The collapse in disposable income will be about as grim as you can imagine – so why is the government embracing it?
Let’s start with a tale of two charts. Or rather, one chart.
Be warned: it’s not a pretty chart. It shows how average household disposable income changed each year since 1955 and for the most part it’s a story of progress.
As the years have gone on, we have seen our disposable incomes rise in most years.
But here’s where it gets gritty, because that run is about to come to a crashing end. Back in March, the Office for Budget Responsibility produced this chart, and it showed the single worst year for disposable income changes since records began in the 1950s.
Back then, Rishi Sunak was chancellor and behind the scenes he was furious with the OBR. Why did they ruin his finely honed spring statement with their chart of misery?
Now roll forward to today. The OBR updated the chart for the autumn statement and the prognosis was even worse.
Now we are facing not just the worst year for household disposable income in modern history, but the two worst years, one after another. It is about as grim as you could imagine.
And if there’s one chart you want to bear in mind over the coming months as households face a squeeze the likes of which they rarely ever have, and many are pushed closer than ever before towards penury, it’s this one.
However, this time around, far from being furious about the publication of the chart, the Treasury has effectively embraced it. And this change in attitude tells you rather a lot.
Whereas Mr Sunak once wanted to play down the economic misery facing the country, today he wants to emphasise it.
The government wants everyone to know how tough things are because the fiscal remedies it’s implementing in the autumn statement would be doubly unpalatable without some sort of justification.
The rationale in Whitehall is that if people realise how miserable the economic climate is, they might be more willing to put up with another dose of fiscal contraction.
It’s worth saying, however, that the squeeze priced in within the autumn statement is not quite as tough as the pre-event leaks might have suggested
In numerical terms, at least, this is not the austerity we saw during the Osborne years. But for many government departments already cut to the bone, it will feel pretty brutal all the same.
For education and the NHS, there were unexpected increases in funding – but inflation is likely to eat into those increases very quickly indeed.
However, take a step back and look at where the public finances land in five years’ time. Back in March, the plan was to get public sector net borrowing down to £31.6bn by 2026/27. As of the autumn statement, the plan is to get it down to only £80.3bn.
Back in the day, this would have been considered a high budget deficit – above 2% of gross domestic product. Fiscal conservatism this ain’t.
But for all the talk of austerity and cuts, the reality is that the chancellor didn’t cut quite as much as some had expected.
This is not to say there is much joy coming our way from the Exchequer: there will be an average of £55bn of contraction – all to fill in the much-vaunted black hole which some economists argue never really existed.
Read more:
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But had the chancellor wanted to get the public finances back to where they were supposed to end up as of March, it would have involved an extra £50bn of cuts – truly grisly austerity.
This was, in one sense, a very middle-of-the-road fiscal event: decidedly boring, decidedly unshowy and decidedly lacking in surprises. It reads less like an economic philosophy than an effort to clean up a mess.
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Hunt questioned over autumn statement
Much of the documents are devoted to accounting for how the potential promises of the Truss era ballooned the public finances in one direction, before being yanked back towards earth in the Sunak era.
The question now is whether unwinding all that spaghetti will actually help the Conservative Party rebuild its trust with the British public.
And, most of all, the question is how the public will fare over the coming months.
The OBR’s forecasts paint a picture of a recession unlike most we’ve felt for a long time – a recession not of the business sector or the financial system, but one that hits consumers square in the pocket.
It’ll be a very painful few months. The difference is that this time around, the government isn’t afraid of charts telling you precisely that.
World
Brutal murder on ‘date’ exposes robbery gang suspected of targeting dozens of women in South Africa
Thirty-year-old Olorato Mongale made sure to take all the measures necessary for a safe first date in South Africa’s biggest city, Johannesburg.
She had agreed to meet ‘John’ in the daytime. She sent her friends her phone location after leaving her house and promptly texted them “on the road” at 2.47pm.
They replied “enjoy!”, hoping she would find love.
An hour later, their friend had gone silent and her phone location was showing up in dangerous areas of the city.
A search party of seven friends set off to trace Olorato’s digital footsteps.
