Business news in brief
Private tenants ‘spending third of income on rent’
Nearly three in 10 renting households have had some difficulty in paying their housing costs, according to the 2018-19 English Housing Survey. This compares with 5 per cent of home owners with a mortgage who reported some difficulty paying their home loan. In London, more than a third (36 per cent) of renters reported some difficulty in paying their housing costs. The housing charity Shelter said the figures highlight the “bleak” situation many renters are in as they deal with the financial impact of the coronavirus pandemic. The 2018-19 survey found that, on average, private renters spent a third (33 per cent) of household income, including housing benefit, on rent, rising to two-fifths (40 per cent) for those renting privately in London. PA
Over 3,000 UK staff apply for redundancy at Rolls-Royce
More than 3,000 British workers have applied for redundancy at Rolls-Royce, with many leaving in the next two months, after the company announced a sweeping round of job cuts. The engine-maker said that around two-thirds of the workers will leave the business by the end of August. The news comes seven weeks after Rolls-Royce said it would slash 9,000 jobs across its global workforce, warning that factories in the UK were set to be the worst hit. The Derby-based maker of plane engines had already been facing problems before the coronavirus pandemic dealt a serious blow to the global economy. PA
Recruitment firms suffer plunge in income
Recruiters PageGroup and Robert Walters have revealed drastically reduced fee income in the UK and worldwide as lockdowns globally saw hiring grind to a halt. Britain was among the worst affected, with PageGroup revealing gross profits slumped 61.5 per cent between April and June, while Robert Walters saw a 34 per cent decline in the UK. PageGroup said it has axed 713 jobs since the start of the year as part of efforts to slash its cost base by up to a quarter, in response to the crisis, with 531 fee-earning roles going between April and June alone – mainly across the UK and Americas. PA
Housebuilders’ sales plummet
Persimmon and Bovis Homes owner Vistry Group have laid bare the toll taken on sales during the coronavirus lockdown, but cheered recovering demand amid cautious homebuyers. Charles Church builder Persimmon saw new home legal completions plunge 35 per cent to 4,900 in the six months to 30 June, as revenues also dropped 32 per cent to £1.2bn. But the company said building sites are now back up to normal levels of production, while demand is beginning to bounce back, with net reservations surging around 30 per cent since its sales offices reopened in mid-May. PA
Drugs firms fined £2.3m over NHS medicine deal
The competition watchdog has slapped three drugs firms with £2.3m in fines after they took part in an illegal deal to benefit from a price hike on a life-saving NHS medicine. The Competition and Markets Authority said it has also secured £8m to go directly to the NHS after the companies admitted their actions. Pharmaceutical firms Amilco and Tiofarma agreed with rival Aspen that they would stay out of the market for fludrocortisone, a drug relied upon by thousands of patients, so that Aspen could remain the sole supplier in the UK. PA
Taxi drivers, shop workers and cleaners to be tested
Tens of thousands of people who work in high-risk occupations, such as taxi drivers, cleaners and shop workers, will be tested for Covid-19 as part of a new pilot, even though they have no symptoms, the government has announced. The Department of Health and Social Care said the testing, which begins immediately, would improve understanding of the prevalence of the virus among those who are judged to be at higher risk. Firms included in the trial include taxi firm Addison Lee, BT, services firm Mitie and pharmacy giant Boots. PA