Tag Archives: Brexit

U.K. set for Christmas travel disruption amid air and rail strikes

A train makes its way through the snow in Penistone, South Yorkshire, in March 2022. Passengers face Christmas travel disruption as workers strike over pay and working conditions.

Nurphoto | Nurphoto | Getty Images

LONDON — Passengers traveling into or around the U.K. over the holiday period face significant disruption due to strikes, with the government urging people to reconsider their plans.

Airport staff working for the U.K. Border Force are due to walk out from Dec. 23 to 26, and again from Dec. 28 to New Year’s Eve.

It will impact services at the U.K.’s busiest airport, London Heathrow, as well as London Gatwick, Manchester, Birmingham, Cardiff and Glasgow. The government is set to bring in soldiers to assist at passport control and with staffing, it confirmed Thursday, as between 2,000 and 3,000 workers plan to strike.

Suella Braverman, the U.K.’s interior minister, warned there would be “undeniable, serious disruption,” and said people planning to travel abroad should “think carefully about their plans because they may well be impacted.”

The affected airports are due to see 10,072 flight arrivals, totaling more than 2 million seats, between Dec. 23 and 31, according to aviation analytics firm Cirium. One million of those are into Heathrow.

The head of the Public and Commercial Services Union, Mark Serwotka, said the government could stop the strikes by meeting their demands, which include a pay raise, job security and no cuts to redundancy terms. Serwotka said some of its members were using food banks due to low pay.

Meanwhile the RMT, the rail workers’ union, has confirmed strikes will take place on Dec. 13 to 14, Dec. 16 to 17, and from 6 p.m. on Christmas Eve until Dec. 27, as well as on some days in January. Around half of railways are due to be shut on these dates.

Rail bosses have said people should only travel if necessary and check their train operator’s network for the status of their particular journey. Travel may also be disrupted on non-strike days due to trains being in the wrong location.

Some pub and restaurant traders have said they fear a reduction in trade during what is usually the busiest time of the year as a result.

The union is calling for a pay raise in line with inflation, a guarantee of no compulsory redundancies until April 2024, and changes to working conditions, which it says currently make train travel less safe.

December is set to see a wave of strike action in the U.K., including by postal and ambulance workers.

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Foreign students to reportedly be barred from UK unless studying at top universities

The U.K. government is looking to reduce migration, which could impact international students’ ability to study in Britain.

LONDON — Foreign students wanting to study in Britain may be turned away unless they have secured a place at a “top university,” according to a report by The Times newspaper.

Ministers were allegedly discussing how to reduce flows to the U.K. after record levels of net migration were reported on Thursday. 

According to the report, there will also be restrictions on how many family members the students are able to bring into the country with them. The rules will also only apply to foreign students who aren’t already living in the U.K.

Roughly 1.1 million people arrived in the U.K. in the year to June, with around 560,000 emigrating in the same period, leaving net migration at a record 504,000 people, according to the Office for National Statistics on Thursday.

The reported plans to deter foreign students from studying in Britain seem to go against the government’s International Growth Strategy from 2019, which was designed to increase the number of international students studying in the U.K. each year to 600,000 by 2030. 

That target was reached in the 2020/21 academic year when more than 605,000 non-U.K. students enrolled in higher education, according to the Higher Education Statistics Agency.

The strategy was originally put in place to “support the UK education sector to access global opportunities,” according to the government website.

A representative for the Home Office said there would be no comment on the “speculation” around the idea that foreign students may be prevented from entering the U.K.

It did, however, provide a statement from Interior Minister Suella Braverman, who said it was “understandable” record numbers of people travelled to the U.K. in light of the war in Ukraine, the evacuation in Afghanistan and the crackdown on rights in Hong Kong, but that the British public “rightly expect” migration to be reduced over time.

“This level of migration has put pressure on accommodation and housing supply, health, education and other public services. We must ensure we have a sustainable, balanced and controlled approach which is why we continue to keep our immigration policies under review,” Braverman said in the statement.

“My priority remains tackling the rise in dangerous and illegal crossings and stopping the abuse of our system. It is vital we restore public confidence and take back control of our borders,” she wrote.

The Conservative government has launched a series of initiatives after pledging to reduce net migration to the U.K. in its 2019 manifesto, including its controversial plans to deport migrants to Rwanda and deals with France to target small boat crossings.

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Sunak’s wealth and right-wing politics mean he is far from representative, British Asians say


London
CNN
 — 

Orange and pink fireworks colored the skies over south London on Monday, as members of the local South Asian community celebrated Diwali.

This year, the holiday aligned with Rishi Sunak, 42, becoming Britain’s first prime minister of Indian descent, as Hindus like him celebrated the festival of lights.

Sunak’s rise to power has split opinion among South Asians in the UK. Some believe his historic appointment is a moment of pride and sign of social progress in Britain, while others point to his immense wealth, privately educated background and adoption of hard right-wing policies.

Evidence of this wide range of views was clear when CNN spoke to South Asians in the London neighborhood of Tooting – home to a bustling migrant community within the British capital.

Flamboyant fabric shops, places of worship and food vendors offering syrupy Indian desserts alongside fresh fruits and vegetables line the streets, with family-run convenience stores dotting nearly every corner.

The London suburb is steeped in the richly diverse heritage of its residents, where people of color comprise over half of the population, according to the 2011 UK census.

The same data found that nearly 30% of people in Tooting identify as “Asian” or “Asian British,” and after English, Urdu and Gujarati are among the most common languages spoken.

“I think it’s a good thing and especially auspicious on the day of Diwali, for him to be appointed,” Raj Singh, a Punjabi-Sikh member of the Khalsa Centre, a local Sikh temple, told CNN.

“It is a sign of progress, but only at the top. Rishi Sunak comes from a very privileged background,” the 58-year-old solicitor said, his glasses tucked behind his bright orange turban.

Singh said he believed Sunak’s ascent is a sign that only South Asian politicians with immense social and economic privilege can “break the glass ceiling.”

Earlier this year, Sunak and his wife Akshata Murty, the daughter of an Indian billionaire, appeared on the Sunday Times Rich List of the UK’s 250 wealthiest people. The newspaper estimated their joint net worth at £730 million ($826 million).

