BUSINESS LIVE: the FTSE 100 climbs by 1%; Tax hike fears as energy prices skyrocket; Business leaders attack the PM; CMA says customers blocked by BA and Ryanair are not entitled to reimbursement
Soaring gasoline prices and rising inflation threaten to dig a hole in Rishi Sunak’s budget plans, which could force the Chancellor to raise taxes.
The cost of UK gas for delivery in November rose 40% yesterday, after a sharp increase over the past month caused by a shortage of gas entering Europe and the UK.
Last night, industry bosses accused Boris Johnson of putting Britain on the path to skyrocketing inflation as the Prime Minister escalated his battle with business.
The companies have warned that labor shortages – which have triggered empty shelves and queues at gas stations – will cause prices to spike unless the government steps in.
Britain’s competition watchdog, the Competition and Markets Authority, said on Thursday that a “lack of clarity in the law” means it is unable to ensure that customers of British Airways and Ryanair, which were barred from flying due to Covid-19 restrictions, can get a refund.
The CMA launched an investigation into the airlines in June, fearing they had broken the law by failing to offer refunds for flights customers could not legally take during lockdowns.
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Chancellor Rishi Sunak is under pressure ahead of budget as energy prices skyrocket