Money latest: Easiest countries for Britons to retire to revealed (2024)

The International Monetary Fund has said the UK economy is heading for a "soft landing", but reiterated its message to Jeremy Hunt that he should not have cut National Insurance at the last two fiscal events.

In its annual check-up on the state of Britain's economy, the Washington-based Fund raised its forecast for gross domestic product growth this year from 0.5% to 0.7%, saying: "The UK economy is approaching a soft landing, with a recovery in growth expected in 2024, strengthening in 2025."

The Fund now expects inflation to come down to close to 2% in the coming months, and the Bank of England to cut interest rates by as much as three quarters of a percent this year, and then another percentage point next year.

The chancellor welcomed the Fund's Article IV report, saying: "Today's report clearly shows that independent international economists agree that the UK economy has turned a corner and is on course for a soft landing.

"The IMF have upgraded our growth for this year and forecast we will grow faster than any other large European country over the next six years - so it is time to shake off some of the unjustified pessimism about our prospects."

Government 'won't meet its debt target'

However, the IMF, which has warned the government explicitly in the past not to cut taxes too fast, in the face of rising spending projections in future, said the two 2p National Insurance contribution cuts at the last two fiscal events were a mistake.

"In light of the medium-term fiscal challenge", the report said, "staff would have recommended against the NIC rate cuts, given their significant cost."

The Fund's staff also believes the government is not on track to meet its main fiscal rule, which commits it to cutting the national debt in five years' time.

It believes net debt will carry on rising towards 97% of GDP in the following years, instead of falling back to 93% of GDP, as the Office for Budget Responsibility has forecast.

The Fund's double-edged report comes amid improving news for the UK.

Data released two weeks ago showed the country ended its short-lived recession with faster than expected growth in the first quarter of the year.

The Office for National Statistics is expected to announce tomorrow that inflation dropped close to the Bank of England's 2% target in April. That may enable the Bank to begin cutting interest rates from their 5.25% level in June or August.

Bank should speak more

The Fund's report contained a number of other recommendations for economic policy in the UK, including that the Bank of England should commit to more news conferences to explain its decisions, and that the government should consider imposing road charges to replace the revenue lost from fuel duty as electric cars become more predominant on UK roads.

For many Britons, retirement means moving somewhere new.

New analysis from relocation experts Property Guides has found the easiest locations for retirees, taking into account culture, visa requirements, cost and more.

Landing in the number one spot is Ireland, with a lack of visa requirements, English-speaking residents and relatively "safe and happy" environment.

Spain, Portugal and Cyprus claim the next three spots on the list.

However, Spain is high on the minimum annual income requirement.

"Spain's is one of the most expensive. It is currently around €27,000 (£23,000) per year for the first applicant. Just over the border inPortugal, it is less than €8,500 per year.Turkey'sis the cheapest, working out at a little over £5,000, while Italy requires over €30,000," Property Guides says.

Turkey also came out well for the low cost of living - unlike New Zealand.

European countries in general offer visas aimed specifically at those receiving pensions or investment incomes, according to Property Guides.

Commonwealth countries such as Australia and Canada, however, actively restrict those over 55 from moving there, even if they have a high passive income (income such as pensions, that doesn't require a job).

It becomes easier if retirees have children who are already legal residents.

"Golden visas", which encourage wealthy people to invest in a country, are becoming less common.

"Most countries are now cancelling their residential investment option, includingCyprusandPortugal, andSpainwill soon be closing its own. However, for now, you can still get one inSpain,GreeceandTurkey, for as little as a €250,000 property, and these we have judged the easiest to retire to."

Property Guides also looked at health services. They took rankings from a LegatumProsperity Index.

"Top scorers wereGermany, ItalyandFrance, in that order. Bottom of the pile was theUSA."

The research noted that state pensions are not uprated for retirees in Canada, New Zealand and Australia.

It also factored in "sunshine hours", with the top three being Cyprus, Portugal and the US. Ireland came last here.

By Sarah Taaffe-Maguire, business reporter

Good news for motorists: oil prices are at a more than two-month low at $83.08 for a barrel of Brent crude oil.

Lower prices will likely filter down to the pumps in about 10 days.

