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Some military personnel and their families have been forced to use food banks as high inflation and rising costs tip members of the Armed Forces into crisis, Sky News can reveal.

An unofficial food bank even exists at a large Royal Air Force base in Lincolnshire, a defence source said.

The voluntary facility at RAF Coningsby – home to Typhoon fast jet squadrons – was set up by an aviator to collect food donations from servicemen and women to support civilians in their local community. But the source claimed it is now being used by RAF personnel too.

The food bank serves civilians in the local community. Pic: Destiny Outreach Coningsby
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The food bank serves civilians in the local community. Pic: Destiny Outreach Coningsby

Internal RAF documents seen by Sky News – as well as interviews with military sources and charities – offer a sense of the wider impact of the cost of living crisis on defence, including:

• The need for a number of service personnel to choose between “food or fuel”, with some unable to afford to drive home from their base to see family

• One aviator, a single mother, was forced to go without a hot meal for four days because she had spent her last money on baby milk formula

• The volume of enquiries to a key charity from or on behalf of military personnel seeking financial support has more than doubled

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• There are individuals who can no longer even afford the price of the subsidised meals at their mess

• A sense of “discontent” at covering for striking public sector workers on better pay deals when the Armed Forces are not permitted to take industrial action themselves

While the documents referred to the situation inside the RAF, a Royal Navy source and an Army source said personnel in their respective services were also experiencing hardships.

The Royal Navy source said the Ministry of Defence was trying to do more to help, such as support with childcare costs.

“But I suspect more needs to be done,” the source said.

“I’m hearing … stories of sailors unable to head home at weekends or over leave periods due to travel costs, also service personnel using food banks or contacting service charities for assistance with debt management.”

The RAF says the food bank was not set up for its personnel. Pic: Destiny Outreach Coningsby
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The RAF says the food bank was not set up for its personnel. Pic: Destiny Outreach Coningsby

‘The food bank is popular’

The UK provides its Armed Forces with a range of specific benefits such as access to subsidised housing and meals – as well as fuel grants in a bid to keep the offer to join the Army, Navy and RAF attractive and to retain talent.

The support is also in recognition of the particular hardships and inconveniences of military life, and the fact that anyone who serves has to be prepared to make the ultimate sacrifice.

Yet analysis of morale across the whole of the RAF last year by military chaplains revealed that a limited number of personnel were resorting to food banks in the local areas.

An anonymous quote in the report read: “The food bank is popular.”

This was qualified with a footnote that warned: “Food bank use is reported across a majority of units, but nowhere is yet reporting widespread use”.

It continued: “Single figures per unit of families utilising food banks is a working estimate.”

The airbases RAF Benson in South Oxfordshire and RAF Brize Norton in Oxfordshire “are reporting the highest use of food banks”, according to the footnote in the report, which was entitled Chaplaincy Analysis of Whole Force Morale 2022 and dated 12 January 2023.

Overall, the report found that cost of living pressures as well as failings with military accommodation – such as faulty heating and vermin – were the biggest factors “adversely impacting” morale.

Drop-off points for donations have been set up at RAF Coningsby. Pic: Destiny Outreach Coningsby
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Drop-off points for donations have been set up at RAF Coningsby. Pic: Destiny Outreach Coningsby

Separately, the defence source with knowledge of the food bank at RAF Coningsby claimed that service personnel had been using the facility “extensively”.

Asked how they felt about this, the source said: “Incredibly angry and frustrated that we had got to the point where service personnel had to rely on charitable agencies just to exist.”

A junior non-commissioned officer established the food bank – which has its own Facebook page – a couple of years ago to support the local civilian community, having been involved with this kind of charitable activity while posted overseas in the US.

According to the Facebook page, the food bank is run by a Christian group called Destiny Outreach Coningsby. It says it offers support to people living in the town of Coningsby and the surrounding villages.

“With the cost of living rising, please look out for one another. If you are in need of a food parcel then please contact us,” it said.

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Michael Gove said it’s ‘concerning’ that military personnel use food banks

An RAF spokesperson made clear that the food bank was not set up by the RAF for its personnel. However, the spokesperson did not offer a comment on the record about the claim that serving aviators were using the facility.

The Ministry of Defence is understood to regard any use of food banks by military personnel as a “private life matter” and does not have any data to support claims of their alleged use.

