Government borrowing increases due to public sector salary hikes

The gap between government revenue and expenditure has not been this large since 2020, the year of the pandemic when the furlough program was active.

Business and finance journalist @taaffems

Thursday, November 21, 2024, 12:

Last month saw government borrowing climb to £17.4 billion, marking it as the second highest October on record, according to official data.

Experts had forecasted that borrowing would reach £13.3 billion.

The Office for National Statistics (ONS) reported that public sector net borrowing increased by £1.6 billion compared to the same month the previous year.

Data indicated that interest on the central government's debt climbed to £9.1 billion for the month, marking the highest October total ever recorded.

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Jessica Barnaby, the Deputy Director for Public Sector Finances at the ONS, stated, "This month's borrowing reached the second highest level for October since we started keeping monthly records in January 1993.

Despite a reduction in the primary rates of national insurance earlier in 2024, overall revenue increased compared to the previous year.

"Nonetheless, expenditures have outpaced revenues due to increased spending on public services, benefits, and debt interest costs compared to the previous year."

The difference between government revenue and expenditures hasn't been this substantial since 2020, the year marked by the pandemic and the implementation of the furlough program.

Increased interest rates have led to higher costs for government borrowing as the US election approached.

Doubts about who would emerge as the next U.S. president and the contents of the upcoming budget announcement increased the interest rate the UK had to offer on its government bonds, which are securities issued to gather financial resources.

Last month saw the implementation of several salary increases for public sector workers, introduced by the newly elected Labour administration.

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The ONS noted that another element driving this was the rate at which expenditures on public services and benefits outpaced the growth in tax revenues.

Tax income increased even with reductions in national insurance, though not at the pace of expenditures.

This development may be disappointing for Chancellor Rachel Reeves, who has pledged to cut down debt, stabilize the economy's core, and boost expenditure.

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This is the initial announcement regarding public sector finance following her budget release in October.

According to forecasts from the independent Office for Budget Responsibility (OBR), government expenditures are expected to increase, with projections suggesting a rise of approximately £70 billion in spending over the coming five years.

Expressed as a ratio to GDP, which accounts for all economic production, debt reached levels comparable to those of the 1960s.

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European Union to Provide €700,000 in Aid for 632 Laid-off Workers in Belgium

The European Union has announced a financial aid package totaling €700,000 to assist 632 employees who were recently laid off from the Purmo and Sappi machinery and paper companies in Belgium.

On Thursday, the European Parliament's Budget Committee gave the green light to Belgium's application for €704,135 in financial assistance from the European Globalisation Adjustment Fund for Displaced Workers (EGF). This funding is earmarked to assist 632 former employees of the machinery and paper companies Purmo and Sappi, located in Limburg, a region in Flanders. Members of the European Parliament highlighted that the affected workers face significant challenges in finding new employment, as a third of them are 55 years old or older, and 30% have limited educational qualifications.

Sappi Lanaken and Purmo Group have been forced to let go of workers as a result of decreased demand for their offerings and economic difficulties. The Sappi Lanaken facility shut down operations because the rise of digital technology has lowered the demand for wood-free coated paper, and altering production methods proved too expensive. Meanwhile, Purmo Group's Zonhoven site stopped its operations following a significant 60% decline in the demand for panel radiators, coupled with increased operational expenses and adverse market conditions, which were impacted by the conflict in Ukraine and European Union regulations that support other heating solutions.

The funding from the EGF is set to cover expenses related to counseling, career guidance, job search support, and training in vocational, digital, and language skills. The overall projected cost for these initiatives stands at €1.2 million, with the EGF contributing 60% (€700,000) and the Flemish Employment and Vocational Training Service (VDAB) providing the remaining 40% (€500,000).

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The preliminary document prepared by Matjaž Nemec, a member of the Socialists and Democrats from Slovenia, which advises Parliament to endorse the assistance, received 29 votes in favor, with one vote against and no abstentions. The full Parliament is anticipated to give its approval at the plenary session scheduled for December 16-19 in Strasbourg.

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According to the EGF regulation for the years 2021 to 2027, the Fund provides assistance to workers and self-employed individuals who have been forced out of their jobs due to unforeseen significant restructuring events. Since its inception in 2007, the EGF has distributed €696 million across 180 instances, aiding over 169,000 individuals in 20 different Member States. The initiatives backed by the EGF are designed to supplement national efforts in active labor market strategies.

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EU Allocates €700,000 to Assist 632 Laid-Off Workers in Belgium

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A total of 632 former employees from the machinery and paper companies Purmo and Sappi in Belgium are set to benefit from €700,000 in financial support provided by the European Union.

