Latest news with #RachelReeves'
Scottish Sun
11 hours ago
- Business
- Scottish Sun
Pubs and restaurants are ‘under threat' after Labour's tax hikes — with a third now running at a loss
Landlords are now warning punters that putting up drink prices is the only way they can survive LAST ORDERS Pubs and restaurants are 'under threat' after Labour's tax hikes — with a third now running at a loss Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) PUBS and restaurants are being driven into the ground by Labour's tax hikes - with a THIRD now operating at a loss. A damning industry survey reveals the number of boozers at risk of closure has increased 11 per cent in the last three months. Sign up for Scottish Sun newsletter Sign up Landlords are now warning punters that putting up drink prices is the only way they can survive. The average price of a pint has already soared to £5.17 in Britain, and The Sun's Save Our Sups campaign is calling for more support for the countries' embattled locals. In a rare joint intervention, four trade bodies have come together today to warn hospitality is 'under threat' due to April's National Insurance rises and Business Rates whack. They are demanding urgent relief for the pub and restaurant sector which they claim was saddled with £3.4billion extra costs. As well as a third of bosses disclosing they are in the red, their survey also revealed six in 10 have been forced to cut staff to save money. Sounding the alarm are UK Hospitality, the British Beer and Pub Association, the British Institute of Innkeeping and Hospitality Ulster. They said: 'Hospitality is vital to the UK economy but is under threat from ongoing costs rises, which the April increases have only exacerbated. 'Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch.' Meanwhile, a separate report showed private sector activity is at its weakest since 2022. The Confederation of British Industry also blamed Rachel Reeves' £25billion NICs hikes for hurting businesses. Locals Heartbroken as Auchenmalg's Only Pub, The Cock Inn, Closes Down
Scottish Sun
a day ago
- Business
- Scottish Sun
Major change coming to Tesco stores as company trials new opening hours after Rachel Reeves' tax raid
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) TESCO is trialling new opening hours in a major change following soaring costs after Rachel Reeves' tax raid. The supermarket is testing out new hours in a bid to cut staffing costs. Sign up for Scottish Sun newsletter Sign up 3 Tesco CEO Ken Murphy previously slammed the changes in the Budget Credit: Reuters 3 It is unclear how many stores will be in the trial Credit: PA Workers were told that a few of the Tesco Express stores which don't rake in as much cash will be the testing grounds. These Tesco stores will shut an hour earlier, at 10pm instead of 11pm. They will also have fewer staff working during these hours, The Telegraph reported. It is understood that the trial is only taking place in a "small number" of stores, but the exact number is unclear. A spokesperson said the shake up is to ensure the shops are being run in the "most efficient way". The move comes after Tesco's chief executive said that the supermarket is facing a wave of soaring costs following the Chancellor's tax raid in April. Tesco said it was facing a rise in staffing costs, in part due to a £235m increase in National Insurance contributions and the rise in minimum wage. The chain previously warned it would be axing £500million of costs to tackle this. Retailers are believed to be facing around £7billion in extra costs following the Budget. A Tesco spokesperson said: "These changes aren't visible to our customers, who will continue to receive the same great service they expect, and there are no changes to the range of products we sell." The basic wage for workers aged over 21 increased from £11.44 to £12.21 — instantly hiking staffing costs. But most firms are more concerned about the dramatic changes to employers' National Insurance Contributions, which will make hiring even tougher. Companies have warned that the changes are to drastically impact part-time workers, soon to become 13 per cent more expensive overnight. The contributions will go up from 13.8 per cent to 15 per cent from April 6, but the main impact comes from lowering the threshold it starts being paid at from £9,000 to £5,000, roping in many more part-time staff. One FTSE chief executive told The Sun that it was 'completely the wrong strategy for the Government to be pursuing if they want to encourage more people back into work with flexible jobs'. Meanwhile, a slew of reports suggest companies are already cutting jobs, freezing hiring and preparing to hike prices, with inflation predicted to hit 3.5 per cent later this year.
