Economics Magazine October 23

Economics

THE WorLD IN BrIEF October 2023

Wilko Collapse uk unemployment The Electric Mini Cooper Will the dollar days be over? & More...

pay growth vs inflation: who's got your money? by anjalee & vida The Office for National Statistics (ONS) has recently released figures illustrating that pay growth has finally caught up with inflation for the first time in nearly two years. In January 2023, the inflation rate was 10.1% and has decreased by 3.7%, in July to 6.4%, under the consumer inflation index measures used by the UK. The director of economic statistics at the ONS, Darren Morgan, has stated, “earnings continued to increase (at record rates), while inflation has come down from its highs. This means people’s pay is no longer falling.”; Earnings in the public sector rose by 12.2%. Regular pay grew at an unchanged rate of 7.8%. However, pay growth may not be the right answer.

An increase in employment could benefit the economy more.

What is Inflation?

Inflation is the sustained rise in the general price level over a period of time. There are two types of inflation: cost push inflation and demand pull inflation. Cost push inflation is a rise in price level due to an increase with the cost of production, while demand pull inflation refers to the rise in the price level due to excessive increases in aggregate demand. One of the main aims of inflation is to measure the overall effects of price changes for a varied set of products and services. It allows for a single value representation of the increase in the prices of goods and services in an economy over a period of time.

The prices are rising, meaning that with the same unit of money, you can buy fewer goods and services. This loss of investment ability impacts the

cost of living for the public, which eventually leads to the decline of economic growth.

When will inflation go down?

The government believes that inflation will only go down when the public get into a pinch and stop spending that extra money. The extra money that was saved through 2020 and 2021. When Covid-19 struck the UK, restrictions were put in place to curb the infections spreading.

The public now has a surplus of money as there was little spending in comparison to the previous years. For example, there was no holidays, eating out or personal shopping. Expenditure was at a minimum leading to an increase in savings. Having said this, savings are now being used to decrease the effects of the cost-of-living crisis.

People are still able to afford meals at restaurants, holidays away and luxury goods. Inflation cannot go down until the working-class run out of money to spend and no one buys anything unnecessary. Once the spending stops, companies will have to fall in line and decrease the price of goods. If the prices of goods decrease, people will start buying again and the producers and consumers will balance the economy to what it should be. In the beginning of August 2023, the Bank of England released a statement saying that, “We expect inflation to fall to around 5% by the end of 2023. Then we expect it to keep on falling and reach our 2% target by early 2025.” Which is why the government should focus on creating more employment rather than an increase in pay growth. If there is an increase in pay growth, consumers

will continue to buy products which will lead to inflation staying the same or rising. However, more employment opportunities will mean that many more will be able to provide for their families and inflation will also decrease as not many will have excess money to spend, so it will control the buying power.

What does this mean for the future?

As the rise in interest rates are slowly reducing inflation and stabilising the economy, the cost of living also begins to stabilise, with material goods ideally becoming cheaper. However, due to the fact the companies have more money to spend, the salaries of workers remain high in comparison to the cost of living. For example, if people’s salaries keep increasing by 10% each year and the inflation rate remains at 5%, then people have more money to dispose of, leading to them spending more on luxury goods and items. Due to the fact that people are spending more on these luxury services, the demand for them goes up. In addition to this, if the demand for these luxury goods increases then so would the price of the materials to supply and produce the materials which would therefore increase the price of the product. Furthermore, as the demand for the luxury items increases, the government may choose to higher taxes and increase the interest rates so that people spend more money on mortgages and household bills instead of on the luxury goods, ideally meaning that the government would try to encourage people to save money and not spend or waste it on material goods.

Smart price Rice Pudding WAS

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interest rates have stayed the same by minnah & maryam On the 21st of September 2023, the Monetary Policy Committee (MPC) of the Bank of England decided to hold interest rates at 5.25%. This is the first pause after 14 consecutive rate rises since the start of the cycle in December 2021, when the interest rate was 0.25%. The decision to keep rates on hold was due to many factors, but the main one being that inflation decreased, which was not expected.

wilko collapse by maryam & aamena Wilko - the bargain retail store we all know and love, is shutting down for good by early October. The business was founded in 1930 when JK Wilkinson opened the first store, following the collapse of Woolworths who was struggling for a while due to the rapidly evolving retail world. It simply couldn’t keep up- just like Wilko now.

