here is our economics correspondent andy verity.lation, but last month, it dragged it down. between may and june, the cost of fuel dropped by more than a percentage point. and, instead of edging higher, as many expected, inflation generally fell back from 2.9% to 2.6%. one of the biggest elements that held inflation down was culture and recreation, everything from theatre tickets, to sports tickets, to video streaming on the internet. and another big downward pressure came from these — cheaper tablet computers. this afternoon, the governor of the bank of england gave his reaction to the figures. i think the first thing is, one doesn't want to put too much weight on any specific data point. the bigger picture remains the same. the reason why inflation is above the 2% target is because of the depreciation in the pound, following the referendum, or associated with the referendum. and that's a judgement of the market. we'll see in the fullness of time whether that judgment is right, but it's a judgment of the market, about the relative

andy verity, bbc news.s "shattering" their visit to a former concentration camp, as part of their five day tour of poland and germany. the royal couple met holocaust survivors at stutthof, near gdansk, where 65,000 people were murdered in world war ii. our royal correspondent, peter hunt, has more. poland, a country with a troubled past, provides presidential style security for visiting royal dignitaries that leaves little to chance. part of that past is captured here at stutthof, a concentration camp, turned museum, with evil on display, the shoes of those murders. it's an education for all visitors. with two survivors, tens of thousands perished, the duke and the duchess paid their respects at the camps jewish memorial and reflected. "what the nazis did", william and kate wrote later, "was a terrible reminder of the cost of war." they described their visit as "shattering." in what was a friendless, soulless place, as teenagers, manfred and zigi, formed a friendship for life. they walked out of these death

andy verity, bbc news.ftermath of last month's fire at grenfell tower exposed social inequalities in the borough, in particular the kind of affordable housing offered to those on the lowest incomes. most councils have a statutory duty to offer half of accommodation in all new large buildings projects as social housing. but bbc news has found that the council where grenfell tower is located — kensington and chelsea — agreed that developers could give them nearly £50 million instead of building the required social housing last year. and as michael buchanan reports, the council is far from alone in doing so. a rarely seen view of one of britain's richest areas. the kensington and chelsea, like everywhere else, does have social housing, just not enough of it. this person is currently living in a local hostel, desperate for a home. i have tried to get a house for two yea rs. i have tried to get a house for two years. it is just impossible to get any sort of housing. i have tried so many times, and theyjust any s

larocca and bob, westminster. 0ur economics correspondent andy verity is at the department of work andou are under 47 on the face of it, this seems like a bad day? if you are under the age of 47 oi’ day? if you are under the age of 47 or above the age of 38, because if you are 38 or younger, this was already happening. it's just that half generation in between those being —— born between april 1970 and april 1978 who thought they were going to be able to draw their state pension at the age of 67 until today when they found out it would be closer to 68. against that, the government said, yes, but that generation will live longer, so they will draw their late pension for longer than today's pensioners and end up with a bigger benefit on their state pension. 0n the other hand,it their state pension. 0n the other hand, it is also the generation who has been paying for austerity. there are incomes have stagnated and they are incomes have stagnated and they are bearing the brunt of cuts to working age benefits whilst pensioners benefits aren't really being cut at all. the generational contra

our economics correspondent andy verity reports.carpet factory in kidderminster has been stepping up production to meet growing demand, with orders up 30% from one year ago. the devaluation of the pound before and after the brexit vote pushed up the cost of importing wool to make the yarn that goes into its carpets. with higher wage costs, it can't trim much from its production process. so it's moved its product upmarket, and convinced retailers it's worth paying a little bit more for its designs. our prices have had to go up. we've increased prices by around 2% this year. and that's been a natural consequence of increased wage costs, yarn costs and energy costs. we have had to pass that on to our customers. by and large, customers don't like price increases in a time of economic instability, i suppose, the uncertainty that we're facing at the moment. but there's also an understanding that that has to take place. higher costs of imported raw materials caused by the drop in the pounds value is still feeding through to prices. 11 mont

more details from our economics correspondent andy verity. tackling exploitation at work, clarifying removing distortions in the labour market created by the tax system, those are the ambitious goals of the review of the ambitious goals of the review of the world of work by the government. matthew taylor says the economy has created a record quantity ofjobs. too often, they are not good jobs. the bad work, insecure, exploitative, controlling, is bad health and well—being, something that generates cost of honourable he people, but also the wider society. as the world of work changes, our factors is and laws must properly reflect and accommodate those changes. because good work is in the interests of good business. these licensed cabs really are self—employed, they own their cars and get work from anyone that books them. what would change that, as if they were controlled and supervised bya they were controlled and supervised by a company? report says, in that case, that company should pay benefits, like sick pay and holiday pay, and pay national insurance, as if they were employees. th

