Make your prices clearer, supermarkets told; ex-banking boss says Coutts-Farage row is a ‘grey area’– business live

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From 1h ago 10.20 BST UK watchdog tells supermarkets to make prices clearer High food inflation in the UK has not been driven by weak competition between supermarkets, an initial review into grocery pricing from the competition watchdog has found. However, the Competition and Markets Authority also said rules on pricing should be tightened and that retailers must do their bit to help shoppers compare prices easily. The CMA will now look at competition for 10 product areas including milk, bread and baby formula, or across the wider supply chain, to ensure supermarkets pass on savings to customers as cost inflation eases. So far, it has found: Evidence to date indicates high food price inflation has not been driven by weak retail competition, but competitive pressure is important as input prices fall Next phase of CMA probe will examine competition and prices across the supply chain for the product categories identified Rules on unit pricing should be tightened and retailers must comply to help shoppers compare prices easily On the last point, the watchdog voiced some concerns – for example, different measurements are being used for similar types of products, making it hard for consumers to compare deals on a like-for-like basis. So for instance, tea bags being priced per 100 grams for some products and others being unit priced per each tea bag. Or sometimes it’s hard to read the pricing information because the text is too small or the shelf edge labels are hidden. Over the past couple of months, the watchdog has assessed how retail competition is working in the UK grocery sector, particularly between supermarkets such as Asda, Morrisons, Sainsbury’s and Tesco as well as discounters, including Aldi and Lidl. It said: Not everyone is able to benefit fully from strong competition, particularly those who cannot travel to large stores or shop online, and therefore may rely on higher-priced convenience stores. Now that some input costs are starting to fall, there are some signs that grocery retailers are planning to start rebuilding their profit margins. The CMA will monitor this carefully in the months ahead, to ensure that people benefit from competitive prices as input costs fall. A shopper at a supermarket in London, 19 July 2023. Photograph: Andy Rain/EPA Updated at 10.32 BST 1h ago 10.20 BST UK watchdog tells supermarkets to make prices clearer High food inflation in the UK has not been driven by weak competition between supermarkets, an initial review into grocery pricing from the competition watchdog has found. However, the Competition and Markets Authority also said rules on pricing should be tightened and that retailers must do their bit to help shoppers compare prices easily. The CMA will now look at competition for 10 product areas including milk, bread and baby formula, or across the wider supply chain, to ensure supermarkets pass on savings to customers as cost inflation eases. So far, it has found: Evidence to date indicates high food price inflation has not been driven by weak retail competition, but competitive pressure is important as input prices fall Next phase of CMA probe will examine competition and prices across the supply chain for the product categories identified Rules on unit pricing should be tightened and retailers must comply to help shoppers compare prices easily On the last point, the watchdog voiced some concerns – for example, different measurements are being used for similar types of products, making it hard for consumers to compare deals on a like-for-like basis. So for instance, tea bags being priced per 100 grams for some products and others being unit priced per each tea bag. Or sometimes it’s hard to read the pricing information because the text is too small or the shelf edge labels are hidden. Over the past couple of months, the watchdog has assessed how retail competition is working in the UK grocery sector, particularly between supermarkets such as Asda, Morrisons, Sainsbury’s and Tesco as well as discounters, including Aldi and Lidl. It said: Not everyone is able to benefit fully from strong competition, particularly those who cannot travel to large stores or shop online, and therefore may rely on higher-priced convenience stores. Now that some input costs are starting to fall, there are some signs that grocery retailers are planning to start rebuilding their profit margins. The CMA will monitor this carefully in the months ahead, to ensure that people benefit from competitive prices as input costs fall. A shopper at a supermarket in London, 19 July 2023. Photograph: Andy Rain/EPA Updated at 10.32 BST 1h ago 10.09 BST Farage praises government for reportedly considering new laws on bank accounts Nigel Farage has praised the government following reports that ministers are considering passing new laws that would prevent banks shutting customers’ accounts because they disagree with their political views. The former Ukip leader said MPs are “beginning to realise that this system is coming for them as well” after his bank accounts were closed by Coutts because his views “did not align with” its values. Under plans to protect free speech, banks could lose their licences if they blacklist people with controversial views, The Times reported. Speaking to the PA news agency, Farage said: Well done, the government. This is one of the swiftest interventions I’ve seen by government for many, many years. And hat’s because this problem of the way banks have been behaving has been building up for years and years and years. Every MP will know of constituents, small businessmen and women who’ve literally been shut down by their banks