Financial matters

[SteveH]

They could start by reviewing the way they spend money, especially government buildings now unused, and some of the grant money, I feel could be better used.

Wales faces 'toughest financial situation since devolution' with cuts planned
Mark Drakeford said the Welsh Government needs to make cuts to fill a ?900m hole in its budget

Wales is in the toughest financial situation since devolution, according to Mark Drakeford. In a sobering statement released on Wednesday, the First Minister said he had asked ministers to find cuts in their departments to fill a ?900m hole in its ?20bn budget.

He claimed it had been caused by "record levels of inflation" as a result of the "mismanagement of the economy and public finances by successive UK governments over the last 13 years," reports WalesOnline. UK interest rates are currently at a 15-year high of 5.25%.

cont https://www.dailypost.co.uk/news/north-wales-news/wales-faces-toughest-financial-situation-27487259

[SteveH]

Sunshine and no bank holidays helps better UK GDP growth

There may be some cautious optimism after this morning's economic update - but for small business owners like Lorna Needham, it is way too early to celebrate.

cont https://www.bbc.co.uk/news/live/business-66469579

[SteveH]

Why US tech giants are threatening to quit the UK

It was difficult to maintain a poker face when the leader of a big US tech firm I was chatting to said there was a definite tipping point at which the firm would exit the UK.

I could see my own surprise mirrored on the faces of the other people in the room - many of whom worked there.

They hadn't heard this before either, one told me afterwards.

I can't tell you who it was but it's a brand you would probably recognise.

I've been doing this job for long enough to recognise a petulant tech ego when I meet one. From Big Tech, there's often big talk. But this felt different.

It reflected a sentiment I have been hearing quite loudly of late, from this lucrative and powerful US-based sector.

Many of these companies are increasingly fed up.

Their "tipping point" is UK regulation - and it's coming at them thick and fast.

cont https://www.bbc.co.uk/news/technology-66304002

[SteveH]

About 40% of employers have made counteroffers to keep hold of staff tempted by higher wages from rivals in the past 12 months, a survey has found.

The Chartered Institute of Personnel and Development (CIPD) said that of the 2,000 employers it questioned, many of those that made counteroffers expected to do so again to retain workers.

The number of job vacancies in the UK remains high at over one million.

https://www.bbc.co.uk/news/business-66496216

[SteveH]

Wages grew at a record annual pace between April and June, according to new figures from the Office for National Statistics.
Regular pay grew by 7.8%, the highest annual growth rate since comparable records began in 2001.

Inflation, which measures the pace at which prices are rising, has eased but remains relatively high at 7.9%.

But Darren Morgan from the ONS said Tuesday's figures suggested "people's real pay is recovering".

Mr Morgan, the ONS's director of economic statistics, said that basic pay "is growing at its fastest since current records began".

"Coupled with lower inflation, this means the position on people's real pay is recovering and now looks a bit better than a few months back."

However, wage growth is still not quite outstripping the pace of price rises. Mr Morgan told the BBC's Today programme that real pay growth, when taking into account the rate of inflation, "is still falling a little".
cont https://www.bbc.co.uk/news/business-66501937


The prices of food staples such as oil and milk are finally "edging down", even though shopping bills remain high, new data suggests.Research firm Kantar said shoppers paid on average ?1.50 for four pints of milk in July, down from ?1.69 in March.

The average cost of a litre of sunflower oil, meanwhile, is now ?2.19, which is 22p less than in the spring.

It comes as grocery inflation - the rate at which overall food prices rise - remains high but is starting to ease.

Prices increased by 12.7% on an annual basis in the four weeks to 6 August, according to Kantar, which tracks the spending habits of 36,000 UK households.

That is down from 14.9% a month earlier.
cont https://www.bbc.co.uk/news/business-66503016

[SteveH]

State pensioners could be in for big 2024 rise due to Triple Lock
People could potentially get ?848 more a year thanks to big growth in average wages

Pensioners could be in for a big pay rise next year due to the triple lock on the State Pension, the Record reports. Today it was revealed that Office for National Statistics (ONS) said Consumer Prices Index inflation was 6.8% in July, down from 7.9% in June.