On Thursday, the Budgets Committee gave the green light to Belgium's application for €704,135 in financial assistance from the European Globalisation Adjustment Fund for Displaced Workers (EGF). This funding aims to aid 632 ex-employees from the machinery and paper companies Purmo and Sappi, located in Limburg, a province in the Flemish region. Members of the European Parliament highlighted that a significant portion of these displaced workers face major employment challenges, with one-third being 55 years or older and 30% having limited educational backgrounds.

Sappi Lanaken and Purmo Group faced the difficult decision to let go of workers as a result of reduced demand for their goods and economic hurdles. Sappi Lanaken shut down its facility because digital advancements lessened the necessity for woodfree coated paper, and changing production methods proved too expensive. Meanwhile, Purmo Group halted operations at its Zonhoven site after experiencing a 60% decline in the demand for panel radiators, coupled with increased operational expenses and challenging market conditions exacerbated by the conflict in Ukraine and European Union policies that support alternative heating solutions.

The financial support from the EGF will be allocated to cover expenses related to counseling, career guidance, job hunting support, and training in various skills such as vocational, digital, and language abilities. The overall budget for these initiatives is projected to be €1.2 million, with the EGF contributing 60% (€700,000) and the Flemish Employment and Vocational Training Service (VDAB) providing the other 40% (€500,000).

Upcoming Actions

A preliminary report authored by Matjaž Nemec, a member of the Socialists and Democrats from Slovenia, which suggests that Parliament endorse the assistance, received strong backing with 29 votes in favor, one against, and no members abstaining. The full Parliament is anticipated to give its approval at the plenary session scheduled for December 16-19 in Strasbourg.

Context

According to the EGF regulation for the period 2021-2027, the Fund offers assistance to workers who have been laid off and self-employed individuals who have lost their jobs because of unforeseen large-scale restructuring events. Since its inception in 2007, the EGF has distributed €696 million across 180 cases, aiding over 169,000 individuals across 20 member countries. The initiatives backed by the EGF are intended to enhance national efforts aimed at active labor market participation.

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Europe's Future Holds Promise

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During the 6th Trilateral Business Forum held in Paris, the President of the European Parliament, Metsola, emphasized that enhancing economic productivity is fundamental to increasing Europe's competitive edge.

The Sixth Three-Party Business Forum

Speech Delivered by Roberta Metsola, President of the European Parliament

Paris, 21 November 2024

Mr. Patrick Martin, the President of MEDEF,

President of Confindustria, Mr. Emanuele Orsini,

CEO of the BDI, Ms. Tanja Gönner,

Dear Minister Tajani, esteemed Antonio,

Attendees and contributors of this Three-Nation Business Summit,

I appreciate the chance to speak with you today. I want to emphasize the significance of these dialogues between the European Parliament and the European industry. Especially as we embark on a new legislative period, these discussions are crucial in helping us identify what is effective, what isn't, and, most importantly, the direction we should take moving forward.

We find ourselves in a challenging context as we gather. This marks the fourth winter since Russia initiated its invasion of Ukraine. Meanwhile, isolationist policies are gaining appeal, geopolitical tensions are worsening, and technology is progressing at a swift pace. Additionally, there is a transformation in how major global economies view their industries compared to ours, placing immense strain on Europe's global position. It is crucial that we remain proactive and resist being marginalized.

Action is essential. This requires not only a strategy for the economy but also a political commitment to learning, adapting, and making reforms.

The most prosperous times for Europe are still to come.

Distinguished Guests,

While I typically lean towards optimism, today I am addressing you with a dose of realism. We are aware of the obstacles we face and understand what needs to be done. Our task now is to discover the best way to achieve our goals.

I mention this to set the stage for what I believe should be our main emphasis during the upcoming legislative period. Let me clarify, there is no one more supportive of Europe than the current President of the European Parliament. However, I believe that engaging in some self-reflection, being more attentive, and adjusting our direction when necessary, is exactly what will fortify our European initiative in the long run and aid us in reclaiming our competitive advantage.

When discussing ways to enhance Europe's competitive edge, we must begin with productivity. In the last ten years, labor productivity in Europe has seen an annual increase of only 0.8%. This figure serves as more than just a number; it is an urgent reminder. As the population ages and the workforce diminishes annually, enhancing productivity becomes essential. This holds true even as we allocate resources to retraining and upgrading the skills of our workforce.

