
Heatwave helps retail sales rebound in June
The ONS said demand jumped for non-alcoholic and alcoholic drinks in the searing temperatures, while motor fuel sales also leapt by the biggest amount for over a year as Britons 'ventured out'.
June saw the first of three heatwaves so far this summer at the start of the month, with temperatures reaching highs above 33C, before rounding off the month with another heatwave for some parts of England, reaching more than 33C again on June 30.
It was the hottest June on record for England and the second warmest for the UK as a whole, according to the Met Office.
But the retail sales rebound was not as pronounced as the 1.1% jump pencilled in by most economists and means that overall, retail sales volumes rose by 0.2% quarter-on quarter in the three months to the end of June.
This is down from 1.3% quarterly growth at the start of the year.
Hannah Finselbach, senior statistician at the ONS, said: 'Following a poor May, it was an improved month for retail sales with growth across all main sectors.
'The warm weather in June helped to brighten sales, with supermarket retailers reporting stronger trading and an increase in drink purchases.
'It was also a good month for fuel sales as consumers ventured out and about in the sunshine.
'Looking at broader trends, retail sales are up slightly across the latest quarter, but are down when compared with pre-pandemic levels.'
Retail sales rose across all main sectors in June 2025.
Retail sales volumes have risen 0.9% in June 2025, following a fall of 2.8% in April 2025 (revised down from a fall of 2.7%).
Read more ➡️ https://t.co/PBhru5wlJY pic.twitter.com/LfMTyvptOp
— Office for National Statistics (ONS) (@ONS) July 25, 2025
The ONS said food stores saw sales rise 0.7% month-on-month in June, which followed a 5.4% fall in May.
'This rise was mainly because of improved sales volumes in supermarkets, with some retailer comments mentioning increased sales of drinks because of the warm weather,' the ONS said.
Online retailers also saw solid trade, with sales up 1.7% last month, which is the highest since February 2022.
This was largely down to sales promotions, as well as the good weather, according to the ONS.
Sales at the petrol pumps also jumped, up by 2.8%, which marked the biggest rise since May 2024.
The ONS said clothing sales were given a boost as shoppers snapped up summer ranges, with sales of clothing and footwear up 1% in June.
Non-food shops, such as department stores, saw sales edge just 0.2% higher as trade was held back by lower demand for household goods and furnishings and as shoppers stayed away in the heat.
Matt Swannell, chief economic adviser to the EY Item Club, said the sales bounce-back 'masks a challenging backdrop' in the UK economy.
He said: 'Looking back over the last 12 months, the retail sector has seen a relatively modest performance, which is expected to continue through the rest of the year and into next.
'There are signs that consumers are becoming slightly more confident, but the retail sector will still have to contend with the effects of slowing wage growth, ongoing fiscal tightening, and some mortgagors still having to refinance onto higher interest rates.'

