Commercial news round-up: Cost of living putting young people in debt, Help to Buy impact, Brexit impact on creative industries, Tesco combats food waste
updated on 19 October 2017
Debt and inflation are currently the two main watch-words for anyone honing their understanding of the economy and business matters. Read the round-up below for the latest news developments.
- Low income growth and the increasing cost of living caused by inflation has led to more and more young people going into debt to make ends meet. The trend is concerning the Financial Conduct Authority (FCA), which is taking action to curb long-term credit card debt and high-cost pay-day loans. Chief executive Andrew Bailey said: "We should not think this is reckless borrowing, this is directed at essential living costs. It is not credit in the classic sense, it is [about] the affordability of basic living in many cases." FCA research also revealed that half of UK adults are financially vulnerable, with one in six unable to cope with a £50 increase in bills.
- Housebuilder Bellway’s profits rose by over 12% over the year to 31 July, as building firms benefited from the government’s Help to Buy scheme. Theresa May has pledged to put an extra £10 billion into the scheme, but critics have warned that Help to Buy increases demand rather than supply, making the programme more advantageous for the construction industry than it is for would-be house buyers.
- The Guardian is investing in minority stakes in technology start-ups working in fields such as artificial intelligence, which could overlap with journalism. Right-wing newspaper The Daily Telegraph has had fun pointing out its traditionally left-leaning rival’s foray into venture capitalism, but it’s worth remembering that The Guardian occupies a more centre-ground position than some critics would have you believe. In recent years the paper supported the Liberal Democrats and was firmly opposed to Jeremy Corbyn’s election as leader of the Labour Party on a left-wing platform.
- Low-pay culture is “endemic” in United Kingdom, with the result that one in four low-wage workers are stuck in their poorly paid jobs with little chance of being able to earn more, according to the Social Mobility Commission.
- Supermarket giant Tesco will start selling green satsumas and clementines in an effort to reduce food waste. Tesco has pointed out that green-skinned fruit is still “perfectly ripe” and is just as sweet as orange-coloured fruit.
- UK creative industries such as film and video games companies could be damaged by Brexit if the country’s exit from the European Union involves immigration restrictions, trade body The Creative Industries Federation has warned.
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