BUSINESS LIVE: BoE expected to hold base rate; Nationwide and Virgin Money deal formalised; Next profits jump

Britain is getting on top of its inflation problem. Headline inflation, at 3.4 per cent, is down, core prices (which exclude energy and food) are dropping sharply, service sector costs are in retreat and some fresh food prices are falling.

All of this before the Bank of England’s monetary squeeze has had enough time to work.

Next has kept its guidance for sales and profit in the current year after reporting a slightly better than expected 5 per cent rise in profit for 2023-24.

The group, which is often considered a useful gauge of how British consumers are faring, expects a pre-tax profit of £960million in 2024-25 on full-price sales up 2.5 per cent.

For the year to 27 January it made a profit on the same basis of £918million, versus guidance of £915million, on total sales up 5.9 per cent to £5.84billion.

‘On the face of it, the consumer environment looks more benign than it has for a number of years, albeit there are some significant uncertainties,’ Next said.

The group said it did not currently anticipate any material adverse impact from stock delays due to disruption to shipments through the Suez Canal

Nationwide and Virgin Money has formalised an agreement for the mutual’s £2.9billion takeover of the lender.

The deal will require the support of 50 per cent of Virgin Money shareholders, the pair said, having secured the agreement of 14.7 per cent of investors so far.

But it was confirmed that Nationwide members will not get a vote on the deal, despite recent pressure on the mutual.

Nationwide said: ‘The circumstances in which the approval of Nationwide’s members would be required in relation to the Acquisition are set out under the Building Societies Act 1986.

‘Having taken appropriate legal and financial advice, the Nationwide Board has determined that no such member approval is required.Accordingly, the Acquisition will not be subject to any condition relating to the passing of a resolution by Nationwide’s members to approve the Acquisition.’

The City watchdog has accused retirement advice firms of ‘not even getting the basics right’ in a scathing report that found some put clients’ futures at risk.

The Financial Conduct Authority (FCA) has written to chief executives, asking them to review and improve retirement income advice services.

The Bank of England will at midday publish its decision on the direction of interest rates, with markets expecting the Monetary Policy Committee to keep base rate on hold at its current level of 5.25 per cent.