Money latest: Britons prioritising Netflix over restaurants; bank launches £175 switch (2024)

Spending on online subscriptions has jumped annually, boosted by series such as Baby Reindeer and Ripley.

While retail and fast-food spending contracted or remained the same over the past year, new data from Barclays noted a 10.6% increase in spending on digital content and subscriptions.

Two Netflix mini-series, Baby Reindeer and Ripley, helped drive the increase, according to Barclays.

Continued concern about the cost of living, notably housing costs, meant spending in restaurants was down by 13% in April compared with the same period last year.

Roughly half of the country said they were concerned about how much they spend on food and drink, according to Barclays.

Nearly 73% of people said they were actively looking for ways to reduce the cost of their weekly shop, while six in 10 shoppers said they had noticed supermarket products running out of stock.

Despite this, 71% of people surveyed said they felt confident in their ability to manage their household finances.

By Sarah Taaffe-Maguire, business reporter

The record profits in the wake of the Ukraine invasion are clearly behind oil and gas giant BP with the news that profits nearly halved in the first three months of 2024.

Due to oil refinery outages and lower gas prices, the London Stock Exchange listed company reported profit down 45% to $2.72bn (£2.17bn), compared with $4.96bn (£3.95bn) last year - an even worse performance than City of London analysts had been expecting.

The good news for shareholders is continued dividends and a maintained share buyback programme - that is likely the reason the share price has fallen only 0.14% this morning.

Overall the most valuable companies of the Financial Times Stock Exchange (FTSE) 100 index were up 1.08%.

A barrel of Brent crude - the benchmark for oil prices - was $83.54, below recent highs.

On the currencies front £1 buys $1.254 and €1.16.

The bank switching market is back after a hiatus over the last couple of weeks - with First Direct relaunching its £175 incentive on current accounts.

There are no similar deals on the market, though last week Virgin Money launched a switch offer promising 10% interest on current account balances up to £1,000 for a year.

To qualify for the First Direct incentive you must:

• Go through the full Current Account Switch Service (Cass) process
• Transfer a £1,000 balance into the account
• Switch at least two regular payments
• Use their debit card at least five times within 30 days of the account opening

Chris Pitt, chief executive of First Direct, said the £175 offer "will only be around for a limited time only".

It's worth considering, especially if you're about to apply for a mortgage or credit, that opening a new bank account can temporarily impact your credit score.

Which banks gain most from switching?

According to figures from the Current Account Switch Service (CASS), Nationwide had a net gain of 163,363 account switchers between October and December last year.

Barclays and Lloyds Bank saw more modest net gains of 12,823 and 5,800 respectively, while the rest of the UK's big banks reported net losses.

NatWest and Halifax fared worst, losing over 40,000 more switchers each than they gained.

None of these banks currently have switch incentives.

A new forecast suggests the average UK house price will be £61,500 higher in 2028.

Savills estate agent says the average value will increase by 21.6% from £285,000 in 2023 to £346,500 by 2028.

It says an improved medium-term economic outlook is behind the rise from its previous 17.9% forecast.

This year, Savills expects house prices to grow by 2.5% - rather than a 3% drop it predicted in early November.

The market remains sensitive to short-term fluctuations, it said, due to uncertainty over the timing of an interest rate cut and political uncertainty ahead of a general election.

Lucian Cook, head of residential research at Savills, said: "The outlook for 2024 has improved since our last (November 2023) forecasts as mortgage costs have nudged down slightly and are much less volatile.

"The outlook for economic growth has also slightly improved, pointing to relatively modest house price growth this year, with greater potential over the following few years."

He cautioned that wider global uncertainties have seen swap rates, which lenders use to price mortgages, rise.

He added: "Consequently, we are unlikely to see a further meaningful fall in mortgage rates this year, with the potential for short-term fluctuations in the cost of debt and house prices."

Savills used Oxford Economics and Nationwide Building Society data for its research. Its calculations were based on the second hand property market, so new build property values could perform differently.

Savills' predictions for regional house price growth over the five years to 2028:

• North West, 28.8%
• Yorkshire and the Humber, 28.2%
• Wales, 26.4%
• Scotland, 25.8%
• North East, 25.2%
• West Midlands, 23.4%
• East Midlands, 22.8%
• South West, 18.7%
• South East, 18.2%
• East of England, 18.1%
• London, 14.2%
  

For two days this week, Londoners will be able to try one of the world's best (and most expensive) tasting menus for a fraction of the price.

