The households\u2019 saving ratio \u2013 which estimates the percentage of disposable income Britons save rather than spend \u2013 slumped by 1.1 percentage points to 10.9%, although this remains historically high.<\/p>\n
The signs of a fresh hit to living standards come despite the latest snapshot confirming that the UK economy grew by 0.7% in the first quarter, the fastest rate in the G7 group of rich nations.<\/p>\n
Liz McKeown<\/strong>, the ONS director of economic statistics, said:<\/p>\n The saving ratio fell for the first time in two years this quarter, as rising costs for items such as fuel, rent and restaurant meals contributed to higher spending, although it remains relatively strong.<\/p>\n<\/blockquote>\n Ministers had welcomed the initial first-quarter growth estimate<\/a> as evidence that Labour\u2019s economic policies were starting to bear fruit after a rocky first few months in office. However, the more detailed snapshot highlights the squeeze on living standards, which risks undermining Keir Starmer\u2019s promise for households to feel the benefits.<\/p>\n Share<\/a><\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Closing summary<\/p>\n On Wall Street, the S&P 500 and the Nasdaq opened at fresh record highs, amid a wave of optimism over the United States striking trade deals.<\/strong><\/p>\n Canada scrapped its digital services tax targeting US tech firms, hours before it was due to take effect, in an attempt to kickstart stalled trade negotiations with Donald Trump<\/strong>\u2019s administration.<\/p>\n The UK-US trade deal has come into effect<\/a> today, which means lower tariffs for UK carmakers (10%) and the aerospace sector (0%).<\/p>\n A trade delegation from the European Commisison is heading to Washington DC today to resume talks on a tariff deal. European trade commissioner Maro\u0161 \u0160ef\u010dovi\u010d will travel to Washington tomorrow night and hinted the EU and the US are close to a deal.<\/strong><\/p>\n In Europe, the FTSE 100 index in London dropped by 25 points, or 0.3%, to 8,773.<\/p>\n Germany\u2019s Dax is down 0.6% while France\u2019s CAC slipped by 0.3%.<\/p>\n UK households faced a renewed cost of living squeeze in the first three months of 2025 amid increases in taxes and inflation, official figures show, despite the economy growing at the fastest rate in the G7.<\/strong><\/p>\n The Office for National Statistics<\/a> said an important measure of living standards \u2013 real household disposable income per head \u2013 fell by 1% in the first quarter after growth of 1.8% in the final three months of 2024, in the first quarterly decline for almost two years.<\/p>\n The households\u2019 saving ratio \u2013 which estimates the percentage of disposable income Britons save rather than spend \u2013 slumped by 1.1 percentage points to 10.9%, although this remains historically high.<\/p>\n The signs of a fresh hit to living standards come despite the latest snapshot confirming that the UK economy grew by 0.7% in the first quarter, the fastest rate in the G7 group of rich nations.<\/p>\n The UK government has called for an investigation into the conduct of bosses at one of the UK\u2019s largest oil refineries after it collapsed into administration on Monday, prompting concern about job losses and disruption to fuel supplies.<\/strong><\/p>\n Sources familiar with the situation said that government officials had been growing increasingly fearful about the finances of State Oil, which owns the Prax Lindsey refinery in north Lincolnshire<\/a>, since April.<\/p>\n The heavily lossmaking company assured ministers it was in good health during a meeting at the Prax site in May but is understood to have suddenly admitted in the past week that it was on the verge of insolvency.<\/p>\n The company, the only British business to own one of the UK\u2019s five key refineries, is understood to have failed to comply with multiple requests from Westminster to open its books as it plunged towards failure.<\/p>\n The government said workers had been \u201cbadly let down\u201d.<\/p>\n The energy secretary, Ed Miliband, is now understood to be considering whether the wider oil refinery sector \u2013 which is struggling with low profit margins \u2013 should be allowed to tap a financial support scheme announced in last week\u2019s industrial strategy and originally targeted at energy intensive sectors such as steel<\/a>.<\/p>\n Thank you for reading. We\u2019ll be back tomorrow. Take care! \u2013 JK<\/p>\n Share<\/a><\/p>\n Updated at\u00a010.26 EDT<\/p>\n European trade commissioner hints EU and US close to deal European trade commissioner Maro\u0161 \u0160ef\u010dovi\u010d<\/strong> will travel to Washington tomorrow night hinting the EU and the US are close to a deal.<\/p>\n He revealed it was a good time get down to drafting an agreement.