Wednesday 2 September

GREAT PORTLAND STREETS WHY OREGON MIGHT BE THE BEST OF THE US WEST P20-21

BORIS: NOT THIS

out of the running to become Conservative party leader late last night, making Rishi Sunak the odds-on favourite to become the country’s next Prime Minister.

Johnson claimed he had secured the backing of more than 100 MPs –the threshold needed to get on the ballot to become Liz Truss’ replacement –but that he had decided “this would not be the right thing to do”.

“You can’t govern effectively unless you

have a united party in parliament,” Johnson said. Some Conservative MPs had made it known privately in recent days that they would not be able to stay in the party if Johnson, who left Number 10 after a string of scandals in September, returned to the top job.

Rishi Sunak, who has already secured 159 nominations to become leader, will now watch to see if his only remaining rival Penny Mordaunt can secure 100 backers by 2pm today. She had 29 declared backers last night, and would need a significant shift from Boris’ supporters to make up the ground.

If Mordaunt does not make the threshold, Rishi Sunak will become Prime Minister this Friday.

“I am afraid the best thing is that I do not allow my nomination to go forward and commit my support to whoever succeeds,” Johnson said. Yesterday he had talks with both Sunak and Mordaunt in efforts to broker joint tickets but to no avail.

Sunak formally

MARCUS MAGIC QUINS SHOW A SPARK AGAINST SHARKS P22

launched his bid to become leader yesterday, saying: “I served as your Chancellor, helping to steer our economy through the toughest of times.

“The challenges we face now are even greater. But the opportunities –if we make the right choice –are phenomenal.”

He lost to Liz Truss in the last Conservative leadership election, which ran over the summer.

Markets were choppy at the end of last week as Johnson emerged in the race to seize the keys to Number 10.

Bond yields fired higher, with rates on both the 10-year and 30-year gilt ending the week above four per cent.

Whoever wins the Tory leadership race will need to keep Jeremy Hunt as chancellor to appease the financial markets, analysts are urging.

“While a new PM would be within his or her rights to leave their stamp on the Budget, a departure from [last] week’s new course, or even the timetable, risks inflicting renewed damage to the UK’s credibility,” Philip Shaw, chief economist at Investec, said.

City grandee: ‘Pathetic’ to let blackout fear weaken war against ‘fascist’ Putin

NICHOLAS EARL

BRITS should ditch their social media support for Ukraine if they are unwilling to face blackouts this winter, according to a City grandee now leading a coalition of green energy firms.

Lord Adair Turner (pictured), who was chairman of the Financial

Services Authority during the financial crash and also served as CBI director general, told Times Radio yesterday that the prospect of blackouts was not “absolutely terrifying” and that it would be “pretty pathetic”

not to continue supporting Ukraine in the face of supply shortages.

Blackout risks were a price worth paying in the war against a “fascist dictatorship”, said He said: “Frankly, if you’re not able to face that, don’t tweet a

Ukrainian flag and say that you’ve got sympathy and support for the Ukrainian people.”

Turner’s comments follow warnings from the National Grid of three-hour rolling blackouts in January in a potential extreme worst-case scenario.

Despite the risks, he argued the west had to confront Russia’s

ability to influence wholesale markets.

Turner said: “Let’s be clear, we are engaged in a war. We are not fighting that war, that is being fought by the extraordinarily brave Ukrainian men and women. But we are engaged in a war and it’s a war for democracy, and against a fascist dictatorship.”

CITY A.M. STAFF

STANDING UP FOR THE CITY

High-tax Rishi isn’t perfect –but he’s the right, and safe, choice

THE CHOICE facing Conservative MPs today is a difficult one. They are behind in the polls, and fear for their political future. They are facing global headwinds that have upped the price of everything from energy to bread and butter. And they are also forced to grapple with their associations –a small but influential band who can, if pushed too far, precipitate an ignominious end to a career. They are also facing a list of less

THE CITY VIEW

than perfect options. Penny Mordaunt is untested at the highest level of government and still appears unclear on what she believes in. Boris is Boris –and now out of the race. Rishi Sunak was Chancellor at a period of time when taxes and borrowing both

went up at inexorable speed and who seems to sometimes struggle with the rough and tumble of politics.

But for all that, only one thought should be occupying the minds of Conservative MPs. Who is best placed to restore Britain’s market credibility –and who do we trust the most to make politics boring again. It is hard to conclude the answer is anybody but Rishi Sunak. The former Chancellor has been all too close to plenty of bad

decisions. The increase in national insurance in the middle of a cost of living crisis remains baffling. He has been given too much credit for predicting the outcome of Trussonomics on market sentiment when his apparently brave forecasts were already priced in by most market economists, not least on the increase to interest rates. And he has so far in office talked a far better game on post-Brexit reforms to financial services or on

boosting Britain’s growth rate than he has shown on the pitch of political action. This, in particular, must change. But for all that, a Sunak premiership would –we hope –be dull and, most probably, competent. A further dalliance with Boris would have created the same vortex we’ve seen before, sucking in attention and focus when the country has genuinely pressing concerns. Sunak is the safest choice, and that is enough.

WHAT THE OTHER PAPERS SAY THIS MORNING

THE DAILY TELEGRAPH

UK LOCKED IN TWO-HORSE RACE TO CRACK NUCLEAR FUSION, SAYS JAPANESE FIRM Britain is locked in a two-horse race with the US to crack nuclear fusion first and generate vast amounts of cheap clean power, an executive at a Japanese challenger business has said.

THE FINANCIAL TIMES

PRICE OF RED WINE TO SOAR AS UK DITCHES DUTY FREEZE

Prices for some of Britain’s favourite rich red wines are set to soar, growers and importers have warned, after ministers reversed plans to freeze duty rates ahead of an alcohol duty overhaul that will penalise stronger drinks.

THE GUARDIAN

AUSTERITY COULD BE MORE DIFFICULT THIS TIME ROUND, SAYS LORD KING

Average earners, rather than the wealthy, will be required to pay significantly higher taxes to finance higher public spending in the UK, the former governor of the Bank of England said yesterday.

Banks to lift the lid on hit that economic storm will deliver to their balance sheets

ANNA WISE

BRITAIN’s biggest lenders will shed light on how well they are riding out the economic storm when they unveil their latest quarterly financial results this week.

Lloyds Banking Group, Natwest Group, HSBC and Barclays are all set to tell shareholders where their profits stand amid severe market turbulence and soaring mortgage rates.

Investors will be eager to know how the high-street banks are faring as the average two and five-year fixed-rate mortgage surged above six per cent for

the first time since 2008 this month.

The UK’s biggest lender, Lloyds, is expected to reveal slimmer profits compared to last year on Thursday.

Lloyds will report statutory pre-tax profits of £1.88bn in the third quarter, a drop from the £2.03bn posted in the same period last year, according to the market consensus.

The group is expected to have swung to a loss from impairment charges in the latest quarter, with £285m in losses estimated compared to the £119m it held on to in credit last year.

This could mean that the lender expects to lose more cash from customers

defaulting on their loans.

Sophie Lund-Yates, an equity analyst at Hargreaves Lansdown, said: “All banks feel the pinch in the face of economic downturns.

“Lloyds is especially exposed because of its reliance on traditional banking.

Classic loans, day-to-day accounts and mortgage lending are the core of the business, unlike other names which have more exposure to trading and investment bank activity.”

Banks are facing a growing risk of bad debts if rising interest rates hit homeowners with higher mortgage repayment costs that they cannot afford.

Weakening consumer sends profit warnings up sharply

JACK BARNETT

BRITS cutting spending in response to the cost of living crunch has driven a sharp uptick in the number of businesses warning profits will fall short of expectations, a new report out today shows.

Some 86 listed companies issued a profit warning in the three months to September, up from 51 over the same period last year, according to consultancy EY.

Warnings were concentrated among consumer-focused firms, mainly sparked by households

reining in spending in response to soaring prices –up 10.1 per cent over the last year –and energy bills eroding their finances.

EY said “many companies saying that they are struggling to pass on price increases to customers, while falling consumer confidence and changing buying behaviour featured in 50 per cent of warnings”.

The survey illustrates the damaging impact the weakening economy is having on some of the UK’s largest businesses.

Economists expect the country to tip into a recession soon.

TUTTI FRUTTI The Green Man led festivities yesterday for the postCovid return of Borough Market’s Autumn festival

King: Covid-19 QE contributed to high inflation

JACK BARNETT

CENTRAL banks were wrong to inject money into their respective economies through Quantitative Easing (QE) during the pandemic, the former governor of the Bank of England said today.

Speaking to the BBC, Mervyn King, who steered the central bank through the global financial crisis, accused monetary authorities of losing “control of inflation”.

The Bank’s decision to keep pumping money into the economy during the Covid-19 crisis was a “mistake” that fuelled inflation.

“All central banks in the west, interestingly, have made the same mistake… central banks decided it was a good time to print a lot of money. That was a mistake,” King said.

“We had too much money chasing too few goods,” he added.