It’s believed Olorato’s killers were part of a gang robbing young women at gunpoint
“It didn’t make sense. Where is she? Why is she missing?” says Karabo Mokoena, as we drove to the locations involved in their search.
“Every place we went to looked dodgier and dodgier. It made me panic – I was very scared.”
After finding her bag on a pile of bricks off the side of a main road, they filed a missing person report at a police station.
“I thought there was no way we were not going to find her. We did end up finding her but not in the way we would have hoped,” says Karabo.
Olorato’s body had been dumped at the dirt entrance of a random house less than 100m from where her friends were searching into the night.
Her face was swollen and her eyes black-blue from violent impact. Her top was ripped open to expose her breasts.
Police told Sky News that her post-mortem showed signs of blunt force trauma. She was likely beaten to death.
Olorato’s body was dumped outside this gate – she was likely beaten to death
“It was like I was dreaming, seeing her body like that with those bruises and blood everywhere,” says Olorato’s mother, Keabetswe Poppy Mongale, describing the moment she had to identify her only child at the morgue.
“I don’t think what I saw will ever go away,” she adds.
“It was very painful. I don’t wish that on any parent because my beautiful little girl looked different because someone chose to do that to her.”
Olorato’s mother says the image of her daughter in the morgue will never go away
CCTV from the driveway of Olorato’s building shows the last time she was seen alive, leaving her home to meet ‘John’.
In the video, she walks towards a white Volkswagen Polo and hesitates as she reaches the left back door. John had come with a friend.
Four days after Olorato was killed, police found the car in a different province with traces of her blood splattered across the back seat.
CCTV showed Olorato walking to a car for what she thought was a date
One suspect was shot dead but the second man is still on the run
Philangenkosi Sibongokuhle Makanya – ‘John’ – was shot dead by police in KwaZulu-Natal shortly after they found the vehicle.
The second man in the car, Bongani Mthimkhulu, is still on the run.
The two men have since been identified as part of a dangerous criminal syndicate that lure young women out on dates and rob them at gunpoint.
“Within the four days, the investigating officers received 94 calls from women who were raising concerns and identifying the suspects as those they once met,” South African Police Service deputy national commissioner Lieutenant General Tebello Mosikili told Sky News.
“It was unfortunate about Olorato, but others were released after being robbed.”
Olorato’s friends say she ‘ticked all the boxes when it came to being careful’
A 24-year-old student who survived an armed robbery at the hands of Olorato’s suspected killers says she was happy to see Philangenkosi killed but she’s still scared for her life.
“As women, we are not even safe anymore – we can’t even walk freely,” she says.
“The moment you leave your house you wonder if you will make it back alive. I don’t feel comfortable walking around the street. I leave the house and then turn back.
“Even when I’m home, I still don’t feel safe and always want to keep myself locked indoors,” she says with a shaky voice – choosing to remain anonymous.
After meeting other victims of the syndicate, she was shocked to hear details of almost identical abductions.
“This other girl was surprised because we went through the exact same situation. They also approached her with the same tactic – let me take you out to lunch to get to know you – only for her to be robbed.”
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
South Africa has one of the highest femicide rates in the world – an average 15 women are killed a day, many by their intimate partners.
According to police statistics, more than 5,500 women were murdered in South Africa last year. An increase of 33.8% compared with the previous year.
“South Africa has six times the average rate of femicide – hundreds of women have already been killed since Olorato’s murder,” says Cameron Kasambala from Women for Change.
The advocacy group raises awareness of rising cases of femicide and gender-based violence across South Africa.
Campaigner Cameron Kasambala says many femicide cases take a long time to be resolved
In the hours after her murder, Olorato’s friends contacted Women for Change to share her missing poster after receiving little immediate help from the local police station.
“I think her friends were the real heroes in that moment,” says Cameron.
“Two police stations that were 10 minutes apart, one finds a body and one has a missing case, don’t make a connection for hours. It’s not the most reassuring police work. And if the friends had not come forward, how long would it have taken?
“Unfortunately, Olorato’s case is an exception. Most cases are not handled that quickly.”
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Olorato’s friends say she would be ‘proud to know that her name has not gone in vain’
Olorato’s friends are still contending with the violence of her death – what it means for their daily lives and how they navigate their safety as women in South Africa.
