The UK’s economic recovery accelerated in May as tourism and recreation firms reopened, but the delay in ending Covid-19 restrictions is putting hospitality firms at risk, research shows. Eleven out of 14 UK sectors reported faster growth in output month on month in May, up from nine in April, according to the Lloyds Bank UK Recovery Tracker, as the UK moved further out of lockdown. – Guardian
The government should prepare for a jump in inflation this year that will eat into household living standards and force more low-income families into poverty, according to the Resolution Foundation. Inflation is on course to rise above 4% in the next few months as the economy opens up and consumers begin to spend some of the savings they have built up over the past 16 months, the thinktank says. Rising prices will squeeze average household incomes by £700 by the start of next year with low-income families among the worst affected, it forecasts. – Guardian
A summer season wiped out by new Covid variants and Britain’s strict travel rules will trigger a sharp rise in eurozone unemployment unless governments extend furlough schemes, economists have warned. Forecasters at HSBC predicted at least half a million furloughed workers will lose their jobs once the region’s wage support schemes are wound down but cautioned that figure could rise. – Telegraph
Treasury officials are drawing up plans for a pensions tax raid in the autumn to help pay for heightened public spending during the Covid pandemic, The Telegraph understands. Three different reforms to the way in which pension contributions are taxed are being considered amid pressure on the public finances, according to well-placed Whitehall sources. – Telegraph
The activist investor that has bought a big stake in Aviva has defended its approach to overhauling companies days after calling on the FTSE 100 insurer to hand billions to shareholders. Cevian Capital said it tried to work constructively with the bosses of businesses where it was pushing for change. Writing in The Times today, Harlan Zimmerman, senior partner, said it “aims to create value that is shared with all shareholders and stakeholders”. – The Times
