Money blog: Pound surges to high against euro not seen since Brexit (2025)

The single busiest day for supermarkets this year is expected to be 23 December, market research company Kantar has predicted.

Supermarket sales also are expected to exceed £13bn in December for the first time ever, it said.

"Monday 23 December is likely to be the single busiest day for supermarkets this year, although shoppers are already preparing for Christmas," Fraser McKevitt, its head of retail and consumer insight, told Retail Gazette.

"We've seen sales of assorted sweet biscuits and biscuits for cheese double in November, and 8% of consumers have already purchased a Christmas pudding."

Hundreds of Harrods workers have voted to strike over the Christmas period in a dispute over pay and benefits.

Employees represented by the United Voices of the World union will walk out from 8pm on 20 December to 22 December, and again from 12am on Boxing Day to 9.30pm after 95% of the union's members voted in favour of the strikes, disrupting key shopping days.

The union said the workers had "no option" but to vote for strikes as Harrods' management had "refused to engage with or even recognise their union for negotiations".

Alice Howick, a Harrods waiter and union member, said this was a"momentous result" and demonstrated "just how ready we are to fight for what we deserve".

"As one of the world's leading luxury department stores, Harrods should be setting the standard for retail and hospitality workers," she said.

"Instead, we are earning the living wage and denied basic benefits such as a food allowance and Christmas bonus - something which should be commonplace in a company accumulating millions of pounds in profit year on year.

"Striking is a last resort for us and will only happen if Harrods continues to be unreasonable in responding to our demands."

A Harrods spokesperson told Sky News they "recognised" the contribution made by colleagues and they had "ongoing" and "open communication" with staff.

"Those that have voted to strike, which amounts to 176 employees (approximately 10% of colleagues collectively in these specific affected areas), are a fractional minority of our workforce and we have contingency plans in place over the Christmas period to ensure our services are not disrupted by this planned action," they said.

They added: "We are committed to working with our colleagues directly to address concerns, as we have been to date and continue our constructive relationship with our recognised unions on pay and benefits.

"UVW is not a recognised union by Harrods and therefore we do not engage with this organisation on our policies."

By James Sillars, business and economics reporter

Not since the Brexit vote of 2016 has the pound hit such a closing high versus the euro.

The milestone was achieved at the end of US business on last night, with a pound netting €1.2134.

A stronger UK currency is better news for those going abroad, as their pounds will go further.

But what's behind it?

There are several factors at play here. To understand them, we have to understand the reason for the eight-year wait.

The pound tumbled when the UK voted to leave the European Union. It was seen by financial market investors as an act of self harm.

While the UK economy has largely kept pace with that of the EU, in percentage growth terms, in that time the pace of growth has remained weak.

Progress has been disrupted by successive shocks such as COVID and Russia's invasion of Ukraine, which gave birth to the cost of living crisis.

That pain has been felt across Europe, so the pound's recovery versus the single currency has been held back.

If we fast forward to today, the UK is arguably weathering economic pressures better than the euro area as a whole.

The European Central Bank has not been cutting interest rates at pace because inflation has been fully tamed this year.

It has been cutting rates because its collective growth is stalling at an alarming rate.

You have political crises in the two main economies of Germany and France, which are hurting domestic demand.

Germany, for its part, is feeling particular pain because its usually powerful manufacturing export base is suffering. Weak orders amid China's slowdown and competition from Beijing, in areas such as green technology, has hammered its car industry.

The Franco/German-led slump is a major reason why the ECB is predicted to impose its fourth rate cut of the year tomorrow. By making borrowing costs cheaper, you encourage economic activity. It will also have an effect of weakening the euro, making orders from abroad more attractive.

The UK's central bank is not expected to follow suit next week.

The Bank of England is tipped to keep Bank rate on hold, after two earlier cuts, because inflation is on the rise and proving stubborn to eradicate.

Higher interest rates are supportive of a domestic currency's value because they tend to raise investor returns on assets such as government bonds.

The opposite is true when interest rates are cut by a central bank.

The outlook for UK rates and the political and economic drags at the top of the eurozone have led some analysts to speculate on a big recovery for sterling during 2025 - even versus the dollar.

But the UK currency still has work to do to recover its pre-Brexit levels.

It stood at €1.32 and $1.50 before the vote to leave the EU.

We've covered the rise in shoplifting in the UK extensively in Money, with figures showing a 29% increase in theft inEngland and Wales in the year to June.

With shoplifting statistics remaining a concern, this week it emerged a police unit launched to crack down on shoplifting had arrested 93 members of 28 organised crime gangs behind more than £4m worth of thefts.

The national team also identified 228 previously unknown offenders and 70 vehicles involved in retail crime in the seven months since it was launched, according to the National Police Chiefs' Council.

Police say it's the first time officers have mapped the gangs targeting shops and supermarkets around the country to see where they're operating.

Read more here:

Brighton residents have more spare cash than people in any other British city, according to new research.

Those living in the Sussex city have an average of £1,315 a month in disposable income, spending 45% of their income on bills and outgoings thanks to high wages and lower costs, according to MoneySuperMarket's Household Money Index (HMI).

Across the country, the average person has £836 left to spend after paying for expenses - that's up £195 since this time last year.

However, as seen by the Brighton figures, this varies significantly depending on where you live.

In Belfast, people have £1,104 in disposable income a month, or 49.45% of their earnings.

Nottingham was found to be the cheapest city to live in terms of daily outgoings, with residents spending £32.70 a day on bills and other expenses, leaving them with £1,055 spare a month.

Here's a look at how some of the country's other major cities fared...