“It is difficult to process and difficult to believe. This is somebody who ticked all the boxes when it came to being careful – being meticulous, checking her surroundings and leaving clues,” says Olorato’s friend, Koketso Sejosengoe.
“It shows it can happen to anybody no matter how safe you are. It is happening to the average girl. They are being targeted. These men know what they are doing and who they are looking for.”
“In the purest sense, Olorato wanted women to be safe and wanted women to be protected,” adds Koketso.
“I think she would be very proud to know that her name has not gone in vain and that her death is standing for something – that there will be change that comes with this.”
Major heatwaves across southern Europe have left Spain, Portugal, Italy, and Greece in sweltering conditions of more than 40C (104F).
Two-thirds of Portugal was on high alert for extreme heat and risk of wildfires on Sunday, with temperatures in Lisbon expected to exceed 42C (107F).
In parts of southern Spain, temperatures are well above average, with 42C also expected in Seville and other cities.
The country’s meteorological service says June is likely to be the hottest Spain has experienced since records began.
In several Italian regions, including Lazio, Tuscany, Calabria, Puglia, and Umbria, outdoor work was banned during peak hours of sun on Sunday, with trade unions pushing for the measures to be extended and rolled out nationwide.
Twenty-one out of 27 cities were under the highest possible heat alert, including Rome, Milan, and Naples.
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Greece has already been plagued by wildfires this summer, with one breaking out south of Athens on Thursday, and several on the island of Chios last Sunday.
Near Athens, authorities deployed 130 firefighters, 12 helicopters, and 12 planes, with 40 people evacuated from the highest-risk areas.
A woman was arrested on suspicion of unintentional arson after wildfires spread across brush and pastureland for three days on Chios.
Flames rise above Thymari, near Athens, after wildfires broke out on Friday. Pic: Reuters
Tourists battle scorching temperatures at the Parthenon in Greece on Friday. Pic: Reuters
Scientists link increasing frequencies of extreme weather events such as heatwaves, wildfires, and storms to climate change.
In France and Germany, at least three people died amid stormy conditions.
A ridge of high pressure above central and western Europe is driving the scorching conditions, says Sky News meteorologist Chris England.
Hotter-than-normal sea temperatures, dry land, and surface winds are also partly to blame, he added.
Tourists in Retiro Park in Madrid on Saturday. Pic: AP
Locals fan themselves in Lisbon on Saturday. Pic: AP
UK heatwave also likely
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UK heatwaves explained
The UK is halfway through a four-day amber heat health alert, with temperatures expected to peak in the mid-30s (86F) on Tuesday.
Heat health alerts are not public weather warnings – but are instead designed to prepare health and social care bodies for the potential impact on their infrastructure and vulnerable groups.
Heatwave thresholds are likely to be met on Monday and Tuesday, which vary between 28C (82F) in the south of England and 25C (77F) across the rest of the country.
A British-Israeli soldier has been killed while fighting in Gaza, Israeli media reports said.
He was named locally as Sergeant Yisrael Natan Rosenfeld, 20, from the city of Ra’anana.
The Foreign, Commonwealth and Development Office said it is “looking into reports that an IDF soldier who died in combat in Gaza is a British national”.
The IDF soldier, who served in the 601st Combat Engineering Battalion, was killed by an explosive device on Sunday, the Times of Israel reported.
The paper said Mr Rosenfeld moved to Israel from London with his family 11 years ago.
More than 860 Israeli soldiers have been killed since Israel’s war against Hamas began on 7 October 2023, more than 400 of them during the fighting in Gaza.
The war began when the militant group launched an attack on Israel, killing 1,200 people and taking around 250 hostage.
Israel’s offensive in Gaza has devastated the enclave and killed more than 56,000 people, according to the Hamas-run health ministry, which does not differentiate between civilians and combatants in its count, but says more than half of the dead are women and children.
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It came as Donald Trump called for progress in ceasefire talks in the war between Israel and Hamas.
“MAKE THE DEAL IN GAZA. GET THE HOSTAGES BACK!!!” the US president wrote on social media on Sunday.
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On Friday Mr Trump raised expectations by claiming there could be an agreement within the next week.
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