Closing post
Time for a recap…
Bank of England Governor Andrew Bailey warned that big increases in public sector pay would fuel inflation unless they were offset by tax increases.
Testifying to MPs today, Bailey acknowledged that a “wedge” has opened up between public and private sector pay. But he hinted that the BoE would have to tighten monetary policy more if pay settlements were financed by higher government borrowing.
Bailey told the Treasury Committee:
“The economics of it depends on whether you raise taxes or whether you borrow.”
Paying for higher wages in the public sector through increased borrowing would be a stimulant, Bailey added.
The governor also defended the Bank’s record on inflation, which soared to five-times over its 2% target, and pledged to get inflation back down to target.
But one policymaker, Silvana Tenreyro, warned MPs that the Bank had already raised interest rates too high. She could vote for a cut at future meetings.
Households could face more inflationary pressures this year, with Unilever, the company behind brands including Marmite and Dove soap, warning it will continue increasing prices for consumers this year.
Unilever denied it was making “windfall profits” during the cost of living crisis, though, despite hiking prices by over 11%, which knocked sale volumes down.
The UK telecoms regulator has launched an investigation into the industry-wide practice of hitting broadband and mobile customers with inflation-busting price rises of up to 17% and could bring in tougher protections against hefty mid-contract increases.
Deliveroo has become the latest tech company to announce staff cuts. The delivery group plans to cut 9% of its workforce, with CEO and founder Will Shu blaming “serious and unforeseen economic headwinds”.
Shu told staff:
In recent years we grew our headcount very quickly. This was a response to unprecedented growth rates supported by Covid-related tailwinds. By contrast, we now face serious and unforeseen economic headwinds
We have also recently exited markets, meaning we do not require the same size workforce to support our operations. Quite bluntly, our fixed cost base is too big for our business.
The publisher of the Beano and Scottish newspapers including the Press and Journal and the Courier is to cut almost a fifth of its workforce and shut almost 40 magazines as the economic downturn forces a digitally-focused “reset” of the business.
The UK’s blue-chip share index, the FTSE 100, has climbed to another alltime high this morning.
Standard Chartered led the index higher, after jumping over 10% on reports that First Abu Dhabi Bank could renew a potential takeover offer for Standard Chartered, once lock-up rules from its previous aborted bid expire.
Credit Suisse has scrapped its annual bonus for top executives after the scandal-hit Swiss bank reported its worst full-year loss since the 2008 banking crisis.
Shares in Google’s parent company, Alphabet, have tumbled after its artificial intelligence-powered chatbot gave a wrong answer in a promotional video.
Property sales and house prices continued to decline across the UK in January, while new buyer demand and fresh listings were also down, surveyors have reported.
Greenpeace is threatening to take legal action against the government as it emerged a target to lift millions of struggling households out of fuel poverty is likely to be missed.
And Rishi Sunak has been urged to funnel billions of pounds into free childcare to help get more parents into work, by the CBI.
Sunak and wife Akshata Murty have met parents, babies and toddlers during a visit to the St Austell Family Hub in Cornwall
"you didn't get planning permission so I'm afraid we're going to have to knock your lovely tower down" pic.twitter.com/XpSUW1x2pq
— General Boles (@GeneralBoles) February 9, 2023
Star Wars fan Sunak must have appreciated this outfit:
10/10 no notes for the mum who dressed her child as Chewbacca to meet the PM pic.twitter.com/FlvSX1RFO2
— General Boles (@GeneralBoles) February 9, 2023
The publisher of the Beano and Scottish newspapers including the Press and Journal and the Courier is to cut almost a fifth of its workforce and shut almost 40 magazines as the economic downturn forces a digitally-focused “reset” of the business.
Dundee-based DC Thomson, which also owns businesses including the fashion title Stylist, is to cut 300 of its 1,600 workforce in a bid to shave £10m of costs.
The privately held company said that about half of the job losses will come from the complete closure of its operation in Colchester, home to subsidiary Aceville Publications, which produces about 20 to 30 magazines in sectors including gardening, health and food.
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