Money blog: Santander swearing ban receives mixed reaction (2024)

By James Sillars, business reporter

There has been no second interest rate cut by the European Central Bank (ECB), as widely expected.

The body responsible for monetary policy in the euro area maintained its current guidance on the path ahead following its latest meeting.

As such, there were no hints about what the governing council might do at its next meeting in September.

The rates announcement said that domestic price pressures remained elevated, and inflation would remain above the ECB's 2% target well into next year.

Pret A Manger is scrapping its popular five coffees a day subscription deal - but is also cutting prices of a number of products.

Under the current club offer, which has been running since 2020, customers pay £30 a month for the free drinks and a 20% discount on the rest of its menu.

But, from 3 September, Club Pret members will pay £10 a month to receive 50% off on up to five barista-made drinks a day.

The "simpler" scheme will initially launch at £5 a month for existing and new subscribers, but will increase on 31 March 2025.

The change also means an end to the 20% discount, with the chain saying it "never really got comfortable" with dual pricing.

In a letter sent to customers, Pret's managing director Clare Clough said: "Four years and over a quarter of a billion coffees later, we have decided that it's time to rethink how it works.

"We know this is a change. But with Club Pret subscription, our coffees, teas, coolers and iced drinks will continue to be the best offer on the high street, and at a much more accessible price than the £360 a year people have to pay for the current scheme.

"Given the majority of our customers are not Club Pret subscribers, our priority now is to focus on better value for everyone."

In March, the chain implemented a crackdown to prevent Club Pret subscribers from sharing free drinks.

Some customers were exploiting loopholes by sharing subscription benefits.

Since then, club members have been required to use the app to redeem their complimentary drinks.

Pret also announced that its signature 100% organic arabica filter coffee would drop from £1.80 to 99p, and its all butter croissant will also drop from £2.30 to £1.99.

For Savings Guide this week, Savings Champion co-founder Anna Bowes explains why savers should be excited by yesterday's inflation figures...

Headline inflation as measured by the Consumer Prices Index remained at the government target of 2% for June.

It returning to these levels means prices are rising less quickly than they have been over the last couple of years.

For savers, it means that, currently, over 90% of savings accounts are offering a rate that beats the rising current cost of living.

But savers should be aware there are still accounts out there paying less than 2%.

The National Savings & Investments Investment Account is paying just 1% - when you could earn 5.2% in the Ulster Bank Loyalty Account.

On a deposit of £10,000, that would mean that you'd earn just £100 rather than £520 with over 12 months.

More importantly, with your cash earning less than inflation, it is failing to keep up with the rising cost of living, so the real value of your cash is being decimated.

There are currently more accounts than ever for savers to choose from, but don't let choice paralysis and inertia stop you from earning the interest you deserve.

Here are some of your other options...

Santander has announced it will "now stop any payments with profanities in the reference" for its business banking customers.

Several high street banks do not allow swearing in the references already so Santander is not alone, but it has still raised a few eyebrows.

You can let us know your thoughts in the comments section above - but here's what some business people told Newspage...

Graham Cox,directoratSelf-Employed Mortgage Hub, said:"When you consider the vile comments left on social media these days, it can't be much fun for Santander's staff constantly viewing profanities on banking transactions."

Stephen Perkins,managing directoratYellow Brick Mortgages, said Santander censoring and blocking payments seemed "a little heavy-handed".

"While it's great that Santander cares about decency, this move feels a bit like your overly strict aunt scolding you for harmless jokes. We really don't need Big Brother banking," said Ranald Mitchell, directoratCharwin Mortgages.

And Hannah Bashford,directoratModel Financial Solutions, said: "Santander's proposal to filter profanities in the business banking app is unnecessary and may have the unintended consequence of blocking business for some the Britain's rudest named villages.

"Does that mean all holidays to Sandy Balls are cancelled?"

Sainsbury's has increased the cost of its lunchtime meal deal by 25p from £3.50 to £3.75.

It is the first price hike for the deal in three years.

Here's some of the reaction we've seen on X...

For £3.75, customers can get a main, which includes a range of sandwiches, salads and wraps, a snack and a drink.