In April 2023, particularly high inflation meant state pensioners received a double digit increase of 10.1 per cent. And there is the potential for next year?s increase to be very high too.
cont https://www.walesonline.co.uk/news/cost-of-living/state-pensioners-could-big-2024-27529337?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589


Miserable weather and economic news in July saw retail sales fall sharply with a warning of further misery to come, figures from the Scottish Retail Consortium (SRC) have revealed. Instead of hitting the high street to purchase new summer wardrobes, retailers slashed prices to attract shoppers to stores.

Customers also ignored summer food ranges and instead looked to traditional warming foods in supermarkets. While sales in July increased by 4.6% compared with July 2022 (4.4%), growth was well below the three-month average increase of 9.1% and the 12-month average growth of 8.5%, resulting in an overall year-on-year drop in sales of 3%.
cont https://www.walesonline.co.uk/news/uk-news/sharp-fall-shopping-july-thanks-27528869?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

Annual energy bills for a typical household are expected to fall slightly to ?1,926 from October, according to a new forecast.

Consultancy firm Cornwall Insight predicts bills could drop by ?148 under a new official price cap set to be announced by Ofgem next week.

The energy price cap limits how much suppliers can charge households for each unit of energy they use.

But bills still remain far higher than before Russia's invasion of Ukraine.

cont https://www.bbc.co.uk/news/business-66542340

[SteveH]

A week of ups and downs in the UK economy

Turning points in the economy can be a little messy.

Just over two decades ago, the then Bank of England deputy governor Mervyn King said new economic figures had the air of John Travolta in Saturday Night Fever: "Old-fashioned disco dancing - sharp movements in unpredictable directions creating much excitement accompanied by a good deal of noise."

It is again an apt description of the British economy.

This week should have been a reliable staging post on a path of disinflation, and a sign that three years of inflationary crises and shocks were now washing out of the economy. The household energy shock that forced inflation above 11% went into reverse, bringing inflation below 7% in July.

But the figures had a significant sting in the tail.

Measures of underlying inflation, such as core inflation, which strips out the direct impact of energy and food, remained stuck at June's rate. Services inflation actually went back up, to a joint 31-year high.

It is these measures of more enduring forms of inflation that the experts setting interest rates are most focused on, not the predictable fall in the headline rate, as the household energy cap gradually lowers gas and electricity bills. And this came on top of some punchy rises in wages (in cash terms).

cont https://www.bbc.co.uk/news/business-66543759

[SteveH]

Welsh Water customers earning less than ?50K can now apply to get 25% off bills
The cost-of-living scheme is said to be the 'first of its kind' in the UK

Welsh working households not on benefits can get a sizeable chuck knocked off their water bills under a new cost-of-living scheme. Until now Dŵr Cymru (Welsh Water) has mostly given financial help to households on means-tested benefits.

The company?s new Cymuned (Community) Support Fund offers short-term support to working households whose ?bills exceed their income?. Under this scheme, households that qualify will receive a three-month ?charge-free? period ? this equates to a discount of around ?100-?120 on the average bill.

cont https://www.dailypost.co.uk/news/north-wales-news/welsh-water-customers-earning-less-27557498

[SteveH]

Energy bills to tick lower this winter but will remain high

An annual energy bill for a typical household will fall to ?1,923 in October under regulator Ofgem's new price cap.

The maximum price of each unit of gas and electricity for 29 million households in England, Wales and Scotland is governed by the decision.

Bills will be ?151 lower than current rates and ?577 down on last winter.

But reduced government support and higher fixed costs mean many will see little difference in what they pay.

Ofgem chief executive Jonathan Brearley said: "We know people are struggling with the wider cost of living challenges and I can't offer any certainty that things will ease this winter."