So how did a seemingly thriving business that has been in operation for nearly 100 years suddenly fall apart? As little as 10 years ago, Wilko was the undisputed leader of the discount sector with a turnover peak of more than £1.8 billion in 2018. However, recently Wilko was faced with increasing high street pressure from rivals such as Poundland and B&M who were selling similar goods for lower prices.

This, coupled with the devastating impacts of the Covid-19 pandemic, unpaid debts and tighter consumer budgets (due tote cost of living crisis and high mortgage rates), meant Wilko could no longer navigate the current economic climate and filed for bankruptcy on August 3rd, 2023.

In efforts to stay afloat, they had borrowed £40 million. It was a final resort, but it was too little too late as they were already struggling to pay suppliers - thus leaving many empty shelves that will now never be restocked.

The downfall of the bargain retail store will have a significant influence on the economy. 9,100 workers are to be made redundant and Wilko’s 12,500 workers are now unemployed.

A fellow staff member Lauren Glacier said, ‘It is just very sad, I’ve got to think about my bills, I’ve got kids at home.’

Wilko’s collapse did not just affect its employers, but also its investors.

Wilko is one of the biggest consumers in the market and their crash affected numerous companies and suppliers who funded the shop with goods and services. This created gaps in these suppliers’ profits which inevitably created a vicious negative multiplier effect.

After the collapse, other retail stores and companies were quick to seize Wilko’s leftovers. The Range decided to buy the Wilko brand for £5 million but not any of its stores. B&M said they would take up to 51 out of the 400 shops that are closing, in a deal worth £13 million. Poundland are also eager to take 71 shops with other High Street chains like Home Bargains having signalled interest in buying.

Administrators had been discussing with Doug Putman [part of the Putman Investments] over a deal to buy an estimate of 200 shops. Sadly however, the GMB Union has gone

through that the hopes of this deal, which could have saved hundreds and thousands of jobs, has not fallen through. Putman went on to finalise that ‘It is with great disappointment that we can no longer continue in the purchase process for Wilko having worked with administrators and suppliers over several weeks to seek a viable way to rescue it as a going concern.’

But what will happen next?

How will people move on from this? Several retailers such as Tesco, Toolstation, Home Bargain and Dunelm have said that Wilko staff can apply for jobs with them, some even promising that any employee from there will be guaranteed an interview and will have priority when applying. Furthermore, Aldi is thinking of hiring workers and may open roughly 500 more shops with 6,000 jobs up for grabs.

Wilko will soon disappear from our high streets and what once was a familiar big red sign will become a distant memory. With the economy ever fluctuating and the surging popularity of online shopping, we can only hope that other high street retailers cease to face the bankruptcy.

Inflation this month was calculated by the Office for National Statistics (ONS) and it was announced on the 20th of September 2023 that the Consumer Price Index (CPI) was 6.7%.

Which was an unexpected dip from 6.8% in July 2023. This meant that interest rates were having the desired impact on inflation as when interest rates were high in previous months, people who had mortgages and loans with banks would be paying more due to the higher interest rates, therefore having less disposal income to pay on goods and services. This causes a decrease in demand which means producers would have to lower their prices in order to sell their goods and services, thus causing prices and inflation to go down.

However, before the information was sent out about interest rates being

on hold, there was an 82.5% chance that financial markets expected the central bank’s committee (MPC) to increase interest rates by 0.25%, but of course this was not the case.

Additionally, after the interest rates was announced markets still give a 70% chance of a 0.25% rise in the Bank of England’s benchmark rate to 5.5% before March next year.

The Bank of England have taken a pause so they can further monitor indications of persistent inflationary pressure and resilience in the economy (including wage growth and service price inflation). However, now this decision has been made, what will the outcome be for UK’s economy this month?

The Bank’s decision will be welcomed by many UK citizens. This includes homeowners who will be very pleased, especially those who had prepared for an increase. Those with mortgages that must be refinanced over the next year will equally think this was good news as less money will be paid to Banks in borrowing costs.

