Latest news with #UKHospitality
Yahoo
20 hours ago
- Business
- Yahoo
Minister wants to get more tourists to Cornwall
The tourism minister says he wants to get more British people going on holiday in places like Cornwall rather than abroad. Sir Chris Bryant visited Falmouth and Mylor to meet people who work in tourism locally and discuss the state of the industry. Hospitality leaders said the 2024 budget had been a "hammer blow" for the industry with changes to employer national insurance rates and many businesses were struggling even if their sites were full. The minister said he knew things were still "really tough" for people working in the sector and more needed to be done to highlight what areas like Cornwall could offer domestic tourists. The Labour MP said Covid had impacted the industry greatly but he remained confident visitor numbers could return to pre-pandemic levels. "I want many more British people to say 'what's the point of Spain - we've got this'," he said. More news stories for Cornwall Listen to the latest news for Cornwall Allen Simpson, chief executive of UK Hospitality, said the reality for businesses in the sector was "really stark" and had not been helped by the Budget. He said: "A third of businesses in the sector are losing money even if it looks like they're doing very well on the door." Bryant said the total number of jobs in the industry was rising and the government wanted to help traders "build resilience". Speaking in Mylor on Wednesday, he added: "We need to get more British people coming to resorts like this and experiencing the variety of tourism that we have in the UK. "I [also] want to get more international visitors coming into the UK and we've set a target of getting 50 million by 2030." Follow BBC Cornwall on X, Facebook and Instagram. Send your story ideas to spotlight@ More on this story Calls for views on possible Cornwall 'tourism tax' Gearing up for bumper year as tourism hopes rise Struggling tourism industry 'keen to bounce back' Related internet links Department for Digital, Culture, Media and Sport UK Hospitality
BBC News
20 hours ago
- Business
- BBC News
Minister wants to get more tourists to Cornwall
The tourism minister says he wants to get more British people going on holiday in places like Cornwall rather than Chris Bryant visited Falmouth and Mylor to meet people who work in tourism locally and discuss the state of the leaders said the 2024 budget had been a "hammer blow" for the industry with changes to employer national insurance rates and many businesses were struggling even if their sites were minister said he knew things were still "really tough" for people working in the sector and more needed to be done to highlight what areas like Cornwall could offer domestic tourists. The Labour MP said Covid had impacted the industry greatly but he remained confident visitor numbers could return to pre-pandemic levels."I want many more British people to say 'what's the point of Spain - we've got this'," he said. Allen Simpson, chief executive of UK Hospitality, said the reality for businesses in the sector was "really stark" and had not been helped by the said: "A third of businesses in the sector are losing money even if it looks like they're doing very well on the door."Bryant said the total number of jobs in the industry was rising and the government wanted to help traders "build resilience".Speaking in Mylor on Wednesday, he added: "We need to get more British people coming to resorts like this and experiencing the variety of tourism that we have in the UK."I [also] want to get more international visitors coming into the UK and we've set a target of getting 50 million by 2030."
Telegraph
2 days ago
- Business
- Telegraph
Tourists are already turning their backs on Britain. The last thing we need is another tax
If Angela Rayner really is urging Rachel Reeves to allow the roll out of county-wide tourist taxes, she will burn any remaining bridges to peace with Britain's hospitality sector. Consider the firefights hotels, pubs, restaurants and visitor attractions are already confronting. The pandemic gutted the industry. At one stage 1,650,000 employees in the sector were on furlough as businesses ceased trading. Staff left the sector and the country; Brexit had already reduced the availability of skilled workers. Businesses closed – and keep on closing. In 2024 alone, 4,078 hospitality venues shut across the UK – averaging 11 closures a day, according to the latest Hospitality Market Monitor report. The pub sector has been particularly hard hit, with 412 pubs shutting their doors in 2024, bringing the total number of pubs in England and Wales below 39,000 for the first time on record. Nearly a third of all nightclubs have closed since 2020, driven by soaring costs, shifting consumer habits and restrictive licensing policies. VAT on hospitality, which stands at 20 per cent – is higher than almost anywhere in Europe. Germany, for example, still has a special post-Covid rate of 7 per cent. A study by YouGov, commissioned by UKHospitality – which represents 700 companies that operate approximately 130,000 venues across the country – found that 79 per cent of the public were in favour of a reduced rate of VAT for hospitality and tourism. Just 17 per cent supported keeping VAT at current levels. Lower VAT, campaigners claim, keeps prices low, widens choice, supports venues and encourages investment.
