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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

A slew of new towns promised as part of a UK housing revolution will not drop “magically” from the sky, but require a radical approach to planning and funding infrastructure, the chair of the government’s New Towns Taskforce has warned. 

Sir Michael Lyons, a former BBC chair and local council chief executive, said that he expected construction to increase from the end of the current parliament, with possible locations for the new towns identified by the middle of next summer.

“This is about a big, bold statement of the ambition of growth and a much larger-scale response to the housing crisis. We need an additional 5mn homes by 2040 and we’re not going to do that by incremental change,” he said in his first national interview since being appointed in August.

Lyons and a board of expert advisers have been given 12 months to deliver a report to housing secretary Angela Rayner identifying locations for the new towns and setting out the mechanism by which they can be built.

It is a decade since Lyons delivered his last housing report for Labour — the Lyons Review into how to kick-start housebuilding after the financial crisis — but he said he was determined that it will not be “just another report”.

As inspiration he cited the fact that Lord John Reith, the first director-general of the BBC, took only a year to compile his own “seminal” Commons Committee report in 1945 that gave birth to the original postwar new towns such as Milton Keynes and Stevenage. 

Lyons, who recently held meetings in Cambridge where the previous government announced plans to build more than 100,00 new homes, added that it was too early to say where the 21st-century versions would be built, but the focus would be on high-productivity areas.

“This isn’t about magically dropping these towns from the sky,” Lyons adds. “What is important is that they are long-term plans, with infrastructure up front, and that we pick places with good growth and employment prospects.”

Delivering the new towns was one of the most ambitious and potentially controversial pledges in Labour’s election manifesto. When setting out the government’s housebuilding targets in July, Rayner warned MPs that local communities would have a say only on “how to deliver new homes, not whether to”.  

The official remit asks Lyons to identify sites for new communities of “at least 10,000” homes “built on greenfield land and separated from other nearby settlements”, with 40 per cent in the “genuinely affordable” social rent category

Exact locations will be identified via what Lyons called “detailed and fine-grained spatial analysis”. Some would be entirely new sites, others, “urban extensions” of existing towns, but many would be more than 10,000 homes, he added.

As for the timescale, Lyons said that realistically the new projects “will gear up five years from the point at which the report lands”, taking them beyond the current government’s term.

Lyons said he had not reached definitive conclusions about how the new towns would be delivered or funded, but was clear that independent Development Corporations would be central to driving projects forward, with necessary infrastructure delivered up front.

As well as visiting Cambridge, Lyons has consulted executives at London’s Old Oak and Park Royal Development Corporation, which is overseeing the delivery of tens of thousands of new and affordable homes in a site near the HS2 railway development.

A report published last month by the Bennett Institute for Public Policy at Cambridge university, whose co-director Dame Diane Coyle is on the task force, cited examples of projects such as the Grand Paris Express and the expansion of the Swedish city of Gothenburg as potential models.

Labour has said it intends to strengthen compulsory purchase power introduced by the previous Conservative government in order to enable public bodies to assemble land for public development without paying overinflated valuations.

Lyons said the ideas in the Bennett Institute report were “congruent” with those being explored by the New Towns Taskforce, including securing land at “best value” and putting infrastructure in early. “When it comes to the discussion of how that’s funded, well I think that’s intriguing,” he added.

The UK would also need to radically improve the co-ordination of infrastructure so that all the elements needed to support new towns — water, power and transportation — could be delivered together, Lyons said.

Asked what would provide the ‘carrot’ for local authorities to accept the new developments, Lyons said that aside from the prospect of new affordable homes helping councils cut their reliance on temporary accommodation, they would be offered new levels of certainty.

“First clarity about the areas; secondly a clear commitment to early investment in infrastructure, both physical and social, well ahead of the pace of development of housing and thirdly the governance arrangements that bring strong leadership for that development,” he said.

RUMOURS have been swirling on social media that the McDonald’s McRib burger is set for a comeback after 10 years off the menu.

So when I was invited to a secretive press event by the fast food chain earlier this week – with no details on what it was about – I was very intrigued and expected something big.