The solution to bridging this divide is rooted in fostering innovation, achieving consistency, and securing profitability for our businesses. This approach is crucial for regaining what has been lost. By speeding up our digital transformation and pouring resources into vital areas such as clean technology, pharmaceuticals, transportation, and semiconductors, we can stimulate sustainable development and safeguard the future of our industries.

For European industry to succeed, a supportive environment and well-structured framework are crucial. This entails intelligent and efficient regulation, emphasizing consistent enforcement and reliability rather than frequently changing objectives.

Frequently, we observe that policies created with good intentions end up inadvertently hindering advancement. The cumbersome, overwhelming, and constantly shifting requirements for reporting or compliance tend to impact our small businesses and microenterprises the most.

My goal is for the European Union to earn a reputation for its effective regulatory measures, moving away from the excessive bureaucracy that is still prevalent. The European Parliament, as a co-legislator, is crucial in establishing a regulatory framework that is both straightforward and consistent, as well as accelerating the process for obtaining funding.

As candidates for the European Parliament elections, we realized the necessity for rules that are more intelligent, efficient, and predictable. We will also require your assistance in communicating with the other parties involved, such as the Council, the Minister, and the Heads of Governments, when it comes to making decisions about the legislative tools we have discussed.

In the last fortnight, we've conducted hearings for Commissioner-designates with the objective of establishing a new Commission by December 1st. Although the process was challenging, we are set to meet our planned timeline, just as we did five and ten years ago. We are neither behind schedule nor ahead; we are right on track. The purpose of evaluating these candidates is to ensure that our agendas and initiatives are carried out effectively.

It is clear that the expenses associated with energy are a significant barrier. This issue is a vital component that we need to address. Companies within the European Union are confronted with electricity prices that can be as much as three times higher than those in other parts of the world. This situation leads to increased production costs, reduced profit margins, and hampers competitiveness. In the short term, it's crucial to expand our energy sources through dependable partnerships, while ensuring that we also maintain a consistent and trustworthy approach.

The developments on the other side of the Atlantic have increased the urgency to address this issue promptly.

In my opinion, discussions about energy should go beyond mere advancement; they should focus on integration. Creating a completely linked European electricity market might lower the need for investments in storage and backup power by approximately 20 to 30 percent. By implementing shared policies, such as the EU electricity market reform approved by the European Parliament this year, we can establish a system that benefits everyone. This represents genuine strategic independence.

Naturally, financial backing is crucial for any of this to take place. The European Union's Multiannual Financial Framework is set to conclude in 2027. This presents a significant chance to create a contemporary budget that is adaptable, capable of addressing emergencies, and in sync with necessary investments. The European Parliament, holding budgetary authority, will also contribute to this effort.

While public financing can help us significantly, it won't cover all our needs. Therefore, finalizing the Savings and Investments Union is crucial. This initiative is essential to encourage businesses to remain in Europe and expand their operations here.

The methods by which we can encourage private investors to fund our key initiatives and simplify the process for the public sector to secure its portion of the financing.

Permit me to briefly address the issue of market fragmentation.

In essence, it acts as our greatest adversary. Its effects are evident in sectors such as energy, banking, and capital markets. Additionally, its impact is noticeable in industries such as telecommunications and defense.

In the previous year, we marked three decades since the establishment of our Single Market. Though hurdles and difficulties have consistently arisen, the true measure of its success lies in its capacity to keep evolving. It remains essential for us to ensure that the Single Market fulfills its commitments.

With the right political determination, I firmly believe it is achievable. This urgency stems from the fact that our time is quickly dwindling.

Esteemed Guests,

The European Parliament welcomes change with open arms. We do so because we recognize the duty we have to not only Europe's economy but also to each individual who depends on it.

I would like to guarantee that over the next five years, the European Parliament will remain dedicated to building a Europe that benefits its entrepreneurs, its industrial sectors, its households, its manufacturing plants, and its agricultural community.

A Europe that safeguards its own interests, promotes economic development, and maintains stability. A Europe prepared to tackle current challenges and ready to face future uncertainties.

I appreciate it.

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Media Update on Upcoming Plenary Session

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Representatives from Parliament and various political groups are scheduled to provide a media briefing regarding the plenary session set for November 25th to 28th. This briefing will take place on Friday at 11:00 a.m. in the Anna Politkovskaya press room within Parliament.

Date and Time: Friday, November 22nd at 11

Location: Anna Politkovskaya press room in Brussels, accessible also through Interactio.

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Translation services for the press briefing will be offered in both English and French.