The Bank of England, US Federal Re-

serve and European Central Bank all ramped up their bond buying programmes –known as Quantitative Easing –during the pandemic to support asset prices and keep financial conditions loose.

Experts have argued this drove inflation higher in the western world by stimulating demand. However, critics say QE does not cause inflation as most of the extra money is contained in the financial system and does not trickle down to the real economy.

Prices have risen 10.1 per cent over the last year in the UK, the fastest acceleration in 40 years.

That rate is now over five times the Bank’s two per cent.

Current governor Andrew Bailey and the rest of the monetary policy committee have raised interest rates seven times in a row to 2.25 per cent, including two back-to-back 50 basis point hikes.

Consumer confidence falls again as price rises bite

CITY A.M. REPORTER

UK CONSUMER confidence fell for a fifth consecutive quarter, according to fresh data released today, as people’s finances continue to come under increasing pressure from rising food prices and energy bills.

Consumer confidence fell by one percentage point to a historically low minus 20 per cent, the Deloitte Consumer Tracker found – twice as low as

one year ago.

Some 30 per cent of consumers surveyed said they are now spending less, up from 21 per cent at the start of this year. Of these consumers, 58 per cent said they are spending less specifically to save money.

Two in five consumers said they are spending less on going out and on leisure activities as a way to save money.

Deloitte’s analysis also found that more people were buying and selling

second-hand items in a bid to earn and save more cash.

Ian Stewart, chief economist at Deloitte, said: “High inflation has driven consumer sentiment sharply lower this year despite a red hot labour market. Now consumers are starting to worry about the outlook for jobs.

“With inflation elevated, interest rates on the rise and the labour market starting to cool, the squeeze on spending is likely to intensify.”

Consumer confidence is now at a historic low, according to the Deloitte Consumer Tracker

Diwalideadline passes for UKIndia trade deal

STEFAN BOSCIA

THE UK has missed its deadline to sign a trade deal with India by Diwali, with no end in sight to negotiations between the two most powerful Commonwealth countries.

The Department for International Trade said the UK and Indian governments have “closed a majority of chapters” of the deal, but that there will be no announcement to coincide with the Indian holiday today.

There is no set date for the next formal round of negotiations and a Whitehall source said there would not be any new formal deadlines set for the postBrexit trade deal.

Boris Johnson first promised a “trade deal by Diwali” during his trip to New Delhi in April and Liz Truss also com-

son from above in a move that angered Whitehall officials.

Negotiations have hit several hurdles over the past month as the former home secretary Suella Braverman blocked any suggestion of granting more visas to Indian nationals, saying they were “the largest group of people who overstay” visas – comments that reportedly enraged Indian officials.

There have also been fundamental difficulties in getting the Indian government to change its protectionist stance.

Trade secretary Kemi Badenoch told BBC Scotland 10 days ago that she was no longer working to the Diwali deadline in under-the-radar comments.

A Department for International Trade spokesperson said: “We are negotiating an ambitious Free Trade Agreement that works for both countries. We have already closed the majority of chapters and look forward to the next round of talks shortly.”

NOT MY CIRCUS Starmer hits out at ‘chaotic circus’ of Tory party

LABOUR leader Sir Keir Starmer yesterday hit out at the “ridiculous, chaotic circus” that is the Tory leadership race as he called for a general election. Labour is now leading the Tories in every major poll by over 21 points.

Tim Martin: Rishi right choice in chaotic democracy

JAMES SILVER

THE OUTSPOKEN, Brexit-backing boss of JD Wetherspoon has thrown his weight behind Dishi Rishi in the race to become the next Prime Minister.

Tim Martin (right), writing for City A.M., says that former Chancellor Rishi Sunak has the “best chance of placat-

son on campaign stops, says he still has doubts over Sunak’s role in Johnson’s high-tax, high-spend government.

“Rishi’s reasonable defence is that Boris was the financial eminence grise, issuing profligate spending orders galore, whereas he, merely the finance director, needed to

instincts,” Martin writes.

The pub boss characterises the race as “democracy in action: egotism, irrationality, feckless candidates, false promises and financial recklessness” but says that stands in contrasts with an “undemocratic” European Union that he remains pleased to have departed.

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Ovo featured on Ofgem’s list for nationalisation

NICHOLAS EARL

OFGEM was preparing for the potential nationalisation of Ovo Energy this summer, according to reports.

Plans were drawn up by the watchdog for its potential administration in July earlier this year, according to The Financial Times, with the company deemed both vulnerable and “too big to fail”.

Last month, Ovo’s filings to Companies House exposed its fears for the supplier’s viability prior to the government unveiling a support package for households.

The country’s third biggest supplier, which is home to 4.5m customers, had warned there was “a material uncertainty that may cast significant doubt on the group’s and company’s ability to continue as a going concern”.

If Ovo had collapsed this year, it would have been the second supplier to enter special administration following Bulb Energy’s fall from grace last November.

Bulb has been placed on life support ever since, propped up by regular transfusions of public cash, reportedly costing British bill-payers as much as £4bn. Ovo has since confirmed it no longer

has financial concerns over its future, and that recent interventions by the government and the regulator had improved certainty.

When approached for comment, an Ovo spokesperson said: “Ovo remains in strong financial health and despite the extreme volatility of the global energy market we have not breached any covenants.

“With our conservative hedging policy we are well positioned for the winter ahead. Ovo is not and has never been at risk of administration.”

Nevertheless, its recent play for Bulb Energy last week reflects a seemingly Lazarus-like turnaround for the supplier, which has surprised people across the industry.

Ovo is now attempting to gazump rival Octopus Energy with an eleventh hour bid for Bulb.

The group’s chief executive Stephen Fitzpatrick has written to the fallen firm’s administrators to confirm its interest, as first reported by Sky News.

Despite the latest twist, City A.M. understands the government has been closing in on a deal with Octopus for Bulb over the past few weeks.

Renewable revenue cap risks supply security and higher energy bills

NICHOLAS EARL

THE GOVERNMENT’s proposal to cap revenues on low carbon generators risks supply security and condemns customers to higher energy bills, one of the UK’s leading trade groups has warned.

Energy UK argued that the recently unveiled Cost-Plus Revenue Limit threatened to cut

the investment needed to safeguard the country’s energy security, cut customer bills and reduce its dependence on expensive gas. It has slammed the proposal as a “de facto windfall tax”, contrasting the revenue cap with the Energy Profits Levy for oil and gas producers, which offers investment relief of up to 91 per cent for new projects in the North Sea. There is no

comparable relief in the new levies for low carbon producers.

Energy UK’s deputy director Adam Berman said: “Cementing a tax regime that gives preferential treatment to oil and gas would send a disastrous message about the UK’s commitment to the low carbon solutions that offer the quickest way out of the energy crisis, cost of living crisis and climate crisis.”

Energy giant Shell takes second stake in Qatar’s mega LNG project

NICHOLAS EARL

SHELL has invested in the second phase of a mega liquefied natural gas (LNG) project in Qatar, just three months after buying into the initial stages of the development.

The energy giant was selected yesterday to participate in the next wave of Qatar’s LNG expansions – the North Field South project (NFS).

Shell will acquire a 9.375 per cent participating interest in the NFS

project, worth around $1.5bn.

This follows French rival Totalenergies joining the project in September with an identical stake.

Qatar’s energy minister Saad AlKaabi has allocated 25 per cent for international partners. Qatar Energy will hold the remaining 75 per cent.

Kaabi has previously announced plans to offload stakes to four companies in total, meaning there is a 6.25 per cent stake to be shared between two more companies.

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MPs: Crack down on ‘enablers’ of tax avoidance

LOUIS GOSS

A GROUP of cross-party MPs have called on the UK government to begin cracking down on the accountants and financial advisors that facilitate tax avoidance schemes.

In a new report, the all-party parliamentary group (APPG) on anti-corruption and responsible tax called for the UK’s tax system to be overhauled to boost growth, increase tax revenues and restore trust in the system.

Tory MP Kevin Hollinrake called for a greater focus on “enforcement” as he pointed to Treasury Select Committee figures showing every £1 spent on enforcement collects £26 in extra revenue.

The MP said the UK should “spend more on prosecutions, particularly of advisors” as he argued “enablers” of tax avoidance schemes should be subject to greater scrutiny.

Hollinrake argued advisors play a

major part in facilitating tax avoidance as the former businessman recounted that “some years ago, once our business started making decent profits, it was our accountants that suggested we should consider a tax avoidance scheme”.

He noted that few advisors are ever prosecuted, due to a reluctance on the part of HM Revenues and Customs (HMRC) and the Treasury to pursue accountants and other professionals through the courts.

At the same time, Hollinrake noted that those few advisors who have been sanctioned by HMRC for tax fraud are still able to practice as tax advisors as there is no licensing body for those advising on tax affairs.

Labour MP Margaret Hodge said the UK’s tax system “acts in favour of taxpayers who can afford to pay advisers that can help them avoid paying a fair share”.

