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The cooling UK labour market is continuing to bring down wage growth, according to new data that will help to reassure the Bank of England that price pressures are easing.

The median pay award in the private sector fell from 4.4 per cent in the three months to July to a two-year low of 4.1 per cent in the three months to August, according to new figures published on Wednesday by Incomes Data Research.

A pick-up in public sector pay growth meant the median award across the economy as a whole remained stable — a rise of 4 per cent.

Zoe Woolacott, senior researcher at IDR, said the public sector was “currently in the catching-up phase, after a lengthy period in which pay awards lagged behind those in the private sector”. But she added that if inflation fell further, “pay awards are likely to follow it, eventually”.

IDR’s figures corroborate similar data published by the research group Brightmine last week, which showed most annual pay awards were bunched around the 4 per cent mark in the three months to August, with fewer employers handing out bumper payouts.

Sheila Atwood, content manager at Brightmine, said this was due not only to the recent fall in inflation, but also reflected a weaker labour market where “the number of under- or unemployed individuals is starting to outpace the number of job openings”.

The BoE is keeping a close watch on these indicators of pay growth, as well as on official earnings data and its own business surveys, as it seeks to gauge how far inflationary pressures in the economy are easing.

UK inflation held steady at 2.2 per cent in August — far below its 2022 peak above 11 per cent and close to the BoE’s 2 per cent target. But services price inflation has edged up and this week’s increase in regulated energy prices means headline inflation is also likely to rise at the end of the year.

The BoE left interest rates unchanged last month, after August’s cut to 5 per cent, with governor Andrew Bailey arguing that for inflation to stay low, “we need to be careful not to cut too fast or by too much”.

The more hawkish members of the Bank’s monetary policy committee worry that the pandemic and energy crisis might have triggered a lasting change in the way the UK labour market behaves, with workers able to bargain harder against a backdrop of staff scarcity, and businesses better able to pass on costs to consumers.

Official data shows that UK average earnings growth, excluding bonuses, slowed to 5.1 per cent in the three months to May — down from last year’s peak, but still well above recent norms.

However, the labour shortages that fuelled wages over the past two years have now dissipated. Adzuna, the job search engine, said last week that competition for jobs was at its highest level in three years, with more than two jobseekers for every vacancy after the number of jobs advertised in August fell 17.5 per cent compared to a year earlier.

Tony Wilson, director at the Institute for Employment Studies, said that with competition for jobs “returning to more normal levels” and employers “filling their jobs pretty quickly”, this “should give the Bank of England a bit more confidence on future interest rate cuts”.

Economists at Goldman Sachs said on Tuesday that there was “significant room for private sector pay growth to normalise now that price inflation has fallen” but that it was still likely to remain above long-run averages, with public sector wage growth also set to remain firm on the back of recent pay deals.   

Nigel Blow, a long-serving former Harrods executive, has decided not to become the boss of department store Fenwick despite being due to start in the role this month, the BBC has learned.

Mr Blow worked at Harrods for 14 years from 1992 to 2007, a period when the luxury London store was owned by Mohamed Al Fayed.

It comes after the BBC broadcast a documentary last month based on the accounts of more than 20 women who said they had been sexually assaulted or raped by Al Fayed while working at Harrods.

Following the allegations against Al Fayed, Mr Blow declined to answer multiple requests for comment. A day after contacting Fenwick, however, the BBC was told he would not be taking up the post.

The BBC first attempted to contact Mr Blow on 21 September – and received no response to multiple subsequent requests.

On 30 September Fenwick was contacted to ask if it had any comment to make about the documentary and Mr Blow’s long-standing links with Harrods.

About 24 hours later, Fenwick told the BBC: “In July 2024, we announced that we would be appointing Nigel Blow as CEO of Fenwick. Nigel Blow has informed us that he will no longer be taking up this position.”

No reason for the decision has been given.

Fenwick is best known for its 140-year-old store in Newcastle, and has eight stores around the UK. It closed its branch on Bond Street in London earlier this year.

Mr Blow has been the chief executive of the privately-owned department store chain Morleys since 2019.

