Closing post
For households across Britain, April was an awful month. Rising energy bills, broadband costs and the sharpest increase in water bills since privatisation – despite public anger over the quality of service offered – all added to the cost of living squeeze.
Economists had forecast a jump in inflation based on the flurry of annual bill increases. But at 3.5% – the highest rate in the G7 – the rise was bigger than the 3.3% rate predicted in the City, and will raise concerns at the Bank of England.
Marks & Spencer has said it will take an estimated £300m hit to profits this year from a damaging cyber-attack that it expects to disrupt its online business into July.
A £25m post-Brexit border control post in Portsmouth may have to be demolished if the UK government’s deal with the EU removes the need for health and veterinary checks on food imports, according to the port’s director.
One of the UK’s biggest energy developers will cut its planned spending on new renewables projects in a blow to the government’s 2030 clean power targets.
SSE warned that it would be unlikely to meet its own renewable energy goals for the end of the decade after shrinking its five-year spending plans by £3bn to £17.5bn.
Keir Starmer has confirmed that his government will loosen the eligibility rules for winter fuel payments to pensioners after a backlash against the decision to means test the benefit.
Speaking at prime minister’s questions, Starmer said that more pensioners would be eligible for the payment.
Angela Rayner urged Rachel Reeves to consider a series of wealth tax rises, it has been revealed, in a move that underscores growing unease within the government over the chancellor’s tight spending plans.
Thank you for reading. We’ll be back tomorrow. Take care! – JK
The German Council of Economic Experts has cut its forecast for Europe’s largest economy, and now expects it to flatline this year during a “pronounced phase of weakness”.
The academic body that advises the German government on economic policy had predicted the economy would grow by 0.4% this year in previous forecasts published in November.
Germany is the only member of the G7 group of advanced economies that failed to grow in the last couple of years years, burdened by fiscal restraints and an industrial downturn.
Veronika Grimm, a member of the council, told a press conference in Berlin:
The unfavourable effects of the overall economic weakness phase on the labour market continue.
The number of unemployed people in Germany is approaching the 3 million mark
for the first time in the last decade, and Donald Trump’s trade tariffs are expected to deal a major blow to the export-oriented economy. The US was Germany’s biggest trading partner last year.
Monika Schnitzer, chairwoman of the council, said:
The German economy will be significantly influenced by two factors in the near future: U.S. tariff policy and the fiscal package.
Ulrike Malmendier, another council member, told the press conference.
Even if tariffs are reduced, Trump succeeds with his ‘deal economy’ and countries simply trade and the tariffs are not that high, he has managed to introduce enormous uncertainty into the system.