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LLOYD’s of London chief executive John Neal has said he remains “hopeful” the insurance marketplace will stay in its iconic City of London HQ, amid rumours the firm is planning to exit its purposebuilt Grade I listed offices when its lease ends in 2031.

In an interview with The Times, the insurance chief executive said Lloyd’s is “still talking” with its landlord, Ping An, as he said he is “hopeful” a deal will be done. The comments come after Lloyd’s said in January it is “considering a range of options” around its “workplace strategy” as part of efforts to adapt to the increased digitalization of its business and the rise of flexible working in the wake of Covid-19.

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Glencore probed over payment to Zambia minister

LOUIS GOSS

ZAMBIA’s Anti-Corruption Commission has launched an investigation into a $3m (£2.65m) payment allegedly paid by commodities giant Glencore to a Zambian political party in 2016.

In a statement, the Zambian corruption watchdog said the investigation was centred on the circumstances under which Glencore allegedly paid the $3m sum before leaving the southern African country in 2021, by selling its stake in its Mopani Copper Mines local mining subsidiary.

Glencore’s exit saw the multinational sell its stake in Mopani to Zambia’s state-owned mining company ZCCM for a nominal sum of just $1 last year, in a deal that saw the Zambian government take on $1.5bn worth of the mining operation’s debt.

The watchdog said in a statement it had interrogated Zambia’s former de-

fence minister Davies Chama as part of its investigation into the $3m payment.

Chama previously served in the cabinet of former Zambian president Edward Lungu following the Patriotic Front (PF) party’s electoral victory in 2016, before the social democratic PF was pushed out of government by the liberal United Party for National Development’s landslide electoral victory in 2021.

Lungu’s PF government had previously held tense relations with those international mining companies invested in Zambia, including Glencore, over concerns around taxes on the sector.

The probe comes after a coalition of major investors filed a High Court lawsuit against Glencore, after bribery charges were brought against the firm in relation to a series of oil deals.

A Glencore spokesperson said: “Any suggestion of improper conduct relating to the sale of Mopani... is baseless.”

Thanks a latte: €500,000 bonus split among Illy’s 1,350 employees

ITALIAN premium coffee maker Illycaffe will pay a cash bonus to its employees to help them cope with increasingly stretched finances, its chief executive told Il Corriere della Sera newspaper on Sunday.

As soaring inflation is taking a heavy toll on household finances, especially in Europe, Illycaffe CEO Cristina Scoc-

chia said the company would split a €500,000 (£434,000) bonus pool among its 1,350 employees worldwide by the end of the month.

“We need to combine profits and social values,” she said, adding the company’s raw materials and logistics costs had increased 20 per cent this year but it had decided to compress its margins rather than raise final selling prices.

BT’s 999 call handlers to strike today

ALAN JONES

BT AND Openreach workers will stage a fresh strike today in a longrunning dispute over pay.

Members of the Communication Workers Union (CWU), including 999 call handlers, will walk out for 24 hours following a wave of stoppages in recent weeks.

CWU general secretary Dave Ward said his members remained determined to continue with the action. The union said BT’s “imposed” pay rise of £1,500 was worth between five per cent and less than three per cent, well below “spiralling” inflation. The strike comes after a string of walkouts in BT Group which took place throughout the summer.

CWU deputy general secretary Andy Kerr said: “When the 999 callers are out on strike, you know something is going very wrong in this country”.

A BT Group spokesperson said: “We will do whatever it takes to protect 999 services, redeploying our people to the most important priority is a normal part of BT Group operations.Reuters PA

Illy’s raw materials and logistics costs have increased 20 per cent this year

GIULIO PIOVACCARI

Russia hits homes close to Kherson as battle for regional capital looms

JONATHAN LANDAY

RUSSIA fired missiles and drones into Ukrainian-held Mykolaiv yesterday, destroying an apartment block in the ship-building city near the front and said the war was trending towards “uncontrolled escalation”.

Mykolaiv lies roughly 35 km (22 miles) northwest of the front line to occupied Kherson, the southern region where Russia has ordered 60,000 people “to save your lives” and flee a Ukrainian counter offensive.

Russian defence minister Sergei Shoigu, who some Russian nationalists have blamed for Moscow’s setbacks since the invasion, discussed the “rapidly deteriorating situation” in calls with French and Turkish counterparts, the ministry said.

Without providing evidence, Shoigu said Ukraine could escalate with a “dirty bomb” –conventional explosives laced with radioactive material.

Ukraine shot down 14 Russian “kamikaze” drones over Mykolaiv overnight, regional governor Vitaliy

Kim said yesterday on Telegram. The drones are designed to explode on impact and have hammered Ukraine’s energy infrastructure this month.

Russian troops have withdrawn from parts of the front in recent weeks and occupation authorities are evacuating civilians deeper into Russian-held territory before an expected battle for Kherson, the regional capital on the west bank of the Dnipro river.

Kherson is a gateway to Crimea, which Russia annexed in 2014.

‘Big day’ for EU far-right: Meloni is Italy’s new PM

CRISPIAN BALMER

GIORGIA Meloni was sworn in as Italy’s first woman prime minister on Saturday alongside her cabinet team, giving the country its most right-wing government since World War Two.

She takes office at an especially fraught moment, with Italy’s debtladen economy once again heading into recession, firms buckling under the weight of soaring energy bills and splits within her coalition over the war in Ukraine.

Head of the nationalist Brothers of Italy, Meloni swept to victory in an election last month as part of a coalition that included Forza Italia, led by former Prime Minister Silvio Berlusconi, and Matteo Salvini’s antiimmigrant League.

While Meloni has pledged support for Ukraine, Berlusconi has repeatedly undercut her, earlier this week blaming Kyiv for the war and revealing he had exchanged gifts and “sweet letters” with his old friend, Russian President Vladimir Putin.

Meloni received plaudits from Europe’s nationalist conservatives, who hope her government will prove a powerful ally in their regular battles with Brussels.

Battered japanese yen jumps as traders suspect BOJ’s intervention

LEIKA KIHARA

JAPANESE authorities likely intervened in markets to stem the slide of the country’s battered currency on Friday, market participants said, following an unexpected jump in the yen against the dollar.

The yen rose as high as 144.50 per

dollar on Friday, up more than seven yen from a 32-year low of 151.94 yen per dollar. The dollar was last down 1.8 per cent at 147.34 yen.

“It’s very clearly the ministry of finance stepping in to sell dollar-yen,” said Mazen Issa, senior FX strategist at TD Securities in New York. Karl Schamotta, chief market strategist at Corpay, concurred. “We are hearing

large blocks are being traded,” he said. “That typically means either larger institutions are moving money or that a central bank is intervening in size. The clearest evidence is just the scale of dollar selling that is happening.”

The Nikkei, citing a source, also said Japan had intervened to buy yen and sell dollars. Japan’s Ministry of Finance declined to comment.

“Congratulations Giorgia Meloni on the formation of your government! Big day for the European Right!” Hungarian Prime Minister Viktor Orban wrote on Twitter. Reuters Reuters

The falling yen is pushing up import costs and households’ living expenses

Reuters Russia said the war was heading towards “uncontrolled escalation”

Cities drive house price growth as Brits crawl back from the suburbs

VICKY SHAW

CITIES have driven house price growth this year, leaving the suburbs lagging behind, according to research.

Since the start of the year, as people have gradually returned to the office, property prices across Britain’s cities have typically grown by 9.2 per cent, compared with 7.9 per cent growth on average in surrounding areas, Halifax said.

While some cities such as Newcastle and Birmingham bucked

the trend, the finding held true for London, where property prices in inner boroughs have increased by 6.8 per cent, compared with 4.6 per cent growth on average in outer boroughs.

Andrew Asaam, mortgages director at Halifax, said a trend of people looking for greener spaces to move to, which was seen early on in the coronavirus pandemic, had remained.

He said: “That trend didn’t disappear completely this year, as house price growth in these areas

Santanders says action needed to tackle scammers

CITY A.M. REPORTER

BANKS, government and law enforcement agencies need to work together to “break the spell” of scammers, Santander has warned.

In a new report today, the lender called for more to be done to clamp down on Authorised Push Payment (APP) fraud, where customers are tricked into authorising a payment to an account controlled by criminals.

Santander said the industry needed more consistent rules on data sharing and mandatory use of confirmation of payee – a fraud prevention system that lets customers know whether the name of the person they think they are paying matches the bank account number they are sending money to.

The Online Safety Bill should also be brought forward, the bank said, and “consideration should be given to linking where the scam originally started e.g. social media platform, to who is responsible for reimbursing the victim”.

Santander data shows that over 70 per cent of purchase scams originate on social media.

It also said law enforcement agencies “need to allocate significantly more resources to tackling these type of scams.”

“The sheer scale and value of APP fraud can detract from the real impact of these crimes on individual consumers, who can lose more than just money – their confidence and mental health can also be significantly harmed,” Enrique Alvarez, head of everyday banking at Santander UK, said. “The criminals who perpetrate these scams shouldn’t be getting away with it.”