andy verity, bbc news.s chief brexit negotiator michel barnier has said britain must recognise the existence of its financial obligations to the eu. yesterday, the foreign secretary borisjohnson suggested the eu could "go whistle", for what he described as "extortionate" financial demands. at a news conference in the last hour, monsieur barnier said he cannot hear any whistling, just the clock ticking. let's talk to our brussels reporter, adam fleming. michel barnier showing some frustration with britain, adam? yes, he was his usual unruffled self, unlike me in the wind in brussels this afternoon, but there was a bit of frustration from what he sees as the fact that the uk site has not been as transparent and open as he has in terms of what their actual position is on a range of issues, mr barnier pointed out his side has published lots of papers covering lots of different areas of the brexit negotiations. he repeated his criticism of theresa may's proposal for the rights of eu nationals living in the uk af

that andy verity there for us at westminster.ckled and booed tonight while addressing survivors and local residents. elizabeth campbell replaced the previous council leader nick paget—brown, who resigned in the wake of the tragedy. wyre davis has the details. protesters outside the first full meeting of kensington & chelsea council since the grenfell disaster. inside the new council leader, elizabeth campbell, trieded to assert her authority and legitimacy after her redcressor‘s resignation. ina chamber after her redcressor‘s resignation. in a chamber full of sceptical survivors, many of whom in temporary accommodation. we are talking to each and every one of you who have lost your home. we are working with you to fully understand your needs and we will keep an open mind and show flexibility and sensitivity to your preferences. from those survivors who spoke, desperate stories of anguish and guilt about the friends and relatives who died on the 14th june. in the friends and relatives who died on the 14thjune. in front of an almos

andy verity, bbc news.e talking to matthew taylor, the author of that report, in an hour. that's at 7:10am. theresa may will make her first big speech later this morning since being re—elected as prime minister injune. her party is coming under pressure with no outright majority, and yesterday conservative mp anne marie morris was suspended after a recording emerged of her using a racially—offensive term. our political correspondent chris masonjoins us now from westminster. chris, an important morning for the prime minister. but will this fresh controversy affect the tiny majority she is clinging onto? yes, good morning. the whole perspective that the prime minister hoped to focus on today is exactly what we've been hearing about, this report into working conditions and taxes and national insurance and all the rest of it as the economy changes. but instead all of the focus was already on the prime minister and herfuture focus was already on the prime minister and her future and the extent to which there is

our economics correspondent andy verity reports.is carpet factory in kidderminster has been stepping up production to meet growing demand, with orders up 30% from one year ago. the devaluation of the pound before and after the brexit vote pushed up the cost of importing wool to make the yarn that goes into its carpets. with higher wage costs, it can't trim much from its production process. so, it moved its product upmarket, and convinced retailers it's worth paying a little bit more for its designs. our prices have had to go up. we've increased prices by around 2% this year. and that's been a natural consequence of increased wage costs, yarn costs and energy costs. we have had to pass that on to our customers. by and large, customers don't like price increases in a time of economic instability, i suppose, the uncertainty that we're facing at the moment. but there's also an understanding that that has to take place. higher costs of imported raw materials caused by the drop in the pounds value is still feeding through to prices. 11 mo

andy verity, bbc news, kidderminster. some breaking news coming into us from south wales. is saying that it's actively searching for a casualty, after the building collapsed near a railway line. that is in cardiff. special urban rescue crews are at the scene atan urban rescue crews are at the scene at an old church. a spokesman for south wales fire service is two other casualties herself rescued. limited train services are running between cardiff and newport after services were initially suspended because of scaffolding on the track. south wales fire service said one person is being looked for, is in the middle of a collapsed welding, near a railway line in cardiff. any more and we will bring it to you when we get it. theresa may has told conservative mps to end what she called the ‘backbiting' over disagreements within the party. at a reception in the commons last night, the prime minister warned that the alternative to her in number 10 was jeremy corbyn. and, at cabinet this morning, mrs may is believed to have reminded ministers to keep their discussions private. 0ur ch

