Connect with us

Published

on

The governor of the Bank of England has signalled the UK is still on course for an interest rate cut as official figures show a further easing in the pace of price growth in the economy.

Andrew Bailey was speaking hours before the Office for National Statistics (ONS) revealed that the consumer prices index (CPI) measure of inflation slowed to 3.2% in the 12 months to March – the weakest level for two-and-a-half years.

That was down from the 3.4% figure measured the previous month but slightly above economists’ expectations.

ONS chief economist Grant Fitzner said of the shifts seen last month: “Once again, food prices were the main reason for the fall, with prices rising by less than we saw a year ago.

“Similarly to last month, we saw a partial offset from rising fuel prices.”

A lower inflation rate is welcome for long-suffering households who are seeing a rise in spending power due to wages rising at a faster pace than prices.

A further boost is expected to come from the Bank of England in the coming months as energy-driven inflation continues to ease, with a sharp reduction in CPI this month being widely tipped to take the main measure of inflation towards the Bank’s 2% inflation target.

More on Inflation

Some economists expect the Bank to begin the process of withdrawing its medicine to combat inflation in June.

An interest rate cut, from the current 5.25% level, would have the effect of trimming many borrowing costs that have exacerbated the squeeze on personal finances such as through higher mortgage rates.

Mr Bailey told an International Monetary Fund event in Washington: “In the UK we’re disinflating at what I call full
employment.

“I see, you know, strong evidence now that that process is working its way through.

Please use Chrome browser for a more accessible video player

March: Bank of England governor: ‘We’re on the way’

“Our judgement with interest rates is ‘how much do we need to see now to be confident of the [disinflation] process’.”

But there is a growing school of thought that the Bank may have to hold off on a rate cut.

LSEG data shows a majority of financial market participants now expect a first rate cut in August or even September.

The worries include the threat posed by rising oil costs as the conflicts in the Middle East continue to evolve and the fact that UK wage growth is now running at levels almost double the inflation rate.

Another is emerging from the United States.

Please use Chrome browser for a more accessible video player

US economy suffering ‘vibecession’?

There, the chair of its central bank has warned that the chances of an imminent interest rate cut have faded as the world’s largest economy runs hot.

The problem for the Bank of England in the wake of Jay Powell’s remarks on Tuesday is that any UK rate cut ahead of the Federal Reserve risks weakening the value of the pound against the dollar.

That would raise the cost of importing key goods priced in dollars such as commodities including oil – and stoke inflation.

Mr Bailey acknowledged: “The dynamics for inflation are rather different now, between Europe… and the US.

“I think there’s more demand-led inflation in the US than we’re seeing,” he added.

Continue Reading

UK

Use of drones to fly weapons into prisons has become a ‘threat to national security’, watchdog warns

Published

on

By

Use of drones to fly weapons into prisons has become a 'threat to national security', watchdog warns

The use of drones to fly drugs and weapons into UK prisons needs to be tackled “urgently” because it has become a threat to “national security”, the chief inspector of prisons has said.

Charlie Taylor added that police and the prison service had in effect “ceded the airspace” around HMP Manchester and HMP Long Lartin to organised crime gangs who are using the gadgets to deliver contraband to inmates.

The two high security prisons hold some of the most dangerous men in the country, including terrorists and organised crime bosses.

Mr Taylor’s warning comes after inspections of HMP Manchester, based in the city centre, and HMP Long Lartin, in Evesham, Worcestershire, found both prisons had “thriving illicit economies” of drugs, mobile phones and weapons.

Inspectors also found that basic security measures such as protective netting and CCTV had fallen into disrepair.

Some inmates at HMP Manchester, a category B jail which holds a small number of category A prisoners, had burned holes in windows so that they could receive regular deliveries by drone, the HM Inspectorate of Prisons watchdog said as it published the findings of the inspections.

It added that many of the drones had “increasingly large payloads” which “had the potential to lead to serious disruption and even escape”.

More from UK

Mr Taylor said: “It is highly alarming that the police and prison service have, in effect ceded the airspace above two high-security prisons to organised crime gangs which are able to deliver contraband to jails holding extremely dangerous prisoners including some who have been designated as high-risk category A.

“The safety of staff, prisoners and ultimately that of the public, is seriously compromised by the failure to tackle what has become a threat to national security.

“The prison service, the police and other security services must urgently confront organised gang activity and reduce the supply of drugs and other illicit items which so clearly undermine every aspect of prison life.”

The latest warning comes months after an inmate at high-security HMP Garth in Lancashire told inspectors the prison was like an “airport” because there were so many drones flying in drugs.

Inspectors found prisoners had been using the elements from their kettles to burn holes in their “inadequately protected” Perspex windows to allow the “entry of drones laden with contraband”.

Prisoners burn holes in their windows. Pic: HM Inspectorate of Prisons
Image:
Prisoners burned holes in their windows at HMP Garth. Pic: HM Inspectorate of Prisons

The inspections at HMP Manchester and HMP Long Lartin, which took place across September and October 2024, also revealed other serious concerns around safety and security at both sites.

Mr Taylor felt the situation was so bad at HMP Manchester that he issued an urgent notification for improvement to the Justice Secretary Shabana Mahmood.

