Business

Barclays has revealed plans to shut 14 more branches across England and Wales in June.

These closures will be in addition to the 55 branches the bank already planned to shut this year, meaning at least 69 Barclays branches will shut in 2023.

The decision from Barclays is in line with other major banks, which have axed branches as more people move to online banking.

Lloyds, Barclays, NatWest, HSBC and Santander have all shut more than half of their branches since 2015.

The move from Barclays means their customers will now need to rely on pop-up sites and ‘banking pods’ if they require in-person support.

These ‘banking pods’ are semi-permanent sites which can be moved across different towns and cities to satisfy demand.

Currently, Barclays has 200 pop-up sites and ten ‘banking pods’, with plans to add another 70 pop-up sites in the near future.

In addition, the company runs an educational and support van service to provide financial advice to their customers.

The move from Barclays follows that of other banks, which have closed down high street stores in swathes, as customers move to online and telephone banking, however HSBC have announced suspended branch closures where their banks is the only one remaining within a local area.

A Barclays spokesperson said: ‘As visits to branches continue to fall, we need to adapt to provide the best service for all our customers.

‘Where there is no longer enough demand to support a branch, we maintain an in-person presence though our Barclays Local network, live in over 200 locations, based in libraries, town halls, mobile vans and our new banking pods.

‘We also support access to cash with our cashback without purchase service, 24-hour deposit-taking ATMs and by working alongside the Post Office and Cash Access UK.’

The full list of 14 branches which will close in June are below:

46 Rhosmaen Street, Llandeilo, Wales, SA19 6HF – June 23, 2023

38/42 High St, Mold, Wales, CH7 1BB – June 30, 2023

12 Station Street, Saltburn-by-the-Sea, England, TS12 1AB – June 30, 2023

24 Fore Street, Tiverton, England, EX16 6LE – June 28, 2023

106 High Street, Honiton, England, EX14 1JW – June 23, 2023

10 The Square, Caterham, England, CR3 6XH – June 23, 2023

112 Woodcote Road, Wallington, England, SM6 0LY – June 28, 2023

65/67 Sandgate Road, Folkestone, England, CT20 1RY – June 23, 2023

66 Market Place, Chippenham, England, SN15 3JA- June 23, 2023

1 The Square, Holmes Chapel, England, CW4 7AF- June 27, 2023

13/15 Victoria Square, Holmfirth, England, HD9 2DW – June 23, 2023

337/339 Stanley Road, Bootle, England, L20 3EB – June 30, 2023

207 High Road, Loughton, England, IG10 1AZ – June 22, 2023

28 Chesterton Road, Cambridge, England, CB4 3AZ – June 28, 2023

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Barclays is to shut 14 more branches – on top of the 55 closures already announced across England and Wales in 2023

Energy giant Ovo has launched its first deal for customers cheaper than the government’s cap on household bills.

The firm will offer a fixed 12-month tariff of £2,275 for existing customers, at a time when the government is limiting typical household bills to £2,500.

It comes as falling wholesale gas prices start feeding through to bills.

One expert urged caution on Ovo’s deal, predicting there would be cheaper deals in the months to come.

Ovo Energy, which provides power to more than four million homes, said it was launching the tariff because customers wanted “the security of a long term fix to protect them against the continuing energy price uncertainty”.

But Mr Martin Lewis, from MoneySavingExpert, said: “People need to be very careful not to just jump on a fix because it costs less than they’re paying right now… because wholesale rates – the rates energy firms pay – have dropped, it’s likely the price cap will drop, and on current predictions that means you’ll start paying 20% lower rates than now. That price is predicted to stay around that point until the end of the year, and into early 2024.”

Experts have been predicting household bills will fall this summer as suppliers strike new long-term deals to buy cheaper gas.

At that point the government’s Energy Price Guarantee (EPG) – which is being held at current levels until the end of June – will no longer be needed, they add.

Last month analysts at Cornwall Insight forecasted that Ofgem’s energy price cap – which in normal times limits what suppliers can charge per unit of energy – will fall to £2,153 a year from July.

