UK 

Train and Tube strikes: Dates and services affected

Jack Simpson
Thu, 28 September 2023 

Aslef general secretary Mick Whelan (centre) with striking rail workers on the picket line outside London Euston station - EDDIE MULHOLLAND for The Telegraph.

Passengers across the UK face further disruption after train drivers union Aslef and Tube workers union RMT announced yet more industrial action.

Members of Aslef have timed their latest walkouts to disrupt the Conservative Party Conference. The union has so far, called 12 one-day strikes during its 16-month dispute over pay.

The latest strikes will force 16 train operating companies to cancel all services, while a ban on overtime on separate days will seriously disrupt the network.


Aslef general secretary Mick Whelan said: “While we regret having to take this action – we don’t want to lose a day’s pay, or disrupt passengers, as they try to travel by train – the government, and the employers, have forced us into this position.

Our members have not, now, had a pay rise for four years – since 2019 – and that’s not right when prices have soared in that time.

“Train drivers, perfectly reasonably, want to be able to buy now what they could buy four years ago.”

London Underground workers, meanwhile, have announced fresh strikes in a dispute over job cuts and working conditions.

RMT general secretary Mick Lynch says station staff ‘have a vital role to play’ assisting passengers across the rail and Tube network - Peter Byrne/PA

The union’s general secretary Mick Lynch said: “Station staff have had enough of having their livelihoods threatened by job losses and attacks on their terms and conditions.

“Station staff have a vital role to play assisting vulnerable passengers access the network safely and ensuring that the Tube is a safe environment for passengers. These job cuts and attacks on conditions are going to lead to more unstaffed stations, temporary closures and rising passenger anger.

“TfL has had its budgets slashed but the savings made by these station staff cuts will be negatable and will lead to shortages that are unacceptable.

“This strike action will lead to the Tube being shutdown and we call on Mayor Sadiq Khan to meet us urgently to discuss this matter.”
When are the train and Tube strikes?

The Aslef union will hold strikes on:

Saturday September 30 – train strike


Wednesday October 4 – train and Tube strike


Friday October 6 – Tube strike

Members will stage an overtime ban across the rail network on:

Friday September 29


From Monday October 2 to Friday October 6
Which rail companies are affected?

The train companies affected are:

Avanti West Coast


C2C


Caledonian Sleeper


Chiltern Railways


CrossCountry


East Midlands Railway


Gatwick Express


Greater Anglia


GWR


GTR Great Northern Thameslink


Heathrow Express


Island Line


LNER


Northern Trains


Southeastern


Southern


Gatwick Express


South Western Railway main line


Stanstead Express


SWR depot drivers


TransPennine Express


West Midlands Trains.
Advice for travelling during train strikes

National Rail warns passengers to expect “significant disruption” on strike days. Services are also likely to be disrupted and start later on the day immediately after.

National Rail has recommended that passengers:

Use its Journey Planner. Passengers should check close to the time of each strike date


Use its Live Trains page for the most up-to-date information about arrivals and departures


Plan ahead and check before you travel. This includes checking your entire journey, especially if you’re travelling on the first and last trains of strike days
Train station ticket office closures

Nearly all railway station ticket offices are being shut and staff moved on to station platform and concourse duties, according to the Rail Delivery Group (RDG). Ticket office facilities will remain open only at the busiest stations.

Posters are being displayed in stations informing passengers about potential closures. The Government will make the final decision on which offices will be axed following a consultation. It is not known how quickly the first offices will shut, but the closure programme is expected to last for three years.
Why are Aslef striking?

Aslef members are taking industrial action as they push for a pay rise.

The union has criticised the government from failing to meet its negotiating team – general secretary Mick Whelan, assistant general secretary Simon Weller, and executive committee president Dave Calfe.

They last met representatives of the employers, the Rail Delivery Group, under the agreed post-pandemic framework of the Rail Industry Recovery Group, in April.

Mr Whelan added: “Do you remember Where’s Wally? Well, what we want to know is Where’s Harper?

“We last saw the Secretary of State for Transport in December.

“We last saw Huw Merriman, the Rail Minister, in January.

“And we last saw the train companies in April.

“Since then, nothing. Nada. Zilch. Not a letter, not an email, not a text message, not a phone call, not a WhatsApp. Not a word!”

POST-FORDISM

Mitsubishi forced out of China after competition from cheap rivals

James Warrington
Wed, 27 September 2023 

Mitsubishi Outlander PHEV

Mitsubishi has been forced to pull out of China amid tough competition from cut-price rivals.