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


North Wales Live
5 hours ago
- North Wales Live
Major increases in renovation grants for empty houses in Gwynedd
A North Wales council is again expanding a grant scheme designed to bring empty properties back into use. Gwynedd has one of the UK's highest rates of empty properties yet is grappling with a long-term housing crisis. To encourage local people to renovate unoccupied homes, Cyngor Gwynedd is introducing a series of changes to its grants scheme. On August 1, the maximum amount available was increased from £20,000 to £25,000. Only last October the council hiked the maximum grant from £15,000 to £20,000. The increases, it said, were to reflect the rising costs of goods and services in recent years. The income threshold – previously £60,000 per household – has also been adjusted upwards. While it remains £60,000 per individual, couples can now claim the grant if they earn up to a combined £80,000. Cyngor Gwynedd said this recognises general wage increases and will expand availability. In addition, the way of determining which properties are eligible for the grant has been simplified. Rather than the cost of the house, the new scheme will use Council Tax Bands. This means that all homes in bands A to D are now automatically eligible for the grant. In August 2023 the criteria was extended to include empty houses previously used as second homes. These properties will have been sold by owners subject to Gwynedd's Council Tax premium, now standing at 150%. No figures are available for this particular criteria – but the council said that, overall, the grant has so far helped bring 112 houses back into use, helping 215 residents across Gwynedd. Cllr Paul Rowlinson, housing and property cabinet member, said: 'It saddens me to see houses standing empty and being wasted. We are facing a housing crisis locally and nationally. This grant scheme enables local people to give new life to vacant buildings, turning them into quality homes. 'We recognise that the costs of renovating these houses have increased significantly over the last few years. That is why the council has increased the grant to give more effective support to those renovating empty houses. We have also raised the salary threshold to allow more people to benefit from the scheme.' ONS census data from 2021 showed there were 12,110 empty homes in Gwynedd. These were unoccupied dwellings with no usual residents, so include second homes, holiday lets and short-term rentals. It meant 19.2% of the county's properties in the area were classified as empty – up from 14.1% in 2011, when the previous census was undertaken. This was significantly above the all-Wales average where the proportion of unoccupied dwellings climbed 6% during the 10 years to 2021. In terms of truly vacant properties, Cyngor Gwynedd's tax unit records last year indicated there were 1,440 in the county. Get all the latest Gwynedd news by signing up to our newsletter - sent every Tuesday The council's Empty Homes Grants Scheme – launched in 2021 – is open to people who want to renovate houses empty for six months or more, as well as vacant dwellings that were previously second homes. The £4.7m scheme is funded by the Council Tax premium on second homes and empty houses. It's one of 30 projects in the council's £197m Housing Action Plan to provide affordable homes for people in Gwynedd. Other schemes include VAT reductions on empty property renovations. Welsh Government loans are also available. As a result of all these initiatives, 284 empty homes have been brought back into use since 2021. For details of Gwynedd's Empty Homes Grant Scheme and other housing schemes, visit the Cyngor Gwynedd website. To check a property's council tax band, to see if it qualifies for the grant, go to the website's 'Where I live' section, and enter your postcode.


Daily Record
10 hours ago
- Daily Record
Royal Mint says Brits buying gold coins in droves to dodge tax hikes
The Royal Mint saw sales of gold, silver and platinum soar to record levels in the first quarter of the financial year, as Britons rushed to stash their cash in precious metals Gold coin sales have more than doubled as Brits rush to protect their savings from potential tax increases. Data from the Royal Mint shows a dramatic rise in precious metals investment during the first quarter of the financial year, with gold, silver and platinum deals reaching unprecedented levels. Online bullion coin purchases soared by 115% compared to the same period last year, driven by concerns over possible capital gains tax changes. The buying frenzy has been triggered by gold reaching a record £2,500 per ounce in April – creating what the Mint described as "unprecedented engagement" from investors seeking tax-free returns. One buyer allegedly purchased gold coins in October 2024 and sold them in June this year, pocketing a £70,000 profit – completely exempt from Capital Gains Tax thanks to bullion's status as legal tender. Gold is a top choice for those looking to minimise tax bills. Gold can be an appealing investment for UK savers specifically due to its Capital Gains Tax (CGT) treatment - but this only applies to certain types of gold. British gold coins such as Sovereigns and Britannias are exempt from CGT because they are recognised as legal tender in the UK. This means any profit made on their sale is entirely free from Capital Gains Tax, regardless of how much their value