And earlier this week, analysts at financial firm Investec said the cap could go as low as £1,981 a year from July – although this would still be significantly higher than it was before Russia’s invasion of Ukraine.

Experts believe at this point households might once again be able to shop around for more competitive energy deals.

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Ovo launches energy deal below government price cap

The head of the International Monetary Fund has warned of increased risks to the stability of the financial system after weeks of banking sector turmoil.

It comes as markets brace for another week of volatility following panic over the health of Deutsche Bank.

IMF managing director Kristalina Georgieva said uncertainty in the global economy remained ‘exceptionally high’ and 2023 was set to be ‘another challenging year’.

Global growth was set to slow to under 3 per cent as war in Ukraine, higher interest rates and long-term ‘scarring’ from Covid weighed on activity.

Georgieva told a conference in Beijing that chaos in banking markets was due to recent interest rate hikes. She said: ‘The rapid transition from a prolonged period of low interest rates to much higher rates – necessary to fight inflation – inevitably generates stresses and vulnerabilities, as evidenced by recent developments in the banking sector in some advanced economies.’

Despite this, Georgieva said policy-makers and central bankers had acted ‘decisively’ to counter risks to the financial system, but warned high uncertainty meant there was a ‘need for vigilance’.

It followed another dramatic episode for the banking sector at the end of last week.

Deutsche Bank shares tumbled amid fears it could be the next to fail, after an emergency takeover of Credit Suisse by Swiss rival UBS. It led German chancellor Olaf Scholz to alleviate concerns about Deutsche Bank, saying it was ‘very profitable’ and there was ‘no reason to be concerned’.

It remains to be seen whether the comments will be enough to calm market panic over the banking sector, which has been disturbed since the collapse of US lender Silicon Valley Bank (SVB) earlier this month.

Three US lenders have collapsed in March – SVB, Signature and Silvergate – while larger Wall Street rivals have pumped £25billion into San Francisco-based First Republic Bank to prevent more dominos from falling.

Georgieva also warned that rising geopolitical tensions risked splitting the world into rival economic blocs. She said this would leave ‘everyone poorer and less secure’ and the global economic outlook was ‘likely to remain weak’ over the medium term.

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Head of International Monetary Fund warns of increased risks to stability of financial system after weeks of banking sector turmoil

HSBC has become the first bank to agree to delay the closure of a last branch in town until alternative banking arrangements are in place.

The bank’s move means a number of communities will now not spend months bankless while a new banking hub is opened – or a cash deposit service introduced.

Last year, the banks agreed to fund the setting- up of hubs (community banks) in towns where the last branch was closing – and an independent assessor (cash machine network Link) had decided one was needed to ensure continued access to cash.

Yet the hubs rollout has been protracted as Cash Access UK – responsible for installing them – has struggled to find suitable sites. The average time for a hub to come on stream is more than a year. So far, only four have opened while 43 more are promised.

As the MoS highlighted last month, HSBC was due to close its Oakham branch in June. This would have left the town and the wider county of Rutland without a bank.

Although Link recommended a hub for Oakham, it is nowhere near getting off the ground. HSBC has said that it would now ‘pause’ the Oakham closure until a hub was in place. It also said it would suspend closures in Ripley, North Yorkshire, and Colwyn Bay, Conwy, until cash deposit services recommended by Link were established.

HSBC says: ‘We understand that closing a branch can be difficult for some customers and the wider community – especially when it is the last in the area and there is a gap between its closure and a new hub opening.

‘Wherever a hub is recommended and we have a closure, we will pause it for up to 12 months to enable Cash Access UK time to develop a hub.’

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HSBC agrees to delay closure of a last branch in town until alternative banking arrangements are in place

The cost-of-living crisis and rising energy prices have caused problems for many people, and businesses aren’t exempt from these financial struggles.

In fact, in PayPal’s Business of Change Report 2022, 78% of business ownersclaimed they were worried that the cost-of-living crisis would be the biggest threat to their businesses this year.

