The latest official data on the state of the public finances and consumer spending makes for grim reading as the country awaits its next leader, with financial markets reflecting renewed jitters over the economy.
The Office for National Statistics (ONS) reported that public sector net borrowing came in at £20bn last month – £3bn more than economists had expected.
The report pointed to a record debt interest payment total of £7.7bn for the month of September – much of which could be attributed to rising inflation as a quarter of payments on the £2.4trn debt mountain are linked to the RPI measure.
Government spending increased by £5.8bn to £79.3bn as a result of the jump in interest, the ONS said.
It separately revealed that retail sales volumes fell 1.4% on the previous month, meaning that “consumers were now buying less than before the pandemic”.
The decline was far worse than the 0.5% decline that economists had forecast.
It was likely to reflect not only the deteriorating cost of living crisis that has squeezed consumer budgets this year but also the impact of store closures for the funeral of the Queen.
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Image: Many retailers closed their stores out of respect for the Queen on the day of her state funeral on 19 September
The borrowing figures cover the start of Kwasi Kwarteng’s short and turbulent tenure as chancellor.
He was appointed on 6 September before being fired weeks later following the market chaos that followed the tax giveaway mini-budget on 23 September.
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While the contentious measures have now been largely overturned by the new Chancellor Jeremy Hunt, the backlash raised the interest rates demanded by investors to hold UK government debt.
That has fed into fixed rate mortgage costs.
Image: Much of the borrowing – the second-highest September total on record – came while Kwasi Kwarteng was chancellor
It also led to the pound falling to a record low of against the US dollar – with continued sterling weakness adding to the country’s import costs and therefore inflation.
The pound was trading more than a cent lower versus the US currency at $1.11 on Friday while shares and bond yields also reflected concerns about the political and economic crisis.
They include doubts over whether the the chancellor’s medium-term fiscal plan, aimed at restoring market confidence in the UK’s public finances, will take place on Halloween as scheduled or be delayed.
That is because its contents will now fall under the oversight of a new PM following the resignation of the ill-fated mini-budget’s architect, Liz Truss.
The Tories expect their new leader to be in place in a week’s time – days before Mr Hunt is due to outline how he plans to balance the books while also maintaining a measure of support for struggling households and businesses.
A survey by the City watchdog found that almost 32 million people, or 60% of adults, were already finding it a heavy burden or somewhat of a burden to pay their bills because of the growing cost of living crisis.
The Financial Conduct Authority’s financial lives survey, which was taken between February and June, said the total was up six million from 2020, when the economy went into lockdown to fight the COVID-19 pandemic.
Another closely watched survey, compiled by GfK, found that confidence among British consumers remained close to the lowest level on record last month.
The chancellor said in the wake of the ONS data: “Strong public finances are the foundation of a strong economy.
“To stabilise markets, I’ve been clear that protecting our public finances means difficult decisions lie ahead.
“We will do whatever is necessary to get drive down debt in the medium term and to ensure that taxpayers’ money is well spent, putting the public finances on a sustainable path as we grow the economy.”
Addressing the City Academy Voices choir directly, the bishop of Fulham said: “I write to apologise for the distress and offence I caused in bringing the concert to a premature end.
“This should not have happened … I also apologise for remarks which were made in haste, and which have understandably caused hurt and distress.”
Image: The bishop, in his dressing gown, gave the choir a dressing down
Mr Baker had demanded for the performance to stop because it was 10pm – and says he didn’t realise the choir had booked the church until 11pm.
In the statement obtained by Sky News, he added: “I have lived here on site at St Andrew’s for 10 years, for much of which City Academy has rehearsed and performed here.
“You have been, and continue to be, welcome – and I hope that you will be able to continue the relationship with us.
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“I can give you every assurance that the events of Friday evening will not recur, and I apologise again to performers (especially those unable to perform at the end of the evening) and the audience alike.”
Image: The choir performed their last song
The choir was performing to a 300-strong audience in Holborn when the lights were suddenly turned off, with Mr Baker declaring the concert was “over”.
A church employee then asked the crowd to leave quietly and for the musicians to step down from the stage, attracting boos from the audience.
The choir went on to perform one last song, an A cappella version of ABBA’s Dancing Queen, before bringing their show to a close.
One member of the audience, who was attending with his 10-year-old daughter, told Sky News he initially thought the interruption was a staged joke.
Benedict Collins had told Sky News: “This work deserves respect, not to be disparaged as a ‘terrible racket’. The people here had put their heart and soul into it.
“The bishop cut them off in midstream, preventing soloists who had worked their hardest from singing – and preventing the audience, which included people of all ages, from enjoying it to the end.”
The choir told Sky News it was “upsetting” that they were unable to finish their show as planned, but “hold no hard feelings and wish the bishop well”.
A spokesperson added: “If anyone is thinking of joining one of our choirs, the City Academy Voices rehearse on Mondays in central London. Dressing gowns optional.”
The Online Safety Act is putting free speech at risk and needs significant adjustments, Elon Musk’s social network X has warned.
New rules that came into force last week require platforms such as Facebook, YouTube, TikTok and X – as well as sites hosting pornography – to bring in measures to prove that someone using them is over the age of 18.
The Online Safety Act requires sites to protect children and to remove illegal content, but critics have said that the rules have been implemented too broadly, resulting in the censorship of legal content.