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A couple of hours after arriving, my anticipation finally ended as Maccies workers started dishing out box upon box filled with the iconic burgers, first launched in the UK in 1981, from the back of a van.

The pork-based patty, which is lathered in smoky BBQ sauce, pickles and onions and encased in a homestyle bun, is back on menus for a limited time from October 16.

It will be on sale for £4.49 as an individual item or £6.19 as part of a medium extra-value meal deal, which means it comes with fries and a medium drink.

But I, alongside a host of other journalists and social media influencers, got an early taste of the fan-favourite item, which was last seen on UK menus in early 2015.

While I am old enough to remember the McRib being on menus, I never actually tried it at the time.

And I must admit, I was buzzing to give it a go, especially after all the clamour about it online in recent weeks.

How did it taste?

After opening the box, the burger looked pretty plain and unspectacular, while its rectangular shape made it hard to hold, to be honest.

But I was pretty impressed when it came to the flavour and texture.

The pork patty melted in my mouth and was super tender – definitely better than other burgers I’ve tried.

The pickles and onions added a nice textural contrast to the soft bun and meat as well, while adding a slight sour kick.

But one thing I would say was that after eating an entire burger I did feel a bit sickly due to the abundance of the BBQ sauce, which was too sweet for me personally.

At 509 calories, the burger is more calorific than a Double Cheeseburger, McChicken and Bacon Double Cheeseburger as well.

But overall, I’d definitely choose to get a McRib again on my next trip, especially as it’s only on menus for a limited time.

OTHER MCDONALD’S CHANGES

McDonald’s customers are in for a busy October, with the fast food chain already having confirmed a new breakfast item is making its way onto menus.

From October 16, foodies will be able to get their hands on mini hashbrowns in a portion of five or 15, with prices starting from £1.49.

McDonald’s already sells regular-sized hashbrowns for £1.19 but these are bitesized.

Many customers have already taken to social media saying the product reminds them of Tater Tots – a popular side dish in America.

It is still unclear whether or not the morning snack will become a permanent menu item or will only be available for a limited period.

A number of items are coming off menus this month too.

Customers will have to wave goodbye to six menu items:

• Philly Cheese Stack
• Chicken Big Mac
• Mozzarella Dippers
• Galaxy Chocolate McFlurry
• Twix Caramel McFlurry
• Twix Latte

The items were rolled out across stores on September 4, in conjunction with the return of McDonald’s Monopoly.

But when the game ends on October 15, these items will be removed.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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AT least seven people have been killed in a horror crash after a wedding bus plunged into a ravine in Pakistan.

Another 37 people were injured in the smash, including children.

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Shocking pictures show the destroyed bus upside down with emergency services at the scene.

The cause of the accident near Quetta, the capital of Balochistan province, remains unknown.

An investigation isunderway.

According to Wasim Baig, a spokesman for the health department, the bodies of the victims and the people who were injured in the accident were brought to a local hospital.

Some of the injured were said to be in critical condition.

Chief Minister Balochistan, Mir Sarfraz Bugti,described the accident as “heartbreaking and deeply saddening.”

He has ordered an inquiry into the cause of the crash, stating, “If negligence is found, action will be taken.”

In August, 32 people were killed in two bus accidents, one in Balochistan and the other in eastern Punjab province.

Authorities at the time said both accidents were caused by the negligence of the drivers.

And earlier in August, 28 Pakistani pilgrims were killed in a bus crash in neighboring Iran while heading to Iraq.

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

The writer is First Deputy Governor of the Bundesbank and chair of the Central Banks and Supervisors Network for Greening the Financial System

It is clear that the effects of climate change have started to influence the monetary policy considerations of several central banks. Unfortunately, such factors will become even more relevant in the future.

Severe weather events are intensifying, and so too are their economic impacts. Tropical storm Helene in south-eastern US is just the latest reminder of the damage that can be wrought.

The annual damages on properties caused by natural catastrophes have more than doubled in real terms over the past two decades, reaching $280bn globally in 2023, according to Swiss Re. The overall impact is much larger, as acute physical effects ripple through the economy, influencing supply, demand and financial flows — and thus also monetary policy.