“We must all come together and address the issue, because currently the only real winners are the fraudsters.”

UK Finance reported last week that while the end of the pandemic saw a fall in overall fraud losses, over £609.8m was stolen by criminals through fraud and scams in the first half of this year. Of this total, APP fraud losses accounted for £249.1m.

Santander’s calls came as peer Metro Bank warned of a “perfect storm” for scams this winter.

“With so much upheaval from strikes, the cost of living challenges and the sheer volume of disinformation circulating, we predict that scammers will definitely try and capitalise on this to cheat the general public,” Baz Thompson, head of fraud and investigations at Metro Bank, said.

remained strong. But, as daily life started to get back to normal for many, the opportunity to live in cities became more attractive again, driving up demand.

“There’s evidence of this in locations across the country, with property price inflation in the majority of cities outstripping increases in their surrounding areas.”

The continuation of this trend looking ahead was “uncertain”, Asaam noted, with economic turbulence set to hit the market.

‘Complacent’ firms will face fines over cyberattacks, ICO head says

LOUIS GOSS

THE UK’s information commissioner has vowed to fine firms falling short on cybersecurity after warning “complacency” was the “biggest cyber risk businesses face”.

The warnings come after the UK’s Information Commissioner’s Office (ICO) today fined British construction firm Interserve £4.4m over its failure to protect its employees’ data from cyberattacks.

Information commissioner John Edwards said companies should

“expect a similar fine from my office” if they are found to have failed to have put proper protections in place.

The Interserve attack saw hackers use an email phishing scam to access personal data belonging to as many as 113,000 of the building firm’s staff.

“This data breach had the potential to cause real harm to Interserve’s staff, as it left them vulnerable to the possibility of identity theft and financial fraud,” Edwards said.

“Leaving the door open to cyber attackers is never acceptable,” he added.

Britannia Hotels sues Aviva over Aberdeen fire

LOUIS GOSS

BRITANNIA Hotels has filed a £6.25m lawsuit against its insurer, Aviva, over claims it is owed millions as a result of the London insurance firm’s refusal to pay out on a claim for losses caused by a fire at its Aberdeen hotel.

The hotel group filed its High Court lawsuit after Aviva refused to pay for losses related to repair costs and interruption to its business as a result of the 2016 fire, court filings show.

Aviva, Britain’s largest insurer, argued Britannia’s claim was invalidated due to the fire being started by repair works on the Aberdeen hotel’s roof, Law 360 first reported.

Britannia, which operates more than 60 UK hotels, admits the fire was caused by repair works on the hotel’s roof, but says it followed the proper fire safety protocols. The repair works saw workmen use a blowtorch to weld layers of waterproofing material onto a leaking roof.

The hotelier’s claim says the workmen failed to notice any smoke or flames while on the roof, meaning they would not have been able to put out any fire.

The hotel owner is claiming a total sum of £6.25m after meeting its £1.25m deductible.

Britannia and Aviva have been approached for comment.

Pimlico’s Mullins: Corporation tax cut U-turn will hit investment plans

JAMES SILVER

CHARLIE Mullins, the founder of Pimlico Plumbers, has said he plans to run for London mayor in 2024 –as an independent if the Tories don’t “have a brain (and) sign me up”.

Mullins told the Mail on Sunday that he has been thinking of entering politics for some time.

“I was going to run before, but I knew that with every policy and idea I’d been trying to put in place, people would say it’s just to benefit my own business. Now I feel I’ve got more of a free rein,” he told the newspaper.

The Conservatives are understood to be struggling to agree on a candidate for the election in May of 2024, with current Labour mayor

Sadiq Khan expected to stand for a third term.

Mullins said Prime Minister Liz Truss’ decisions to U-turn on a planned cut to corporation tax was her undoing. “Lowering corporation tax offered a strong incentive for business to invest, and reversing it showed weakness and lost people’s confidence,” he said.

Information commissioner John Edwards said complacency was the bigger cyber risk

The Pimlico Plumbers founder said he planned to run for London mayor in 2024

The average London property price has grown from £573,559 to £612,582 this year

China’s highest board packed with Xi loyalists

EDUARDO BAPTISTA

CHINA’s Xi Jinping secured a precedent-breaking third leadership term yesterday and introduced a new Politburo Standing Committee stacked with loyalists, cementing his place as the country’s most powerful ruler since Mao Zedong.

The new seven-man Politburo Standing Committee is made up entirely of Xi loyalists, including Shanghai party chief Li Qiang, who is on track to replace Li Keqiang as premier in March.

Breaking with a tradition of factional checks and balances stretching back to Mao’s death in 1976, Xi installed a leadership configuration of loyalists with three of the four new Standing Committee members owing their political rise to Xi, and the fourth believed to be closely aligned with him.

This comes after former President Hu Jintao, 79, on Saturday was unexpect-

edly escorted out of the closing ceremony of a congress of the Communist Party.

Video footage published by AFP showed Xi Jinping’s immediate predecessor looking distressed and appearing to resist leaving as the stewards escorted him out.

Russian President Vladimir Putin congratulated Chinese President Xi Jinping yesterday and said he looked forward to further developing a “comprehensive partnership” between their two countries. “The results of the Party Congress fully confirm your high political authority, as well as the unity of the party you lead,” Putin told Xi, according to the Kremlin’s website.

North Korea’s leader Kim Jong Un also sent a congratulatory letter to Xi Jinping on his reelection as China’s leader, saying he hoped to further develop their ties, state news agency KCNA reported yesterday.

Earlier this month drivers spent hours queueing for petrol after strikes at oil refineries

France says it is ‘on the right track’ to easing petrol supply problems

MATTHIEU PROTARD

THE FRENCH government yesterday said that France was on the right track to easing the problem of petrol service stations not having enough petrol due to strikes at oil refineries.

Data on Friday showed that about 13 per cent of petrol service stations still had supply problems, down from over 30 per cent last weekend.

The strikes have been held by some

Totalenergies staff, who are demanding a higher pay rise to take into account rising inflation and the large profits made by Totalenergies.

“We are on the right track,” government spokesman Olivier Veran told Europe 1 radio.

“The crisis at the service stations will be finished when we no longer have any French person who is forced to queue up at a petrol station to fill up,” he added.

Inflation ignites street protests in Hungary

KRISZTINA THAN

THOUSANDS of Hungarians including teachers and students marched through Budapest yesterday to protest against the government, demanding higher wages for teachers and a curb on surging inflation that is eroding incomes.

Walking across a bridge over the Danube, protesters held up banners like “Orban get lost” and “No teachers, no future”, a few hours after Prime Minister Viktor Orban pledged to preserve economic stability and maintain a cap on household energy bills even as the EU slides into an “economic crisis”.

But at the latest in a series of antigovernment protests participants said his government had let teachers down by giving them meagre salaries, while inflation, which topped 20 per cent in September and is still rising, was becoming unbearable.

Gyongyi Bereczky, a mail carrier who joined the protests, said: “We cannot save up at all anymore, simply we cannot make ends meet as prices are soaring.”

STANDING UP FOR

Reuters

Body Shop boss plots expansion as he bets on benefits of social contact

JAMES SILVER

THE BOSS of the Body Shop is planning to open more than two dozen new stores in the UK as the iconic beauty chain rebounds from the Covid-19 pandemic.

David Boynton told The Guardian in an interview this weekend that “people have been telling me for more than 10 years that retail is dead.

“But our industry is highly experiential and stores fulfil that brief. We are social creatures and like

being with other people,” he told the newspaper.

A number of retail chains have used the collapse in the cost of high street retail space due to falling demand as an opportunity to expand their bricks and mortar presence.

Footfall remains slightly subdued in city centres compared to before the pandemic, notably in central London which has also been hit by the relatively slow rebound of tourism into the UK.

The most recent data from

Springboard, which measures footfall across the UK, suggested the number of people out and about in the centre of the capital was down around 17 per cent compared to 2019.

Boynton told the Guardian he believed the Body Shop would navigate the growing cost of living.

“We are offering the performance of brands which are sold for two or three times higher amounts. Everybody is looking for ways to economise... and we could be well placed to take advantage.”

Ding dong Avon calls pound’s plunge ‘biggest shock’ of the year

Frasers now one of Asos biggest holders

JAMES SILVER

FRASERS Group is now one of Asos’ largest shareholders as the business empire built by Mike Ashley continues to expand across the retail landscape.

The company formerly known as Sports Direct informed Asos of its holding on Friday, in a move first reported by the Telegraph.

Fast-fashion darling Asos had a hugely successful pandemic but has struggled to keep up momentum since then, with sales slowing and changes at the top of the business.

Ashley’s empire meanwhile, now run by his son in law Michael Murray, has been on a spending spree, either picking up or taking stakes in a host of fashion retailers right across the economy.

THE BOSS of global beauty giant Avon has said the pound’s plunge in the wake of the mini-budget market turmoil was the group’s biggest shock of the past year as she likened the sterling sell-off to the Turkish lira crisis.

