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There has been a higher than expected leap in the rate of inflation, to a 41-year high of 11.1% last month, led by the latest rise in energy bills.

The Office for National Statistics (ONS) revealed the increase, from 10.1% in September, as the cost of light and heating for homes rose further despite help from the government’s energy price guarantee that limits wholesale charges for gas and power.

Food was cited as the other major element adding inflationary pressure during October, rising at the fastest annual pace since 1977.

The ONS estimated that the 11.1% reading for the consumer prices index (CPI) measure of inflation was the highest since October 1981.

It added that prices rose between September and October 2022 by as much as they did in the entire year to July 2021.

Economists polled by Reuters had expected the rate of inflation to rise to 10.7% – itself still almost double the pace of wage growth.

Surging energy prices have been the main driver of the cost of living crisis – mostly a consequence of Russia’s invasion of Ukraine in February that sent the cost of many commodities such as wheat, and the cost of producing them, through the roof.

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Wholesale energy costs currently remain below their conflict era peaks, raising hopes that the worst inflation is behind us.

However, there remains a lack of clarity on the support for energy bills beyond April, when the price guarantee will be reviewed. Further information could come in the chancellor’s autumn statement to MPs due on Thursday.

Jeremy Hunt is tipped to protect the most vulnerable from the worst by raising benefits and pensions in line with inflation but has warned that we all face higher taxes to help balance the books.

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‘Taxes will rise for everyone’

The Bank of England had expected that inflation would have surged above 13% last month without the government energy bill intervention because average annual bills under the Ofgem-set price cap would have skyrocketed to around £3,450.

Policymakers were tipped, by financial markets, to impose a further 0.5 percentage points increase to Bank rate when its rate-setting committee meets again next month.

That would take the rate to 3.5%.

But the higher than expected inflation figure could mean a more aggressive rate rise is considered – piling even more misery on borrowers after November’s 0.75 percentage point hike.

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UK on the brink of recession?

The Bank has signalled that curbing inflation is its priority despite revealing last month that it expected the country was already in recession.

Official figures last week showed the economy contracted by 0.2% in the three months to September.

The Bank has raised the prospect of seven further quarters of negative growth.

Rachelle Earwaker, senior economist for the living standards-focused Joseph Rowntree Foundation said of the gloom: “The cost of living has millions fearing for the future, contributed to by soaring cost rises for food, transport and energy.

“Every day sees still more stories of people selling their possessions, or borrowing money at punishing interest rates, just to afford these essentials.”

Head of research for the British Chambers of Commerce business group, David Bharier, said separate ONS data covering factory gate prices indicated that inflation was yet to peak.

“We speak to thousands of businesses who tell us this is unsustainable”, he said.

“Our research shows that confidence is falling fast as many SMEs find it almost impossible to absorb or pass on rising costs.

“While the Bank of England seeks to control inflation through further interest rate rises, this is a blunt instrument that fails to address the core drivers of inflation for most firms: soaring energy costs, global supply chain disruption, and rising staff costs due to labour shortages.

“Ahead of tomorrow’s autumn statement, businesses will need to see a clear plan from the chancellor to boost business investment and growth, as well as targeted measures that ease the specific causes of inflation.

“The UK economy otherwise faces a lethal combination of recession and runaway inflation.”

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Labour MP Dan Norris arrested on suspicion of rape and child sex offences

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Labour MP Dan Norris arrested on suspicion of rape and child sex offences

Labour MP Dan Norris has been arrested on suspicion of rape and child sex offences.

A Labour Party spokesperson said: “Dan Norris MP was immediately suspended by the Labour Party upon being informed of his arrest.

“We cannot comment further while the police investigation is ongoing.”

Police said a man in his 60s had been arrested on Friday on suspicion of sexual offences against a girl, rape, child abduction and misconduct in a public office.

Sky News has contacted Mr Norris for comment.

Mr Norris, 65, defeated Jacob Rees-Mogg to win the new seat of North East Somerset and Hanham in last year’s general election.

