UK ministers appoint insolvency advisers for Thames Water collapse \u2018contingency plans\u2019<\/p>\n
UK ministers have lined up insolvency practitioners to prepare for the potential collapse of Thames Water<\/strong>, Britain\u2019s biggest water company.<\/p>\n Steve Reed<\/strong>, the environment secretary, has signed off the appointment of FTI Consulting to advise on contingency plans for Thames Water to be placed into a Special Administration regime (SAR), in news first reported by Sky News.<\/p>\n This puts FTI Consulting as the frontrunner to act as the company\u2019s administrator if it fails to secure a private sector bailout – although such an appointment would take place in court.<\/p>\n Share<\/a><\/p>\n Updated at\u00a005.49 EDT<\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Hannah Slaughter<\/strong>, a senior economist at the Resolution Foundation thinktank, said that while the unemployment rate remained steady at 4.7%, it was up from 4.2% a year ago and 3.9% before the pandemic.<\/p>\n She said:<\/p>\n The UK\u2019s post-pandemic labour market was red hot. But that period is officially over \u2013 the labour market is loose and getting looser, having shed 165,000 payrolled jobs over the past eight months.\u201d<\/p>\n<\/blockquote>\n She added that the job losses were concentrated in low-paying sectors such as retail and hospitality. She said it meant the government was likely to push back against campaigns for a big increase to the minimum wage next year, fearing it would lead to even larger job losses.<\/p>\n Share<\/a><\/p>\n Here is the government\u2019s, and unions\u2019 response to the latest job market data data from the ONS.<\/strong><\/p>\n Employment minister Alison McGovern<\/strong> said:<\/p>\n Today\u2019s figures show real progress with economic inactivity down, and 384,000 jobs added to the economy since last summer, putting more money in people\u2019s pockets.<\/p>\n We are determined to see unemployment fall that\u2019s why we\u2019re focused on getting people into good jobs by joining up work, health and skills support and transforming jobcentres to focus on genuine support not ticking boxes.<\/p>\n<\/blockquote>\n Paul Nowak<\/strong>, general secretary of the TUC which comprises 48 trade unions and represents 5.5 million workers, said:<\/p>\n It is welcome that wages continue to grow and that employment rates are still rising.<\/p>\n However, years of Tory cuts and underinvestment have left big challenges in the jobs market \u2013 including continued growth in the use of insecure zero hours contracts.<\/p>\n The government is raising national investment, repairing public services, and improving the support people need to get into work. This is putting Britain on the road to recovery.<\/p>\n But more is needed. Bold action must continue to match the size of the problems we face. This should include improved support for disabled workers and a comprehensive youth guarantee.<\/p>\n<\/blockquote>\n On the latest zero-hours contracts figures, which show more than a million workers employed on a zero-hours contract, he <\/strong>added:<\/p>\n There are still far too many people trapped on zero-hours contracts, unsure of how much they\u2019ll make from one week to the next.<\/p>\n But Tory and Lib Dem Lords have been voting to block new rights for workers to a proper contract with regular hours. The sight of hereditary Peers voting against workers\u2019 rights belongs in another century.<\/p>\n Working people need the Employment Rights Bill delivered in full.<\/p>\n<\/blockquote>\n Share<\/a>High river temperatures force French power plant to reduce production<\/p>\n French nuclear power stations are struggling in the heatwave \u2013 after a swarm of jellyfish forced the shutdown of the Gravelines power plant on the North Sea coast, high river temperatures in other parts of the country mean that another plant will have to reduce output.<\/p>\n Power production at France\u2019s Bugey 3 nuclear reactor is expected to be reduced by 500 megawatts (MW) on Wednesday, as high river temperatures reduce the plant\u2019s ability to take in cooling water.<\/p>\n A heatwave across France has led to several warnings of power reductions at a number of nuclear plants, particularly on the Rh\u00f4ne river in the east and the Garonne in the west.<\/p>\n The high water temperature warnings for the Saint Alban plant – down river from the Bugey site – and the Golfech site in the west were moved to Thursday, but restrictions have not yet been issued.