The Japanese car giant is said to be in final withdrawal discussions with its Chinese partner Guangzhou Automobile Group (GAC) to end production in the country.

It comes after Mitsubishi said in July that it was suspending production in China indefinitely and would cut jobs amid a sharp drop in car sales.


The group has now decided not to resume operations at its factory in the Hunan province, Nikkei reported.

Mitsubishi’s sales in China have slumped in recent years amid growing demand for electric vehicles (EVs) and more affordable local brands such as BYD and Nio.

The Japanese company sold 38,550 cars in China in 2022, down 60pc on the previous year.

While the company released the hybrid Outlander SUV to the Chinese market late last year, this has failed to reverse the downward trend.

As part of the exit arrangement, Mitsubishi will withdraw its 50pc investment in the joint venture, which is held by the group’s trading house as well as its automotive company.

GAC is expected to maintain the venture as a corporate entity and use the Hunan factory for EV production.
New focus for the car giant

Mitsubishi will reportedly now focus on south-east Asia and Oceania, which account for around a third of its sales.

A spokesman for Mitsubishi said the company was currently discussing future plans with shareholders but insisted nothing had been finalised.

Mitsubishi began exporting cars to China in the 1970s and formed the joint venture with GAC in 2012. At its peak in 2018, the company sold 140,000 vehicles in the country.

But Mitsubishi is not the only Japanese carmaker to encounter difficulties in China after being slow to embrace EVs and coming up against tough local competition.

A price war across the EV sector, sparked by Elon Musk’s Tesla, has added to pressure on margins.

Honda and Nissan have both suffered falling sales in China over recent years, while Toyota’s sales fell last year for the first time in a decade.

Makoto Uchida, chief executive of Nissan, has admitted that the company is struggling to make a profit in China and said it was reviewing its operations in the country.

UK

Why is Rosebank going ahead and why does it face such opposition?

Danny Halpin, PA Environment Correspondent
Wed, 27 September 2023 

Regulators have given the go-ahead for the Rosebank oil and gas field to start developing and producing fossil fuels, angering environmentalists and some MPs.

The Government has said it will boost the economy and energy security with the North Sea Transition Authority (NSTA) – the body that approves oil and gas licences, which is tasked with “maximising the economic recovery” of oil from the North Sea – having given its consent for Rosebank to be developed.

Why is Rosebank going ahead and why is there such opposition? The PA news agency looks into the controversies around the oil and gas field, why some believe it should progress and why others believe it should be scrapped.

Rosebank oilfield locator. See story ENERGY Rosebank. Infographic PA Graphics. An editable version of this graphic is available if required. Please contact graphics@pamediagroup.com.

– What is energy security?

The UK Government has said energy security is one of its “greatest priorities” and mentioned the term 40 times in its Powering Up Britain report published earlier this year after establishing the Department for Energy Security and Net Zero (Desnz).

Despite this, it has been unable to provide a clear definition of what energy security means, implying that it could signify a more reliable energy supply for the UK, increased self-sufficiency or using fossil fuels as a stop-gap while renewable power is built up, though without committing to either explanation.

The International Energy Agency (IEA) defines it as: “The uninterrupted availability of energy sources at an affordable price.”

– Why is Rosebank so controversial?

Opponents of its development believe that uninterrupted availability of affordable energy could and should come from renewable sources, while the Government and the oil and gas industry say abandoning North Sea reserves would only result in greater dependence on foreign oil producers.

Rosebank is thought to contain up to 350 million barrels of oil, according to owners Ithaca Energy and Equinor, who say it is capable of producing 69,000 barrels a day – about 8% of the UK’s projected daily output between 2026 and 2030 – and 44 million cubic feet of gas per day.

Currently the UK imports around half of its gas, mostly from Norway, which also provides around half the amount of oil the UK imports.

Russia was the largest source of refined oil until the Ukraine invasion, and the UK Government says developing more North Sea oil and gas will further offset this dependency while protecting consumers from volatile international price hikes.

On the other side, many researchers, campaigners and opposition MPs say rapid development of renewables would better protect consumers as they would not need oil and gas to power their cars and homes, adding that clean power also has the benefit of not producing emissions that are heating the planet to dangerous levels.

– Will Rosebank lower bills?

The owners say it is expected to start producing in 2026-2027 so there will be no immediate relief for consumers in the current energy crisis.