The Guardian
7 days ago
- Business
- The Guardian
‘Worse for hospitality than Covid': bosses blame Reeves' budget for UK downturn
'From a financial point of view, last year's budget was worse for hospitality than Covid,' says Philip Thorley, who owns 18 pubs across Kent and employs around 400 people. Usually he is looking to recruit staff to help out in the summer months but this year will be different, he says, as the £25bn increase in employers' national insurance contributions (NICs) that came into force in April has been 'catastrophic for our company and industry'. He says the fact that Thorley Taverns is now taxed around £8,000 a week, totalling more than £400,000 a year, means they cannot afford to take on anybody new during busier months. Current staff will have to work harder, Thorley adds, and the added pressure could impact customer service levels and opening times. 'This affects anybody in retail, in the high street and other entry-level jobs, especially young people,' he says. After the chancellor, Rachel Reeves, announced the NICs rise in October, business groups argued that they would hit hiring and retention. On Thursday signs of that impact emerged in the latest official jobs data showing that unemployment climbed and wage growth slowed in the three months to May. The trade body for the hospitality sector said data showed it had been the hardest hit sector since the budget, accounting for 45% of all job losses. The chair of UKHospitality, Kate Nicholls, said: 'The change to employer NICs in particular, was socially regressive and had a disproportionate impact on entry level jobs.' Cliff Nicholls, who runs two trampoline parks in Tamworth and Bolton, says his business rates have gone up 240% over what they paid last year, resulting in him cutting around 14 jobs. Due to high business rates increasing energy costs, Cliff has reduced opening hours, which is what he says is impacting his business the most. Jump Xtreme was open seven days a week all year round, but they have now had to close two days a week during term-time to save on bills. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion The trampoline parks are in large buildings, which use more energy than most other local businesses, Cliff says. 'Wholesale energy costs, which are largely outside government control, have gone up by 100% in the last four years,' he adds. 'I'm hopeful, because the government indicated business rates will be reviewed in the next budget, but I'm not holding my breath given the government's track record.'
Yahoo
7 days ago
- Business
- Yahoo
Restaurants suffer ‘devastating' job losses after Reeves tax raid
Restaurants and pubs have suffered 'devastating' job losses after Rachel Reeves's tax raid on businesses, bosses have said. The hospitality industry has lost more than 108,000 payroll jobs over the last year, according to official figures out today, with retail and wholesale down more than 65,500. Industry body UK Hospitality said the sector has lost 84,000 jobs since last year's Budget, when the Chancellor hiked National Insurance contributions (Nics) and the minimum wage. The sector's total job losses since the Budget has risen by 13,000 jobs in a month, the organisation said, which accounts for nearly half – 45pc – of all job losses. Kate Nicholls, chair of UK Hospitality, said: 'These devastating job losses are a direct consequence of policy decisions at last year's Budget, which have disproportionately hit the hospitality sector. 'The change to employer Nics in particular, was socially regressive and had a disproportionate impact on entry level jobs. 'Without a change of tack from the Government we could be looking at even more job losses in hospitality, when we should be bringing people into the jobs market. 'We desperately need to see action at the upcoming Budget. We urge the Government to act on our asks to fix NICs, by extending the existing exemptions to include both young people and people moving from welfare to work, which will boost jobs and help to reverse this huge loss.' It comes after the Office for National Statistics said unemployment jumped to a four-year high of 4.7pc in the three months to May, while average regular pay growth excluding bonuses dropped to 5pc, which was the weakest since June 2022. 05:01 PM BST FTSE 100 closes higher The FTSE 100 rose 0.5pc, close an an all-time high set earlier in the week. Distribution group Diploma surged 6.4pc after telling investors that sales would be higher than expected. At the other end of the index, easyJet fell 4.9pc on worries about fuel costs and strikes. Meanwhile, the mid-cap FTSE 250 rose 0.7pc. Major stock markets across Europe also finished up this afternoon. Thanks for joining us on this blog - that's all for today. 04:51 PM BST Markets sell-off 'only showed 40pc risk of Powell firing' Reports yesterday that Donald Trump was making moves to sack Jerome Powell, the Fed chairman, caused the dollar to dive and Wall Street to fall. But a leading economist has said that the market's reaction was much less significant than if Mr Powell was actually pushed out. Jonas Goltermann, of Capital Economics, said: 'The sharp price swings in the hour or so between the initial press reports and the president's comments provide the clearest picture yet as to what might transpire if a serious attempt were made to remove Powell before the end of his term. Long story short, it's not a pretty picture... 'That dramatic hour between the first press reports and Trump's denial of them give a clear indication of what would happen if he did indeed seek to remove Powell before the end of his term next May. 