However, officials at RAF Coningsby raised concern with Air Command last July about “a worrying increase in personnel seeking assistance and support across all welfare pillars as a direct result of the cost of living crisis”.

The warning was contained in a report, dated 22 July 2022, which was entitled Cost of Living Crisis – RAF Coningsby.

It mentioned the establishment of the food bank.

The report drew on information gathered from the experiences of four focus groups of about 150 personnel and families over a one-week period.

It listed several trends, including “pers [personnel] struggling to afford fuel to drive to work; … pers unable to travel home each week and having to stay on unit, reducing morale and wellbeing; real concern for the winter months where electricity and gas costs will further exacerbate the current situation”.

The paper suggested ways the military could offer relief, such as by increasing the rate paid for fuel use. It noted: “Personnel were having to decide whether to buy food or fuel.”

Armed Forces pay ‘an annual gamble’

The documents and defence sources said pay is another factor creating pressure for the military, especially given soaring inflation.

The chaplaincy analysis talked about a “sense of looming discontent” as service personnel may be called upon to fill in for public sector workers who are striking for better wages.

The Armed Forces Pay Review Body, an independent entity, makes a recommendation each year to the government on any pay increases for the military, which the Ministry of Defence draws upon before making its announcement on what the amount will be.

This should happen before the start of each financial year but is often delayed and any increase in salary is backdated to the beginning of April.

The Ministry of Defence has yet to announce this year’s settlement, though the pay review body has submitted its recommendations and an announcement is expected soon.

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‘If my economic policies fail it’s on me’

One RAF aviator described the process as “an annual gamble on what we may or may not receive”.

Asked what message they had for the government, the aviator said: “Understand that your military deserves to be fairly compensated for the role they play in support of the UK on all fronts … We see through the words and false promises and expect to be treated fairly in return for our commitment to the crown and our country.”

Sarah Atherton MP, an Army veteran and member of the Commons Defence Select Committee, said the government should give the military a 10% pay rise in line with inflation.

“We’ve never had such an unstable global security situation, and we need our Armed Forces to protect us when we want them to protect us,” she told Sky News in an interview.

“We need to make sure they are valued and they feel valued.”

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Do we have an inflation problem?

Stepping in to fill the void are military charities like the RAF Benevolent Fund.

It said enquiries about financial assistance from or on behalf of serving personnel more than doubled last year to 539 cases compared with 2021.

In response to questions about the cost of living and food banks, the RAF spokesman said: The food bank at RAF Coningsby was not set up by the RAF for its personnel, and the RAF offers a range of support, such as welfare officers who can offer financial advice and access to fuel grants and hardship funds provided by the RAF, and supporting charities and associations.

“More widely, defence has created a comprehensive package of support that includes the biggest pay increase in 20 years, freezing daily food costs, providing accommodation subsidies and saving up to £3,400 per child per year by extending wraparound childcare – this is in addition to wider cost of living support provided by the government.”

Last financial year, the government awarded service personnel up to the rank of one-star a 3.75% pay rise – described as the biggest percentage uplift in two decades. But inflation has since rocketed, with consumer prices in February jumping 10.4% from a year earlier.

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Trump hails ‘total reset’ with China as trade tariffs slashed

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Trump hails 'total reset' with China as trade tariffs slashed

The US and China have agreed to slash trade tariffs on each other, a move Donald Trump has said was part of a “total reset” in relations.

The president said the 90-day truce followed “very friendly” talks between the two sides in Switzerland over the weekend and those discussions would continue..

“China was being hurt very badly. They were closing up factories they were having a lot of unrest and they were very happy to do something with us”, he told reporters at the White House.

The breakthrough was announced early on Monday – to the delight of fincial markets – by the leader of the US delegation, treasury secretary Scott Bessent.

US trade representative Jamieson Greer confirmed so-called reciprocal tariffs were now at 10% each.

In real terms, it meant the US is reducing its 145% tariff to 30% on Chinese goods. A tariff of 20% had been implemented on China when President Donald Trump took office, over what his administration said was a failure to stop illegal drugs entering the US.

China has agreed to reduce its 125% retaliatory tariffs to 10% on US goods.

Sector-specific tariffs, such as the 25% tax on cars, aluminium and steel, remain in place.

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Tariffs, taxes on imports of more than 100%, had been imposed on both sides. China was the only country exempt from a 90-day pause on the “retaliatory” tariffs above the base 10% levies applied by America.

