Connect with us

Published

on

The UK economy flatlined in April, according to official figures that have been seized on by the government’s critics as evidence the Conservatives’ heralded plan is not working.

The Office for National Statistics (ONS) said there was zero growth in April compared to the 0.4% figure recorded during March.

A Reuters news agency poll of economists had predicted the 0% performance given earlier evidence that wet weather had knocked retail sales and construction output particularly hard.

Read more
Outlook for economy is stronger, which makes timing of election even more peculiar
The most expensive place to buy a seaside home in the UK

The GDP (gross domestic product) report from the ONS – the last to be released ahead of the election – showed UK overall rainfall at 155% of the long-term average in April.

Construction output was found to have declined by 1.4% as a result, the number crunchers said, also aided by poor demand for construction products in the manufacturing sector.

Production was down by 0.9% while the services sector – accounting for almost 80% of UK total output – grew by just 0.2%.

More from Business

Despite the emphasis on the hit from rain, the numbers still represent a setback for Prime Minister Rishi Sunak’s key election argument that the economy is improving after successive hits from the COVID pandemic followed by the cost of living crisis.

Battle for no 10 promo
Image:
Battle for no 10 promo


The UK exited a short-lived recession at the end of 2023 when growth of 0.6% was registered in the first quarter of the current year.

While economists continue to see growth in the three months to June, expectations are for growth of around 0.3% – half the rate achieved between January and March.

Ahead of polling day on 4 July, there will be a final set of inflation figures followed, the next day, by a Bank of England interest rate decision.

Financial markets and economists see little chance of a rate cut on 20 June, largely because wages are growing at a pace that risks stoking price growth further after significant progress in the battle against inflation.

The consumer prices index measure currently stands at 2.3% and is expected to ease further when the figures for May are released.

Chancellor Jeremy Hunt said: “There is more to do, but the economy is turning a corner and inflation is back down to normal.”

He added that the Conservatives would “keep the economy growing with our clear plan to cut taxes on work, homes and pensions”.

But shadow chancellor Rachel Reeves said of the ONS data: “Rishi Sunak claims we have turned a corner, but the economy has stalled and there is no growth.

Please use Chrome browser for a more accessible video player

UK economy flatlines in April

“These figures expose the damage done after 14 years of Conservative chaos.

“We are now in the third week of this general election campaign and in that time the Labour Party has set out its plan to grow the economy by bringing back stability, unlocking private sector investment and reforming our planning system.

“All the Conservatives are offering is more of the same, with a desperate wish list of unfunded spending promises that will mean £4,800 more on people’s mortgages. Rishi Sunak’s plan is a recipe for five more years of Tory chaos.”

Liberal Democrat Treasury spokeswoman Sarah Olney said the lack of growth in April showed the Tories had “utterly failed” to deliver on their promises.

“As Rishi Sunak’s time as prime minister peters out, so does the UK’s economic growth,” she said.

“The Conservatives have utterly failed to deliver the growth they repeatedly promised, instead presiding over stagnation and economic misery for hardworking families across the country.

“The Conservatives’ manifesto shows they simply lack the ambition and vision to get the economy moving again.

“It’s clear for voters across the country that the only way to make it happen is to vote them out of office on July 4.”

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

Yael Selfin, chief economist at KPMG UK, said of the outlook: “Forward-looking indicators point to renewed momentum in activity over the coming months, supported by an improvement in consumer sentiment as pay growth remains strong.

“The early summer general election could help resolve political uncertainties which could provide a boost for business investment.

“Nonetheless, whichever party wins the election will have to contend with a number of supply-side challenges which will constrain the UK’s long-term growth potential.

“We expect economic activity to remain sluggish in historical terms this year with growth at just 0.5%.”

Continue Reading

UK

Southport stabbings survivor launches campaign to end use of traditional kitchen knives

Published

on

By

Southport stabbings survivor launches campaign to end use of traditional kitchen knives

A survivor of the Southport knife attack is calling for the use of blunt-tipped knives in home kitchens, in a campaign she says is “for the girls”.

In one of her first television interviews since the July 2024 attack, Leanne Lucas, 36, tells Sky News it was the “tip of the knife” that caused injuries that led to her “nearly dying”.

“I never, ever thought I’d be talking about things like this,” Ms Lucas tells Sky’s Katerina Vittozzi, “but since what happened in July, I really can’t sit still and not say how I feel”.