As such, supporting your local businesses is more important than ever if you want them to remain open throughout this difficult financial period. Here, with the help of Peter Campbell of Snowshock, a UK based slushy machine business, we’ll explore what you can do to support your local shops and the additional benefits this can have.

How you can support your local shops

Shop locally

Shopping in your area can help your local businesses during this financially difficult time. Instead of travelling to your nearest supermarket, you can visit your local corner shops and vendors – including your local grocer’s markets and farm shops.

Reviews

You don’t just need to spend your money to help your local businesses. You can also leave reviews and feedback online. This can highlight the gems of your local area and entice more customers to visit. Honest reviews and positive feedback can boost a business’s reputation. Sharing them on social media can also highlight their business and potentially drive more traffic to them.

Vouchers

Purchasing vouchers for their stores can also help. These can be great gifts for your friends, family, and neighbours. This can ensure that new customers are visiting these locations and discovering the great products that local community shops can offer. This both increases the profit and awareness of the business.

Swap to independent brands

Swapping to independent brands, specifically companies local to your area, can greatly impact your local economy and help drive business growth. Whether you are choosing to swap your name-brand slush syrup for a local innovator or buy fresh milk and produce from neighbouring farmers, you can do your bit to further the businesses in your area.

The benefits of supporting local

Consumer benefits

And there are many benefits for you, not just the businesses, when you shop locally. For instance, there is less delivery charge than purchasing something from a warehouse elsewhere or overseas. And the more you shop locally, your new demand for certain products increases their availability in your area.

Better for the environment

Local businesses might be the answer if you are looking to better your sustainability. Not to mention, buying locally is better for the environment, so you can do your part to reduce your carbon footprint. Simple changes such as getting your produce from a local distributor or farmer could help as the food doesn’t have to travel as far.

Encourages growth in the local community

And if you are looking to stimulate growth within your local community, then helping businesses is the way to do it. By shopping in your local area, you contribute to your local economy and help create further job opportunities.

In 2020, 66% of shoppers were more likely to shop in their local area than in 2019, according to Mastercard. And with its benefits for your area, it is no surprise why. Not only can you help local businesses continue to grow, offering more job opportunities, but you can also have a sustainable impact on the environment. By buying local, investing in local businesses, and leaving positive reviews for the cafes, shops, and other businesses you try, you can help boost your local economy and keep SMEs alive.

Read more:
Cost-of-living crisis: The benefits of supporting local and how to make an impact

The Dubai-owned company that admitted it had broken employment law by dismissing 800 British crew at P&O Ferries last March and replacing them with cheap foreign labour has been awarded a multimillion-pound windfall under Rishi Sunak’s freeports scheme, in what unions condemned as an “appalling” decision.

DP World, the ports and shipping empire controlled by the emirate’s sovereign wealth fund, has had its business plan approved to co-run the 1,700-acre Thames Freeport in Essex, entitling the company to benefit from taxpayer cash and tax breaks, only a year after the mass-sackings.

The company, which is run by Sultan Ahmed bin Sulayem, sacked the staff by video call and hired foreign seafarers who sometimes earn less than £4 an hour, according to the Trades Union Congress. The government, at the time, said it was “appalled”.

Sunak made freeports a key part of his vision for British economic reinvention after Brexit when he was chancellor. Under the scheme, which he launched in 2021, eight sites are to be transformed into low-tax zones, with manufacturers based there importing goods exempt from tariffs. Companies will also be able to claim lower property taxes on new buildings and benefit from lower levels of national insurance on new staff.

The Thames Freeport will be run across three sites in Essex and east London in a partnership between DP World, Forth Ports and Ford. It is made up of DP World’s vast London Gateway site in Thurrock, which is the size of 400 football pitches, the Port of Tilbury near Southend-on-Sea owned by Forth Ports, and Ford’s Dagenham plant.

Last week the government approved the final business case for the project, allowing it to formally constitute its board, and begin to operate fully. This will entitle the port to receive £25 million in government funding and allow the port to press ahead with attracting £4.6 billion in public and private investment to generate 21,000 new jobs.