As oil and gas prices are set internationally and as much as 80% of the oil produced is expected to be sold outside the UK, Rosebank is unlikely to have any significant impact on consumer bills in future either, having “at most, a marginal effect”, according to the Climate Change Committee (CCC).

– How many jobs will it provide?

Ithaca and Equinor say Rosebank will support around 1,600 jobs at its peak during construction and around 450 over the long term.

They also said the project is estimated to create £8.1 billion of direct investment, of which £6.3 billion is likely to be invested in UK businesses.

– How does it fit in with the Government’s net zero plan?

Planned electrification of North Sea rigs means they will increasingly draw their power from renewable energy sources, therefore fitting in with how the UK Government counts its emissions reductions to net zero.

The emissions from the oil and gas once burnt are not included in the Government’s net zero calculations.

North Sea reserves are declining regardless of political decisions, with the Government wanting to use what is available.

Labour has said it would not grant any new licences if it wins the next election but would honour those already in place – including Rosebank.

– How will these emissions affect the rest of the world?

The CCC, which advises the Government on how to reach net zero, said it is very difficult to understand how this extra fuel would affect global markets, whether it would add to consumer demand or replace oil and gas produced in other countries.

This is because of the complexities of climate policies in various countries aiming to phase out fossil fuels as well as the volatility of the international market.

The IEA said in its global pathway to net zero by 2050, published two years ago, that no new oil, gas or coal is needed, though it did not single out specific projects such as Rosebank.

Developing Rosebank oil field ‘wrong decision’, says Scottish First Minister


Danny Halpin, PA Environment Correspondent
Wed, 27 September 2023 

Developing Rosebank is “the wrong decision” while new oil and gas licences will slow down the energy transition, Scotland’s First Minister has said.

Humza Yousaf expressed his opposition to the project after the North Sea Transition Authority (NSTA) announced it had given its consent for the largest untapped oil reserve in UK waters to be developed.

The UK Government said it supports the decision and wants hundreds of new licences to be awarded to producers of North Sea oil and gas.

Doorstepped at the Scottish Parliament, Mr Yousaf told Bauer Media: “What I would say is I think Rosebank is the wrong decision. The decision that has been made today it is not the right decision to be made.

“Scotland’s future, the north east’s future, is as the net zero capital not just of Europe but of, I hope, the world.

“And, of course, new oil and gas licences being given the go-ahead will slow the pace of that transition down.

“I want to accelerate that transition and take the workers with us.”

The UK Government said Rosebank will provide more jobs and reduce the need to import fuel from hostile countries such as Russia.

Secretary of State for Energy Security and Net Zero Claire Coutinho said it “makes sense to use our own supplies” of North Sea oil and gas, although any fuel extracted from Rosebank will mostly belong to Equinor, whose largest shareholder is the Norwegian state.

As the majority of this fuel is expected to be sold internationally, many researchers, campaigners and opposition MPs have questioned whether adding a significant amount of greenhouse gases to the atmosphere is worth any economic and security gains.

Ms Coutinho said: “The jobs and billions of pounds this is worth to our economy will enable us to have greater energy independence, making us more secure against tyrants like (Vladimir) Putin.

“We will continue to back the UK’s oil and gas industry to underpin our energy security, grow our economy and help us deliver the transition to cheaper, cleaner energy.”

Rosebank’s owners say its development will create 1,600 jobs during the peak of its construction and 450 over the long term, while producing £6.3 billion that could be invested in UK businesses.

The oil and gas industry currently supports tens of thousands of jobs in Scotland and Rosebank has been the centre of a debate around how fast North Sea rigs should be shut down, if at all.

Labour’s policy of stopping the approval of new licences was criticised by the leader of the GMB union who called the policy “naive”, while the Scottish Government has been reluctant to take a strong opposing view until today.

Former First Minister Nicola Sturgeon said at Cop27 last year that it was important to move away from fossil fuels, but did not take a stand on Rosebank specifically.

After the NSTA announcement she wrote on social media that she agrees with Green Party MP Caroline Lucas, who described the decision to give consent to Rosebank as the “greatest act of environmental vandalism in my lifetime”.

Ms Sturgeon said: “Agree with @CarolineLucas. Also, by consuming scarce resources that could be going to renewables, it risks slowing the green transition and the jobs that come from it.

“That’s not in interests of those who work in oil & gas – they need that transition to happen at pace.”

The Climate Change Committee, which advises the UK Government on how to reach net zero, said many jobs will also be created by replacing oil and gas with renewable power.

