CHANCELLOR HINTS AT FURTHER TAX CUTS 

The chancellor Jeremy Hunt has hinted that he wants to cut taxes further in the coming months, suggesting the possibility of holding two Budgets ahead of this year’s general election (Financial Times).  

Speaking during his visit to the World Economic Forum, the chancellor said that he believes "fundamentally that low-tax economies are more dynamic, more competitive and generate more money for public services like the NHS," (BBC News). 

RETAIL SALES FALL AT SHARPEST RATE SINCE COVID 

Retail sales fell by 3.2 per cent in December in the sharpest drop since the UK was in a Covid lockdown, figures from the Office for National Statistics (ONS) have shown (BBC News). Figures reveal a sharp fall in the demand for goods, but food sales also declined in the run up to Christmas.  

The ONS said the sales slump hit all retail sectors, with food stores performing very poorly. Consumers also spent less on Christmas gifts during December, which was following a 1.4 per cent rise in sales in November fuelled by Black Friday promotions (The Guardian).  

NEWS IN BRIEF

Inflation in the eurozone has moved “in the right direction” but it is still too early to declare victory over it, officials at the European Central Bank have said (The Times).  

Labour has warned that the UK faces border disruption and risks to its food supply chains, ahead of the scheduled introduction of post-Brexit import checks on 31 January (Financial Times).  

One third of adults in the UK will run out of money by the end of January due to higher winter bills and financial strain, a survey from Credit Karma has found (Sky News).  

The FTSE 100 climbed 0.7 per cent this morning, extending its recovery for a second day (Reuters). 

Default rates on mortgages and credit cards increased in the run-up to Christmas, according to a Bank of England survey of lenders’ credit conditions (The Times).