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Business news - live: Pound hits five-month high despite looming Brexit delay, as UK house prices slump to worst October since financial crisis

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Ben Chapman
Monday 21 October 2019 13:22 BST
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Britain not resolving problems with economy that run deeper than Brexit, says former Bank of England chief Mervyn King

The pound hit a five-month high this morning as currency markets processed a weekend of political drama. Sterling initially slid 0.4 per cent against the dollar before recovering to rise above $1.30 in a volatile session after MPs backed an amendment to delay approving the Brexit deal.

UK property asking prices registered their worst October since 2008, according to new figures from Rightmove, in the latest signal that the property market is slowing down.

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Welcome to The Independent's rolling coverage of business and economics news. 

The pound has had a jumpy morning following a dramatic weekend in the House of Commons. Sterling is down 0.3 per cent against the dollar at $1.293.

A report from the International Energy Agency out today predicts global renewable power capacity will rise 50 per cent in five years, mainly thanks to more solar panels on buildings - but it still won't be enough to meet climate change targets.

ben.chapman21 October 2019 09:12
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UK property market misses out on 'Autumn bounce'

Property prices typically get a boost in October but this has been dampened by Brexit this year, according to Rightmove.

It found asking prices rose 0.6 per cent to £306,712 compared to the same time last year, the worst rise for this time of year since 2008.

Miles Shipside, Rightmove director and housing market analyst, comments: “In a strange Brexit-induced paradox, thousands of potential sellers are holding back compared to this time a year ago, though the number of buyers agreeing purchases is virtually the same.

Ironically, this means that those who are coming to market have a better chance of selling, so while some would-be sellers are being put off, it’s actually a good time to sell. Those who are ignoring the Brexit disruption have less competition from stay-away sellers, and their prospective buyers have less negotiating power, with a reduced choice of suitable alternatives.”

ben.chapman21 October 2019 09:22
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Small firms suffering 'unprecedented slump in confidence'

(Press Association) The Government is being urged to tackle an "unprecedented" slump in confidence among small businesses amid warnings that thousands are struggling to stay afloat.

The Federation of Small Businesses (FSB) said Chancellor Sajid Javid should bring forward "radical interventions" in next month's Budget to

address slowing economic growth.

The group called for a major reduction in business rates bills for small firms, saying thousands were being hit by "spiralling" operating costs.

The FSB recommended that the Retail Discount - which allows small retailers with rateable values of up to £51,000 to claim a 33 per cent discount on their rates bills - be increased to at least 50 per cent, made permanent and extended to small firms operating in other sectors, including manufacturing.

ben.chapman21 October 2019 09:24
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Seaside towns and cities dominate a list of areas with the highest number of people declared insolvent, figures show.

UHY Hacker Young said a rise in "staycations" at seaside resorts resulting from the falling value of the pound had done little to make up for the longer-term decline of ship-building, fishing and other traditional coastal industries.

Scarborough, Torbay, Plymouth, Hull and Blackpool all made the top 10 but a non-seaside city, Stoke, topped the ranking, with 51 personal insolvencies per 10,000 adults.

Peter Kubik, Partner at UHY Hacker Young, said: “People living in seaside towns continue to fall into bankruptcy as the coastal economy fails to keep up with the rest of the country.”

“Coastal towns such as Blackpool are clearly struggling to reinvent themselves and throw off their old image. Further investment is going to be needed to help these towns unlock their potenti

ben.chapman21 October 2019 09:46
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The pound is on the up, reversing this morning's falls:

ben.chapman21 October 2019 09:47
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Pound hits five-month high

ben.chapman21 October 2019 09:55
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UK household finances remain under pressure

Consumers remain negative about the future of their finances, despite a slight rise in optimism in October, according to a poll.

IHS Markit's UK Household Finance Index which measures households’ overall perceptions of financial wellbeing – edged up to 44.4 in October, from 43.1 in September.

Anything below 50 indicates households expect their situation to deteriorate.

Joe Hayes, Economist at IHS Markit, which compiles the survey, said:

"Real incomes have been rising for some time now in the UK, while labour market trends have been generally supportive of the UK consumer.

"However, latest survey results from UK households continue to show how economic and political uncertainty is holding back what could have been a more resilient growth period for the UK economy.

"Negative job security perceptions and a pessimistic financial health outlook have led UK households to delay spending, with major purchases suffering as a result."

ben.chapman21 October 2019 11:55
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Pound latest

$1.2986, up 0.12 per cent against the dollar

€1.1630, up 0.34 per cent against the euro

ben.chapman21 October 2019 12:00
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John Lewis and Waitrose to stop selling Christmas crackers containing plastic toys

The John Lewis Partnership, which includes John Lewis and Waitrose, has announced it will stop selling Christmas crackers containing plastic toys.

Instead, the crackers will be filled with toys made from recyclable materials, including metal and paper games.

The retailer has also vowed to remove plastic glitter from all of its own-brand gift wrapping, which includes glitter that might have been used to decorate crackers.

The company has already removed plastic wrapping from the majority of the greeting cards it sells, which the retailer claims has saved it from using eight tons of plastic each year.

Dan Cooper, partner and head Christmas buyer at John Lewis, said: “Reducing the amount of single-use plastic in products and packaging is really important to us and our customers.

ben.chapman21 October 2019 13:04
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Bad outsourcing deals have cost UK taxpayers an ‘inexcusable’ £14.3bn

Mistakes in the outsourcing of public services have cost UK taxpayers £14.3bn, according to analysis of official investigations that haven taken place in the past three years.

Independent think tank Reform has looked at 52 inquiries, conducted between June 2016 and July 2019, into outsourcing contracts initially valued at £71.1bn. It found that eventual costs were 20 per cent – or £14.3bn – higher, as the government had to cover delays and unplanned expenses, and missed out on income and profit from certain schemes. 

“Our public services cannot function without outsourcing. But when it goes wrong, it’s taxpayers who end up footing the bill,” said Dr Joshua Pritchard, senior researcher at Reform.

“The £14.3 billion wasted as a result of poorly drawn up and managed government contracts is inexcusable.”

The biggest example of overspending is Crossrail, according to Reform’s report published on Monday. Overruns and unexpected costs have cost the government an extra £2.8bn, while another £600m has been lost in foregone income from passengers due to delays in opening the line.

ben.chapman21 October 2019 13:20

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