Paul Nowak, general secretary of the TUC, said: “This is an appalling decision. DP World oversaw the brutal, and illegal, sacking of 800 workers at P&O ferries. Ministers should have stripped the company of all its public contracts and severed commercial ties. But the government has chosen instead to reward DP World with another bumper deal. This is giving a green light to other rogue employers to act with impunity.”

Last summer, when asked if it would give its approval for Thames Freeport, the government appeared to suggest it was considering carefully whether to turn down the plans. A spokesman told The Times: “The government has been clear that we are appalled by the way P&O have behaved towards their employees and DfT ministers have raised this directly with P&O company chiefs.

“We have not yet approved the full business case for the Thames Freeport, and are working to establish whether DP World are in breach of any of the requirements. They have not received any capital funding from government.”

Last week, it emerged that directors and key managers shared more than £15 million, including bonuses, in 2022 up from £14.6 million in 2021.

The company had also been accused by HM Revenue & Customs of avoiding stamp duty over its original £113 million purchase of the London Gateway site in 2010, although it is “vigorously contesting” the demand and will fight it at a tribunal.

A spokesperson for Thames Freeport said the three participants in the scheme had invested £2.5 billion in ports and logistics infrastructure over the past ten years, with £3 billion of further investment planned including a £350 million new berth at DP World’s London Gateway port. He added that 21,000 new “direct and indirect jobs” would be created by the project.

A government spokesman said: “This approval means that the freeport will now receive up to £25 million from the government and potentially hundreds of millions in locally retained business rates. This funding will go to local authorities in the freeport area and will be used to benefit the entire region.”

Read more:
Windfall for group that sacked 800 P&O workers

Almost two thirds of consumers cannot answer basic questions about their finances correctly, according to a survey from PwC and YouGov.

Asked how much they would expect to pay for their mortgage if interest rates suddenly went up, only 37 per cent gave the right answer and only 31 per cent could identify what would happen to a personal loan. People on higher salaries showed a greater financial understanding, with those paid more than £70,000 twice as likely to respond correctly as those paid under £20,000.

The survey, which interviewed more than 2,000 people about personal finances, found “no sign of improvement in financial literacy,” over the years, with little difference in correct response rates since the questions were asked in 2017. But 88 per cent of those surveyed said they felt “confident” or “very confident” in making financial decisions.

Bobby Seagull, a maths teacher and an ambassador for the National Numeracy charity, said: “Consumer inability to answer basic financial questions often stems from negative experiences of maths in school.”

He added: “It’s a tragedy that income bands can almost predict financial literacy, which means that those who are under the greatest financial strain are less able to evaluate the impact of their financial decisions.”

The survey also indicated that three million people, or 10 per cent of the working population, opted out of their pension schemes in the past year, a figure which rose to 17 per cent among those aged 18 to 24. The relevant question was included in the poll after a senior associate within PwC told colleagues that she had stopped paying into her pension, which surprised them.

Almost half of the respondents said they had curbed their heating use because of soaring energy prices, 43 per cent had cut their Christmas spending, 37 per cent had started shopping at cheaper grocers and a quarter had cancelled one or more of their subscription services.

Household debt has hit £2 trillion for the first time, almost the level of the nation’s GDP, which equates to £71,000 a household, with 80 per cent secured against property.

The total of unsecured debt grew by more than 7 per cent in the past year to a record high of more than £400 billion, equivalent to £14,300 per household, a rise of £900 each. Rising debt is concentrated in certain brackets, with young people 50 per cent more likely to have increased what they owe.

Although debt has been more affordable than before the global financial crisis because of lower interest rates and levels of unemployment, rising mortgage rates and job losses could “erode financial resilience,” the survey organisers said.

Lack of savings meant that a quarter of the population would need to borrow money to meet an unexpected £300 payment in the next year. Those renting their homes were at a greater risk of “financial fragility”, the survey in January found, with 17 per cent having missed a meal to pay a bill compared with 5 per cent of homeowners.

