makes deposits affordable and they invariably have the combined salaries to cover more expensive housing.*

the real issue is for youngsters and those not on the property ladder, a reduction in disposable income means saving for a deposit is virtually impossible. when you dig into the figures and understand the effects of QE, not only is it not surprising that houses are still being gobbled up at these supposedly inflated prices, but it becomes obvious that this will continue for a bit longer.

ive been long enough on this forum to know ill be quoted here, so heres my prediction, house prices to rise this year and the next, with a likely correction (not a crash) in 2025 or 2026.

*an average house price of 275,000 at 15% deposit is a combined salary of £52,000, which is not difficult for a professional couple.

 

[Technics 1210]

this thread is an excellent example of not seeing the wood from the trees.

are house prices high, yes, but not by historic norms, the average house price in the UK in 2008 was £190,000, which inflation adjusted in todays terms is £280,000, which is £6k above current average house prices, so in historical inflation adjusted terms houses are actually cheaper now.

so what gone wrong, stagnant wage growth in a high inflation environment, especially for young professionals, middle aged and older people dont necessarily have much problem with house prices, equity appreciation makes deposits affordable and they invariably have the combined salaries to cover more expensive housing.*

the real issue is for youngsters and those not on the property ladder, a reduction in disposable income means saving for a deposit is virtually impossible. when you dig into the figures and understand the effects of QE, not only is it not surprising that houses are still being gobbled up at these supposedly inflated prices, but it becomes obvious that this will continue for a bit longer.

ive been long enough on this forum to know ill be quoted here, so heres my prediction, house prices to rise this year and the next, with a likely correction (not a crash) in 2025 or 2026.

*an average house price of 275,000 at 15% deposit is a combined salary of £52,000, which is not difficult for a professional couple.

You based all the above on an average price? Try London prices, and I mean outer London.

The powers to be will not allow a property market crash, hence near zero rates for 13 odd years and now you have mortgage holder bricking it with even 0.25% rate hike. A crash will destroy banks first and foremost.

QE with near zero rates has inflated assets, and if wages increase in line with asset price inflation then it leads to even more inflation, s self serving prophecy.

The people buying are so with the help of Mum & Dad, and M&D are releasing equity on purchases they made in the 80s/90s.

Also if you look at HMRC records, almost half the properties purchased are by foreigners.

 

[ElRaja]

You based all the above on an average price? Try London prices, and I mean outer London.

The powers to be will not allow a property market crash, hence near zero rates for 13 odd years and now you have mortgage holder bricking it with even 0.25% rate hike. A crash will destroy banks first and foremost.

QE with near zero rates has inflated assets, and if wages increase in line with asset price inflation then it leads to even more inflation, s self serving prophecy.

The people buying are so with the help of Mum & Dad, and M&D are releasing equity on purchases they made in the 80s/90s.

Also if you look at HMRC records, almost half the properties purchased are by foreigners.

i live in London, and ive bought in London so i know the London market. you also have to consider the median wage in london is pbly around £40k, so two people can afford a mortgage of around £360k, so the issue becomes deposit again, cos u need around 70k incl expenses, but if u do save, a couple can get on the property ladder with a slightly below average property. its difficult, but not as impossible as the msm makes out.

totally agree on the issue of foreign buyers, ive seen developments where i know for a fact foreigners are buying flats wholesale, but its far less of an issue once you get outside zone 3, cos most foreigners are clueless about where actual value is in London, and just follow a few shiny brochures or whatever their advisors tell them.

however i have said nothing which disagrees with the rest of your analysis, which is why i stated you might see a price correction, but not a crash around 2025 because the government would step in to support, either via tax holidays or easing lending rules.

 

[IMMY69]

i live in London, and ive bought in London so i know the London market. you also have to consider the median wage in london is pbly around £40k, so two people can afford a mortgage of around £360k, so the issue becomes deposit again, cos u need around 70k incl expenses, but if u do save, a couple can get on the property ladder with a slightly below average property. its difficult, but not as impossible as the msm makes out.

totally agree on the issue of foreign buyers, ive seen developments where i know for a fact foreigners are buying flats wholesale, but its far less of an issue once you get outside zone 3, cos most foreigners are clueless about where actual value is in London, and just follow a few shiny brochures or whatever their advisors tell them.

however i have said nothing which disagrees with the rest of your analysis, which is why i stated you might see a price correction, but not a crash around 2025 because the government would step in to support, either via tax holidays or easing lending rules.

I would add that there is now a far less reliance on the bank of mum and dad with new developments flying off the shelves due to the various schemes like 5pct deposit and shared ownership etc.

 

[Technics 1210]

i live in London, and ive bought in London so i know the London market. you also have to consider the median wage in london is pbly around £40k, so two people can afford a mortgage of around £360k, so the issue becomes deposit again, cos u need around 70k incl expenses, but if u do save, a couple can get on the property ladder with a slightly below average property. its difficult, but not as impossible as the msm makes out.

totally agree on the issue of foreign buyers, ive seen developments where i know for a fact foreigners are buying flats wholesale, but its far less of an issue once you get outside zone 3, cos most foreigners are clueless about where actual value is in London, and just follow a few shiny brochures or whatever their advisors tell them.

however i have said nothing which disagrees with the rest of your analysis, which is why i stated you might see a price correction, but not a crash around 2025 because the government would step in to support, either via tax holidays or easing lending rules.

