Business
Government borrowing at three-year low for November
Government borrowing fell in November as more money was raised from taxes and less was spent on the country’s debt interest payments, according to official figures.
Borrowing – the difference between spending and tax take – was £11.2bn last month, the lowest November figure since 2021, the Office for National Statistics (ONS) said.
Separate figures from the ONS showed retail sales rose slightly last month, helped by stronger trading at supermarkets.
The latest figures come as economic growth in the UK remains weak and inflation – the rate at which prices increase over time – is rising at its fastest pace since March.
November’s borrowing figure was down by £3.4bn from the same month last year and below expectations of around £13bn.
It means the total amount the government has borrowed since the start of the current financial year stands at £113.2bn.
This is below the same period last year, but £2bn above predictions by the government’s forecaster the Office for Budget Responsibility (OBR).
Debt interest was down £4.7bn from a year earlier to £3bn, mainly due to lower inflation.
Ruth Gregory, deputy chief UK economist at Capital Economics, said November borrowing “undershooting” expectations meant “Christmas has come early” for Chancellor Rachel Reeves.
But she added while the chancellor would be encouraged by the latest figures, weakening in the UK economy meant there was a growing chance of further tax hikes or spending cuts.
Dennis Tatarkov, senior economist at KPMG UK, added the government had some “temporary respite” due to lower interest repayments, but warned the trend was “unlikely to last as actual and projected inflation has moved up in recent months”.
Retail sales rose 0.2% in November after a 0.7% fall in October, but a rise in sales at supermarkets was partly offset by a fall in clothing sales, the ONS said.
However, its latest survey period did not cover the official Black Friday date of 29 November.
Business
A billion laser points helped bring Notre Dame back to life
After a catastrophic fire five years ago, the Notre Dame Cathedral de Paris reopened this month looking almost the same as it did when it was first constructed in 1163.
The massive reconstruction project was a testament not just to the hard work of the French people – but also to the lasers, drones and other advanced technology that gave rebuilders a window into the building’s past.
“The time frame wouldn’t have been possible without the record of what existed,” Amy Bunszel, executive vice president of architecture, engineering and construction at 3D-software company Autodesk, told CNN. Her company was a major part of creating a model of the building as it existed before the fire, giving the reconstruction effort a sort of guide for what to do. “It would’ve required a lot more guesswork. Imagine taking millions of tourist photographs (as a reference point) versus having one consolidated perfect representation.”
Business
Inflation was the cause, not the result, of the ‘hot’ labor market, research shows
Back in 2022, when the labor market was so hot that Beyoncé even released a song about it, Americans were job hopping in large numbers, boosting their salary in the process.
The Great Resignation was in full swing.
That fueled fears of a “wage-price spiral” — where wages and prices perpetually rise and feed off each other.
But what appeared to be a hot job market was actually a symptom — not the cause — of the recent bout of inflation, according to new research that explored the consequences of unexpected rising prices on the labor market.
Business
The Container Store files for bankruptcy
The Container Store has filed for bankruptcy. It is the latest well-known retailer to fall victim to customers cutting back on discretionary spending.
The 46-year-old company said in a statement late Sunday that filing for Chapter 11 bankruptcy protection will help it “bolster its financial position, fuel growth initiatives, and drive enhanced long-term profitability.” The Container Store revealed in court documents that it has about $230 million in debt and just $11.8 million in cash on hand, but will receive $40 million in fresh financing.
The chain’s 102 locations and website will remain open for orders during the process, which is expected to take 35 days to complete.
“The Container Store is here to stay,” said CEO Satish Malhotra in a statement. “Our strategy is sound, and we believe the steps we are taking today will allow us to continue to advance our business, deepen customer relationships, expand our reach, and strengthen our capabilities.”
Payments to vendors and suppliers will be made as normal and all customer deposits and orders will be honored and delivered, the company said. The Container Store plans to emerge as a private company when the Chapter 11 process is complete.
The company’s Sweden-based Elfa brand, described as a “premium customizable storage system,” isn’t included in the bankruptcy.
The filing comes a few weeks after a deal with Beyond, the parent company of Bed Bath & Beyond and Overstock.com. The Container Store was expected bring Bed Bath & Beyond-branded products to some stores, but that deal appears to be in jeopardy. Beyond previously said that the financing deal was in doubt because the Container Store was struggling to reach an agreement with its lenders.
The Container Store’s stock has already been delisted by the New York Stock Exchange because it failed to meet the exchange’s financial standards.
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