Reporters who want to engage and pose questions should join through Interactio by clicking on this link: https://ep.interactio.eu/uw5m-71vf-mi2k

Starting at 11:00 on Friday, you can watch it live either in the Anna Politkovskaya press room at Parliament or through Parliament's online streaming service and EbS.

Details for Journalists – Utilize Interactio to Submit Inquiries

Interactio is compatible exclusively with iPads using Safari and computers running either Mac or Windows operating systems that utilize Google Chrome.

Upon logging in, provide your name along with the media organization you represent in the first name and last name sections.

To enhance audio clarity, it's recommended to utilize headphones along with a microphone. Video is required for any interventions to be interpreted.

Reporters unfamiliar with Interactio are requested to log in 30 minutes prior to the press conference to conduct a connection check. Technical support will be available if needed.

After establishing a connection, click on the chat window located in the top right corner to view service notifications.

To find out more, refer to the connection instructions and advice for speakers participating remotely.

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'Assistance required': Employees state rampant theft following a spike in bold robberies

A joint survey by Sky News and the Association of Convenience Stores reveals recent data indicating that 80% of store owners experienced retail crime in the past week.

Political and human interest reporter @NickMartinSKY

Wednesday, November 20, 2024, at 9

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A lady nonchalantly enters a small shop and begins loading a bread basket with items from a shelf.

A store clerk attempts to intervene, but she dismissively brushes him aside and continues. Having filled the crate with goods, she exits the store without making a purchase.

Every day across the UK, retailers are raising alarms, describing the dramatic rise in shoplifting as "out of control."

I'm stationed in the surveillance room of a bustling downtown retail store, observing as a young student enters and casually pockets a sandwich, tucking it away into his coat.

Shop employee Anton Mavroianu stands by the main entrance, keeping an eye out for the young person to exit.

As the boy departs, Anton insists on retrieving the item. Rather than showing signs of panic upon being discovered, the boy chuckles and casually strolls away.

"Attempting to halt their progress is all that's within our power," Anton confides. "However, for us, it's simply business as usual."

Several weeks prior, Anton attempted to apprehend a thief pilfering items from the shop, at which point the individual brandished a knife and made an aggressive move towards him.

This alarming event highlights the serious risks faced by store employees as they attempt to curb the increasing wave of bold shoplifting incidents.

The number of shoplifting incidents reported to law enforcement in England and Wales has reached its highest point in two decades.

According to the British Retail Consortium (BRC), the retail industry suffers significant financial losses due to theft every year, exacerbating the challenges it faces amid economic instability and the ongoing recovery from the pandemic.

Persistent theft poses a serious threat to the survival of small businesses, which do not have the resources that larger chains possess.

Explore further on retail theft: How a surge of shoplifters is driving up crime rates. Co-op faces almost £40m in losses due to theft and fraud over half a year.

Ricky Dougall, who operates a series of convenience stores, reports that thefts led to approximately £100,000 in losses for his business last year.

"Shoplifting significantly hampers our ability to expand the business."

"Individuals enter and take what they want as if it belongs to them, and when you contact law enforcement, they often fail to respond."

Mr. Dougall points out that a significant issue lies in the categorization of this crime.

In 2016, the sentencing rules for thefts below £200, often referred to as "low level shoplifting", were loosened. This change is now being cited as a reason for the increase in such incidents.

A joint survey by Sky News and the Association of Convenience Stores reveals that 80% of store owners experienced a criminal incident in their shops during a week in October.

The survey revealed that a significant 94% of store owners report an increase in shoplifting incidents over the past year, and 83% express doubt about police responsiveness in addressing retail crimes at their locations.

Paul Cheema of the Association of Convenience Stores mentions that retailers are seeking assistance from the government.

"He expressed to me that he believes officials are indifferent to the plight of retailers," he said. "The financial losses are substantial, and I doubt we can endure this much longer."

"I strongly encourage Keir Starmer to visit us and personally observe the difficulties we are encountering."

In response, retailers are significantly increasing their investments in security, including upgrading their surveillance technology and expanding their security personnel.

However, these financial commitments frequently result in increased costs, which are typically transferred to the customers in the form of raised prices.

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In conversation with Matt Roberts, the retail manager at the store, he expresses his concerns about shoplifting, but he is even more concerned about the wellbeing of his employees.

He suggests, "I believe they likely fear going to their job, constantly on edge, anxious about whether today will bring an incident or if they might have to face someone."

"The situation is dreadful. It has spiraled beyond our control and we urgently require assistance."

The administration has recognized the critical nature of the problem. Discussions led by the Home Secretary involving retail groups and police forces are currently taking place to develop a detailed plan.