I do not think we are agreeing at all. We are stating the same observations but not the same conclusions.

My point is the housing market in the UK is artificially propped up through QE and ZIRP since 2008 because the Government along with the banks will not allow the housing market to crash because banks are leveraged in debt to their eye balls. This is why policies like relax lending, freeze on stamp duty, ZIRP, and QE, are designed to keep the market artificially propped up.

Add to to this the foriegn purchases contribute to 'pent' up demand because foreigners don't actually live in the property they purchase, they just invest in strong FX assets, property in GBP. They don't really care about location because they know QE will inflate their investment.

The correction should've happened post 2008, it didn't, instead QE has inflated assets. Plus with ZIRP, society is now on a debt binge. This is precisely why during the Covid pandemic there was a freeze on repossesions despite workers on furlough cos the majority don't have a penny saved.

The 0.25% rate rise is a nominal rise, not a real rise. A real rise would have the rates above level of inflation, and if the rates were at 6%, the UK economy would collapse. This is not a sign of a stable let alone healthy economy, it's a sign that the economy is drowning in debt.

It's easy for you to say a couple need to save xyz, and buy a lower than average property etc but this is far from the reality. Rates rise and mortgage rates rise, why not saving rates? Cos the economy is broke and the government is encouraging people to take their saving and invest in QE inflated assets such as property and stock markets.

You must be one of the lucky 10% who earn more than the national average who is on the property ladder who has little to no debt.

Yes about MSM, they will never report on the hardship and reality of property market because it would usher in a sense of fear, and when that happens, it's sell sell sell.

When the next financial crash happens (because it will), the BoE will not have any ammunition to tackle the crash, and if you believe near zero rates coupled with relentless QE in the past 13 years is a sign of a healthy and stable economy then we will just have to agree to disagree.

 

[ElRaja]

I do not think we are agreeing at all. We are stating the same observations but not the same conclusions.

My point is the housing market in the UK is artificially propped up through QE and ZIRP since 2008 because the Government along with the banks will not allow the housing market to crash because banks are leveraged in debt to their eye balls. This is why policies like relax lending, freeze on stamp duty, ZIRP, and QE, are designed to keep the market artificially propped up.

only point ill make is that the actual asset price inflation started in the 00s when interest rates were brought to generational lows without implementing any stringent regulation on bank lending. QE only became the tool of choice once interest rates didnt have anywhere lower to go, but i don't disagree with any of that in general.

Add to to this the foriegn purchases contribute to 'pent' up demand because foreigners don't actually live in the property they purchase, they just invest in strong FX assets, property in GBP. They don't really care about location because they know QE will inflate their investment.

these are mainly located within zone 1 and 2 in London, as soon as you get outside you rarely see ghost developments.

The correction should've happened post 2008, it didn't, instead QE has inflated assets. Plus with ZIRP, society is now on a debt binge. This is precisely why during the Covid pandemic there was a freeze on repossesions despite workers on furlough cos the majority don't have a penny saved.

The 0.25% rate rise is a nominal rise, not a real rise. A real rise would have the rates above level of inflation, and if the rates were at 6%, the UK economy would collapse. This is not a sign of a stable let alone healthy economy, it's a sign that the economy is drowning in debt.

they would never even come close to making real rates positive. this country has an unpayable pile of debt, the only way to deal with it is to inflate it away and hope that the collateral damage in the process is worth it.

It's easy for you to say a couple need to save xyz, and buy a lower than average property etc but this is far from the reality. Rates rise and mortgage rates rise, why not saving rates? Cos the economy is broke and the government is encouraging people to take their saving and invest in QE inflated assets such as property and stock markets.

You must be one of the lucky 10% who earn more than the national average who is on the property ladder who has little to no debt.

Yes about MSM, they will never report on the hardship and reality of property market because it would usher in a sense of fear, and when that happens, it's sell sell sell.

When the next financial crash happens (because it will), the BoE will not have any ammunition to tackle the crash, and if you believe near zero rates coupled with relentless QE in the past 13 years is a sign of a healthy and stable economy then we will just have to agree to disagree.

two points, one i never said saving was easy, i literally said it was difficult, i said affordability (as a couple) is easier than people make out because the median wage is London is considerably higher than outside.

also i never said the economy was healthy, i just said that as imo affordability is not as stretched based on historical norms therefore i believe that buying pressure will continue, also as u say no government can afford to let the housing market crash because it would mean they wouldn't be elected for a generation.

as the old saying goes, Markets can stay irrational longer than you can stay solvent. i dont know about your home status, but if you are an owner, or a prospective buyer would you sell your house now or sit out until a crash? i ask this because as i say i recognise what u say, but i gave up trying to wait for crashes a long time ago, imo best to stay invested and keep a rainy day fund to try to cover any eventualities.

