Business

Unprecedented inflation grips UK households in 2023

Published

4 months ago

January 2, 2024

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

Tata Steel Sticks to job cut plans despite Welsh pressure

Published

8 hours ago

May 11, 2024

Tom Sinclair

IN an intense and pivotal meeting in Mumbai, Tata Steel firmly reiterated its decision to cut 2,800 jobs in the UK, primarily impacting the Port Talbot site, despite urgent appeals from Welsh First Minister Vaughan Gething. Mr. Gething, who recently met with senior executives, expressed his disappointment at the firm’s unwavering stance unless there’s a shift in the UK government.

Despite these challenging circumstances, the First Minister underscored his commitment to protect jobs and prevent compulsory redundancies across Welsh sites. This dialogue comes as Tata plans to close both blast furnaces at Port Talbot by September, replacing them with a greener electric arc furnace by summer 2025, which promises to preserve thousands of jobs and reduce CO2 emissions significantly.

The Welsh Conservative leader, Andrew RT Davies, criticised Mr. Gething’s approach, suggesting that while the UK government has offered substantial financial aid, the Welsh government has only funded the First Minister’s travel to India. He accused Mr. Gething of “globetrotting” at a time of domestic scrutiny over controversial donations to his Welsh Labour leadership campaign.

Mr. Gething defended his trip, stating, “How can I sit at home and not be here in Mumbai, fighting for thousands of workers’ jobs?” He highlighted the potential of a change in leadership, with UK Labour leader Sir Keir Starmer poised to possibly become the next Prime Minister, which he believes could usher in a new era of capital investment for the steel industry.

Amid the uncertainty of an upcoming general election, possibly scheduled between October and January, there is concern that any governmental changes may arrive too late to alter Tata’s current trajectory. Tata CEO TV Narendran described the discussions as productive but maintained the company’s strategic direction, emphasizing their commitment to a sustainable future in the UK steel industry.

The GMB union and members of the Community steelworkers’ union have voiced strong opposition, with recent votes favouring industrial action against the restructuring plans. Plaid Cymru’s economy spokesman, Luke Fletcher, has called for the nationalisation of the steel industry, labeling Tata’s current worker treatment as “appalling.”

Meanwhile, both parties acknowledged areas of mutual benefit, such as potential investments around Port Talbot and collaborations with Welsh universities on green steel production. The First Minister also highlighted opportunities linked to the Global Centre of Rail Excellence near Neath, with Tata considering a formal agreement.

As Mr. Gething returns from Mumbai, the situation remains tense, with the future of many steelworkers hanging in the balance and the Welsh and UK governments at odds over the best course of action to mitigate job losses and transition to sustainable steel production.

Business

Port welcomes first vessel to new workboat pontoons

Published

2 days ago

May 9, 2024

Tom Sinclair

PEMBROKE PORT, which is owned and operated by the Port of Milford Haven, has welcomed the first customer to its new workboat pontoons. Installed as part of the Pembroke Dock Marine project to modernise the Port’s infrastructure, the pontoons are available for use by a range of vessels including workboats, barges and other small vessels.

CRC Sentinel, a dive support vessel owned by Commercial Rib Charter which is undertaking work on the Milford Haven Waterway, was the first to use the new pontoons.

Sharon Adams, Commercial Manager for Pembroke Port commented: “It’s great to see these new assets being utilised. Pembroke Port is perfectly positioned within the Port of Milford Haven to act as a hub for operations associated with marine activity taking place within the Port and the Celtic Sea. The pontoons are available for short and long term berthing and have secure access, as well as electricity and water hook ups.

The workboat pontoons compliment the other infrastructure upgrades we made as part of the Pembroke Dock Marine project including new laydown space and an expanded slipway.

We look forward to working with our existing customers, and welcoming new ones, to use the new facilities at Pembroke Port.”

The new infrastructure at Pembroke Port forms part of the Pembroke Dock Marine project to create a world-class energy and engineering centre of excellence and act as a focal point for capturing the economic value from wind, wave, and tidal renewable energy projects.

Alongside the Port’s own investment, Pembroke Dock Marine – a Swansea Bay City Deal project – is part funded by the UK Government and the European Regional Development Fund through the Welsh Government as well as other private sector partners.

During construction, the project supported over 50 jobs including 6 apprenticeships. Contractors BAM, Walters Group and R&M Williams undertook community activity during the project, with the local community benefiting from over £11m local spend.

For further details on the facilities at Pembroke Port, and how the Pembroke Dock Marine investments have readied Pembroke Port for future energy, please visit www.pembrokeport.com.

Business

Last Call for Entries: Carmarthenshire Business Awards

Published

2 days ago

May 9, 2024

Tom Sinclair

BUSINESSES throughout Carmarthenshire are urged to submit their nominations for the prestigious Carmarthenshire Business Awards as the deadline of 17th May 2024 rapidly approaches.

Organised by Grapevine Event Management, these awards are set to recognise and celebrate the outstanding contributions and achievements of local enterprises across a variety of sectors. With the nomination process ending in less than two weeks, businesses and individuals from across the county are invited to take advantage of the opportunity for recognition by entering one of the 15 award categories.

The winners will be unveiled during a glamorous black-tie event at Parc y Scarlets on 12th July, attended by the crème de la crème of Carmarthenshire’s business community.

Liz Brookes, the founder of the awards and director at Grapevine Event Management, expressed her enthusiasm about the high quality of entries received so far. “We are thrilled with the response and the calibre of organisations that have entered. This is the final call for entries; it’s time to ensure your business and its contributions are recognised,” she stated.

Rupert Moon, chair of the judges, highlighted the significance of the awards in promoting local businesses. “Carmarthenshire boasts a range of fantastic businesses. These awards are not just a celebration but a platform to highlight significant achievements in innovation, sustainability, growth, and export success among others,” Moon commented.

Support for the event is strong, with notable local companies such as Castell Howell Ltd leading as headline sponsors. “Supporting local business is essential for Carmarthenshire’s prosperity. These awards are a fantastic opportunity for businesses to gain the recognition they deserve,” said Martin Jones, Director of Castell Howell.

Additional sponsors include Swansea Building Society, Dunbia, Azets, JCP Solicitors, JG HR Solutions Ltd, Business News Wales, and Stills, all contributing to the event’s success.

For more information on how to enter the Carmarthenshire Business Awards, or to register before the 17th May deadline, please visit https://carmsbusinessawards.com/.