'In all likelihood, the initial effect of such a decision would be considerably more damaging: yesterday's move only reflected an increased probability of such an outcome, not the reality. For what it's worth, prediction markets saw the probability of Powell getting fired double from about 20pc to 40pc, before falling back down.' 04:31 PM BST Think tank says Starmer should change course after jobs figures Sir Keir Starmer's administration should change course after figures were released today showing that staff on payrolls fell by 41,000 in June. Professor Len Shackleton, of the Institute of Economic Affairs, said: 'Today's disturbing labour market data, with falling payroll employment and vacancies coupled with rising unemployment, show the impact of the national insurance hike and employers' anticipation of the costly effects of the Employment Rights Bill. 'Government cannot really create jobs, except for those directly taxpayer-funded - of which we have far too many in quangos, regulators and much of the civil service. But it can certainly destroy private sector jobs by making it more and more difficult to employ people cost-effectively. 'It is not too late for the Government to recognise this and row back from some of the policies which are causing the labour market downturn before we face joblessness on a scale which we haven't seen for many years. But governments are notoriously slow learners.' 04:27 PM BST Wall Street hits all-time high on strength of US economy Wall Street is hanging near its records this afternoon following some better-than-expected updates on the economy and a mixed set of profit reports from big US companies. The S&P 500 is up 0.4pc at an all-time high. The Dow Jones Industrial Average rose 0.3pc, and the Nasdaq added 0.7pc to its record set yesterday. Trading was calmer than Wednesday's, when Donald Trump jolted financial markets by saying he had discussed the 'concept' of firing the chair of the Federal Reserve but was unlikely to do so. Such a move could help Wall Street get the lower interest rates it loves but would also risk a weakened Fed unable to make the unpopular moves needed to keep inflation under control. A strong profit report from Taiwan Semiconductor Manufacturing Company (TSMC) helped drive tech stocks, and its profit soared nearly 61pc in a quarter. The chip maker said it is seeing strong demand from artificial intelligence and other customers, and its stock that trades in the United States rose 3pc. Other stocks involved in AI also climbed, and a 1pc gain for Nvidia was one of the strongest forces pushing upward on the S&P 500. 03:59 PM BST Dollar gains 'firmer footing' despite row over Fed The dollar is up 0.3pc against key rivals this afternoon after data showed retail sales rose more than expected in June. It follows a turbulent session yesterday when Donald Trump denied reports that he has drafted a letter sacking Federal Reserve chairman Jerome Powell. He did, however, say he had discussed terminating Mr Powell's employment with a group of House Republicans, who had supported it. In April, Mr Trump had to row back from a threat to sack Mr Powell after it caused market chaos. The dollar has rallied this month in what analysts say is largely consolidation following a sharp sell-off for most of this year. The dollar index remains down 9pc year-to-date. Rising Treasury yields this month are supporting the dollar's rebound. 'After having a historic sell-off in the first half, the dollar has begun the second half on firmer footing. It looks like mostly short covering backed by these firmer US interest rates,' said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. 03:39 PM BST Bond market less hopeful of two UK rate cuts this year The bond market is less hopeful of UK interest rate cuts today after new figures revised down May's plunge in the number of employees on payrolls. Revised data says the fall was 25,000 instead of 109,000. The change could affect how much the Bank of England's deliberations about rates. The yield on two-year UK gilts rose to 3.887pc from 3.849pc yesterday afternoon. Meanwhile, the money markets are fully pricing in two quarter of a percentage cuts in rates yesterday, but are not pricing in slightly less than two. 03:36 PM BST Trump suggests Fed should cut rates after retail sales rebound Donald Trump has demanded that Jerome Powell, the Fed chairman, cuts interest rates after strong retail sales figures suggested the economy was going well. The data could, in fact, reinforce the Fed's view that employment in the economy is stable and not needing an urgent rate cut. The US central bank has been given two objectives by Congress: stable prices and maximum employment. 03:30 PM BST Citi predicts three more rate cuts this year The Bank of England will still cut interest rates another three times this year after the jump in unemployment, according to Citi. The Wall Street bank said it was betting that 'the balance of probability is tilted towards continuing with the gradual and careful approach for now' from the Bank's Monetary Policy Committee (MPC). It said its base case was for cuts in August, November and December this year, with interest rates to drop from 4.25pc now to 2.75pc by the middle of 2026. Economist Michel Nies said official data 'maintains a stagflationary tendency', with inflation rising to 3.7pc in June after the economy shrank in May, just as the jobs market also weakens. He said: 'We think the signal from the latter might be more important than that from the CPI data, for which there are caveats that can explain to beat without much reference to output gap pressures. 