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- Fines for parents taking children out of school to increase next month
- Mortgage product shelf life drops significantly in sign of volatility
- The UK's highest-earning roads revealed
- Pound up against dollar after busy week on economic front
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Retail sales rose in July after Euro 2024 and summer discounts
British retailers saw a rise in sales last month after a boost from Euro 2024 and summer discounting, according to official figures.
High street retailers said sales of football shirts, electronics such as TVs, and alcoholic drinks were all stronger amid the Three Lions' journey to the final.
Total retail sales volumes rose by 0.5% in July, the Office for National Statistics (ONS) said. It was, however, slightly below predictions, with economists forecasting a 0.7% increase.
It followed a 0.9% slump in volumes in June as retail firms blamed uncertainty ahead of the general election and poor weather.
ONS director of economic statistics, Liz McKeown, said: "Retail sales grew in July led by increases in department stores and sports equipment shops, with both the Euros and discounting across many stores boosting sales.
"These increases were offset by a poor month for clothing and furniture shops, and falling fuel sales, despite prices at the pump falling."
The data showed that non-food stores saw a 1.4% rise, driven by a strong performance from department stores, where sales grew by 4% for the month as summer sales helped to stoke demand.
However, clothing and footwear shops saw a 0.6% dip, whilst homeware retailers also saw volumes fall 0.6%. Food stores, meanwhile, saw sales remain flat for the month.
Fears £2 bus fare cap could be scrapped
There are fears that the £2-cap on single bus fares could be scrapped after the government declined to say whether the policy would continue past December.
Bus companies said it was vital the cost of using their services is kept low for young people to "enhance their access to education and jobs".
Alison Edwards, director of policy and external relations at industry body the Confederation of Passenger Transport, said: "Bus operators are working closely with the government so that together we can find a way to avoid a cliff edge return to commercial fares.
"Analysis has shown that supporting fares, which can be done in a range of different ways, is great value for money and can support many other government objectives.
"For example, keeping fares low for young people would enhance their access to education and jobs, while also encouraging them to develop sustainable travel habits to last a lifetime."
Transport Secretary Louise Haigh said in a recent interview with the PA news agency that her officials were "looking at various options" in relation to the cap, including whether they could "target it better".
Pound up against dollar after busy week on economic front
It's been a busy week on the economic front.
There was no major shift in the overall outlook - since Monday we've had it confirmed that the UK economy has lower inflation and more growth than the last two years, while wages have grown faster than the overall pace of price rises.
On the back of all that news the pound is at the highest rate since early this month against the dollar, worth $1.2882, and the highest since July when it comes to buying euro with one pound equal to €1.1733.
Signs of a recovery from the global market sell-off of Monday last week can be seen in the share prices of companies listed on the London Stock Exchange.
Share prices have grown among the most valuable companies on the stock exchange, those that comprise the Financial Times Stock Exchange (FTSE) 100 list of most valuable companies.
Today though, this benchmark UK index fell 0.19% but finishes the week higher than the start.
Also finishing the week higher than the start are the more UK-based companies of the FTSE 250 (the 101st to the 250th most valuable firms on the London Stock Exchange).
On Friday morning that index was up 0.08%.
With tensions in the Middle East and Eastern Europe high as Iran mulled a retaliatory strike on Israel and Ukraine made incursions into Russian territory, there had been concern about energy price spikes.
But the benchmark oil price has remained steady at $80.13 dollars for a barrel of Brent crude oil.
Gas prices have remained below the Monday high of 100 pence a therm (the measurement for heat) and now are 94.50 pence a therm.
Government responds to claims over 15% pay offer for train drivers and junior doctors
A Cabinet Office minister has said it is "unfair" to suggest other public sector workers will be queuing up for a pay rise after the government's offer of a 15% increase for train drivers and junior doctors.
"I think that's an unfair characterisation as well," paymaster general Nick Thomas-Symonds told Times Radio.
"I think what is absolutely crucial here is we are a Government again that is sticking to the promises we made in opposition.