He has also lost the party whip in the House of Commons and has stepped down from his role as chair of the League Against Cruel Sports.

Avon and Somerset Police said in a statement: “In December 2024, we received a referral from another police force relating to alleged non-recent child sex offences having been committed against a girl.

“Most of the offences are alleged to have occurred in the 2000s, but we’re also investigating an alleged offence of rape from the 2020s.

“An investigation, led by officers within Operation Bluestone, our dedicated rape and serious sexual assault investigation team, remains ongoing and at an early stage.

“The victim is being supported and given access to any specialist help or support she needs.

“A man, aged in his 60s, was arrested on Friday (April 4) on suspicion of sexual offences against a girl (under the Sexual Offences Act 1956), rape (under the Sexual Offences Act 2003), child abduction and misconduct in a public office. He’s been released on conditional bail for enquiries to continue.

“This is an active and sensitive investigation, so we’d respectfully ask people not to speculate on the circumstances so our enquiries can continue unhindered.”

Mr Norris first entered Parliament when Tony Blair came to power in 1997 and served as the Wansdyke MP until 2010.

He was an assistant whip under Mr Blair and served as a junior minister under Gordon Brown.

Mr Norris has also been West of England mayor since 2021 but is due to step down ahead of May’s local elections.

A spokesman for the League Against Cruel Sports, a UK-based animal welfare charity which campaigns to end sports such as fox hunting and game bird shooting, confirmed he had stepped down from his role.

“The charity cannot comment further while an investigation is ongoing,” a statement said.

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Jaguar Land Rover to ‘pause’ US shipments over Donald Trump tariffs

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Jaguar Land Rover to 'pause' US shipments over Donald Trump tariffs

Jaguar Land Rover (JLR) has said it will “pause” shipments to the US as the British car firm works to “address the new trading terms” of Donald Trump’s tariffs.

The US president has introduced a 25% levy on all foreign cars imported into the country, which came into force on Thursday.

JLR, one of the country’s biggest carmakers, exported about 38,000 cars to the US in the third quarter of 2024 – almost equal to the amount sold to the UK and the EU combined.

Follow live updates: Trump’s baseline 10% tariff kicks in

In a statement on Saturday, a spokesperson for the company behind the Jaguar, Land Rover and Range Rover brands said: “The USA is an important market for JLR’s luxury brands.

“As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”

The company released a statement last week before Mr Trump announced a “baseline” 10% tariff on goods from around the world, which kicked in on Saturday morning, on what he called “liberation day”.

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JLR reassured customers its business was “resilient” and “accustomed to changing market conditions”.

“Our priorities now are delivering for our clients around the world and addressing these new US trading terms,” the firm said.

Trading across the world has been hit by Mr Trump’s tariff announcement at the White House on Wednesday.

All but one stock on the FTSE 100 fell on Friday – with Rolls-Royce, banks and miners among those to suffer the sharpest losses.

Read more: A red wall on Wall Street – but Trump seems to believe it will work out

Cars are the top product exported from the UK to the US, with exports worth £8.3bn in the year to the end of September 2024, according to data from the Office for National Statistics.

For UK carmakers, the US is the second largest export market behind the European Union.

Industry groups have previously warned the tariffs will force firms to rethink where they trade, while a report by thinktank the Institute for Public Policy Research said more than 25,000 car manufacturing jobs in the UK could be at risk.

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Two people die after caravan fire at holiday park in Lincolnshire

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Two people die after caravan fire at holiday park in Lincolnshire

Two people have died following a fire at a caravan site near Skegness, Lincolnshire Police have said.

In a statement, officers said they were called at 3.53am on Saturday to a report of a blaze at Golden Beach Holiday Park in the village of Ingoldmells.

Fire and rescue crews attended the scene, and two people were found to have died.

They were reported to be a 10-year-old girl and a 48-year-old man.

The force said the victims’ next of kin have been informed and will be supported by specially trained officers.

Officers are trying to establish the exact cause of the blaze.

“We are at the very early stages of our investigation and as such we are keeping an open mind,” the force said.

Two fire crews remain at the scene.

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