Connect with us

Published

on

The economy grew by 0.8% in May but remains 3.1% below its pre-pandemic peak, according to the Office for National Statistics.

The figure was just over half of the 1.5% growth predicted by economists and it was also lower than the 2% growth seen in April, when restrictions eased for non-essential retailers, hairdressers, pubs and restaurants.

Also included in the figures:

• The services sector grew by 0.9% in May, with a 37.1% growth in accommodation and food services as restaurants and pubs were allowed to serve customers indoors again

• Manufacturing of transport equipment fell by 16.5% – the largest fall since April last year – mainly because the global shortage of microchips hit car production

• Production sectors output grew 0.8% – bad weather boosted output in electricity and gas – and construction contracted by 0.8% but remains 0.3% above its pre-pandemic level (February 2020)

The Confederation of British Industry’s chief economist Rain Newton-Smith said the easing of coronavirus restrictions had brought a “welcome rise in activity” in May.

More from Business

She added: “But while more businesses were able to reopen their doors, times remain tough for our hardest hit sectors, particularly aviation and international tourism with some missing out on valuable summer trade to recoup their losses.

“With further pent-up demand providing an engine for growth, all signs point to a promising economic outlook for the UK over the course of the year. It’s now critical business and government work together to rebuild customer and employee confidence in living with the virus, while also maintaining progress in tackling the pandemic itself.”

Chancellor Rishi Sunak said: “It’s great to see people back out and about thanks to the success of the vaccine rollout, and to see that reflected in today’s figures for economic growth.

“Our unprecedented package of support – including business loans, the furlough scheme and a reduced rate of VAT for the hospitality and tourism sectors – has protected millions of jobs and helped businesses survive the pandemic.”

But Bridget Phillipson, Labour’s shadow chief secretary to the Treasury, said: “After causing the UK to experience the worst economic crisis in the G7, the Conservatives should be getting the economy powering on all cylinders. Instead, this morning’s growth data shows how fragile the UK’s economic recovery is.

“Instead of the Conservatives’ failure to secure the recovery, Labour’s plan to buy, make and sell more in Britain would mean seizing new opportunities to shape a new future for Britain.”

Continue Reading

Business

Elon Musk’s dad says Tesla protesters are ‘bums’

Published

on

By

Elon Musk's dad says Tesla protesters are 'bums'

Elon Musk’s father has told Sky News that protesters targeting his son’s cost-cutting work for the US government are “bums”.

Errol Musk was responding, in an interview with Business Live, to a growing backlash among US taxpayers and Tesla customers against his son’s role in the Trump administration-created Department of Government Efficiency (DOGE).

The electric car firm has increasingly become the subject of sales boycotts and protests – neither of which have been consigned to the US though dealerships there have seen vehicles vandalised and even set alight.

Money latest: Major car tax change on Tuesday – here’s what you need to know

Please use Chrome browser for a more accessible video player

‘Elon Musk has got to go’

Musk Sr told presenter Darren McCaffrey: “To take notice of the bums that are trying to hurt Tesla by damaging cars, well that’s just plain silly. Nobody does that, you know, you use your brain… and (it) tells you these people are the problem, not the car.”

The anger directed at Elon Musk was “media hype”, he said as he also dismissed growing unease among Tesla investors that his son’s main business interest was suffering at a time when the challenges facing it are only rising.

Earlier this month one of Tesla’s earliest investors, Ross Gerber, told Sky News Mr Musk should step down as the electric carmaker’s chief executive unless he quit his work for the Trump administration.

More on Elon Musk

Please use Chrome browser for a more accessible video player

‘I think Tesla needs a new CEO’

His worries included bad publicity and Mr Musk’s ability to devote enough time to Tesla.

It was revealed last week that Tesla sales had fallen 40% in Europe and were behind those of cheaper Chinese rival BYD on an annual basis.

Mr Musk himself has since warned he expects a “significant” hit to Tesla from Mr Trump’s metal tariffs and looming duties on all US car imports and car parts.

He also hinted at the weekend, in an interview with Fox News, that he could soon have more time on his hands as the bulk of his work at DOGE should be completed by late May.

Errol Musk denied any suggestion that his son was overstretched, saying there were good people at Tesla to delegate day-to-day business while Elon completed “vital work” for US taxpayers, given the state of the country’s mounting debt pile.

“He’s got plenty of ability to do that. Don’t worry about it,” he said, while predicting that Tesla shares would recover to $600 per share by the year’s end. They are currently changing hands for $254.