Sunak received a flurry of congratulations from other politicians of South Asian heritage, including former Conservative cabinet minister Sajid Javid and London Mayor Sadiq Khan, who is in the opposition Labour Party. Indian Prime Minister Narendra Modi also sent Sunak “special Diwali wishes,” calling him a “bridge” between the two countries.

Outside the capital, Sanjay Chandarana, who heads a Hindu temple in Southampton, southern England, co-founded by Sunak’s grandparents in 1971, told CNN that Sunak’s elevation was “a Barack Obama moment” for the UK, in a nod to America’s first Black president.

“I think it’s something of importance to the South Asian community … seeing that he is the first South Asian prime minister of the UK. It’s something that I think all South Asians should be proud of,” Irtaza Nasir, a 24-year-old restaurant director in Tooting, said. “I never thought this day would come.”

Anil Shah, a garrulous 75-year-old Hindu Gujarati shopkeeper, said Sunak’s leadership “proves that we have Indians who are clever enough to do the job.”

However, Nilufar Ahmed, a psychologist at the University of Bristol in western England, said Sunak’s leadership is “nuanced and complex,” and cautioned the limits of racial representation at the highest rungs of British politics.

“I think that there was something quite lovely about his appointment coming alongside Diwali. I think that was really meaningful for many South Asians to have that,” she said.

“But I also think that it’s too simplistic to see Rishi Sunak as symbolic of a South Asian community in the UK. This is a man that has had lots of privilege and so he isn’t as representative as some of the discourse around representation is presenting him to be.”

Ahmed said she remains cynical about comparisons between Sunak and Obama’s premiership, citing the absence of a mandate from the general population in Britain.

Sunak was appointed prime minister, replacing Liz Truss, after his lone remaining rival Penny Mordaunt dropped out of the Conservative Party leadership contest. He is the third British prime minister in seven weeks, with his premiership sparking calls from across the political spectrum for a general election.

“Rishi Sunak was not even elected by his own party, let alone by the UK population. And so there will be a resistance in the population against Sunak being appointed. He will not be seen as somebody who perhaps represents the membership or the voters of the Conservative Party,” Ahmed commented.

She added that his premiership could “play out in quite worrying ways,” citing a viral video in which a Conservative party member launched racist criticism against Sunak and told LBC Radio that he “doesn’t love England” and “isn’t even British in most people’s opinion.”

Sunak was born in the coastal city of Southampton and is a British citizen.

For Lubeena Yar, a 56-year-old entrepreneur based in Tooting, Sunak’s appointment “was circumstantial.”

“Conservatives are Conservatives. I don’t think it really matters what color their skin is,” the 56-year-old reflected as she sat on a plush pink chair inside her Pakistani clothes store.

Yar said she did not align with Sunak’s Conservative Party values, but added that she identified with the sacrifices his parents made in migrating to the UK from East Africa in the 1960s.

She recalled that when her parents first came from Pakistan to the UK in the same period, her father was turned away from homeowning opportunities because racist neighbors would say they did not want a person of color living on their street.

“I’ve grown up in that era. And, you know, I remember what my life was or what my parents had to sacrifice so we could get a good education, get our degrees and do what we wanted to. Our parents weren’t from that privileged background, but they made it for us.”

Sunak has inherited myriad challenges as the UK’s new leader, namely the task of steering the country out of a grueling cost-of-living crisis and calming financial markets in the wake of Truss’ short and chaotic premiership.

However, Sunak is also partially responsible for the economic turmoil suffocating the UK.

While serving as the UK’s former finance minister under Boris Johnson’s government, he installed measures worth £400 billion ($452 billion) aimed at strengthening the economy, including a generous furlough scheme, business loans and concessions on eating in restaurants. But that stimulus came at a sizeable cost and left the government struggling to find savings.

He has pledged to bring “stability and unity” to the Conservatives by appealing to multiple factions of the party, which has seen deepening divisions since the 2016 Brexit vote.

He has historically voted to support stronger enforcement of immigration and asylum rules and opposed measures to prevent climate change and promote equality and human rights. Like his predecessor, Sunak promised a tough approach to illegal immigration and vowed to expand the government’s controversial Rwanda immigration policy.

Further north, in the Scottish city of Glasgow, Fariya Sharif, said she failed to see Sunak’s leadership as a sign of equality.

“Rishi Sunak’s appointment makes me feel deflated and devastated at the chaos of the Tories continuing to badly rule our country, especially another PM that wasn’t elected by everyday people,” the 30-year-old Muslim Pakistani chef said by email.

“I don’t see this as racial progress. I see this as tokenism from the Tories trying to push their agenda on wealthier immigrant communities … it encourages an environment where brown people are only accepted if they follow the same harsh rules on immigration and economics.”

Sunak’s premiership has sparked a debate among many British Asians that lies at the intersection of race, class and politics.

The new prime minister has entered Downing Street as one of its richest ever occupants, yet he has the task of leading a country where marginalized communities are falling deeper into poverty in the wake of the coronavirus pandemic.

During his time as chancellor of the exchequer, Sunak was criticized for proposing a negligible 1% pay rise to staff for Britain’s National Health Service, despite the institution crumbling under government cuts and staff shortages.

Rina Patel, a Hindu Gujarati doctor who works at St. Helier Hospital in south London, said she has “really mixed views” about Sunak’s premiership.

“In terms of representing people, I don’t feel that he can represent the poorest people in our society. And as a doctor in the NHS, I see some of the poorest people in our society that are struggling,” the 43-year-old said against the backdrop of a local jeweler.

“In terms of the fact that he is intelligent, has a finance background, I think he will do better than what’s gone before, but that’s no compliment,” Patel added. “I don’t think he represents me.”

“What I see in Rishi Sunak’s, first and foremost … is an incredibly privileged person with enormous wealth and with access to education and resources that the majority of South Asians in the UK do not have. And so, I have far more in common with working-class White politicians than I do with Rishi Sunak,” Ahmed mused.

Sunak may be the first British prime minister with Indian heritage, but his race alone does not qualify him to represent the diverse and nuanced views of the 4.2 million people with South Asian heritage who live in Britain today.

“Seeing someone brown becoming prime minister is something to be proud of, and yet it is also possible to vehemently disagree with the politics or the individual,” Jasvir Singh, a barrister and co-founder of South Asian Heritage Month, wrote by email.

“Politics is much, much more than just about color and race.”