andy verity, bbc news, kidderminster. with me now is ben bland. andy's report, inflation makes importing more expensive. the cost will pass on to shoppers like you and me. that is why inflation is expected to continue to rise. it is worth pointing out prices are going up worth pointing out prices are going up butjust worth pointing out prices are going up but just not worth pointing out prices are going up butjust not as quickly as they did in may. wages aren't keeping up and that creates its own dynamics. it's the cost of living squeeze. wages on average are only increasing at 2%, whereas prices are increasing at 2%, whereas prices are increasing at 2.5%. that is outstripping what we are taking home. the government has been told it must stop this living squeeze. many living people are caught in a bias, britain needs are caught in a bias, britain needs a pay rise across the public and private sector. the treasury says, while it is encouraging that inflation is low, we appreciate that some families are worried about the cost of living which is why

andy verity, bbc news.conomist at axa investment managers. 0ur our new supplies by this? we were, a bit. we thought it would stay stable at 2.9% notwithstanding the fall in fuel prices, so this falling back to 2.6% was a bit of a shock, but we will see how that pans out. the broad trend has been up and expected to go up in the coming months and thatis to go up in the coming months and that is the main story and the main take. what we think the factors were, in this drop, just fuel, and so on? as the report said, the inflation figure fell back because of pump prices and the impact on recreational prices. that is why it fell. why we were surprised by it was different. we broadly anticipated these falls but we expected to see food prices rise to offset it and a faster rising transport services costs but actually what we saw in june was falling food prices and non—airfare transport service costs also falling back. that didn't provide the offsetting factor so that is why the overall number came in softer. what a

andy verity, bbc news.policy, at the institute of directors, which represents thousands of businesses. were you expecting this fall in inflation? no, we were surprised as many economists were at the figures indicating there has been a reduction in inflation but at the same time wages are continuing to lag behind affecting consumer spending, fuel costs reduced and that will be of that too many consumers and businesses. at the same time, food and household goods have increased and that has an effect on the purchasing power of ordinary workers then that will have a knock—on effect for the economy and businesses. do you think this drop isa and businesses. do you think this drop is a one—off, the general trend is growing inflation? economic consensus is it seems to be a bit of a surprise which might indicate things will go back to the path that was expected previously. today's results suggest one of the positive benefits is inflation will be slightly less overall over the course of the year than anticipated whic

andy verity, bbc news, kidderminster.iness presenter ben bland explained more about the steady rise of inflation since 2015. it accelerated after the brexit vote lastjune, in part because of the wea k lastjune, in part because of the weak pound. it makes importing goods from abroad more expensive. if companies face higher costs, they will pass that on in the shops to shoppers like you and me, so that is why information was expected to continue rising steeply. it's worth pointing out, prices are still going up pointing out, prices are still going up but not as quickly injune as they did in may. wages are not keeping up with this, so that creates its own dynamic. exactly, and that's what people mean when they talk about the cost of living squeeze. they talk about the cost of living squeeze. if inflation is running at 2.6%, prices increasing about rate but wages on increasing at 2%, then prices are outstripping what we are taking home. that has prompted the trade unions congress, in response to this data, to say the governme

andy verity, bbc news.cause it says the companies which manage the gas and electricity grids and local networks have been allowed to charge people too much, even though their prices are controlled by the energy regulator, ofgem. here's our business correspondent, theo leggett. pylons and pipelines. the cost of transporting electricity and gas makes up a quarter of our energy bills. these networks are looked after by national grid, along with a number of local network companies. because they don't face any competition, the prices they can charge are vetted by the regulator, ofgem, and approved for an eight—year period. but citizens advice estimates that, during the current period, which we are halfway through, the network companies will make too much money — £7.5 billion of excess profits. so they want each household to get a rebate of £285 to be deducted from their bills. ofgem have overestimated the cost of investment and borrowing. for example, interest rates have not been as high as they expected. they h

overhaul of employment law with new guarantees on the minimum wage. 0ur economics correspondent andy verity by the task. that flexibility suits him, but if it isa that flexibility suits him, but if it is a slow day for takeaway is or he is stuck in traffic, it is he that loses. if you work around ten hours, we can do around £150. but when it is a slow day, we do around 70, working for ten or 11 hours. sometimes we spend, like, two hours to get onejob, to get sometimes we spend, like, two hours to get one job, to get £3 50. it sometimes we spend, like, two hours to get onejob, to get £3 50. it is not good when it is not busy. to get onejob, to get £3 50. it is not good when it is not busym to get onejob, to get £3 50. it is not good when it is not busy. if he gets sick or has an accident, he might also have an income, but tomorrow a review is expected to classify workers like him not as self—employed but as dependent contractors, entitled to be paid at least the minimum wage. the big fear of digg economy companies like deliveroo is they might have to pay workers online, rather than doing wor