"We promised we would sit down and find solutions, and people expressed scepticism about that, but actually that is precisely what we have done in Government."
Last month, the government and the British Medical Association struck an improved pay deal for junior doctors in England worth 22% on average over two years.
Meanwhile, train drivers will vote on a new pay deal following talks between representatives of drivers' union ASLEF and the Department for Transport.
The new offer is for a 5% backdated pay rise for 2022/23, a 4.75% rise for 23/24, and 4.5% increase for 24/25.
The UK's highest-earning roads revealed
The Dartford Crossing is the highest-earning toll road in the UK, new data shows.
The Kent to Essex route raked in £215.9m in the last year - 2,159 times more than the Whitney toll bridge in Hereford.
The crossing, which was supposed to stop charging customers in 2003, costs between £2 and £6 to use (depending on the vehicle you're driving) between 10am and 6pm every day.
Car finance company Moneybarn found it earned just over £209m in 2022.
It topped the chart of 13 toll roads in the country, making over £100m more than the second highest-earning road in 2023 - the M6 Toll in the West Midlands.
In third place was the Mersey Gateway Bridge between Halton and Cheshire, which made £48.9m.
You can see how the other toll roads fared below...
Fines for parents taking children out of school to increase next month
Fines for parents who take their children out of school will increase this upcoming term as the government continues with plans to improve attendance.
From next week, fines for unauthorised absences will go up by as much as £40.
Under the new system, the cost of a penalty charge notice will rise from £60 to £80 if paid within 21 days, and from £120 to £160 if paid within 28 days.
This marks the first increases since the system was introduced in 2013.
So, when do parents get fined?
Children are only allowed to miss school if they are unwell, or they have been given permission from the school in advance.
Parents can make an absence request to take their children out of school, but there needs to be "exceptional circumstances" and the headteacher needs to authorise it.
Currently, it's the responsibility of the local authority to decide when to issue fines, meaning the process varies from council to council.
But, under the new rules which were created by the Conservative government, all schools will be required to consider a fine when a child has missed at least five days of school for unauthorised reasons.
What happens if you keep getting fined?
If a parent receives a second fine for the same child within any three-year period, this will be charged at the higher rate of £160.
A parent can only receive two fines within any three-year period, and once this has been met, other actions can be considered.
This includes a parenting order or prosecution.
Parents who are prosecuted and attend court because their child hasn't been attending school, can be fined up to £2,500.
Where is the money spent?
Government guidance states any money collected from fines should be used by the local authority to cover the costs of administering the system.
Any surplus after that should be spent on "attendance support".
Any cash remaining at the end of the year must be paid to the education secretary.
A Department for Education spokesperson said: "High and rising school standards are at the heart of our mission to break down barriers to opportunity and give every child the best start in life. Strong foundations of learning are grounded in attendance in the classroom.
"Tackling the root causes of absence is a major priority for the government.
"Our support-first approach outlined in our guidance is designed to help parents to meet their responsibility to ensure their child attends school.
"However, in some cases, including term-time holidays, it may be necessary to issue penalty notices."
Mortgage product shelf life drops significantly in sign of volatility
Every Friday we take an overview of the mortgage market, speaking to those in the industry before getting a round-up of the best rates courtesy of the independent experts atMoneyfactscompare.co.uk.
Over recent months and years, the release of monthly inflation data has had a big impact on forecasts for interest rate cuts - but not this week.
Following a slight uptick in inflation to 2.2% in July, announced on Wednesday, markets were pretty unmoved at pricing in a 63% chance of a base rate cut next Monday.
Investors still think there will be two further cuts this year, bringing the base rate down to 4.5% by Christmas.
On the high street, rate cuts we've mentioned for a month or two now continued this week, with the lowest five-year fixed available now 4.83% - with NatWest, Barclays and Nationwide all settling there for now.
Moneyfacts finance expert Rachel Springall said: "Nationwide Building Society was one of many mutuals to cut fixed rates this week - it now offers a five-year fixed as low as 3.83%. NatWest also cut rates by up to 0.20% and Virgin Money made similar reductions."