'However, we don't think the labour market loosening has gained sufficient pace yet to gain a majority in the MPC for sequential rate cuts from September on.' 03:04 PM BST Fed independence 'essential' says candidate to replace Powell The independent of the Federal Reserve is 'essential' according to one of the men tipped as a possible replacement for Jerome Powell. Kevin Warsh has criticised the current head of the central bank for the Fed's 'hesitancy to cut rates'. It comes a day after a sharp swing in markets after reports Donald Trump was considering sacking Mr Powell. It triggered a slump in the dollar and a surge in US borrowing costs. Markets have calmed after the US president said it was 'very unlikely' he would fire the Fed chief, a move which traders fear would undermine the independence of the central bank. 'History tells us that the independent operations in the conduct of monetary policy is essential,' Mr Warsh told CNBC. 'But that doesn't mean the Fed is independent in everything else it does.' Mr Warsh was a Fed governor from 2006 to 2011 when he was viewed as favouring higher interest rates to fight inflation risks. He said: 'If they were a very credible central bank, they could say, 'We're looking past this one-off change in prices,' and so their hesitancy to cut rates, I think, is actually quite a mark against them.' 02:38 PM BST Wall Street rises after boost to retail sales US stock indexes edged higher after figures showed a rebound in retail sales last month. The Dow Jones Industrial Average rose 40.95 points, or 0.1pc, to 44,295.73, whole the S&P 500 gained 5.57 points, or 0.1pc, to 6,269.27. Gains were kept in check amid ongoing uncertainty around the future of Federal Reserve chair Jerome Powell, after reports on Wednesday that Donald Trump was considering firing him. The tech-heavy Nasdaq Composite gained 34.26 points, or 0.2pc, to 20,764.75 after upbeat results from Taiwan's TSMC boosted US chipmakers. 02:29 PM BST US unemployment claims drop despite tariff turmoil Applications for US unemployment benefits declined for a fifth straight week to the lowest level since mid-April, official data showed. In contrast to the UK, where the picture was of rising unemployment, first-time US jobless claims decreased by 7,000 to 221,000 in the week ended July 12. Although the figures are not directly comparable, Britain's claimant count rose in June to its highest level since October. Continuing claims, a proxy for the number of people receiving benefits, were little changed at 1.96 million in the previous week that included Independence Day, the Labor Department said. Weekly claims have fallen back toward subdued levels seen before the pandemic after trending higher in May and June. At the same time, recurring claims near the highest since 2021 suggests unemployed Americans continue to find difficulty in securing a new job as the pace of hiring has slowed. The four-week moving average of new applications, a metric that helps smooth out volatility, dropped to 229,500 — the lowest since early May. 02:01 PM BST US retail sales bounce back While retail businesses are struggling in Britain, the same could not be said of companies in the US. American retail sales bounced back in June, exceeding analysts' expectations after an uptick in car sales. Overall sales climbed 0.6pc last month to $720.1bn, reversing the 0.9pc decline in May, data from the Department of Commerce showed. This was well above a 0.3pc increase expected by analysts, and total sales were up 3.9pc from a year ago. But there are signs that sweeping tariffs may be taking hold in the world's biggest economy. Motor vehicle and parts dealers saw sales advance 1.2pc between May and June, the report showed. But overall sales were up by a slightly slower 0.5pc excluding cars. Thomas Ryan said the figures showed the US consumer was 'still in good shape'. He said: 'The only potentially worrying sign was furniture and electronics retail sales both edging down following slightly larger declines in May, suggesting tariffs are beginning to weigh on spending in those areas.' 01:32 PM BST Traders make £20m bet on faster interest rate cuts Traders have placed bets that the Bank of England will cut interest rates faster than the market is expecting despite surging inflation. The wagers in the options market totally £1.5m will pay out nearly £20m if policymakers cut rates to 3.5pc this year, according to Bloomberg News. The bets come despite jobs news this morning that indicate the labour market is not weakening as fast as feared, while inflation jumped to its highest level in nearly 18 months in June at 3.7pc. Money markets indicate the Bank of England is likely to cut rates twice more this year to 3.75pc, although some economists think there could be just one more reduction in borrowing costs in 2025. 01:05 PM BST No 10 'disappointed' by Jaguar Land Rover job cuts Downing Street has branded Jaguar Land Rover's plans to cut 500 jobs in the UK 'disappointing', but insisted jobs at the company had been protected by the US trade deal. Sir Keir Starmer visited JLR's factory in Solihull to announce the US deal in May, even speaking to Donald Trump from the site. A No 10 spokesman said the US deal was about 'jobs being saved, not job done' following JLR's announcement of voluntary redundancies. The spokesman said: 'We are working closely with JLR. We're backing British car makers through our plan for change, including £2.5bn over the next decade to support the shift to electric vehicles, more flexibility in the Zev (zero emission vehicle) mandate and new incentives like the electric car grant and those trade deals such as those with the US and India will cut tariffs and open up new export opportunities for UK manufacturers. 