Scottish Sun
2 days ago
- Business
- Scottish Sun
Department store chain shutting last shop TODAY after 140 years as it's wiped off high street due to Budget tax hikes
The historic store launched a scathing attack on the Chancellor before shutting up for the last time today SHUTTERS DOWN Department store chain shutting last shop TODAY after 140 years as it's wiped off high street due to Budget tax hikes AN ICONIC department store has been forced to shut its last branch after 140 years of trading due to Rachel Reeves' Budget hikes. Beales has confirmed its last ever shop, located in the Dolphin Centre shopping mall in Poole, Dorset, will be closing for good today. 2 The Poole branch was the final department store to close Credit: Alamy 2 Beales hit back at the Chancellor's economic policies by announcing a "Rachel Reeves' Closing Down Sale" Credit: FACEBOOK - BEALES POOLE It marks the end of an era for the one of the oldest faces of the British high street, which first opened in Bournemouth in 1881. Struggles began for the retailer when it entered administration in January 2020, forcing the closure of 22 of its 23 shops. The shop in Poole reopened the same year after relocating to the shopping centre and remained the only Beales store standing. Despite weathering the financial storm for the past five years, Reeves' economic policies proved to be the final nail in the coffin for the iconic departmental store. Beales hit back at the Chancellor's economic policies by announcing a "Rachel Reeves' Closing Down Sale". On social media, the popular chain joked that it had fallen victim to the Budget "black hole". The closure will also affect an NHS clinic, which is located on the top floor of the Poole store. It was set up in 2021 to reduce waiting times, but will now move to St Mary's hospital on June 5. The death of the high street is the death of communities Beales chief executive Tony Brown explained that business had become "unviable" following the Chancellor's Budget last October. He said: "This, coupled with the risks and uncertainty of further tax increases in the coming years, have left us no other option. "We have been working with the Dolphin Centre, who have been supportive, along with our investors to ensure an orderly exit. "Our team has been informed, as have our suppliers. We will ensure the exit is managed and no one will be left with a financial loss." Below the advert for the "Rachel Reeves Closing Down Sale", which included discounts of up to 80%, the high street favourite launched a scathing attack on the Chancellor. A caption on the store's Facebook page read: "Our closing sale is almost over (cheers for the help, Chancellor) - and we've just dropped hundreds of lines to 80% OFF or more! "Grab a bargain before we vanish into the budget black hole. #FinalSale #80Off #LastChance #WhenItsGoneItsGone." UK Retail Shake-Up: Superdry and More It has struggled to cope with rises in national insurance contributions and higher minimum wage which came into effect last month. Like many other businesses, Beales faced higher employer NI contributions, which have risen from 13.8% to 15%. Additionally, the threshold at which these contributions must be paid has been lowered from £9,100 to £5,000. It came as the national minimum wage was notably increased, rising to £12.21 per hour. For workers aged 18-20, the minimum wage increased to £10 per hour from £8.60. These changes to the tax system were confirmed by the Chancellor in the Autumn Budget last October and came into effect on 1 April. The British Independent Retailers Association (Bira) warned this closure could be the first of many as retailers continue to struggle with mounting costs. Commercial director Jeff Moody said he was "deeply saddened" to hear about Beales shutting up shop. Why are retailers closing stores? RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis. High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going. However, additional costs have added further pain to an already struggling sector. The British Retail Consortium has predicted that the Treasury's hike to employer NICs from April will cost the retail sector £2.3billion. At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40. The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." It comes after almost 170,000 retail workers lost their jobs in 2024. End-of-year figures compiled by the Centre for Retail Research showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker. It said its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar year to date. This was up 49,990 – an increase of 41.9% – compared with 2023. It is the highest annual reading since more than 200,000 jobs were lost in 2020 in the aftermath of the COVID-19 pandemic, which forced retailers to shut their stores during lockdowns. The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker. Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from administrations. Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes. Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020." He added: 'This is not just the loss of another shop. "It represents the end of a retail institution that has served communities for nearly one-and-a-half centuries. 'This closure starkly illustrates the devastating impact that recent tax increases are having on our retail sector.' At its peak, Beales operated 41 stores across the country, selling a range of furniture, cosmetics, fashion products and toys. The high street chain shut its store in Southport last September just three years after the site reopened. FAMOUS NAMES GONE FROM THE HIGH STREET Beales is not the only brand that's been wiped from the high street in recent years. Ted Baker, fell into administration last March after years of turmoil. At the time it had 46 shops in the UK employing around 975 people. The last stores shut in August after failing to secure a full rescue. It was relaunched as an online brand in the UK and Europe after a partnership with United Legwear & Apparel Co. Flooring retailer Carpetright filed for administration in July after efforts to turnaround the struggling firm were derailed by a cyber attack. The business had 1,800 staff and 273 shops across the country before going bust. Around 54 stores were snapped up by its arch rival Tapi Carpets & Floors, which also bought its brand name and continues to run the brand online. LloydsPharmacy, once the UK's second biggest community pharmacy chain, went into liquidation in late January 2024 with debts of £293million. The previous year it had closed all of its pharmacies inside Sainsbury's and divided its 1,000 pharmacy estate into packages of hundreds of stores that it then sold to rivals in smaller deals. There are no more LloydsPharmacy-branded sites on the high street, but it continues to operate online.
The Sun
2 days ago
- Business
- The Sun
The Unstable State of the World Debt: Octa Broker Issues a Warning
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 30 May 2025 - Traders and investors alike are unnerved by the recent turbulence in the bond markets. After Moody's—a major rating agency—downgraded U.S. government debt on 16 May, and Japanese long-term bond yields soared to multi-decade highs, some market participants started to fear that the world may be on the verge of a major debt crisis. Meanwhile, the yield on 20-year UK government bonds neared 5.5%, a level not seen in 27 years, as investors grew more worried about the extent of Chancellor Rachel Reeves' borrowing plans. Octa Brokers looks at the potential implications of these developments for global markets. Ticking Fiscal Bomb The U.S. mounting national debt has long been the subject of intense debate and concern among economists, policymakers, and the public. Apocalyptic predictions of a U.S. default and dollar collapse are nothing new. They first appeared decades ago and have been surfacing here and there regularly, attracting plenty of followers. However, these predictions have never materialised, while the doomsayers have been dismissed as amateur conspiracy theorists at best and irresponsible alarmists at worst. Still, while we are not inclined to take a grand stance on this issue, we cannot afford to ignore the latest market developments regarding the U.S. debt. Often called a 'ticking fiscal bomb', it has recently started raising fears about the nation's long-term economic stability and potential impact on global markets. 'On current trends, U.S. national debt is projected to reach $37 trillion in two weeks and may reach $40 trillion by the end of the year. This trend cannot continue forever. The Fed's [Federal Reserve] printing press may have no limit, but market patience does have its limit', says Kar Yong Ang, a financial market analyst at Octa broker. Indeed, the market's perception of risk regarding U.S. government debt has clearly risen. This is evident in the noticeable increase in the cost of insuring exposure to U.S. government debt over the past month. The spreads on U.S. credit default swaps (CDS)—a key measure of default risk—have reached their widest levels since the 2023 debt ceiling crisis in recent weeks (see chart below). Market stress intensified even more following Moody's downgrade and the passage of the U.S. President Donald Trump's 'One Big Beautiful Bill Act' in the House of Representatives. The bill features $3.8 trillion in tax cuts and is widely expected to worsen the federal budget deficit outlook. As a result, investors started to demand higher returns for holding long-term U.S. government bonds, pushing the yields on 20-year notes above the important 5% level on 21 May. 5-Year Credit Default Swaps Kar Yong Ang comments: 