Households to face 'sharp fall' in living standards but no new taxes

There is also concern about the value of sterling, but prime ministerial candidate Liz Truss says she will not introduce new taxes if she enters Number 10.

Here are the key national news headlines concerning travel on Thursday 1 September.

Real incomes to fall by 10% in 2022 and 2023

British households are on course for the deepest living standards squeeze in a century, with real household disposable incomes expected to fall by 10% this year and the next. The Resolution Foundation said real earnings are falling at their fastest rate since 1997, meaning that by the middle of next year real pay growth since 2003 will be wiped out. (Sky News)

Sterling has worst month since 2016

The pound has recorded its steepest monthly decline against the dollar since the wake of the Brexit referendum against a backdrop of intensifying economic and political uncertainty. It fell 4.5% in August to $1.16 in the biggest monthly drop since October 2016. Sterling also declined by almost 3% against the euro. (Financial Times)

Pound ‘on crash course to new low’

The pound is on course to plunge to a record low against the dollar, driven by the UK tumbling into a tough recession, City economists warned today. Sterling will drop to $1.05 by the middle of next year, but could fall close to parity with the greenback, according to consultancy Capital Economics. (City AM)

Truss rules out new taxes

Tory leadership hopeful Liz Truss has ruled out introducing new taxes if she becomes prime minister. The foreign secretary also hinted she would look at providing further support to businesses and households with soaring energy costs. She also ruled out energy rationing. (BBC News)

‘Largest’ cruise ship could be scrapped

THE “world’s largest” cruise ship, which would have been able to carry 9,000 passengers is now set to be scrapped before its maiden voyage. Global Dream II, thought to be worth £900million, was destined for the Asian market and is nearly structurally complete, but builders MV Werften has filed for bankruptcy and the vessel must be removed from its yard. (The Sun)