INFLATION REACHES 40-YEAR HIGH

Inflation has reached its highest level since 1982, driven in particular by rising energy and fuel costs (Financial Times). Figures published by the Office for National Statistics (ONS) this morning show the Consumer Prices Index rose to nine per cent in the 12 months to April, up from seven per cent the month before (BBC News). UK inflation is now at the highest level among G7 countries and one of the highest of any advanced economy. Responding to the figures, the chancellor Rishi Sunak said: “We cannot protect people completely from these global challenges but are providing significant support where we can, and stand ready to take further action (The Times)."

MPS SAY COVID SUPPORT SCHEMES GAVE “OPEN GOAL” TO FRAUD

The government’s approach to handling the Covid-19 business support schemes led to an “open goal to fraudsters and embezzlers” according to a report by the Public Accounts Committee (PAC) (The Guardian). The PAC’s review of the Department for Business, Energy and Industrial Strategy’s annual report said that efforts to identify fraud and error had come too late. 170,000 new companies were registered at the start of the first lockdown in March 2020, which should warrant “closer scruitiny” (Sky News).

NEWS IN BRIEF

Lord King, a former governor of the Bank of England, has said central banks around the world have made “serious mistakes” in not tackling inflation sooner (Daily Telegraph).

Corporate insolvencies in the UK will return to their pre-pandemic levels sooner than the rest of the large European economies, according to analysis by the credit insurer Allianz Trade (The Times).

The business secretary Kwasi Kwarteng has written to petrol retailers raising concerns that the recent cut in fuel duty is not being passed onto consumers (BBC News).

The proportion of fund manager assets held as cash has risen to their highest level since the September 11 2001 US terror attacks, according to a survey by Bank of America (The Times).