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The pace of wage growth has eased back from a record level, according to official figures that showed a resilient labour market despite the stalling economy.

The Office for National Statistics (ONS) reported that average wages excluding bonuses were 7.7% higher than a year earlier in the three months to September.

That was down from the revised 7.9% level registered last month but meant that wages were still rising by 1% after taking the rate of inflation into account.

The ONS said it was the highest rate for real wage growth for two years though economists declared that the data was a clear sign that wage growth was slowing – raising the chance of an earlier than expected interest rate cut by the Bank of England next year.

The easing in the headline wage figure, while slight, will be welcomed by rate-setters who see high pay growth as an inflationary threat.

That is because improved spending power tends to boost demand, and therefore price growth.

The Bank has twice held off on a further interest rate rise since September due to evidence its 14 consecutive hikes, aimed at taming the pace of price increases, is having the desired effect.

The employment data, though, is complicated by the fact that it currently comes with a big health warning.

The ONS is working hard to bolster participation rates for its Labour Force Survey, which is the backbone of the employment figures.

Falling response volumes have knocked the perceived accuracy of the estimates.

The ONS has responded with a series of measures including the return of in-home interviews and re-contacting households that fail to respond.

The problems mean that for a second successive month, the report is incomplete.

It is a crucial tool for providing an overview of the UK labour market and forms a big part of decision making at the Bank of England when deciding interest rate levels.

The decline in the wage figure was mainly explained by one-off payments to NHS staff, made in June, falling out of the calculations.

At 7.7%, it remains above the rate of inflation though that is widely tipped to fall dramatically when the figures covering the year to October are released on Wednesday.

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BoE: Inflation is ‘still too high’

Economists polled by the Reuters news agency see the consumer prices index (CPI) measure easing to 4.8% from the current level of 6.7%.

Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “Much slower wage growth is increasing the chances of a rate cut in H1 (first half) 2024.”

He explained: “Month-to-month growth in average weekly earnings excluding bonuses slowed to 0.24% in September – or 2.9% on an annualised basis – well below the 0.64% average increase in the first eight months of 2023.

“September’s pace is broadly consistent with the 2% inflation target, given trend productivity growth of almost 1%.

“What’s more, the month-to-month change was boosted by sharp increases in pay in the public sector; private-sector wages rose by just 0.13%, or 1.6% on an annualised basis.”

The wider ONS figures showed the UK’s unemployment rate remained static at 4.2% despite the stalling economy – hurt by the Bank’s action to raise borrowing costs.

Darren Morgan, ONS director of economic statistics, said: “Our labour market figures show a largely unchanged picture, with the proportions of people who are employed, unemployed or who are neither working nor looking for a job all little changed on the previous quarter.

“The number of job vacancies fell for the 16th straight month. Nevertheless, vacancies still remain well above their pre-pandemic levels.”

Chancellor of the Exchequer, Jeremy Hunt. responded: “It’s heartening to see inflation falling and real wages growing, keeping more money in people’s pockets.

“Building on the labour market reforms in Spring, the Autumn Statement will set out my plans to get people back into work and deliver growth for the UK.”

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Man admits arson after major fire at MP Sharon Hodgson’s constituency office

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Man admits arson after major fire at MP Sharon Hodgson's constituency office

A man has admitted arson after a major fire at an MP’s constituency office.

Joshua Oliver, 28, pleaded guilty to starting the fire which destroyed the office of Labour MP Sharon Hodgson, at Vermont House in Washington, Tyne and Wear.

The fire also wrecked a small charity for people with very rare genetic diseases and an NHS mental health service for veterans.

The guilty plea was entered at Newcastle Magistrates’ Court on the basis that it was reckless rather than intentional.

Hodgson, who has been an MP since 2005, winning her seat again in 2019. Pic: Reuters
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Hodgson, who has been an MP since 2005, winning her seat again in 2019. Pic: Reuters

The Crown did not accept that basis of plea.

Oliver, of no fixed address, had been living in a tent nearby, the court heard.

Northumbria Police previously said it was “alerted to a fire at a premises on Woodland Terrace in the Washington area” shortly after 12.20am on Thursday.

“Emergency services attended and no one is reported to have been injured in the incident,” it added.

Drone footage from the scene showed extensive damage to the building.

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A spokesperson for the Crown Prosecution Service said: “Our prosecutors have worked to establish that there is sufficient evidence to bring the case to trial and that it is in the public interest to pursue criminal proceedings.

“We have worked closely with Northumbria Police as they carried out their investigation.”

Oliver was remanded in custody and will appear at Newcastle Crown Court on Tuesday, 14 October.

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Community voices shock and fear after woman raped in ‘racially aggravated attack’

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Community voices shock and fear after woman raped in 'racially aggravated attack'

Dozens of people have gathered at a Sikh temple to attend an emergency meeting after police in the West Midlands said they are investigating the rape of a woman as a “racially motivated attack”.

The victim, reported to be a British-born Sikh aged in her 20s, told officers a racist remark was made to her during the attack in Oldbury, which was reported to police just before 8.30am on Tuesday.