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Boris Johnson pulls out of race to be leader of UK’s Conservative Party and next prime minister



CNN
 — 

UK former Prime Minister Boris Johnson has pulled out of the contest to become the next Conservative Party leader and therefore the next prime minister.

Johnson claimed to have garnered the support of 100 MPs – the minimum number required to clear the threshold to appear on the ballot for the Conservative Party membership – but declined to run, saying “this would simply not be the right thing to do” as “you can’t govern effectively unless you have a united party in Parliament,” according to the PA Media news agency.

His announcement comes after Britain’s former Finance Minister Rishi Sunak officially entered the race to lead the Conservative Party, his second attempt at the position this year.

Sunak has already collected the required 100 nominations from Tory party members in order to run. Sunak had attempted to become leader during the summer following the resignation of Johnson, but lost to Liz Truss who stepped down on Thursday.

A runoff between the two men could have proved divisive for the ruling Conservative party, not least because many of Johnson’s supporters blame Sunak’s resignation in July for sparking the downfall of his government. The Conservatives, in power for 12 years, are currently engulfed in turmoil following the resignations of both Johnson and Truss.

Jake Tapper on the lessons from UK’s recent political turmoil

The possible return of Johnson to the top job had split opinions within the Conservative Party, with many lawmakers horrified at the prospect of a second Johnson premiership. He resigned in July following a series of scandals.

The former PM is expected to appear in the next few weeks before the Commons Privileges Committee which is investigating whether he misled Parliament over the parties, which could potentially see him suspended or expelled as an MP.

Sunak declared on Sunday morning that he would be standing in the contest. In a tweet, he wrote, “The United Kingdom is a great country but we face a profound economic crisis. That’s why I am standing to be Leader of the Conservative Party and your next Prime Minister. I want to fix our economy, unite our Party and deliver for our country.”

After Johnson’s Sunday announcement that he would not seek the become the next Conservative Party leader, Sunak tweeted, “Boris Johnson delivered Brexit and the great vaccine roll-out. He led our country through some of the toughest challenges we have ever faced, and then took on Putin and his barbaric war in Ukraine. We will always be grateful to him for that.”

Sunak will be up against Leader of the House of Commons Penny Mordaunt, who said Sunday she regretted the so-called “mini budget” that led to economic turmoil in Britain and the resignation of Truss.

“I very much regret the mini-budget … I raised concerns even before I was in cabinet,” Mordant told the BBC in a Sunday interview, adding there were details about the budget “the cabinet was not aware of.”

The last time the Conservatives held a leadership race – following the demise of Johnson’s government – Truss came first, Sunak second and Mordaunt third.

Graham Brady, the Conservative official responsible for the process, has said any candidate must receive at least 100 nominations from the party’s MPs by 2 p.m. local time Monday.

Truss resigned on Thursday, just six weeks into her disastrous term that pitched Britain deep into political and economic turmoil. Her successor will be the fifth PM to lead the country since it voted for Brexit in 2016.

Amanpour reacts to Truss’ claim during resignation speech

Keir Starmer, leader of the main opposition Labour Party, renewed calls for a general election on Sunday, after claiming people are “fed up to the back teeth” with the Conservative leadership and the consequences of their government’s decisions.

“There is a choice to be made. We need a general election! Let the public into decide… Do they want to continue with this utter chaos, or do they want stability under a Labour government?” Starmer asked during a BBC interview.

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UK’s tax cut pivot down to politics not economy, analysts say

LONDON — The U.K. government’s reversal on scrapping the top rate of income tax is down to political optics and will not reassure market skittishness over its economic plan, analysts told CNBC Monday.

The tax cut, which Prime Minister Liz Truss was defending just hours before, would have abolished a 45% rate paid on annual income over £150,000 ($166,770).

Paul Dales, chief U.K. economist at Capital Economics, said it would have a limited impact on revenue.

“Of the £44 billion net loosening in fiscal policy by 2026/27 the Chancellor announced in the mini-budget, the 45p tax cut accounted for just £2 billion. So it is more politics than economics,” he said by email.

That was reflected in the statement released by Finance Minister Kwasi Kwarteng, who said in a statement it had become a “distraction from our overriding mission to tackle the challenges facing our economy”; and Conservative Member of Parliament Grant Shapps, who said it “jarred for people in a way which was unsustainable.”

The U.K. Treasury had previously confirmed the tax cut would lead to an average £10,000 saving for 660,000 people.

Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown, agreed.

”The U-turn only accounts for a small part of the equation in terms of the planned tax cuts, and was clearly made to limit further political fall out,” she told CNBC, adding that markets are still factoring in a benchmark interest rate rise to at least 5.5% next year.

“It is still likely to mean people on the lowest incomes will pick up the bulk of the cost of the cuts, with the government refusing to rule out that benefits will be hit,” she said.

Rate hike expectations on the Bank of England, which next meets Nov. 3, rose sharply after the budget announcement on Sep. 23, with the pound falling in value and the gilt market experiencing a historic sell-off.

“The greatest part of the borrowing that came from the 23 September mini-budget is still unfunded,” Jane Foley, senior FX strategist at Rabobank, told CNBC’s “Squawk Box Europe.”

It includes what is expected to be a package worth more than £100 billion over the next two years to support businesses and households with energy bills.

Despite speculation that the government will be looking at what else it might cut, its decisions may not be easy or popular, Foley said. Meanwhile, the Bank of England’s emergency asset-buying program, which has supported markets over the last week, would eventually end.

Kwarteng said Monday at the Conservative Party conference it would be looking to cut £18 billion in public services. He will deliver his main speech Monday afternoon.

Foley said: “If the markets don’t believe in the credibility of the government’s policy, gilts are still going to be very exposed and so is sterling. So, far from out of the woods, I would say.”

Sterling got a slight boost from the government’s tax cut pivot and was 0.3% higher against the dollar at $1.12 at 11:40 a.m. London time Monday. Gilt yields were lower, with the 10-year yield falling 2 basis points to 4.068%; still a level it was last at during the 2008 financial crisis.

Capital Economics’ Dales added: “This is one in a number of ways that the government is rowing back on its mini-budget. There has been lots of talk that government spending will be cut, perhaps significantly to balance the books.”

“That suggests fiscal policy might not be as expansive as we all thought, although the legacy of the mini-budget still appears to be higher interest rates.”

