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Unprecedented inflation grips UK households in 2023

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CONSUMERS grappled with the most severe inflationary pressures in a generation throughout 2023, significantly impacting household budgets and causing widespread distress.

In March, food inflation surged to a staggering 19.6%, marking a more than 45-year high. While the pace of price increases has moderated, prices still persist at 9% above the previous year’s levels.

Sue Davies, Head of Food Policy at Which?, remarked, “The year 2023 witnessed the worst inflation in a generation. Despite a slowdown in the rate of price escalation, many find food prices still prohibitively high. Essential items may never revert to pre-cost-of-living crisis prices.”

Although some relief is noted in the reduced cost of butters and spreads compared to the previous year, everyday essentials may not witness a return to their pre-crisis affordability. Davies urged supermarkets to support struggling consumers by ensuring affordable food remains accessible in smaller branches.

Likewise, households endured another year of energy bill challenges as the pandemic’s lingering effects and Russia’s invasion of Ukraine exposed the UK’s vulnerability to the volatile wholesale market.

The year began with Ofgem’s energy price cap soaring to over £4,000 annually for the average household. However, the government’s energy price guarantee capped bills at an average of £2,500, supplemented by a £400 relief. While bills have since decreased, the price cap will rise to just over £1,900 from January 1, still notably higher than pre-crisis levels.

Headline inflation has receded sharply, hitting its lowest level in over two years last month, reinforcing predictions for the Bank of England to initiate interest rate cuts in early 2024. Official figures revealed falling fuel prices and reduced food inflation contributed to the Consumer Prices Index (CPI) dropping to 3.9% in November from 4.6% in October.

Despite the decline, the Bank cautions against premature celebrations, emphasizing the ongoing challenge of bringing inflation back to its 2% target. The situation remains fluid, with the potential for rapid changes based on fuel price spikes or significant wage growth.

There’s a suggestion that headline inflation might increase early in the new year as the CPI basket is re-weighted and the household energy price cap increases by 5% from January 1.

Balwinder Dhoot, Director of Sustainability and Growth at the Food and Drink Federation, highlighted that while agricultural commodity prices are generally falling, they remain 21% higher than pre-pandemic levels. Factors like the recent navigation turmoil in the Red Sea are expected to add to inflationary pressures on the sector.

Andrew Goodacre, Chief Executive of the British Independent Retailers Association (Bira), anticipates 2024 to be another challenging period amid prevailing economic pessimism. Stability is crucial for economic recovery, with consumer confidence playing a pivotal role. Goodacre emphasized the potential for instability in the event of a general election.

Looking ahead, Jack Meaning, Chief UK Economist at Barclays, expects 2024 to be a challenging transition year. He anticipates the Bank of England easing interest rates from mid-year, providing some relief to those affected by the cost-of-living crisis. Meaning concluded, “2024 will be a year of transition, from headwinds to tailwinds, but come next December we should be able to toast the new year with more festive spirit.”

Business

Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

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PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

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52 homes to be built in Roch as scheme gets final sign-off

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THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.

Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.

18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.

Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.

An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].

“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.

“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”

Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.

Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.

The Section 106 agreement was recently agreed, with the application now formally approved.

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World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners

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AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently. 

Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport. 

The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site. 

The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce. 

SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal. 

Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering.  They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.  

“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”

Poppy Sawyer, Year 8 SPARC learner added:  ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”  

 “They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.

The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.

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