But it's not such good news for those in the Brixham area.

The parent company of South West Water - who supplies the Devon area - said 15% don't have normal service.

Shares in Pennon Group, which also owns Bournemouth Water and Bristol Water, fell 6.7% after it reported flat pre-tax profit - £16.8m was recorded for the 2023-24 financial year, the same as 2022-23.

That's despite shareholders being in line for a higher payout of 44.37p a share.

Drug maker AstraZeneca is one of the best-performing stocks on the FTSE 100 index of most valuable London-listed companies today.

After it announced it aims to double revenues by 2030, the share price rose 0.53%.

If you're buying dollars, you can get $1.27 for your pound or €1.17.

By James Sillars, business reporter

Grocery inflation has eased to its lowest level since October 2021, according to industry data released before official figures tipped to show a big dent in the overall pace of price increases in the economy.

Kantar Worldpanel - which tracks supermarket till prices, sales and market share - said its measure of grocery inflation slowed to 2.4% in the four weeks to 12 May from 3.2% the previous month.

The measure showed there is still upward pressure on the cost of items such as chilled fruit juices, drinks, sugar confectionery and chocolate confectionery - the latter a consequence of poor cocoa harvests.

Prices were still falling fastest in toilet tissues, butter and milk, the report said. It has previously pointed to wider assistance in falling costs from a price war among supermarkets.

Fraser McKevitt, Kantar's head of retail and consumer insight, said: "Grocery price inflation is gradually returning to what we would consider more normal levels. It's now sitting only 0.8 percentage points higher than the 10-year average of 1.6% between 2012 and 2021, which is just before prices began to climb.

"However, after nearly two and a half years of rapidly rising prices, it could take a bit longer for shoppers to unwind the habits they have learnt to help them manage the cost of living crisis."

Read more on this story below...

Airbnb has the highest percentage of scam-related reviews, according to new data.

8.5% of comments left on the holiday-let site warned about scams, travel payment website PayFasto said.

Trivago came in second with 7.5%, Hotels.com third with 6.5%, Myholidays in fourth with 6.1% and Booking.com fifth with 5.8%.

PayFasto says it is essential to do your research before booking a holiday online.

"Sometimes, if a deal looks way too good to be true, it often is," the company said.

"Make sure you do research on the site and make sure they have legitimate ways to contact them if you were in the position where you needed to. If the site has no contact options, then this is certainly a red flag. "

It also warned holiday-goers to look for the ATOL (Air Travel Organisers' Licensing) scheme on websites, which guarantees customers protection separate from insurance when booking a package holiday that includes a flight.

Sky News has contacted Airbnb for comment.

Basically, the FTSE (short for Financial Times Stock Exchange) is an index of the 100 largestcompanies by market capitalisation listed on the London Stock Exchange.

The index, operated by a division of the London Stock Exchange Group, is often referred to by its nickname "Footsie" and was created in 1984.

Among the companies in it are BP,HSBC, Barclays, Glencore and AstraZeneca.

Figures are reviewed every quarter. At each review some companies will exit and others will enter. Promotion and relegation, just like in league football for example, depends on performance.

The value figure presented in the evening is the closing value of the FTSE 100 for that day - representing the combined value of the top 100 companies.

How to invest in FTSE 100

You can buy individual shares of FTSE 100 companies via a share dealing platform.

There is stamp duty of 0.5% to pay on UK share purchases.

Once you've bought shares, you will need to keep track of the markets. If the shares you buy go up in value, you'll make a profit when you sell them subject to any fees.

Losses are only crystallised if you sell below the purchase price.

Tracker funds (open-ended investment companies or exchange-traded funds)provide the easiest way of investing in the FTSE 100.

Trading hours are Monday to Friday from 8am- 4.30pm.

Struggles

You may have read about the FTSE reaching record highs in recent weeks - but the London-based index is actually a relative laggard this year compared with rivals in the US, Japan and Germany.

Membership arguably doesn't hold the prestige it once did - and an increasing number of major companies are citing the fact they could be valued higher as a reason for snubbing London.

Shell last month indicted it could abandon the city for New York for this reason.