with no reason given whatsoever. I also think that because of the politically exposed persons (PEPs) rule, I think they’re beginning to realise that this system is coming for them as well. He claimed there is “a real sense of anger” among the public, after taxpayers bailed out banks during the 2008 financial crisis, that they “can now treat us with contempt”. The closure of his accounts sparked outrage among senior Tory MPs, who have piled pressure on Coutts and its owner NatWest. Rishi Sunak said “this is wrong” and that “no one should be barred from using basic services for their political views”. The Treasury is expected to announce plans as soon as next week to extend the notice time given to customers to close their accounts from one month to three months, The Times said. Banks will also have to explain why they are closing an account, and customers will be able to appeal against the decision. Farage said he was “really angry” that several members of his family have been refused bank accounts or had them closed. Angela Knight, former head of the British Bankers’ Association, said the politically exposed persons (PEPs) rule is a “grey area” that is “worthy of discussion” as she criticised Coutts’ move. Veteran journalist Andrew Neil said Coutts “acted like a kind of political politburo rather than a bank”. He added: If banks want to act as political parties and have political criteria, they should publish what their political criteria is before you can have their bank account. They should also make themselves accountable to the public. 1h ago 10.00 BST UK mortgage rates down after drop in inflation Mortgage rates in the UK have fallen back after yesterday’s sharp slowdown in inflation to 7.9%, which raised hopes that the Bank of England may not need to raise interest rates as high as feared. The average two-year fixed residential mortgage rate has declined to 6.79% today from 6.81% yesterday, while the average five-year fix is now at 6.31%, down from 6.33, according to data provider Moneyfacts. At the same time, some savings rates have increased. The average one-year fixed savings rate rose to 5.14% from 5.13% while the average rate on an easy access savings account is unchanged at 2.62%. Inflation slowed more than expected to 7.9% in June from 8.7% in May because of a sharp drop in petrol prices. While this is still far above the Bank’s 2% target, financial markets are no longer betting that interest rates will rise above 6%. However, UK inflation remains the highest among the G7 group of advanced economies. UK interest rates forecast to rise less sharply after inflation falls to 7.9% Read more 2h ago 09.09 BST Nigel Farage has taken aim at Alison Rose, the chief executive of NatWest, which owns Coutts. It is Dame Alison Rose, the CEO of NatWest, who must bear the heaviest responsibility for this scandal.https://t.co/V4ZAqkXNjE — Nigel Farage (@Nigel_Farage) July 20, 2023 I now have evidence Coutts LIED to me.. In an explosive 40 page memo, “Brexit” is mentioned 86 times, “Russia” 144 & “PEP” 10. Support for Trump + views on immigration, net zero & the vaccine are listed as reasons to exit me. They say my account is commercially viable! pic.twitter.com/QjPCuUetu3 — Nigel Farage (@Nigel_Farage) July 18, 2023 2h ago 09.05 BST Former banking chief says 'grey area' needs clearing up after Coutts shuts Farage account Angela Knight, the former chief executive of the British Bankers’ Association, said she found it “uncomfortable” to see a bank close someone’s account because of their political views, referring to Coutts bank’s decision to shut Nigel Farage’s account. She said it is a “grey area” that needs to be addressed. Coutts, an exclusive private lender that caters for royals and the super-rich, terminated its relationship with Farage earlier this year. Yesterday, the Brexit campaigner and former UK Independence party leader released internal documents obtained from the bank, which stated it was concerned about his “xenophobic, chauvinistic and racist views” and believed maintaining his accounts posed a risk to the bank’s reputation. Speaking on BBC radio 4’s Today programme, Knight said: We have long operated in this country, under a regime which I will define as: ‘I disapprove of what you say, but I will defend to the death your right to say it,’ and I do find it somewhat uncomfortable to see a situation arise where because of somebody’s legitimate views, even though you may not agree with them, somehow has resulted in a service being withdrawn and they’re not being told about it. I mean, suppose a bank really does disagree with somebody’s behaviour, they should at least tell them. In this instance, what seems to have happened is that nothing was really fed in any way to the individual concerned. We have freedom of speech in this country. So it is a bit of a grey area, and I do think it it is worthy of discussion and I think it’s something that has been coming for some time. Her comments come after the City regulator said it had contacted the owner of Coutts bank amid a growing row over its decision to close Farage’s accounts, but told MPs that while lenders cannot discriminate against customers, it is ultimately up to firms to decide who to do business with. Sunak, Braverman and City regulator wade into Farage banking row Read more The journalist and broadcaster Andrew Neil, chairman of The Spectator and presenter of The Andrew Neil Show on Channel 4, has described Coutts’ decision as a “new form of McCarthyism”. He said on BBC radio: The bank acted like a kind of political Politburo rather than a bank, and they’ve got themselves into this terrible mess now, and the law will be changed as a result. As a result, the banks will not be able to discriminate against customers on political grounds. Updated at 09.19 BST