This morning’s headlines are dominated by speculation the Bank of England will cut interest rates later.
The BBC reports that analyst are predicting the benchmark rate will be cut from 4.75% to 4.5%, given the recent weakness in the UK economy which has seen slow growth.
The Bank rate is the primary tool aimed at controlling inflation, and hopes of a cut rose after the inflation rate – which charts the rising cost of living – fell to 2.5% in the year to December. However, it remains above the Bank’s target of 2%, and changes in the Budget are forecast to push it up.
The Telegraph reports policymakers are expected to lower borrowing costs amid concerns about growth in Britain’s economy and rising jobs cuts.
A “closely watched survey” on Wednesday showed jobs in the UK’s dominant services sector were being lost at the fastest pace in four years last month.
Meanwhile, a burgeoning tariff trade war between the US and China, the world’s two largest economies, poses further risks to growth. Kathleen Brooks, research director at XTB, said: “The Bank of England is likely to justify the move, even though inflation remains above target, due to a sluggish economy and a softening in the labour market in recent months.”
Also in The Telegraph is an opinion piece by M&S head of food Alex Freudmann, who writes he is backing PM Keir Starmer’s bid for closer ties with the EU to end years of “Brexit bureaucracy”.
Freudmann urges Starmer to “move with pace” to strip away unnecessary red tape governing trade across the Irish Sea. Rules surrounding shipments to the island of Ireland were burdening M&S with millions of pounds extra in costs, delaying trucks and saddling the company with “paperwork that takes hours to complete”, he said.
M&S has 39 shops in the Republic of Ireland and Northern Ireland, alongside more than 300 standalone food stores in the UK. It ships thousands of products across the Irish Sea, including sandwiches, ready meals and fresh produce. Freudmann added: “There is no difference in food standards between the UK and the EU so why do the rules pretend that there is? Five years on, it is time to put an end to the Brexit bureaucracy that burdens both UK and Irish businesses.”
Elsewhere, Tesco has expressed has expressed interest in acquiring more than 100 Crown Post Offices whose future has been placed under review as the state-owned company explores shifting them to a franchise model, Sky News reports.
Its city editor Mark Kleinmann writes that Nigel Railton, the Post Office chairman, told a group of MPs this week that Britain’s biggest retailer had informed it of a potential interest in taking over the sites. One MP who attended the talks on the future of the directly managed branches said Railton had given the impression in his remarks that Tesco was among a small number of suitors which could take over the entire 108-strong network.
The fate of the Crown Post Offices was called into question last autumn as part of a wider strategic review initiated by Railton, who took over as chair of the company following Henry Staunton’s sacking by Kemi Badenoch, the then business secretary.
The Guardian reports that McDonald’s has thwarted attempts to stop it opening new outlets by stressing that it sells salad, promotes “healthier lifestyles” and sponsors local children’s football teams.
Public health experts claim the fast-food firm uses a “playbook” of questionable arguments and tough tactics to force local councils in England to approve applications to open branches.
The disclosures, in an investigation published by the British Medical Journal (BMJ), set out how McDonald’s gets its way, especially when it appeals against councils’ decisions to block new openings. Since 2020 it has lodged 14 such appeals with the Planning Inspectorate. So far it has won 11 of them and lost only one, and there are two others ongoing.
Elsewhere in The Guardian, a dog treat made from lab-grown meat has gone on sale at Pets at Home, in a move the retailer claims is a world first.
Chick Bites are made from plant-based ingredients combined with cultivated meat, which is produced by growing cells and does not require the raising or slaughter of animals. The manufacturer, Meatly, said the chicken was produced from a single sample of cells taken from one chicken egg, from which enough cultivated meat could be produced to feed pets “for ever”.
Read The Grocer’s coverage of that story here…
The Telegraph also has a piece on how Diversity, Equity and Inclusion (DEI) is now “dead in America”, following president Donald Trump’s purge of the policy, “And now the City wants to kill it in Britain”.
Chancellor Rachel Reeves has promised to crackdown on “stifling and unpredictable regulation” across the economy to kickstart growth. In the City of London, bankers want her to start by targeting diversity, equity and inclusion (DEI) rules.
While most agree that diversity is good for business, many bosses argue that it should be up to them to decide how to improve representation based on the specific circumstances and business needs of their companies, the report claims.
However, City regulator the Financial Conduct Authority is considering putting in place official rules for how companies should treat diversity. A policy statement is expected later this year, following a consultation in 2023 that recommended requiring companies to draw up and publish an official diversity and inclusion plan overseen by the board, The Telegraph piece adds.
The idea is to prioritise hiring people from under-represented groups to ensure a balance of gender and ethnicities within companies. The FCA argues this will help to reduce group think, support healthy work cultures, improve understanding of and provision for diverse consumers and tap into diverse talent. But the proposals have sparked fierce backlash from critics including Kemi Badenoch, the Conservative leader, who has accused the watchdog of “overreach” and said the plans could hinder the government’s push for growth.
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