THE DAILY BRIEFING
SPENDING SURGE Consumer spending on essentials saw its biggest rise in 20 months, according to a report. A rise in spending on food and drink has driven essential spending to its strongest level of growth since February 2014, the latest Lloyds Bank spending Power Report said. overall essential spending grew by 1pc last month, the third consecutive month of positive growth.
ENERGY COSTS A small energy supplier has warned that it may have to increase prices for many small businesses. Yu Energy claims it has seen a rise in wholesale costs of 30pc to 40pc in the past 12 months. The warning on costs come after budget rival GB Energy blamed wholesale price spikes when it went bust in November, leaving 160,000 customers in limbo as they wait to be transferred to a new firm.
TAX CENTRES The taxman has signed a lease on a 107,000 sq ft office in Bristol as part of its plan to create more regional centres. HM Revenue & Customs is currently closing a number of regional tax offices, but also trying to create more help centres in large cities. It is understood that offices in Edinburgh, Cardiff, Belfast and Liverpool will be agreed next year.
NEW ROLE New Look has appointed interim chief financial officer Richard Collyer to the role on a permanent basis. The chain, which is the UK’s number one retailer for women aged under 35, is currently looking to expand. It has 850 stores, comprising 584 in the UK and a further 266 globally – and in total serves customers in 120 countries.
SAUSAGE WARNING sausage maker Cranswick has warned that shops and producers will soon have to start passing along food price increases to consumers. A Bank of England report recently found that despite the fall in the pound that had pushed up the price of imports, a supermarket price war had kept down prices for shoppers. However, Adam Couch, boss of Cranswick, has said: ‘We absorb price increases, the farmers absorb it, the retailers absorb it, but eventually the consumer will have to.’
CARD FRENZY British consumers send more greetings cards than any other country, according to the boss of high street retailer Paperchase. Industry figures show that the total amount spent on greetings cards around the globe is £6bn – but £1.6bn of this is in the UK. A further £10bn is spent on gifts. Paperchase claims its main store on Tottenham Court Road in London gets 1.2m visitors a year.
WAGE DRIVE John Lewis and Waitrose boss sir Charlie Mayfield claims that the introduction of the new national living wage was spurring productivity in the UK. In an interview he told how the hourly rate of £7.20 for workers over 25 was also likely to lead to more automation as firms tried to keep costs down. Mayfield is currently running a £13m government project to increase productivity by improving the skills of managers.