has risen. So, if you purchased £10,000 worth of Sovereigns and sold them years later for £80,000, you'd owe no CGT at all - even though your gain is £70,000. This is not the case for gold bars, foreign coins (like Krugerrands or American Eagles), or most forms of silver and platinum. There's no CGT threshold or cap for these exempt coins. Normally, people pay CGT if their total capital gains exceed £3,000 (2025/26 threshold), taxed at 10% or 20%, depending on income. But with Sovereigns and Britannias, there's zero tax, regardless of gain or how wealthy you are. Significantly, there is no need to declare gains to HMRC for exempt coins. Stuart O'Reilly, Market Insights Manager at the Royal Mint, said: "This quarter demonstrated a remarkable evolution in UK precious metals investing." We're seeing strategic behaviour from investors to rebalance portfolios and rotating into silver and platinum. "This quarter demonstrated a remarkable evolution in UK precious metals investing." The fact that silver and platinum activity has surged alongside gold's rally shows UK investors are becoming increasingly aware of the value of other precious metals, with silver and platinum often following gold's lead during major rallies." Overall, investor activity across the Mint's website jumped by 55% compared to the same period last year. Appetite for DigiGold, its VAT-free digital bullion product, soared – with digital silver sales skyrocketing 1,158% and platinum climbing 798% year-on-year. The number of investors selling back to the Mint's vault also reached an all-time high, as customers sought to secure profits. However, gold coin purchases still exceeded sales by six to one – indicating sustained faith in the metal. Silver also experienced a resurgence, rising above £27 an ounce in June – the first time it has hit that level since 2011. Sales of silver coins increased by 51% year-on-year, whilst platinum soared by 188 per cent. The Mint revealed it was compelled to accept enormous quantities of bullion bars – including 400oz gold and 1,000oz silver bars – to satisfy demand and handle record levels of sellbacks. Despite a modest decline in prices since the spring peak, analysts suggest the fundamental factors driving demand remain robust – especially as investors prepare for potential tax increases under the new government.


The Guardian
2 days ago
- The Guardian
Fake savings ads: ‘One of the most sophisticated scams we have seen'
With interest rates falling, you are hunting for the best home for your cash, so when an advert for a generous fixed-rate savings account offered by a leading financial brand pops up, you sit up and take notice. But it is a scam – one where Britons are being tricked into depositing their nest-egg cash, only for the money to be siphoned off by fraudsters who are impersonating a financial company – in this case, the money transfer company Wise. The online ad prompts customers to fill in a form. This results in a call back to discuss investment options. That the interest rate is only slightly better than the market makes the offer appear plausible. The caller guides people to open a real Wise account under the pretence that it is a savings account. To maintain the facade, victims receive correspondence carrying the Wise logo and correct postal address. Martin Richardson at National Fraud Helpline, a law firm that specialises in scam recovery cases, describes it as 'one of the most sophisticated and convincing scams we have seen'. He says: 'Once they have your details, they will instantly recognise your phone number and ask you to pass security questions. The email address seems very believable, but it's the English-speaking scammers that add a high level of plausibility. 'We think that when the scammers help set up the victim's genuine Wise account, they put the two-factor authentication and virtual card details into their own phone.' Having used the victim's details to set up Apple Pay, they then transfer the 'savings' account money into Wise accounts under their control. With the scammers 'spending good money on social media adverts', Richardson says it is highly likely that there are many victims. In this case, the fake ad is offering 5.55% on a one-year easy-access savings account, or 5.85% with no withdrawals in the 12-month period. The advert, and all subsequent communication, use the Wise logo and the correct postal address. However, although Wise customers can put their balance in an interest-earning fund, it does not offer classic savings products such as this. Wise says: 'We're aware of scams that use branding of financial services providers to deceive people into thinking they are holding, or investing, their money. 'Whenever we come across fraudulent attempts to impersonate Wise, including on social media platforms, we take prompt action to get the content removed.' This is authorised push payment (APP) fraud, which involves tricking someone into voluntarily sending money from their bank account. Providing the money was sent to another UK account, victims should, in theory, be able to claim their money back from their bank, or payment service provider, thanks to mandatory rules introduced last year. You should contact Wise either by flagging the transaction or calling up (there are instructions on its website) and file a police report. You can also tell the Financial Conduct Authority. Richardson says his law firm has helped two victims each get more than £20,000 back.