Major retailers had been warning Mr Trump of empty shelves as US importers pause shipments.

Mr Bessent said after a weekend of negotiations in Switzerland, the countries had a mechanism for continued talks.

It’s the second major trade announcement made by the US in the last week, after a deal was secured with the UK on Thursday.

The move signals a willingness from the Americans to make deals on tariffs.

Why Trump blinked in US-China trade war


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Ed Conway

Economics and data editor

@EdConwaySky

Of all the fronts in Donald Trump’s trade war, none was as dramatic and economically threatening as the sky-high tariffs he imposed on China.

There are a couple of reasons: first, because China is and was the single biggest importer of goods into the US and, second, because of the sheer height of the tariffs imposed by the White House in recent months.

In short, tariffs of over 100% were tantamount to a total embargo on goods coming from the United States’ main trading partner.

That would have had enormous economic implications, not just for the US but every other country around the world (these are the world’s biggest and second-biggest economies, after all).

So the truce announced on Monday by treasury secretary Scott Bessent is undoubtedly a very big deal indeed.

Read more from Ed Conway here

Welcomed news

The news was received positively by Asian stock markets on Monday as major indexes were up.

In China, the Shanghai Composite stock index rose 0.8%, the Shenzhen Component gained 1.7%, and Hong Kong’s Hang Seng index was up nearly 3%.

In countries across Asia, benchmark stock indexes also rose. Korea’s Kospi grew 1.1%, Japan’s Nikkei was up 0.8%, while India’s Nifty 50 index of most valuable companies gained more than 3%.

US stocks rose sharply at the open.

The S&P 500 and tech-heavy Nasdaq saw their biggest leaps in more than a month, rising almost 3% and 4% respectively.

The market rally was visible in Europe too.

The dollar – hit in recent weeks by US recession speculation – was up more than a cent versus the pound while oil prices also rallied. Brent crude, the international benchmark, was 3.5% higher at $66 a barrel.

What next?

When asked by journalists about what the US wanted to see from China in the 90s, Mr Bessent said, “As long as there is good faith effort, engagement and constructive dialogue, then we will keep moving forward.”

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Explained: The US-UK trade deal

The UK came to the front of the line for deals, Mr Bessent added, “as our oldest ally”.

Switzerland had also moved to the “front of the queue”, he said, while the EU has been slower.

As with the other counties subject to 90-day pauses, a permanent deal will need to be reached, but confidence across the world is likely to have been boosted.

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Businesses now need a clear timetable and roadmap for future negotiations under the newly announced economic and trade consultation mechanism, said Andrew Wilson, the deputy secretary general of the International Chamber of Commerce.

“The credibility of that process for resolving underlying frictions in the Sino-US economic relationship will be mission-critical in terms of restoring business confidence.”

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Monzo lines up bankers to spearhead blockbuster £6bn float

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Monzo lines up bankers to spearhead blockbuster £6bn float

Monzo, the digital bank which counts one in five British adults among its customers, is closing in on the appointment of investment bankers to spearhead a stock market listing valuing it at more than £6bn.

Sky News has learnt that Monzo is working with Morgan Stanley, the Wall Street giant, on a series of meetings with potential investors ahead of an initial public offering which could take place as early as the first half next year.

People close to the company said this weekend that bankers would be formally hired to work on the listing within months, with Morgan Stanley now expected to be handed a key role on the deal.

The timing, size and location of an IPO are still to be determined and will depend on market conditions in London and New York, both of which have been buffeted by Donald Trump’s introduction of swingeing trade tariffs.

However, London is currently seen as the most likely listing venue for Monzo by board members and investors, according to people close to the situation.

The company, which saw its valuation soar to £4.5bn last year after primary and secondary share sales, is considering a further sale of existing shares to allow early investors and employees to cash in, although a decision to proceed has not yet been taken.

Monzo has more than 11m UK retail customers, making it the seventh-largest British bank by customer numbers, and 600,000 business customers.

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Founded a decade ago, it has become one of Britain’s most successful, and valuable, fintech companies.

It employs close to 4,000 people.

Last year, it raised more than £500m by selling newly issued shares to a group of investors led by Capital G, a division of Alphabet-owned Google.

That primary share sale valued the business at £4.1bn.