The Prime Minister, Rishi Sunak, will also be pleased to see that the country’s economy is heading in the right direction to hit his target of 2% for inflation, and interest rates

pausing being a positive indicator.

This further allows a sigh of relief for consumers and businesses that had hoped for a decrease as hundreds of thousands of firms will no longer have the threat of going bust.

On the other hand, a major negative impact this decision has made to the UK’s economy is in the value of the pound. Before the rate decision by the MPC, sterling compared to the US dollar sat at $1.24, but now it is on a downward trend and is hitting $1.22. This is because people with savings want to buy currencies which have a higher interest rate as they will gain more money. However, because interest rates have stayed the same, demand for UK currency fell in comparison to US dollar.

To summarise, the demand for dollars increased but the demand for GBP went down. This problem may have a negative effect on the price of imported goods and services now becoming more expensive, and because the UK imports much more than it exports, necessities like imported oil and food might be set to increase. Nevertheless, the Bank of England will be keeping a close eye on all economic indicators to ensure inflation is kept within the target.

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mini-cooper: a new generation of allelectric cars. will going green ever really happen? by uma & nimisha On September 11th 2023 BMW stated that they would invest £600 million into an all-electric production site from 2030 onwards in Oxford.

According to Milan Nedeljkovic, member of the board of management of BMW AG, the future plans for MINI and its new generation is to “set the path for purely electric car manufacturing”. Prime Minister Rishi Sunak also added that “BMW Group’s investment is another shining example of how the UK is the best place to build cars of the future.

By backing our car manufacturing industry, we are securing thousands of jobs and growing our economy right across the country.”

Not only is this massive capital investment proving to be environmentally safer in the future but also a good economic choice as it ensures job security. It further ensures well-allocated labor and resources during times of job insecurity post Covid-19 and the high inflation rates that we as a country are experiencing. Many people will become re-employed as there are jobs from this project in specialised sectors such as development, manufacturing, marketing, selling, repairing, and modification.

Though the cars themselves may not appeal as the absolute best choice on the market in relation to luxury

and mileage, the new MINI 3-door hatch is priced from £22,935 onwards - making it a relatively cheap and economical expense. The company is offering a 145-mile range per charge which is still significantly less than other electric cars in the market such as the Peugeot e-208 (175-mile range).

It would be the ideal car for consumers looking for a second car or even a car needed for city commuters. Mr. Burns, our Head of Chemistry stated that “EVs are going to save the world if used well, they are cheaper than petrol. My next car that I’m going to buy will definitely be electric”.

In relation to cost-of-living, the upfront cost of driving an electric car is greater compared to a petroldependent car because charging points are more challenging to find than petrol stations. Never-the-less, Inflation is something everyone in the UK is facing, and so sacrifices are having to be made even if it’s not what they want. Whether that be buying an electric car instead of choosing to pay extra taxes for their petrol-burning alternatives. In London and ULEZ zones throughout the UK, EV cars get a full discount on congestion charges, in contrast to older models of cars that are being taxed £15 for every entry into London.

This, as well as rising fuel prices, ultimately makes EVs the cheaper option. In addition, maintenance costs would be lower when driving an electric vehicle as they don’t have as many internal moving parts in the engine that need servicing. However, over a longer period of time they are beneficial as monthly costs can drop significantly.

Electric cars emit no pollutants into the environment, making it not only economically more viable

but environmentally sustainable.

Although it is supposedly better for the environment, some studies show that manufacturing of a typical EV battery produces higher carbon emissions compared to gasoline cars.

So, is it really that much better for the environment?

In addition to this, the most prevalent concern for many prospective drivers is ‘range anxiety’. That is, the fear of running out of charge and not having access to a charge-point.

Though electric cars seem to be environmentally and economically superior, the availability of charging points for EVs across the UK is undeniably scarce. This is due to lack of fully developed infrastructure to support this new generation of vehicles.

However, on the 20th of September 2023, Prime minister Rishi Sunak declared that he has planned to delay petrol and diesel vehicle bans from 2030 to 2035. Car companies are criticizing Sunak on his decision as this would potentially undermine any preparation taken towards ensuring a green future with all

electric lines. Sunak however believes that this would impose a direct cost on consumers.

