Key points
- Inflation expected to fall to 3.5% on Wednesday
- A bacterial infection and gangsters: The story of olive oil's 110% price rise
- Why is Bitcoin down?
- Washing powder 'shrinkflation' exposed by shopper
- Japan raises interest rates for first time in 17 years
- Santander offers £185 to bank switchers - as Britons flooded with offers
- Basically... What is stamp duty and when is it paid?
- Special report:The town that ran out of homes
Inflation expected to fall to 3.5% on Wednesday
UK inflation is expected to come in at 3.5% on Wednesday - down from 4%.
Although forecasts have been wrong consistently for more than a year, in recent months they've not been too far off - and the narrative for some time now has been that inflation would start to fall again come February (it's these figures we'll hear at 7am on Wednesday).
A survey of economists by Bloomberg came up with the 3.5% forecast.
"Cooling food and goods inflation will help drive the rate lower before a plunge in energy bills triggers a more marked step down in April, when economists expect it to dip below the BOE's 2% target," said Bloomberg.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said:''We're on a downwards escalator, with another drop in inflation expected, and an accelerated move lower forecast for the months to come.
"The Office of Budget Responsibility, the government's independent forecaster, reckons inflation will hit the Bank's 2% target this quarter.
"However, this could be a short-lived dip, and prices could take off again. Potentially inflationary pressures ahead include the ongoing fight for talent, higher shipping costs due to Red Sea disruption, and the increase in the minimum wage and business rates."
A drop in the inflation figure could influence how soon we get an interest rate cut - as rates are kept high in order to tame inflation by squeezing the economy.
The next Bank of England decision is on Thursday - when rates are almost certain to be held at a 16-year high of 5.25%.
Markets currently expect a first cut in June or August.
"They will want more evidence that wage growth will ramp down further before they budge and bring in a rate cut," said Ms Streeter.
Wage growth came in at 6.1% in the three months through to January and further declines are expected in the coming months.
However, a hike to the minimum wage in April could put upward pressure on inflation.
Asda gives its staff a 8.4% pay rise - how do the other supermarkets compare?
Asda says it will become the "highest-paying traditional supermarket" after announcing an 8.4% pay rise.
Staff will be paid £12.04 an hour - up from £11.11 - from July.
The rate will initially go up to £11.44 on 1 April to meet national minimum wage requirements.
It will then rise to £12.04 on 1 July, with rates for staff at branches inside the M25 reaching £13.21.
The supermarket said: "This represents an 8.4% increase in pay and a total investment of £150m in colleague pay this year, which makes Asda the highest-paying traditional supermarket."
It does not take into account Aldi, however, which will pay its staff £12.40 from 1 June.
The UK's traditional supermarkets are generally classed as Asda, Tesco, Sainsbury's and Morrisons, despite Aldi becoming the fourth biggest retailer in 2022.
How do the other supermarkets compare?
- Aldiannounced a raise from£12 to £12.40 from 1 June. Staff inside the M25 will get £13.65, up from£13.55;
- Tesco staffwill get a 9.1% pay rise from £11.02 to £12.02 and inside the M25 to £13.15 from 28 April;
- Sainsbury'sstaff from this month are paid £12, up from £11, and £13.15 in London;
- Morrisonsrose hourly pay in October to the national living wage of £10.42. It said at the time that pay would move to at least the new living wage of £11.44,irrespective of age, on 1 April if union pay negotiations are ongoing;
- Lidlincreased pay on 1 March from £11.40 to £12, rising to £13 with length of service. Inside the M25, pay rose from £12.85 to £13.55 (£13.85 for length of service);
- Waitrosesaid this month that minimum pay would be £11.55 across the UK and £12.89 in London. The current rate is £10.70 on average.
TSB Bank increases fixed rates by up to 0.25%
TSB Bank has announced it is increasing fixed mortgage rates by up to 0.25% across its residential, product transfer and borrowing ranges.
The changes come in tomorrow, ahead of the Bank of England's latest base rate decision on Thursday (when the central rate is expected to be held at 5.25%).
Commenting on the move, Ken James, director at Contractor Mortgage Services, told the news agency Newspage that it was "hard to know" if this increase reflects TSB's thoughts on the inflation data that will be published tomorrow (if inflation is higher than expected, interest rates could be held at their 16-year high for longer) .
