BUSINESS LIVE: Pay rises set to slow; Heathrow slams ‘tourist tax’; Frasers lines-up fresh buyback

Britain has a savings deficit of £74bn and more than half of working-age families do not have enough to cover a major hit to their finances, a report has found.

A study by the Resolution Foundation found that 51 percent did not have savings worth three months of income, in case of major problems such as unemployment, illness or relationship breakdown.

They would need to collectively save an extra £74bn to reach that threshold, the think tank calculated.

Frasers has instructed its broker to prepare a new share buyback programme.

The retailer will buy back up to 10 million shares for up to £80 million, it told shareholders on Monday.

“The objective of the program is to reduce the company’s share capital,” Frasers added.

Heathrow Airport has reiterated its criticism of the so-called “tourist tax”, telling investors on Monday that Britain has “closed the door on domestic growth” by “turning away international buyers… and tarnishing the UK’s reputation.” as a competitive country to spend and do business with’.

Britain’s busiest airport added that it had “joined forces” with the British Chambers of Commerce and the Federation of Small Businesses to champion “an internationally competitive duty-free shopping incentive” in the upcoming Spring Budget.

Heathrow also reported that just under 6 million people traveled through the hub in January, an increase of 9.4 per cent on the same period last year.

Heathrow CEO Thomas Woldbye said: “The year is off to a good start, maintaining Heathrow’s crown as the UK’s best airport.

‘We are prepared for the first passenger peak of the year, with the February half-term approaching quickly. Whether you’re traveling to ski, sunbathe or visit friends and family, Heathrow has you covered.’

The British economy looks set to suffer a double whammy this week, with figures expected to confirm a recession at the end of last year and a rise in inflation in early 2024.

That would be a blow to ministers’ hopes of reviving growth and ending the cost of living crisis as the election approaches.

However, experts believe the setbacks will be temporary. And a business survey by accountants BDO suggests output rebounded earlier this year to its strongest level in 18 months.

The UK’s wage growth rate is expected to slow this year for the first time since the pandemic, which could ease pressure on the overall inflation rate, according to a closely watched survey.

British employers expect to increase basic pay by an average of 4 per cent over the next 12 months, against an expected 5 per cent increase through 2023 and the end of 2022, according to a survey by the Chartered Institute of Personnel and Development (CIPD). . ).

This is the first drop since early 2020 amid the fallout from the pandemic.

Wage growth has been a key concern for the Bank of England and its efforts to control inflation, amid fears of a wage-price spiral.

UK wages before bonuses rose 7.3 per cent in the three months to October, according to the latest data from the Office for National Statistics, below the summer peak of 8.5 per cent.

The Bank of England continues to closely monitor the rate of wage growth as it considers when to start cutting interest rates.