The BBC was told “no comment” when it called Morleys on Tuesday to ask if Mr Blow would retain his position at the firm. He is still listed as chief executive of Morleys on the LinkedIn social networking site.

He joined Harrods as a merchandise controller in 1992, rising to chief merchant of the store, with a seat on the board, in 2003.

There were media reports of Al Fayed’s alleged abuse of women during this period – a profile in Vanity Fair in 1995 alleged sexual misconduct against staff, then a documentary in 1997 and a book in 1998 alleged sexual assaults.

Al Fayed died last year aged 94.

Mr Blow left Harrods in 2007 to join the Irish retailer Brown Thomas.

In 2013 he took up a post with another Fayed company – this time as managing director of Turnbull and Asser, the shirt-maker with a Royal Warrant from Prince Charles.

It is owned by the Fayed family and chaired by Ali Fayed, Mohamed’s brother, where he stayed until 2017.

The BBC has been contacting as many former directors of Harrods as possible to ask what they knew about Al Fayed’s behaviour and ask for their reaction to the BBC’s investigation.

Another former Harrods executive, Andre Maeder, was recently announced as the new chief executive of the department store Selfridges.

He told the BBC he was “horrified” to watch the documentary about Al Fayed, but added he “never saw or heard anything” about his “abhorrent” behaviour.

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Sir Keir Starmer will take his mission to “reset” Britain’s relations with the EU to Brussels on Wednesday, but European capitals are warning that the UK prime minister should not expect an easy ride.

Although Starmer has improved the mood between London and its former EU partners, member states warn that familiar issues such as fisheries, a youth mobility deal and an objection to British “cherry picking” will loom over future talks.

The UK premier, who opposed Brexit, has insisted Britain will not rejoin the EU single market or customs union, prompting some member states to question whether Starmer’s plans amount to a full reset of relations. 

Downing Street said Starmer would discuss his ambitions for the next few months with European Commission president Ursula von der Leyen, European Council president Charles Michel and president of the European parliament Roberta Metsola.

He is focused on the idea of a wide-ranging EU/UK security pact, covering issues such as defence, migration and security, with a view to a summit between the two sides next spring, according to UK officials.

Starmer also wants to agree a veterinary deal to cut border friction on agrifood trade, an agreement on professional qualifications and a deal to help touring musicians from Britain to travel easily across the bloc, they added.

His chancellor Rachel Reeves has also suggested that Britain could become a rule taker for EU regulations covering established industries, such as chemicals, although both sides are sceptical about whether such a regime could work.

EU ambassadors, meeting ahead of the Brussels talks, said the commission should block what they said was a British tendency for “cherry picking” access to the EU single market, according to people briefed on the discussions.

While Starmer’s broad concept of closer ties with Brussels has widespread support among the EU’s 27 member states, stances diverge on what specific areas should be targeted.

A degree of confusion also prevails over what London wants in areas such as youth mobility and whether the UK is prepared to accept “dynamic alignment” with EU rules in order to secure a veterinary agreement.

Officials from von der Leyen’s office told member states at a hastily arranged briefing to ambassadors on Monday that the EU would prioritise areas such as citizens’ rights, fisheries and youth mobility.

Starmer has ruled out a return to “free movement”, but British ministers believe a compromise could be found with Brussels to allow greater opportunities for young people to move between the EU and UK.

The ambassadors also named their own wish lists of focus areas, according to the people, not all of which overlapped with the core priorities of either side, confirming the potential complexity of any future EU/UK deal.

“Everyone wants to see things improve,” said one of the people briefed on the meeting. “But until we know exactly what we are talking about, it’s hard to get too excited.”

Some countries urged von der Leyen to be cautious about any new initiatives, pointing out that the UK had been clear on its “red lines” and reminding the commission it should always put the EU’s interests first, the people said.

Any changes to the EU’s relationship with the UK will almost certainly require unanimity among its member states, many of whom still harbour grievances over London’s failed attempt to divide the bloc with bilateral approaches during the Brexit negotiations.

Starmer and von der Leyen’s meeting comes two weeks after UK and EU official advisory groups on the post-Brexit Trade and Cooperation Agreement called for greater co-operation between the two sides.

