Connect with us

Published

on

The UK economy is “headed for the worst of all worlds” as businesses expect activity to fall at the start of next year, according to the Confederation of British Industry (CBI).

The industry group’s growth indicator survey found that private sector firms expect to cut down on hiring, reduce output and for prices to rise in the first three months of 2025.

One of the main reasons given by businesses for the poor outlook was Chancellor Rachel Reeves‘ decision to raise employers’ national insurance contributions (NIC) – which is expected to raise around £25bn a year.

While the chancellor accepted the budget decision will not be “easy” for businesses, she said earlier this month the government “made a commitment during the general election… that we wouldn’t increase taxes on working people”.

Please use Chrome browser for a more accessible video player

UK economy declined in October

Alpesh Paleja, the CBI’s interim deputy chief economist, said: “There is little festive cheer in our latest surveys, which suggest that the economy is headed for the worst of all worlds – firms expect to reduce both output and hiring, and price growth expectations are getting firmer.

“Businesses continue to cite the impact of measures announced in the budget – particularly the rise in employer NICs – exacerbating an already tepid demand environment.”

He added that firms are looking for Labour “to boost confidence and to give them a reason to invest” in 2025, “whether that’s long overdue moves to reform the apprenticeship levy, supporting the health of the workforce through increased occupational health incentives or a reform of business rates”.

More on Labour

The CBI’s poll, based on responses of 899 companies between 25 November and 12 December, also found expectations for economic growth were at their weakest since November 2022, in the aftermath of Liz Truss’s resignation as prime minister.

Read more on economy:
Is chancellor playing fast and loose with inflation?
Low Christmas sales in key month, ONS finds

Please use Chrome browser for a more accessible video player

Why has growth ground to a halt?

Minister defends budget

It comes after the economy shrank by 0.1% in October, according to Office for National Statistics (ONS) figures, for the second month in a row.

Lucy Powell, leader of the House of Commons, told Sky News’ Sunday Morning with Trevor Phillips the ONS figures were “disappointing” and said that “of course we want to see these things (economic growth) happening faster”.

The Labour MP for Manchester Central said, however: “This is a bit like turning round some huge oil tanker…

“We take a fundamental view here about fixing the foundations, which is about trying to bring some economic stability, which means making sure that the budget adds up, which is something that we didn’t inherit.

“We inherited this big black hole in the public finances which we had to put right.”

Ms Powell then defended raising employers’ NICs, acknowledging while “it was a difficult decision,” it was made “to get money into the front line” of the NHS and other services.

Read more from Sky News:
Woman set on fire while on New York subway
Labour’s polling collapse is historic, but Farage has seen bigger
Albania to ban TikTok for a year

Responding to the CBI’s survey, shadow business secretary Andrew Griffith said: “Since taking office, the chancellor has made this country a hostile climate for aspiration, for investment and for growth.”

The Conservative MP added: “Rachel Reeves’s tax-raising spree and trash-talking her economic inheritance are literally killing businesses and jobs.

“If there is a recession – and based on these CBI expectations that seems increasingly likely – it will be one made in Downing Street. Labour needs to urgently change course before the damage they are doing becomes even greater.”

Continue Reading

Politics

Hundreds of NHS quangos to be axed – as plans unveiled for health funding to be linked to patient feedback

Published

on

By

Hundreds of NHS quangos to be axed - as plans unveiled for health funding to be linked to patient feedback

NHS funding could be linked to patient feedback under new plans, with poorly performing services that “don’t listen” penalised with less money.

As part of the “10 Year Health Plan” to be unveiled next week, a new scheme will be trialled that will see patients asked to rate the service they received – and if they feel it should get a funding boost or not.

It will be introduced first for services that have a track record of very poor performance and where there is evidence of patients “not being listened to”, the government said.

This will create a “powerful incentive for services to listen to feedback and improve patients’ experience”, it added.

Sky News understands that it will not mean bonuses or pay increases for the best performing staff.