 

[James]

House price growth at 17-year high, says Nationwide

House prices grew at the fastest annual pace for more than 17 years in March despite the cost of living crisis, according to Nationwide.
Annual growth in house prices hit 14.3% in February, the mortgage lender said, the strongest pace since November 2004.
The cost of a typical UK home reached a new record high of £265,312, rising £33,000 in the past year, it said.
Prices are being pushed higher by robust demand, limited supply and a strong jobs market, it added.
Nationwide, which is one of the UK's biggest mortgage lenders, said the housing market had "a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs".
Households in the UK are being squeezed by a cost of living crisis, with prices rising at their fastest rate for 30 years as fuel, energy and food costs surge.
Mortgage costs are also rising after the Bank of England raised interest rates three times in four months to try to help lower that price inflation.
But these factors have not dampened acceleration in house price growth, Nationwide said.
House prices are now more than fifth higher than early 2020 when the pandemic hit.
Wales, south-west England and East Anglia saw the highest rates of growth, while London - at 7% - had the lowest rate.
"A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices," said Robert Gardner, Nationwide's chief economist.
The UK labour market is strong - job vacancies hit a record high in October last year - and unemployment has continued to fall, which may have helped the housing market, he said.
In addition, some people built up "significant savings" during lockdowns, which is "likely to have helped prospective homebuyers raise a deposit".

Despite these factors, Nationwide expects house price growth to slow in the year ahead, due to high inflation rates and interest rate rises.
The Office for Budget Responsibility (OBR), an independent body that makes economic forecasts for the government, predicted in October last year that house prices would fall in 2022.
It said last week that people in the UK were facing the biggest drop in living standards on record as wages fail to keep pace with rising prices.
Many people took stock of how they lived and worked during Covid lockdowns, leading to a race for space among buyers that was fuelled by a stamp duty holiday.
In recent months, there has been a shortage of homes on the market to match demand, which has pushed up asking prices.
Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said that the housing market was going from "strength to strength" but that March "probably marks the peak for house price growth".
"For starters, mortgage rates look set to rise further in the coming months," she said.
"In addition, we expect housing demand to be hit by a sharp drop in households' real disposable incomes."

The Nationwide's figures came as the Office for National Statistics (ONS) revised up its UK economic growth estimate for the October to December period last year.
It estimated that gross domestic product (GDP) grew by 1.3% in the quarter, as opposed to its previous estimate of a 1% increase.
As a result, the ONS said the level of GDP was now 0.1% below the pre-Covid period of the final quarter of 2019, compared with its previous estimate of 0.4% below.
The ONS figures also indicated that pressures on household finances were leading people to dip into their savings.
The household savings ratio dropped to 6.8% in the October-to-December period, down from 7.5% in the previous three months.
"Savings were at their lowest level since the start of the pandemic as household spending rose, mainly driven by rising prices," said Darren Morgan, ONS director of economic statistics.

 

[James]

<b>House price growth at 17-year high, says Nationwide</b>

House prices grew at the fastest annual pace for more than 17 years in March despite the cost of living crisis, according to Nationwide.

Annual growth in house prices hit 14.3% in February, the mortgage lender said, the strongest pace since November 2004.

The cost of a typical UK home reached a new record high of £265,312, rising £33,000 in the past year, it said.

Prices are being pushed higher by robust demand, limited supply and a strong jobs market, it added.

Nationwide, which is one of the UK's biggest mortgage lenders, said the housing market had "a surprising amount of momentum given the mounting pressure on household budgets and the steady rise in borrowing costs".

Households in the UK are being squeezed by a cost of living crisis, with prices rising at their fastest rate for 30 years as fuel, energy and food costs surge.

Mortgage costs are also rising after the Bank of England raised interest rates three times in four months to try to help lower that price inflation.

But these factors have not dampened acceleration in house price growth, Nationwide said.

House prices are now more than fifth higher than early 2020 when the pandemic hit.

Wales, south-west England and East Anglia saw the highest rates of growth, while London - at 7% - had the lowest rate.

"A combination of robust demand and limited stock of homes on the market has kept upward pressure on prices," said Robert Gardner, Nationwide's chief economist.

The UK labour market is strong - job vacancies hit a record high in October last year - and unemployment has continued to fall, which may have helped the housing market, he said.

In addition, some people built up "significant savings" during lockdowns, which is "likely to have helped prospective homebuyers raise a deposit".

Despite these factors, Nationwide expects house price growth to slow in the year ahead, due to high inflation rates and interest rate rises.

The Office for Budget Responsibility (OBR), an independent body that makes economic forecasts for the government, predicted in October last year that house prices would fall in 2022.

It said last week that people in the UK were facing the biggest drop in living standards on record as wages fail to keep pace with rising prices.

Many people took stock of how they lived and worked during Covid lockdowns, leading to a race for space among buyers that was fuelled by a stamp duty holiday.

In recent months, there has been a shortage of homes on the market to match demand, which has pushed up asking prices.

Gabriella Dickens, senior UK economist at Pantheon Macroeconomics, said that the housing market was going from "strength to strength" but that March "probably marks the peak for house price growth".

"For starters, mortgage rates look set to rise further in the coming months," she said.

"In addition, we expect housing demand to be hit by a sharp drop in households' real disposable incomes."

The Nationwide's figures came as the Office for National Statistics (ONS) revised up its UK economic growth estimate for the October to December period last year.

It estimated that gross domestic product (GDP) grew by 1.3% in the quarter, as opposed to its previous estimate of a 1% increase.

As a result, the ONS said the level of GDP was now 0.1% below the pre-Covid period of the final quarter of 2019, compared with its previous estimate of 0.4% below.

The ONS figures also indicated that pressures on household finances were leading people to dip into their savings.