The International Energy Agency said that globally, replacing fossil fuels with renewables and going net zero by 2050 would save the world economy 12 trillion dollars (£9.8 trillion).

Rosebank ‘trashes’ UK’s global reputation, says Lord Goldsmith

Danny Halpin, PA Environment Correspondent
Wed, 27 September 2023



Allowing the development of the Rosebank oil and gas field damages the UK’s reputation internationally, Conservative Lord Zac Goldsmith has said, as he hinted at voting for an opposition party come the next election.

The North Sea Transition Authority’s decision to grant consent to Equinor and Ithaca Energy to begin developing the largest untapped reserve of oil in UK waters has ignited fury among climate-minded politicians such as Lord Goldsmith, who accused the Government of losing sight of its climate commitments.

Speaking to BBC Radio 4’s PM programme, the Tory peer said: “It just trashes the UK’s reputation as a reliable, grown up member of the global community, it’s done us immeasurable harm.”

He also attacked the delay to net zero policies such as a ban on new petrol and diesel cars announced last week by the Prime Minister, saying the Conservative Party seems to be in “disarray” and that he may not be able to vote for it.

“If this is the direction that the party is determined to take, and it seems to be, there’s no way I can vote for a party that positions itself, that the Conservative Party is currently positioning itself, on climate and nature,” he said.

“The party that loses sight of the overall goal is not one that deserves to be given the privilege of power.”

The Government said issuing new oil and gas licences and allowing those approved to be developed, such as Rosebank, would boost the UK’s energy security, though when asked, the Department of Energy Security and Net Zero was unable to provide a definition of what energy security means.

Ministers also argue that it would mean less oil is imported from hostile countries such as Russia.

As Rosebank will take until 2026-2027 to begin producing, it will be unable to offer immediate relief to consumer bills and because most of the fuel is likely to be exported, it would at best have only a marginal impact on bills in the future, the Climate Change Committee has said.

Labour’s policy if it wins the next election is to put a stop to new oil and gas licences, though it would honour any that are in place at the time the party gains power.

Speaking to Nick Robinson’s Political Thinking podcast, Sir Keir Starmer said this is a “deliberate” policy to ensure stability in the economy.

“What we’ve said is no new licences to be granted when we’re in power, but we won’t revoke anything, any licences that are granted before we come into power,” he said.

“I’m mindful of the fact that if there’s one thing that has killed growth in the last 13 years, and it has been killed, it’s the chopping and changing lack of strategic thinking.

“And, therefore, as a matter of principle, we will accept, as it were, the baseline that we inherit from the Government if we win that election.”

Environmental Secretary Therese Coffey insisted the new oilfield was part of a transition as the UK “gradually” divests from fossil fuels.

Ms Coffey told C4 News: “We’re still on a journey of transition and it’s important that we still have sources of oil as we make our way to net zero.”

She also defended a reported multimillion-pound taxbreak being handed to the company behind Rosebank.

“It’s important that we continue to attract investment as part of getting towards net zero, that will be done in a variety of ways, one of those is about supporting some of these energy companies in that regard,” she said.

SEE

https://plawiuk.blogspot.com/2023/09/uk-rosebank-oilfield-fury-as-3.html

UK

Truss and Kwarteng wrecked our economic reputation in a matter of days. A year on, it still hasn’t recovered


Jonathan Prynn
Wed, 27 September 2023 

Kwasi Kwarteng has admitted he ‘got carried away’ during his brief stint as chancellor (Stefan Rousseau/PA) (PA Wire)

The anniversaries keep coming.

Yesterday it was a year to the day since the pound plunged to its all-time low against the dollar. And tomorrow the Bank of England can light a candle to mark 365 days since it swooped into the gilts market to halt the worst collapse in government bonds on record.

Within weeks, one architect of the chaos, the ex-chancellor, Kwasi Kwarteng, was out of a job, followed just 11 days later by his former boss, the ill-fated Liz Truss.

Despite all the calming balm that has been applied to the financial markets since then by the current Chancellor Jeremy Hunt and Prime Minister Rishi Sunak, the fallout from that extraordinary week is still being felt today.

Britain’s hard-won global reputation as a beacon of financial stability in an unpredictable world has only been partly restored. Confidence in the housing market was hammered by the jump in gilt yields and mortgage rates that followed Kwarteng’s mini-budget. That brought the housebuilding market grinding almost to a halt last autumn and winter. It has yet to recover.

Interest rates have topped out at 5.25% — for now. It will be for future economists to untangle the “Truss effect” from the general rise in inflation and borrowing costs caused by a multitude of other factors, particularly of course the energy crisis.