A Sainsbury's spokesperson told the Money blog that the supermarket wants to make "good food affordable and accessible to everyone".

"We continue to offer one of the best value meal deals around, with millions of delicious possible combinations which could mean customers save more than half off the usual price - whether they're grabbing a hot bacon roll, a fruit pot and a coffee for breakfast, or a lunchtime sarnie with crisps and a smoothie," they said.

How do other meal deals compare?

The price hike now makes a Sainsbury's meal deal one of most expensive supermarket deals in the country.

It comes behind Waitrose, which charges £5 for the main, snack and drink combo.

Tesco comes in third place,charging £3.90 to customers without a Clubcard. However, this price falls to £3.40 for those who are part of the loyalty scheme - one of the cheapest deals.

A Morrisonsmeal deal costs £3.50, which is the same as Co-op.

Asda doesn't offer a fixed price for its meal deal. Instead, it operates a 3 for 2 system, which gives customers the cheapest item for free.

Let us know which you think is the best value in the comments section

By Sarah Taaffe-Maguire, business reporter

The pound has held on to much of the high it gained on the back of higher-than-expected inflation data yesterday.

Sterling remains close to the year high against the dollar and nearly a two-year high against the euro recorded yesterday afternoon.

£1 buys $1.299 and €1.188.

These exchange rates are good for any Britons travelling to the US and to any of the 20 countries using the euro - their pound will now go further than it has done in the past 12 months for dollars and 23 months for euro.

There could be a broader benefit to consumers if the rate remains good for sterling - the cost of importing goods bought with dollars and euro could be less.

One key purchase bought in dollars in oil - which is up from Wednesday to $85.16 for a barrel of Brent crude oil.

Share prices of the major London Stock Exchange indexes are up - the Financial Times Stock Exchange (FTSE) 100 rose 0.77% and the FTSE 250 was up 0.76%.

People in the commuter city of St Albans have seen the biggest house price falls in England so far this year, according to a property platform.

Almost half of homes in the Hertfordshire city have seen their value drop in the last six months - the average drop has been £4,500, Zoopla says.

The area has the highest house prices in the East of England, making it one of the least affordable places to be outside of London.

Potential buyers have struggled to get on the property ladder due to soaring mortgage rates, which has caused sellers to drop their asking prices, Zoopla said.

The fall in values also reflected the end of a property boom in the city, which came during the pandemic as hybrid workers looked for houses with more outdoor space.

The only area that saw more homes lose value between January and June was Dumfries in Scotland - 54% of homes lost £2,100 in value.

This is despite the rest of the country seeing signs of recovery in the property market.

Half of the country's 30 million homes increased in price, with properties typically up by £2,400.

Some 10 million properties are estimated to have increased in value by £5,000 or more in the past six months.

Towns and cities in northern England were particularly likely to have experienced gains over the first half of 2024.

Homeowners in Oldham, Wakefield and Durham were most likely to have seen the value of their homes increase.

Owners of terraced homes were seeing more gains than owners of other property types.

UK average regular earnings growth fell from 6% to 5.7% in the three months to May - its slowest pace for two years.

This figure is still way above inflation (which is 2%).

When you factor in inflation, real wages for the average Briton climbed 3.2%.

All this is important because wage growth is inflationary - and the Bank of England wants to see evidence it is slowing before lowering interest rates.

Business presenter Ian King says today's data represents a "modest fall" but cautions that these are still "pretty punchy numbers".

He suggests that, factoring in yesterday's services inflation coming in higher than expected, the overall data picture may "push the MPC towards sitting on their hands again next month [on 1 August]".

That would mean the base rate staying at 5.25% until mid-September at least.

In very simple terms, the Bank is concerned that lowering interest rates too soon could see inflation rise again - as there would likely be more spending in the economy and when that happens, prices tend to go up.

On wages, there was a discrepancy between the public (6.4%) and private sector (5.6%).

Meanwhile, the rate of UK unemployment remained unchanged at 4.4%.

King also noted the inactivity rate had fallen from 22.3% to 22.1%.

ByJenness Mitchell, Scotland reporter

"Because of the price you think it's going to be crap, but it's not," says Star Bar patron Christine Hill, 58.

