Bleak economic outlook continues, plus Beckham in Qatar row

Meanwhile, Ryanair chief Michael O’Leary has warned the aviation sector won’t recover fully from Covid until at least 2025, while David Beckham faces criticism for promoting Qatar in the run-up to November’s World Cup.

Here are the key national news headlines concerning travel on Wednesday 31 August.

Food prices see fastest rise for 14 years

Food prices rose at their fastest rate since 2008 in August - up 9.3% after a 7% increase last month. The figure comes from the British Retail Consortium (BRC) and NielsenIQ index, which blamed the Ukraine war and its effect on the price of animal feed, fertiliser, wheat, and vegetable oils. (Sky News)

Pound sinks to two-year low amid recession warning

The pound tumbled to a two-year low on Tuesday and the cost of borrowing surged as Ryanair’s chief executive Michael O’Leary warned that a “deep, dark recession” is looming over households and businesses. Sterling fell 0.7% to $1.16 against the dollar, the lowest since the start of the pandemic in March 2020. (The Telegraph)

Credit card borrowing soars

Credit card borrowing has risen at its fastest rate in 17 years as Britons are expected to borrow £100 billion to cope with the cost of living crisis. The Bank of England monthly report showed annual growth of 13% in card borrowing in July, its highest since October 2005. (The Independent)

No recovery until 2025, says O’Leary

The chief executive of Ryanair has conceded a full recovery in the aviation industry will not now be seen until 2025. Michael O’Leary also admitted rapidly rising fuel costs and inflation mean the era of Ryanair offering seats at less than £10 is over for now, indicating £29.99 is the new £9.99 for its cheapest fares. O’Leary claimed his carrier would soon become Britain’s biggest airline. (The Times)

Scottish economy to slow with fewer workers

The Scottish economy will grow more slowly than the UK average for the next 50 years as the population declines and there are fewer people of working age. The Scottish Fiscal Commission suggested that by 2072 there would be about 4.6 million people in Scotland, about 900,000 fewer than today, due to shrinking birth rates. (The Times)

Beckham faces Qatar criticism

Football legend David Beckham is facing a backlash from Amnesty International for gushing about Qatar in a slick new video to promote the despotic Middle Eastern state. He called it “perfection” even though it remains illegal to be gay and women still need permission to study or marry in the Gulf state. (The Daily Mail)