Is it the top British companies?

The index is chock-full of companies that have little or nothing to do with the UK - such as Fresnillo, a Mexican gold and silver miner; Antofa*gasta, a Chilean copper and gold miner; and Ashtead Group, a plant and tool hire company which derives £90 in every £100 it earns from the US.

Even companies thought of as British, such as BP, Rolls-Royce, BAE Systems, Shell and Diageo, the world's biggest scotch whisky and tequila producer, derive the vast majority of their earnings outside the UK. In fact, of the 20 biggest companies in the Footsie, only one - the Lloyds Banking Group - can be said to make most of its income in the UK.

For a better gauge of how corporate Britain is doing, investors are better off looking at the FTSE 250, the next biggest 250 listed companies on the London Stock Exchange and home to household names such as Bellway, Games Workshop and ITV.

Read other entries in our Basically... series:

Britons will, on average, pay £182.40 more a year for broadband and £94.80 for mobile after last month's hikes, according to research by Uswitch.

Price hikes in April mean monthly broadband bills have increased by an average £15.20 and mobile bills by £7.90, with customers who have stayed with their provider for more than five years being hit hardest.

Mobile customers across both pay-monthly and SIM only contracts who have stayed with their provider for eight to nine years paid an extra £13.20 on their mobile bill last month - a huge rise in comparison with the national average price increase of £7.90, Uswitch reports.

Those who switched their provider less than one year ago were the best off, with their increases averaging out at £6.70.

Similarly, broadband customers who stayed with their provider for seven to eight years paid an extra £22.10 this month - significantly more than the national average price rise of £15.20.

Those who switched less than one year ago paid 23% lower than the national average.

This Uswitch chart illustrates the numbers...

"Customers seeing these price rises can still take action," says Sabrina Hoque, telecoms expert at Uswitch.

"Your provider will let you know when your contract is about to end, so don't be tempted to ignore these emails when they come through. Run a comparison or ring your provider up and negotiate a better deal."

We are a nation of tea drinkers – we drink around 100 million cups a day and 70% of us say we'd choose tea over alcohol.

But, on International Tea Day, experts have told Sky News that Britons should be treating tea more like wine.

One key thing not enough of us are doing is checking the back of the packet to see which country our tea is coming from.

Tea is grown in more than 60 countries, with the UK getting most of its supply from East Africa. All tea comes from the same plant – the Camellia sinensis – but where it is grown can really affect its flavour.

Let us know your tea tips, or how you make yours, in the comments section

"The black tea that we tend to drink here are blends, so you could have tea from seven different origins in one bag," the chief executive of theUK Tea and Infusions Association,Dr Sharon Hall, told the Money blog.

"You might have Kenyan tea in there for that really good colour but you might also have teas from Assam in there to give it that really malty flavour which we as consumers love in the UK.

"Depending on where that tea bush is grown, whether it's up high in the Himalayas or down low, the tea leaves off that will really have a different flavour profile. It's just like wines," she added.

If you look on the packet, it should tell you the origins of the tea you are consuming.

According to the Teabackyard website, the following regions have these flavour profiles...

Assam. Assam tea growsin tropical lowlands in the Assam region in India, near the Brahmaputra River. This produces a malty, chocolatey flavour.

Ceylon. Ceylon tea is cultivated in Sri Lanka. Some tea plants are grown at up to 6,000 feet. The flavour is said to be spicy, chocolatey, and citrusy.

Kenyan. Kenya's black tea plants grow in lush green plantations located in lowland regions. This tea is often used in tea blends to provide a robust base because it is strong and full-bodied. It is a tea that almost needs milk to tame down its "bite".

Keemun. Keemun tea is grown only in the Anhui province of China. Some in China claim this was the first breakfast tea - and it is now used in tea blends too. It is a lighter-bodied black tea with a more delicate taste and isn't usually used as a base tea. Hints of smoky maltiness come through in flavour, with a subtle floral aroma.

Two teabags?

Dr Hall said two teabags was quite typical of the UK's habits, with the majority of Britons preferring a strong brew.

Despite this, data from the UKTIA shows only 7% of people brew their tea for the optimal 3-4 minutes suggested by many black tea brands, and nearly a fifth only leave the bag in for less than a minute.