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Britain’s lurch to Reaganomics gets thumbs down from markets

Truss has now put the country on an economic road completely at odds with most, if not all, major global economies.

Hannah Mckay | Reuters

LONDON — New U.K. Prime Minister Liz Truss may have talked big on “trickle-down economics” during her campaign trail this summer, but no-one could have predicted the swathe of tax cuts unleashed just weeks into her Downing Street tenure.

Billed as a “mini-budget” by her Finance Minister Kwasi Kwarteng, Friday’s fiscal announcement was anything but with a volume of tax cuts not seen in Britain since 1972.

Truss — whose “Trussonomics” policy stance has been likened to that of her political idols Ronald Reagan and Margaret Thatcher — has now put the country on an economic road completely at odds with most, if not all, major global economies as inflation boils over and a cost-of-living crisis barrels into Europe.

It’s been seen, even by some of her advocates, as a political and economic gamble with Truss yet to face the wider British electorate in a nationwide vote — unlike her predecessor Boris Johnson.

Market players immediately predicted that Britain would have to scale up its bond issuance and significantly increase its debt load to pay for the cuts — not typical of the low-tax Conservative governments of the past.

U.K. bond markets went into a tailspin Friday as investors shunned the country’s assets. Yields (which move inversely to prices) on the 5-year gilt rose by half a percentage point — which Reuters reported was the largest one-day rise since at least 1991.

And with bonds tanking, sterling was also sent into freefall after hitting 37-year lows against the dollar in recent weeks. It ended Friday down nearly 3.6% against the greenback. On the week it lost 5% and is now down 27% since just before the 2016 Brexit vote.

Wall Street banks are now seriously considering a break lower to parity with the U.S. dollar — for the first time in history — and many commentators have likened the pound to an emergency market currency.

Left-leaning The Guardian newspaper called it “a budget for the rich” on its front page Saturday, while The Times called it a “great tax gamble.” The right-wing Daily Mail newspaper called it a “true Tory budget” while Kwarteng himself said it was a “very good day for the U.K.,” declining to comment on the currency moves.

ING analysts said in a research note that investors are worried that the U.K. Treasury has now effectively committed to open-ended borrowing for these tax cuts, and that the Bank of England will have to respond with more aggressive rate hikes.

“To us, the magnitude of the jump in gilt yields has more to do with a market that has become dysfunctional,” ING’s Senior Rates Strategist Antoine Bouvet and Global Head of Markets Chris Turner said in the note.

“A number of indicators … suggest that liquidity is drying up and market functioning is impaired. A signal from the BOE that it is willing to suspend gilt sales would go a long way to restoring market confidence, especially if it wants to maximise its chances of fighting inflation with conventional tools like interest rate hikes. The QT [quantitative tightening] battle, in short, is not one worth fighting for the BOE,” they added, referencing the Bank’s move to normalize its balance sheet after years of stimulus.

ING also noted that the U.K.’s long-term sovereign outlook is currently stable with the big three ratings agencies, but the “risk of a possible shift to a negative outlook” could come when they are reviewed (Oct. 21 and Dec. 9).

Deutsche Bank analysts said, meanwhile, that the “price of easy fiscal policy was laid bare by the market” on Friday.

“[Friday’s] market moves suggest that there may be a credibility gap,” Sanjay Raja, a senior economist at Deutsche Bank, said in a research note.

“A plan to get the public finances on a sustainable footing will be necessary but not sufficient for markets to regain confidence in an economy sporting large twin deficits [the U.K.’s fiscal and current account balances],” he added.

“Crucially, with fiscal policy shifting into easier territory, the onus may now fall on the Bank of England to stabilise the economy, with the MPC [Monetary Policy Committee] having more work to do to plug the gap between expansionary fiscal policy and tightening monetary policy.”

—CNBC’s Karen Gilchrist contributed to this article.

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Queen Elizabeth dead at 96 after more than 7 decades on throne

LONDON (AP) — Queen Elizabeth II, Britain’s longest-reigning monarch and a symbol of stability in a turbulent era that saw the decline of the British empire and disarray in her own family, died Thursday after 70 years on the throne. She was 96.

The palace announced she died at Balmoral Castle, her summer residence in Scotland, where members of the royal family had rushed to her side after her health took a turn for the worse.

A link to the almost-vanished generation that fought World War II, she was the only monarch most Britons have ever known.

Her 73-year-old son Prince Charles automatically became king and will be known as King Charles III, it was announced. British monarchs in the past have selected new names upon taking the throne. Charles’ second wife, Camilla, will be known as the Queen Consort.

A funeral was to be held after 10 days of official mourning.

The BBC played the national anthem, “God Save the Queen,” over a portrait of Elizabeth in full regalia as her death was announced, and the flag over Buckingham Palace was lowered to half-staff as the second Elizabethan age came to a close.

The impact of her loss will be huge and unpredictable, both for the nation and for the monarchy, an institution she helped stabilize and modernize across decades of enormous social change and family scandals, but whose relevance in the 21st century has often been called into question.

The public’s abiding affection for the queen has helped sustain support for the monarchy during the scandals. Charles is nowhere near as popular.

In a statement, Charles called his mother’s death “a moment of the greatest sadness for me and all members of my family,” adding: “I know her loss will be deeply felt throughout the country, the Realms and the Commonwealth, and by countless people around the world.”

The changing of the guard comes at a fraught moment for Britain, which has a brand-new prime minister and is grappling with an energy crisis, double-digit inflation, the war in Ukraine and the fallout from Brexit.

Prime Minister Liz Truss, appointed by the queen just 48 hours earlier, pronounced the country “devastated” and called Elizabeth “the rock on which modern Britain was built.”

British subjects outside Buckingham Palace wept when officials carried a notice confirming the queen’s death to the wrought-iron gates of the queen’s London home. Hundreds soon gathered in the rain, and mourners laid dozens of colorful bouquets at the gates.

“As a young person, this is a really huge moment,” said Romy McCarthy, 20. “It marks the end of an era, particularly as a woman. We had a woman who was in power as someone to look up to.”

World leaders extended condolences and paid tribute to the queen.

In Canada, where the British monarch is the country’s head of state, Prime Minister Justin Trudeau’s eyes were red with emotion as he saluted her “wisdom, compassion and warmth.” In India, once the “jewel in the crown” of the British empire, Prime Minister Narendra Modi tweeted: “She personified dignity and decency in public life. Pained by her demise.”