'So whilst this news is disappointing, we're taking real action to support jobs and investment in the long term.' 12:38 PM BST Labour to blame for 'devastating' job losses, says hospitality sector Britain's pubs, restaurant and bars have come out swinging after the sector was the hardest hit by job losses. New data from the ONS today revealed that hospitality has been the hardest hit sector, losing 84,000 jobs since last year's Budget. That's an increase of 13,000 job losses in a month and accounts for nearly half – 45pc – of all job losses. Kate Nicholls, chair of UK Hospitality, said: These devastating job losses are a direct consequence of policy decisions at last year's Budget, which have disproportionately hit the hospitality sector. 12:17 PM BST FTSE rises after jobs data The FTSE 100 has gained ground as traders bet on an upcoming rate cut. The blue-chip index is up 0.5pc at midday at 8,969 points. The domestically-focused FTSE 250 gained 0.4pc. Markets are betting on the Bank of England cutting interest rates in August, though expectations of further cuts have been scaled back after Britain's job market cooled less than expected. Ocado led the rises, jumping 14pc after the online supermarket posted a sharp jump in profits. Easyjet shed 6pc after the budget airline warned a strike by French air traffic control this month and rising fuel costs will hit profits. 11:33 AM BST Pound rises as traders reduce bets on rate cuts The pound strengthened against the euro after Britain's jobs market loosened by less than expected. The euro was last down 0.3pc on the pound at 86.4p after a substantial revision to previous payrolls figures reduced pressure on the Bank of England to accelerate the pace of its rate cuts. Data showing a dramatic 109,000 drop in the number of employees on company payrolls in May was revised to show just a 25,000 decline. Meanwhile, annual wage growth in the three months to May fell to 5pc, which was its lowest since the second quarter of 2022 but still slightly higher than the 4.9pc expected by analysts It meant that money markets no longer fully priced in two rate cuts by the Bank of England before the end of this year, while some economists said they only expect one more reduction in borrowing costs. Deutsche Bank's chief UK economist Sanjay Raja said: 'Today's labour market report continues to paint a picture of a loosening jobs market. That said, the labour market picture looks better than it did last month.' The pound was down 0.1pc against the dollar at $1.34, as the US currency strengthened after a sell-off on Wednesday triggered by concerns Donald Trump was considering sacking Federal Reserve chair Jerome Powell. Mr Trump later backtracked on the pound. 11:13 AM BST Strong wage growth means just one more rate cut this year Wage growth has proven a headache for the Bank of England that will lead to just one more rate cut this year, a think tank has warned. The National Institute of Economic and Social Research (Niesr) said growth in earnings 'has remained higher for longer than expected'. Average regular pay growth excluding bonuses dropped to 5pc in the three months to May, which was the weakest since June 2022, according to the ONS. Niesr associate economist Monica George Michail said pay growth was proving persistent, which was likely due to the rise in national minimum wage, and increased competition for obtaining and retaining talent, 'especially given stricter requirements to hire foreign workers'. She said: 'Strong wage growth has been a source of inflationary pressure, causing a headache for the Bank of England's interest rate cut decisions. 'Nevertheless, we forecast a gradual downward trend in wage growth moving forward and expect one further interest rate cut this year.' 10:43 AM BST Interest rates to be cut just once this year, warn economists Interest rates will be cut just once more this year amid soaring inflation and a stronger-than-expected jobs market, economists have warned. Pantheon Macroeconomics said it was now forecasting just one more rate cut in August after huge revisions to payrolls data. The ONS said last month that there had been a 109,000 decline in staff on payrolls between April and May but this was revised today to a drop of 25,000. Meanwhile, figures on Wednesday showed inflation jumped to 3.7pc in June, which was the highest since January 2024. Rob Wood, chief UK economist at Pantheon Macroeconomics, said he expected a 'one-and-done cut in August'. He said:'We are still torn. We cannot help but look at these jobs data, and inflation yesterday, and think the August decision is closer than the market prices.' Money markets indicate there is an 89pc chance of an August rate cut but traders are no longer pricing in a second reduction before the end of this year, as had been the case before the latest jobs data. Traders are betting there is a 98pc chance that there will be a third rate cut to 3.5pc by June next year. Deutsche Bank's chief UK economist Sanjay Raja said a 'gradual and careful' approach to rate cuts by the Bank of England 'seems appropriate for now'. He said: 'We do not think that the bar for faster rate cuts has been met just yet. The labour market is loosening, but perhaps not as fast as the unrevised payroll data suggested.' 10:27 AM BST Bank of England's jobs made harder by 'shoddy' jobs data The Bank of England faces a difficult task of judging how far to cut interest rates as it contends with 'shoddy' jobs data, economists have warned. The number of staff on payrolls fell by 41,000 in June compared to May to the lowest level since September 2023, according to the ONS. However, the previous month's 109,000 decline was revised down to a drop of just 25,000. Bank of England governor Andrew Bailey said the UK's jobs market was weakening as a result of the Chancellor's tax changes, which took effect from April. However, he also told the House of Lords this month that he was 'frustrated' by problems with the official jobs numbers, which makes setting interest rates at the correct level more difficult. Andrew Wishart, economist at Berenberg, said: 'Large revisions to the employee payrolls numbers add to the feeling that we are all at sea when it comes to understanding trends in employment. 