So, is all the taxpayer’s money and investment into Mini’s new factories well thought out in order to have enough profit and turnover for automotive companies?

When asked for his views on the diluting of the government’s green agenda Mr. Newbey from the geography department responded with, “Finding the balance between the needs of today and the health of our planet for the next generation was always going to be a challenge.

It is a shame that there appears to be a weakening of this agenda. We are a leading nation when it comes to climate action, and it would be great to maintain that, however realism and a pragmatic approach play their part. We are already a long way down the path to net zero and ultimately it will be the company’s building petrol and electric cars or developing renewable energy systems that have the biggest impact.’

under the triple lock the state pensions is set to soar by 8.5%: boosting retirement income by anija & sandinsa What’s happening with the state pensions?

The Government has recently announced that it will increase the state pension by 8.5%. The increase is keeping with the ‘Triple Lock’ mechanism which ensures that the pension is increased to keep phase with inflation rate and an increase in either wages or an average increase of pension by 2.5%.

What are state pensions and how do they work?

State pensions are payments that are paid by the government every month to people who have made the necessary amount for National Insurance contributions and have reached the age of retirement, which is currently 66 years.

The amount of pension that an individual would receive depends on the amount of national insurance record. For some people, this state pension is the only source of income once they have retired, but others may also receive workplace pension if they had made into private pension scheme.

The state pensions in April 2023 increased to 10.1%, which was in line with the CPI (Consumer Price Index) inflation rate in September 2022. The new flat-rate state pension is given to those who are at the required age after April 2016. The basic state pension is given to those who are the required before April 2016. The way the State pension was paid did change after the 6 April 2016. The change was necessary as the rules that were applied to calculate the

state pension were complicated.

The new rules applied to determine the state pension help workers understand at a younger age how much they will be receiving, which helps them plan their retirement.

What is the triple lock?

The triple lock makes sure that the state pensions reflect the current economic conditions.

The triple lock was introduced to the state pension under the coalition between the Conservatives and Liberal Democrats in 2010. It was created in order to protect the pensioners by making sure that the state pension was not eroded by the cost-of-living crisis, inflation or increase in population’s income. It was suspended after the Coronavirus pandemic due to the unprecedented economic circumstances. Millions of workers were furloughed during the pandemic, which also lead to an increase in average wages by 8.8% (ONS). This led to the State pension to increase by 8.8%.

The triple lock is determined with reference to: • Inflation rate of September of the previous year – measured using the Consumer Price Index (CPI) • Average increase in wages in the UK • Above 2.5%

What will the increase in keeping with the Triple Lock mean for pensioners?

For retirees around the country, the news of an 8.5% increase in the triple lock state pension is a sign of hope and relief. When one

considers the worries about the rising cost of living and anticipated financial difficulties in retirement, this significant increase in the retirement income could not have arrived at a better time. Pensioners can now look forward to a more secure and happier retirement, with the higher state pension acting as a crucial safety net against unforeseen economic changes. It emphasises the government’s commitment to guaranteeing retirees’ wellbeing during their golden years in addition to recognising the great contributions they have made. Those who have worked hard and are anxiously anticipating their welldeserved retirement are expected to feel immediate relief and peace of mind because of this increase in state pensions.

The substantial 8.5% increase in the triple lock state pension is a weapon for retirees’ empowerment, not just a financial adjustment. More stable finances give retirees the freedom to pursue longtime passions and explore new opportunities. This increase in income can make it easier for seniors to afford healthcare, technology, and lifestyle upgrades, enhancing their overall quality of life. Furthermore, it serves as further evidence that financial independence should not cease with retirement. Rather, it may be a period for growth, exploration, and enjoyment of the rewards of one’s efforts. The government’s dedication to enhancing state pensions highlights the value of dignified and meaningful retirements for everyone, paving the way for retirees to embrace a future full of opportunities.