U.S. President Joe Biden called her a “stateswoman of unmatched dignity and constancy who deepened the bedrock alliance between the United Kingdom and the United States.”

Since Feb. 6, 1952, Elizabeth reigned over a Britain that rebuilt from a destructive and financially exhausting war and lost its empire; joined the European Union and then left it; and made the painful transition into the 21st century.

She endured through 15 prime ministers, from Winston Churchill to Truss, becoming an institution and an icon — a reassuring presence even for those who ignored or loathed the monarchy.

She became less visible in her final years as age and frailty curtailed many public appearances. But she remained firmly in control of the monarchy and at the center of national life as Britain celebrated her Platinum Jubilee with days of parties and pageants in June.

That same month she became the second longest-reigning monarch in history, behind 17th-century French King Louis XIV, who took the throne at age 4. On Tuesday, she presided at a ceremony at Balmoral Castle to accept the resignation of Boris Johnson as prime minister and appoint Truss as his successor.

When Elizabeth was 21, almost five years before she became queen, she promised the people of Britain and the Commonwealth that “my whole life, whether it be long or short, shall be devoted to your service.”

It was a promise she kept across more than seven decades.

Despite Britain’s complex and often fraught ties with its former colonies, Elizabeth was widely respected and remained head of state of more than a dozen countries, from Canada to Tuvalu. She headed the 54-nation Commonwealth, built around Britain and its former colonies.

Married for more than 73 years to Prince Philip, who died in 2021 at age 99, Elizabeth was matriarch to a royal family whose troubles were a subject of global fascination — amplified by fictionalized accounts such as the TV series “The Crown.” She is survived by four children, eight grandchildren and 12 great-grandchildren.

Through countless public events, she probably met more people than anyone in history. Her image, which adorned stamps, coins and banknotes, was among the most reproduced in the world.

But her inner life and opinions remained mostly an enigma. Of her personality, the public saw relatively little. A horse owner, she rarely seemed happier than during the Royal Ascot racing week. She never tired of the companionship of her beloved Welsh corgi dogs.

Elizabeth Alexandra Mary Windsor was born in London on April 21, 1926, the first child of the Duke and Duchess of York. She was not born to be queen — her father’s elder brother, Prince Edward, was destined for the crown, to be followed by any children he had.

But in 1936, when she was 10, Edward VIII abdicated to marry twice-divorced American Wallis Simpson, and Elizabeth’s father became King George VI.

Princess Margaret recalled asking her sister whether this meant that Elizabeth would one day be queen. “Yes, I suppose it does,” Margaret quoted Elizabeth as saying. “She didn’t mention it again.”

Elizabeth was barely in her teens when Britain went to war with Germany in 1939. While the king and queen stayed at Buckingham Palace during the Blitz and toured the bombed-out neighborhoods of London, Elizabeth and Margaret spent most of the war at Windsor Castle, west of the capital. Even there, 300 bombs fell in an adjacent park, and the princesses spent many nights in an underground shelter.

She made her first public broadcast in 1940 when she was 14, sending a wartime message to children evacuated to the countryside or overseas.

“We children at home are full of cheerfulness and courage,” she said with a blend of stoicism and hope that would echo throughout her reign. “We are trying to do all we can to help out gallant soldiers, sailors and airmen. And we are trying, too, to bear our own share of the danger and sadness of war. We know, every one of us, that in the end all will be well.”

In 1945, after months of campaigning for her parents’ permission to do something for the war effort, the heir to the throne became Second Subaltern Elizabeth Alexandra Mary Windsor in the Auxiliary Territorial Service. She enthusiastically learned to drive and service heavy vehicles.

On the night the war ended in Europe, May 8, 1945, she and Margaret managed to mingle, unrecognized, with celebrating crowds in London — “swept along on a tide of happiness and relief,” as she told the BBC decades later, describing it as “one of the most memorable nights of my life.”

At Westminster Abbey in November 1947 she married Royal Navy officer Philip Mountbatten, a prince of Greece and Denmark whom she had first met in 1939 when she was 13 and he 18. Postwar Britain was experiencing austerity and rationing, and so street decorations were limited and no public holiday was declared. But the bride was allowed 100 extra ration coupons for her trousseau.

The couple lived for a time in Malta, where Philip was stationed, and Elizabeth enjoyed an almost-normal life as a navy wife. The first of their four children, Prince Charles, was born in 1948. He was followed by Princess Anne in 1950, Prince Andrew in 1960, and Prince Edward in 1964.

In 1952, George VI died at 56 after years of ill health. Elizabeth, on a visit to Kenya, was told that she was now queen.

Her private secretary, Martin Charteris, later recalled finding the new monarch at her desk, “sitting erect, no tears, color up a little, fully accepting her destiny.”

“In a way, I didn’t have an apprenticeship,” Elizabeth reflected in a BBC documentary in 1992 that opened a rare view into her emotions. “My father died much too young, and so it was all a very sudden kind of taking on, and making the best job you can.”

Her coronation took place more than a year later, a grand spectacle at Westminster Abbey viewed by millions through the still-new medium of television.

Prime Minister Winston Churchill’s first reaction to the king’s death was to complain that the new queen was “only a child,” but he was won over within days and eventually became an ardent admirer.

In Britain’s constitutional monarchy, the queen is head of state but has little direct power; in her official actions she does what the government orders. However, she was not without influence. The queen, officially the head of the Church of England, once reportedly commented that there was nothing she could do legally to block the appointment of a bishop, “but I can always say that I should like more information. That is an indication that the prime minister will not miss.”

The extent of the monarch’s political influence occasionally sparked speculation — but not much criticism while Elizabeth was alive. The views of Charles, who has expressed strong opinions on everything from architecture to the environment, might prove more contentious.

She was obliged to meet weekly with the prime minister, and they generally found her well-informed, inquisitive and up to date. The one possible exception was Margaret Thatcher, with whom her relations were said to be cool, if not frosty, though neither woman ever commented.

The queen’s views in those private meetings became a subject of intense speculation and fertile ground for dramatists like Peter Morgan, author of the play “The Audience” and the hit TV series “The Crown.” Those semi-fictionalized accounts were the product of an era of declining deference and rising celebrity, when the royal family’s troubles became public property.