In the monarch's address, the administration presented specifics of a Crime and Policing Bill, which vowed to "implement more stringent actions to combat minor instances of shoplifting" and to establish a distinct crime for attacking a retail employee.

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Potential Impact of Winter Fuel Reduction: Government Projections Indicate Up to 100,000 More Pensioners May Face Poverty by 2027

Today, the Work and Pensions Secretary Liz Kendall released data indicating a significant rise in pensioner poverty if current policies remain unchanged. The projections, which are approximate and rounded to the nearest 50,000, highlight potential future challenges without further policy intervention.

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Tuesday, November 19, 2024, 22:

Projections from the Department for Work and Pensions suggest that by 2027, an additional 100,000 retirees may face poverty following the government's move to eliminate the winter fuel allowance.

Labour's move to end the blanket £300 payment for all senior citizens, opting instead to target it towards those receiving specific benefits, faced significant backlash following its announcement during the summer.

Until this point, there had been no release of an impact assessment regarding the plans.

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Following a request from the Work and Pensions Select Committee, Secretary for Work and Pensions Liz Kendall has released the previously undisclosed information to the public.

Projections indicate that an additional 50,000 retirees may experience "relative poverty after housing costs" by the end of the fiscal year 2025, with a similar increase expected the following year, and a doubling to 100,000 by the end of 2027.

Subsequently, the number decreases to 50,000 individuals in the fiscal year concluding in 2028, and then rises again to 100,000 for the fiscal years concluding in 2029 and 2030.

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Nonetheless, Ms. Kendall's letter contains numerous qualifications and explanations for the figures presented.

The key point to understand is that the figures are not accumulative. This means that by 2030, there won't be an additional 450,000 pensioners living in poverty. Instead, the numbers represent the yearly difference from what would occur if no changes were made.

By 2030, projections suggest that an additional 100,000 retirees might face poverty if the proposed changes are implemented, as opposed to a scenario where no modifications are made.

Further Reading: Are you still qualified to receive winter fuel payments? The number of pension credit applications spikes following reductions in payments.

Additionally, it's important to note that the model's minimum population increment is 50,000, meaning it cannot display numbers between 50,000 and 100,000.

Additionally, it is noted that the model does not account for various governmental measures, such as initiatives aimed at boosting enrollment in pension credit programs.

If an individual is a recipient of pension credit, they will also be eligible for the newly introduced means-tested winter fuel payment. However, the government has noted that a significant number of qualifying pensioners have not yet signed up.

The letter highlights that there has been a 152% increase in applications.

In her letter, Ms. Kendall states: "The choice to means-test winter fuel payments was neither anticipated nor desired by the government. Nonetheless, due to the significant £22bn deficit we encountered, we had to make tough choices to stabilize our finances."

"Considering the critical condition of government finances, it is appropriate to focus our assistance on the most vulnerable, as we proceed with our efforts to repair the basic structures and secure economic stability. This approach not only supports our long-term commitment to aiding pensioners but also enables us to uphold our promise regarding the triple lock."

Today, the Scottish Labour Party announced plans to center its 2026 Holyrood campaign on the promise of comprehensive winter fuel payments, a stance that diverges from the broader UK Labour Party policy.

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A representative from the government stated, "The internal forecasting regarding poverty levels was developed as standard advisory for policy-making. This forecast is prone to various uncertainties and fails to reflect the extensive efforts we are undertaking to boost enrollment in pension credit. Since July, our promotional campaign has successfully achieved a 152% rise in the number of claims filed."

The analysis fails to account for the additional assistance we've implemented for the most vulnerable, including our expansion of the household support fund. Numerous elderly individuals will gain from the £150 warm home discount and the cold weather payments, which are designed to aid with their energy expenses. Furthermore, come April, millions of retirees will see their state pension increase by as much as £470.

Helen Whately, the Conservative shadow secretary for work and pensions, commented, "At last, the barrier has burst, revealing what Labour has always been aware of."

The Labour Party decided to grant significant pay increases, which exceed inflation rates, to satisfy their union backers. As a result, an additional 100,000 elderly individuals are expected to fall into poverty.

"Now that the real effects of their reduction have come to light, it's time for Labour to roll it back."

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Donald Trump schedules trip to the UK

Wednesday, November 20, 2024 07:01,

🎧Check out the Politics At Jack And Sam's podcast on your favorite podcast platform!🎧

Sky News' assistant political editor Sam Coates and Politico's Jack Blanchard provide a daily rundown of upcoming political events in less than 20 minutes.