But it would seem reasonable to assume that such a damaging — and avoidable — shock to Britain’s financial infrastructure poured fuel on the fire. Some degree of calm has been restored, but it is an uneasy calm.

The long-term prize, consistent economic growth, seems as far out of reach as ever. There are many lessons to learn from the events of September 2022, but it will take far more than a year to win back the trust that was trashed that month.

UK

Scaled-back HS2 will jeopardise local investment, warns Tory Mayor
HIGH SPEED RAIL 2

Matt Oliver
Wed, 27 September 2023 

Cost of the HS2 could breach £100bn - Chris Gorman / Big Ladder

Rishi Sunak’s plan to scrap the northern leg of HS2 will undermine hundreds of millions of pounds of investment in the West Midlands, the region’s Conservative mayor has warned.

Andy Street urged Rishi Sunak to reconsider his opposition to the high-speed rail link, amid reports the Prime Minister is poised to scrap the Birmingham to Manchester section.

The Tory mayor, who was previously boss of the John Lewis Partnership, told the Telegraph: “A lot of people have made big investment decisions – literally hundreds of millions, if not billions, of pounds – on the promise of this [HS2] coming.


“I think it’s a very poor signal to say to businesses, ‘We’ve changed our mind and what you assumed in your investment decision is no longer right’.”

The intervention came days after the new American owners of Birmingham City Football Club warned that scaling back HS2 would damage Britain’s credibility with foreign investors.

Four Labour mayors in the North, as well as London Mayor Sadiq Khan, have also jointly signed a letter pleading with Mr Sunak to preserve the troubled scheme.

Mark Reynolds, the boss of HS2 contractor Mace Group, separately warned that flip-flopping by the Government was making both his company and others reluctant to take on big UK projects in future.

He told BBC Radio 4’s Today Programme: “We’re certainly cautious. The new nuclear programme is a primary example, we’ve been gearing up to work on that.

“What you do, you find other alternative work both in the UK and elsewhere.”

It piles further pressure on the Prime Minister to give the project a stay of execution, with a decision now thought to have been delayed until after the Tory Party conference in Manchester.

Mr Sunak is said to be “alarmed” by Whitehall estimates suggesting the price tag for HS2 – already cut back in places – could now breach £100bn, having originally been approved with a cost of around £30bn.

He is thought to favour axing the second phase to Manchester and potentially terminating the line early in the West London suburb of Old Oak Common, rather than running all the way to Euston as had originally been planned.

However, the cuts face vocal opposition from senior figures in Mr Sunak’s own party, including former prime ministers David Cameron and Boris Johnson, who have warned the changes will make the rump scheme a white elephant.

Mr Street said huge amounts of inward investment in the West Midlands was predicated on the scheme being built all the way to Manchester.

He said: “It’s been part of the story about investing in the West Midlands – we will be at the centre of that network. And look at what that’s led to, in terms of record inward investment numbers here.”

£1 in every £10 of foreign investment went to the West Midlands last year, according to official government figures, and the region topped a league table of regional overseas investment, with 181 projects.

Massive investment has flowed into Birmingham in the past decade, much of it on the assumption the city will be a fulcrum of the new HS2 network.

A brand new station, Birmingham Curzon Street, will sit at the heart of a 141-hectare regeneration area that the West Midlands Combined Authority, led by Mr Street, and the Government are investing £724m into it.

The combined authority has also bet on HS2 as a major pillar of future growth and jobs. They have previously suggested the full Y-shaped scheme would add £4bn to the local economy.

That 2021 estimate, which assumes workers will be able to more easily commute to Birmingham from further afield, was made before Boris Johnson’s government scrapped the proposed leg to Leeds.
Infrastructure upgrade

Scaling back the HS2 plans at such an advanced stage would damage confidence in the Government’s ability to keep key infrastructure promises, Mr Street said.

He said: “We have to demonstrate to the world that we can deliver critical infrastructure effectively.”

Mr Street argued HS2 would provide a vital replacement for existing, but poor quality, intercity train services between London, Birmingham and Manchester.

He said: “The biggest challenge to us is the linkage between the Midlands and the North, because we’re pretty well-connected with London already.

“This was always about trying to get a train between London, Manchester and Birmingham, because it’s not just that the current experience is slow – it’s also overcrowded, expensive and people don’t want to use it, so they choose to drive instead. It’s not an environmental solution.