And there were plenty of troubles within the family, an institution known as “The Firm.” In Elizabeth’s first years on the throne, Princess Margaret provoked a national controversy through her romance with a divorced man.

In what the queen called the “annus horribilis” of 1992, her daughter, Princess Anne, was divorced, Prince Charles and Princess Diana separated, and so did her son Prince Andrew and his wife, Sarah. That was also the year Windsor Castle, a residence she far preferred to Buckingham Palace, was seriously damaged by fire.

The public split of Charles and Diana — “There were three of us in that marriage,” Diana said of her husband’s relationship with Camilla Parker Bowles — was followed by the shock of Diana’s death in a Paris car crash in 1997. For once, the queen appeared out of step with her people.

Amid unprecedented public mourning, Elizabeth’s failure to make a public show of grief appeared to many to be unfeeling. After several days, she finally made a televised address to the nation.

The dent in her popularity was brief. She was by now a sort of national grandmother, with a stern gaze and a twinkling smile.

Despite being one of the world’s wealthiest people, Elizabeth had a reputation for frugality and common sense. She turned off lights in empty rooms, and didn’t flinch from strangling pheasants.

A newspaper reporter who went undercover to work as a palace footman reinforced that down-to-earth image, capturing pictures of the royal Tupperware on the breakfast table and a rubber duck in the bath.

Her sangfroid was not dented when a young man aimed a pistol at her and fired six blanks as she rode by on a horse in 1981, nor when she discovered a disturbed intruder sitting on her bed in Buckingham Palace in 1982.

The image of the queen as an exemplar of ordinary British decency was satirized by the magazine Private Eye, which called her Brenda, apparently because it sounded working-class. Anti-monarchists dubbed her “Mrs. Windsor.” But the republican cause gained limited traction while the queen was alive.

On her Golden Jubilee in 2002, she said the country could “look back with measured pride on the history of the last 50 years.”

“It has been a pretty remarkable 50 years by any standards,” she said in a speech. “There have been ups and downs, but anyone who can remember what things were like after those six long years of war appreciates what immense changes have been achieved since then.”

A reassuring presence at home, she was also an emblem of Britain abroad — a form of soft power, consistently respected whatever the vagaries of the country’s political leaders on the world stage. It felt only fitting that she attended the opening of the 2012 London Olympics alongside another icon, James Bond. Through some movie magic, she appeared to parachute into the Olympic Stadium.

In 2015, she overtook her great-great-grandmother Queen Victoria’s reign of 63 years, seven months and two days to become the longest-serving monarch in British history. She kept working into her 10th decade, though Prince Charles and his elder son, Prince William, increasingly took over the visits, ribbon-cuttings and investitures that form the bulk of royal duties.

The loss of Philip in 2021 was a heavy blow, as she poignantly sat alone at his funeral in the chapel at Windsor Castle because of coronavirus restrictions.

And the family troubles continued. Her son Prince Andrew was entangled in the sordid tale of sex offender businessman Jeffrey Epstein, an American businessman who had been a friend. Andrew denied accusations that he had sex with one of the women who said she was trafficked by Epstein.

The queen’s grandson Prince Harry walked away from Britain and his royal duties after marrying American TV actress Meghan Markle, who is biracial, in 2018. He alleged in an interview that some in the family -– but pointedly not the queen -– had been less than welcoming to his wife.

She enjoyed robust health well into her 90s, although she used a cane in an appearance after Philip’s death. Months ago, she told guests at a reception “as you can see, I can’t move.” The palace, tight-lipped about details, said the queen was experiencing “episodic mobility issues.”

She held virtual meetings with diplomats and politicians from Windsor Castle, but public appearances grew rarer.

Meanwhile, she took steps to prepare for the transition to come. In February, the queen announced that she wanted Camilla to be known as “Queen Consort” when “in the fullness of time” her son became king. It removed a question mark over the role of the woman some blamed for the breakup of Charles’ marriage to Princess Diana in the 1990s.

May brought another symbolic moment, when she asked Charles to stand in for her and read the Queen’s Speech at the State Opening of Parliament, one of the monarch’s most central constitutional duties.

Seven decades after World War II, Elizabeth was again at the center of the national mood amid the uncertainty and loss of COVID 19 — a disease she came through herself in February.

In April 2020 — with the country in lockdown and Prime Minister Boris Johnson hospitalized with the virus — she made a rare video address, urging people to stick together.

She summoned the spirit of World War II, that vital time in her life, and the nation’s, by echoing Vera Lynn’s wartime anthem “We’ll Meet Again.”

“We should take comfort that while we may have more still to endure, better days will return. We will be with our friends again. We will be with our families again. We will meet again,” she said.

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The late Associated Press writers Gregory Katz and Robert Barr contributed material to this report.

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Follow AP coverage of Queen Elizabeth II at https://apnews.com/hub/queen-elizabeth-ii

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Liz Truss becomes Britain’s new prime minister

LONDON (AP) — Liz Truss became U.K. prime minister on Tuesday and immediately confronted the enormous task ahead of her amid increasing pressure to curb soaring prices, ease labor unrest and fix a health care system burdened by long waiting lists and staff shortages.

At the top of her inbox is the energy crisis triggered by Russia’s invasion of Ukraine, which threatens to push energy bills to unaffordable levels, shuttering businesses and leaving the nation’s poorest people shivering in icy homes this winter.

Truss, who refused to spell out her energy strategy during the two-month campaign to succeed Boris Johnson, now plans to cap energy bills at a cost to taxpayers of as much as 100 billion pounds ($116 billion), British news media reported Tuesday. She is expected to unveil her plan on Thursday.

“You must know about the cost of living crisis in England, which is really quite bad at the moment,” said Rebecca Macdougal, 55, who works in law enforcement, outside the Houses of Parliament.

“She’s making promises for that, as she says she’s going to deliver, deliver, deliver. But we will see in, hopefully, the next few weeks there’ll be some announcements which will help the normal working person.”

Truss, 47, took office Tuesday afternoon at Balmoral Castle in Scotland, when Queen Elizabeth II formally asked her to form a new government in a carefully choreographed ceremony dictated by centuries of tradition. Johnson, who announced his intention to step down two months ago, formally resigned during his own audience with the queen a short time earlier.