'Indeed, the workforce jobs and labour force survey measures of employee numbers are far less downbeat. However, with all other indicators pointing to slowing jobs growth we can be confident that it is slowing.' Rob Wood of Pantheon Macroeconomics echoed the sentiment. 10:13 AM BST Data revisions not enough to dampen hopes for rate cuts The latest jobs figures included a huge positive revision for payroll data for May, although this is not enough to dampen expectations for interest rate cuts next month. May's 109,000 drop in payrolls was revised to a more modest decline of 25,000 by the ONS. It estimated that payrolls in June declined by 41,000. Dutch bank ING still thinks the Bank of England will cut rates four more times after the latest jobs figures. Economist James Smith said: 'The combination of less worrisome jobs data and hotter inflation figures yesterday, suggests the bar for the Bank of England accelerating cuts is still high. We expect cuts in August and November, and two further cuts next year.' 09:40 AM BST Frasers cutting costs after Chancellor's tax raid Frasers said it was working hard to offset soaring wage costs following Rachel Reeves's tax raid on businesses. The high street retailer said profits in the second half of its financial year jumped 8.3pc as it recovered from a tough end to 2024 due to weaker consumer confidence caused by the autumn budget. Shares were down 2.6pc even after the company – majority-owned by retail tycoon Mike Ashley – said conditions had improved following a cut to its profit outlook in December. The group said it expects to deliver underlying profits of between £550m and £600m in 2025-26 as it looks to cut costs to offset a £50m hike in costs. This was caused by the Chancellor's hike in employer national insurance contributions (Nics) and increase in the minimum wage from April, which she set out in last year's Budget. 'Following an especially weak period after last year's budget, both UK consumer confidence and trading conditions improved into 2025, and recent sales trends have been more encouraging,' the group said. Frasers – which also owns brands including House of Fraser, Flannels and Jack Wills and stakes in firms such as Hugo Boss – said it would focus on using artificial intelligence (AI) to drive cost savings. The Sports Direct owner reported a 2.8pc rise in underlying pre-tax profits to £560.2m for the year to April 27, despite a 7.4pc drop in revenues to £4.9bn. 09:22 AM BST Jaguar Land Rover to cut 500 UK jobs Jaguar Land Rover (JLR) will cut 500 jobs in Britain following a slump in sales and the threat of US tariffs. The carmaker said it would offer staff voluntary redundancy as 'part of normal business practice'. It said the cuts would affect managers and would amount to no more than 1.5pc of its British workforce. JLR said earlier this month that quarterly sales had fallen by 11pc as it dealt with Donald Trump's tariffs and largely stopped selling its Jaguar vehicles. 08:57 AM BST Traders expect interest rate cut next month Money markets indicate the Bank of England is likely to cut interest rates next month after unemployment rose to a four-year high. Traders are betting there is an 89pc chance that members of the Monetary Policy Committee (MPC) will lower borrowing costs in August. However, they are no longer pricing in a second cut before the end of the year, although derivates trades indicate this scenario is still considered likely. Yael Selfin, Chief Economist at KPMG UK, said slowing pay growth had 'opened the door' for an interest rate cut in August'. He said: 'Slowing activity in the labour market, coupled with pay pressures easing, will likely prompt the Bank of England to lower interest rates next month. 'The impact of April's tax and administrative changes has led to a marked slowdown in hiring activity among firms. 'With domestic activity remaining sluggish, the MPC will likely want to provide support via looser policy to prevent a more significant deterioration in the labour market.' 08:48 AM BST Unemployment will keep rising, warns Deutsche Bank Unemployment in Britain will continue to rise, Deutsche Bank has warned, as the jobs market continues to weaken. A 114,000 increase in redundancies in the three months to May and weak demand for jobs will push unemployment higher, it said. 'To be sure, the labour market continues to cool,' said chief UK economist Sanjay Raja. 'This will continue to see unemployment rise – but we think this will be a slow grind higher as opposed to a whipsaw higher.' He said the jobs figures meant the Bank of England would be able to proceed with 'gradual' interest rate cuts, despite the jump in inflation in June to 3.7pc. He said: 'A 'gradual and careful' approach seems appropriate for now. And we do not think that the bar for faster rate cuts has been met just yet. 'The labour market is loosening, but perhaps not as fast as the unrevised payroll data suggested.' 08:30 AM BST Stocks unfazed by risk of Trump firing Fed chief UK and European stock markets climbed in early trading despite the turmoil triggered on Wednesday by reports Donald Trump could fire the chair of the US Federal Reserve. The FTSE 100 gained 0.3pc while the Cac 40 in Paris jumped 1pc. The Dax in Frankfurt was up 0.9pc. Stocks swung wildly late on Wednesday after reports emerged that the US president was sounding out Republicans about the potential to fire Jerome Powell, who he has criticised for not cutting interest rates. Mr Trump later backtracked. There were signs of concern in bond markets today, where government borrowing costs edged higher around the world. Mohit Kumar, chief Europe economist at Jefferies, said: 'The volatility around the Fed chair would deal a big blow to the credibility of the Fed and would make the job of Powell's successor difficult. 