At Manchester, 39% of prisoners tested positive in mandatory drug tests, while at Long Lartin, 50% of those who responded to the watchdog’s survey said it was easy to get drugs and alcohol.

Violence and self-harm at both prisons was also found to have increased, which the watchdog said was partly driven by drugs and the accompanying debt prisoners found themselves in.

Meanwhile there had been six “self-inflicted deaths” at Manchester since the watchdog’s last inspection in 2021, with a seventh taking place after the most recent visit.

It is now one of the most violent prisons in the country, with a high number of serious assaults against prisoners and staff.

Read more:
Prisoners left needing hospital after taking ‘drone-delivered’ drugs
Under-strain prison system to shut thousands of cells
New law on early release of short-term prisoners is passed

Many officers “lacked confidence, were demoralised, and were struggling to manage experienced prisoners who were serving long sentences for serious crimes”, the watchdog said.

Manchester was also found to have a chronic rodent infestation, while there was widespread dirt, damp and litter at both sites.

Prisoners at Manchester were also found to have used torn-up foam from mattresses and pillows to keep out the cold.

Inspectors found 38% of prisoners there were locked up during the working day and poor attendance at education and work was further fuelling the boredom, drug-taking, self-harm and violence.

At Long Lartin, which houses both category A and B prisoners, a continued lack of in-cell toilets for many prisoners led them to use buckets and throw bags of excrement out of the windows, many of which were not cleared up, the watchdog said.

The Ministry of Justice said in a statement: “This government inherited prisons in crisis – overcrowded, with drugs and violence rife.

“We are gripping the situation by investing in prison maintenance and security, working with the police and others to tackle serious organised crime, and building more prison places to lock up dangerous criminals.”

Continue Reading

UK

Reform within touching distance of Labour as poll suggests ‘new era’ for British politics

Published

on

By

Reform within touching distance of Labour as poll suggests 'new era' for British politics

Reform UK has grown in support to within one percentage point of Labour according to a new poll for Sky News by YouGov which suggests Britain has entered a new era of three-way party politics.

Sir Keir Starmer looks set to spend the parliament locked in a fight with two right-wing parties after Labour support dropped sharply in the first YouGov poll since the general election.

The poll shows the Tories have now been pushed into third place – two months after Kemi Badenoch was elected leader.

The data collected over the weekend puts Labour on 26%, Reform UK on 25%, Conservatives on 22%, Liberal Democrats on 14% and Greens on 8%.

YouGov voting intention poll 13 January 2025.

This is a huge switch from the general election, when Labour was on 35%, Conservatives on 24%, Reform UK on 15%, Lib Dem on 13% and Greens on 7%.

Politics latest: Chancellor will remain until next election, Downing Street says

This is the first of YouGov’s weekly voting intention polls for Sky News, shared with The Times.

It reflects a drop in satisfaction with the government, a rise in support for Reform UK, and shows how the Labour vote has split in all directions since the election.

Labour has retained 54% of their vote at the general election – 7% have gone to the Lib Dems, 6% to the Green Party, 5% to Reform UK, 4% to the Tories – while 23% of those polled did not say, did not know or would not vote.

Reform UK’s vote has grown since the general election at the expense of all other parties, with 16% of voters who backed the Tories at the ballot last year now saying they’d support Reform.

Read more:
Can Labour turn things around?
Musk having a negative impact on British politics, poll finds

The judgement on Sir Keir’s first six months in office is damning, however.

Some 10% say the government has been successful while 60% say unsuccessful.

Older voters have turned away from Labour. Just 14% of over 65s would now vote Labour, down from 22% around the time of the election.

However, there are signs the Tory party remains a toxic brand. Reform UK are the least unpopular party, with a net favourability rating of -32, Labour a touch worse on -34 and the Tories down on -45.

YouGov interviewed 2,279 voters in Great Britain on Sunday 12 January and Monday 13 January.

Continue Reading

UK

Woman arrested on suspicion of murder after man’s body found in Greater Manchester

Published

on

By

Woman arrested on suspicion of murder after man's body found in Greater Manchester

A woman in her 40s has been arrested on suspicion of murder after the body of a man was found in Greater Manchester.

The man, in his 50s, was found dead at an address in Hope Hey Lane, Little Hulton, on Sunday morning after reports of concern for his welfare.

Following a post-mortem examination, Greater Manchester Police (GMP) said it had launched a murder investigation as his injuries were consistent with an assault.

Officers subsequently arrested the woman and she remains in police custody for questioning.

Read more from Sky News:
Football fan mocked dead player in ‘sick joke’
Pound ‘could freefall to $1.15’
More charged over riots after e-bike crash

Detective Chief Inspector Neil Higginson, from the force’s Major Incident Team, said: “Sadly, following the discovery of a body at a property in Little Hulton, we have now launched a murder investigation, and we have a team of detectives working around the clock to understand the circumstances.

“We do not believe there to be a threat to the wider public, but you will likely see an increased presence of police in your area whilst we conduct further enquiries.

“If you have any information which may assist our investigation, or any dashcam, CCTV, or doorbell footage from the area in the last 24 hours, please get in touch with us.”

He added: “No matter how small the information may seem, it could be crucial to our investigation.”

Continue Reading

Trending