The index found that cities in the south of England typically associated with a higher cost of living - such as London, Southampton and Brighton - have all fallen below the UK average proportion of income spent on bills and outgoings, which is 62%.

At the same time, northern cities Manchester, Liverpool, Leeds and Sheffield have all risen above the UK average.

The report states that there are indications that a "wider gap in disposable income" now exists when compared to previous indexes.

"The HMI paints a more nuanced picture of where in the UK is best to live in terms of value for money as bills continue to rise - veering away from a more typical North-South divide," it said.

The index tracks how much people are spending on 31 bills and daily outgoings on a quarterly basis.

The data is calculated from the replies of 10,000 adults self reporting how much they spend per average month across five surveys carried out between August 2023 and August 2024.

Each Wednesday, we ask top chefs around the UK to pick their favourite budget eats where they are and at home. This week we're speaking to Sally Abe, owner and chef at The Pem in Westminster...

Pick three places in London to get a meal for two for less than £40

Dom's Subs -That Spicy D has three types of meat, cheese and chilli, what's not to love. Washed down with a fresh cucumber seltzer, a grade A lunch.

Lanzhou Noodles - This place is open until 3am, so is a perfect after service (or after the pub) spot in central London. I always order the dan dan noodles, which are freshly made to order, and one of the giant spring rolls.

Putney Pier Fish and Chips - Classic, cod chips and curry sauce (I'm from the Midlands so that is the go-to). It's a two-minute walk from the river, so lovely to go and sit on a bench and watch the world go by.

Tell us your go-to cheap eat to cook at home when you have a night in

My go-to cheap eat is san choi bao. It's super quick, easy and cheap to make. This was a dish that I always used to make for staff meals as a more junior chef.

Brown pork mince off with garlic, chilli and ginger, then season with soy sauce and lime juice, mix through vegetables such as pak choi and bean sprouts, then top with spring onion and coriander.

Cook some white rice separately, then mix through the pork mince.

Spoon into iceberg lettuce leaves and roll up.

You can check out Sally's book A Woman's Place Is In The Kitchen here.

We've spoken to lots of top chefs - check out their Cheap Eats from around the country...

An American restaurant chain known for its mouse mascot, pizza and arcade games is looking to launch in the UK.

Chuck E Cheese confirmed to The Caterer that it had identified the country as a "key target market".

The chain, which operates nearly 600 child-friendly restaurants in 16 countries, is looking at locations in Glasgow, Leeds, Manchester, Milton Keynes, Birmingham and Bristol, reports have suggested.

Earlier this year, another US based restaurant, Dave's Hot Chicken, opened its first site in the UK, and Chick-fil-A has announced plans to launch here next year.

Money has contacted Chuck E Cheese for comment.

The global airline industry is expected to see record revenues next year - but it will only make an average of $7 per passenger, a leading official has said.

Willie Walsh, director general of leading trade association IATA, says revenues are predicted to reach $1tr for the first time, but warned that profitability would still be "wafer thin".

"It's great news and a great figure. However, when you look at the bottom line, the net profitability of the industry remains wafter thin at about $36.6bn," he said.

"Again, that is a big figure but in margin terms that represents a margin of 3.6% so these are very, very small margins."

IATA's chief economist Marie Owens Thomsen added: "Profit per passenger for the industry as whole is predicted to be $7 per passenger in 2025 so it's obviously a ridiculously small number."

But, this is not spread evenly across the world, she added.

In the Middle East, companies are expected to make $24 per passenger, followed by $12 in the US and $9 in Europe.

Airlines in the Asia Pacific region, Africa and Latin America will make less than $7 - in some areas, it's predicted they will make $1 per passenger, Ms Owens Thomsen said.

Passenger numbers are also set to reach another all-time high of around 5 billion.

However, Mr Walsh warned supply chain issues, increasing airport costs and air traffic management problems will have a "huge impact" on the industry.

Cadbury's owner Mondelez International is reportedly exploring a potential takeover of chocolate maker Hershey.

The deal would create one of the biggest confectioners in the world.

Mondelez made a preliminary approach about a possible acquisition, Bloomberg News reported, with deliberations still in the early stages.

Shares of Hershey, which has a market capitalisation of about $35bn, rose as much as 19% to $208.03, while Mondelez shares were down about 4% in morning trading after the news emerged.

Chocolate companies as well as packaged food firms have been under pressure from rising input costs, especially cocoa prices, forcing firms to raise prices, which have in turn led to weakening demand.

Last month, Hershey trimmed its annual revenue and profit forecasts after its quarterly revenue dipped to nearly $3bn due to weak demand.

Meanwhile, Mondelez reported a near 2% rise in sales to $9.2bn in the latest quarter.

Money has approached Mondelez and Hershey for comment.

People will be able to use a digital ID to enter pubs and clubs from next year if a new data law passes.

Under the Data (Use and Access) Bill, which is going through parliament at the moment, people will also be able to use an app to prove they are over 18 when buying alcohol.

Some retailers already accept digital IDs for other age restricted products, but the law does not allow for people to buy alcohol.

One provider that could be verified by the government is digital ID app Yoti.

Chief executive Robin Tombs told Money the impact of the change will be "huge".

He predicted that within two years of the law change it is likely between 10 and 20 million people will use a digital ID.

"Ultimately, the new government, by deciding to make a very low effort, cheap law change, can deliver one of the biggest economic and convenience returns for UK citizens and businesses, all before the next election," he said, adding the the law "is very bad news for fraudsters".

Money has contacted the Department for Science, Innovation and Technology, and the Department for Business and Trade for comment.