'One of the reasons US sees substantial international inflows is the credibility of the US institutions. Any damage would see a negative reaction to both the equity and the bond market. 'We also do not see what Trump could achieve by firing Powell. Fed has a mandate to respond to growth and inflation and any subsequent chairperson would need to stick to them. 'Kevin Hassett and Kevin Warsh have emerged as the likely potential successors to Powell. 'If we get a dovish Fed chair, we could see rates going to neutral quickly. Hence, we could see 3-4 cuts by Q1 next year, but even a dovish Fed chair would struggle to get rate much lower as inflation is likely to be picking up in the coming months.' 08:14 AM BST Average 'real' pay packet same as 2008 The latest jobs data show that workers are just 1pc better off today than they were a year ago, after adjusting for living costs. As inflation accelerates, it raises fears that the recovery from the cost of living crisis may already be over. Real-terms earnings have not recovered to the peak seen in April 2021, before price rises surged when lockdown ended and Russia invaded Ukraine. It continues a long trend of poor pay growth. The average pay packet was the same size, after adjusting for inflation, as it was in February of 2008, according to the ONS. 08:07 AM BST UK stocks jump amid hopes for rate cuts Stock markets in London rose at the start of trading after jobs figures cemented the case for the Bank of England to cut interest rates next month. The FTSE 100 gained 0.3pc to 8,950.09 after official figures showed rising unemployment and declining job vacancies. Bank of England governor Andrew Bailey had said rate setters would be watching for signs of a weakening jobs market. The domestically-focused FTSE 250 climbed 0.3pc to 21,666.13. 08:02 AM BST Payrolls plunge in hospitality and retail In the past 12 months, the hospitality industry has lost more than 108,000 payroll jobs, with retail and wholesale down more than 65,500. It means the industries most exposed to higher Nics and the minimum wage – and often seen as an important first step into the world of work for youngsters – have taken a beating. The biggest growth sector is health and social work, with an extra 67,000 staff on payrolls. Worse is set to come. The number of job vacancies available in retail are at lows last seen in the pandemic and in the aftermath of the financial crisis, while hiring in hospitality is also running at low levels. Alex Hall-Chen at the Institute of Directors said: 'This continued slump in the demand for labour is the predictable result of a series of policy blows to the case for hiring staff. 'The cumulative impact of the increase in employer National Insurance contributions, the Employment Rights Bill, and above-inflation increases to the National Living Wage has been to significantly increase the costs and risks associated with employing staff. 'A significant rethink is needed if the Government is to meet its aims of driving economic growth and increasing the employment rate. 'The Government's commitment to consult on the detail of secondary legislation associated with the Employment Rights Bill is welcome, but will have no effect on hiring unless it is genuinely used to listen to and address the concerns of employers.' 07:55 AM BST Unemployment 'only thing growing under Labour', say Tories The shadow business secretary said unemployment 'is the only thing growing under Labour' after the rate of people out of work hit a four-year Griffith said: 'Today's ONS figures show that jobs are down and unemployment is up again – and we've yet to see the impact of the 300 page (Un)Employment Bill going through Parliament at the moment.' 07:54 AM BST Rising unemployment 'worrying,' admits minister Government minister Jess Phillips said it would take a 'long time' to turn around the economy following the latest jobs figures. The Home Office minister told Sky News: 'Fourteen years of totally stagnant growth is not something that changes overnight and that is why we have to have a steely focus on getting investment into Britain.' She said the unemployment figures were 'worrying' but the Government was 'fiercely seeking to create economic growth'. 'Some of this stuff is going to take huge amounts of time when we've had decades of stagnant growth, but as a constituency MP, as a citizen of the UK, these things are always worrying,' she said. But, she added: 'There have been hundreds of thousands of new jobs created and wages have increased in the last 10 months quicker than they increased in the last 10 years.' 07:48 AM BST Companies cutting jobs to cope with tax rises, say economists Companies are cutting jobs in response to Rachel Reeves's tax raid on employers, economists have said. The number of people on payrolls fell another 41,000 in June compared to May to the lowest level since September 2023, according to the ONS. Payrolls have declined by 178,000 employees over the last year. Paul Dales at Capital Economics: 'Payroll employment has fallen in seven of the eight months since the Chancellor announced the rises in National Insurance contributions (Nics) and the minimum wage. 'So clearly businesses are offsetting the rises in their costs by reducing headcounts. 'The further fall in the number of job vacancies, from 738,000 in the three months to May to 727,000 in the three months to June (the lowest since April 2021), also suggests that businesses have curtailed hiring plans.' 