"Let's hope the inflation data tomorrow swings the pendulum back in favour of cuts rather than more increases as it's starting to feel like the walls are closing in," he said.
AndStephen Perkins, managing director at Yellow Brick, said further rate increases from TSB today on the back of Nationwide increasing yesterday showed "lenders are not exactly brimming with confidence".
Hundreds of jobs at risk as Ted Baker calls in administrators
Hundreds of high street jobs are at risk after Ted Baker's owner moved to push its British operations into administration.
Sky News has learnt that No Ordinary Designer Label, which is owned by Authentic Brands Group (ABG) and trades under the Ted Baker brand, filed a notice of intention to appoint Teneo Financial Advisory as administrators on Tuesday.
The move is expected to result in store closures and job losses, although the scale of both was unclear.
It comes roughly 18 months after Ted Baker delisted from the London stock market after being bought by ABG for about £210m.
Read more here...
UK's best workplaces revealed - so does your company come out on top?
From perks to bonuses and wellbeing to friendliness, we all want a great workplace.
This year's Great Place to Work list surveyed more than 250,000 employees to find out which organisations deserved to be listed as the UK's best workplaces.
The global authority on workplace culture found that in the super large category - employing more than 1,001 people - the technology firm Cisco came out on top.
In all, 92% of employees said it was a great place to work, compared to 54% of employees at a typical UK company.
The company was followed by Hilton, which came in second, and DHL Express.
Here are the companies that came top in the other categories:
Large workplaces (200-1,000 employees)
1. ServiceNow
2. NVIDIA
3. Braze
Medium workplaces (51-200 employees)
1. Talos360
2. Hatmill
3. Morgan King Group
Small workplaces (10-50 employees)
1. Sumillion Ltd
2. Iconic Smiles
3. Moasure
What is stamp duty and when is it paid?
Basically, stamp duty is a tax you pay when you buy a home in England or Northern Ireland over a certain price (we'll outline what happens in Wales and Scotland below).
The tax was first introduced in England during the reign of William and Mary in 1694 as a temporary measure to help pay for the war against France, but has existed since then in one form or another.
As the name suggests, proof of payment of the tax back then came with a physical stamp on a document.
Stamp Duty Land Tax (SDLT) - the levy as we know it now - has been in place since 2003.
When is it paid?
You may be charged stamp duty if you buy a freehold, leasehold or shared ownership property or if you transfer land or property in exchange for payment.
The current thresholds for when you have to pay are:
- £250,000 for residential properties
- £425,000 for first-time buyers of a residential property worth £625,000 or less
- £150,000 for non-residential land and properties
How much will I pay?
Currently there's no charge on the first £250,000 you pay for your property.
On the next £675,000 (the portion from £250,001 to £925,000), the rate is 5%, then it's 10% from £925,001 to £1.5m and 12% for any portion above £1.5m.
Here's how the thresholds have changed over time...
Example
You're moving house, and the new home you're buying costs £350,000.
As you're not a first-time buyer, the thresholds mean you will pay stamp duty on £100,000 of the total cost. At the 5% rate, the amount you owe will be £5,000.
As we mentioned above, first-time buyers can claim a discount on stamp duty as long as their home costs £625,000 or less, and won't have to pay anything on the first £450,000 of their purchase.
You typically have 14 days to file your stamp duty return and pay any tax owed.
If the return is not received within the two-week period, you may face extra penalties and added interest from HM Revenue and Customs.
What if I'm buying additional properties?
If the property you're buying won't be the only home you own, you'll usually have to pay an additional 3% on top of the existing SDLT rates.
I'm buying a non-residential property - what happens then?
You still have to pay stamp duty when buying non-residential property, such as shops or retail units, offices or pieces of land.
There's no tax to pay on the first £150,000 of your purchase, but then similarly to residential buys, the amount you owe increases in thresholds.
You'll have to pay 2% of any purchase price above £150,000 and up to £250,000, while any remaining amount over this threshold will attract a 5% tax.
Why is stamp duty unpopular?
Along with inheritance tax, stamp duty is one of the most unpopular taxes in the country.