Jack is reporting from Washington, where there is still a lot of talk about Trump's recent choices for his cabinet and his plans for the 2024 elections, potentially including a trip to Scotland next year.

Prime Minister Keir Starmer is on his way back from Brazil and will be absent from the upcoming Prime Minister's Questions, with Angela Rayner stepping in to take on the Conservative Party's new team. Who is Alex Burghart, the Conservative representative set to challenge her?

Additionally, Jack and Sam join the conversation on regulating social media and discuss Elon Musk's summons to testify before a special committee.

Reach out to Jack and Sam via WhatsApp at 07511 867 633, or drop them an email at jackandsam@sky.uk.

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Inflation surged to an unexpected 2.3% in October due to increasing energy costs.

Following the release of higher-than-anticipated inflation figures, the likelihood of a reduction in interest rates in December has diminished.

Business and economics journalist @taaffems

Wednesday, November 20, 2024, 09:

Official data indicates that inflation has surged beyond anticipations, fueled by a rise in energy costs.

This marks the first increase in the rate of inflation, as indicated by the consumer prices index (CPI), in three months.

In October, the rate reached 2.3%, reported the Office for National Statistics (ONS), surpassing the 2.2% predicted by economists.

This represents a significant rise from the 1.7% noted the previous month.

Last month, families saw an increase in their home gas and electric bills due to adjustments in the energy price cap, which added approximately £12 to the monthly cost of an average yearly bill.

Inflation remained stable as prices for live music and theatre tickets decreased, alongside ongoing reductions in raw material costs, driven by lower oil prices.

Finance Blog: Tracking Real-Time Responses to Inflation Updates

Recent inflation figures are likely to worry those responsible for setting interest rates.

How concerned should we be regarding the latest inflation updates?

The current statistics are significantly lower compared to the high inflation rates of 2022, which reached a peak of 11.1%. The general trend of decreasing inflation follows the Bank of England's strategy of increasing interest rates.

Concerns about inflation have been sparked by the Labour Party's budget plans, which include a significant increase in government expenditure as a means of fiscal stimulus for the economy.

An increase in national insurance contributions for employers might also result in elevated prices.

This has led to an increase in inflation expectations and probably decelerated the rate at which interest rates are being reduced.

Explore Gurpreet Narwan's comprehensive breakdown of the latest inflation developments.

What's the situation with interest rates

Recent figures could influence the probability of the Bank of England reducing interest rates in the upcoming month.

Prior to the release of the inflation data, market predictions indicated a 78.3% probability that interest rates would remain the same, with a 21.7% likelihood of a decrease by 0.25 percentage points in borrowing costs.

Following the announcement, the likelihood of no reduction shifted to 84%.

Additionally, there was an increase in another key inflation indicator monitored by the Bank – core inflation. This metric tracks the increase in prices, omitting food and energy costs due to their potential for significant volatility.

Underlying inflation climbed to 3.3%, surpassing the 3.1% forecast by economists surveyed by Reuters.

Inflation in the services sector exceeded expectations, registering a 5% increase from the previous month.

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Response from politicians

Darren Jones, the principal aide at the Treasury, acknowledged that the government is aware of the hardships faced by individuals following the announcement of inflation.

He stated, "It's clear that many families throughout the UK continue to face challenges due to the high cost of living. That's the reason last month's budget was centered on strengthening our economic base to bring about reform. However, we acknowledge that additional efforts are necessary. Consequently, the government is concentrating on economic expansion and investments to improve conditions in every region of the nation."

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However, Shadow Chancellor Mel Stride commented, "Under Labour, we see higher inflation and reduced growth."

"Today's announcement raises concerns as it reveals that inflation is surpassing anticipated levels, and according to official projections, there is no expected improvement in these figures."

"Labour's financial plan is set to increase inflation and boost mortgage rates."

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Instagram introduces a new 'reset' feature amid stricter government regulations on online safety

As the government details its online safety priorities, Instagram has announced a new 'reset' feature that is set to launch worldwide soon.

By Mickey Carroll, a journalist specializing in science and technology

Wednesday, November 20, 2024, 10:

Instagram is introducing a new tool that allows users to refresh their algorithm settings, in response to increased government oversight of digital security.

The latest reset function allows users to refresh their suggested content in Explore, Reels, and their feed, which could decrease their exposure to potentially damaging content.

This initiative is a component of Meta's broader effort to enhance app safety for adolescents, following their September announcement about increased privacy for Teen accounts.

The government recently unveiled its online safety agenda, introducing a new feature set to launch worldwide.