The Sikh Federation (UK) said the perpetrators allegedly told the woman during the attack: “You don’t belong in this country, get out.”

Jas Singh, principal advisor to the Sikh Federation (UK), was among the group of faith and community leaders responsible for holding the meeting at the Guru Nanak Gurdwara temple in Smethwick, a few miles from Oldbury, following concerns within the community.

“I think if you look at it in the context of the climate, it makes it even more worrying because there is a trend of hatred… the targeting of migrants,” he said.

“Ultimately, what that means is the targeting of people’s skin colour, and as Sikhs we have the most distinct, unique identity,” he added.

“We bear the brunt of all prejudice and ignorance, and hate.”

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Principal advisor to the Sikh Federation (UK) Jas Singh
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Principal advisor to the Sikh Federation (UK) Jas Singh

Similar sentiments were raised at the meeting, with many horrified by the reports of the sexual assault as well as concerns about their own safety.

“People are trying to divide us,” said a woman in her 30s, who did not want to be named but said, as a Sikh woman, she wanted to be present to have her voice heard.

She was not only referencing the sexual assault but also what she believes has been an increase in overt discrimination.

“Let’s call it what it is, this is racism,” she told the meeting, as she broke down in tears.

Reverend Nick Ross, from Smethwick’s Holy Trinity Church, was also in attendance at the emergency meeting.

He commented on “offensive” graffiti that had been left on the side of the wall of the Sikh temple, while saying his Anglican church had also been defaced.

“We cannot just ignore it, it will go on and it will build, and there will be incidents like this,” he said, referencing racial tensions across the country.

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Faith and community leaders organised the meeting at the Sikh temple
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Faith and community leaders organised the meeting at the Sikh temple

Police are still trying to identify the perpetrators of the attack and want to speak to anyone who may have seen two white men in the area.

The first is described as having a shaved head and a heavy build, and was wearing a dark sweatshirt with gloves on, and the second was reportedly wearing a grey top with a silver zip.

Chief Superintendent Kim Madill, of Sandwell Police, said: “We are working really hard to identify those responsible, with CCTV, forensic and other inquiries well under way.

“We fully understand the anger and worry that this has caused, and I am speaking to people in the community today to reassure them that we are doing everything we can to identify and arrest those responsible.

“Incidents like this are incredibly rare, but people can expect to see extra patrols in the area.”

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Roadwork levels hit record highs – as expert partially blames Boris Johnson

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Roadwork levels hit record highs – as expert partially blames Boris Johnson

The number of roadworks in Britain has more than doubled in the past two years – and frustrated drivers are more likely than ever to get stuck behind temporary traffic lights.

Exclusive data obtained by Sky News reveals there were 425,524 miles of roadworks across the UK last year. That’s enough to stretch around the world a whopping 17 times.

It marks a 110% increase compared to 2023, when there were 203,000 miles of lane closures.

Part of the reason for the surge is the 2019 pledge by then prime minister Boris Johnson to roll out full fibre broadband to every corner of the nation as part of his “levelling up” agenda.

A promise made by Boris Johnson has been partially blamed for the rise in roadworks. File pic: Reuters
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A promise made by Boris Johnson has been partially blamed for the rise in roadworks. File pic: Reuters

Causeway Technologies infrastructure director Nick Smee told Sky News: “It’s absolutely true that the rollout of super-fast fibre has caused a huge spike because we all want those facilities.

“The problem is you can’t do it without digging up the roads.”

'The rollout of super-fast fibre has caused a huge spike,' Nick Smee says
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‘The rollout of super-fast fibre has caused a huge spike,’ Nick Smee says

The original deadline for Johnson’s ‘Project Gigabit’ was this year, but this has been delayed to 2032, meaning drivers could face at least another six years of disruptions.

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Meanwhile, the government is hoping another 100,000 public electric vehicle charging points will be installed by the end of the decade, which will inevitably lead to more asphalt being ripped up for the cables to be laid.

Roadworks are now a regular occurrence in large parts of the country, with emergency repairs often needed for leaking Victorian water pipes and other utilities.

In some cases, the same streets are repeatedly dug up in quick succession, leading to misery for motorists and an increased risk of potholes.

Drivers in London trundled through 490,893 roadworks in 2024, the highest number nationwide, averaging more than 1,300 sites across the capital every day.

Kent recorded 134,430 projects, and Surrey had 132,291. Essex and Hampshire complete the list of the top five roadwork hotspots.

Heavy machinery carrying out roadworks in London
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Heavy machinery carrying out roadworks in London

In January 2024, the then Conservative government said it would crack down on disruptive street works.

The Labour government stood by the pledge and said it would start charging firms that unnecessarily leave roads closed over weekends, which hadn’t previously been possible.

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Officials also planned to double fines for delayed roadworks by this summer. However, the Department for Transport has now told Sky News that won’t happen until next year at the earliest “due to other high priority legislative work pushing it back”.

Clive Bairsto, chief executive of the trade association Street Works UK, said: “If you overfine people, the industry will be forced to use firms of less integrity and you’ll end up with the poor performers being used to do jobs rather than the good performers, which is what we want to encourage.”

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