Simon Westcott, strategy and financial services lead at PwC UK, said: “There appears to be a disconnect between these confidence levels and consumers’ actual understanding of everyday financial products.”

Despite the shaky grasp of personal finance, when it comes to asking for guidance, only about a quarter of people said they turned to financial institutions such as banks, while another quarter did not ask for financial advice or information from anyone at all.

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Two thirds of UK consumers say personal finance doesn’t add up for them

Most British businesses are struggling to plug gaps in their workforces amid a shortage of skilled talent.

About 80 per cent of companies reported difficulty filling jobs, according to the latest talent shortage survey by ManpowerGroup, the American recruitment giant. That marks the highest percentage since 2006, while the proportion of businesses reporting difficulties with recruitment has jumped from 13 per cent a decade ago.

The pandemic has exacerbated the nation’s skills shortages; only 35 per cent of businesses reported concerns about staffing in 2019. Although the number of job vacancies in the UK has been coming down in recent months, there are still more than 1.1 million unfilled jobs across the country, 40 per cent more than at the beginning of 2020.

“Talent shortages are always an area of concern for employers, but the real step change in our data can be seen post 2019,” Michael Stull, director at ManpowerGroup UK, said. He added that employers were “acutely aware of the growing scarcity of key skills, so they’re holding on to and trying to stockpile business-critical talent. Just in time hiring does not work any more, just in case hiring is more the mantra.”

Energy and utilities companies were struggling the most to hire new staff, the Manpower survey found, with 88 per cent of firms in those industries reporting recruitment difficulties because of the demand for green skills.

Despite well-publicised redundancies at some of the world’s biggest technology companies, British businesses were still struggling to recruit software developers and engineers. Four in five businesses said that they were struggling to fill information technology vacancies.

Economic data suggests that the battle for talent will become less intense as this year wears on. Economists at KPMG, the big four accountancy firm, expect the UK economy to shrink by 0.3 per cent in 2023, while the unemployment rate will probably widen to 4.1 per cent, from 3.7 per cent last year.

Yael Selfin, chief economist at KPMG, flagged skills shortages and slowing workforce participation as two structural issues that “dominate the longer-term risks to the UK outlook”.

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Businesses in battle to find skilled staff

UK ministers should act to ensure long Covid sufferers receive the support they need from employers, with as many as two-thirds claiming they have been unfairly treated at work, a report argues.

The report, from the TUC and the charity Long Covid Support, warns that failing to accommodate the 2m people who, according to ONS data, may be suffering from long Covid in the UK will create, “new, long-lasting inequalities”.

The analysis is based on responses from more than 3,000 long Covid sufferers who agreed to share their experiences.

Two-thirds said they had experienced some form of unfair treatment at work, ranging from harassment to being disbelieved about their symptoms or threatened with disciplinary action. One in seven said they had lost their job.

The report, released on Monday, makes a series of recommendations, including urging the government to designate long Covid as a disability for the purposes of the 2010 Equality Act, to make clear sufferers are entitled to “reasonable adjustments” at work; and to classify Covid-19 as an occupational disease to allow people who contracted it through their job to seek compensation.

Long Covid is an umbrella term for a wide range of symptoms experienced by some people after contracting Covid-19, which can include chronic fatigue, brain fog and breathing difficulties, and can last months or even years.

Paul Nowak, the TUC general secretary, said: “Workers with long Covid have been badly let down. Many of these are the key workers who carried us through the pandemic – yet now some are being forced out of their jobs.

“Ministers must make sure all workers with long Covid have the legal right to reasonable adjustments at work so they can stay in their jobs.”

The report argues that such adjustments might include flexible working, disability leave and a phased return to the workplace.

The definition of a disability under the Equality Act is “a physical or mental impairment which has a substantial and long-term adverse effect on a person’s ability to carry out normal day-to-day activities”, defined as lasting, or being likely to last, more than a year.

Many long Covid sufferers’ condition could already meet that definition, but the report argues the challenges they face in getting support at work means clear guidance from government is needed.

