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ITV News
4 days ago
- Business
- ITV News
'Disappointing first year': The verdict of businesses who backed Labour amid sluggish growth
By ITV News Business and Economics Editor Joel Hills and Senior Producer Jack Abbey Labour has promised to revive the economy and raise the living standards of working people. Since the election last July, there are signs of a slightly quicker pulse. The UK economy grew by 0.3% between April and June, stronger than most forecasters expected, and better than Germany, Italy, and Canada managed over the same period. But annual growth of 1.2% is nothing to celebrate. It won't leave many households feeling better off and 'won't be enough to prevent tax rises in the autumn", according to Capital Economics. Economic growth remains subdued. Inflation is edging up again and so is unemployment. If you voted Labour last July, you might have hoped for better. She pitched Labour as the 'natural party of business' and promised to run 'the most pro-growth, pro-business Treasury our country has ever seen.' That same day, The Times published a letter from 120 business leaders endorsing Labour - executives past and present from JP Morgan, Heathrow, Aston Martin, JD Sports, Iceland, and WPP. Sir Jimmy Wales, the founder of Wikipedia, and chef Tom Kerridge also signed. One year on, we asked those business leaders what they think now. Forty-one agreed to speak to us, most on condition of anonymity. Many praised Labour's decisions to revive infrastructure spending, reform planning to incentivise construction, negotiate trade deals with the US and India, and improve relations with the EU. There was also broad recognition of the scale of the challenge. 'Rachel Reeves has my sympathy,' one executive told us. 'She is managing a terrible fiscal inheritance.' 'It takes a long time to turn a tanker around,' said another. 'It's the work of two parliaments. Judge them by the growth figures in 2028, not now.' Some offered strong praise; one called the first year 'excellent.' But that was the minority view. 'Disappointing' was the most common verdict. Others used words like 'wasted,' 'frustrating,' 'naive,' and 'incompetent.' Eleven of the business leaders, roughly one in four, said they would not sign that letter again today. And for many who would, their faith has been shaken. Rachel Carrell, Chief Executive of Koru Kids, says the Government has been playing it too safe. Rachel Carrell, CEO of childcare company Koru Kids, says she wouldn't endorse Labour again: 'I had real hopes going into the election - but after a year, I've been left disappointed. "What's been most striking isn't just the lack of boldness, but the lack of concrete plans. Labour had years in opposition to prepare, and yet a year into government, we're still seeing hesitation and half-measures on the issues that matter most to working families and employers alike.' 'There have been so many political missteps,' another executive told us. 'Cutting Winter Fuel Payments last July was an unfortunate way to start.' A key frustration has been the April rises in Employer National Insurance Contributions and the National Minimum Wage. 'It was completely unexpected. Recruitment has just stopped, everything froze, confidence dropped,' one executive said. Another told us: 'It was the wrong tax to increase; it has hurt retail and hospitality in particular.' Labour's pledge not to raise taxes for working people was also widely criticised. 'They painted themselves into a corner on tax before an election, the polls showed they were always going to win - it was foolish,' one respondent said. Andy Higginson, chair of JD Sports and the British Retail Consortium, doesn't regret signing the letter but wants more in the autumn Budget: 'Labour has a huge majority. The party needs to be bolder — break away from Treasury orthodoxy and recognise the world has changed. "I want to see radical change in the Budget: tackle waste in public services, slash energy costs so the economy is more competitive. These are all levers within the government's control.' The pressure on Rachel Reeves is intense. That may help explain why she skipped the traditional round of broadcast interviews on Thursday. Instead, she issued a statement: 'Today's economic figures are positive, with a strong start to the year and continued growth in the second quarter. But there is more to do to deliver an economy that works for working people.' Many of her decisions over the past year have been praised as sensible steps to reinvigorate growth, but none are expected to make a material difference before the next election. Her fiscal rules were applauded as prudent but left only the smallest buffer against bad news. And there has been bad news. President Trump's tariff onslaught has disrupted global trade and continues to cloud the growth outlook. The government's borrowing costs have risen in the last year despite five interest rate cuts. There are reasons to be optimistic about the long term, but the months ahead will be tougher for households. The chancellor is expected to raise taxes again in the autumn, just as government policies are putting upward pressure on prices, especially food. For two years, UK wages have been rising faster than prices. The Bank of England now thinks that run is over. Last July, Labour won a mandate for change. But many of the businesses that backed the party feel they haven't seen the change they hoped for and that the government hasn't used its majority boldly enough. Low growth is a serious problem. It's a problem Reeves inherited ,but one she will at some point need to either solve or risk being blamed for.