Ms Lucas was leading a group of children in a Taylor Swift-themed dance workshop when they came under attack by Axel Rudakubana, then aged 17.

“What happened before the incident was just pure joy,” Ms Lucas remembers.

“We were just having so much fun. And for that to be ruined and everyone’s life that was involved, to be shattered, is just not acceptable,” she says.

Bebe King, six, Elsie Dot Stancombe, seven, and Alice da Silva Aguiar, nine, were killed in the attack. Ten others, including Ms Lucas, were injured.

The attacker used a kitchen knife with a 20cm blade, purchased via the online retailer, Amazon.

“I don’t want this pain and this trauma that any of us have felt, I don’t want that to happen to another family,” Ms Lucas says.

Her new campaign, launched today, is called Let’s Be Blunt and aims to “raise social awareness” of safer-tipped knives.

Leanne Lucas who was leading a group of children in a Taylor Swift-themed dance workshop when they came under attack by Axel Rudakubana in Southport. Leanne is leading a "Let's Be Blunt" anti-knife campaign. Pic sourced from Leanne Lucas, no credit required
Image:
Let’s Be Blunt aims to alert people to the dangers of sharp-tipped kitchen knives

“A safer option is to go for curved or blunt-tip knives… that reduces that risk of the kitchen knife being used ever as a weapon,” she says.

It’s an issue about which Ms Lucas feels “passionate”.

“[I] will not let evil win. I need to know that I’m doing this for the girls, for myself and for future generations,” she says.

“We don’t need to wait for government or the police to tell us what to do,” Ms Lucas adds, as she calls on the public to “do an inventory” of their kitchen knives.

Since the attack, Ms Lucas says she feels “like I’ve just had my eyes opened” to how “domestic tools can be weaponised”.

“I personally feel that knife crime has got out of control,” she adds.

According to the latest data from the Office for National Statistics, kitchen knives are the most common type of weapon used in knife homicides.

Images of blunt-tipped knives filmed by SN at Viners factory:
Source: CMP Ingest 15 NM15 CR SAF KATERINA VITTOZZI SOUTHPORT SURVIVOR KNIFE CAMPAIGN VINNERS FACTORY 080525
Image:
An example of some of the rounded-edge or safe-tipped kitchen knives now on sale

Images of blunt-tipped knives filmed by SN at Viners factory:
Source: CMP Ingest 15 NM15 CR SAF KATERINA VITTOZZI SOUTHPORT SURVIVOR KNIFE CAMPAIGN VINNERS FACTORY 080525

“You normally hear of the zombie knives, machetes, things like that,” Ms Lucas says.

“They sound dangerous but really, when you look at the figures, the highest figure is the domestic kitchen knife, which we have all got in our kitchen, which we use daily.”

Ms Lucas says “since the attack in the summer,” she has never “cooked with a pointed kitchen knife again” and that using a blunt-tipped knife makes her feel “safer”.

“Obviously, people can hurt people in many ways,” she says. “It’s about reducing that opportunity to cause life-damaging, life-threatening injuries that can take people’s lives.”

Reflecting on the personal nature of the campaign, Ms Lucas tells Sky News it was a “privilege” to be a survivor, but that she does not “want to be defined by what happened to us”.

“My work was for the girls,” she says. “My work was for the community… and just creating memories that will last a lifetime… and I don’t want this to be part of our memories.”

Ms Lucas says she hopes Let’s Be Blunt will “inspire” other Southport survivors.

“If I can show them that there’s hope and that real change came from what happened to us… If I can do that, then that’s what I’ll do.”

Continue Reading

UK

M&S warns of £300m hacking crisis hit – and disruption could last months

Published

on

By

M&S warns of £300m hacking crisis hit - and disruption could last months

Marks and Spencer (M&S) has warned investors it is facing a £300m hit to trading profits as a result of last month’s ransomware attack.

The company said it was aiming to reduce the figure significantly through management of some costs, including the prospect of insurance payouts, but added disruption to its operations could last into July.

The continuing fallout from last month’s cyberattack is hanging over the retailer’s outlook as its online channels remain down for payments.

Website sales are expected to resume, at least partially, in a couple of weeks’ time.