The household savings ratio dropped to 6.8% in the October-to-December period, down from 7.5% in the previous three months.

"Savings were at their lowest level since the start of the pandemic as household spending rose, mainly driven by rising prices," said Darren Morgan, ONS director of economic statistics.

https://www.bbc.co.uk/news/business-60938262

 

[Cpt. Rishwat]

only point ill make is that the actual asset price inflation started in the 00s when interest rates were brought to generational lows without implementing any stringent regulation on bank lending. QE only became the tool of choice once interest rates didnt have anywhere lower to go, but i don't disagree with any of that in general.



these are mainly located within zone 1 and 2 in London, as soon as you get outside you rarely see ghost developments.



they would never even come close to making real rates positive. this country has an unpayable pile of debt, the only way to deal with it is to inflate it away and hope that the collateral damage in the process is worth it.

Step forward Rishi Sunak. It's time to take the reigns.

 

[MenInG]

The day that 22 million households have been dreading has finally arrived.

April Fool's Day sees the energy price cap rising by a record sum to help account for surging wholesale prices - with bills yet to even reflect the impact of Russia's war in Ukraine.

 

[MenInG]

Step forward Rishi Sunak. It's time to take the reigns.

anagram?

I read as "resign"

 

[ElRaja]

[/B]
Step forward Rishi Sunak. It's time to take the reigns.

no one calling him dishy anymore, that only happens when hes giving ppl money, lol.

 

[silentkiller187]

Cost of living: Five million households now in 'fuel stress' as energy price cap rises to almost £2k


There are calls for an emergency budget as an unprecedented increase in the energy price cap is applied, with warnings of worse to come when bills start to reflect the effects of Russia's war in Ukraine.

The day that 22 million households have been dreading has finally arrived.

April Fool's Day sees the energy price cap rising by a record sum to help account for surging wholesale prices - with bills yet to even reflect the impact of Russia's war in Ukraine.

It was announced in February that customers on default tariffs paying by direct debit would see an average annual increase of £693, from £1,277 to £1,971 from 1 April while pre-payment customers are enduring a hike of £708 from £1,309 to £2,017.

A think-tank specialising in living standards warned that the bill shock would push 2.5 million families in England alone into so-called "fuel stress", taking the total number of homes spending at least 10% of their incomes on energy to five million.

But the squeeze from bills is not limited just to energy with the likes of broadband, mobile and water bills, council tax and national insurance contributions also rising this month, with help from the chancellor to offset the pain only going so far.

Kit Malthouse, the policing minister, acknowledged that the impact of higher costs was "very tough" and that the chancellor was trying to help but "can't go all the way and ameliorate it all I'm afraid".

"The chancellor is trying to do a very diffiicult thing, which is to balance the requirements of the British people for assistance at a time of need against the long time financial health of the whole country," Mr Malthouse told Sky News.

Labour leader Sir Keir Starmer, who is calling for a windfall tax on energy company to pay for more help for consumers with bills, said it was a "very significant and worrying day for millions of people".

He told Sky News: "People don't want a revolution. They do want to know 'how am I going to pay my energy bill?"

Why is my energy bill rising so much?

The cost of energy is, by far, the single biggest driver of rising prices across the economy as it is reflected in a range of things from food to steel prices, at petrol stations and, of course, in your household energy bill.

While oil costs were going up last year as demand returned following COVID lockdowns, a far more toxic cocktail of price pressures was forcing up natural gas costs.


They hit unprecedented levels in the autumn and spiked again just before Christmas.

European nations have suffered in particular because of historically low stocks at a time of strong competition globally for gas.

In the UK, a total of 31 household suppliers have collapsed over the past 15 months - ultimately paying the price for poor business models that could not handle price shocks.

But only part of that shock is now reflected in the energy price cap.

How worried should I be about next winter?

It is predicted there is worse to come in October, when the cap is due to be updated again.

According to the latest analysis from energy research specialist Cornwall Insight, the average bill could rise by a further £500 as it takes into account, for the first time, the latest wave of raw energy price spikes caused by Russia's invasion of Ukraine and the resulting sanctions on Moscow.

While it is early days, the prospect of such a rise is frightening heading into the cold winter months, with charities warning that the choice between heating and eating for millions will become even more stark.

What is the government doing to help?

Rishi Sunak had already revealed, in February, how he would support families with rising energy bills.

A £9.1bn package sees 80% of households receiving £350 in total.

It is broken down by a £150 rebate for properties in council tax bands A-D in England.

All properties secure a £200 reduction in energy bills, but only from October, through the Energy Bills Support Scheme.

However, that money will be recovered, gradually, through bills at a later date.

The Warm Homes Discount scheme is being extended until 2025/26 helping three million households while it is estimated that funding for energy efficiency measures will help 450,000 homes cut £300 off their bills.

Critics have accused him of missing a big opportunity during last week's spring statement, with Labour calculating that families stand to be more than £2,600 worse off over the next 12 months.

But the government's message has been consistent: making work pay is best for families and the public finances too as the country's debt mountain balloons to £2.3trn.

It has pointed to rises in the national minimum wage and national living wage coming into effect today as the crown jewel of its support, saying the lowest-paid 2.5 million people will benefit from the lift.

Business Secretary Kwasi Kwarteng said: "While no government can control the global factors pushing up the cost of everyday essentials, we will absolutely act wherever we can to mitigate rising costs.