'Policy uncertainty is all over the place. Tariffs, tax bill, debt ceiling. No wonder investors charge a premium for holding the debt of a country, which is not in a 'triple-A club' anymore. Investors want higher yield in order to provide long-term lending in the current uncertain climate'. Indeed, the U.S. government actually hit its legal borrowing limit back in January and has been using special procedures to avoid exceeding it and potentially defaulting. However, these measures are expected to run out around late August or early September, at which point the government might be unable to meet all its financial commitments. Yields of government bonds with the longest maturities have been rising sharply not just in the United States but also in Japan and the United Kingdom (UK) (see chart below). On 20 May, Japan's 20-year government bond (JGB) auction had its worst results since 2012. The demand was weak, with the bid-to-cover ratio dropping to 2.50, while the lowest accepted price was just ¥98.15, some 2% below the expected price. Yields on 20-Year Government Bonds
The Sun
2 days ago
- Business
- The Sun
The World Debt Situation Has Become More Unstable, Octa Broker warns
KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 30 May 2025 - Traders and investors alike are unnerved by the recent turbulence in the bond markets. After Moody's—a major rating agency—downgraded U.S. government debt on 16 May, and Japanese long-term bond yields soared to multi-decade highs, some market participants started to fear that the world may be on the verge of a major debt crisis. Meanwhile, the yield on 20-year UK government bonds neared 5.5%, a level not seen in 27 years, as investors grew more worried about the extent of Chancellor Rachel Reeves' borrowing plans. Octa Brokers looks at the potential implications of these developments for global markets. Ticking Fiscal Bomb The U.S. mounting national debt has long been the subject of intense debate and concern among economists, policymakers, and the public. Apocalyptic predictions of a U.S. default and dollar collapse are nothing new. They first appeared decades ago and have been surfacing here and there regularly, attracting plenty of followers. However, these predictions have never materialised, while the doomsayers have been dismissed as amateur conspiracy theorists at best and irresponsible alarmists at worst. Still, while we are not inclined to take a grand stance on this issue, we cannot afford to ignore the latest market developments regarding the U.S. debt. Often called a 'ticking fiscal bomb', it has recently started raising fears about the nation's long-term economic stability and potential impact on global markets. 'On current trends, U.S. national debt is projected to reach $37 trillion in two weeks and may reach $40 trillion by the end of the year. This trend cannot continue forever. The Fed's [Federal Reserve] printing press may have no limit, but market patience does have its limit', says Kar Yong Ang, a financial market analyst at Octa broker. Indeed, the market's perception of risk regarding U.S. government debt has clearly risen. This is evident in the noticeable increase in the cost of insuring exposure to U.S. government debt over the past month. The spreads on U.S. credit default swaps (CDS)—a key measure of default risk—have reached their widest levels since the 2023 debt ceiling crisis in recent weeks (see chart below). Market stress intensified even more following Moody's downgrade and the passage of the U.S. President Donald Trump's 'One Big Beautiful Bill Act' in the House of Representatives. The bill features $3.8 trillion in tax cuts and is widely expected to worsen the federal budget deficit outlook. As a result, investors started to demand higher returns for holding long-term U.S. government bonds, pushing the yields on 20-year notes above the important 5% level on 21 May. 5-Year Credit Default Swaps Kar Yong Ang comments: ' Policy uncertainty is all over the place. Tariffs, tax bill, debt ceiling. No wonder investors charge a premium for holding the debt of a country, which is not in a 'triple-A club' anymore. Investors want higher yield in order to provide long-term lending in the current uncertain climate'. Indeed, the U.S. government actually hit its legal borrowing limit back in January and has been using special procedures to avoid exceeding it and potentially defaulting. However, these measures are expected to run out around late August or early September, at which point the government might be unable to meet all its financial commitments. Yields of government bonds with the longest maturities have been rising sharply not just in the United States but also in Japan and the United Kingdom (UK) (see chart below). On 20 May, Japan's 20-year government bond (JGB) auction had its worst results since 