Peter Kyle, the Labour Party's technology secretary, emphasized that Ofcom should mandate that tech companies incorporate "safety by design" principles right from the start.

This would allow for the prevention of further damage before it happens.

He also advocated for greater openness from major technology companies about the negative impacts occurring on their platforms.

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"By integrating safety measures into social media platforms from the beginning and enhancing the transparency of these platforms, we can track advancements, gather data, innovate, and intervene where existing legislation falls short," Mr. Kyle stated.

The news was met with approval by organizations dedicated to safeguarding children, though there were warnings that additional action was necessary from the government.

Stay connected with our channel for all the latest updates.

Ian Russell, the head of the Molly Rose Foundation's board of trustees, commented: "This declaration sets a crucial redirection that is essential for enhancing online safety and ensuring the new regulations meet their expected goals.

"Although this sets a significant precedent for Ofcom to act more decisively, it's also evident that there's a pressing need for a new Online Safety Act to address existing structural shortcomings and emphasize the importance of reducing harm."

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In a recent statement, the NSPCC has called on social media companies to adopt a more open and proactive approach in ensuring the safety of children online.

"Authorities need to target the protected spaces that perpetrators exploit, addressing the abuse occurring within private messages," stated Maria Neophytou, the director of strategy and knowledge at the NSPCC.

It is appropriate that the government prioritizes advancing innovation and new technologies aimed at detecting and interrupting abusive behavior to prevent harm before it occurs.

"Legislative guidelines could transform the digital landscape for young internet users."

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Shadow Home Secretary Chris Philp calls for immediate revisions to guidelines on non-crime hate incidents, emphasizing the importance of police using discretion and avoiding unnecessary investigations into matters that pose no criminal risk.

Political correspondent @alixculbertson

Wednesday, November 20, 2024, 11:

The shadow home secretary has called for immediate revisions to the guidelines on non-crime hate incidents, emphasizing that officers should not act as "the thought police."

At a significant law enforcement gathering, Chris Philp emphasized that the police must utilize practical judgment and avoid expending time and resources on incidents unless there is an immediate threat of criminal activity.

He stated that the focus should be on "probing and thwarting criminal activities."

Latest in Politics: Minister Claims Inflation Increase is 'Positive'

When the code of practice for non-crime hate incidents was implemented in 2023, Mr. Philp held the position of policing minister.

He urged the government to promptly revise and refresh the guidelines, emphasizing the necessity for legislative action if required.

Addressing the National Police Chiefs' Council conference, Mr. Philp noted, "Offensive speech does not equate to illegal speech."

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Incidents of antisemitism tripled in the UK following Hamas' assault on Israel, according to a Jewish organization.

Cardiff: Police Seek Information After Drag Queen Suffers Broken Jaw

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"The police do not serve to regulate thoughts. They are not enforcers of thought.

Investigations into non-criminal acts of hate must not infringe on the right to free

"According to a report from The Times last week, they should not target nine-year-old kids engaged in minor schoolyard disputes, or reporters like Julie Bindel who cover transgender topics."

Last week, The Times covered a story where police documented a case involving a nine-year-old girl who referred to her classmate as a "retard", and an instance where two high school girls told another student she smelled "like fish".

Last week, feminist author Julie Bindel revealed that police came to her home following a report about one of her tweets by a transgender man from the Netherlands.

She stated that the event occurred in 2019 and the officers "departed appearing somewhat perplexed," with the investigation being discontinued the following day.

Explore further: Starmer insists Labour is 'absolutely not' involved in a class war, while the Home Secretary announces compensation for police departments affected by tax increase.

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The handling of non-criminal hate incidents by the police has recently drawn significant media attention. This comes following reports that Telegraph columnist Allison Pearson was approached by law enforcement to discuss a tweet she posted a year ago.

Essex Police subsequently stated that the interview pertained to a possible accusation of inciting racial hatred on the internet.

Home Secretary Yvette Cooper emphasized that officers should adopt a uniform and sensible method when documenting these events.

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Angela Rayner faces backlash for 'fearmongering' claims regarding inheritance tax revisions for agriculturalists

The Deputy Prime Minister encountered opposition from various parties in the House of Commons concerning Labour's proposals, with inquiries directed at Ms. Rayner from members of the Liberal Democrats, Conservatives, and Reform parties.

Journalist specializing

Wednesday, November 20, 2024, 1:

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Angela Rayner has condemned what she describes as "scaremongering" regarding Labour's proposed changes to inheritance tax on farms.

