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Consumer spending remained broadly below inflation last month but people forked out for holidays and entertainment as pent-up demand was released.

Closely watched data from the British Retail Consortium (BRC) and KPMG, as well as from Barclays, showed spending rose by 4.2% and 9.7% in value terms respectively in January compared with a year ago.

Both readings fell short of inflation, which stood at 10.5% in December, latest figures showed.

The readings were also flattered by the impact of COVID in January 2022 when the spread of the Omicron variant and associated restrictions reduced retail activity.

The BRC’s retail sales monitor, compiled with KPMG, warned discretionary spending will be weak as higher household bills and more expensive mortgages weigh on households.

Paul Martin, UK head of retail at KPMG, said tightly controlled spending dominated the first month of 2023 and the short-term outlook “remains challenging”.

“With inflation running at around 10%, sales growth for January nearly halved in comparison to December to just over 4% – sending a clear signal that consumers have started the year with a tight rein on spending as they face another period of rising costs.”

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Both data sets showed an increase in non-essential items with figures from Barclays saying spending on such items grew 10.4% year-on-year in January – the largest increase since May 2022 as retail, hospitality and travel experienced noticeable growth from when Omicron restrictions were in place.

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Bank of England Governor sees signs that inflation has peaked but there is still a long way to go and big risks remain

Overall the discretionary entertainment sector had a significant rise of 21.3% – the largest increase since June 2022, Barclays figures showed.

Pubs, bars and clubs also enjoyed the biggest uplift since May 2022 – 18%. Restaurants saw a noticeable improvement compared to December – up 4.7% compared with a decline of 3.9%.

Aside from the reduced impact of COVID restrictions, the growth can also be attributed to the transport strikes in December, which caused many Christmas party bookings to be rescheduled for January, Barclays said.

Some of the largest spending increases were on holidays. The travel sector had a 66.1% increase as consumers booked getaways for the year ahead.

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Spending at travel agents and airlines rose 83.1% and 75.7% respectively over the year. Domestic travel benefited too as bookings with hotels, resorts and accommodations experienced a 12.2% growth.

This growth in value is likely due to a combination of the impact of the restrictions in 2022, higher prices, and people spending more on holidays to make up for missed holidays over the pandemic years.

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Clothing “continued to prop up the high street”, Mr Martin said: men’s clothes and shoes were the strongest category in January.

Energy efficient appliances remained a top purchase for consumers, he added.

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More jail time for criminals who refuse to attend sentencing hearings

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More jail time for criminals who refuse to attend sentencing hearings

Criminals who refuse to attend their sentencing hearings will face further punishment under a new law.

The government is introducing the Victims and Courts Bill to parliament today, which will include more jail time or loss of privileges in prison in England and Wales for criminals who refuse to attend court for sentencing.

Several high-profile offenders have refused to face victims’ families, sparking a public outcry and calls for a change in the law.

The families of murdered primary school teacher Sabina Nessa, law graduate Zara Aleena and mother-of-three Jan Mustafa have all campaigned for the change after their killers were absent from sentencing hearings.

Ms Nessa’s sister, Jebina Islam, Ms Aleena’s aunt, Farah Naz, and Ms Mustafa’s cousin, Ayse Hussein, said: “This move holds offenders to account.

“It sends a clear and necessary message: the justice system is not something you should be able to opt out of.

“It is not about punishment through force – but about ensuring that perpetrators cannot remove themselves from the consequences of their actions.”

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Sabina Nessa was on her way to meet a friend when she was killed.
Image:
Teacher Sabina Nessa was killed by Koci Selamaj in 2021 after he drove to London to assault a stranger

They said the legislation is a “step in the right direction” and the proposed punishments indicate it is “being taken seriously”.

The trio added: “This change supports victims and society alike. It shows justice being done.

“It gives families a moment of recognition and a form of reparation. It is a moment of reckoning for the convicted.”

Under the new legislation, judges will be able to sentence offenders for up to two more years in prison for avoiding justice.

Those already facing lengthy imprisonment or whole life orders could have a range of prison punishments, such as confinement to their cells and being stripped of privileges, such as extra gym time.

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Former Tory prime minister Rishi Sunak had pledged to change the law after meeting the mother of murdered nine-year-old Olivia Pratt-Korbel, and Sir Keir Starmer promised to enact it.