Angela Cretu, global chief executive of Avon International, told the PA news

agency that sterling’s dramatic fall has caused challenges for the group, which reports in US dollars.

She said the volatility of the pound would likely be reflected in its figures, although she stressed the group was well hedged against currency fluctuations.

She said: “The pound going down – that was the biggest surprise.

“I thought the UK was the least of our

worries,” she said, having previously faced currency issues in a raft of its other global markets, including Turkey, which suffered a meltdown of the Turkish lira in 2021.

“I never would’ve thought that… I’d be talking about the pound as I would the Turkish lira.”

The group – which is owned by Brazilian beauty group Natura – reports its third quarter figures on 11 November as it gears

up for the crucial Christmas season. Cretu said the group has responded to rampant cost rises by making savings across the group, cutting $100m (£90.2m) in costs by stripping out layers of management and overhauling its systems in a bid to protect prices.

The group noted it is seeing signs that beauty shoppers across the sector are trading down from high-end brands. PA

Asos’ share price is down a staggering 78 per cent on the year as it battles a cost of living crisis and the return of bricks and mortar competition. Last month the firm announced it had negotiated a £350m credit facility which it said would give it flexibility to operate in an “uncertain economic backdrop”.

Many retailers are concerned that the so-called golden quarter –the three months in the run-up to Christmas –may not be enough to make up for rising costs across their supply chains, most notably with regards to energy bills. Footfall has however broadly shown positive growth heading into the winter.

Womble Bond Dickinson and BDB Pitman in talks to form legal giant

geographical footprint available to each firm, according to reports.

and the USA with combined revenues of £430m.

LAW GIANT Womble Bond Dickinson is in early stage talks to merge with British law firm BDB Pitmans.

If completed, the deal would come as only the second Anglo-American merger this year

The two firms are in early-stage discussions to join forces with a view to seizing the opportunities offered by their complementary practice areas and gaining access to the wider

If completed, the merger would come as only the second AngloAmerican merger this year.

The tie-up would see BDB Pitmans’ near 220 fee-earning lawyers join forces with around 1,000 Womble Bond Dikinson’s US and UK lawyers to create a major player in both Britain

Womble Bond Dickinson, which was formed through a merger in 2017, has 27 offices including seven in the UK –in London, Bristol, Edinburgh, Leeds, Newcastle, Plymouth, and Southampton. BDB Pitmans has just four offices in London, Cambridge, Reading and Southampton.

LOUIS GOSS

The Body Shop was founded in 1976 by retail legend Anita Roddick

HOLLY WILLIAMS

CITY DASHBOARD

City to be gripped by political drama, but don’t forget the ECB

THE CITY’s attention will be gripped by the race to Number 10 this week, but there are some substantial economic announcements elsewhere that deserve a closer look.

The European Central Bank (ECB), the monetary authority of the 19 countries using the euro, is expected to hike interest rates 75 basis points for the second time in a row on Thursday.

Historic high inflation is sweeping through Europe, forcing the ECB to pivot from ultra-loose monetary policy.

Borrowing costs in the bloc have been in negative territory for over a decade in a bid to stimulate spending and ease pressure in debt markets.

However, president Christine Lagarde and co lifted them to zero in the summer.

The policy shift underscores how surging prices are forcing central banks around the world to recalibrate their approach to their respective economies after years of backing cheap money after the financial crisis.

Nonetheless, the City will be keeping tabs on every twist and turn in the Tory leadership race, which will this week spit out the third prime minister of the year.

Analysts said keeping Jeremy Hunt as chancellor is crucial to the new PM’s capacity to tame markets.

“While a new PM would be within his or her rights to leave their stamp on the budget, a departure from this week’s new course, or even the timetable, risks inflicting renewed damage to the UK’s credibility,” experts at Investec said.

New PMI data out today could flash another signal indicating Britain’s economy is flatlining.

YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

Kitchenware aficionados Pro Cook have rustled up a strong second quarter trading statement, making no changes to their forecasts, despite tough trading in July and August. Business has picked up this month, while management is cutting down costs, with gross profit forecasts brewing in the £4-6m range

MARKETS LIKELY TO WELCOME BORIS EXIT Markets were choppy last week after news emerged that Boris Johnson could succeed Liz Truss. But this morning they will likely breathe a sigh of relief as City friendly Sunak looks set for Number 10. But regardless of who is in charge, the economic challenges remain the same.

JACK BARNETT, ECONOMICS AND MARKETS REPORTER

Johan Svanstrom has found a new home at Rightmove, taking over as chief executive once the incumbent Peter Brooks-Johnson moves out after the full-year results. The new tenant is currently a partner at a private equity specialist EQT, and has previously held positions at Expedia Group and McDonalds. Guidance remains unchanged but Peel Hunt has now put Rightmove on its add list at 740p per share.

EDITED BY SASCHA O’SULLIVAN

Boris Johnson can win elections, but he never knew what to do once he did

sault in the Carlton Club.

AYEAR ago, it would have meant something to say it has been a momentous week in politics. Since my last column appeared, the Chancellor of the Exchequer has been dismissed, a crunch vote in the House of Commons has been won despite spectacular mismanagement by the government, and the prime minister has announced her resignation. Oh, and until last night, Boris Johnson comeback was looking increasingly likely.

Many spectators are, I fear, fighting fatigue now more than breathless excitement. The speed at which our politics is happening, and the consistency with which the pace is quickening, is a peril in itself. Especially for the Conservative Party, who need some time for some serious soul searching.

Today we will find out whether there are one, two or three candidates for the leadership of the Conservative Party. Penny Mordaunt, the leader of the House of Commons, was first out of the starting gate on Friday, only days after she told bemused MPs that Liz Truss, the soon to be former prime minister, “was not under a desk”.

The apparent rejection not only of Liz Truss but her ideological framework after barely six weeks might suggest to some that the Conservative

Party should reflect rather deeply and in detail on its future, but there is simply no time. There will be a new prime minister in office by the end of this week, a breakneck selection process which was the very objective of the way the latest interpretation of the rules was designed. No fuss, no muddle, no dither: get a new leader, and move on.

There is, perhaps, one obvious dividing line. Even the possibility of resurrection of Boris Johnson as a candidate for the premiership—which, one feels, might have started as a witty confection over l’heure bleu cocktails, before taking on corporeal form—has asked a question of Conservative MPs: in order

to try to retain your seat at the next general election, what are you willing to do? Or, perhaps more accurately, what are you willing to tolerate?

The alacrity with which Boris’ name

was seized and passed around suggests that a lot of MPs are willing to turn a blind eye that would make Nelson look visually acute. Some have tried to gloss over the misdeeds which brought Johnson low, one Twitterer remarking that there were few MPs “wanting to lose those seats over a piece of cake in a garden”. This is, of course, a grotesque misrecollection of why Johnson was ousted by his own party.

Such moral hedgers have forgotten two ethics advisers resigning, two safe seats lost to the Liberal Democrats in by-elections, a defection to Labour, accusations of lying to Parliament and a dithering and secretive approach to a Conservative MP accused of sexual as-

Strong and certain regulatory regimes are the backbone of investment in London

IF YOU have seen the movie “Wolf of Wall Street”, you will remember when the main character starts selling stocks in “Aerotyne International”: he claims it to be a cuttingedge high-tech firm, but in reality it is a workshop in a garden shed.

People might be familiar with these kinds of scams. Yet these threats are not only alive and well, but growing.

Fraud is now the most common crime in the UK, costing the economy billions every year.

Investment scams used to rely on calling people by phone or sending them letters through the post. Now social media gives fraudsters new channels with which to target people, and by which they can pose as legitimate businesses.

The amount lost to investment fraud in 2021/22 rose by a staggering 49 per cent on the year before, costing £890m. Victims lost an average of £34,000 each.

So we hope the next prime minister – whoever that is – will push ahead

Chris Hayward

Soon, the force will benefit from new headquarters at the City’s high-tech justice and policing hub in the Salisbury Square Development, off Fleet Street. Just last week, the Lord Chancellor helped to unveil the foundation stones of the development.

with the Online Safety Bill, to ensure that social media and technology firms put a real effort into preventing their platforms being used for fraud.

The City of London Police is leading a national campaign to raise awareness of the signs of investment fraud.

As well as keeping the City safe, the force's priority, supported by the City of London Police Authority Board, is to protect the UK from the threat of economic and cybercrime. This protection is critical to our nation’s competitiveness - especially for the financial, professional and fintech sectors which depend so heavily on confidence and trust.

As well as the new police headquarters, the new City of London Law Courts will combine magistrates, civil and crown courts in one flagship facility. The 18 courtrooms will try economic crime cases, supporting our national lead police force.

This effort in protecting our businesses from fraud will go hand in hand with our continuous efforts to protect our planet. The new buildings will have a design life of 125 years, more than double that of a standard commercial development. They will target an excellent sustainability rating, with over 99 per cent of materials from the previous buildings having been reclaimed to be reused and recycled.