Mrs. Carr's Aubergine & potato Curry Ingredients:

Instructions

1 large aubergine, chopped into cubes 5 medium potatoes, chopped into cubes 5-6 ripe tomatoes or a can of chopped tomatoes 4 garlic cloves, crushed 2 inches ginger or 3 frozen ginger cubes 1 green chilli, chopped or 1 frozen green chilli cube 2-3 tbsp sunflower oil 1 tsp cumin seeds 1 tsp mustard seeds ½ tsp Kashmiri chilli powder ½ tsp asafoetida ½ tsp turmeric powder 2 tsp ground cumin powder 2tsp ground coriander 1 tbsp sugar 2tbsp garam masala 500-600ml boiling water Salt Chopped coriander Juice of one lemon

1. Heat oil in wide based pan. When hot, add your mustard seeds, cumin seeds, Kashmiri chilli powder. Once sizzling, add the asafoetida. Let this cook for 15-20 seconds 2. Add the chopped aubergine, garlic, ginger and green chilli, turmeric powder, ground cumin and coriander and mix well and cook for 30 seconds 3. Now add the chopped tomatoes and potatoes and mix well 4. Once all the veggies are coated, add the water, salt and sugar and stir well.

Bring to the boil and once boiling, reduce heat to a simmer and cover and cook for 20 minutes, stirring halfway.

5. After 20 minutes, uncover and add the garam masala. Let it cook uncovered for 10 minutes or longer if sauce still needs thickening. The gravy should be thick and luscious, and all the veggies should be super soft. Add the lemon juice and fresh coriander and serve!

Enjoy with roti/puri/naan or rice

will the dollar days be over - can the dollar retain its dominance on a rapidly changing global scene? by gemma For the last 70 years, international trade has primarily been carried out in US dollars. The dollar is also seen as a stable currency during periods of crisis and was desperately sought out during the 2008 recession and Covid-19.

The US has a lot to gain if they can continue this state of affairs.

Not only do they gain financial benefit, but the government can borrow at a significantly lower interest rate and their consistent stability leads to a lower price for consumers buying imported goods.

As well as this, dollar dominance, or hegemony,

allows the US to impose incredibly strong and effective sanctions on their adversaries.

This is a tool which the government has employed more frequently since 2001- over 12000 entities are currently sanctioned by the US government (compared with less than a thousand in 2000). Their preeminent place that the strength of their currency has granted them on the global stage has led to gaining many powerful enemies and some unique challenges.

In part because of their incredibly low interest rates, the US has accumulated over $32 trillion in debt. This eye-watering figure has forced the debt ceiling to be raised dozens of times, but as the issue of debt becomes more and more politicised. It becomes more and more difficult to convince

Congress to agree to raise the debt ceiling and the threat of default becomes more of a possibility every time. This would hugely downgrade the credit rating of the US and would cripple confidence in the US dollar. America is currently in a privileged position where the many countries who hold US dollars in reserve have a financial prerogative to keep the dollar from crashing, contributing to the stability of their currency.

With these predicaments, who would want to take America’s place?

China has started to pursue currency swap agreements with individual countries, such as Argentina and Brazil. This could be the beginnings of China building an anti US economic bloc. China itself has heavily reduced their holdings of dollars mostly due to its deteriorating relationship with the US. The BRICS alliance (Brazil, Russia, India, China and South Africa) have announced their desire to create a form of multinational

currency akin to the euro throughout BRICS countries, a plan which could move one step closer to being fully realised with the planned addition of 6 new members at the beginning of 2024. This would mean that they include almost 50% of population and over 30% of GDP, providing an incredibly strong base to begin to challenge the dollar. Not all members may be as enthusiastic to begin rivalling the US, however, countries such as Russia, China and Iran all have poor relationships with the USA. There are countries who are looking to improve trade relations with the US, making them reluctant to adopt a rival to the dollar as their currency.

The next largest currency in terms of current exchange reserves is the Euro, holding around 20% of reserves. But the Euro becoming globally dominant seems like an unlikely scenario, seeing that South-South trade is on a firm upwards trajectory.

With trade and currencies becoming increasingly digitised, completely digital currency such as China’s digital yuan could become a landmark in the monetary landscape. Yet as such developments are still in their early stages, we have to wait to see what direction these developments are likely to go in and whether they can truly be replaced as the main form of payment for all the people in China. If this doesn’t occur, such a scheme could be implemented near globally, offering lower transaction costs and higher efficiency but also greater traceability.