“There’s no concern there whatsoever, not at all,” he said.

Continue Reading

Business

Post Office interim boss Brocklehurst lined up for permanent role

Published

on

By

Post Office interim boss Brocklehurst lined up for permanent role

The acting chief executive of the Post Office is being lined up to take the job on a permanent basis as the state-owned company continues talks with ministers over its long-term funding arrangements.

Sky News has learnt that Neil Brocklehurst, who was named interim chief last September, is close to being handed the role.

Whitehall sources said on Monday that an announcement about Mr Brocklehurst’s appointment was likely to be made in April.

Money latest: Major car tax change on Tuesday – here’s what you need to know

The decision, which requires the approval of business secretary Jonathan Reynolds, will bring a degree of stability to an organisation still grappling with the financial and reputational consequences of the Horizon IT scandal, which saw hundreds of sub-postmasters wrongly convicted of fraud and false accounting.

Reliant on the government for its funding, the Post Office has been in negotiations with ministers about delivering a previously pledged pay uplift this year.

Earlier this month, Sky News reported that Nigel Railton, the company’s chairman, had informed thousands of Post Office managers that he had yet to gain certainty from Whitehall about a £120m increase for this year.

More from Money

The sum was promised in November as part of a strategy to rebuild the Post Office in the wake of the Horizon scandal.

The Post Office has outlined plans for an ambitious transformation which includes franchising more than 100 directly managed branches.

Nick Read, chief executive of Post Office Ltd, arrives to give evidence to the Post Office Horizon IT inquiry at Aldwych House, central London. Picture date: Wednesday October 9, 2024.
Image:
It was announced last year that Nick Read would leave the Post Office in March

A substantial number of jobs are also being cut at the company’s head office as part of the restructuring.

Several tranches of those have already taken place.

Mr Brocklehurst replaced Nick Read at the Post Office’s helm following a turbulent period for the outgoing boss.

Mr Read was repeatedly accused of being obsessed with his pay arrangements and being at the centre of a series of rows with both board colleagues and his government employers.

Like Mr Railton, Mr Brocklehurst is a former executive at Camelot, the previous National Lottery operator.

A Post Office spokesman declined to comment, while the Department for Business and Trade has been contacted for comment.

Continue Reading

Business

Primark boss Paul Marchant resigns and admits ‘error of judgement’ after allegation over his behaviour towards woman

Published

on

By

Primark boss Paul Marchant resigns and admits 'error of judgement' after allegation over his behaviour towards woman

The boss of Primark has resigned after admitting an “error of judgement” in his behaviour towards a woman in a social environment.

Paul Marchant stepped down as chief executive of the high-street fashion brand with immediate effect following an investigation.

Primark‘s parent firm, Associated British Foods (ABF), said he had co-operated with the investigation, and “acknowledged his error of judgment and accepts that his actions fell below the standards expected by ABF”.

“He has made an apology to the individual concerned, the ABF board and also to his Primark colleagues and others connected to the business,” the firm added.

The group’s overall chief executive George Weston said he is “immensely disappointed”.

“At ABF, we believe that high standards of integrity are essential,” he said in a statement.

“Acting responsibly is the only way to build and manage a business over the long term.

“Colleagues and others must be treated with respect and dignity.

“Our culture has to be, and is, bigger than any one individual.”

ABF’s finance director Eoin Tonge will take over as chief executive on an “interim basis” – and his role will be taken up by Joana Edwards, the group’s financial controller.

Read more from Sky News
WH Smith to disappear from High Street
Blackwall Tunnell charges to start
What it’s really like to be a bodyguard

A Primark store. Pic: PA
Image:
File pic: PA

The group’s statement added it “seeks to provide a safe, respectful, and inclusive work environment where all employees and third parties are treated with dignity and respect”.

“Primark is committed to doing business the right way at all levels of the company,” it said.

ABF promised to continue supporting the woman who made the complaint.

Primark results due soon

The group will still publish its interim results for the financial year as planned on 29 April, according to its statement.

In January, ABF reported an uncharacteristic decline in like-for-like sales at Primark across the UK and Ireland.

Sales at the store fell by 6% – with Primark saying it expects “low single-digit” sales growth for 2025 as a result – down from mid single-digit levels in November 2024.

Speaking at the time, Russ Mould, investment director at AJ Bell, said: “If Primark is struggling, you know the UK retail sector is in trouble.”

Continue Reading

Trending