Poorer families face higher debts as income losses bite

Many poorer families have faced a substantial rise in debt during the pandemic as they have found it difficult to cut expenditure as much their income has fallen, according to two reports published on Tuesday.

Research by the Resolution Foundation think-tank found the squeeze on family finances was greatest among poorer households, even though declines in income were spread evenly across income scale.

That financial pressure has compounded the debt problems already faced by poorer households, according to a separate study by the debt charity StepChange. It found that families more likely to have problem debt at the start of the pandemic have seen their incomes hit harder than those with fewer money problems in early March.

The reports complement an existing picture of people in lower wage and part time jobs finding they are most likely to be furloughed since the coronavirus crisis started.

In a special YouGov survey

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‘Glimmers of hope’ in UK retail and consumer spending in May

The contractions in UK retail sales and consumer spending eased in May as some lockdown measures were relaxed, but both still recorded the second-sharpest fall on record after April’s low as swaths of the economy remained closed.

The value of retail sales dropped 5.9 per cent in May compared with the same month last year, according to data from the advisory services firm KPMG and the British Retail Consortium, an industry body.

The fall was less severe than the 19.1 per cent contraction in April, when the lockdown was in full force, but it is the second-largest contraction since the series began in 1995.

“Sales in May demonstrated yet another month of struggle for retailers across the country, despite an improvement on the previous month,” said Helen Dickinson, BRC chief executive.

Food, the DIY sector, bicycle equipment and office supplies improved their performance, but Ms Dickinson added: “For those shops

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Ad agency M&C Saatchi snubs Murria’s bid for board seat | Business News

M&C Saatchi, the advertising agency responsible for some of the industry’s most famous campaigns, has rebuffed an attempt by its biggest shareholder to gain a boardroom seat.

Sky News has learnt that M&C, which has been beset by accounting problems, recently turned down a request from Vin Murria, a successful technology entrepreneur, to be appointed as a non-executive director.

Ms Murria made an unexpected swoop last month to buy a stake of just over 13pc in M&C, which has seen its share price crash by more than 80% over the last 12 months.

David Kershaw, CEO at M&C Saatchi (Photo by Peter Dazeley/Getty Images)

City sources said she had followed that purchase with a formal request for a board position, but that this had been denied for “corporate governance reasons” following consultation with its investment banking advisers.

It was unclear on Monday evening what Ms Murria’s next move would

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Coronavirus pandemic: What it’s like for travellers arriving in UK under 14-day quarantine rules | UK News

Travellers arriving in the UK have to self-isolate for 14 days from today to help stop the spread of COVID-19.

Some airlines have described the new rules as “unlawful” and “ineffective“, but how do those having to quarantine for two weeks feel about the new rules?

Here, Sky News speaks to people arriving in the UK today about their experience so far…

Dora Nganga

Flew to London Heathrow from Amsterdam

Dora Nganga is not too worried about quarantine rules

She went to the Netherlands to visit her partner’s younger sister, who is pregnant. They took the first flight they could get out of the UK and were happy to escape the lockdown for a while, and were on the way back home after the visit.

“We found out all the information before travelling – what to do and what not to do,” she said.

Ms Nganga is

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