In 2000, 71% of the current exchange reserves globally was in the form of US dollars. However, in 2022 it was only 58%. It’s true that the majority of all money held by central banks is still in this form, proving that the dollar is still seen as stable on the global stage, but the continual decline of the US dollar shows that the international currency of trade is being challenged by rising stars such as the BRICS.

It’s clear that any change in the dominance of the dollar is not likely to happen soon, nor will it happen rapidly. Most efforts to break dollar dominance come from China, showing their poor relations with America and desire to become more of a financial world leader. If unrest spreads further at how liberally the USA is using their sanction powers and inability to limit their spiralling debt crisis, then more countries will begin to look to China or other alternatives as their lifeboat. This would be an impending financial storm beginning to crest onto the horizon for the US.

Number of police officers in England & Wales, 2006 - 2019 140,000

by chamathka & barathy The High Street has now become a no-go zone. Thus, making a normal day-to-day outing too dangerous and difficult. Neither retailers (big and small) nor customers feel safe on the high street. The once bustling, lively and enjoyable high street has now been invaded by gangs who patrol the streets instead of the police. The crimes plaguing the high street include looting, shoplifting, sexual assault and theft. Recently, the shoplifting and looting have increased to the point that goods such as steak, coffee and cheese are being security tagged and locked up.

With 1000 crimes being recorded a day (by Co-op); and the constant attacks on employees, it has now become a question to employers whether it is safe to keep stores open.

What caused the high street to become a no-go zone?

The alarming increase in crime in the high street can be attributed to two distinct causes, namely: A drastic decrease in the number of police officers patrolling the high street and the current cost of living crisis the country is facing.

The Police force: During the Austerity period (the period of low government spending from 2010-2019), because of cutting down on the budget, the police; and consequently, the police were no longer able sufficiently patrol the high streets. The overall police officer numbers fell by 14.3% between 2010 and 2019. As a result, the police force was understaffed, stretched and under-resourced.

Thus, making it difficult for police to protect our high streets.The lack of policing meant that the police had to prioritise more serious crimes.

Consequently, retail crime on the high street was left unsolved. Despite the implementation of the ‘Beating Crime Plan’, which recruited 21,139 police officers in England and Wales between 2020-2023, the figures released by The Co-op group this year (obtained through the Freedom of Information Act), show that the Police failed to respond to 71% of crimes that were reported. Such figures would mean that firms are disincentivised to report crimes, resulting in offenders being left free to continue to engage in criminal behaviour affecting firms and consumers.

The Cost-of-Living crisis: The cost-of-living is a measure of changes in the average cost of buy a basket of different goods and services. The percentage changes are measured by the inflation rate, which uses the Consumer Price Index (CPI).

Th cost-of-living crisis is when the cost-of-living increases, to a point where consumers can only afford a limited number of necessities (I.e., food, shelter etc.). As a result, the standard of living will fall.

The current cost-of-living crisis, which is a consequence to the high inflation and rent, accompanied by a limited wage growth, people have to pay a higher proportion of their disposable income to afford necessities. However, those on low-income may not even be able to afford necessities; thus, resulting in them resorting to crimes such as shoplifting, looting and theft.

130,000

141.9

143.7

143.7

139.1

134.1

129.6

127.9

126.8

124.1

123.1

122.4

123.2

120,000

141.9

125,000

141.5

the high street is becoming a no-go zone. the police are not doing anything to stop this

135,000

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Source: ‘Police Workforce, ‘England & Wales’ - Home Office Statistical Bulletin (2019)

Children as young as seven are also resorting to shoplifting to access necessities such as baby formula or milk. Not only necessities get snatched off the shelves, but also luxury goods such as wine has also become a target to shoplifters.

Shoplifting is a crime currently rising again after the pandemic, yet the police and government have not done much against it. It has become so common that the police will not take any action against it unless the thief had stolen goods above £500. Due to this, businesses are losing money, and it is estimated that it costs retailers almost £1 billion from 2021-2022.