"With more employees on the payroll than ever before, this government will continue to stand up for workers."

However, the TUC demanded Mr Sunak return to the Commons as millions of families were at "breaking point".

The union organisation argued there was a clear case for an "emergency budget" to boost the minimum wage to at least £10 an hour and cut energy bills through new grants paid for by a windfall tax on energy and oil company profits.

The TUC also made the case for the taxpayer to provide a "real boost to Universal Credit to cover rising bills".

https://news.sky.com/story/cost-of-...-energy-price-cap-rises-to-almost-2k-12579010

 

[James]

<b>Warning of fresh energy bill shock in October as prices rise again</b>

People have been warned to brace for another huge rise in energy bills when the next cap takes effect in October.

This could add another £629 a year to a typical bill, on top of Friday's unprecedented £700-a-year rise, says energy consultancy Cornwall Insight.

The expected rise in bills just as colder weather kicks in has prompted calls for fresh government support to those struggling to pay.

Energy prices have been affected by the Ukraine war and pressure on suppliers.

The most up-to-date prediction from Cornwall Insight would, if accurate, push annual energy bills for a household using a typical amount of gas and electricity to up to £2,600 from October.

A typical bill is expected to fall back to the current level in summer 2023, although longer-term forecasts are tricky.

Bill Bullen, the boss of Utilita, warned that elderly people and children were at serious risk over the next winter because of a lack of heating.

"We are going to see an extra £500 or £600 added to bills in October, and frankly the chancellor's going to have to fund that entirely for low-income households," he told the BBC.

"He won't be able to afford to take this problem away for everybody... but for customers who can't respond to that price [increase], that's where the help needs to be targeted."

The warning comes on top of a huge rise in what energy suppliers can charge customers from Friday.

The £693 a year rise in a typical energy bill will affect 18 million households, with 4.5 million customers on prepayment meters facing an even bigger increase of £708 a year.

At the same time, a host of bill hikes take effect with council tax, water bills and car tax going up for some on 1 April.

Minimum wage rates are rising which, along with some financial support from the government, is partially softening the blow.

Why are prices rising so quickly?

Prices in general are rising at their fastest rate for 30 years, but the sudden increase in the cost of energy is the most significant for individuals.

New official figures suggest four in 10 bill-payers have been finding it very, or somewhat, difficult to afford their energy costs.

The governor of the Bank of England, Andrew Bailey, said the country is facing the biggest single shock from energy prices since the 1970s.

It is the largest increase, by far, in the energy regulator Ofgem's price cap, since it was introduced.

The cap, set every six months for England. Wales and Scotland, is designed to protect domestic customers from the volatility of wholesale energy prices.

Chris O'Shea, chief executive of Centrica, which owns the UK's largest supplier British Gas, said his business was supporting struggling customers and was giving grants to those most in need.

"We would love to do more. The reality is that for a retail energy company, the market has gone through quite a change, and profits have reduced quite substantially," he told the BBC's Big Green Money Show.

However, he accepted that profits had risen sharply for the heavily taxed exploration arm of the business.

The Office for National Statistics said that low earners, renters, parents, people with disabilities, unemployed people and divorcees were least able to afford a bill shock.

The government has said it was taking "decisive action" to help people with the cost of living, including a £200 reduction to energy bills in October - which needs to be paid back in instalments, and a £150 reduction in council tax bills for 80% of billpayers.

Speaking to BBC Breakfast, Sir Keir Starmer, the leader of the Labour party, branded the government's response as "pathetic".

He accused the government of forcing people to choose between heating their homes or eating.

He said that the Labour party would introduce a one-off windfall tax on the profits of oil and gas companies and use the money to help households struggling to cope with rising energy bills.

But Chancellor Rishi Sunak told the BBC's Newscast: "I'm confident in what we've done. I know it's tough for people. We're facing a very difficult situation with the price of things going up and I want to do what we can to ameliorate some of that, but I'm also honest with people that we can't ameliorate all of it, sadly."

https://www.bbc.co.uk/news/business-60959357

 

[IMMY69]

One of the major suppliers system crashed because too many people were trying to register their meeting readings by midnight yesterday....

What times we're living in...

 

[James]

<b>Energy rationing not part of UK approach, minister says</b>

The transport secretary has said energy will not be rationed in the UK, despite pressure on supplies globally.

Grant Shapps ruled this out after Labour's shadow business secretary suggested ministers might need to prepare for rationing.

Some European countries have moved towards rationing as energy costs rise and supplies tighten.

Mr Shapps told the BBC the energy strategy would be announced later this week.

Plans to expand nuclear and wind power are expected to form part of the strategy, which has been delayed amid cost concerns.

When pressed on whether he can completely rule out energy rationing, he told the BBC's Sunday Morning programme: "Yes, I can. It's not the route that we want to go down."

He was responding to Labour's shadow business secretary Jonathan Reynolds who told the programme: "The government should be preparing, not necessarily in public for that situation."

But Mr Reynolds later told Times Radio the UK should be not be rationing energy right now.

As Mr Shapps ruled out rationing, he said wind farms were an "immense invisible national resource" that could be exploited more and that it was better to build significant wind power offshore.

While he said there may be occasions where onshore wind farms made sense, he added: "I don't think we want to cover every inch of land in onshore wind farms."