A new Network for Greening the Financial System report compellingly illustrates how natural catastrophes such as floods and hurricanes affect the economy. They destroy homes, local infrastructure and production sites, requiring years and enormous amounts of money to rebuild. Waning confidence could prompt companies and households to cut back on spending, further undermining economic growth prospects.

Price impacts are not spared, as severe weather events, among other factors, damage agricultural production and drive up food prices across regions. These sectoral effects can lead to an increase in overall inflationary pressures, depending on how much a drop in demand balances them out. For instance, droughts tend to exert upward pressure on headline inflation for several years, with developing economies especially affected, because of their higher dependency on agriculture.

Against this backdrop, central banks might face the complicated task of taming inflationary pressure in a weak economy. Think of a situation when rising inflationary pressure might warrant policy tightening — particularly for central banks, whose primary mandate is price stability — even though this could contribute to economic strain. The State Bank of Pakistan, for instance, in 2022 opted to continue raising policy rates after the devastating floods caused a sharp increase in food prices.

Climate change — and its uncertain outcomes — mean that central banks must focus on looking ahead and extend their horizon beyond the usual projection period. Estimates of future impacts illustrate what could be in store for the economy and the financial sector. At a global level, climate change could drive up annual food price inflation by between one and three percentage points by 2035, according to a study of the European Central Bank and the Potsdam Institute for Climate Impact Research.

However, most studies still fail to consider the risk of crossing climate tipping points, which can significantly accelerate climate change. According to the OECD, ignoring these critical thresholds results in a severe underestimation of the economic costs. Extreme weather events can also bring us closer to these tipping points. The current drought in the Amazon region — the most severe since systematic recording began in 1950 — exemplifies this risk. With one-fifth of the Amazon rainforest already lost, mostly due to deforestation, concerns are mounting that this carbon sponge is on the brink of collapse. That would trigger a cascade of climate events, leading to higher economic costs globally.

What is more, uncertainties surrounding the magnitude and duration of severe weather events — coupled with governments’ responses — will make the short-term forecasting of key economic indicators particularly challenging. An example is Hurricane Katrina in 2005, and the subsequent landfalls of hurricanes Rita and Wilma. In the highly dynamic weeks and months that followed, staff of the Federal Reserve adjusted their estimates of output and inflation a few times, as new information trickled in. Throughout the process, the Fed remained predictable in its actions, highlighting that good communication is key.

Central banks have another side to watch, too, namely the green transition. Inflation and output may become more volatile as we undergo a transformation of the energy sector and supply chains. In the short term, carbon pricing and rising climate investments could reinforce inflationary pressures.

Intensifying climate change adds to the array of challenges that monetary policy needs to adjust to. As extreme weather events become more frequent, central banks must pay even greater attention to longer-term inflation expectations. Though the reaction of each central bank will depend on its mandate, clear communication is essential to guide market expectations and ensure that policy decisions are well understood.

Climate Capital

Where climate change meets business, markets and politics. Explore the FT’s coverage here.

Are you curious about the FT’s environmental sustainability commitments? Find out more about our science-based targets here

Being honest with your employees is key to staff retention, Cairn Independent operations director Laura Young has insisted.

She was responding to an audience question about the best way to keep people within advice businesses at the Lang Cat’s HomeGame 4 event in Edinburgh yesterday (3 October).

“In terms of retaining the team, the only constant is change,” Young said.

“People’s needs and wants evolve, and what they initially say they want might not be the same as what they desire by the end of the process.

“My focus is on understanding what that looks like for them throughout the journey.”

She said there is always a risk someone may leave for another opportunity, but “the key is to focus on what that individual wants” and whether you can offer it.

“I’ve found that being honest with the team helps,” she said. “It might not always work out, but you’re never caught off guard.”

She said maintaining regular communication is also invaluable in staff retention.

“You know where you stand, and from both a management and team perspective, that’s valuable.

“It’s about managing expectations on both sides. By having regular check-ins, you can ask, ‘Is this what you expected? If not, why? How can we adapt?’

“That kind of approach helps ensure alignment.”