In a challenging session of the House of Commons, the deputy prime minister was forced to justify the government's adjustments to the tax levy while filling in for Sir Keir Starmer, as the prime minister attended a G20 summit.

The gathering occurred just one day following a massive protest in Westminster, where over 10,000 farmers voiced their discontent with the decisions announced in the previous month's budget.

Latest in Politics: Rayner Encounters Unfriendly Audience

Starting April 6, 2026, the government plans to decrease the inheritance tax exemptions currently available to agricultural properties. Only the initial £1 million of an estate will qualify for the complete 100% tax relief. For values exceeding this threshold, property owners will incur an inheritance tax at a lower rate of 20%, as opposed to the usual 40%.

Under the new proposals, farmers stand to gain from the tax reductions. According to Labour, an average couple transferring their estate to offspring could pass on up to £3 million without incurring taxes, and any amount above this would be taxed at 20%. Additionally, they would have a decade to settle any tax due without having to pay interest.

Criticism of the decision has come from numerous individuals within the agricultural sector, and Ms. Rayner has faced inquiries from various political parties.

Daisy Cooper, the deputy leader of the Liberal Democrats and representative for St Albans in Hertfordshire, expressed that farmers feel "betrayed" by the Conservative government and "deceived" by Labour.

Ms. Rayner expressed regret upon learning that farmers were upset, attributing their distress to what she described as unfounded fears circulated about the actions of the Labour Party.

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Alex Burghart, the deputy for the Duchy of Lancaster, took the place of Kemi Badenoch during Prime Minister's Questions, following the customary practice for the leader of the opposition to step back when the prime minister is absent.

He inquired with Ms. Rayner regarding a "standard, medium-sized, 360-acre" farm in Yorkshire, mentioning that a family had consulted their accountant and discovered they might face a £500,000 inheritance tax bill, which amounts to 12 years of earnings.

The Conservative Member of Parliament noted that the National Farmers' Union is about to release a study indicating that three-quarters of commercial farms will exceed the limit for incurring inheritance tax.

Explore further on agriculture: Massive crowds gather at Downing Street as Jeremy Clarkson urges the government to 'stand down.'

Lively PMQs felt like 'the teacher was out'

Right from the start, this session of Prime Minister's Questions seemed as though "the teacher is out."

The atmosphere was noisy, loud, and tense.

Labour MPs laughed while their counterparts enthusiastically applauded Alex Burghart, the somewhat obscure shadow minister who was filling in for Kemi Badenoch at the time.

Angela Rayner swiftly pointed out that he served as the "minister for growth" under Liz Truss's tumultuous tenure at Downing Street, eliciting cheers from the members of the government.

Burghart replied by mentioning the opinions of "city economists… real economists," a sharp remark aimed at a recent news piece about the chancellor editing her LinkedIn to delete a potentially incorrect claim that she was an economist at Halifax Bank of Scotland prior to her political career.

The opposition Cabinet Office spokesperson focused intensely and vocally on issues of inflation and modifications to the inheritance tax for farmers, despite persistent issues with microphone distortion and volume peaks.

Other Conservative backbenchers and the Liberal Democrat deputy joined in, capitalizing on the agricultural demonstrations that swept through Westminster yesterday.

This session's headline news emerged when Angela Rayner countered detractors by labeling their concerns about the effects of the agricultural reforms as "scaremongering."

The Speaker also issued rebukes, scolding a Labour backbencher and delivering a reprimand to Conservative MP Danny Kruger.

He retorted, addressing the Speaker, "Are you addressing me? I haven't said a word," while motioning towards his colleagues behind him, indicating that they were to blame.

Sir Lindsay Hoyle subsequently expressed regret to Mr. Kruger, mentioning that his associate James Wild admitted to being the mischievous Conservative.

The Speaker advised the two individuals to consider sitting separately in the future.

A discussion that resembled a classroom setting in a meeting where calm and mature behavior was often lacking.

Ms. Rayner asserts her support for the statistics previously presented by the government.

She stated: "Most estate owners will experience no alterations and will incur no tax for properties valued up to £1 million.

"Couples are able to transfer up to £3 million without incurring taxes, and those exceeding these limits will be subject to just 50% of the standard tax rate, with the option to spread their payments over a decade without interest."

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Reform's Lee Anderson voiced his disapproval of the policy, and Conservative Saqib Bhatti questioned Ms. Rayner on why Labour seems to have "launched an attack on British farmers."

Ms. Rayner stated that the government "is not at war with farmers," and then she reiterated her earlier comments regarding thresholds.

She further stated that Labour must generate funds to cover the "£22 billion deficit created by the Conservatives."

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