“Erm, it will obviously cost a lot to do, we accept that”
— Jeremy Corbyn fluffs his numbers on how much childcare promises in Labour’s manifesto will cost
Insurance bills to rise by nearly £50
The latest rise in insurance premium tax will add an extra £47 to the average annual household bill, analysis from the Association of British Insurers has found. The change, which came in last week, saw the standard rate of insurance premium tax rise from 10% to 12%. The higher rate, which applies to travel insurance and household appliance policies, remains at 20%. Hardest hit will be motorists as premiums rise to cover more uninsured drivers.
Food costs climb as pound falls
Food prices climbed at their fastest rate in three years last month because of the weak pound. Overall, food inflation was 1.4% in May compared with 0.9% in April.
Record numbers pay top tax rate
A record 364,000 people paid the top rate of income tax last year, according to HM Revenue & Customs. The 45% rate is payable on incomes over £150,000.
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House prices fall in slowing market
House prices fell for the third month in a row in May — the first time this has happened since 2009 — while annual house price growth fell from 2.6% to 2.1%, according to the latest Nationwide house price report.
The average UK house price in May was £208,711, which is down about £430 on the previous month.
Nationwide’s chief economist, Robert Gardner, said: “This provides further evidence that the housing market is losing momentum.”
Young can’t afford pension savings
Six in 10 Millennials say they cannot fulfil their aspirations because they do not have enough savings, while 27% are managing to save only for short-term goals rather than retirement, according to a survey by the insurance group Zurich.
The survey of more than 2,000 18 to 24-year-olds found mounting financial pressures are preventing Millennials from saving more into their pensions — as an International Monetary Fund report published last week urged them to do.
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How the Footsie has performed
The FTSE 100 closed the week at 7,548 — almost exactly where it closed last Friday. The index was steadied by a strong surge in financial stocks and a mining recovery.
+22% over a year (up 26.8% with dividends)
+10% over three years (up 23.2% with dividends)
+43.5% over five years (up 73% with dividends)
+13.1% over ten years (up 64.6% with dividends)
Inflation: In April, CPI was 2.7% and RPI was 3.5%