<\/p>\n A delegation has gone ahead of him for technical talk after the latest proposals were sent to Brussels by the Trump administration last Thursday.<\/p>\n The clock is ticking down to Trump\u2019s self-imposed deadline for a deal of 9 July with a threat of 50% tariffs on all imports if nothing is struck. \u0160ef\u010dovi\u010d said at a briefing in Brussels:<\/p>\n The 9th of July is around the corner. So for me, it\u2019s always a good sign when we kind of move from, I would say, exchange of views, into the drafting process.\u201d<\/p>\n I have to say that, of course, you have to be very much focused on the results, because we are two biggest trading partners on this planet\u201d<\/p>\n As you know, we received first drafts of proposals for the for the eventual agreement in principle we are working on that.<\/p>\n<\/blockquote>\n Share<\/a>Nissan to cut jobs at Sunderland factory<\/p>\n Nissan Motor plans to cut jobs at its Sunderland factory, as part of a 15% reduction in its global workforce<\/a> announced by chief executive Ivan Espinosa<\/strong> in May.<\/p>\n The Japanese carmaker said it wants to increase the efficiency of the Sunderland plant in northeastern England, where it employs 6,000 people, to make it a \u201cleaner, more flexible\u201d operation.<\/p>\n It did not say how many job cuts it is targeting. Japan\u2019s Kyodo News, which earlier reported the planned cuts, said Nissan intends to lay off 250 workers.<\/p>\n Nissan said in a statement:<\/p>\n We will begin discussions with some of our employees at the Sunderland plant this week about voluntary retirement opportunities and support from the company.<\/p>\n<\/blockquote>\n As it slims down production, Nissan said in May it would make a further 11,000 job cuts, after 9,000 job losses announced in November<\/a>, and close seven factories worldwide, although Sunderland is not expected to be among them.<\/p>\n The factory is seen as critical to Nissan\u2018s European operations and it plans to make the new version of its Leaf EV there.<\/p>\n Separately, Reuters reported today that Nissan has asked some suppliers in Britain and the European Union to delay payments to free up short-term funds, as it scrambles to boost cash.<\/p>\n A logo of Nissan is seen inside a Nissan car dealer in Arnhem, Netherlands. Photograph: Piroschka Van De Wouw\/ReutersShare<\/a><\/p>\n Meanwhile, Sky is reporting that Ed Miliband<\/strong>, the energy security secretary is considering bringing oil refineries within a key state support scheme.<\/p>\n Exclusive: Ed Miliband, the energy security secretary, is exploring bringing oil refineries within the scope of a key state support scheme amid calls for the owner of the collapsed Prax Lindsey refinery in Lincolnshire to face an Insolvency Service probe. https:\/\/t.co\/W1Ga9rWRYz<\/a><\/p>\n \u2014 Mark Kleinman (@MarkKleinmanSky) June 30, 2025<\/a><\/p><\/blockquote>\n Share<\/a>EU trade delegation heads to Washington for talks on tariff deal While the trade deal between the UK and the US<\/a>, announced on 8 May, kicks in today, a trade delegation from the European Commisison will land in Washington DC later today to resume talks on a tariff deal.<\/p>\n With nine days to go before Donald Trump<\/strong>\u2019s self imposed deadline, the question being asked across capitals and the US is whether the EU will follow the UK and settle on a thin deal dealing with the main sectors including cars and steel along with semiconductors and pharmaceuticals, sectors on which the US president is still threatening import duties.<\/p>\n Speculation is mounting as to what the EU would be prepared to compromise on to get a reduced or zero tariff across the line.<\/p>\n Could the EU follow Canada and abandon threatened taxes on digital services?<\/p>\n The government announced late Sunday that it would scrap its digital services tax on US technology companies in order to get trade talks re-opened.<\/p>\n A spokesman for the European Commission said on Monday that neither the Digital Services Act or the Digital Markets Act were on the table. But there was no mention of tax in a daily press conference in Brussels.<\/p>\n Share<\/a>UK energy minister: ‘longstanding issues’ with Prax, workers ‘badly let down’<\/p>\n The UK energy minister, Michael Shanks,<\/strong> said there have been \u201clongstanding issues\u201d with this company, and \u201cworkers have been badly let down\u201d. He demanded an immediate investigation into the conduct of the directors.<\/p>\n There have been longstanding issues with this company and workers have been badly let down.<\/p>\n The Secretary of State is today writing to the Insolvency Service to demand an immediate investigation into the conduct of the directors, and the circumstances surrounding this insolvency.