“I know it’s over-budget, we’ve got to deal with that. But the principle of it, you should absolutely hold to.”

Andy Burnham, the Labour mayor of Greater Manchester, has separately accused the Government of treating northern taxpayers like “second-class citizens” and threatened legal action if the northern leg is axed.

Northern mayors say that scrapping the HS2 northern section will gut a key section of railway needed for the proposed “Northern Powerhouse Rail” line between Liverpool and Leeds.

Business groups and universities have also warned against scaling back the scheme, with the Northern Powerhouse Partnership saying it would damage “Britain’s reputation as a place to do business”.

Nikki Paterson, the CBI business lobby group’s regional director for the Midlands, told local media: “All the research tells us that poor transport connectivity is a major drag on productivity and ultimately on growth.”

However, Lord Hague, the former Tory Party leader, backed Mr Sunak on Tuesday, calling HS2 “a national disgrace”.

Forty-four HS2 officials paid at least £150,000 a year

Neil Lancefield, PA Transport Correspondent
Wed, 27 September 2023 



Dozens of people working for HS2 Ltd are being paid at least £150,000 a year.

PA news agency analysis of Cabinet Office figures shows the earnings of 44 people at the taxpayer-funded company were at that level at the end of September last year.

Their combined pay was up to £8.8 million.


Outgoing chief executive Mark Thurston was the highest earner.

HS2 Ltd’s annual report for the 2022/23 financial year shows his total remuneration for that period was £676,763, which included a bonus of nearly £40,000.

This was up from £618,144 during the previous 12 months, representing a rise of more than 9%.

His job is described as delivering the high-speed railway “to safety, cost, time and quality standards”.

It was announced in July that Mr Thurston will step down by the end of this week after six-and-a-half years in the role.

Chief commercial officer Ruth Todd received a total package worth £313,055.

Conservative MP for Buckingham Greg Smith, who has long been a strong critic of the project, said: “The absolute cheek of HS2 bosses suckling on the taxpayer teat to such great excess whilst presiding over massive cost-ballooning of the project.

“It defies belief.”

An HS2 Ltd spokesman said: “HS2 is Europe’s biggest infrastructure project and it is necessary to employ people with the right level of expertise to deliver it successfully.

“HS2 Ltd is committed to controlling costs and takes its responsibility towards value for money very seriously.

“Executive salaries are signed off by the Department for Transport and Treasury.

“Remuneration is also benchmarked against comparable organisations and managed in line with the Government’s public sector pay policy.”

HS2 Ltd’s annual report shows expenditure on consultants was £25.8 million in 2022/23.

That is down from £32.1 million during the previous 12 months.

HS2 Ltd also made four statutory redundancy payments totalling £19,414 in the financial year.

Reports have suggested that Prime Minister Rishi Sunak has been warned the price tag for HS2 may have soared past £100 billion, even though the Government has already scrapped the Leeds leg.

The first estimate in 2010 of the proposed high-speed rail link between London and the North was £30 billion.

In response to soaring costs, there is speculation Mr Sunak is considering cancelling or delaying HS2 between Birmingham and Manchester, as well as permanently stopping the line at Old Oak Common, west London, rather than London Euston.

7 million UK households struggling to keep up with rent or mortgage payments


Rabina Khan
·Contributor
Tue, 26 September 2023 

Nearly half of households with mortgages or who are renting have been struggling to keep up with their housing payments. Photo: Getty

Some 7 million UK households are grappling with rent or mortgage payments, with millions more at risk of falling into financial difficulty by the end of 2024 as they face higher rates when remortgaging, according to consumer group Which?.

Nearly half of households (46%) which rent or have mortgages are finding it tough to meet their housing payments, a survey of 4,000 Brits found.

Despite the Bank of England maintaining interest rates at 5.25% last week, mortgage repayment stress is still to come for just under a third of homeowners. Some 2.1 million households will see their fixed-rate deals finish by the end of 2024.

Another 4.5 million households have already seen monthly payments soar.

It is not just those on the lowest incomes who are being affected by the interest rate rises, Which? said.

Read more: Looming Christmas mortgage crisis for half a million UK households, warns Which?

"Our mortgage is due to renew later in [the] year and sounds like there will be further increase in interest rates," said a respondent from Northern England, worried how his household can afford to cover bills on an income of £55,000 to £79,999.

This comes after the Bank of England (BoE) announced a pause in interest rate hikes, in response to falling inflation. UK inflation dropped to 6.7% in August.