07:39 AM BST Job vacancies plunge as bosses battle tax rises The number of job vacancies fell further in the three months to June as businesses grappled with Rachel Reeves's tax rises and global economic upheaval. Job vacancies have fallen for 36 consecutive months, according to the ONS. Excluding Covid, when they were forced to shut their doors to customers, the latest data saw the smallest number of retail vacancies since 2012, when the economy was still recovering from the financial crisis. Paige Tao, economist at PwC UK, said: 'This highlights employers' continuous efforts to contain labour costs amid both domestic tax pressures and global turbulence. 'Following yesterday's upside CPI surprise, this softening in pay growth is critical for a Bank of England closely watching this final key data release ahead of the August MPC meeting. 'Governor Andrew Bailey recently said the Bank was watching for signs of 'slack opening up much more quickly', and today's figures suggest that shift may be underway. 'With GDP shrinking for two consecutive months and services inflation flat in June, the case for an August rate cut is certainly in place. 'The question now is, how much further will the labour market slide and could it prompt the Bank to accelerate its pace of easing?' 07:30 AM BST Pound falls as unemployment hits four-year high The value of the pound slumped after officials figures showed rising unemployment and weakening pay growth in Britain. Sterling was down 0.2pc against the dollar to $1.338 amid expectations that the data will lead the Bank of England to cut interest rates next month. However, the pound was up 0.2pc against the euro, which was worth 86.6p. 07:26 AM BST Jobs market 'continues to weaken' Britain's jobs market 'continues to weaken,' according to the Office for National Statistics. Director of economic statistics Liz McKeown said: 'The labour market continues to weaken, with the number of employees on payroll falling again, though revised tax data shows the decline in recent months is less pronounced than previously estimated. 'Pay growth fell again in both cash and real terms, but both measures remain relatively strong by historic standards. 'The number of job vacancies is still falling and has now been dropping continuously for three years.' 07:18 AM BST Wage growth slows to three-year low Wages grew at their slowest pace in three years in May, official figures showed, as Britain's economy slowed down in the wake of Rachel Reeves's tax raid. Average regular pay growth excluding bonuses dropped to 5pc during the months, which was the weakest since June 2022. In the private sector, regular pay excluding bonuses dropped to 4.9pc, which was the weakest since February 2022. All this came while the number of job vacancies dropped again to 727,000, which was the lowest since the three months to April 2021. 07:08 AM BST Good morning Thanks for joining me. Unemployment has climbed to a four-year high, official figures showed, after Rachel Reeves's tax raid on businesses. The UK unemployment rate hit 4.7pc in the three months to May, according to the Office for National Statistics (ONS), which was the highest since early 2021. It was above analyst estimates of 4.6pc and covers the period after the Chancellor imposed hikes in National Insurance contributions and the minimum wage on employers in April. The data is likely to cement the case for the Bank of England to cut interest rates next month in a bid to boost the economy. Private sector pay growth including bonuses dropped to 4.9pc, which was the first time below 5pc since September 2024 and also the joint-lowest since November 2021. Meanwhile, the number of people on payrolls fell another 41,000 in June compared to May to the lowest level since September 2023. Here is what you need to know. 5 things to start your day Reeves's inflation shock forces Bank of England to gamble | The Chancellor may not get the interest rate cut she needs to boost the economy Even the Guinness craze could not save the boss of Britain's booze empire | As sales of the black stuff soar, unease is brewing at struggling owner Diageo Shard flats left empty after Reeves's non-dom tax raid | Skyscraper's Qatari backers blame Labour for driving away wealthy potential tenants Trump eyes next boss of the Fed as axe hangs over Powell | With the end in sight for the besieged chairman, the hunt for his successor begins Jeremy Warner: China is preparing to steal the jobs of the future | Trump is fighting on an outdated front as Beijing focusses on the tech arms race What happened overnight Asian stocks dithered ahead of earnings from heavyweight technology companies and as market anxiety lingered over the uncertain tenure of Federal Reserve chief Jerome Powell. TSMC, the world's main producer of advanced AI chips, is expected to post a jump in second-quarter profit to record levels, although US tariffs and a strong Taiwan dollar could impact its outlook. Netflix also reports results later. MSCI's broadest index of Asia-Pacific shares outside Japan was up just 0.2pc and the Nikkei gained 0.3pc. Dominating the market mood was confusion over Fed chair Powell's future at the central bank. The initial news that Donald Trump was likely to fire Powell sent stocks and the dollar sliding. Mr Trump was quick to deny the reports, restoring some calm to volatile markets, but he kept the door open to the possibility and renewed his criticism of the central bank chief for not lowering interest rates. On Wall Street, the Dow Jones Industrial Average finished up 0.5pc, at 44,254.78, while the S&P 500 rose 0.3pc, to 6,263.70, and the Nasdaq rose a similar percentage, to 20,730.49. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.453pc, from 4.489pc late on Tuesday. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