“The EU and the UK should co-operate over their respective legislation that has an impact on trade,” they wrote, citing new EU directives to monitor the effects of deforestation and sustainability.

They also called for “enhanced mobility” for businesses and citizens as well as “pragmatic” implementation of border checks that will be introduced this year by both London and Brussels. 

Meanwhile Reeves is planning to revive talks with China over improved economic and financial ties, with UK Treasury officials saying initial discussions were under way including a possible visit by the chancellor to Beijing.

Formal talks between London and Beijing on financial co-operation last took place in 2019 but were frozen once previous Conservative prime ministers toughened their stance on China.

Reeves has signalled she wants to improve trade with China as part of the new government’s drive to boost growth and the idea of a meeting next year — first reported by Sky News — will provide a focus for those efforts.

AN OUTDOOR clothing chain with over 300 branches has launched a huge closing-down sale as they prepare to shut one of its stores for good.

The major clothing brand has put up huge signs saying “Everything Must Go” after confirming the branch’s permanent closure.

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Trespass revealed that they would be closing their only store in Coventry.

The popular high-street retailer has not yet announced whether jobs will be affected.

The Sun has contacted Trespass for comment.

The Activewear brand employs more than 1500 people in the UK but has shut around half a dozen stores this year.

Trespass confirmed back in July 2023 that six of its UK outlets would shut down soon.

A year later, the branch in Norwich’s Chantry Palace shopping centre would shut, with “closing down” signs appearing in the windows.

The date of the closure was not specified at the time, but local media reported that the shutters came down for the last time on September 13.

Customers took to social media to share their sadness at the end of the store.

One wrote: “The days of high street shopping are over unless you are a coffee shop, restaurant or some large store with a good national reputation.”

However, all is not lost for the shop, as bosses announced it would move to a new location for the brand to maintain a presence in the city.

The new location will be in the Castle Quarter, with an opening date to be confirmed.

As for the now-vacant unit in Chantry Place, general manager Paul McCarthy said: “Trespass is leaving the centre and we are in talks with other retailers about the space.

“Just last week we welcomed Pop Specs to the centre and Ben & Jerry’s will be opening very soon too.”

The new tenant for the site has not yet been confirmed.

What is happening to the high street?

The Trespass news comes amid a wave of store closures across the UK.

Retailers are being squeezed by spiralling rents and mortgage rates as well as spikes in running costs.

That, combined with the rapid march towards online shopping as the dominant model in the sector, is leaving physical stores on the brink.

Since the start of last year alone high street favourites like Wilko, Paperchase and Ted Baker have all called in the administrators.

Elsewhere, Boots has announced plans to slash its branch numbers by 300.

But there are still some rays of sunshine in the market, with budget supermarkets Aldi and Lidl eyeing up hundreds of new stores between them.

Retail woes

Other retailers, such as Homebase, Boots, and Clarks, have been reducing the number of their high-street branches.

Rising rents, energy bills, and the cost of living have also caused many retailers to fail.

Several big retailers have fallen into administration in the past year, including Wilko, Paperchase, and most recently, The Body Shop and Ted Baker.

The Body Shop collapsed into administration on February 13, putting its almost 198 branches at risk of closure.

Since then, it has closed down 82 locations.

However, it’s not all bad news for the high street, as several other retailers and hospitality venues have plans to expand.

Beer giant Heineken announced plans to invest £39million to help reopen 62 previously shuttered British pubs.

Aldi has announced that it will open 35 new UK stores.

The openings form part of Aldi‘s long-term target of 1,500 stores in the UK.

The supermarket is set to invest £550million in expanding its UK footprint this year alone.

Aldi said each new store opening will create around 40 new jobs on average.

In recent months, Asda has been opening hundreds of convenience stores as it seeks to rival major players Tesco and Sainsbury’s.

B&M plans to open “not less than” 45 brand new stores across the UK in each of the next two consecutive years.

Purepay Retail Limited, the parent company of Bonmarché, Edinburgh Woollen Mill (EWM), and Peacocks, has said it wants to open 100 new high-street stores over the next 18 months.