An IPO, including any new capital raised, would be likely to value Monzo at more than £6bn, and potentially in the region of £7bn, according to banking sources.

Last year’s secondary share sale saw existing Monzo investors StepStone Group and GIC, the Singaporean sovereign wealth fund, buying stock from employees.

The company is now profitable and has diversified into investments and instant access savings accounts.

It has also launched pensions products and accounts aimed at under-16s.

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Monzo is among a new generation of banks which have emerged since the last financial crisis and begun to accumulate a significant share of the UK retail banking market.

Rivals include Starling Bank and Revolut, which was valued at $45bn in its last fundraising and was awarded a banking licence by British regulators last year after a protracted process.

Monzo has recovered spectacularly from a difficult period in 2020 when it emerged that the City watchdog was investigating it for potential breaches of anti-money laundering and financial crime rules.

It has revamped its corporate structure as it pursues an international expansion aimed at enticing new investors to its strategy for long-term growth.

The company has been exploring acquisition opportunities in the US and Europe, although a major deal is not thought to be imminent.

Monzo Bank Holding Group was established to avoid the company facing punitive capital treatment by British regulators as it launches in new overseas markets.

Other Monzo investors include the Chinese group Tencent, Passion Capital, Accel, General Catalyst and Hedosophia.

Monzo is run by TS Anil, its chief executive, and chaired by Gary Hoffman, the banker who salvaged Northern Rock after its nationalisation in 2008.

This weekend, a Monzo spokesperson declined to comment.

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Trade war: Trump floats China tariff cut to 80% ahead of talks

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Trade war: Trump floats China tariff cut to 80% ahead of talks

Donald Trump has floated the idea of cutting US trade tariffs against China to 80% – as key peace talks between the sides prepare to get under way.

The weekend meeting, involving top officials from both nations in Switzerland, is seen as an opportunity to ease the most damaging and punitive element of the trade war.

At stake for both sides is not only a deteriorating domestic outlook but a weakening global economy.

Writing on his Truth Social platform, hours after agreeing an interim deal with the UK, the president said: “80% Tariff on China seems right! Up to Scott B [Bessent].”

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It means the decision will lie with Scott Bessent – the US treasury secretary who will lead the US delegation at the talks in Geneva.

The outcome is eagerly awaited after several rounds of tariff hikes that currently total duties of 125% on US imports to China and 145% on Chinese goods arriving in America.

Both levels amount to an effective trade embargo, given the severity of the numbers. A 80% figure against China would remain hugely restrictive.

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Trump: Tariffs are making US ‘rich’

But the announcement of talks in Switzerland this week has been welcomed broadly – across financial markets too, with the dollar and global stocks rising on Friday in hopeful anticipation of a cooling in the trade hostilities between the world’s two largest economies.

Investors are not only concerned by higher, if not extortionate, prices but also the impact on supply.

The effects are being felt in both economies already.

Fears of a trade war effectively meant that the US economy contracted during the first three months of the year, while the US central bank has held off on interest rate cuts on the grounds that tariffs applied to imports by the Trump administration globally will lift inflation markedly.

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China’s Silicon Valley: ‘It’s our time to battle’

Official data out of China is yet to show any obvious pain, but surveys suggest factory orders are tumbling.

The fact that China is suffering was borne out on Wednesday when the country’s central bank cut interest rates and reduced bank reserve requirements to help free up more funding for lending.

The authorities also agreed wider borrowing facilities to help manufacturers.

Read more:
China moves to ease tariff pain as trade war talks near
US-UK trade pact neither a free-trade agreement or broad trade deal

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It will be hoped that bolstering activity in the economy will help lift prices generally, as China continues to battle deflation.

Officially, China has signalled that it wants the US to make the first concession.

Its delegation in Geneva is led by vice premier He Lifeng – a figure within China who has gained an international reputation as an effective negotiator.

A commerce ministry spokesperson said of the prospects for a breakthrough when confirming the talks: “The Chinese side carefully evaluated the information from the US side and decided to agree to have contact with the US side after fully considering global expectations, Chinese interests and calls from US businesses and consumers.”

White House economic adviser Kevin Hassett told Sky’s US partner CNBC on Friday: “Everything that’s been going on with the meeting in Switzerland is very promising to us.

“We’re seeing extreme respect, treating both sides with respect. We’re seeing collegiality and also sketches of positive developments.”

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