NHS payment mechanisms will also be reformed to reward services that keep patients out of hospital as part of a new ‘Year of Care Payments’ initiative and the government’s wider plan for change.

Please use Chrome browser for a more accessible video player

Do you want AI listening in on chats with your doctor?

Speaking to The Times, chief executive of the NHS Confederation Matthew Taylor expressed concerns about the trial.

He told the newspaper: “Patient experience is determined by far more than their individual interaction with the clinician and so, unless this is very carefully designed and evaluated, there is a risk that providers could be penalised for more systemic issues, such as constraints around staffing or estates, that are beyond their immediate control to fix.”

He said that NHS leaders would be keen to “understand more about the proposal”, because elements were “concerning”.

Read more from Sky News
Amber health heat alert issued
Patient died ‘unexpectedly’ after NHS cyber attack
Doctors told to stop using unapproved AI

Health Secretary Wes Streeting said: “We will reward great patient care, so patient experience and clinical excellence are met with extra cash. These reforms are key to keeping people healthy and out of hospital, and to making the NHS sustainable for the long-term as part of the Plan for Change.”

In the raft of announcements in the 10 Year Health Plan, the government has said 201 bodies responsible for overseeing and running parts of the NHS in England – known as quangos – will be scrapped.

These include Healthwatch England, set up in 2012 to speak out on behalf of NHS and social care patients, the National Guardian’s Office, created in 2015 to support NHS whistleblowers, and the Health Services Safety Investigations Body (HSSIB).

The head of the Royal College of Nursing described the move as “so unsafe for patients right now”.

Professor Nicola Ranger said: “Today, in hospitals across the NHS, we know one nurse can be left caring for 10, 15 or more patients at a time. It’s not safe. It’s not effective. And it’s not acceptable.

“For these proposed changes to be effective, government must take ownership of the real issue, the staffing crisis on our wards, and not just shuffle people into new roles. Protecting patients has to be the priority and not just a drive for efficiency.”

Elsewhere, the new head of NHS England Sir Jim Mackey said key parts of the NHS appear “built to keep the public away because it’s an inconvenience”.

“We’ve made it really hard, and we’ve probably all been on the end of it,” he told the Daily Telegraph.

“The ward clerk only works nine to five, or they’re busy doing other stuff; the GP practice scrambles every morning.”

Continue Reading

Politics

Carrie Johnson admitted to hospital over ‘severe dehydration’

Published

on

By

Carrie Johnson admitted to hospital over 'severe dehydration'

Carrie Johnson – the wife of former prime minister Boris Johnson – has revealed she was admitted to hospital with severe dehydration, as she offered advice to other breastfeeding mothers in the hot weather.

Mrs Johnson, 37, posted a picture of herself and her newborn daughter Poppy Eliza Josephine on Friday in a hospital bed.

“Being hospitalised for two nights for severe dehydration was not on my postpartum bingo card,” she captioned the Instagram post.

Mrs Johnson urged other “breastfeeding mums” to make sure they eat and drink enough “in this heat”, especially those who are “clusterfeeding”.

Poppy was born on 21 May, becoming the couple’s fourth child after their son Frank, born in July 2023, daughter Romy, born in December 2021, and son Wilfred, born in April 2020.

Boris Johnson with his new daughter Poppy Eliza Josephine Johnson. Pic: Carrie Johnson/Instagram
Image:
Boris Johnson with newborn daughter Poppy Eliza Josephine Johnson. Pic: Carrie Johnson/Instagram

In a separate Instagram story, Mrs Johnson described an “honestly brutal week”.

“Mastitis (me), reflux (her), dehydration (me). What a pair we are!,” she said.

“But thank you for all the kind messages, especially all the brilliant advice on reflux. Really appreciate it and made me feel way less alone going thru (sic) it all. And as ever, thanks to our amazing NHS.”