Olivia Pratt-Korbel
Image:
Olivia Pratt-Korbel was killed by Thomas Cashman, who refused to attend his sentencing hearing in 2023

Thomas Cashman, the gunman who killed Olivia as he chased a drug dealer who had run into her Liverpool home, did not appear in court to hear his life sentence in April 2023.

Earlier this year, triple crossbow and knife killer Kyle Clifford refused to attend his sentencing when he received a whole life order.

Southport child murderer Axel Rudakubana was removed from his sentencing hearing for repeatedly shouting in January.

Sabina Nessa was on her way to meet a friend when she was killed.
Image:
Teacher Sabina Nessa was killed by Koci Selamaj in 2021 after he drove to London to assault a stranger

Undated family handout photo issued by the Metropolitan Police of Zara Aleena. A sexual predator who stalked and murdered Zara Aleena is set to challenge his sentence at the Court of Appeal. Jordan McSweeney targeted at least five women before he turned his attention to 35-year-old Ms Aleena as she walked home from a night out early on June 26 2022. Issue date: Friday October 20, 2023.
Image:
Zara Aleena was killed by Jordan McSweeney, who should have been recalled to prison at the time. Pic: PA

Justice minister Alex Davies-Jones said: “I would like to thank the remarkable families of Olivia Pratt-Korbel, Jan Mustafa, Sabina Nessa and Zara Aleena and countless others who have campaigned tirelessly for offenders to have to face the reality of their crimes by attending their sentencing.

“Justice isn’t optional – we’ll make sure criminals face their victims.”

The bill also says it will restrict parental responsibility from child sex offenders who commit serious crimes against their own children.

The powers of the Victims’ Commissioner will also be strengthened to require them to produce an independent report on whether agencies are meeting their statutory duty over the Victim’s Code to hold the government to account.

Child protection charity the NSPCC backed the move, saying they hope it will improve how young victims and survivors are treated, but said it was “not a complete solution”.

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Teenagers to drive trains due to concerns over labour shortages

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Teenagers to drive trains due to concerns over labour shortages

Eighteen-year-olds will be allowed to drive trains due to concerns over labour shortages, the Department for Transport (DfT) has announced.

The current minimum age for someone wanting a career on the railways is 20.

But with 87% of night-before cancellations made because a driver is unavailable, the government has decided to lower the age of entry by a couple of years.

Several operators rely on drivers to work extra shifts voluntarily.

At present, the average age of a British train driver is 48, while 30% are due to reach retirement age by 2029.

A consultation on lowering the minimum age for drivers, carried out last year by the Conservative government, received “overwhelming support from across the industry”, the DfT said.

Other nations which have lowered the age for train drivers are France, Germany, the Netherlands and Switzerland, officials added.

Transport for London opened driver apprenticeships on the Underground to 18-year-olds in 2007.

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Training to drive mainline trains generally takes between one and two years.

Assessment and qualification standards will be unchanged.

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Industry body the Rail Safety and Standards Board said its research had shown 18-year-olds are “capable of safely becoming train drivers”.

New job and apprenticeship opportunities could be available as early as December, the DfT said.

Heidi Alexander, the transport secretary, said the government was “future-proofing” the railways against “delays and cancellations caused by a shortage of drivers”.

Mick Whelan, general secretary of train drivers’ union Aslef, said: “At the moment, young people who want to become train drivers leave school or college at 18, get other jobs, and we miss out as an industry as they don’t wait around until they turn 20 to find a career.”

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Customer stabbed to death inside Lloyds bank in Derby – as two men arrested

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Customer stabbed to death inside Lloyds bank in Derby - as two men arrested

Two men have been arrested after a customer was stabbed to death inside a Lloyds bank.

The victim – a man in his 30s – was attacked at the branch in St Peter’s Street, Derby, at around 2.35pm on Tuesday.

He was pronounced dead at the scene, Derbyshire Police said.

A man in his 40s has been arrested on suspicion of murder, while another man in his 30s is being held on suspicion of assisting an offender. Both remain in police custody.

They were detained around 6pm at the same property in Western Road, Normanton.

Detective Inspector Tony Owen said: “No one else was hurt and while the investigation is at an early stage, at this time we are treating it as an isolated incident.”

The victim has not yet been formally identified, but police said his family had been made aware.

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A Lloyds spokesperson said: “We are deeply saddened by the incident at our Derby branch and our thoughts are with those affected.

“We are supporting our colleagues during this difficult time and will co-operate closely with the police.”

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