In turn offshore wind "performs better because it tends to be windier" and can be built "much, much bigger", he said.

He made the comments after he told Sky News that he did not favour "a vast increase in onshore wind farms", calling them an "eyesore for communities".

Sources have told the BBC onshore wind will feature in the government's energy strategy, despite some opposition within the cabinet.

The BBC previously reported that cabinet ministers were split over the idea of relaxing planning laws in England to enable more onshore wind farms - an idea backed by Business Secretary, Kwasi Kwarteng.

In an interview with the Sunday Telegraph, Mr Kwarteng said there has to be "community consent" for onshore wind and fracking, a controversial method of mining for shale gas.

The BBC has reported one option ministers were considering was lowering energy bills for people near wind turbines.

He confirmed that ministers have agreed to set up a new body to oversee delivery of new nuclear plants.

The prime minister has previously said he wants 25% of UK energy generated by nuclear by 2050, but the Treasury has raised concerns about some of the costs of these targets.

Meanwhile, a move away from the use of Russian oil and gas is expected to be addressed in the government's energy strategy, which will also outline plans to hit net-zero emissions targets.

The UK government has already said it will phase out imports of Russian oil by the end of the year.

Russian imports account for 8% of total UK oil demand and 5% of gas supplies and the government is attempting to shore up energy security in the UK following a spike in oil and gas prices since the start of the Ukraine war.

A £700-a-year rise in energy costs has put pressure on household budgets in the UK, at a time when other hikes to bills are taking effect.

https://www.bbc.co.uk/news/uk-politics-60973234

 

[Jadz]

The UK government is ideologically, almost obsessively, attached to privatization and not intervening in the almighty 'market.' It is one reason the Establishment conspired to defeat Jeremy Corbyn - because his manifesto included the re-nationalization of utility companies. The massive increases in fuel costs in the UK - blamed on Russia (the convenient scapegoat for all problems facing the West) - compared with those of France exposes the utter lies and hypocrisy, lack of empathy and concern for the most vulnerable in society, by the Tory regime. This is the most morally bankrupt British government ever - a worthy inheritor of privatizing extremist Margaret Thatcher.

'Kwasi Kwarteng has dismissed claims No 10 is doing too little to tackle energy costs compared with France, where increases have been drastically curbed by state intervention.

Emmanuel Macron’s government has limited gas price increases to 12.6% and promised further help after the cap ends in April — when UK households face a 54% rise in energy bills.

It means Brits can expect to pay an extra £693 on energy when the regulator Ofgem lifts the cap on default tariffs to £1,971.

The French — who get 70% of electricity from nuclear plants — have also restricted increases in power costs to 4% with largely state-owned supplier EDF offering discount prices.


https://metro.co.uk/2022/02/07/why-are-energy-bills-so-much-cheaper-in-france-16059524/

 

[James]

<b>Energy strategy: Boris Johnson defends plan amid cost of living crisis</b>

The PM has defended the government's new energy strategy, following criticism it does little to help people struggling with soaring bills.

Boris Johnson said it was a "long-term plan" focused on energy supply and the government had already introduced other policies to tackle rising energy costs.

The strategy, which aims to increase UK energy independence, includes plans to boost nuclear, wind and hydrogen power.

But Labour said it was "too little, too late" to help with rising costs.

And experts called for a bigger focus on energy efficiency and insulation to help bring bills down.

Consumers are facing huge increases in energy bills after the Russian invasion of Ukraine pushed gas prices even higher.

Speaking at the Hinkley Point C nuclear power plant, Mr Johnson said the strategy was about "tackling the mistakes of the past and making sure that we are set well for the future".

Citing policies including a £6bn energy efficiency fund and support for heat pumps, he said the government was "already doing a huge amount to help people with the immediate cost of living and of course we are going to do more".

Under the government's new plans, up to 95% of the UK's electricity could come from low-carbon sources by 2030.

There is a big focus on offshore wind, with a new target of producing up to 50 gigawatts (GW) of energy from this source by 2030.

Officials said this would be more than enough to power every home in the UK.

The strategy says the government wants to "lead the world once again" in nuclear power, reversing what it describes as "decades of underinvestment".

A new body called Great British Nuclear will be launched to bolster the UK's nuclear capacity, with the hope that by 2050 up to 24 GW of electricity will come from that source - 25% of the projected electricity demand.

The government hopes to deliver up to eight new reactors, built on existing sites, with a new reactor approved each year until 2030.


<b>Key points of the new energy strategy</b>

Nuclear - The government plans to reduce the UK's reliance on oil and gas by building as many as eight new nuclear reactors, including two at Sizewell in Suffolk. A new body will oversee the delivery of the new plants.

Wind - The government aims to reform planning laws to speed up approvals for new offshore wind farms. For onshore wind farms it wants to develop partnerships with "supportive communities" who want to host turbines in exchange for guaranteed cheaper energy bills.

Hydrogen - Targets for hydrogen production are being doubled to help provide cleaner energy for industry as well as for power, transport and potentially heating.

Solar - The government will consider reforming rules for installing solar panels on homes and commercial buildings to help increase the current solar capacity by up to five times by 2035.

Oil and gas - A new licensing round for North Sea projects is being launched in the summer on the basis that producing gas in the UK has a lower carbon footprint than doing so abroad.