70% of this money went towards crime prevention while the remaining 30% was due to the direct costs of the crime itself. When shoplifters are caught by the security guards and explain their situation, the guards are said to feel sympathetic towards them and allow these sorts of crimes to occur. If the root cause, the cost-ofliving crisis was tackled, then there would be less crimes occurring as well as less crimes being allowed to occur.

With cases rising once again, the police were and are unable to track each shoplifter, understandably so, due to their own priorities in helping the citizens efficiently. Hopes were lost in the police department and current security guards regarding the shoplifting issue. Therefore, certain retailers have started to take matters into their own hands. For example,

recently a group of 10 large retailers, including Sainsbury’s, John Lewis, and Tesco, have agreed to spend £600,000 on a project to put an end to shoplifters. This will include the use of CCTV images to scan the shoplifter’s face, to then run it through the Police National Database and using the facial recognition technology, to identify the suspect.

Once found they will be added to the national shoplifting database, which will be formed due to this project, which will “help all retailers, not just the big ones” as Policing Minister Chris Philip had stated to the BBC. Another action plan that the government are setting to do is the “Anti-Social Behaviour Plan” which was released at the end of March this year. Though this is a step forward in tackling crime in the country and high streets, the question is whether

this resolves the pressing matters at hand. By resolving these matters first, it would be more effective in helping our high streets rather than these intricately made plans, which would have less effect especially when we have a lack of policing.

In April 2023, it was reported that three sexual assaults had occurred on Camden High Street within a month.

In June 2023, Bedford High Street was closed following a stabbing. In August 2023, there was a stabbing in broad daylight on Uxbridge High Street. Crimes are rising and this does not only include shoplifting and vehicle thefts, but also more severe crimes. The high streets are constantly becoming increasingly dangerous and yet there is so little that the police and government are doing in comparison to help resolve the situation.

Shoplifting is back to pre-pandemic levels

Shoplifting reported to police in England, Wales & NI MARCH 2023 32,960

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uk unemployment! by archita & vaibhavi The current situation 2023 has not been an exception to the UK economy’s downward spiral concerning its unemployment figures. According to statistics - A staggering 120,000 jobs were lost this year between March and June alone across the 11 sectors. In the last three months, unemployment rose by 159,000, to 1.46 million, which indicates that the employment market appears to have weakened.

Coincidentally, economic inactivity rates have also increased by 63,000!

The UK unemployment rate was estimated at 4.3% - a gloomy figure in comparison to December’s statistic of 3.7%.

Explaining Unemployment The UK government classified unemployed people as those who have actively sought work in the last 4 weeks and are able to start work in the next 2 weeks. Figures and statistics are often hauled onto headlines as the UK grapples with rising unemployment. However, the reality of the situation is far worse as the true quantity of all those unemployed compared to the official figures could even triple the unemployment rate. This occurs due to the weakening labour demand and increasing worker supply.

Recent closures and layoffs Recently, Wilko announced its failure to remain afloat and the process of its closure has resulted in around 12,500 employees encountering the grim reality of unemployment. The impact of this debacle will not go unnoticed

by the UK economy as those made redundant are less likely to act as avid consumers and more likely to save their money – as it creates a negative multiplier in the economy - deterring economic growth. Even the global economy has not been able to escape the sluggish effect of unemployment, with Google laying off hundreds of recruitment employees. Google’s concerningly frequent layoffs even led to a walkout earlier this year carried out by employees in London, where one of the company’s big offices is based.

The correlation between Artificial Intellegence and the risk of unemployment AI involvement in the job market has always been a divisive issue between companies and their employees.

There are many who fear mass unemployment that could result in recession whereas others argue that AI could create more jobs than it destroys. Many economists warn of the dangers of not embracing technological growth and advancement which could lead to the UK economy falling behind. However, a report conducted by the PWC found that 30% of UK jobs were at the risk of being automated within the next 2 decades, which fed into the public’s wary and suspicious attitude towards AI and all the consequences it would pose, rather than acknowledging the benefits it could provide to the economy by boosting productivity.

The contribution of covid to unemployment A significant event (which may be a cause of our rising unemployment rates) is the COVID-19 pandemic.

