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UK consumers reining in spending on entertainment and leisure

British firms that depend on consumer spending have witnessed their profitability fall to a record low in a decade. This is another sign that the economic slowdown is worsening. Profitability at consumer-facing firms within the services sector that make up the major share of the UK economy fell to minus 39pc in the past three months. This fact was revealed in a survey of the Confederation of British Industry.

The value and volume of business of consumer-facing firms that includes everything from cinemas and gyms to bars and restaurants was weaker in the past three months since November 2001. CBI’s chief economic adviser Ian McCafferty stated: “Services sector companies are worried about their business prospects because consumers are reining in spending on entertainment, eating out and leisure, while professionals offering services like property, law and accountancy have witnessed their profits flatten off as costs continue to increase strongly.” The findings echo the latest the Chartered Institute for Purchasing and Supply research report into the sector that noticed services were almost stagnating in April.

UK’s prison health services need support

Mental health services in the UK prisons are not getting the attention and the investment that they badly need for providing adequate care. Research has shown that £300 a year is spent on mental health care of a prisoner, just a third of the amount spent on those with acute problems in the community.

The Sainsbury Centre for Mental Health and Lincoln University team has identified regional variations in spending after analysing available NHS figures. Responsibility for prison healthcare (across England and Wales) was passed to the NHS in 2006 from the Prison Health Service, to bring it up to the standards provided to the general public.

According to experts, over 90 per cent of prisoners suffer from some type of mental health problem, which is four times the rate in the general public. Also, the risk of a prisoner committing suicide is almost seven times higher than normal. Sean Duggan of the Sainsbury Centre stated: “Many in-reach teams are struggling to provide a decent service owing to inadequate funding; we need a major boost in spending, especially in those areas, which are falling behind (on this count).”

The government under pressure to rethink proposed hike in taxes on polluting cars

The UK government is under intense pressure from hauliers and also its own MPs to change its mind on measures, which threaten to increase the driving cost. The Labour MPs state that ‘poorer’ motorists will suffer most from the intended plan to hike road taxes on heavily polluting cars. Apparently, road hauliers are also angered that fuel duty is set to increase by 2p this autumn. However, environment minister Joan Ruddock stated, the government could not (afford to) lose sight of the environment agenda even while she sympathised with motorists.

The MPs state they are worried about the potential impact of a proposed change in vehicle excise duty that will see drivers paying more for heavily polluting cars registered since the 2001 end. Already 35 Labour MPs have signed a motion that calls on the Treasury to rethink about the retrospective elements of the policy.
They want to caution the chancellor that the government could well lose votes over the issue when Parliament returns next week. According to MP for Wolverhampton South West, Rob Marris, medium-sized family cars, depending on the type of engine and the of emissions, could be hit very hard.

The cost of next year’s season tickets at Premier League clubs goes up

The cost of next year’s season tickets at Premier League clubs has gone up by 8 per cent, more than double the rate of consumer price inflation, the BBC Research reveals.

The average mid-priced season ticket cost has increased to £590. Presently, Premier League clubs are gaining from television revenues that have increased sharply. However, that has not stopped a majority of them from imposing quite a substantial increase in their season ticket costs. That average hides significant variations. Sunderland have raised prices at the Stadium of Light’s north stand by almost 22 per cent, whereas Portsmouth’s prices are rising up by 17.5 per cent. On the other hand, Chelsea have opted to impose no hike at all.

Sunderland can fairly claim that a typical season ticket (at £445) is still cheaper than Chelsea’s £790 even after the big increase. Many fans of champions Manchester United are already complaining about hefty price rise since the MU was taken over by American owners. A season ticket in the upper east stand will cost £665, a 6 per cent increase on last season.