25th March 2022
Bite-sized business news from the UK and beyond
Good morning It’s a story of foes becoming friends. In a surprising move yesterday, Uber announced that it would start listing New York yellow cabs on its app. The partnership represents a dramatic shift after years of hostility between cab drivers and the ride-sharing industry. But the deal will be beneficial for both sides. Uber is facing driver shortages and New York taxis have struggled to compete with ride-hailing apps.
Today's stories
Spring Statement aftermath
Apple buys UK credit scoring startup
ECONOMYSpring statement aftermath
What’s going on?
The chancellor’s Spring Statement won’t do enough to protect low and middle income earners meaning 1.3m households will be pushed into poverty, according to analysis by the Resolution Foundation, an independent economic thinktank.
Why is this important?
The fallout from Wednesday’s Spring Statement continued as analysis of the government’s tax and spending plans revealed which groups in society would be better or worse off.The Foundation’s report was aptly named ‘Inflation Nation’ as it predicts that 40-year-high consumer prices will undermine the UK’s economic recovery from the pandemic.Real wages – which take into account the 9% forecast inflation - are predicted to fall 4% during this year. This along with the increased taxation from National Insurance increases, means that household incomes will stagnate in the years to come.To put that into context by 2027, for the average household real wages will have grown by just £18 a week since the global financial crisis in 2008, compared to £240 a week if they had grown in line with the pre-financial crisis trend.The Foundation said the £18bn worth of policies announced in the Spring Statement, like raising the National Insurance threshold and a 5p cut to fuel duty rates, were poorly targeted and won’t help those most in need.Only a third of the support packages will go to the bottom half of the income distribution. Households in the top half will gain an average of £475, compared to just £136 for the poorest fifth of households.
Zooming out
The chancellor has defended his plans saying that he can’t solve every problem but believes that the policies will help the lowest income households.But with uncertainties remaining over how the war in Ukraine will impact the global economy, especially energy prices, household finances could be squeezed even further which we will only add pressure on the government to help more.
Other stories to keep you in the loop
More sanctions: UK announces 65 new Russian sanctions
Gold crackdown: West restricts Russia's use of gold
Closing down: Lloyds Bank to close 60 more branches across UK
Streaming wars: YouTube adds 4,000 free TV shows to its service
Overboard: P&O Ferries boss admits firm broke law by sacking staff without consultation
High street headaches: Next trims profit target as Ukraine war and inflation cloud outlook
Unhealthy debt: Holland & Barrett struggles to pay interest on €415mn loan
Finish line in sight: Two favourite bidders emerge in race for Chelsea
FINTECHApple buys UK credit scoring startup
Stat of the day
More than half of British adults don’t have a valid will, with this rising to 79% for under 35s
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