Published: 07 June 2022
Location: London, UK
By Suzanne Evans, Director, Political Insight
Boris Johnson won a vote of ‘no confidence’ last night, securing the support of 211 of his MPs versus 148 who voted against him. However, the scale of revolt against his leadership was greater than those faced by Theresa May, John Major and Margaret Thatcher in similar votes, and showed 41% of Conservative MPs do not currently have confidence in the Prime Minister’s leadership. Strip out MPs not serving as ministers or in other official posts, and the result suggests some three-quarters of backbenchers want him ousted. However, Johnson insisted after the vote that he had secured a 'decisive' victory, and the Government could now 'move on' and focus on what 'really matters to people'.
The weekend Jubilee Celebrations gave the economy a massive boost, according to analysis by Barclaycard Payments. Restaurant spend rose 41.5%; pub, club and nightlife spend was up 74.2%; 38.8% more was spent on public transport; and retail gained 6.9% over the course of the weekend, the credit card company said.
Generally, however, retail sales, both in-store and online, are falling, according to monthly data collected by the British Retail Consortium (BRC) from Britain’s medium and larger retailers. In May, sales fell for the second month in a row, declining by 1.1% compared to May 2021, a sharper slowdown than in April, when BRC figures showed a fall of 0.3% when compared to April 2021. "It is clear the post-pandemic spending bubble has burst, with retailers facing tougher trading conditions, falling consumer confidence, and soaring inflation impacting consumers' spending power," the BRC's Helen Dickinson says. Although sales of clothing, footwear and accessories, including in fashion and beauty, rose, as people prepared for holidays and summer social occasions, including the Jubilee, bigger ticket items, such as furniture and electronics, fared less well. The BRC collects from the UK's medium and larger retailers.
Data from Barclaycard Payments also reveals the average amount that people are spending on utilities increased by 34.5% more in May compared to a year ago.
Chancellor Rishi Sunak confirmed yesterday that the Treasury will impose a wider windfall tax on British electricity generators to bring in billions of pounds to help households struggling with soaring food and energy costs. He told the Treasury Select committee that the amount of extra borrowing needed to pay for the £15bn cost of living package will depend on the levy. Despite having pushed the Chancellor towards a windfall tax on oil companies, the Labour party accused Sunak of causing uncertainty and damaging investment plans by expanding the tax to electricity generators.
New car registrations declined by more than a fifth in May, marking the second-weakest May in three decades, the Society of Motor Manufacturers and Traders (SMMT) says. New car registrations fell 20.6% in the month to 124,394 vehicles because of “continued global supply chain disruptions,” according to the industry group. The market is currently 32.3% below the 2019 pre-pandemic level despite "strong" order books. However, the sale of electric vehicles and hybrids rose 17.7% and 12% respectively, meaning deliveries of electrified vehicles accounted for three in 10 new cars. Of new cars sold in May, the Vauxhall Corsa was the best-selling, followed by the Ford Puma, and the Ford Kuga. The Volkswagon Golf and the Mini were the fourth and fifth best sellers.
FTSE 100 manufacturer Melrose Industries has sold its Ergotron business to funds managed by The Sterling Group for $650m (£520m) in cash. Ergotron designs, makes and distributes ergonomic products for use in a variety of working, learning and healthcare environments, Melrose said yesterday. Completion is expected to occur in the third quarter of 2022 and is conditional upon US antitrust approvals.
Capita plc has secured a three-year extension to its contract with NHS England and NHS Improvement (NHSEI) to continue fulfilling its work with Primary Care Support England (PSCE), in which Capita delivers digital, logistical and support services to all of England’s primary care practitioners working in the NHS. This includes GPs, dentists, opticians and pharmacists, Capita said. The contract extension is worth £94m over the three year period and will run until the end of August 2025. Capita secured the existing PCSE contract in 2015.
Sainsbury’s has revealed a £3.8 million pay and bonus package for CEO Simon Roberts. He picked up £2.8 million in bonuses for the year to March 5, on top of his £875,000 a year salary and other benefits. Last year, he earned £1.3 million, having started in the role part-way into the 2020-21 financial year having taken over from Mike Coupe in June 2020, and having waived his £1 million annual bonus due to the pandemic. Roberts’ pay is 183 times larger than that of the median worker at the supermarket and represents an increase of 31% over the year. Sainsbury’s has given staff directly employed in its stores a 5.4% raise.
Nigel Oddy, CEO of high street fashion retailer New Look, is to step down from the company. He joined the business in April 2019 as COO after executive positions at House of Fraser and The Range. He was at the helm of the group when it undertook a Company Voluntary Arrangement (CVA) restructuring process that led to the closure of 39 stores across its estate, and a return to profit. The hunt to identify his successor is said to be "well advanced".
Elon Musk has threatened to call off his $44bn (£35bn) takeover of Twitter, saying the social media company is “actively resisting and thwarting his information rights” by refusing to hand over data on how many fake accounts it has. Musk has queried Twitter’s claims that less than 5% of its daily active users were bots or scammers and last month put his takeover “on hold” while he sought further information. Twitter boss Parag Agrawal has previously said he could not respond to Musk´s questions because the company used private information as part of its estimates which it could not share.
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