2012. The demand was weak, with the bid-to-cover ratio dropping to 2.50, while the lowest accepted price was just ¥98.15, some 2% below the expected price. Yields on 20-Year Government Bonds Source: LSEG 'Japan's auction signals poor liquidity and weak interest in new long-term securities as investors are concerned about excessive profligacy. It seems to me that the BoJ wants to stop buying bonds at the worst possible moment. Who is going to replace it? ', rhetorically asks Kar Yong Ang, referring to BoJ plans to taper its massive bond purchase programme. Indeed, although yields on long-term JGBs have been rising since the COVID pandemic, the trend accelerated after the Bank of Japan (BoJ) moved toward monetary policy normalisation amid rising wage growth and inflation. Policy normalisation implied higher short-term rates and fewer bond purchases. Thus far, BoJ has ended its yield curve control (YCC), raised its benchmark interest rate from -0.1% to 0.5% and even embarked on quantitative tightening (QT). These factors contributed to the consistent increase in Japanese government bond yields. Today, however, the situation is complicated by additional fiscal stimulus, which could result in more government borrowing just as the BoJ prepares to slowly exit the debt markets. The Cabinet already approved a massive ¥21.9 trillion ($142 billion) economic stimulus package back in November 2024. Most recently, it approved an emergency plan to allocate ¥388 billion ($2.7 billion) from reserve funds to assist businesses and households affected by U.S. tariffs. 'Investors are sending a very clear message: if we are the only ones left to finance these spending plans, then we demand higher returns', concludes Kar Yong Ang. The recent movements in the U.S., Japanese, and UK government bond markets paint a concerning picture of increasing investor unease regarding sovereign debt. From the rising cost of insuring U.S. debt and the poor reception of Japan's long-term bond auction to the near 27-year high in the UK gilt yields, a common thread of heightened risk perception is evident. As Kar Yong Ang of Octa Broker points out, factors like policy uncertainty, fiscal profligacy, and the prospect of central banks reducing their bond purchases are prompting investors to demand greater compensation for lending to governments. 'The problem is not just that governments have an enormous mountain of debt. The real problem is that the market is intricately interconnected. A small trouble in one place can morph into a major crisis elsewhere. What if higher JGB yields lure Japanese capital back home? If they decide to increase their JGB holdings, they may have to sell the U.S. Treasuries and that could be catastrophic given that Japan is a major holder of U.S. debt', says Kar Yong Ang. Investors should watch the upcoming BoJ meeting scheduled for 17 June. The BoJ will issue its regular policy rate decision and will likely announce its balance sheet reduction plan. According to MacroMicro, markets currently expect a gradual pace—around 6–7% reduction over two years. However, if the BoJ opts to speed up the process, it could put pressure on global markets ___ Disclaimer: This content is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to engage in any investment activity. It does not take into account your investment objectives, financial situation, or individual needs. Any action you take based on this content is at your sole discretion and risk. Octa and its affiliates accept no liability for any losses or consequences resulting from reliance on this material. Trading involves risks and may not be suitable for all investors. Use your expertise wisely and evaluate all associated risks before making an investment decision. Past performance is not a reliable indicator of future results. Availability of products and services may vary by jurisdiction. Please ensure compliance with your local laws before accessing them. Hashtag: #Octa The issuer is solely responsible for the content of this announcement. Octa Octa is an international CFD broker that has been providing online trading services worldwide since 2011. It offers commission-free access to financial markets and various services used by clients from 180 countries who have opened more than 52 million trading accounts. To help its clients reach their investment goals, Octa offers free educational webinars, articles, and analytical tools. The company is involved in a comprehensive network of charitable and humanitarian initiatives, including improving educational infrastructure and funding short-notice relief projects to support local communities. In Southeast Asia, Octa received the 'Best Trading Platform Malaysia 2024' and the 'Most Reliable Broker Asia 2023' awards from Brands and Business Magazine and International Global Forex Awards, respectively.