Scottish Sun
31-05-2025
- Business
- Scottish Sun
The average price of a pint rises AGAIN across UK – how much more are Scots paying?
Scots will have to cough up more than a hangover for a trip to the pub as prices increase again. OH BEER The average price of a pint rises AGAIN across UK – how much more are Scots paying? A TRIP to the pub will cost Scots more than a just hangover as punters are being forced to cough up more than ever. The average price of a pint has now soared to £5.17 across the UK, leaving a bitter taste in punters' mouths. 1 Pint of beer next to a map of the UK highlighting a region. In February we reported how Scotland saw the biggest percentage price increase across the whole of Britain. Now it has gone up again with the cost increasing by 34p compared to figures reported by the Office for National Statistics at the start of the year. Beer prices have risen sharply as manufacturers and pubs grapple with higher alcohol taxes, soaring utility bills and increased staffing costs. Trade magazine The Morning Advertiser regularly examines the average cost of a pint across London, the Midlands, the North East, the North West, the South East, the South West, Scotland, and Wales. According to its latest research, London tops the list for the priciest pints, with pub owners charging an average of £6.10. On the more affordable end of the scale, Tennent's and Carlsberg emerged as the cheapest options, with drinkers paying an average of £4.23 per pint across England, Wales, and Scotland. UK pub numbers have now plunged by more than 2,000 since the start of 2020. A number of breweries are facing trouble too, including the Fourpure brewing company which appointed administrators in October and the Magic Rock Brewery which said it would bring in administrators at the start of the year. Meanwhile, Carlsberg Marston's Brewing Company (CMBC) said in November it would stop making eight classic British cask beers following a review. A number of pubs also warned they would have to hike prices for customers this year after the Government's Autumn Budget. Stunning beer prices at Miami GP revealed as F1 fans face staggering cost for drinks, steak sandwiches and pizza Employer National Insurance Contributions (NICs) and the national minimum wage both rose in April. But businesses cautioned this would force them into upping the price of drinks as they try and absorb the extra costs.
Yahoo
27-05-2025
- Business
- Yahoo
UK retail growth hits eight-month high in April
Retail sales in the UK experienced a notable increase in April 2025, with volumes rising by 1.2% compared to the previous month, according to data from the Office for National Statistics (ONS). This marks the fourth consecutive month of growth and the strongest quarterly performance since July 2021. The surge in retail sales was largely attributed to the sunniest April on record, which coincided with the Easter holiday. Food store sales volumes increased by 3.9%, rebounding from declines in February and March. Retailers noted heightened demand for items associated with outdoor gatherings, such as barbecues and picnics. Kris Hamer, Director of Insight at the British Retail Consortium, commented on the figures, stating that the combination of Easter and unseasonably warm weather contributed to the highest retail sales growth since August 2023. He highlighted that consumer spending was up across various categories, with food and drink performing particularly well as people hosted gatherings and outdoor events. The warmer weather also influenced consumer behaviour in the apparel sector. Sales of clothing and footwear saw an uptick as shoppers updated their wardrobes in response to the early onset of summer-like conditions. This seasonal shift prompted increased spending on summer attire, contributing to the overall rise in retail sales. Despite the positive trends in certain sectors, the ONS reported a 0.7% decline in non-food store sales volumes for April, indicating a mixed performance across different retail categories. While the retail sector experienced growth in April, industry representatives have expressed concerns about increasing operational costs. The British Retail Consortium highlighted that April brought an additional £5 billion in costs to retailers due to increases in Employer National Insurance Contributions and the National Living Wage. These costs are expected to rise to £7 billion with the introduction of a new packaging tax later this year. Furthermore, proposed changes to business rates could result in higher expenses for approximately 4,000 shops, potentially impacting local employment and business sustainability. The consortium has urged the government to ensure that no shop faces increased costs under the forthcoming reforms. As the retail sector navigates these financial pressures, the recent boost in sales provides a temporary uplift. However, the long-term outlook remains cautious amid rising costs and economic uncertainties. "UK retail growth hits eight-month high in April" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Fashion United