Heat pumps - There will be a £30m "heat pump investment accelerator competition" to make British heat pumps which reduce demand for gas.


For onshore wind, the strategy commits to consulting on developing partnerships with "a limited number of supportive communities" who want to host wind turbines in exchange for guaranteed lower energy bills.

However, the strategy says there will be no "wholesale changes" to current planning regulations for onshore wind.

Although it is one of the cheapest forms of energy, new onshore wind projects have been declining since 2015 when the government ended subsidies and introduced stricter planning rules in response to some complaints that wind turbines were an eyesore and noisy.

Defending the decision not to prioritise onshore wind, Prime Minister Boris Johnson said the UK already had about 30GW of onshore wind capacity.

He added that new sites "will have a very high bar to clear".

Labour leader Sir Keir Starmer said the measures announced were not enough to tackle the cost-of-living crisis.

"All we've got today is a cobbled-together list of things that could and should have been done over the last 10 to 12 years and it doesn't even tackle really important things like insulating homes, which could save £400 on everybody's bill," he said.

The former boss of energy regulator Ofgem, Dermot Nolan, said: "Most of these decisions will take a long time to have an impact and in the short run we will continue to be dependent on fossil fuels."

He said the lack of focus on energy efficiency, insulation and improving the quality of people's homes was "an opportunity missed".

Asked in the Lords why the government was not spending more on improving the insulation of homes, a business minister suggested the Treasury was not willing to support this.

Lord Callanan told peers: "We're spending something like £6.6bn over the term of this Parliament on insulation schemes. It would have been good to go further but the Treasury wouldn't support it."

Green Party co-leader Adrian Ramsay said if the government was "concerned about energy bills and taking real climate action, it would be going even further on onshore wind".

Liberal Democrat leader Sir Ed Davey described the plans as "utterly hopeless", while the SNP's Stephen Flynn also called it a "missed opportunity".

Dr Simon Cran-McGreehin, from the Energy and Climate Intelligence Unit, said the strategy was "underwhelming", describing the lack of funding to improve energy efficiency in homes as "an enormous gaping hole".

He added that there appeared to be "limited ambition" for onshore wind, despite it being "remarkably popular".


https://www.bbc.co.uk/news/business-61027313

 

[silentkiller187]

The annual rate of inflation shot up to a fresh 30-year high of 7% in March reflecting, for the first time, the immediate effects of Russia's invasion of Ukraine.

The largest contributors to growing inflation were increased fuel prices and energy bills, according to the Office for National Statistics (ONS).

The consumer prices index (CPI) rose from 6.2% in February and was higher than expected, with economists having predicted a rate of 6.7%.

 

[Technics 1210]

More inflation to come as energy price increases have not been factored in.

 

[James]

This “council tax rebate” is rubbish as well.

Councils have no idea how to send the £150 back and there are inconsistent approaches being taken across the country.

 

[MenInG]

Almost nine out of 10 adults say they have seen a rise in their cost of living - compared with 62% in November last year, according to new figures.

The figures come from a report by the Office for National Statistics, which covers the months between November last year and March this year.

It also found that 23% of adults said they were finding it difficult or very difficult to pay their usual household bills in the last month when compared to a year ago. This has risen from 17% saying the same in November last year.

Almost one in five said they were borrowing more money or using more credit than a year ago and 43% said they would not be able to save money in the next 12 months - up from 34% in November.

Some 43% said they were finding it somewhat difficult or very difficult to pay their energy bills while 3% claimed to be behind on rent or mortgage payments.

As the figures do not cover April, they do not include the fall-out from April's rise in the energy price cap - a record £693 per year increase, or 54%, on average.

Other hikes in effect from April will further tighten finances, including increases in council tax and national insurance.
Fuel costs are also high and inflation is expected to continue to climb.

Hugh Stickland, from the Office for National Statistics, said: "Today's analysis shows nearly nine out of 10 adults tell us they have seen an increase in their cost of living over the last month.

"This is impacting on people's financial resilience, with more telling us they are finding it harder to pay bills, and more unable to save money in the next 12 months."

SKY

 

[James]

<b>Cost of living crisis: Changes to childcare and MOT rules considered to help budgets</b>

Boris Johnson met his cabinet on Tuesday to discuss ideas to tackle rising living costs.

Ministers have pitched ideas to tackle the cost of living, as record inflation pushes up food and energy prices.

Boris Johnson called for proposals from his team - that do not rely on spending taxpayers' money - during Tuesday's cabinet meeting.

The BBC has learned that the PM said he wanted to reduce childcare costs by easing health and safety rules.

And sources said Transport Secretary Grant Shapps suggested relaxing the frequency of MOTs.

Delays at the Passport Office were also raised, with Mr Johnson threatening to privatise the service if it did not start delivering better value for money.

Opposition parties have said the help on offer from the government to tackle rising living costs was insufficient, with Labour, the SNP and the Liberal Democrats calling for an emergency Budget to give more support to households.

With inflation at a 30-year high and household bills continuing to rise, No 10 says the PM has asked ministers to come up with "innovative ways" to ease living costs.

One of the proposals came from the PM himself, with sources saying he wanted to lower the legal limits on adult supervision for children in England, as part of a drive to reduce living costs.

A source in the meeting said Mr Johnson had joked about knowing about the high cost of childcare - he has fathered at least seven children - before telling ministers the government had to get on with reducing costs.