The City of London Corporation has

long been involved in administering justice, running the Central Criminal Court at the Old Bailey. Now we are increasing and modernising our court capacity, ensuring the Square Mile stands as a leading centre for law and justice as well as for business.

The two go hand in hand: the City’s position as a world-leading legal centre with effective law enforcement plays a major role in helping the UK attract international business.

The Salisbury Square Development, positioned between the Old Bailey to the east and the Royal Courts of Justice to the west, will ensure that both our police and our courts have the latest technology and facilities to stay one step ahead of fraudsters.

From fighting crime to administering justice, the City of London will make sure that the UK continues to lead the way.

Forgetting all of those things, and ignoring the fact that Boris is still under investigation by the Committee of Privileges for misleading the Commons, for which he could be suspended or even expelled from the House, demonstrates a durable belief in Johnson’s electoral magic touch. It also reduces politics to its bones as a mere transaction, with retaining office the only objective. It would be a sad day if the party was to assent to that proposition.

Boris Johnson may be, albeit in only some circumstances, an electoral asset. But he is terrible at governing. He was unable to bring together the warring factions of the party and had such an abysmal grasp on policy that the only meaningful idea propounded by his government was to sending refugees to Rwanda.

In classic Johnsonian style, it was a policy so fraught with practical hurdles it has yet to achieve anything except further divisiveness in our politics and in the Conservative Party.

But by Friday, barring catastrophes, there will be a new prime minister.

Another Conservative leadership election will be over and we can start to focus on other events. But our political class must realise that it is in the lastchance saloon and the bell has been rung. The new prime minister must address the nation’s economic challenges and broader prosperity as soon as the threshold of Downing Street is crossed. If it was true in September, it is infinitely more true now: there is no time to waste.

£ Eliot Wilson is co-founder of Pivot Point and a columnist at City A.M.

FRIENDS, FOES

Nadhim Zahawi had only been Boris Johnson’s Chancellor for two days when he called for him to resign. But now, incredibly, he wants him back, saying the ex-PM was ‘contrite’ after kicking off some of the most explosive political turmoil in modern history

£ Chris Hayward is Policy Chair of the City of London Corporation

Eliot Wilson

Boris Johnson and Rishi Sunak both have significant support

It reduces politics to its bones as a mere transaction, with retaining office the only objective

WE WANT TO HEAR YOUR

LETTERS TO THE EDITOR

Listen and learn to our next PM

[Re: Truss’ diagnosis of Britain’s growth riddle should be remembered, yesterday]

It’s really something to say, as you did in the City A.M. editorial that “Liz Truss’ resignation had become almost inevitable”. You’ve got to wonder how we got to a position where it became inevitable that after a person did exactly what she said she was going to do, we belatedly realised it was pure madness. It’s almost as if she didn’t give us warning. Except for the fact she spent weeks and weeks telling us exactly what

her fiscal policy would be if she was made prime minister.

You are right when you say our low growth rates are disastrous, however, I would posit that much of that has to do with having had such political instability in recent years. Who would invest in a country when you have no idea who is going to be leading it or what it’s policy will be in two weeks time? Only a few weeks ago, corporation tax was going to be cut back down to size, and now, what? Who knows what our next prime minister and their chancellor will have in store. But we ought to actually listen to what they say they’re going to do, in case they actually do something crazy and do it.

Jesse Daniel

FROM PARIS, WITH LOVE Brits charged extra to go to Disneyland Paris

EXPLAINER-IN-BRIEF: A TORY LEADERSHIP ELECTION, ALL OVER AGAIN

It’s almost hard to believe it, but here we are again: today marks the beginning of another Tory leadership campaign. This one, however, has very different rules compared to what unfolded over summer.

Candidates will have until 2 p.m. today to stockpile 100 backerswhich means there will be a maximum of three candidates. If they’re three, one will be eliminated this afternoon and an “indicative” vote will follow to figure out who is the favourite. One could expect, at this point,

that the least favourite of the two will stand down and that a new prime minister will be able to take post on Monday night. If this doesn’t happen, party members will vote online during the whole week, and the final result will be announced on Friday.

Over summer, candidates needed the backing of only 20 MPs to enter the race, and several ballots were cast before the race was narrowed down to the two finalists. As we all remember, it took much longer than a week.

COMMENT AT: cityam.com/opinion

Ignore the soothsayers, the next election is still up for grabs if our economy settles

St Magnus House, 3 Lower Thames Street, London, EC3R 6HD Tel: 020 3201 8900 Email: news@cityam.com

Certified

THE Conservative Party has always been a ruthless electioneering machine. Liz Truss’ resignation after just 44 days in office is the latest example. Once it appeared she was going to lead the party into the political wilderness at the next election, MPs made it impossible for her to stay.

But the question still lingers: is there anything a new leader can do to turn around the Tories’ electoral chances?

The pathway to a potential Conservative victory in the next general election is looking very narrow, but not altogether written off. A Labour victory would require a Tory implosion and a Labour revival; whilst the latest polls suggest that is underway, there is still a way to go before Starmer can get his hands on the keys to No.10.

Divided parties don’t win elections. The Conservative Party has done a stellar job of looking like a house divided recently, but the Tories’ key strength has always been their chameleon-like ability to adapt and change as the elec-

toral winds dictate. In the last few years, fierce internal divisions over the EU, and then over the Brexit deal looked like the potential death of the party, but they always managed to find a way to put these aside and unify for the electoral sake of the party.

The Tories’ shape shifting nature plays in their electoral favour. Despite putting on an unusually peaceful performance at party conference, the Labour Party is still a series of delicate coalitions waiting to blow up. Starmer is commanding the authority of the parliamentary party right now, but the unification of the Labour Party is fragile. It could be broken at any time, and unlike the Tories, they may not be able to piece themselves back together again so rapidly.

The biggest issue the Conservatives face is the loss of the mantle of economic competence; their single greatest election tool. It is not to say, however, that Labour have sealed the deal: it is still an uphill battle to prove they can be trusted. Remarkably, Liam Byrne’s “I’m afraid there is no money” note still comes up in focus groups. Labour are still internally concerned about having a repeat of the 1992 election. Back then, despite the high interest rates, rising unemployment and a recession following on from over a decade of Tory rule, they still fell short at the polls.

Starmer is on a high right now, but he is known to flounder under pressure. He still ties himself in knots over matters the Labour party has typically been divided over, such as immigration, the Union, and the economy.

Last week he announced to the Trade Union Congress that a Labour government would tear up any laws undermining the right to strike - a political hot potato as the UK faces a winter of

discontent and potential mass strikes. The next Conservative leader needs to start pressing Starmer on these issues right away. Push the right buttons and the Labour leader, or his party, could quickly unravel.

Under a new leader, the Tories will have to finally deliver a proper domestic agenda. This has been very hard over the last two years due to black swan moments like the pandemic and the war in Ukraine. Levelling up, net zero and tackling the housing crisis are just some of the policy areas the Tories need to make inroads on.

An equally big headache is finding a compelling electoral offer for young people,sorting out the Conservative’s glaring issue of a distinct lack of support in the under 30s.

However, if a week is a long time in politics, two years truly is a lifetime, so I wouldn’t count the Tories as down and out just yet.

£ Giles Kenningham is founder of Trafalgar Strategy and formerly head of press at No10

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Despite unusual peace, Labour is still a series of delicate coalitions waiting to blow up

Keir Starmer promised to scrap anti-strike laws at the TUC last weekBritish travel websites are charging more than their European

TRAVEL

California beaches, San Francisco’s Golden Gate Bridge and Seattle’s Space Needle might come to mind when thinking of America’s West Coast. But Oregon is unlikely to feature highly.

The ‘Beaver State’ is often overlooked when considering a West Coast trip due to its glitzy neighbours, with Washington to the north and California and Nevada to the south. But there’s good news for travellers looking for a new part to conquer: a new direct route from London to Portland offers the chance to discover a city that captures some truly worthwhile attractions on America’s Pacific Coast.

A 10-hour flight and a shorter transfer and I’m at The Heathman Hotel in Portland’s Downtown, an area filled with interesting contrasts. Towering historic hotels stand a street away from small restaurants adorned in modern street murals.

Pioneer Square, an open space nicknamed “Portland’s Living Room,” is bustling with street food vendors attracting early breakfast crowds. I chuckle at a food truck titled “Fried Egg I’m In Love”. The concrete monoliths surrounding it wouldn’t be out of place in Manhattan, but the feel of the people and businesses are distinctly West Coast.

My guide describes a “Maker Culture” in the city, denoting how alongside the expected chain stores are a pleasing amount of thriving independent businesses. There’s Powell’s, the world’s largest independent bookstore, stuffed with new and used literary classics for the pilgrims who flock to browse the shelves. Alongside the designer label stores are boutiques like Wildfang, which celebrates Gender Neutral fashion. If I’m not buying a product from the person who made it I’m being offered a leaflet or sticker celebrating the person that did.