During the pandemic, our country saw businesses temporarily shut, meetings held over Zoom, and work-from-home rates increasing.

However, this triggered a wave of unemployment and job losses, whilst millions of people were furloughed.

The furlough scheme had a significant impact on workers’ mental health and attitudes towards work, contributing to unemployment. Employment levels fell throughout 2020, reaching their lowest point since the outbreak began in November 2020-January 2021.

There was a large fall in employment, while unemployment and economic inactivity both rose.

The pandemic has had an impact on the general population’s physical and mental health, as well as access to care. Since the beginning of the pandemic, more than half of the UK’s population has had COVID-19, and millions have developed long COVID, suffering long-term effects after infection, and have thus had to distance themselves from work, increasing redundancy.

Two years after the start of the pandemic, employment levels were still around 350,000 lower than they had been before it began. In January-March 2022, redundancies were below pre-pandemic levels, job vacancies were at record highs, and our economy has only been suffering since the start of the COVID-19 pandemic.

Aldi and Lidl face a slip in the competition & lose their market share by manjyot and preesha Aldi and Lidl’s market share have increased dramatically over the past year. Aldi’s market share reached 10.1% in the 12 weeks leading up to April, which is an increase from 8.8% a year ago. Lidl’s share reached 7.6% up from 6.6% in the same period last year. Head of retail and consumer insight Fraser McKevitt stated that the discounters have been “big beneficiaries” of consumers looking to snap up good value deals.

In recent years, both supermarkets have experienced the wrath in their stores, as their market share slips very slightly by 0.1%, due to their competitors enticing their customers with attractive prices and rewarding incentives for the shoppers. Tesco’s Clubcard and Sainsburys Nectar card make customers feel like they benefit in more ways than one when they shop, where they can profit from their encouraging buying with points, making them leave the shop feeling completely fulfilled. Aldi and Lidl stress over trying to entice their shoppers with their exciting prices, which have outshone Tesco and Sainsburys in the past. However, with Tesco’s price matching scheme, Aldi has begun to descend down the league table of the most valuable supermarkets. They have dipped in the market share from 10.2% to 10.1%,

becoming their first decline this year, with Lidl’s share falling from 7.7% to 7.6% being the first in 7 months.

While Aldi and Lidl may only be shedding a bit of their market share, this doesn’t guarantee their defeat.

In fact, Fraser McKevitt, said that a year after it had achieved the fourth largest supermarket in Britain, it had continued to spread its branches further across the country. Reporters have stated that despite this fierce battle against inflation, these companies have kept their shelves standing high and proud. This ensures that their pockets remained filled by emptying the pockets of their customers. They have risen their sales and stealing the wallets of all those whose eyes lay on their items as the inflation remains persistent against their ‘survival of the fittest’.

With their prices being their main attraction in the store, Tesco, Asda and Sainsbury steal their appeal as they dig into their larger budget to compete in line with Lidl and Aldi’s prices as they stand strong with a £6-£17 billion worth, belittling the beloved budget supermarkets. The more extravagant “Aldi” and “Lidl” have increased in their market share by 0.1% to 26.8%, due to their prices not only digging the pockets of their consumers, but also using the

rewarding gifting system leading to an impressive increase in their sales by 9.7%. Prior to this, Aldi was customers’ lifesavers during the cost-of-living crisis, as this budget store allowed customers to shop on a minimum wage budget. Although sales impressively increased by 22.2% due to their charming bargains, Aldi and Lidl have to grab a few snakes in the grass in order to survive this ruthless competition. Their gain of 800,000 new customers unfortunately doesn’t suffice for this subsidising inflation and decreasing market share.

Pessimistic customers are fretting for their current and future financial situations over the next 3 months, where 60% of people anticipate a massive pinch on the rising living costs. Watkins added that ‘with the added concerns of increasing mortgage and rental expenses for many households, it appears that a shift in sentiment may be some time off’.

These international supermarkets have no chance, against these British ones, where Tesco and Sainsbury have started to bury Aldi and Lidl in the sand, as their market share falls, causing their worldwide customers to lose faith in their local providers.

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