Top news
- BoE governor suggests rate cuts could now be more aggressive
- The great second-home sell-off?
- MasterChef winner announces latest high-profile restaurant closure
- Gen Alpha becoming 'most influential' financial force
- Is this why Lidl's expansion has slowed?
Tips and advice
- Best savings rates right now
- Different ways you can beat inheritance tax
- Bank launches £150 switch deal - but there's a catch
- How UK maternity pay compares globally
Cheap Eats special
- Where this two Michelin-starred chef goes to eat
- Top chef reveals cheap fried chicken recipe
- Cheap pasta dish - and 'best pita and pho in London'
- Noodles hack from Great British Menu finalist
Ask a question or make a comment
The best savings rates on the market right now
For this week's Savings Guide,Savings Championco-founder Anna Bowes has a round-up of the top rates to target. She writes...
Interest rates are still at 5% but we're expecting cuts over the coming months - so where might you look to stash your money right now?
In the easy access table, Chip - a financial app using Clear Bank Ltd - has increased the rate it is offering to 5% AER, - beating the previous table topper West Brom.
Topping the easy access cash ISA table is Trading 212, another financial app that uses partner banks, in this case Barclays, NatWest and JP Morgan Chase, which has upped the rate it is offering on its cash ISA to 5.1%.
The fortunes have been mixed in the fixed-term tables.
Top rates on fixed-term bonds have dropped below 5% with the top one-year now paying 4.95% with Union Bank of India. But the top paying two-year, three-year and five-year bond rates are all slightly higher than they were a few weeks ago - a welcome but surprising turn of events.
The activity of the top rates on offer on fixed-term cash ISAs has been a little more mixed.
The top one-year and two-year ISA rates have fallen slightly but the longer-term top rates have stayed steady.
So, although we are expecting interest rates to fall, there are still plenty of good opportunities to lock your money away to hedge against any cuts.
MasterChef winner announces latest high-profile restaurant closure
Chef Simon Wood has announced the closure of his Manchester restaurant, Wood.
The MasterChef 2015 winner wrote in a post on X that he "regretted" having to close down the restaurant with "immediate effect" due to mounting costs.
"We have had seven years as part of the Manchester city dining scene and I'm very proud of what the team and I have achieved," he said in a post on X.
"Sadly, with COVID rent arrears now being demanded by our landlord and an increasingly difficult marketplace, energy increases, ingredient costs and soon to be spiralling business rates we just cannot make this work."
Last week, TV chef Simon Rimmer closed his last remaining Greens restaurant with "immediate effect" just two years after it opened.
Marcus Wareing at the Berkeley, Michel Roux at Le Gavroche, Marco Pierre White at Mr White's and Monica Galetti at Mere have also all disappeared as the industry grapples with increased costs.
Gen Alpha becoming 'most influential' financial force - what impact could they have on the economy?
By Jess Sharp, Money team
Traditionally, the parents in a household hold the financial power, deciding where money is spent, paying the bills and, if they are fortunate enough, tucking some away in a rainy day fund.
But according to research, young children are gradually becoming the "most influential financial forces" in their families.
Generation Alpha, those born from 2010, are earning and saving more than ever, and they're encouraging their parents to do the same, the latest Youth Economy report from prepaid debit card app GoHenry has found.
With nearly one in 10 children already saving for a house, their forward-looking approach to money is encouraging parents to also think more carefully about how much they're saving.
One in five parents said their children had influenced them to save more, with two thirds saying they had discovered and bought new brands thanks to their kids, who are using companies that align with their values.
Part of Gen Alpha's financial savviness has come from social media, GoHenry found, with many children growing up watching bedroom businesses boom online.
One in three kids have already started or plan to set up a side hustle, with 29% motivated to do so to save in the future.
Combined, the generation has a £3.3bn spending power, the report stated.
In the last year, children aged between six and 14 earned £193m and stashed away £20.5m in savings, the report said.
Here are some of the key ways they have been spending their money via GoHenry:
- PlayStation was found to be the top shop for Gen Alpha, with a total spend of £3.9m in the past year;
- Online giant Amazon is also in the top 10, with a total spend of £2.3m;
- Shein led the online fashion space with a total spend of £1.5m;
- The generation also spent more than £3m on food delivery services;
- Girls spent £4m on health and beauty products.
What impact could Gen Alpha have on the economy as they get older?
GoHenry's CEO and co-founder Louise Hill told the Money team that Gen Alpha is already "shaking things up" and has the potential to be the "most economically powerful generation" yet.
"Gen Alpha is quickly becoming the most influential financial force in their households. Influencing their parents on how to budget more effectively and spend more responsibly, these kids are changing the face of family finances," she said.
"What's especially exciting is their forward-thinking approach to money - whether it's saving up for something special or even launching a side hustle, they're showing us what smart financial habits look like."
She explained that a solid financial education will be vital to unlocking their potential.
"As they grow older, their impact on the economy and retail will only get stronger - especially in how we think about purchases, including shopping more sustainably," Ms Hill added.
"Gen Alpha knows what they want, and they're pushing their families to support brands that align with their values.
"For brands looking to connect with this generation, social media is where it's at."
M&S launches expanded Christmas recruitment drive
M&S is looking for 11,000 more temporary customer assistants from mid-November - more than 1,000 new roles compared with last year.
Anyone interested in joining M&S teams on the shop floor can apply from 9 October.
M&S operations director Sacha Berendji said: "Our fantastic store colleagues play such a big part in delivering the magic of M&S at Christmas to our customers. And this year we're recruiting even more colleagues to ensure we're closer to customers."
B&Q launches refurbished products line
B&Q has launched a discounted refurbished items range.
The DIY giant's new "Refurbished by B&Q" line comes from products returned by customers which have been tested and cleaned by technicians.