<\/p>\n The government will ensure supplies are maintained, protect our energy security, and do everything we can to support workers and the local community, including engaging with trade unions and industry bodies.<\/p>\n The company has left the government with very little time to act. The government is supporting the Official Receiver to carry out their statutory duties, including managing the situation on the site to determine next steps. This will include urgently reporting back on all potential uses of the site, prior to a wind-down of the refinery.<\/p>\n The government believes that the business\u2019s leadership have a responsibility to the workers and the local community. We call on them to do the right thing and support the workers through this difficult period.<\/p>\n<\/blockquote>\n Labour MP for Rutherglen and Hamilton West, Michael Shanks, makes a speech during the Labour Party annual conference in Liverpool, Britain, October 9, 2023. Photograph: Phil Noble\/Reuters<\/p>\n As a reminder, Prax Lindsey Oil Refinery<\/strong> filed for insolvency on Sunday, and an official receiver has been appointed. The Official Receiver is an officer of the court who acts independently of the government, responsible for managing the winding up in the best interest of creditors. This includes protecting and collecting assets for creditors; finding out the reasons for the insolvency; and dealing with creditors\u2019 claims.<\/p>\n Prax Group, led by chairman and chief executive Sanjeev Kumar Soosaipillai<\/strong>, purchased the Lindsey Oil Refinery from Total in 2021. Lindsey is the smallest refinery in the UK. It is located next to the Phillips66 Humber refinery, which is the dominant fuel supplier in Humberside and continues to operate at profit.<\/p>\n Financial reports indicate that Lindsey Oil Refinery recorded losses of around \u00a375m between Prax acquiring it in 2021 and February 2024.<\/p>\n The company was unable to adequately answer repeated requests from the energy secretary to share information about its financial gap, and therefore unable to provide the government with the information needed to assess Lindsey\u2019s financial viability.<\/p>\n Share<\/a> My colleague Rob Davies has more details:<\/p>\n One of the UK\u2019s largest oil refineries \u2013 and the only big one owned by a British company \u2013 has collapsed into administration, prompting calls for the government to intervene urgently to protect fuel supplies and jobs.<\/p>\n State Oil<\/a><\/strong>, which owns the Prax Lindsey<\/strong> refinery<\/strong> in north Lincolnshire, called in administrators on Monday, Sky News reported first, prompting concern from the trade union, Unite.<\/p>\n The failure is likely to cause a headache for government officials, given that the company\u2019s 5.4m tonne-a-year capacity represents nearly a tenth of the national total. About 180 people work at State Oil, and 440 more are employed at the Prax Lindsey refinery, according to Sky.<\/p>\n State Oil is part of the Prax Group, which is majority owned by the seldom-seen husband and wife team Winston and Arani Soosaipillai<\/strong>, who bought the company from the French oil group Total<\/strong> in 2021. A further 20% is held by family trusts connected to them.<\/p>\n Prax Lindsey is the only one of the UK\u2019s five leading oil refineries to have a UK owner; the remainder have US and Indian parent companies.<\/p>\n The group also has oilfield investments in Shetland and owns roughly 200 petrol stations in the UK under the Breeze and Harvest Energy brands, but these are outside the insolvency process.<\/p>\n Lindsey Oil Refinery Eastfield Rd Killingholme, near Immingham. Ewan Gibbs, historian of energy, said on X:<\/p>\n This is a major crisis in the British oil and gas sector. Since 2020, Prax have bought Lindsey oil refinery, oilfields to the West of Shetland and the gas plant at the Sullom Voe terminal on Shetland. These are important operations extending from drilling to refining products. https:\/\/t.co\/UaFFYjiySL<\/a><\/p>\n \u2014 Ewan Gibbs (@ewangibbs) June 30, 2025<\/a><\/p><\/blockquote>\n Share<\/a><\/p>\n It is one of only six major oil refineries in the UK.<\/p>\n Prax owns the Lancaster oilfield in the British North Sea, a geologically complex project that has been stuck in an early production phase for years. it also runs more than 200 fuel service stations across the country.<\/p>\n At Prax Lindsey Oil Refinery, we\u2019re proud to be one of only six major refineries in the UK – a highly complex, world-class supplier of fuels powering the nation. We manage the Finaline pipeline, moving fuel to Heathrow via HOSL and the West London system. #ILoveLindsey<\/a> pic.twitter.com\/NgorpwsKLP<\/a><\/p>\n \u2014 Prax (@PraxGroup) May 28, 2025<\/a><\/p><\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a007.10 EDT<\/p>\n Official Receiver appointed as liquidator to Lindsey oil refinery<\/p>\n The Insolvency Service has reported that the Official Receiver, Gareth Jonathan Allen, has been appointed as the liquidator of the Lindsey oil refinery<\/a>.