Current legal requirements in England say there must be at least one member of staff for every three children in groups aged two years and under.

For two-year-olds and over, there must be one member of staff for every four children.

The Liberal Democrat and Conservative coalition government attempted to relax child-to-staff ratios in England as part of a package of reforms in 2013.

But the plans - spearheaded by then-education minister Liz Truss - were abandoned after they were opposed by Nick Clegg, who was deputy prime minister at the time.

Earlier this month, experts warned the government against relaxing nursery staffing rules as ministers reviewed ways to improve the cost, choice and availability of childcare.

Labour's shadow education secretary Bridget Phillipson said the proposal would "drive down quality whilst making no difference to availability".

And Lib Dem education spokesperson Munira Wilson said Mr Johnson has chosen to "cut corners and endanger our children", instead of addressing this issue "head on".

Relaxing rules for adult supervision is among the suggestions from Boris Johnson.

Another proposal presented to cabinet came from Mr Shapps, who suggested reducing the need for an annual MOT.

Every vehicle that is three-years-old or over must have a current MOT test certificate and drivers must renew this once a year, costing up to £54.85 for a car and £29.65 for a standard motorcycle.

Two cabinet sources told the BBC that Mr Shapps suggested reducing the need for renewal to every two years, rather than one, to cut costs for households.

Motoring organisation the AA has come out against the idea, arguing it could in fact make costs worse for drivers due to higher repair bills, as well as reducing road safety.

The prime minister's official spokesman said Chancellor Rishi Sunak "underlined the importance" of not fuelling further inflation during the cabinet meeting, and that departmental budgets "are set" with no plans to currently go beyond these limits.

But Lib Dem leader Sir Ed Davey said the meeting showed the PM was "completely out of ideas during the most profound crisis in decades".

He added: "Whilst families are facing sky rocketing bills and soaring inflation, Boris Johnson's answer is another quiz night at No 10."

Sir Ed echoed Labour and the SNP's call for an emergency budget, including a cut in VAT, and backed opposition plans for a windfall tax on the profits of the oil and gas companies.

It comes as Labour has warned of a £10bn hike in annual petrol and diesel costs, with "soaring" prices putting the squeeze on household budgets.

"Labour's plan would help households through this crisis with up to £600 cut off energy bills, funded by a one-off windfall tax on the booming profits of oil and gas producers," said Labour's shadow secretary of state for transport, Louise Haigh.

The SNP called for an emergency budget earlier this month, saying the Tories had ignored the cost-of-living crisis.

The Green Party has also accused the government of failing voters on living costs, and campaigned for insulation projects to reduce energy needs and keep homes warm.

https://www.bbc.co.uk/news/uk-politics-61227622

 

[James]

Interesting MOT and childcare proposals.

 

[shaz619]

Interesting MOT and childcare proposals.

Neither proposals are practical or safe, can’t compromise on childcare safety. As for the MOT wouldn’t it be better if they contributed towards it annually opposed to risking the safety of drivers and higher repair bills.

 

[shaz619]

Interesting MOT and childcare proposals.

Also, Labour have been raising council tax, so much for them helping with monthly bills.

 

[James]

<b>Boris Johnson promises compassion in tackling cost of living</b>

Boris Johnson has warned he does not have an "unlimited number of shots to play" when it comes to tackling record rises in the cost of living.
In an interview with the BBC, the prime minister promised the government would "use all the ingenuity and the compassion" to support people with price hikes "in the short-term".
But he said there would not be "a magic solution" for every family overnight.
Labour has accused him of offering "no answers" to a "cost of living crisis".
Political parties are arguing over living costs ahead of local elections in England, Wales and Scotland, and for Northern Ireland's government.
Inflation is at a 30-year high of 7%, driven upwards by surging food and energy prices, and is expected to rise further later this year.

The government has announced a council tax rebate and repayable discount on energy bills, but is facing calls to go further now to help with costs.
It has also come under criticism over the 3.1% rise in the state pension and other benefits that are not keeping pace with inflation.
Ministers are looking at other measures to lower living expenses, including less frequent MOT tests and relaxing nursery staffing rules in a bid to reduce the cost of childcare.
Mr Johnson said he accepted the country was "going to have a tough period for a while".
But while he promised the government would "continue to look at all the options" to support households, he said there were limits.
Talking to the BBC's regional news programmes, the PM said: "We will use all the ingenuity and the compassion that we had during Covid to try to help people in the short-term.
"That doesn't mean we have an unlimited number of shots to play.
"We've got to be clear - this is taxpayers' money, you're taking it to cut prices, there are limits to what you can do."
He added: "I am not going to pretend that every family is going to have a magic solution from the government overnight… but we can be as ingenious and compassionate as possible."

Mr Johnson's comments came after he faced criticism from an interview with ITV's Good Morning Britain on Tuesday.
Asked about rising prices, the PM initially said the government was "doing everything we can" to help households.
But pressed on whether the response went far enough, he later said the taxpayer-funded response "isn't going to be enough immediately to help cover everybody's costs".
"Of course that isn't going to work enough in the short-term," he added.
Asked whether there should be a more generous uplift to benefits, he warned this brought the risk of triggering an "inflationary spiral".

https://www.bbc.co.uk/news/uk-politics-61306589