'Hell on the way' as inflation expected to hit 11%
- Published
Many of the papers feature the Bank of England's forecast that inflation could surpass 11% later this year. The Daily Telegraph's lead story reports that it is the eighth time in a year that the Bank has revised its forecast and marks the biggest overshoot of its 2% inflation target on record.
The Metro's stark headline says "11% hell is on the way", as the paper says the interest rate rise means "piling more cost of living misery on millions".
Meanwhile, the i says ministers have ruled out cuts to personal tax rates until 2024, with Chancellor Rishi Sunak saying that bringing forward income tax cuts would stoke inflation further. The paper reports that campaigners have said the 13-year high in interest rates will not ease the burden on households.
The Times's headline says there will be "pain ahead" as it reports the comments of Levelling Up Secretary Michael Gove, who said the government cannot help everyone during the cost of living crisis. The paper quotes one anonymous cabinet minister questioning why the Bank of England only increased interest rates by a a quarter of a percentage point, when the US Federal Reserve increased them by three times as much.
"Now brace for pain of the big crunch" is the Scottish Daily Mail's headline, as the paper reports that Mr Gove appeared to urge the Bank to increase interest rates higher than 1.25%, saying it must "squeeze out the inflationary pressures". The paper quotes experts who say interest rates could hit 3.5% by the end of the year.
The impact on food prices is the focus of the Scottish Daily Express front page, which says the 15% rise in prices forecast by industry leaders is a "shock". It will mean a typical family of four's monthly shopping bill could increase from £396 to £439.
The Herald reports on Michael Gove's comments that households will face "tough times" as inflation soars and interest rate rises push up mortgage costs. The paper reports that experts say hiking interest rates should cool the "red-hot" rise in inflation, because it encourages households and businesses to save rather than spend.
Reporting on the hike in food prices, the Daily Star says the average family of four will see the usual "big shop" increase by £43 a month.
Boris Johnson is "carefully considering" not replacing Lord Geidt after the ethics adviser quit with a scathing resignation letter, according to The Scotsman. The paper says Mr Geidt's letter claimed the prime minister had urged him to consider a proposal that would have been a "deliberate and purposeful" breach of the ministerial code.
A direct ferry link between Scotland and mainland Europe is set to reopen early next year, reports The National. The paper says The boat is expected to go from Rosyth, south of Dunfermline on the Firth of Forth, to Zeebrugge, on the coast of Belgium north of Bruges, in 2023.
The Scottish Sun reports that Line of Duty actor, Martin Compston, has been caught up in the singing of an IRA song at a Celtic convention. The paper says footage of Mr Compston, actor Gianni Capaldi and ex-Celtic midfielders Alan Thompson and Bobby Petta shows the men on stage as audience members sing an IRA chant along to the tune of Daniel Boone's 1972 hit Beautiful Sunday.
The Daily Record says Mr Compston has denied singing IRA lyrics, saying, "I 100% did not sing any IRA lyrics. You will see from the footage, I actually pulled up and told others to stop when the words were being changed."
NHS Lothian is facing a massive £8.5 million increase in its gas bill this year, according to Edinburgh Evening News. The paper says figures from the health board show gas costs tripling from £4,070,680 in 2021/22 to £12,632,249 in 2022/23. With a staff nurse paid about £30,000 a year and employment costs, including pension National Insurance, adding about another £15,000, the £8.5 million increase in the bill would be enough to pay for around 190 nurses.
The head teacher of North Muirton Primary School in Perth has told teachers they "should not be testing for Covid", according to The Courier. The paper says Annabelle Burns sent an email to teaching staff saying testing for the virus, or sharing results, could cause "unrest and upset".
The Press and Journal reports that a community-run garden in Peterhead has sustained up to £10,000 worth of damage within weeks of opening after a refurbishment. The paper says police have stepped up patrols in the area after the most recent incident, which included flowers being ripped, glass being strewn across the floor and damage to benches.
Plans to transform the biggest post-industrial regeneration site in Glasgow have been revealed, according to the Glasgow Times. The paper says The historic 150-year-old Govan Graving Docks is envisaged to become a residential neighbourhood with a heritage park, wetlands, and a plan to bring one of the docks back into use for ship repair and maintenance.
The Bread Guy bakery in Torry was broken into overnight making it the second break-in the store has suffered in the past few days, reports the Evening Express. The paper says a man has been charged in connection with the incident after being caught on CCTV.