Connect with us

Published

on

The rate of price rises has dropped to 7.9% in the year up to June, according to the Office for National Statistics (ONS).

The consumer price index (CPI) measure of inflation shows prices are still rising, just at a slower pace than before, as the rate fell from 8.7% in the year to May.

Another measure of inflation, closely watched by the Bank of England when deciding whether to increase interest rates, also fell.

Core inflation – the rate of price rises that excludes food and fuel – dropped to 6.9%. The rate had been increasing since January this year.

The majority of analysts now expected that the Bank will only increase the base interest rate to 5.25% early next month. Prior to the inflation announcement an increase to 5.5% was seen as the most likely outcome.

Also changed since Wednesday morning’s inflation data is the high the base interest rate might reach. It had been expected to top 6% but is now estimated to peak at 5.75%.

Interest rates have been hiked 13 times in a row in an effort to dampen economic activity, take money out of the economy by increasing savings, and bring inflation down to 2%.

More on Cost Of Living

A higher rate set by the Bank means more expensive borrowing and higher mortgage bills.

Economists had thought core inflation would remain stuck at the same level as the month before – 7.1% – and that CPI would only fall to 8.2%.

But falling petrol and diesel costs, and a slowing down in food price rises, led to the surprise drop.

The rate of food inflation fell to 17.3% in June from 18.3% in May.

Also falling was the cost of raw materials – they dropped 2.7% in price – the first time they’ve actually become cheaper since late 2020, the ONS said.

The price of goods leaving factories grew 0.1%, down from a rise of 2.7%.

Prices have been rising since the later pandemic years as supply chain problems and difficulty sourcing goods pushed costs up. The war in Ukraine and ensuing energy crisis saw gas bills at record highs which pushed up costs across the economy.

As a result, inflation reached a high of 11.1% in October.

Chancellor Jeremy Hunt said: “Inflation is falling and stands at its lowest level since last March; but we aren’t complacent and know that high prices are still a huge worry for families and businesses.

“The best and only way we can ease this pressure and get our economy growing again is by sticking to the plan to halve inflation this year.”

Continue Reading

Politics

What is the loophole that allowed a family in Gaza permission to come to UK on a Ukraine resettlement scheme?

Published

on

By

What is the loophole that allowed a family in Gaza permission to come to UK on a Ukraine resettlement scheme?

A “loophole” that allowed a Palestinian family to be granted the right to come to the UK under a Ukrainian resettlement scheme was the subject of a lot of debate in the House of Commons today.

Both the prime minister and leader of the opposition criticised a decision by a judge to allow the family of six the right to enter the UK.

Sir Keir pledged to close the “loophole” after he was asked about it by Kemi Badenoch – but could not elaborate on what it was.

Sky News has read through the judgment given by Judge Hugo Norton-Taylor to understand what happened.

Politics latest: ‘Leak’ probe launched at Treasury

Why did the family apply?

The family of six, a husband and wife and their children aged 18, 17, eight and seven, lived in Gaza and their homes were destroyed after the 7 October attacks and subsequent conflict.

They ended up living in a humanitarian zone and then a refugee camp.

In January 2024, the family applied to come to the UK via the Ukraine Family Scheme form, in a bid to join one of the parent’s brothers, who is a British citizen and has lived in the UK since 2007.

While they acknowledged they were not eligible for the Ukraine scheme, the family chose to apply in an attempt to use the Home Office‘s policy on “applications for entry clearance outside the rules”.

The Home Office rejected the request, saying they were not satisfied there were “compelling, compassionate circumstances” to justify a request outside the rules.

They also noted the lack of a resettlement scheme for Palestinians.

Read more:
Judge ‘wrong’ to let Gaza family settle in UK
Palestinian family allowed to settle in UK

The appeals

Despite the Home Office saying there were no grounds to appeal, the family launched one against the decision on human rights grounds.

A judge then ruled that the initial rejection constituted a rejection of human rights, and so allowed an appeal.

Part of this appeal was under Article Eight of the European Convention on Human Rights – the right to a family life between the man living in Britain and his family in Gaza.

This appeal was rejected, with a lack of a Palestinian resettlement scheme noted as a reason.

An appeal was launched at a higher tribunal – and one of the arguments was that the case should be considered on its own merits and not allow the lack of a Palestinian resettlement scheme to outweigh other arguments.

Please use Chrome browser for a more accessible video player

PMQs: War on immigration

The loophole

It is here that the “loophole” seems to have appeared.

At this point. Judge Norton-Taylor heard the case and allowed the appeal.

In his judgment, he stated that it was “wrong to have taken the absence of a resettlement scheme into account at all”.

The judge added that there was “no evidence” he had seen that the Home Office had made a deliberate decision not to implement a Palestinian resettlement scheme.

He also noted that the lack of immigration rules on a topic should not count against someone.

In layman’s terms, the argument seems to be that just because a scheme to resettle people does not exist it does not mean they are banned from coming to the UK via humanitarian routes.

The judgment said the absence of a “resettlement scheme was irrelevant” to their decision.

What next?

Judge Norton-Taylor went on to back the claim from the family in Gaza based on the ECHR and the right to a family life between them and their relative in Britain.

A Home Office spokesperson said: “The Ukraine Family scheme was clearly set out for Ukrainians. We have been clear that we do not agree with this judgment and we twice vigorously contested this case.

“As the prime minister made clear, article 8, the right to a family life, should be interpreted much more narrowly. It is for the government and Parliament to decide who should be covered by the UK’s safe and legal routes.

“We are pursuing all legal avenues to address the legal loophole which has been exploited in this case. The home secretary is urgently reviewing this case to ensure the correct processes are always followed and existing laws correctly interpreted.”

👉Listen to The World with Richard Engel and Yalda Hakim on your podcast app👈

They added that there was no evidence to support the argument and that data from the government shows a “very small” number of Gazans have been allowed to enter the UK – equal to roughly 150.

Sir Keir said he was planning to close the loophole, but it is not clear what this will entail.

Continue Reading

Politics

Texas lawmakers refile Bitcoin reserve bill, adding room for more crypto

Published

on

By

Texas lawmakers refile Bitcoin reserve bill, adding room for more crypto

The bill “would make our state the first to establish a Strategic Bitcoin Reserve and drive innovation, growth, and financial freedom,” said Senator Schwertner.

Continue Reading

Politics

South Korea to allow institutions to sell crypto donations in 2025

Published

on

By

South Korea to allow institutions to sell crypto donations in 2025

The country’s securities regulator will also allow 3,500 corporations and professional investors to open “real-name” accounts on cryptocurrency exchanges as part of a pilot program.

Continue Reading

Trending