It was the first time in the queen’s 70-year reign that the handover of power took place at Balmoral, rather than Buckingham Palace in London. The ceremony was moved to Scotland to provide certainty about the schedule, because the 96-year-old queen has experienced problems getting around that have forced palace officials to make decisions about her travel on a day-to-day basis.

Truss became prime minister a day after the ruling Conservative Party chose her as its leader in an election where the party’s 172,000 dues-paying members were the only voters. As party leader, Truss automatically became prime minister without the need for a general election because the Conservatives still have a majority in the House of Commons.

But as a national leader selected by less than 0.5% of British adults, Truss is under pressure to show quick results.

Ed Davey, leader of the opposition Liberal Democrats, on Tuesday called for an early election in October — something that Truss and the Conservative Party are highly unlikely to do since the Tories are slumping in the polls.

“I’ve listened to Liz Truss during the Tory leadership (campaign) and I was looking for a plan to help people with their skyrocketing energy bills, with the NHS crisis and so on, and I heard no plan at all,” he told the BBC. “Given people are really worried, given people are losing sleep over their energy bills, businesses aren’t investing because of the crisis, I think that’s really wrong.”

Johnson took note of the strains facing Britain as he left the prime minister’s official residence at No. 10 Downing Street for the last time, saying his policies had left the government with the economic strength to help people weather the energy crisis.

Always colorful, he thinly disguised his bitterness at being forced out.

“I am like one of those booster rockets that has fulfilled its function,” Johnson said. “I will now be gently re-entering the atmosphere and splashing down invisibly in some remote and obscure corner of the Pacific.”

Many observers expect Johnson to attempt a political comeback, though he was cyrptic about his plans. Instead, the man who studied classics at the University of Oxford backed Truss and compared himself to Cincinnatus, the Roman dictator who relinquished power and returned to his farm to live in peace.

“Like Cincinnatus, I am returning to my plow,” he said.

Johnson, 58, became prime minister three years ago after his predecessor, Theresa May, failed to deliver Britain’s departure from the European Union. Johnson later won an 80-seat majority in Parliament with the promise to “get Brexit done.”

But he was forced out of office by a series of scandals that culminated in the resignation of dozens of Cabinet secretaries and lower-level officials in early July. That paved the way for Truss, a one-time accountant who was first elected to the House of Commons in 2010.

Many people in Britain are still learning about their new leader.

Unlike Johnson, who made himself a media celebrity long before he became prime minister, Truss rose quietly through the Conservative ranks before she was named foreign secretary, one of the top Cabinet posts, just a year ago.

She is expected to make her first speech as prime minister Tuesday afternoon outside No. 10 Downing Street.

Truss is under pressure to spell out how she plans to help consumers pay household energy bills that are set to rise to an average of 3,500 pounds ($4,000) a year — triple the cost of a year ago — on Oct. 1 unless she intervenes.

Rising food and energy prices, driven by the invasion of Ukraine and the aftershocks of COVID-19 and Brexit, have propelled U.K. inflation above 10% for the first time in four decades. The Bank of England forecasts it will hit 13.3% in October, and that the U.K. will slip into a prolonged recession by the end of the year.

Train drivers, port staff, garbage collectors, postal workers and lawyers have all staged strikes to demand that pay increases keep pace with inflation, and millions more, from teachers to nurses, could walk out in the next few months.

Truss, a low-tax, small-government conservative who admires Margaret Thatcher, says her priority is cutting taxes and slashing regulations to fuel economic growth. Critics say that will fuel further inflation while failing to address the cost-of-living crisis. The uncertainty has rattled money markets, driving the pound below $1.14 on Monday, its weakest since the 1980s.

In theory, Truss has time to make her mark: She doesn’t have to call a national election until late 2024. But opinion polls already give the main opposition Labour Party a steady lead, and the worse the economy gets, the more pressure will grow.

In addition to Britain’s domestic woes, Truss and her new Cabinet will also face multiple foreign policy crises, including the war in Ukraine and frosty post-Brexit relations with the EU.

Truss, as foreign secretary, was a firm supporter of Ukraine’s resistance to Russia. She has said her first phone call with a world leader will be to President Volodymyr Zelenskyy.

Truss has also pledged to increase U.K. defense spending to 3% of gross domestic product from just over 2% — another expensive promise.

But she’s likely to have much cooler conversations with EU leaders, who were annoyed by her uncompromising stance as foreign secretary in talks over trade rules for Northern Ireland, an unresolved Brexit issue that has soured relations between London and Brussels. With the U.K. threatening to breach the legally binding divorce treaty, and the EU launching legal action in response, the dispute could escalate into a trade war.

“I think she’s got a big, challenging job ahead of her,″ Robert Conway, 71, an electronics manufacturer, said in London. “Hopefully she’ll bring that, a new team, a new start, but it’s going to be a challenging job.”

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Susie Blann, Sylvia Hui and Kwiyeon Ha contributed to this story.

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UK energy bills to rise by 80% in October as regulator announces hike

LONDON — Britain’s energy regulator announced Friday it will raise its main cap on consumer energy bills to an average £3,549 from £1,971 a year, as campaign groups, think tanks and politicians call on the government to tackle a cost-of-living- crisis.

The price cap limits the standard charge energy suppliers can bill domestic customers for their combined electricity and gas bill in England, Scotland and Wales, but is recalculated by Ofgem throughout the year to reflect wholesale market prices and other industry costs. 

It covers around 24 million households. The 4.5 million households on prepayment plans face an increase from £2,017 to £3,608.

The cap does not apply in Northern Ireland, where suppliers can increase prices at any point after getting approval from a different regulator.

Gas prices have soared to record levels over the last year as higher global demand has been intensified in Europe by low gas storage levels and a drop in pipeline imports from Russia following its invasion of Ukraine. This has also increased electricity prices. 

Earlier this month, Ofgem announced that it will recalculate the cap every three months rather than every six months to reflect current market volatility. 

Consultancy Cornwall Insight forecasts the cap could rise to £4,649.72 in the first quarter of 2023 and to £5,341.08 in the second quarter before coming down slightly to £4,767.97 in the third quarter. 

That is still up from an average £1,400 annual bill in October 2021, and the current £1,971 cap. 

‘A catastrophe’

In July, the government announced it would pay a £400 grant to all households over six months from October to help with bills, with an additional £650 one-off payment going to 8 million vulnerable households. Some suppliers have also announced support packages for customers. 