Ikoyi, which currently ranks 35 in the World's Best Restaurants, has teamed up with Uber Eats to offer a scaled back version of its £320 dinner.

Executive chef Jeremy Chan says the five-course delivery is probably the most "technical and refined" takeaway in the city, though some of the original dishes have been tweaked so they travel better.

To compensate for this, and for the trouble of having to fill up your own water after each sip, your bill will come in at a less eyewatering £60 per person.

But if you're thinking this venture is a concession to those who baulk at the price of Chan's two-Michelin starred menu (which comes in at almost £100 more than those at similarly lauded Core by Clare Smyth and The Ledbury)… it's not.

"I don't think people pay enough money for food, I think we charge too little, [but] we want to always be accessible to as many people as possible, we're always trying our best to do that," Chan tells the Money blog, before offering a detailed response to a (perhaps) hypothetical customer who wonders why a plate of fish is so expensive.

"You're paying the fishermen, you're paying for the person that's transporting it. You're paying for the logistics company, dry cleaning for the towels used to dry the fish, the paper towels that are being used to clean the guts of the fish, then waste disposal."

The fish then goes through a five-day aging process.

"We have three dry-ageing chambers that are used to store exceptional produce from very, very small producers and just the running costs of those alone [are very high]."

He goes on: "So, that single piece of fish has gone through many, many steps to go from fishermen to me, and you haven't even thought about the years of research and relationship building with the supplier. You can't just call a wholesaler and say, give me the turbot that Ikoyi is using."

All of which doesn't cover Chan's own work with the ingredients.

"I'm the one who peels the quail eggs. It's not just boiled, peeled and put on a plate... the owner of the restaurant is standing there for four hours perfectly peeling these quail eggs.

"Think about the time - that's the biggest cost in a restaurant that people don't think about, one's life, it's my life."

It's perhaps no surprise, in light of all the above, that Chan sees his collaboration with Uber Eats as a one-off.

On the menu is:

• Mutton merguez sausage with a green goddess slaw
• Fried chicken with smoked scotch bonnet and raspberry
• Jollof rice and crab custard
• Suya tamari pork with mustard greens and kumquat
• Flower sugar cake with batak berry and Garigette strawberry

It's the second Michelin tie up for Uber Eats after its £200 two-person tasting menu offering from Ynyshir in Wales, which was named best UK restaurant in 2022 and 2023.

The food will be delivered by a regular rider/driver, so Chan and his team have had to put thought into the ingredients.

"Everything on the menu has been designed to retain heat.

"For instance, the Merguez is made with a beautiful aged mutton shoulder, which has such deep, intense flavour. I don't have to worry too much about the cooking temperature because it's so fatty.

"We're going to make a little note [for the customer] that says 'quickly flash in the pan to bring it back to life, and it will still taste great'.

"A radicchio is obviously hearty, so it's not going to break down.

"All the dishes, if people eat them cold, they are still going to be tasting nice and they're also structurally sound so they don't require assembly - we're making something that can just be eaten straight away out of the box."

The Ikoyi tasting menu is available in central London to Uber One customers on Friday and for everyone on Saturday, between 5-10pm.

Qantas is being forced to pay a £53m penalty along with £20m in compensation to passengers following a legal battle over tickets it sold for cancelled flights.

The Australian Competition and Consumer Commission (ACCC) sued Qantas last summer, alleging the airline had broken consumer law when it sold tickets for more than 8,000 flights without disclosing they had been cancelled.

One case saw the airline selling tickets for a Sydney to San Francisco flight some 40 days after it had been cancelled, the ACCC said.

More than 86,000 customers will share the compensation pot, and will be contacted over the next two months.

Gina Cass-Gottlieb, chair of the ACCC, said the airline's behaviour was "egregious and unacceptable".

"Many consumers will have made holiday, business and travel plans after booking on a phantom flight that had been cancelled," she said.

"We expect that this penalty, if accepted by the court, will send a strong deterrence message to other companies."

Qantas's chief executive Vanessa Hudsons said the agreement was a "step forward" to "restoring confidence" in the airline.

She said the administrative failings were caused by COVID, and that the airline was "sincerely sorry".

If you'll be affected by the M25 closure this weekend, it's worth noting that an alternative diversion route could slap you with an unexpected ULEZ charge.