It has yet to give the exact locations where it will open the 100 stores or when they will open.

One of the UK’s favourite bakery chains, Greggs, has exclusively revealed to The Sun plans to open more outlet branches by the end of 2025.

Home Bargains, which was running just under 600 branches as of last June, has said it wants to “eventually have between 800 and 1,000 retail outlets open”.

The major discounter has stopped short of saying when it wants to reach the 1,000 store target, however.

Primark is also opening new branches and investing and renovating more than a dozen of its existing shops.

Screwfix is set to open 40 new stores nationwide as its owner, Kingfisher, seeks to expand the DIY brand’s national presence.

The brand opened two new stores in March, and a further three new shops opened last month.

Retailers closing stores in 2024

RETAILERS have been hit by soaring inflation and a downturn in spending due to the cost of living crisis.

High energy costs and a move to shopping online are also taking their toll.

Some high street shops have closed due to businesses opening up in different locations such as larger retail parks.

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Shops may also close due to a number of other reasons, such as rising rents.

We explain which retailers are closing in 2024:

• Argos – The brand announced plans to close 100 standalone UK branches last year as it looks to move away from the high street and focus on expanding its presence in supermarkets.
• B&Q – The chain has over 300 shops across the UK, with two stores closing this year due to leases not being renewed. It has plans to open more in 2024 too.
• Boots – The health and beauty chain announced that it would be closing 300 stores last July. Closures are ongoing and this will see the retailer’s estate reduced from 2,200 to 1,900 shops.
• Clintons – Clintons mulled plans to close 38 shops in a bid to avoid insolvency late last year. We’ve listed the stores affected.
• Costa Coffee – The caffeine giant has around 2,000 sites nationwide, so chances are you’ll have one near you. The chain has shut the doors to dozens of its sites recently. We’ve revealed which stores are due to close this year.
• Iceland – The supermarket has more than 900 stores but closed nearly two dozen sites in 2023, and more selected shops are due to shut.
• Lidl – The supermarket, which has 950 stores, is changing up shop locations, which has meant that some stores have to close. But the retailer is also looking to open 12 new supermarkets.
• M&S – M&S, which runs 405 stores across the country, has been closing a string of branches across the country in a blow for shoppers. It’s not all bad news, though, because the chain also has big plans to open dozens of new shops.
• Trespass – The firm announced in July last year that it was closing six branches, but more are on the way.
• WHSmith – The retail giant, which runs over 1,100 stores, has shut eight stores since March 2023, but more are coming.

EPA

‘Keep holding feet to fire’

A TOP European airline is scrapping free food onboard flights, just days after another carrier dropped theirs.

KLM is looking into ditching the free sandwiches it currently offers to economy passengers.

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All travellers get the vegetarian sandwich and drink on their flight.

However, according to NL Times, the airline is considering “various concepts which make a wider range possible for a fee”.

A spokesperson said: “We are currently still in the research phase.

“The service will be introduced by the end of 2025 at the earliest.”

While passengers would still get free drinks such as coffee, tea and water, the only free food would be a small snack.

All other drinks such as alcohol and meals could become a paid-for option.

It comes just weeks after Air France – a sister company to KLM – confirmed they would be ditching their free food as well.

Passengers on short-haul flights were also once able to enjoy a sweet cookie at any time during the flight.

And on medium-haul flights passengers had an additional fresh sandwich for the rest of the journey.

But the new rules will mean only drinks such as tea, coffee and water will be free.

The two airlines are some of the last in Europe to still offer free food, with the majority having scrapped it.

Ryanair was one of the first budget airlines to scrap free food onboard.

This was followed by other low-cost airlines, with easyJet and Wizz Air also not offering free meals.

And most airlines only offer free meals if they are long-haul services.

British Airways scrapped complimentary meals on their short-haul flights back in 2017.

Back in the 1960s, food on planes was a much fancier affair.

Some passengers were offers whole roast joints and souffles, along with silver service.

Sun Travel recently flew on the airline with the “world’s best plane food” – here’s what we thought.

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