Almost a quarter of the respondents to the survey (23%) said their employer had questioned whether they had long Covid, or the impact of their symptoms.

Lesley Macniven, a founding member of Long Covid Support said: “Long Covid is devastating the health of a significant percentage of our workforce and urgently requires a more strategic response.

“Those still fighting to stay in work face discrimination and a lack of understanding. Without action around retention of these workers, not least in sectors facing skills shortages, the numbers, and costs, will continue to rise as they too reluctantly exit the workforce.”

Half of the long Covid sufferers who responded to the survey said they believed they had originally contracted Covid-19 in the workplace.

The Industrial Injuries Advisory Council (IIAC) recommended last November that health and social care workers should be entitled to claim industrial injuries disablement benefit, for specific complications of Covid-19 such as lung fibrosis or strokes.

The report calls on the government to adopt that recommendation – but also to designate Covid-19 as an occupational disease for sufferers in any sector.

“This would entitle more frontline workers to protection and compensation if they contracted the virus while working and be essential for people who have lost income and work as a result of long Covid,” the report argues.

A government spokesperson said: “The Equality Act clearly defines disability as a long term or substantial physical or mental impairment which has a negative effect on an individual’s ability to carry out normal daily activities.

‘This would capture long Covid, on a case-by-case basis, if an individual is impacted in this way. There is therefore no

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Two-thirds of UK workers with long Covid have faced unfair treatment, says report

A recession is still on the cards in the UK despite the economy performing much better than experts predicted just a few months ago, new forecasts out today project.

Higher interest rates and households responding to the cost of living crunch gripping their finances by trimming spending is tipped to push GDP 0.3 per cent lower this year, according to consultancy KPMG.

Families are being hit by the worst inflation surge in four decades and the Bank of England jacking up borrowing costs to tame it.

Bank Governor Andrew Bailey and his team of economists bumped rates up for the eleventh time in a row last week to 4.25 per cent, a post-financial crisis high, as he stepped up the central bank’s fight against inflation, which rose to 10.4 per cent last month.

KPMG reckons the Bank will keep rates at that level for the whole of this year, weighing on household and business spending.

As a result, “although the likelihood of a UK recession has fallen, it has not dissipated entirely,” the firm said in its latest set of UK and global economic forecasts.

A batch of economists have junked their recession warnings recently in response to firms and families holding up better than feared under the cost of living crisis.

The Office for Budget Responsibility (OBR), Britain’s official forecaster, at Jeremy Hunt’s first budget earlier this month raised its GDP forecasts for this year on the basis that households will raid their savings to maintain spending.

Bank of England officials also scrapped their recession warning at last week’s rate decision. Back in November, they had projected the UK was on course for the longest recession in a century.

Despite the rosier outlook, OBR chief Richard Hughes warned yesterday on the BBC’s Sunday with Laura Kuenssberg programme that families are grappling with the biggest hit to their living standards since records began.

KPMG boffins said a slowdown in the housing market caused by higher mortgage rates freezing potential buyers out of a home purchase would clamp down on economic growth.

“Higher costs of borrowing and slowing growth outlook are expected to lead to weakening business investment during the course of this year,” they added.

The UK is tipped to be the only G7 country to undergo an economic contraction this year. Growth is also poised to flatline next year, with GDP set to move just 0.6 per cent higher.

A sharp decline in inflation to just over the Bank’s two per cent target by the end of this year could open the door for Bailey and co to alleviate pressure on households and businesses by slashing borrowing costs in 2024.

Slowing growth and lower inflation presents the “Bank of England with an opportunity for a series of gradual rate cuts next year, bringing the base rate to 3.5 per cent by the end of 2024,” the forecasts said.

Global output will expand 2.1 per cent in 2023, KPMG said, and accelerate to 2.4 per cent in 2024.

India is projected to have the strongest growth of any country monitored by the consultancy, hitting 6.4 per cent and 6.9 per cent this year and next respectively.

Read more:
UK recession still on the cards after aggressive Bank of England interest rate hikes