<\/strong><\/p>\n They say:<\/p>\n On 30 June 2025, a winding-up order was made against Prax Lindsey Oil Refinery Limited, Prax Storage Lindsey Limited, and Prax Terminals Killingholme Limited. The court appointed the Official Receiver, Gareth Jonathan Allen, as Liquidator.<\/p>\n<\/blockquote>\n The Official Receiver will wind-up the companies in accordance with his statutory duties, and will investigate the cause of the companies\u2019 failure and the conduct of current and former directors, they add.<\/p>\n Creditors who are owed money by Prax, or who have paid for goods and services, can register as a creditor<\/a> in the liquidation.<\/p>\n Share<\/a>Lindsey oil refinery owner calls in administrators; government urged to act Newsflash: The British high court has appointed Teneo as the administrator of the owners of the Lindsey oil refinery in Lincolnshire, <\/strong>Reuters reports<\/strong>.<\/strong><\/p>\n State Oil Limited and Prax Treasury Limited <\/strong>own the Lindsey refinery, which is located on a 500-acre site five miles from the Humber Estuary.<\/p>\n Joint administrator Clare<\/strong> Boardman<\/strong> says:<\/p>\n \u201cWe will be considering all options for the Group, including the prospect of a sale for the Group\u2019s upstream business and retail operations in the UK and Europe, all of which remain outside of insolvency.\u201d<\/p>\n<\/blockquote>\n Sky News<\/strong> is reporting that that State Oil was forced to call in administrators amid mounting losses at the refinery.<\/p>\n Unite<\/strong> general secretary Sharon<\/strong> Graham<\/strong> is urging ministers to take action to save jobs:<\/p>\n \u201cThe Lindsey oil refinery is strategically important, and the government must intervene immediately to protect workers and fuel supplies.<\/p>\n \u201cUnite has constantly warned the government that its policies have placed the oil and industry on a cliff edge. It has failed to act and instead put its fingers in its ears.<\/p>\n \u201cThe government needs a short-term strategy to keep Lindsey operating and a sustainable long-term plan to fully protect all oil and gas workers.\u201d<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n Updated at\u00a006.46 EDT<\/p>\n UK households hit by squeeze on living standards despite fastest growth in G7<\/p>\n Here\u2019s our full story on the UK GDP data:<\/p>\n UK households faced a renewed cost of living squeeze in the first three months of 2025 amid increases in taxes and inflation, official figures show, despite the economy growing at the fastest rate in the G7.<\/p>\n The Office for National Statistics<\/a> said an important measure of living standards \u2013 real household disposable income per head \u2013 fell by 1% in the first quarter after growth of 1.8% in the final three months of 2024, in the first quarterly decline for almost two years.<\/p>\n The households\u2019 saving ratio \u2013 which estimates the percentage of disposable income Britons save rather than spend \u2013 slumped by 1.1 percentage points to 10.9%, although this remains historically high.<\/p>\n The signs of a fresh hit to living standards come despite the latest snapshot confirming that the UK economy grew by 0.7% in the first quarter, the fastest rate in the G7 group of rich nations.<\/p>\n Liz McKeown<\/strong>, the ONS director of economic statistics, said:<\/p>\n The saving ratio fell for the first time in two years this quarter, as rising costs for items such as fuel, rent and restaurant meals contributed to higher spending, although it remains relatively strong.<\/p>\n<\/blockquote>\n Ministers had welcomed the initial first-quarter growth estimate<\/a> as evidence that Labour\u2019s economic policies were starting to bear fruit after a rocky first few months in office. However, the more detailed snapshot highlights the squeeze on living standards, which risks undermining Keir Starmer\u2019s promise for households to feel the benefits.<\/p>\n\n
![\"Lisa](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/1751306833_250_Lisa-OCarroll-byline-004.jpg\")
Lisa O’Carroll<\/p>\n\n
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Lisa O’Carroll<\/p>\n\n
![\"Rob](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/1751306833_443_RobDavies.jpg\")
Rob Davies<\/p>\n
Photograph: Stephen Parrott\/AlamyShare<\/a><\/p>\n\n
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![\"Graeme](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/06\/1751306834_674_Graeme-Wearden,-L.png\")
Graeme Wearden<\/p>\n\n
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