Carrie and Boris Johnson outside Number 10 Downing Street after his resignation in 2022. Pic: PA
Image:
Carrie and Boris Johnson after his resignation in 2022. Pic: PA

Read more from Sky News:
Hundreds of NHS quangos to be axed
‘Most effective’ protection to avoid sunburn (and it isn’t suncream)

The NHS recommends drinking plenty of fluids while breastfeeding – and avoiding caffeine and alcohol to stop their effects being passed on to the baby.

Having a drink nearby when mothers stop to feed is advised, as is water, lower-fat milk, and low-sugar drinks.

The UK Health Security Agency (UKHSA) has issued an amber heat health alert for the next four days.

Although not a public weather warning, it advises health and social care organisations of possible dangers to their patients and facilities.

Temperatures could reach 34C on Monday – with a 20% chance of beating the hottest June day on record of 35.6C from 1976.

The likelihood of record-breaking temperatures could increase over the weekend as the day approaches.

Continue Reading

Politics

Fixing welfare a ‘moral imperative’, Starmer says, after government U-turn

Published

on

By

Fixing welfare a 'moral imperative', Starmer says, after government U-turn

Sir Keir Starmer has said fixing the UK’s welfare system is a “moral imperative” after the government’s U-turn.

The prime minister faced a significant rebellion over plans to cut sickness and disability benefits as part of a package he said would shave £5bn off the welfare bill and get more people into work.

The government has since offered concessions ahead of a vote in the Commons on Tuesday, including exempting existing Personal Independence Payment claimants (PIP) from the stricter new criteria, while the universal credit health top-up will only be cut and frozen for new applications.

Speaking at Welsh Labour’s annual conference in Llandudno, North Wales, on Saturday, Sir Keir said: “Everyone agrees that our welfare system is broken, failing people every day.

“Fixing it is a moral imperative, but we need to do it in a Labour way, conference, and we will.”

Please use Chrome browser for a more accessible video player

Starmer defends welfare U-turn

Sir Keir also warned of a “backroom stitch up” between the Conservatives, Reform UK and Plaid Cymru ahead of next year’s Senedd elections.

He said such a deal would mark a “return to the chaos and division of the last decade”.

But opposition parties have hit back at the prime minister’s “imaginary coalitions”, with Plaid Cymru accusing Labour of “scraping the barrel”.

Reform UK said the NHS “isn’t safe in Labour’s hands” and people are “left waiting in pain” while ministers “make excuses”.

Voters in Wales will head to the polls next May and recent polls suggest Labour are in third place, behind Reform and Plaid.

Labour have been the largest party at every Senedd election since devolution began in 1999.

Conservative Party leader Kemi Badenoch has not ruled out making deals with Plaid Cymru or Reform at the Senedd election.

Read more:
This has been the PM’s most damaging U-turn yet
Is Starmer at the mercy of his MPs?

At the conference, the prime minister was joined on stage by Wales Secretary Jo Stevens, First Minister Eluned Morgan and deputy leader of Welsh Labour Carolyn Harries.

He described Baroness Morgan as a “fierce champion for Wales” and “the best person to lead Wales into the future”.

Sir Keir said the £80m transition board to support Port Talbot steelworkers after the closure of the plant’s blast furnaces was a result of “two Labour governments working together for the people of Wales”.

He described Nigel Farage as a “wolf in Wall Street clothing” who has “no idea what he’s talking about” on the issue.

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

The PM said the Reform UK leader “isn’t interested in Wales” and has no viable plan for the blast furnaces at Port Talbot.

“When you ask him about Clacton, he thinks he’s running in the 2.10 at Ascot,” Sir Keir joked.

“He’s a wolf in Wall Street clothing.”

Mr Farage has said his party wants to restart the blast furnaces at Port Talbot.

Around 20 tractors were parked on the promenade in Llandudno ahead of the speech, as farmers gathered outside the conference to stage a protest.

It was later followed by a pro-Palestine demonstration of around 200 people, with around a dozen counter-protestors also in attendance.

Continue Reading

Trending