The Star Bar is located in Glasgow's southside on Eglinton Street, where words like this are as good as any five star review.

The pub has plenty of those, to be fair - and its legendary three courses offer has been running for decades, attracting as many customers as staff can manage every day.

Paul Marletta, who runs the pub alongside sister and business partner Giovanna Marletta, inherited the bar 39 years ago when it was just £1 for a three-course lunch.

These days it's £4, for which you get a starter, main and dessert - or you can pay an extra £1 to upgrade your main to premium range dishes such as breaded fish and chips, mince/potatoes/vegetables, or ashet pie.

Mr Marletta, 65, told Sky News: "We've got a lot of faithful customers. A lot of them come in here seven days a week for their lunch.

"There's different variations of busy, but we're never quiet. We don't really advertise because we don't have to advertise. We're as busy as we can get."

The lunch deal is featured on small promos on the outside, with new customers often surprised after taking a chance on the meal deal.

Mr Marletta said: "Many think, 'If it's that cheap, it's probably crap', but they leave having loved the meal.

"And they always come back, and that's why we don't have to advertise because our product speaks for itself. There's nothing in here that I wouldn't eat myself."

Mr Marletta said the bar's success lay in the suppliers that provide quality goods at affordable prices, which he then passes on to his customers while maintaining a profit margin.

He singled out his small group of hard-working staff, explaining that if more people worked at the bar he'd have to put up prices.

He described manager Andrea Purdie as his "right-hand" woman.

Mr Marletta said: "The customers all know Andrea, who's a personality in here. Me, not so much. I'm the grumpy one. My staff have got a good vibe."

During our visit, former taxi driver John Burke told us he would often see the promo while driving past during work and vowed to visit the bar on his retirement.

Since the turn of the year, Mr Burke, 66, travels from North Glasgow every week to enjoy a pint and lunch.

Customer Christine Hill, 58, has enjoyed the traditional lounge's hospitality for the last 40 years.

She said: "Because of the price you think it's going to be crap, but it's not."

Of course, we couldn't visit without trying the famous three courses ourselves - so what was it like?

First up came a hearty broth, piping hot and perfectly seasoned. This is the bowl before I cleared it...

I chose the fish and chips, upgrading to the £5 menu, not knowing what to expect, but the fish tasted fresher than you get in most places and was flaky, and the breadcrumbs were crunchy. You get chunky chips, mushy peas and salad too - which again I cleared and if I was looking for a light lunch I would have been done. But what kind of life is that?

I'm not really a fan of Italian fruit sorbet palate cleansers, and was relieved when a nostalgic bowl of jelly and ice cream slid onto my table next.

It's pretty remarkable they can knock this out for £5 - other pubs in the city would get away with charging at least £5 for the soup alone and at least double for the fish and chips.

Kudos to chef Ally Alexander - but it wasn't just about the food. A visit to The Star Bar is an experience in its own right, from the warm welcome and friendly pub chat to the affectionate hug goodbye.

They really don't need reviews, but if they did, they'd get five stars from me.

*Probably... but do tell us in the comments section if you know of cheaper

A pet food made with lab-grown chicken has been approved for sale in the UK.

Meatly has become the first company ever to secure approval to sell its cultivated meat products in Europe.

The UK-based business described it as a "huge leap forward for the cultivated meat industry".

It plans to launch the first product samples later this year, it said, before turning its focus to reducing costs.

It added it had already "secured brand partnerships and production of its products with leading pet food brands".

Alongside the approval requirements, it said it had carried out testing to show the lab-grown chicken was "free from bacteria and viruses".

It has also conducted tests to prove "the final chicken product is safe, nutritious, and free from genetically modified organisms, antibiotics, harmful pathogens, heavy metals, and other impurities".

Meatly CEO's Owen Ensor said: "Today marks a significant milestone for the European cultivated meat industry.

"We are proving that there is a safe and low-capital way to rapidly bring cultivated meat to market.

"Pet parents are crying out for a better way to feed their cats and dogs meat - we're so excited to meet this demand."

Would you give lab-grown meat to your dog? Let us know in the comments section