This homemade feel extends across the city as I venture out further. The condos and Victorian architecture of SE Division Street suggest I’d left the commerce behind and entered a residential area. However, Division has become famous for its streets filled with independent businesses and restaurants. There’s a local motto which I quite like, “Keep Portland Weird,” and I spy a store dedicated to The Occult, and the striking site of a shop dedicated to taxidermy. I gravitate toward local businesses selling ice cream and footwear. Some of the eccentricity lives up to the hipster reputation Portland has earned from the comedy show Portlandia, but walking around the brightly coloured stretch is an experience like no other.

Over at the Portland-based Aviation Gin’s distillery, newly opened to the public, gin makers are crushing juniper with cricket bats and leading drinkers into an escape room themed after the brand’s owner Ryan Reynolds. We’d missed the Deadpool star by one day, sadly, as he’d flown in for a visit and to clink gin glasses for the opening. Of course, there’s the tasting room and guided tour too.

Artisan beverages are something of a trend in the area. As well as gin I sipped unusual infusions in Steven Smith’s Tea Rooms as the nearby trains roll by, and took a short drive into the countryside to

PORTLAND IS THE BEST OF THE WEST

THE TRAVEL HACK

The Hopper travel app not only shows when flights are at their cheapest across the various months of the year, it predicts when prices may rise and notifies you when costs drop so you can book that instant.

Hopper.com

visit the 12-acre Amaretta winery and restaurant where diners overlook rolling hills which plays stage to a gorgeous sunset.

Dinner options reveal more about the eccentric city. There’s Southeast Portland’s Hawthorne Asylum, an eye-catching street food ‘pod’ where punters try a variety of cuisines in a space that looks ripped from a Tim Burton movie.

A favourite eatery of mine was Oma’s Hideaway, an offbeat restaurant influenced by Portland’s Southeast Asian community, which has roots in the city going back to the 1800s. Inspired by the head chef’s grandmother (or Oma), the fusion cuisine was inspired by her ability to create incredible dishes using disparate resources. Their menu also offers cocktails that raise money for good causes – a great reason to order another.

By night, things get even livelier. Downtown lured me with everything from the usual sports bars to spots like Darcelle

XV Showplace, a historic drag venue owned and operated by the world’s oldest drag queen, Darcelle XV, still lip synching at 91.

Later it was back to Division Street, where many bars were open late, like the airy setting and stylish Someday cocktail bar, or Portland institution Reel M Inn, serving fried chicken and beer until 2.30am. For those really missing home, I passed “soccer” themed bar Gol a few blocks away.

Living alongside the energy of Portland’s evolving urban identity are nature spots that are designed to relax and restore. To the west of the city is Portland Japanese Garden.

Considered one of the most authentic Japanese gardens outside of the island nation, I felt transported to anywhere but a thriving city as I took in incredible plant life, serene ponds, and a tranquil village courtyard where live performances take place and there’s a café serving Japanese cuisine. With the trees rising to block out

the outside world, it was remarkable how quickly my shoulders relaxed and let nature do its healing.

If you prefer waterfalls over wi-fi, a trip to the wider state offers legendary adventures. I’m driven 30 miles outside of the city to the Columbia River Gorge National Scenic Area, an awkward name for a beautiful place. As the title suggests, it’s a canyon forged by the river that divides Oregon from Washington, and it offers a trail of waterfalls that would make any Instagrammer whip out their phone with a sharp draw of breath. While the wet weather meant I wasn’t exactly camera ready, the highlight was walking along the foot bridge of Multnomah Falls, squeezing in-between the selfie taking tourists to take a few quiet moments to gawp at a natural wonder.

Some West Coast cities can wear you down with a forced sense of identity, perhaps bolstered by over tourism and the demands of the hordes that pass through

A new direct British Airways route allows James Luxford to touch down in the oft-overlooked West Coast state of Oregon

BOOK THIS

Main: The famous White Stag Portland sign; Below, from left: James stayed at the Heathman Hotel; Hawthorne Asylum is the place to go for street food; Portland has some excellent street art; Multnomah Falls is a short drive from the bustle of the city

THE LONG WEEKEND

FREEMASON’S ARMS THE RIBBLE VALLEY

The Tolkien Trail to celebrates the Lord of the Rings: The Ring of Power – Lynn Houghton followed it in search of her precious

THE WEEKEND: The village of Hurst in Lancashire’s rural Ribble Valley has a circular 9 km trail in honour of Lord of the Rings’ author, JRR Tolkien. Tolkien stayed here during WWII because his son was evacuated to Stonyhurst College.

The scenic trail starts by the Hurst War Memorial, crosses farms and fields before arriving at the gates of Stonyhurst College. I popped in for a look at the attractive St. Peter’s Church and 19th century observatory, still in use.

wanting the same experience they’ve seen on the TV.

But as I left Portland I got the feeling of a place that was just beginning to redefine itself. There’s a sincerity to this change. Locals are wanting to utilise their city’s creativity rather than create another tourist trap. Perhaps one day this individuality will become self-conscious and more blatantly touristic. But for now, Portland stakes a claim to be one of the best in The West.

NEED TO KNOW

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Continuing, I reached the gurgling River Hodder and followed alongside it to the old packing horse bridge, used by Cromwell during the Civil War. Backtracking slightly and turning up the road, I crossed the long field which dips down and eventually meets with and wends its way along the River Ribble.

The trail finishes at the parking lot of the Shireburn Arms, known for its pub’s gastro menu. The walk takes about 4 hours, going at a leisurely pace but bear in mind the starting point can be tricky to find: I asked a local who all seem lovely and knowledgeable about their Tolkien history.

The countryside here is referenced in the Shire of The Hobbit. The Buckleberry Ferry was based on the now dismantled Hacking Ferry which crossed near the confluence of the River Ribble and River Calder. I spied one of the original ferry boats restored and on exhibit in the Clitheroe Museum.

WHERE TO STAY The mediaeval village of Wiswell. The Freemason’s Arms was once used by members of the Freemasons organisation but has been converted into exceptional boutique accommodation. I also thoroughly enjoyed its awardwinning restaurant on the premises. Each menu item had true culinary flair; the

FUN FACT

This part of Lancashire is distinctive thanks to the blush pink of Pendle Grit.

Many farmhouses, barns, out buildings, even entire villages, are made of this pastel coloured sandstone. It punctuates the area beautifully and distinctively

Lamb and Rosemary Brioche was exceptional. Four rooms are named after countryside animals. Mr Fox, Mr Hare, Partridge, and Grouse are truly unmatched for country elegance. I stayed at Mr. Hare, one of the two rooms with mezzanines, each with freestanding roll-top tubs. Each has ensuite bathrooms with enormous showers, underfloor heating, a Nespresso coffee machine, bottled water, a comfortable super king size bed and 50 inch smart plasma TV plus wifi.

THE FOOD: The Freemason’s Arms chef Steven Smith has created a revolutionary and truly exceptional culinary space. I sat at the Kitchen Table where I overlooked the food preparation area as I enjoyed my meal.

During the autumn dishes will feature venison, wild rabbit and wild mushrooms plus hearty soups. The attention to detail with every entrée and side dish is exceptional. Starting the day with a wonderful full English breakfast at the Freemason’s is a must. There is also a tiny pub, the Fox’s Den, nestled right next to the restaurant so I didn’t go thirsty.

ASK ABOUT: The thriving market town of Clitheroe, chartered by Henry de Lacy in 1147 and the second oldest township in Lancashire. Famous for its castle which houses the Clitheroe Museum, the best part is Bowland Food Hall which offers fabulous cheeses, meats and even specialist mustard from the valley.

NEED TO KNOW: Nightly rates at The Freemasons at Wixwell, 8 Vicarage Fold, Wiswell, Clitheroe, Lancashire BB7 9DF are £280-£330 per night; freemasons@wixwell.co.uk; 01254 822218

SPORT

GOULDEN ERA? England and Wales Cricket Board name new chief executive at 16pt

SPORT

KOHLI LEADS INDIA TO WIN OVER PAKISTAN IN CUP

£ Virat Kohli scored 82 not out as India came back to beat Pakistan in a sensational Twenty20 Cricket World Cup match in front of 90,000 fans at the Melbourne Cricket Ground yesterday. Pakistan looked to be on course to set a poor total but rallied to set the Indians a target of 160. India got off to a very bad start an were down to 31-4 after six overs but came back to win it with the very last ball of the match. Elsewhere Sri Lanka beat Ireland by nine wickets in Hobart.

DRAPER ALL SET FOR TEEN SENSATION ALCARAZ

£ British No3 Jack Draper will today face US Open champion Carlos Alcaraz in the opening round of the Basel ATP event. Draper –who recently qualified for the Next Gen ATP Finals –will face the No1 seed Alcaraz on Centre Court in Switzerland. Elsewhere Brandon Nakashima will face off against David Goffin of Belgium.

LEBANON LAND IRELAND CRUSHING CUP BLOW

£ Lebanon beat Ireland 32-14 yesterday in the Rugby League World Cup as the men in green lost their first match of the tournament. Lebanon –coached by Argentina rugby union coach Michael Cheika –scored five tries while Ireland could muster just the three. Tonight Pacific Island nation Tonga play Wales.