Interest rates guide what banks charge customers to borrow money and rises have wrought havoc in the housing market this year as customers grapple with increased mortgage payments.

Rocio Concha, Which? director of policy and advocacy, said: "We’d encourage anyone who’s struggling to seek free debt advice and reach out to their mortgage provider or landlord for help."

Households with rent or mortgage payments have felt more emotional distress than households who own their home outright (Source: Which?)
Renters

Renters are also likely to be affected by interest rate rises as landlords whose mortgage repayments have gone up may raise rents to cover the increase.

“I worry about the roof over my head and the fact my rent is about to increase because I cannot afford to pay the increase," said a respondent from South England on an income of £10,000 to £14,999.

Many households across the country have had to tap into their savings, affecting their ability to handle emergencies and capitalise on higher savings rates.

The government's Renters (Reform) Bill, was introduced in May as part of a range of measures to regulate the UK rental sector. This included the abolition of Section 21 ‘no fault’ evictions, providing more security for tenants and empowering them to challenge poor practice and unfair rent increases without fear of eviction.
Payment stress

Nearly half (45%) of mortgage holders are closely monitoring their finances and budgeting more, while one in five (21%) are working longer hours to cover housing expenses.

The strain of housing payments is also taking a toll on emotional wellbeing. Which? found that over half of renters and those with mortgages report daily stress, compared to just three in 10 outright homeowners.

Read more: UK slowdown since financial crisis 'left families £1,400 poorer'

A majority of mortgage holders and renters are worried about their household's financial security and feel a lack of control over their finances.

Which? is urging banks and mortgage lenders to prepare for an influx of customers seeking support. This includes adequate staffing customer service support channels like phone calls, email, and chat support.

The Financial Conduct Authority's new Consumer Duty, which came into force in July, is meant to improve customer service standards so that customers receive support aligned with their financial needs. Companies that fall short of these standards can expect stringent action from regulators.

“Banks and mortgage lenders must ensure they are fully staffed and properly prepared to properly support customers getting in touch to remortgage or because they are struggling to make ends meet," said Rocha.

Mortgage holders and renters are concerned about their financial future. Chart: Which?
Which? advice

Individuals concerned about mortgage repayments should reach out to their lender, as this won't impact their credit score, Which? advises.

Lenders can offer support options tailored to individual circumstances, such as temporary mortgage holidays or extending the mortgage term.

A temporary mortgage payment holiday: Repayments are paused for a set period of time — but interest will continue being added to a loan with a likelihood of paying additional interest.


A temporary switch to interest-only payments: This is a payment on the interest of a mortgage, without repaying the loan itself, for temporary period of time — which could mean that the entire mortgage is paid later than planned.


Extending the mortgage term to reduce monthly payments: you can stretch out your mortgage term, from 30 years to 35 years, for example. You'll be paying back the same amount of debt, but over a longer period as your monthly bill will be reduced.

Read more: UK house prices remain subdued amid high interest rates and summer holidays

Which? encourages renters to discuss their situation with landlords. Specialist housing charities such as Shelter offer free support.

People at risk of becoming homeless due to eviction should contact their local council's housing department for advice on emergency accommodation.
Watch: What is a recession and how do we spot one?

CRIMINAL CAPITALI$M

PwC Australia reveals more breaches on heels of scathing report into consultancy scandal

Henry Belot
Wed, 27 September 2023 

Photograph: Joel Carrett/AAP

PwC Australia has revealed a series of additional breaches of confidentiality as a new report details a litany of corporate failures that allowed confidential government information to be misused for years without any disciplinary action.

The confessions are detailed in what PwC Australia has described as “a statement of facts”, which was published alongside a review into its internal culture by the former Telstra boss Ziggy Switkowski. His report found some partners prioritised profit above ethics and internal dismay at the firm’s response to the scandal.

PwC Australia has admitted that in 2016, a partner forwarded documents related to confidential consultation with the Treasury and Australian Taxation Office (ATO) officials regarding the GST treatment of digital currencies to colleagues who had not signed a confidentiality agreement.

Related: PwC’s ‘rainmaker’ partners often pursue profits ahead of ethics, scathing review finds

In 2017, a now former PwC partner was invited to participate in Treasury’s Black Economy Taskforce Reference Group, provided a confidentiality agreement was signed. PwC allege the partner forwarded materials from the group to colleagues who had not signed agreements on several occasions.

Another partner is accused of sharing confidential information from a Treasury group called the Tax Treaties Advisory Panel on several occasions. That information was subject to confidentiality agreements that prohibited it being shared. The panel dealt with international tax policy.