Many economists see it as a deterrence for people to move home - including older people wanting to downsize - leading to a "gummed-up" housing market. Former housing secretary Robert Jenrick has previously described it as a "terrible tax".
It also disproportionately impacts people in the South East and London where homes are more expensive.
An important note...
The stamp duty thresholds in place for residential purchases at the moment are only temporary, having been increased by former chancellor Kwasi Kwarteng in his 2022 "mini-budget".
Jeremy Hunt said he will "sunset the measure" from 31 March 2025, when 0% thresholds will return to their previous levels of £125,000 for home movers and £300,000 for first-time buyers.
What about Wales and Scotland?
In Wales, you must pay Land Transition Tax and the threshold is:
- £225,000 for residential properties (if you do not own other property)
£225,000 for non-residential land and property
In Scotland, there'sLand and Buildings Transaction Tax.
The rate increases with the property's purchase price. Buyers pay 2% between £145,000 and £250,000, 5% on anything between £250,000 and £350,000, 10% on anything between £350,000 and £750,000, and 12% on anything over that.
Read others in our Basically... series:
Tesco loses appeal in trademark row with Lidl
Tesco has lost an appeal against a ruling that it infringed Lidl's trademark over the use of a yellow circle against a blue background in its Clubcard branding.
Britain's biggest retailer was sued by the German supermarket in 2020 after it adopted its well-known discount scheme branding.
Last year, the High Court ruled Tesco had taken "unfair advantage" of Lidl's distinctive reputation for low prices.
Tesco sought to overturn that ruling, but the Court of Appeal has today dismissed its request.
It did, however, uphold Tesco's appeal against a finding that it infringed Lidl's copyright.
Reacting to the result, Lidl said the supermarket had been "deceiving" its customers and called for it to change the Clubcard logo.
"Last year, the High Court ruled that Tesco's Clubcard logo was copied from ours and infringed our trademark rights, allowing them to unfairly benefit from our longstanding reputation for value while misleading its customers," a spokesperson said.
"Despite this, Tesco prolonged the dispute by appealing, deceiving customers for another year.
"We expect Tesco now to respect the court's decision and change its Clubcard logo to one that is not designed to look like ours."
Fairy 'reduces how much powder you should put in wash' in apparent example of shrinkflation
A savvy shopper appears to have uncovered a new example of shrinkflation - and it's not just the product size that's changed.
Professor Cath Noakes, who works at the University of Leeds, took a closer look at an XXL pack of Fairy Non-Bio.
One weighed 4,225g, the other 3,900g - yet both claimed to offer 65 washes.
The solution to this maths conundrum, Prof Noakes's tweet suggests, is that we now only need 85ml for a wash - instead of 95ml.
She looked at the formula and reports it was unchanged.
Procter Gamble has not yet responded to a request for comment.
It comes as Unilever, Arla and Kraft Heinz will all give evidence to the Environment, Food and Rural Affairs committee of MPs this afternoon about the impact of inflation on costs and how far companies are employing the practice of shrinkflation.
Unilever shares spike as ice cream business (including Magnum and Ben & Jerry's) to be spun off as part of cost cutting
ByJames Sillars, business reporter
The FTSE 100 is off to a tentative start, rising eight points to stand at 7,730.
The tiny shift, however, masks some fairly hefty news for the markets to grapple.
Not least is the end of the eight-year era of negative interest rates in Japan.
The country is, however, keeping elements of its stimulus programme on the table after a decades-long fight to bolster economic growth - hence why reaction in Japan and elsewhere so far has been limited.
Domestically, Unilever gained more than 5% in early deals after it announced a vast cost-cutting programme and plan to spin off its extensive ice cream business.
That includes brands such as Magnum, Ben & Jerry's and Cornetto.
A company not feeling such love was DFS Furniture.
Its stock lost more than 10% after its latest guidance that included an expected £4m annual profit deferral should disruption to shipping in the Red Sea continue to the year end.
Japan hikes interest rates for first time in 17 years
The Bank of Japan has hiked interest rates for the first time in17 years.
The move from -0.1% to a range of 0%-0.1% ends eight years of negative rates aimed at stimulating growth.
Analysts expect it will keep ratesstuck around zero for some time as a fragile economic recoveryforces it to go slow on any further rise in borrowing costs.
Read our full story here...
