Tuesday newspaper round-up: Mortgage defaults, Community Fibre, Joules

by | Oct 11, 2022

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Kwasi Kwarteng will need to find £60bn of savings by 2026 to fill the gap left by unfunded tax cuts and the costs of extra borrowing triggered by a panicked reaction on international money markets to the chancellor’s “mini-budget”, according to the Institute for Fiscal Studies. The UK will also struggle to hit the chancellor’s 2.5% growth target, with economic forecasts by the investment bank Citigroup that the IFS uses to underpin its analysis showing the UK will struggle to grow at more than 0.8% on average over the next five years. – Guardian
The boss of Santander UK says the bank is putting aside more money for potential defaults linked to the cost of living crisis after seeing a pickup in customers falling behind on mortgage and loan payments. Mike Regnier told the Guardian that he was keeping a close eye on the “strain and pressure” facing customers as a result of the cost of living crisis, which has made it harder for some households to keep up with rising food and energy bills and financial commitments such as home loans. – Guardian

More than one in three businesses are planning to raise workers’ pay to match or exceed inflation as companies battle to retain staff amid widespread shortages. According to a survey conducted by the Confederation of British Industry (CBI), three-quarters of businesses have been impacted by labour shortages over the last year, with half of those reporting they cannot meet demand from customers as a result. – Telegraph

A private equity backed-challenger to BT has secured nearly £1bn in funding to expand its full-fibre network across London, the latest injection of capital into the so-called “alt nets” taking on the former state monopoly. Community Fibre, which is backed by US fund Warburg Pincus, Deutsche Telekom, infrastructure fund Amber and the railways pensions scheme, is planning to wire up 2.2 million London homes to full fibre broadband by 2024. – Telegraph

Joules, which has 130 stores, said an insolvency deal with creditors and landlords could be a way to head off a collapse that has led to its shares falling sharply. A multimillionaire car dealer who has just become the second largest shareholder in Joules says he has not ruled out taking part in a rescue of the beleaguered fashion retailer. – The Times

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