The M25 will be closed in both directions between Junctions 9 and 10 in Surreyfrom 9pm on Friday until 6am on Monday.

Official diversion routes will take drivers on A roads crossing from Surrey into London's ULEZ area, but there will be no enforcement action for anyone taking the official route who does not meet the ULEZ requirements.

However, National Highways has warned anyone ignoring diversion signs in an attempt to find shorter alternative routes will be liable for the £12.50 daily ULEZ fee.

Of course, this does not apply to cars that meet the low emission standards.

The ULEZ was expanded to cover every borough of London last year.

The UK economy would be better off if there were fewer buy-to-let landlords, the country's biggest investment company has said.

Legal and General Investment Management (LGIM) told The Telegraph that "unscrupulous" landlords were "taking people's deposits and giving them a bad experience".

Bill Hughes, global head of real assets at L&G, said the rental sector needs an overhaul as too many buy-to-let landlords have been "suboptimal and substandard".

L&G has built a portfolio of 10,000 build-to-rent homes in the last eight years, and predicts traditional landlords will gradually be replaced by purpose-built rental properties managed by institutions.

Single-sex toilets will be legally required in all new restaurants, bars, offices and shopping centres, the government has announced.

It is set to change building regulations later this year to make it compulsory for premises to provide separate facilities for men and women.

The move follows an increase in the use of gender-neutral toilets.

The UK has installed a record number of public electric car chargers this year, figures show.

Nearly 6,000 new chargers were installed in the first three months of the year, according to Zapmap analysis of government data.

Some 1,500 of these were rapid chargers.

A common concern among those hesitant to switch to electric vehicles is range anxiety or the fear of not being able to find a charger.

By Emily Mee, Money team

Scroll through GoFundMe and it won't be long before you see them.

There's a widow left with her husband's financial struggles. Three young siblings trying to raise funds for their mum's send-off after her sudden death. A 25-year-old domestic violence victim whose family want to give her the send-off she deserves.

There are scores of pages like this as an apparently increasing number of Britons struggle with funeral costs.

These costs have risen 126% in the last two decades, according to a recent report from SunLife.

Where families would once have paid £1,835 for a basic funeral, they are now looking at costs of £4,141 on average.

"People can't afford to bury their dead," says Pastor Mick Fleming, who runs the charity Church On The Street.

He frequently spends his time helping families pay for funerals and providing his services as a minister for free, although he says there is simply too much demand for his small charity to help everyone.

Government or local authority grants are available to help families with funeral costs, but Pastor Mick says these can come too late as undertakers will often require a partial payment upfront.

There's an even darker side to this, too.

"What we're now seeing is people who are poor can't walk into the bank and get a bank loan - the economy's tough at the minute," Pastor Mick says.

"They can't get legitimate access to money so they can't borrow it and pay a decent standard rate back, so they have to go to loan sharks."

Many then find it impossible to pay the loan back and face threats from the criminals who lent them the money, says Pastor Mick.

He recalls: "There was a middle-aged lady, she had to borrow the money to bury her son.

"She couldn't pay the money back so then she started to get threatened and intimidated. People turning up at the house.

"It was pretty horrendous. She was getting suicidal. She was heartbroken already and she just couldn't get the money together."

The pastor says he was able to negotiate on her behalf - something he is now having to do as part of his charity work - but "you can't do that for everybody".

A funeral without a service

The number of funeral-related fundraisers increased by 22% on GoFundMe last year, figures shared with Sky News reveal.

Individual donations to these fundraisers increased by almost 400,000.

Many of these are trying to avoid their loved one being given a public health funeral, which is what happens if families are unwilling or unable to pay.

Local authorities are legally obliged to carry out funerals in this case, but they are given little guidance from the government on what this should entail - meaning each council will have its own policy on what is or isn't included.

In some cases, a service will not be offered and a person will be cremated or buried without the presence of family members.

Other times, the family may be allowed to attend but they might not be able to get involved in the service.

Generally, people will be cremated, unless they have asked not to be for religious or cultural reasons.

Those who are buried will often have a grave with no marker, or they may be placed in a communal grave.

"For someone that's lost a child or a husband or a wife or any loved one where you just haven't been able to provide closure, there's a sense of guilt that goes with it," Pastor Mick says.

As long as funeral costs remain eye-wateringly high, families across the country will be dealing with that guilt.