They can then be purchased by new customers "like new".
Theretailer'scategory director of building, Steve Lodge, said: "At B&Q, we want to make it easier for our customers to complete their projects and help them make decisions they can feel good about – whether it be through affordable prices or minimising waste."
The company has also expanded its tool hire service.
Huge shift in interest rate cut expectations
By James Sillars, business reporter
Wow. Four words from the governor of the Bank of England and markets are now pricing in a shock – but welcome - interest rate cut.
There was a huge shift in expectations for the next rate-setting meeting in November after Andrew Bailey told The Guardian the bank could be "a bit more aggressive" in its approach.
He tempered his remarks by saying that its main inflation indicators would need to continue to fall and he worried about the potential threat to prices from oil costs, given the conflict in the Middle East.
Despite that, 98% of bets are now on a rate cut at the meeting on 7 November. Ahead of Thursday's open, a majority had expected no change.
The shift meant that the pound lost three quarters of a cent against the dollar and more than half a cent against the euro.
Higher interest rates tend to be supportive of a domestic currency.
The FTSE 100 opened 0.2% up, with the weaker pound boosting constituents who make money abroad, as those revenues are worth more when booked back in the UK.
Is this why Lidl's expansion has slowed?
Over the last year we've had reports of Lidl's expansion programme noticeably slowing - and now we have some clues as to why.
Interest costs of over £1bn for Lidl's parent company are having a significant impact.
Lidl Stiftung & Co KG had interest expenses of €1.025bn in the 12 months to 29 February 2024, up from €462m the previous year, according to The Grocer.
Lidl, like its discount rival Aldi, expanded rapidly through new store openings after the financial crisis.
But it scaled back its store openings early in 2023, from around 50 supermarkets a year to around 25.
However, as Lidl marks its 30th anniversary this year, it announced in June that it was looking to open hundreds of new stores across the UK.
The great second-home sell-off?
The latest data release from Zoopla provides some interesting insights into the state of the housing market, with the lowest mortgage rates in 15 months driving a boost in buyer demand.
The number of new sales agreed is 25% more than a year ago, as buyers return to the market. The biggest increase was in the East Midlands (32%) and the North East (30%).
A third of houses for sale on Zoopla are currently "chain free", a notable rise as investors and second home owners look to sell"dueto recent tax changes and speculation more may follow in the autumn budget"- for example, there have been reports capital gains tax could rise.
The most common chain free homes are two-bed houses, with 41% currently listed as chain free on Zoopla.
Many English councils are expected to double council tax for second homes in 2025. Coastal and rural postal areas popular with second home owners, such as Truro (47%), Torquay (44%), Exeter (41%), Lincoln (41%) and Bournemouth (40%), have all seen available supply increase by over 40%, as a result (Zoopla says) of these incoming tax changes.
However, annual house price growth is still negative in these areas with rising supply keeping house prices in check.
Interestingly,not all homes are brand new to the market. A fifth of homes currently for sale were previously on the market at some stage in the last two years.
"Lower mortgage rates are delivering a much-needed confidence boost to homeowners, many of whom have sat on the sidelines over the last two years," says Richard Donnell, executive director at Zoopla.
"Market activity is up across the board and expectations of lower borrowing costs will continue to bring buyers and sellers into the market."
Affordability continues to be one of the biggest constraints on house price growth, especially in southern England. That said, London prices have had the biggest turnaround - from annual price falls of -1.7% a year ago, to modest gains of 0.5% today.
Home values in Northern Ireland are 5.5% higher, having under-performed the rest of the market in recent years.
Zoopla says it expects the large number of homes coming on the market to ensure house price growth remains"in check".
Aldi £10 cheaper for a shop than Tesco - even with Clubcard
Aldi has once again beaten its German rival Lidl to be named the cheapest supermarket in September.
Which? looked at a shopping list of 59 items and found Aldi groceries cost £102.68 on average across the month.
This beat Lidl by £1.18, while an equivalent basket at Tesco cost £10.28 more even with a Clubcard. Those shopping at Sainsbury's using a Nectar card would pay £11.11 more than Aldi. Waitrose was the most expensive supermarket, with the items costing £27.69 more (27% higher).
Which? looked at popular grocery items, including Birds Eye Peas, Hovis bread, milk and butter.
Ele Clark, Which? retail editor, said: "Given the ongoing strain of high food prices on household budgets, it's understandable that many people are choosing discounters to cut costs. By switching supermarkets, consumers could save 21%, highlighting the advantages of shopping around."
September 'was good month for bargain hunters' as shop prices fell
Shop prices fell at their fastest rate in three years last month as retailers tried to entice customers through the doors with discounts and deals.
Overall shop price deflation was 0.6% in September - down from deflation of 0.3% the previous month, according to the British Retail Consortium, which said it was a "good month for bargain hunters as big discounts and fierce competition pushed shop prices further into deflation".
Non-food items saw the steepest deflation, at -2.1%.
Helen Dickinson, chief executive of the BRC, said: "Shop price inflation is now at its lowest level in over three years, with monthly prices dropping in seven of the last nine months.
"This was driven by non-food, with furniture and clothing showing the biggest drops in inflation as retailers tried to entice shoppers back. Food inflation edged up slightly as poor harvests in key producing regions led to higher prices for cooking oils and sugary products."
However, she warned that ongoing geopolitical tensions, alongside climate change, could reverse this trend.
The price of olive oil, in particular, rose steeply as countries including Greece, Morocco and Turkey suffered a lower output due to the natural olive growth cycle, while Spain and Italy faced extreme heat, drought and pathogen attacks.
We investigated the soaring price of olive oil earlier this year, and found bacterial infections, gangsters and more were to blame: