Britain’s economy faces a ‘prolonged period’ of weaker growth as consumer spending slows and business curbs investment, according to a report published on the BBC website.
Although the EY Item Club think tank predicts the economy will grow 1.9 per cent this year, it expects that performance to fizzle out as inflation rises. The economy’s stability since June’s Brexit vote was ‘deceptive’, EY said. Meanwhile, a senior Bank of England official told the BBC that inflation may surpass its 2 per cent target. The Bank’s deputy governor Ben Broadbent told Radio 5 live that sterling’s weakness would fuel inflation, but that controlling prices with tighter monetary policy could hit growth and jobs. And The Mail on Sunday reported that retailers are poised to impose a wave of price rises that could add 5 per cent to shopping bills in the new year after the pound plunged by more than the worst forecast of so-called ‘Project Fear’.The hikes, expected to hit soon after Christmas, will cost consumers an estimated £15 billion next year. A slew of executives from supermarkets, fashion retailers and suppliers have issued warnings. Most declined to be named – saying the issue has become too political – but all predicted price rises of at least 5 per cent.
Housing A new standard for housing designed to be the equivalent of the living wage has been launched by the charity Shelter – and it said four out of 10 homes in Britain were failing to meet it. The Guardian reports that the ‘living home standard’ gives 39 criteria that flats and houses have to meet in order to provide an acceptable home that secures the occupants’ wellbeing. It was drawn up during nine months of consultation with the public, who came up with the criteria in five areas: affordability, decent conditions, space, stability and neighbourhood. A further survey of almost 2,000 people found that across the country 43 per cent of people did not live in homes that met all the standards. Just over a quarter failed on affordability, while almost a fifth failed to meet the standard because of poor conditions, with problems including persistent pests, damp and safety hazards. One in 10 failed because of insecurity about the period of occupancy. In other housing news, the newspaper also reports that the property rental market is booming at the expense of the sales market, making it look as if house-buying will be outstripped for the first time in eight decades next year, as home-buyers face a continued struggle to find properties they can afford. Activity in the sales market has cooled since June’s Brexit vote and a lack of property for sale combined with rising prices are set to lead to more new lets than purchases, the UK’s largest estate agency chain, Countrywide, said. And Thisismoney reports that house prices have risen by another £2,623 on average across England and Wales, new figures from a property website suggest – but it said the regions have fragmented into buyers’ and sellers’ markets. The average price of a property coming on to the market this month is up 0.9 per cent compared to last, hitting £309,122. Wills October is Free Wills Month, which offers over 55s the opportunity to have their Will written or updated free of charge, and SunLife is urging the 4.2 million over 55s that have no will to take advantage of the service while it is still available. Graham Jones, director at Sunlife, said: ‘Our data shows that 23 per cent of over 55s have no will, which means 4.2 million over 55s currently have not got a will in place. And this means that potentially 128,071 over 55s died without leaving a will last year.’
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