The firm has also revealed three partners later shared a draft OECD report into profit shifting with colleagues, in breach of a confidentiality agreement.

“As part of the 2023 Investigation, PwC Australia has identified other internal communications in which information relating to Government consultations was disclosed by PwC Australia personnel,” the report said.

“In some instances, it has not been possible to determine whether the disclosures constituted a breach of a confidentiality acknowledgment because it is not clear from the documents whether a confidentiality commitment or expectation applied in relation to the disclosure.”

The document also outlines how former PwC partners beached confidentiality agreements by sharing secret information about Treasury’s proposed multinational tax policy. The information was used by PwC to win business from private sector clients and triggered the reputation crisis that resulted in its government services division being divested for just $1.

The firm has admitted that from May 2015, it marketed its ability to assist multinational companies “in anticipation of legislation that would be announced in the federal budget”. It confirmed that from then until late 2022, it failed to discipline anyone involved despite several people being aware.

PwC Australia has admitted that from as early as 2017, when its risk team first discovered an email from a partner discussing government information deemed “confidential at this stage”, it failed to properly comprehend the seriousness of misconduct and to adequately respond.

The firm has also conceded it should have taken the ATO seriously when its second commissioner, Jeremy Hirschhorn, warned in August 2019 about a potential breach of confidentiality.

“There is no evidence that any further investigation was done in 2019 relating to this issue,” the PwC report released on Wednesday said.

PwC Australia’s investigation confirmed that some staff had enough information to raise concerns about confidentiality breaches at an early stage, but decided to remain silent.

It has also admitted it had no proper process for monitoring what confidentiality agreements its partners had signed with clients. This meant the firm’s risk team could not enforce compliance and had to rely on staff disclosing them appropriately.

The “statement of facts” admits that once the Tax Practitioners Board established a formal inquiry into the breach in 2021, it should have launched a “rigorous internal investigation” into what happened. That did not take place until earlier this year.

In a statement released alongside the report, PwC Australia’s chief executive, Kevin Burrowes, said “we are sorry”.

“We take full accountability for our shortcomings and the culture in our firm that allowed them to go unchecked over time,” Burrowes said.

In response to multiple reports released this week, PwC Australia will overhaul its corporate structure, adding three non-executive directors to its governance board and a non-executive chair, as well as committing to publishing audited financial statements.

PwC Australia will in future apply ASX corporate governance principles and recommendations, “to the extent that is feasible”, the company said. PwC Australia is a partnership and structured differently to ASX companies.

PwC to restructure board as report into consultancy scandal released

Henry Belot

Guardian Australia
Tue, 26 September 2023 

Photograph: Reuters

PwC Australia will overhaul its corporate structure, adding three non-executive directors to its governance board and a non-executive chair, as well as committing to publishing audited financial statements.

The announcement comes ahead of the release of an investigation into the firm’s misuse of confidential government information, which triggered a reputation crisis and widespread condemnation.

Partners at the firm were due be briefed on the report by former Telstra boss Ziggy Switkowski on Wednesday morning before the full report was expected to be released in full later in the day. The report will also be shared with regulators.

Switkowski’s report is expected to reveal how many people knew that confidential government information about proposed tax changes had been shared with the firm’s private clients and why this wasn’t stopped.

PwC Australia’s reputation was left in tatters after the misuse of confidential information was first reported by the Australian Financial Review. The fallout of the scandal has already led to PwC Australia divesting its entire government services division for just $1

The matter has also been referred to the Australian federal police by the Treasury for investigation, which is one reason why the firm was not recalled to an ongoing Senate inquiry into the matter this week.

Switkowski has conducted more than 90 briefings with senior PwC Australia staff and held 18 focus groups across the country.

PwC Australia will in future apply ASX corporate governance principles and recommendations, “to the extent that is feasible”, the company said. PwC Australia is a partnership and structured differently to ASX companies.

The firm will publish audited financial statements by September 2025. PwC Australia will also appoint three non-executive directors to its governance board and a non-executive chair.

The firm’s chief executive, Kevin Burrowes, has released a statement before the report’s release, saying it was an “important day for the firm”.

“It marks a moment from which we, and others, can measure progress against our commitments to enhance the firm’s governance, accountability and culture,” he said.

“From the top down we are committed to rebuilding and re-earning the trust of our stakeholders.

“We are committed to learning, changing and leading. This is our promise to our people, our partners, our clients and our communities.”