Looking specifically at home movers, Springall has some data that shows the difference between now and this point five years ago.
"Home movers who want to lock into a longer-term fixed mortgage will find the average overall five-year fixed rate is much higher than it was back in August 2019, which was 2.84%. Week on week, the overall average two-year and five-year fixed rate mortgage fell to 5.66% and 5.29% respectively."
Away from rate changes from some of the big lenders, one of the most telling insights into the mortgage market this week came with statistics about the average shelf-life of mortgage products.
Springall said: "The volatility within the mortgage market was made clear by the notable drop in the average shelf-life of a mortgage to just 17 days, down from 30 in June.
"There are expectations for rates to fall further in the weeks to come, particularly as the market reflects on the 0.25% base rate cut, the first cut in over four years."
Here's a look at the look at the best rates currently on offer for house purchases...
Moneyfacts also looks at what it calls "best buys" - which considers not just the rate, but other costs and incentives. These are their top picks this week...
Watch: Why are so many pubs closing?
British pubs are in trouble, with more of them closing every year.
Once the beloved watering holes for many communities, they have fallen victim to higher costs, changing habits and "the real estate incentive".
Some 239 pubs closed in England and Wales during the first three months of the year, according to government figures – 56% more than in the same period in 2023.
Our Money reporter Brad Young has been exploring whether this is the end of the British pub as we know it.
Earlier this week, he spoke to communities and experts about the reasons behind recent closures - you can read his piece here.
In the video below, Brad explains three reasons why pubs are struggling.
Amazon Prime Air trials clear for take-off
Amazon has been cleared for take-off with the testing of new drone delivery in the UK.
Amazon Prime Air already offers drone deliveries in the US with drones able to fly 12km from their fulfilment centres.
But the service could now come to the UK, with Amazon hoping to launch it by the end of the year. It has ambitions of delivering small packages within an hour of an order being placed.
The online retailer is one of six organisations taking part in a new trial from the Civil Aviation Authority (CAA) - with other projects including using drones to inspect offshore windfarms, for policing and delivering medical supplies.
The trials will gather safety data and look at how drones can detect and avoid other aircraft while up in the air.
"Our goal is to make drone operations beyond visual line of sight a safe and everyday reality, contributing to the modernisation of UK airspace and the incorporation of new technology into our skies," said Sophie O'Sullivan, from the CAA.
Energy company to launch 'free electricity sessions'
Octopus Energy is launching "free electricity sessions" for its customers when wholesale prices plummet.
Starting from today, those who are signed up to the "Octoplus" rewards scheme can take part.
The one-hour-long sessions will be available whenever the wholesale electricity price hits zero or goes into negative figures, the energy firm said.
Rebecca Dibb-Simkin, chief product officer at Octopus Energy, said:"Free electricity sounds like it's too good to be true but it's real.
"By using more when there is plenty of renewable energy instead of when the grid is dirty, our customers can save money while making the grid greener and more efficient. It's a win-win for our customers and the planet."
How does it work?
Those who have signed up for the free electricity will be notified the day before the session will take place.
On its website, the company said the free period will generally be between 1pm to 2pm.
During that time, customers can use as much electricity as they want, with all the power used above their typical usage not costing anything.
Within a week, customers will receive an email telling them how much extra power they used, and within two weeks, they will see that amount paid into their account as bill credit.
How many sessions will there be?
There are no set amount of sessions planned to take place as they are based on dips in the market, which is changing all the time.
However, Octopus Energy has said it is hoping for at least two or three before winter.
In the last year, it said there had been 14 days when electricity prices dropped below £0 due to excess renewable energy being generated.
"During these times, wind farms are often paid to shut down to prevent grid overload, meaning valuable green electrons go to waste," it added.
"By powering up during these periods, households can maximise green energy availability - making the system more efficient and lowering system costs for all."
It's important to know that you must have a working electric smart meter in order to take part.
You can read all the terms and conditions here...