He also said that prices paid by suppliers would be "volatile for some time to come", offering little long-term certainty to customers.

cont https://www.bbc.co.uk/news/business-66607005

[SteveH]

Autumn and winter DWP cost of living payments in wake of new energy price cap
Many billpayers could still end up paying more this winter, despite Ofgem lowering the amount energy providers can charge

Energy regulator Ofgem has announced the new price cap will be reduced to ?1,923 from October 1. It means the average customer should see their energy bills become less costly during the winter period. According to the energy regulator, the price of gas will go from 8p per kilowatt hour (kWh) today to 6.89p while electricity will drop from 30.1p per kWh to 27.35p.

Despite bills looking cheaper at a glance, it's important to note that government support to supplement energy bills will not be available this winter, potentially resulting in higher charges for many. The previous government grant reduced bills by between ?66 and ?67 per month between October and March, 2022, the MEN reports.

cont https://www.dailypost.co.uk/news/north-wales-news/dwp-payment-energy-price-cap-27607180


PS
Workers at two large liquefied natural gas (LNG) plants in Australia are set to go on strike from 7 September, in a move that could drive up global prices.

It follows weeks of negotiations with unions over pay and working conditions.

Chevron, the US energy giant which operates the sites, said it would "continue to take steps to maintain safe and reliable operations in the event of disruption at our facilities".

Fears of strikes recently pushed up wholesale gas prices in Europe.        cont https://www.bbc.co.uk/news/business-66643277

[SteveH]

The benefits and other rule changes coming in this month with latest on ?300 payment
New rules on immigration, baby seats, rubbish disposal, shingles vaccine and cryptocurrency are also due

A number of rule changes are coming into force in September, with updates on how you get benefits, or contact the Department for Work and Pensions. In addition there could also be more detail on the next ?300 cost of living payment.

cont https://www.dailypost.co.uk/news/north-wales-news/benefits-rule-changes-coming-month-27625877

[SteveH]

DWP Winter Fuel payment payday and when the amounts will be announced
People could get between ?250 and ?600 to help with energy bills
cont https://www.dailypost.co.uk/news/north-wales-news/dwp-winter-fuel-payment-payday-27631313?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589


The UK economy made a stronger recovery during Covid at the end of 2021 than previously estimated, according to sharply revised official figures.
Data has now revealed that the economy was 0.6% bigger in the final three months of 2021 compared to pre-pandemic levels.

The previous figures said that the UK economy was 1.2% smaller.
The government said it showed "those determined to talk down the British economy have been proved wrong".

The Office for National Statistics said changes were mainly because it had "richer data" from its annual survey.
cont https://www.bbc.co.uk/news/business-66680188


Octopus has announced it will buy Shell's household energy business in the UK and Germany.
Octopus Energy said that it will take over providing energy for 1.4 million homes as well as broadband services for 500,000 customers.

Shell's customers are advised to "sit tight for now" as the deal is not expected to be completed until later this year.
It is the latest expansion for Octopus which bought Bulb after its collapse.

That deal - which rival energy providers challenged in the UK High Court over state support - gave Octopus an additional 1.5 million customers.
cont https://www.bbc.co.uk/news/business-66684386

[SteveH]

Welsh households could get ?120 financial support under new scheme
The financial support can be accessed through Welsh Water's new 'Cymuned (Community) Support Fund'

cont https://www.dailypost.co.uk/news/north-wales-news/welsh-households-could-120-financial-27626369?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

A review of veterinary services in the UK has been launched over concerns that pet owners could be paying too much.

The Competition and Markets Authority (CMA) said vet fees were rising faster than other goods and services during the cost-of-living crisis.

Pet owners are often faced with "eye-watering" bills, consumer group Which? said.

The vet industry is worth ?2bn after pet ownership rose to two-thirds of UK households during the Covid pandemic.

When pets need urgent treatment, owners may not have all the information to decide on the best deal, the CMA said.

Its chief executive, Sarah Cardell, said: "Caring for an ill pet can create real financial pressure, particularly alongside other cost of living concerns.

cont https://www.bbc.co.uk/news/business-66733077