X has warned the act’s laudable intentions were “at risk of being overshadowed by the breadth of its regulatory reach”.
It said: “When lawmakers approved these measures, they made a conscientious decision to increase censorship in the name of ‘online safety’.
“It is fair to ask if UK citizens were equally aware of the trade-off being made.”
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X claims the timetable for platforms to meet mandatory measures had been unnecessarily tight – and despite complying, sites still faced threats of enforcement and fines, “encouraging over-censorship”.
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“A balanced approach is the only way to protect individual liberties, encourage innovation and safeguard children. It’s safe to say that significant changes must take place to achieve these objectives in the UK,” it said.
A UK government spokesperson said it is “demonstrably false” that the Online Safety Act compromises free speech.
“As well as legal duties to keep children safe, the very same law places clear and unequivocal duties on platforms to protect freedom of expression,” they added.
Users have complained about age checks that require personal data to be uploaded to access sites that show pornography, and 468,000 people have already signed a petition asking for the new law to be repealed.
In response to the petition, the government said it had “no plans” to reverse the Online Safety Act.
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Reform UK’s leader Nigel Farage likened the new rules to “state suppression of genuine free speech” and said his party would ditch the regulations.
Technology Secretary Peter Kyle said on Tuesday that those who wanted to overturn the act were “on the side of predators” – to which Mr Farage demanded an apology, calling Mr Kyle’s comments “absolutely disgusting”.
Regulator Ofcom said on Thursday it had launched an investigation into how four companies – that collectively run 34 pornography sites – are complying with new age-check requirements.
These companies – 8579 LLC, AVS Group Ltd, Kick Online Entertainment S.A. and Trendio Ltd – run dozens of sites, and collectively have more than nine million unique monthly UK visitors, the internet watchdog said.
The regulator said it prioritised the companies based on the risk of harm posed by the services they operated and their user numbers.
It adds to the 11 investigations already in progress into 4chan, as well as an unnamed online suicide forum, seven file-sharing services, and two adult websites.
Ofcom said it expects to make further enforcement announcements in the coming months.
Two siblings who drowned while on holiday in Spain have been named – with a fundraiser for their family reaching £40,000.
Ameiya and Ricardo Junior Parris, aged 13 and 11, died on Tuesday evening after getting into difficulty off Llarga beach in Salou, Catalonia.
Their father Ricardo tried to rescue them, but he also got into difficulty and was unconscious when he was pulled from the water. He was later released from hospital with a concussion.
Ricardo Senior and his partner, Shanice Del-Brocco, 31, were staying at the Hotel Best Negresco right by the beach with their six children when tragedy struck.
Image: Ameiya and Ricardo Junior have been described as “hilarious, sensitive and loving”. Pic: Kayla Del-Brocco/PA Wire
The construction worker from Birmingham had taken their two oldest children for one final swim while Shanice had taken the younger ones back to the hotel.
“They’d gone out. They were being sensible. They’re very good swimmers,” the children’s aunt, Kayla Del-Brocco, said.
“They knew it was late. However, they’d been doing this every day on holiday, so that day was no different. They didn’t go out far, but the current was just too strong and pulled them.”
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A hotel worker saw the siblings struggling in the water and called for help. When Shanice returned to the beach, emergency services were already at the scene, with Junior, nicknamed Joby, taken away in a helicopter.
“It’s breaking (Ricardo), if I’m honest, because he was in the water, and I know he said things to my sister like: ‘I had him, I had Joby in my arms, and we got smacked up the rocks, and that’s the last thing I remember,'” Shanice’s sister said.
Ricardo Senior suffered a “nasty concussion and some bumps and batters”, Ms Del-Brocco said, adding that he was the first to be rescued.
Image: Little Ameiya and her oldest brother Ricardo Junior. Pic: Kayla Del-Brocco/PA Wire
The couple were unable to see their children’s bodies until Thursday at the mortuary and are now waiting for them to be repatriated to the UK, which they were told “could be anything from seven to 15 days”, Ms Del-Rocco said.
“They are just numb. They’re holding each other up and keeping it together for the little ones at the minute; going through the motions and desperately waiting to come home now.”
The GoFundMe page to help cover the cost of repatriating the bodies of Ameiya and Ricardo Junior, which was set up by her cousin, has already raised around £40,000, which Ms Del-Rocco described as “phenomenally overwhelming”.
“Maya was intelligent, thoughtful, and growing into a strong young woman. Ricardo Junior was playful, kind, and always smiling. They brought so much love, laughter, and energy into the lives of everyone around them,” the fundraising page reads.
“Their absence has left an unbearable silence not just for their parents, but for their whole family, who were incredibly close and shared an unbreakable bond.”
Image: Ameiya and Ricardo Junior were doting older siblings. Pic: Kayla Del-Brocco/PA Wire
Ms Del-Brocco said that Ameiya and Junior, who were in Years 7 and 8 at North Birmingham Academy, were doting older siblings, with their mother describing them as “hilarious, sensitive and loving – the best big brother and sister anyone could want”.
Their aunt said that Ameiya, a talented runner with ambitions of going to the Olympics, was “unapologetically just herself” and “driven by being unique”.
Ricardo Junior was a “very, very special one-of-a-kind character” who wanted to become a famous YouTuber.
A Foreign, Commonwealth and Development Office spokesperson said: “We are supporting the family of two British children who have died in Spain and are in contact with the local authorities.”