<\/p>\n Nuclear power accounts for about 70% of total French power consumption every year, but August is the main holiday season, reducing demand for electricity.<\/p>\n Today,<\/p>\n Share<\/a><\/p>\n The Recruitment and Employment Confederation\u2019s deputy chief executive Kate Shoesmith<\/strong> said:<\/p>\n The labour market remains challenging, with many businesses maintaining a cautious approach to hiring. But if we are to harness the optimism businesses tell us they have for future recruitment later this year, we will need the autumn budget to offer employers a bit more bandwidth on costs.<\/p>\n The resilience of the UK labour market is apparent in today\u2019s official statistics, with the number of people in work slightly up and unemployment only slightly higher than in the previous quarter. Tackling economic inactivity, which saw a fall over both the quarter and the year, remains the single greatest challenge for this government if they are to ever achieve their goal of 80% employment.<\/p>\n Our labour market picture is mixed. Construction and other blue-collar industries are showing a gentle return to hiring, which is often a strong indicator for the wider economy, alongside sustained demand for engineering skills. But hospitality and retail saw a slow start to the summer amid cost headwinds.<\/p>\n With pay growth steadying overall after a volatile few years \u2013 prompted in part by inflating-busting rises in national minimum wage rates \u2013 now is the time for pragmatism from the Low Pay Commission before they make any further decisions on pay rates, and as the Bank of England continues to monitor interest rates closely. Business cannot afford further cost rises.<\/p>\n<\/blockquote>\n Share<\/a><\/p>\n The breakdown of the ONS data<\/a> shows that the wholesale, retail, hotels and restaurants sector posted the strongest annual regular growth rate (excluding bonuses), at 6.8%, in April to June.<\/p>\n The finance and business services sector, which pay out more bonuses, had the lowest annual regular growth rate, at 3.1%.<\/p>\n Average annual pay growth was 5.7% for the public sector, and 4.8% for the private sector.<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.26 EDT<\/p>\n Turning to the UK labour market: it is clearly losing momentum, with employers cutting back on bonuses and hiring.<\/p>\n Suren Thiru<\/strong>, economics director at the Institute of Chartered Accountants in England and Wales, said:<\/p>\n These figures signal growing turmoil in the UK labour market, with April\u2019s leap in employment costs and a flagging economy pushing more businesses to actively cut headcount and cap pay awards.<\/p>\n Wage growth is likely to weaken over the course of the year as softening economic conditions, rising redundancies and elevated staffing costs increasingly hinder pay settlements.<\/p>\n The UK jobs market is facing more pain in the coming months with higher labour costs likely to lift unemployment moderately higher, particularly given growing concerns over more tax rises in this Autumn\u2019s Budget.<\/p>\n While these disheartening figures will reassure rate-setters that last week\u2019s policy loosening was the right call, the pace at which the labour market is currently cooling is unlikely to be sufficient to prompt another rate cut in September.<\/p>\n<\/blockquote>\n The Bank of England cut interest rates for the fifth time<\/a> in a year last Thursday amid concerns over a weakening economy, but warned that rising food prices could drive inflation to 4% (the central bank is charged with keeping inflation at 2%).<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.21 EDT<\/p>\n Oil prices are rising as the extended tariff truce between the US and China eased worries that an escalation of their trade war would disrupt the global economy.<\/strong><\/p>\n Brent crude futures gained 0.4% to $66.90 a barrel, while US West Texas Intermediate crude futures also rose by 0.4% to $64.20.<\/p>\n Stock markets in the Asia-Pacific region mostly rose, with Japan\u2019s Nikkei index hitting a record closing high and finishing 2.15% higher.<\/p>\n Australian stocks extended their gains for a second day, and also reached a new intra-day all-time high. China is the main export destination for Australian goods.<\/p>\n\n
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