Bank of England governor Andrew Bailey has identified 'global shocks' as a significant threat to the UK economy. During a treasury committee session, he expressed concerns about the situation in the Red Sea, especially regarding oil supplies. Recent attacks by Iran-backed Houthi rebels on cargo ships in the Suez Canal have prompted some vessels to reroute for safety reasons. Oil giant BP even temporarily halted all oil shipments through the Red Sea due to the threat. Bailey said that these disruptions could impact shipping prices and costs, which would have implications in the monetary policy realm. However, he noted that there has not yet been a prolonged spike in oil prices. Deputy governor Sarah Breeden also highlighted the threat of uncertainty, encompassing macroeconomic conditions, geopolitical tensions, credit risks, and unemployment. Regarding the UK housing market and interest rates, Bailey observed that market interest rates have recently decreased, resulting in lower mortgage costs.
Family hubs now open in 75 areas
11 Jan 2024
Family hubs have been established in all 75 local authorities across England to provide support and services for parents and children. These hubs offer a centralised location for a wide range of services, including early language development, mental health support for parents and caregivers, and programmes to enhance children's home development. The initiative is part of the Government's effort to invest around £300 million in expanding family hubs and improving Start for Life services for families with children aged 0-19 (or 0-25 for those with special educational needs and disabilities). The launch of the Start for Life Little Moments Together campaign coincides with this development, aiming to provide resources and guidance to help parents enhance their child's development during everyday activities. These efforts aim to offer universal support to parents and families at various stages of life, emphasising the importance of early childhood development. The Government is actively supporting families through initiatives like the Supporting Families programme and transforming children's social care to provide early support and intervention when needed, ultimately enhancing the well-being of families across England.
The Government has revealed plans for the largest expansion of nuclear power in 70 years, aiming to reduce electricity costs, create jobs, and enhance energy security. By 2050 the UK will quadruple its nuclear generation capacity to 24 gigawatts (GW), equivalent to a quarter of the country's electricity needs. This includes exploring the construction of a GW-scale power plant and investing £300 million in advanced nuclear fuel production, reducing reliance on Russian sources. There are plans to secure 3-7GW of investment decisions every five years from 2030 to 2044 for new nuclear projects. Small modular reactors (SMRs) will play a crucial role in this expansion. The Government also seeks to streamline the development of new power stations and introduce smarter regulations to accelerate nuclear projects while maintaining safety standards. The nuclear sector could provide direct heat for industry, energy for green hydrogen production, and medical isotopes for cancer diagnosis and treatment. The expansion is expected to create around 80,000 skilled jobs in the civil and defence nuclear workforces.
The junior doctors’ strike, the longest-ever in NHS history, resulted in the postponement of over 113,000 patient operations and appointments - bringing the total since December 2022 to 1,333,221. Patients are bearing the brunt of this action, facing multiple cancellations, eroding confidence in healthcare. NHS leaders warn that the strike's impact could linger for months. As colder weather increases the demand for hospital treatment, the strain on staff remains considerable. Experts suggest that the number of cancellations could be twice as high as reported, as hospitals refrained from booking pre-planned operations during strikes. The British Medical Association has called for a 35% pay raise for junior doctors, citing a 26.1% real terms pay cut between 2008 and 2022. When the Government offered an 8.8% pay rise and an additional 3%, the doctors rejected it. NHS consultants recently took strike action and negotiated a 4.95% pay increase to add to the Government's 6% offer. The strike's aftermath will continue to affect healthcare services, prompting calls to end such actions.
The Church Pastoral Aid Society (CPAS) has faced backlash for endorsing conservative views on same-sex relationships in a statement on its website. The statement, which endorsed the Evangelical Alliance's affirmations on human sexuality, received criticism from liberal Anglicans on social media. In response to the negative reactions, the link to the statement on CPAS's website was deactivated and now reads 'Page Not Found.' CPAS, which supports local churches in mission and evangelism, has been accused of endorsing homophobia and suppressing LGBTQI+ desire. The Church of England has been divided over same-sex relationships, with some churches threatening to leave and others seeking alternative pastoral support. Critics argue that CPAS's stance contradicts an affirmation of human sexuality and promotes discrimination against LGBTQI+ individuals.
Sweden: alarm after warning to ‘prepare for war’
11 Jan 2024
Civil defence minister Carl-Oskar Bohlin and commander-in-chief Gen Micael Byden have issued warnings to prepare for the possibility of war in Sweden, raising concerns and accusations of alarmism. Byden urged all Swedes to prepare mentally for such a scenario. Their remarks have sparked debate, with some opposition politicians and organisations expressing objections to the tone of the warnings, while others see it as a necessary wake-up call. Sweden, having enjoyed over two centuries of peace, is close to NATO membership, pending approval from Turkey and Hungary. Gen Byden's comments come in the context of Sweden's involvement in training Ukrainian pilots and considering sending advanced fighter jets to Ukraine. Despite the stark messaging, both officials emphasise the importance of raising awareness and preparedness rather than causing undue panic. They call on local authorities, emergency planners, and individuals to take action.
An operation is under way to evacuate livestock trapped for days on an island in the River Danube. Last week up to 200 cattle, calves and horses were stranded on Krcedin island, northwest of the capital Belgrade, after water levels swelled, blocking their passage back to shore. Rescuers are now under pressure to save the rest as freezing temperatures and fears of starvation set in. Unseasonably mild weather in the Balkan region in late 2023 led to melting snow that caused water levels to rise sharply. But this week, the balmy weather gave way to snow and freezing temperatures, raising fears for the animals' survival. Evacuation efforts began on 9 January, when some sixty animals were saved. An environmental group said that the cattle were exhausted; some had lost as much as 50 kg of their weight. There would be extra difficulties in rescuing dozens of wild horses, which are not used to human contact except for people bringing them food. Speed has now become of utmost importance, because of the freezing conditions and increasing hunger.
Global: average temperatures hottest ever
11 Jan 2024
2023 has been declared the hottest year on record by European agency Copernicus, which monitors climate data. The average temperature increase was almost 1.5°C above pre-industrial levels, a significant jump. Several factors contributed to this record-breaking heat. Elevated greenhouse gas emissions, primarily carbon dioxide, played a major role, trapping heat in the Earth's atmosphere. Additionally, natural climate patterns like El Niño and La Niña influenced regional temperatures and weather events. The consequences of this extreme heat are far-reaching. It leads to more frequent and severe weather events, including heatwaves, droughts, wildfires, and intense rainfall - posing serious threats to ecosystems, agriculture, and human populations. International agreements, like the Paris Agreement, aim to limit global warming to well below 2°C above pre-industrial levels. Achieving these goals requires a collective commitment to reducing greenhouse gas emissions, transitioning to renewable energy sources, and implementing sustainable practices across various sectors. The report underscores the importance of addressing climate change promptly to mitigate its impacts and protect the planet's future.