Money latest: Reaction to inflation spike

M&S said it could not comment on whether it had paid a ransom to the hackers.

Chief executive Stuart Machin, who blamed “human error” for the attack, told an analysts’ call the company was “on the road to recovery” and “getting back to business”.

More from Money

It is widely believed the group fell victim to the same hackers, known as Scattered Spider, who were linked to similar attacks on the Co-op and Harrods towards the end of April.

Both M&S and the Co-op have admitted personal customer data was snatched, but say the thefts were limited to names and contact details, with payment details safe.

The Co-op said last week it was aiming to improve grocery availability in its stores but progress is believed to have been limited so far, with some empty shelves still being reported.

M&S has seen more than one billion pounds lost from its stock market value since it declared the incident on 22 April.

Please use Chrome browser for a more accessible video player

Who is behind M&S cyberattack?

The company said of its predicament: “Over the last few weeks, we have been managing a highly sophisticated cyber incident. As a team, we have worked around the clock with suppliers and partners to contain the incident and stabilise operations, taking proactive measures to minimise the disruption for customers.

“We are seeking to make the most of the opportunity to accelerate the pace of improvement of our technology transformation and have found new and innovative ways of working.

“We are focused on recovery, restoring our systems, operations and customer proposition over the rest of the first half, with the aim of exiting this period a much stronger business.

“Since the incident, Food sales have been impacted by reduced availability, although this is already improving. We have also incurred additional waste and logistics costs, due to the need to operate manual processes, impacting profit in the first quarter.

“In Fashion, Home & Beauty, online sales and trading profit have been heavily impacted by the necessary decision to pause online shopping, however stores have remained resilient.

“We expect online disruption to continue throughout June and into July as we restart, then ramp up operations. This will also mean increased stock management costs in the second quarter.”

The statement added the anticipated hit to operating profits this year will be around £300m for 2025/26, which will be reduced through management of costs, insurance and other trading actions. It is expected that costs directly relating to the incident will be presented separately as an adjusting item.

Read more:
What should M&S customers do after cyber theft?
Thousands of UK firms at risk from M&S-style hackers

Mr Machin thanked customers for being “unwavering in their support” for the chain.

“This incident is a bump in the road, and we will come out of this in better shape, and continue our plan to reshape M&S for customers, colleagues and shareholders,” he said.

M&S gave the update while revealing financial results for the year to 29 March.

They showed trading profits at a 15-year high. M&S reported a 22.2% rise to £875.5m, with sales up across each of its product divisions.

Shareholders were rewarded with a 20% increase in the final dividend.

However, that failed to placate investors as the share price fell by almost 3.5% at the market open on Wednesday.

Dan Coatsworth, investment analyst at AJ Bell, said of the update: “Marks & Spencer has lost a significant number of sales after temporarily halting online orders. Disruption to supplies meant gaps on the shelves and more lost sales in-store. It has also incurred extra waste and logistics costs, all having a negative impact on profit.

“The fact online operations might not be back to full power until later in the summer means the company still cannot achieve full earnings potential for some time to come. Marks & Spencer will be able to lower the total hit to profit once it claims on insurance, among other factors, but the cyber-attack has still knocked the business for six.

“There’s still a big unknown regarding any potential fines on Marks & Spencer from the Information Commissioner’s Office (ICO), which enforces data protection regulation.

“There are plenty of examples of companies that have been fined by the ICO for not taking appropriate steps to prevent data breaches. The maximum fine by the ICO is £17.5m or 4% of global annual turnover, whichever is higher. Marks & Spencer has just reported £13.8bn revenue, so 4% of that figure is £552m.

“That’s in a worst-case scenario, and any fine would account for many different factors. We’re unlikely to find out in the near term if there will be a fine as there will be investigations galore into exactly what’s happened and into the retailer’s overall data protection capabilities.”

Continue Reading

UK

Shouts of ‘genocide’ in Commons as David Lammy denounces Israel’s ‘intolerable’ actions in Gaza

Published

on

By

Shouts of 'genocide' in Commons as David Lammy denounces Israel's 'intolerable' actions in Gaza

The foreign secretary has denounced Israel’s actions in Gaza as “intolerable” but stopped short of saying it had committed genocide.

MPs could be heard shouting “genocide” in the Commons chamber as David Lammy announced the government was suspending its trade negotiations with Israel and summoning Tzipi Hotovely, Israel’s ambassador to the UK, to the Foreign Office.

The UK has also sanctioned a number of individuals and groups in the West Bank which it says have been linked with acts of violence against Palestinians – including Daniella Weiss, a leading settler activist who was the subject of Louis Theroux’s recent documentary The Settlers.

Politics latest: Starmer says sorry for being ‘overly rude’ at PMQs

Israel immediately criticised the UK government actions as “regrettable” and said the free trade agreement talks, which ministers have now backed out of, were “not being advanced at all by the UK government”.

Oren Marmorstein, a spokesperson for the Israeli foreign affairs ministry, said: “If, due to anti-Israel obsession and domestic political considerations, the British government is willing to harm the British economy – that is its own prerogative.”

Mr Lammy’s intervention came in response to Israel ramping up its latest military offensive in Gaza and its decision to limit the amount of aid into the enclave.

Tom Fletcher, head of the UN Office for the Coordination of Humanitarian Affairs, accused Israel of “deliberately and unashamedly” imposing inhumane conditions on Palestinians by blocking aid from entering Gaza more than 10 weeks ago.

He also told the UN’s security council last week that it must “act now” to “prevent genocide” – a claim that Israel has vehemently denied.

Please use Chrome browser for a more accessible video player

Aftermath of strike on Gaza school-turned-shelter

Speaking in the Commons, the foreign secretary said the threat of starvation was “hanging over hundreds of thousands of civilians” and that the 11-week blockade stopping humanitarian aid reaching Gaza was “indefensible and cruel”.

Israeli Prime Minister Benjamin Netanyahu has agreed to allow a limited amount of aid into the besieged enclave in response to global concern at reports of famine.

Mr Lammy said Mr Netanyahu’s govenrment was “isolating Israel from its friends and partners around the world, undermining the interests of the Israeli people and damaging the image of the state of Israel in the eyes of the world”.

“We are now entering a dark new phase in this conflict,” Mr Lammy added.

“Netanyahu’s government is planning to drive Gazans from their homes into a corner of the strip to the south and permit them a fraction of the aid that they need.”

Referring to one of the far-right ministers in Mr Netanyahu’s government, he said Bezalel Smotrich “even spoke of Israeli forces cleansing Gaza, destroying what’s left of residents, Palestinians being relocated, he said, to third countries”.

Please use Chrome browser for a more accessible video player

Surgeon compares Gaza to ‘killing fields’

MPs from across the house shouted “genocide” as Mr Lammy said: “We must call this what it is. It is extremism. It is dangerous. It is repellent. It is monstrous and I condemn it in the strongest possible terms.”

In the Commons, a number of Labour MPs urged the government to go further against Israel.

Yasmin Qureshi, the Labour MP for Bolton South and Walkden, said there needed to be a “full arms embargo” and said: “Can I ask the foreign secretary what additional steps he’s going to be taking in order to stave off this genocide?”

Another Labour MP told Sky News that while the statement was “better than previously…without a concrete timeline and a sanctioning of responsible ministers, it’s hard to know what tangible difference it will make.”

Read more:
British surgeon in Gaza says it is now ‘a slaughterhouse’
Gaza at mercy of what comes next – analysis
How Israel has escalated Gaza bombing campaign

Follow The World
Follow The World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

Israeli officials have said its plans to seize all of Gaza and hold it indefinitely. – which would move the civilian population southward – will help it achieve its aim of defeating Hamas.

Israel also believes the offensive will prevent Hamas from looting and distributing humanitarian aid, which it says strengthens the group’s rule in Gaza.

Mr Netanyahu has defended Israel’s actions in Gaza and reacted angrily to a joint statement penned by the leaders of the UK, France and Canada, in which they urged Israel to end its military offensive in Gaza and lift restrictions on humanitarian aid allowed into the enclave.

The Israeli prime minister said: “By asking Israel to end a defensive war for our survival before Hamas terrorists on our border are destroyed and by demanding a Palestinian state, the leaders in London, Ottawa and Paris are offering a huge prize for the genocidal attack on Israel on October 7 while inviting more such atrocities.

“No nation can be expected to accept anything less and Israel certainly won’t. This is a war of civilisation over barbarism. Israel will continue to defend itself by just means until total victory is achieved.”

Continue Reading

Trending