News that retail sales have “plunged” in October is getting plenty of coverage this morning, after the Office of National Statistics (ONS) revealed that sales volumes had fallen by 0.7%, following 0.1% growth in September.
Reported on by The Financial Times, The Guardian and The Times among others, the ONS attributed the slide to consumer uncertainty and what Reuters described as a “loss of momentum” in the run-up to the first Labour budget. The dip - which was steeper than the 0.3% decline predicted by analysts - put an end to a consecutive three months of growth.
While fashion took the biggest hit, with sales dropping by 3.1% for the month (backing up the British Retail Consortium’s figures, which attributed the fall to milder weather) food sales didn’t go unscathed, with the data showing sales volumes dip by 0.6% for the same period.
Despite this, retailers’ spirits should be boosted by the spike in consumer confidence, reported on in The Times and The Independent, as shoppers put pre-budget concerns behind them and prepare to spend big for Black Friday and Christmas.
The GfK figures show that household confidence is up three points (to -18), reversing the fall in sentiment which had been seen in previous months due to consumer uncertainty.
In its coverage of the story, The Financial Times pointed out that wages have continued to rise more than inflation, allowing consumers to recover from price surges over the past three years.
The farming inheritance tax row is going nowhere, with a number of stories appearing in the papers, including The Telegraph, The Express and The Guardian.
The headline news comes from an exclusive in The Guardian, which says that farners aged 80 and above could be made exempt from the IHT bill which has been the subject of huge backlash and mass protests since it was announced (covered in detail by The Grocer).
The change - which would mean over-80s can pass on their farm without having to live for seven years after making the gift - would mark a partial U-turn by the Labour government.
A different angle comes from The Express, which chose to focus on the amount the UK government spends on overseas aid (or “foreign farms”). It revealed that more than £536 million is being spent on developing agricultural schemes in countries including Brazil and Rwanda, which shadow cabinet minister Robert Jenrick described as a “slap in the face” for British farmers.
There’s more budget fall out this morning, this time from the company which owns Royal Mail. International Distribution Services (IDS) has said it is considering job cuts and price rises, following the chancellor’s NICs changes, which it says will cost the business £120m a year.
The Times reported that stock market-listed IDS plans to devalue Royal Mail by £134 million to £1.91 billion, reflecting the new budget-related costs.
CEO Martin Seidenberg said he ”cannot rule out any price increases. But it’s not just about consumer stamps, we are looking at all products … that includes parcels and also business mail.” He added that said “job cuts were being considered” but would be “a last resort”.
According to The Guardian, The Communication Workers Union (CWU) said that IDS’ half-year results showed that - while still a lossmaking business - Royal Mail was ”in good health and did not need to make severe cuts”.
Royal Mail has said it is being hit disproportionately by the NIC rises as it is one of the UK’s largest employers, with 130,000 staff.
Finally - and in more bad news for consumer wallets - Ofgem has increased the energy price cap, meaning that household energy bills will rise from next year. The BBC described the news as ”a fresh blow for millions of pensioners” who had their £300 winter fuel payments removed earlier this year.
The Telegraph reported concerns for British consumers still struggling with the cost of living crisis. Energy secretary Ed Miliband - who blamed the rise on the UK’s dependence on fossil fuels - said the rise would “cause concern for families struggling with the cost of living”, adding that ”the government will do all we can to help people”.
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