However, this has been widely criticized for failing to address the scale of the problem, which has been compared with the Covid-19 pandemic and the 2008 financial crash in terms of its impact on the population. 

“A catastrophe is coming this winter as soaring energy bills risk causing serious physical and financial damage to families across Britain,” said Jonny Marshall, senior economist at the Resolution Foundation think tank, ahead of the announcement.

“We are on course for thousands to see their energy cut off entirely, while millions will be unable to pay bills and build up unmanageable arrears.”

Several strategies for tackling the crisis have been put forward by politicians, consultancies and suppliers themselves, but the ongoing U.K. leadership election has meant no new policy announcements have been made despite the looming spike in bills. 

The candidates, Liz Truss and Rishi Sunak, have both spoken of the need to provide additional support for households and businesses but said no decision will be made until the new prime minister is elected on Sept. 5. 

At a leadership hustings Thursday night, Sunak said he would provide further “direct financial support” for vulnerable groups.

Truss, the current favorite to win the contest, repeated previous comments about wanting to use tax cuts to reduce pressure on households, reversing the recent increase in national insurance tax and suspending the green energy levy on bills.

Plan needed

Options on the table are thought to include freezing the price cap at its current lower level — which energy suppliers argue would need to be financed through a government-overseen funding package in order to prevent destabilization of the industry — or allowing the price cap to rise and extending household support. 

Consumer group Which? on Thursday said the government needed to extend household payments from £400 to £1,000, with an additional one-off minimum payment of £150 to the lowest income households, to avoid millions of households falling into financial distress.

The opposition Labour Party has said it would freeze the April to October cap through winter by extending the recently-introduced windfall tax on oil and gas companies, scrapping the universal £400 payout and find other savings to freeze the cap over winter. 

Jonathan Brearley, chief executive of Ofgem, said any response needed to “match the scale of the crisis we have before us” and involve the regulator, government, industry, NGOs and consumers working together.

“We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make,” Brearley said.

“The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year.

“We are working with ministers, consumer groups and industry on a set of options for the incoming Prime Minister that will require urgent action.”

“The new prime minister will need to think the unthinkable in terms of the policies needed to get sufficient support to where it’s needed most,” said the Resolution Foundation’s Marshall.

“An innovative social tariff could provide broader targeted support but involves huge delivery challenges, while freezing the price cap gives too much away to those least in need. This problem could be overcome with a solidary tax on high earners – an unthinkable policy in the context of the leadership debates, but a practical solution to the reality facing families this winter.”

CNBC has contacted the government for comment.

Cost of buying gas

Emma Pinchbeck, chief executive of trade association for the energy industry Energy UK, told the BBC Friday morning that the industry would continue to call for government intervention to help both consumers and the impact on the wider economy.

“Most [suppliers] make a negative margin and have for the last few years, it’s one of the reasons we’ve lost 29 suppliers from the market. So when you look at this and the scale of this crisis, we’re talking about something far greater than the industry can meet, despite the help that’s been put in place, despite charging the maximum they can for the cost of buying gas.”

Pinchbeck said the industry favored a deficit tariff scheme that would allow suppliers to keep prices at their current level and have their costs met by a loan because it was the quickest to implement.

Wider challenge

Facing the same soaring wholesale prices along with varying degrees of reliance on Russian gas, European governments are coming up with their own support packages for citizens.

France has fully nationalized energy supplier EDF at an estimated cost of 9.7 billion euros, and capped increases in electricity tariffs at 4%. 

German households are set to pay around 500 euros ($509) more on their annual gas bills until April 2024 through a levy to help utilities cover the cost of replacing lost Russian supplies, with electricity prices also set to increase. The government is discussing a sales tax exemption on the levy and a relief package for poorer households, but has also been criticized for failing to announce adequate support.

Italy and Spain have both used windfall taxes to fund a combination of handouts for households in need and limits on bills rising to unaffordable levels.

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UK real wages decline at record rate as inflation soars

Data from the U.K. Office for National Statistics released on Tuesday showed that real wages declined at a record pace in June, while unemployment stayed level.

Jason Alden/Bloomberg via Getty Images

LONDON – U.K. real wages, which reflect the power of employee’s pay after accounting for inflation, fell by an annual 3% in the last quarter, according to data released by the Office of National Statistics on Tuesday.

While average pay — excluding bonuses — increased by 4.7% in the April to June period, according to the ONS, the cost of living is increasing at an even faster rate and outpacing wage growth.

Darren Morgan, ONS director of economic statistics, said this was affecting how far wages go in the day-to-day life of workers.

“The real value of pay continues to fall. Excluding bonuses, it is still dropping faster than at any time since comparable records began in 2001,” he commented.

Higher energy and food bills have been putting pressure on households in the U.K. The cost of living crisis continues to take hold of the country, with consumers’ purchasing power decreasing.

U.K inflation rose to a fresh 40-year high of 9.4% in June, and is expected to soar above 13% by October. The Bank of England responded to rising prices earlier this month by hiking interest rates by 50 basis points to 1.75% — the largest single increase in 27 years.

Lauren Thomas, U.K. economist at career site Glassdoor, said inflation and rising prices are currently workers’ main concerns.

“The only constant in 2022 is change and skyrocketing prices. Even with high wage growth and a tight labour market, workers are feeling the pinch as inflation emerges as the biggest winner. With real wages falling a record 3.0 percent thanks to inflation, the cost of living is a priority for many job seekers,” she said.

The ONS’ data also showed that unemployment remained stable at 3.8%, while job vacancies fell during the same timeframe.

James Smith, a developed markets economist at ING, said that the Bank of England will be paying close attention to both wage growth and the unemployment rate in the U.K.

“The Bank of England’s official forecasts point to a material increase in the unemployment rate over the next couple of years, but policymakers will be looking for signs that firms are ‘hoarding’ staff even where margins are squeezed, amid concerns about their ability to rehire again in the future. Wage growth has decent momentum right now, and the committee will be concerned that this could be sustained,” he said.

Looking ahead, this could mean further sharp interest rate hikes by the Bank of England, Smith adds:

“For now, we think there’s not much in these latest figures that will stop the Bank of England from hiking rates by 50bp again in September, even if we are nearing the end of the tightening cycle.”

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