Britons Reduce Spending to Lowest Level since 2012

Shoppers in the UK/Reuters
Shoppers in the UK/Reuters
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Britons Reduce Spending to Lowest Level since 2012

Shoppers in the UK/Reuters
Shoppers in the UK/Reuters

British shoppers tightened their spending over Christmas, leading to the first year-on-year fall in spending since 2012, and leading businesses aim to do the same over 2018, two major surveys showed.

Evidence of a consumer slowdown in Britain has mounted since official data showed the weakest household spending growth in five years earlier in 2017 against a backdrop of high inflation and worries about Brexit that weigh on business investment.

Visa, whose debit and credit cards are used for a third of payments in Britain, said British consumer spending fell by 0.3 percent last year, after taking into account the effect of higher inflation, the first fall since 2012.

Spending in December alone was 1.0 percent lower than in 2016, also the first fall in five years, and reflected a squeeze on household incomes from the highest inflation in nearly six years, Visa said. Economists polled by Reuters expect growth this year will slow slightly to 1.3 percent, well below its longer-run average of just over 2 percent. Brexit remained at the top of the list of worries of more than 100 of Britain’s largest companies surveyed by accountants Deloitte, and the companies’ concerns intensified slightly.

The businesses also reported the biggest focus on cost control in eight years, despite a robust global economy. Deloitte’s chief economist, Ian Stewart, said: “In a world of accelerating growth and buoyant equity markets, domestic risks remain large. Reining in costs can help chief financial officers mitigate these.”

Risk appetite, a proxy for big companies’ willingness to invest, was a shade weaker than three months ago and well below pre-referendum levels. Deloitte surveyed 112 chief financial officers between Dec. 3 and Dec. 15. The CFOs’ companies represent about 20 percent of Britain’s publicly traded corporate sector by value.

In a related context, and among reasons that could indirectly affect Britons’ economic conditions, more than 500 companies including Ladbrokes, Easyjet and Virgin Money have revealed data highlighting gender pay gaps of more than 15 percent in favor of men for mean hourly pay. The gender pay gap refers to the difference between men and women in pay, regardless of their roles or jobs. This differs from pay parity, which means that companies must ensure that women and men with similar jobs receive the same remuneration for the work they do. In 2016, the gender wage gap was 9.4 percent for full-time workers and 18.1 percent for all workers.

Nearly half of UK workers will be affected by rules for reporting the difference in wages between men and women, which also reveal the difference in bonuses, and the results will be published in the government data list.

Companies with 250 or more workers must publish their figures by April and so far 527 firms have done so. According to BBC, Women's hourly pay rates are 52 percent lower than men's at Easyjet. On average, women earn 15 percent less per hour at Ladbrokes and 33 percent less at Virgin Money. All three firms say men and women are paid equally when in the same role.

At Easyjet, for example, 6 percent of its UK pilots are women, a role which pays £92,400 a year on average, whereas 69 percent of lower-paid cabin crew are women, with an average annual salary of £24,800, BBC reported. The carrier said it had set a target that one in five of new entrant pilots should be female by 2020.

The Ladbrokes Coral group put its gender pay gap largely down to "weak representation at our senior levels" and Virgin Money said it was "confident" men and women were paid equally for the same jobs.



UAE, Palestine Sign Agreement to Boost Anti-Money Laundering Efforts, Strengthen Regulatory Systems

Abdullah bin Touq Al Marri, UAE Minister of Economy and Tourism, and Yehya Shunnar, Governor of the Palestine Monetary Authority and Chairman of the Anti-Money Laundering Committee, during a meeting with officials. (WAM)
Abdullah bin Touq Al Marri, UAE Minister of Economy and Tourism, and Yehya Shunnar, Governor of the Palestine Monetary Authority and Chairman of the Anti-Money Laundering Committee, during a meeting with officials. (WAM)
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UAE, Palestine Sign Agreement to Boost Anti-Money Laundering Efforts, Strengthen Regulatory Systems

Abdullah bin Touq Al Marri, UAE Minister of Economy and Tourism, and Yehya Shunnar, Governor of the Palestine Monetary Authority and Chairman of the Anti-Money Laundering Committee, during a meeting with officials. (WAM)
Abdullah bin Touq Al Marri, UAE Minister of Economy and Tourism, and Yehya Shunnar, Governor of the Palestine Monetary Authority and Chairman of the Anti-Money Laundering Committee, during a meeting with officials. (WAM)

The United Arab Emirates and the Palestinian Authority signed on Friday a cooperation agreement aimed at strengthening joint efforts to combat money laundering and enhance economic and regulatory frameworks.

The agreement was reached during a bilateral meeting between Abdullah bin Touq Al Marri, UAE Minister of Economy and Tourism, and Yehya Shunnar, Governor of the Palestine Monetary Authority and Chairman of the National Anti-Money Laundering Committee.

Held at the Ministry of Economy’s headquarters in Dubai, the meeting explored ways to deepen cooperation and exchange expertise in supervisory and regulatory policies. Discussions also covered global trends in financial crime and their impact on the stability of economic systems.

According to the Emirates News Agency (WAM), both sides stressed the importance of aligning with international best practices and launching joint training initiatives to build specialized capacity. The goal is to enhance institutional readiness to address evolving financial crime threats and to reinforce investor confidence and financial integrity.

Al Marri highlighted the UAE’s strides in modernizing its legal and regulatory architecture to meet international anti-money laundering standards.

He pointed to the country’s recent achievements, including its removal from the Financial Action Task Force (FATF) grey list and the European Parliament’s list of high-risk jurisdictions.

The minister reaffirmed the UAE’s commitment to sharing its experience with the Palestinian Authority to help bolster its economic security and advance its financial oversight systems.

The meeting also showcased the UAE’s National Economic Register project, known as “Namo,” which provides a unified, reliable digital database of all commercial licenses across the country.

Officials discussed efforts to standardize procedures for identifying beneficial ownership and to boost oversight of designated non-financial businesses and professions, including real estate brokers, precious metals dealers, accountants, and corporate service providers.

Both parties agreed to continue coordination and knowledge-sharing in this critical sector, emphasizing the importance of building sustainable economic systems and fostering stronger bilateral cooperation in transparency, governance, and financial integration.