13-05-2025
- Business
- Fashion United
UK: Retail sales welcome YoY increase in April due to warm weather
Retail sales in the UK rose 7 percent year-on-year in April, according to new figures by the British Retail Consortium (BRC), as a later Easter holiday helped boost activity. This was a significant uptick on the decline of 4 percent reported in April 2024, and also above the three-month average growth of 2.9 percent, data shows. With March and April combined and compared with the same two months in 2024, mitigating the timing of Easter, retail sales still showed a YoY increase of 4.3 percent. Over April, food sales saw the sharpest increase at 8.2 percent, while non-food sales also remained strong, rising 6.1 percent, against a decline of 6 percent in the same month last year. Online non-food sales drove the way, increasing 7 percent. In-store sales followed at a rise of 5.6 percent. The online penetration rate, reflecting the proportion of non-food items bought online, decreased, however, to 36.4 percent. Akin to other categories, Helen Dickinson, the BRC's chief executive, noted that clothing sales, which had experienced more 'sluggish' growth in recent months, 'also improved as consumers refreshed their wardrobes for the new season'. While Easter's later date was a benefactor of the positive results, Dickinson also noted the impact of the warmer weather, which she said had encouraged increased activity. Looking ahead, Dickinson continued to express caution over increases to business rates like Employer National Insurance Contributions and the National Living Wage, implemented in April. 'If the Government wants to secure the future of our high streets, then it must ensure that no shop pays more as a result of the upcoming business rates reforms, or it will be our local communities that pay the price,' Dickinson concluded.
Scottish Sun
29-04-2025
- Business
- Scottish Sun
Popular UK pub chain with Glasgow branches to hike beer prices
Find out how much your favourite drinks will cost Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A POPULAR UK pub chain with several Glasgow branches is set to hike beer prices in a fresh blow for punters. Stonegate Group, which owns boozers such as Slug & Lettuce, Walkabout and Popworld, says the change will come into force from Friday, May 2. Sign up for Scottish Sun newsletter Sign up 1 Stonegate Group is set to hike beer prices Credit: Roddy Scott Their portfolio also includes The Merchant, Home, The Ark and The Howgait in Glasgow, among others. Bosses say the move follows "significant cost pressures and challenges" affecting the hospitality industry. The sector was hammered by closures during the Covid-19 pandemic and was immediately dealt another blow by supply issues and the cost of living crisis. A spokesperson for Stonegate said: "Our annual price review this year reflects the significant cost pressures and challenges faced by our sector over the last 12 months. "We are absolutely committed to supporting our publicans, enabling them to continue to play the vital role in the communities they serve." Stonegate is hiking beer and other booze selling prices by 4% for its leased and tenanted pubs. Boozers will likely then have to push this cost onto drinkers, which could add an extra 15 to 20p onto drinks. For example, a pint like Hofbräu Original Lager that typically costs £5.50, could now cost £5.75. Similarly, the Thistly Cross Traditional Sparkling Apple Cider that would usually sell at £5, could increase to £5.20. A number of pubs are also warning they will have to hike prices for customers this year after the Government's Autumn Budget. First look inside new Glasgow pub with a live train timetable board and hi tech cocktail machine Employer National Insurance Contributions (NICs) and the national minimum wage are both rising. But businesses have cautioned this will force them into upping the price of drinks as they try and absorb the extra costs.