Dr Hall insists tea hasn't become weaker, so if you are using two tea bags, it might be time to check the packet to see what your recommended brew time is and giving that a go to get the "optimal flavour".

"Really in terms of the flavour you get out of those blends, they are very brand specific, like a stronger black tea you might find a brand that delivers that. But in terms of strength, that is really to do with brew time and how you prepare your tea," she explained,

She said that for green tea, she might brew the bag for slightly less time, but she likes to leave her black tea for a good five minutes.

If you are still struggling to make the perfect cup of tea, Dr Hall suggests a key ingredient could be how you boil your water.

One element that she emphasised in particular is using a "smart boil" system to make your tea – basically, measure out the amount of water you need and only boil that amount.

Not only does it save you money, it also means there is more oxygen in your water which "excites the flavours out of the leaves", meaning it could help to make your tea more flavourful, she said.

Your favourite mug, adding the milk after the water, and taking five minutes to relax are also key, she said.

UKTIA has released its latest UK "tea census" today - here are some of the key findings:

• 70% of Britons are choosing tea over booze;
• The age group most likely to choose a cuppa over alcohol are30-44-year-olds (81%);
• 18-29-year-olds are more likely (72%) than 45-59-year-olds (64%) to pass up alcohol in favour of tea;
• Sweet biscuits are the most popular snack pairing (48%), followed by a chocolate biscuit, cake, a sandwich and chocolate;
  
• Britons' preferred types of tea are black tea (84%), green tea (60%), peppermint (46%), ginger (43%), chamomile (37%), lemon balm (22%) and spearmint (20%);
• Around 40% of people say putting on the kettle helps to encourage someone to open up, according to the UKTIA.

HMRC is reportedly using AI to recruit staff, with some not speaking to a human until their first day.

The hiring process for some junior roles - including customer service adviser - are being done virtually with candidates asked to send a CV and 1,000-word statement to an email address and then answer six questions from a pre-recorded video, according to The Sunday Times.

One current HMRC employee who went through the process told the newspaper it was "so daft and the questions themselves were waffle".

HMRC said that for entry-level roles, recruitment processes were automated to manage the higher level of applicants it received.

Ryanair has reported another year of record profits and passenger numbers.

At the same time, the average fare at the airline, which is Europe's largest by passenger numbers, was 21% more expensive than 12 months earlier, its annual results showed.

But the company suggested a cut in ticket prices could be on the way after this summer when prices will either be the same or more expensive than last year.

Annual profits reached €1.92bn (£1.64bn), surpassing the previous record of €1.45bn (£1.26bn) made in the year ending March 2018.

Read the full story here...

Business flights to and from the UK have decreased by nearly a thirdsince the COVID pandemic.

Data from the Office for National Statistics (ONS) and examined by the New Economics Foundationfound there were 29% fewer trips in 2023 than in 2019.

In total, businesses shelled out around £2.9bn less on air travel in 2023, a 22% decrease from four years earlier, according to City AM.

"Business use of air travel peaked in 2007 and has fallen further since the pandemic. Today, growth causes major damage to our climate while benefiting only a tiny group of airport owners and wealthy frequent flyers,"Alex Chapman, senior economist at the New Economics Foundation, told the newspaper.

The number of 56-65 year olds looking to buy their first home has grown by 13% in the first quarter of this year.

The average age of a first-time buyer is 33 - but 2.2% are now in the 56-65 age bracket.

This compares with 44.8% aged 18-30 and 35.6% aged 31-40, according to data from Legal & General.

Further analysis found the average loan searched for at the end of 2023 and beginning of 2024increased by 3.7% from £214,299 to £222,148, pointing to the fact buyers can afford larger loan values due to inflation dropping and monthly earning increasing.

Kevin Roberts, Legal & General Mortgage Services managing director, said: "Our figures show that the desire to own a home remains strong, even for those who are waiting longer to take those first steps onto the property ladder.

"As affordability begins to ease, we'll likely see further activity in the first-time buyer market, especially if inflation continues to fall and the Bank of England reduces its base rate later in the year."