Rising unemployment according to ONS as job market stalls
The UK's job market is experiencing a slowdown according to latest ONS statistics, with rising unemployment and a dip in the employment rate. Economists predict that this could prompt the Bank of England to cut interest rates in the summer.
Despite wage growth remaining above forecasts, there are concerns about potential inflationary pressure. Real wages have increased, partly attributed to government policies like the recent cut in National Insurance. However, a freeze in income tax thresholds may lead to higher tax payments for some as wages increase.
While the inflation rate has been easing, there are worries that persistently high wages could fuel inflation. The number of economically inactive individuals, particularly those aged 16 to 34, has risen, with factors like long-term sickness and long Covid contributing to this trend. Labor and opposition politicians criticize the government's handling of the situation, highlighting concerns about healthcare access and economic recovery.
Inflation reaches lowest level in two-and-a-half years.
Inflation in the UK has reached its lowest level in two-and-a-half years due to a slowdown in food price increases, according to the ONS’s Consumer Price Index. Despite an overall rise of 3.2% in the year to March, down from 3.4% the previous month, prices for certain items like meat, crumpets, chocolate biscuits, furniture, and household goods have fallen.
However, petrol and diesel prices have increased. Although lower inflation suggests prices are rising less rapidly, they are still significantly higher than two years ago. Factors contributing to high inflation in recent years include soaring food and energy costs. While inflation has gradually decreased since its peak in late 2022, it remains a concern.
Economists expect the Bank of England to potentially cut interest rates this year, possibly as early as June, as inflation is expected to return to its 2% target. Despite Chancellor Jeremy Hunt's optimism about the UK economy, critics argue that working people will continue to feel financially strained due to high prices and increased mortgage bills. The Bank of England's decision on interest rates, upcoming in May, will be influenced by various economic factors, including wage growth and the trajectory of inflation.
UK government launches £1.3 million competition called the Transport Research and Innovation Grant (TRIG).
The UK government has launched a £1.3 million competition called the Transport Research and Innovation Grant (TRIG) to stimulate innovation, boost the economy, and enhance the transport sector.
Managed by Connected Places Catapult, the competition offers funding of up to £45,000 for organizations and academics with innovative ideas. Previous winners have made strides in improving rural connectivity, expanding 5G coverage at sea, utilizing AI for real-time transport insights, and trialing hydrogen for greener travel.
This year's competition seeks proposals in specific areas like local transport decarbonization and critical/emerging technologies. Applications are open until May 21, 2024, with categories including nation-specific transport solutions and maritime decarbonization. TRIG has a decade-long track record of funding over 400 projects, resulting in tangible benefits such as reducing train station overcrowding and deploying self-driving parcel delivery boats. Winners like RideTandem and Jet Connectivity have benefited from TRIG support, developing innovative solutions and growing their businesses.
CEOs of truck and bus companies in Europe unveil a manifesto advocating for zero-emission vehicles.
European lawmakers have approved ambitious CO2-reduction targets for trucks and buses by 2030, a move applauded by industry leaders. However, CEOs emphasize that addressing demand roadblocks is essential alongside regulating the supply side. They urge policymakers to create enabling conditions and a coherent regulatory framework to support the transition to zero-emission vehicles.
Challenges include the lack of infrastructure for charging and refilling hydrogen, as well as the need for incentives to narrow the cost gap between traditional and zero-emission vehicles. With trucks and buses being crucial to the EU economy and societal mobility, ACEA proposes a #FutureDriven Manifesto outlining actions poli