ARSENAL WOMEN EQUAL RECORD FOR LEAGUE WINS

£ Women’s Super League outfit Arsenal equaled the competition’s record for most consecutive wins yesterday as they beat Liverpool 2-0 to win their 12th game in a row. Arsenal’s two goals were scored by Swiss player Lia Walti and Norwegian Frida Maanum.

TOON GO INTO TOP FOUR

Newcastle into Champions League places after they topple Tottenham, writes Matt Hardy

WAS it the day Tottenham saw their, admittedly unlikely, title challenge come to an end or was it the day Newcastle United knocked on the door of the Big Six’s office and asked for a seat around the undoubtedly extravagant table?

A 2-1 win for the Toon in north London moved United into the top four, just two points behind Sunday’s opponents yesterday, who have now lost consecutive games in the league for the first time since February.

It also marked the continuation of an unbeaten league record for Eddie Howe’s men that dates back to 31 August, when they lost 2-1 to Liverpool.

Callum Wilson netted in the 31st minute before Miguel Almiron dou-

bled their lead before the break, a Harry Kane score the only scoreboard blemish for United.

Newcastle are in the top four, they hold a Champions League place, and are long past the uncertainty surrounding what type of team they would become under Saudi ownership.

As for Antonio Conte’s Spurs? They could only muster a set-piece goal and their own mistakes – notably from captain Hugo Lloris – cost them.

Newcastle are building, and there’s an unpredictability about where exactly they can go this year, but they’re up in the top four and looking confident. How long they can hold on remains a mystery.

GUNNERS MISFIRE

It’s not often Arsenal have looked visibly awkward in play this season but their recent series of single-goal wins seemingly caught up with them.

Granit Xhaka scored early on for the Gunners and it looked as if they would be on their way to their 10th win of the season – and their fourth consecutive 1-0 victory after a duo of Europa League triumphs and a league win.

But Stuart Armstong’s 65th minute

equaliser for Southampton pegged the league leaders back and they held on for an important point.

With Manchester City not in action until next Saturday – when they travel to Leicester City – Arsenal’s place at the summit of the Premier League table was never in doubt but their draw yesterday against a Southampton side hovering in and around the midtable places represents a missed opportunity to go five points clear.

FOUR MORE?

Aston Villa’s post-breakup blues after Steven Gerrard was sacked in midweek lasted just three days.

Because on Sunday Villa netted a trio of goals inside the opening 15 minutes before adding a fourth 45 minutes later in a 4-0 rout of Brentford.

The era of the club’s next manager is an unwritten chapter for Villa but they’ve won a match in the league for the first time since 16 September and found the back of the net for the first time in three matches.

FOUR MORE, AGAIN?

Speaking of 4-0 victories, Leicester City’s turnaround saw them put four

past a Wolves side who this week had their preferred managerial choice –Michael Beale – reject the club.

Leicester’s Brendan Rodgers began the season in a precarious position having lost a number of his players but has since turned around a poor start to the campaign into consecutive wins.

Their goals – through Youri Tielemans, Harvey Barnes, James Maddison and Jamie Vardy – ensured the side boosted their goal difference ahead of what is expected to be a tight final table next year.

FULL UP

Fulham extended their unbeaten run in the league to three games yesterday with a 3-2 win over a Leeds United side whose manager Jesse Marsch is under increasing pressure.

Fulham backed up their three goals against Forest last week with three more – through Aleksandar Mitrovic, Bobby Reid and Willian – and ended the weekend in seventh.

Leeds, on the other hand, are in the relegation dogfight – they sit 18th after 11 matches, having won just twice this season in the league.

The governing body of English cricket, the England and Wales Cricket Board, have named Richard Gould as their new chief executive. Gould, a critic of The Hundred, formerly worked with new chairman Richard Thompson at Surrey but joins the troubled organisation from Championship football club Bristol City. “I look forward to taking up the role in the new year, but for now will be an armchair fan supporting our men’s team in the T20 World Cup in Australia, whilst the women prepare for their T20 World Cup challenge in February,” he said.

Almiron netted Newcastle’s second

England ranked third in World Cup last eight

EENGLAND’S rugby union women have, unsurprisingly, reached the last eight of the Rugby World Cup. They were, and remain, overwhelming favourites for the tournament – yet they’re only ranked third out of the eight quarter-finalists.

Ahead of them are New Zealand and Canada, who topped their respective pools, with the rankings handing Simon Middleton’s Red Roses a tie against Australia.

The Red Roses chose consistency in their opening two matches knowing wins in both would secure them a spot in the knockouts, but changed it up for their final pool match against South Africa.

England’s 75-0 win over the South Africans on Sunday saw 13 changes from the tough match-up against France and allowed Middleton to experiment with his formations.

But England are now one of three

Another round of drama as English rugby keeps it exciting, writes Matt Hardy

WITH the current financial woes facing the English domestic game, there were only four matches in play in this week’s Premiership. We saw a stunning drop goal and a last-minute win, but here are our four takeaways from round seven.

QUINS MAKE SALE JOKERS

Marcus Smith scored 24 points yesterday as Harlequins ended Sale Sharks’ unbeaten start to the season. The Manchester outfit’s best ever start to a rugby season came to an end yesterday as Harlequins turned the screw and played an intelligent match.

Quins’ 29-13 win marks the first time the Londoners have won at the Salford Stadium since 2015 and it is testament to how competitive the league is at the moment – only Saracens remain unbeaten thus far.

The match was a case of playing the game in front of you and Harlequins –so used to relentless running and an attacking style – were smart about taking penalty scores and building a lead.

England are set to head for a five-day camp in Jersey from today and seeing brilliant performances from the likes of Smith will be of comfort to Eddie Jones, a man who lost a few of his preferred players – such as Jonny May – to injury at the weekend.

NO LUCK FOR IRISH

‘Friday Night Lights’ tends to bring out the showboating from Premiership sides, and at the beginning of the weekend it was London Irish and Gloucester Rugby looking to dazzle. It wasn’t a classic to say the least. Both sides missed a multitude of chances and neither team managed to bring their hot stepping backs into the phase play too often – Gloucester were eventual 22-21 winners.

The pivotal moment, though, came at around the 60-minute mark when Gloucester fly-half Adam Hastings – recently called up into the Scotland squad ahead of British and Irish Lion Finn Russell – walloped a 55-metre drop goal.

sides who are yet to be beaten in New Zealand and they’ll fancy themselves, as favourites, to reach the final in Auckland next month.

In the other quarter-finals New Zealand will face Wales, France will play underdogs Italy and Canada will face off against North American rivals the United States.

Should England get past Australia –who have played well despite looking quite fractured – they will face off against either Canada or the USA.

There is, therefore, a potential match against the reigning champions New Zealand in the final to come.

England couldn’t last the 80 last time out in the 2017 Rugby World Cup final and came a cropper to the Black Ferns but this year they’re looking on top –

Middleton’s women humiliated New Zealand twice in two weeks last year and have developed since.

“We haven’t got to the quarter-finals through luck, we have played hard, tough rugby,” said Packer, who scored on Sunday morning against South Africa. We aren’t going to take our foot off the gas. An England versus Australia clash is one to relish.”

“If anything in that first 20 minutes they should have scored more points.

“I am super excited to have drawn them because you want to play teams you don't often play.”

Australia were hammered 41-17 by New Zealand on the opening day of the tournament – which was delayed due to reasons relating to Covid-9 – before beating Scotland 14-12.

In their final match the Australians managed to edge Wales by 13-7 to secure their second win and a tie against the tournament favourites.

“They have some fantastic players, they know how to shift the ball around and you can really see that sevens influence they have,” England head coach Middleton said.

“As a coaching group we have talked about their strategy for their tournament and how brilliantly they managed their squad,” he added when asked about Lionesses’ coach Sarina Wiegman, who was watching on, and her coaching style.

“I am always keen to catch up with quality coaches and share ideas and if there is an opportunity going forward that would be great.”

The Red Roses are still in the mix, and they’ll fancy their chances, but it is a World Cup and knockout rugby is brutal – there’s no guarantee of progression at the weekend.

QUINS HARPOON SHARKS

When Bath last won a game of rugby before last weekend, Britain had a different Monarch

Britain had a different Chancellor of the Exchequer, Home Secretary, Prime Minister and Monarch. But on Saturday afternoon Saints became the first side to fall to Johann Van Graan’s Bath.

Saints have been blowing hot and cold this year but on Saturday they were near freezing point – very little worked for them and they didn’t really Bath on the other hand worked the space well and managed to come out 27-14 winners in the West Country.

It’s only their first win, and it lifts them off the bottom of the table, but it’s a platform for Bath to work upon –they have a bye week next before they travel to Newcastle.

The Red Roses are favourites for the trophy but they must overcome tough route to Auckland final, writes Matt Hardy

Marlie Packer got on the scoreboard