andy verity, bbc news. now on bbc news, it is time for newsnight.gainst the odds and against the experts, he managed to go from this... let's go, ladies! ...to this. and this week, he passes the six—month mark. we look back to ask — is he as bad as his critics feared, or as good as his supporters hoped? has he settled into the job as a more conventional president, than he ever was as a candidate? we'll examine the record so far on domestic and foreign policy, and look at how the white house has been working. also tonight, banks beware — is consumer borrowing about to blow over the economy? it is an amber warning light for us. ourjob is to make sure the lenders are safe and the main risk to the wider economy comes through the lenders rather than the borrowers. and the allegations against r kelly. # bounce, bounce, bounce...# he's been dogged in the past by stories of underage sex. now he's accused of running some kind of abusive cult. we'll hear from the reporter making the claims. some never thought he'd make it this far, but donald trump is still p

with me is our economics correspondent andy verity.fected by this change potentially. explain to us the thinking behind it. it's about tackling an underlying problem which is that we are living longer so if you have a pot of pension money to spend on pensions for the time that you are retired, that part is spent more thinly now, either you have your pension incomes per year you have a much bigger pot and what the government is saying is it is unfair to ask future generations, children, grandchildren, those who are not born yet, to pay higher burden of taxes to finance over retirements which seem to be getting longer and longer as we live longer. instead, the government believes it is fairer to raise the state pension age so they are drawing a pension for a shorter time and that will be less ofa shorter time and that will be less of a burden on future generations but the generation affected by this, those born between april 1970 and april 1978, might well complain that they are already bearing the burden for example of austerity so they

overhaul of employment law with new guarantees on the minimum wage. 0ur economics correspondent andy verityid by the task. that flexibility suits him, but if it's a slow day for takeaways or he's stuck in traffic, it's him that loses. if you work around ten hours, we can do around £150. but when it is a slow day, we do around 70, working for ten or 11 hours. sometimes we spend, like, two hours to get one job, to get £3.50. it's not good when it's not busy. if he gets sick or has an accident, he might also have an income, he might also not have an income, but tomorrow a review is expected to classify workers like him not as self—employed but as dependent contractors, entitled to be paid at least the minimum wage. the big fear of gig economy companies like deliveroo is they might have to pay workers online, rather than doing work. there's a compromise being proposed where they're required to prove the workers could earn substantially more than the minimum wage in a reasonable time. the report is expected to say that if gig economy companies pay people by task, they have to show workers earn a

our economics correspondent, andy verity, reports.ten years, the economy's generated record numbers ofjobs and the lowest unemployment rate in nearly half a century. but according to the man who led a government—commissioned review, more jobs hasn't always meant more good jobs. in my view, there's too much work, particularly at the bottom end of the labour market, that isn't of a high enough quality and there's too many people not having their rights fully respected and there are too many people treated at work like cogs in a machine rather than being human beings and there are too many people who don't see a route from their currentjob to progress and earn more and to do better. the review will recommend that if someone is controlled and supervised, then they're classified as a worker, or dependent contractor, rather than self—employed. those workers may be entitled to benefits like holiday pay and employers may have to pay national insurance at 13.8%. that's broadly in line with a landmark court ruling in a case brought by this form

more details from our economics correspondent andy verity.e law, and removing distortions in the labour market created by the tax system — those are the ambitious goals of the review of the world of work ordered by the government. its author matthew taylor says the economy has created a record quantity ofjobs. too often, they are not good jobs. the bad work — insecure, exploitative, controlling — is bad for health and well—being, something that generates costs for vulnerable individuals but also for wider society. as the world of work changes, our practices and laws must properly reflect and accommodate those changes, because good work is in the interests of good business. these licensed cabs really are self—employed, they own their cars and get their work from anyone that books them. what would change that is if they were controlled and supervised, dependent on just one company. the report says, in that case, that company should pay them benefits, like sick pay and holiday pay, and pay national insurance, as if they were employees. the repor

with me is our economics correspondent andy verity. this will affect a lot of people?d between 39 and a7. anyone born after the 5th april 1970 or before 6th april 1978 will be affected. if you're younger than that, you were already going to retire at 68 anyway, that's the existing plan. if you're older than that, if you are born before 5th april 1970 well you can probably retire at 66 or 67. so it's that group in between which was going to be able to retire at 67 and will have to retire at 68 which is affected and it is quite an effect for them and the effect will be bigger, proportionately the shorter they live. if your life expectancy is short, a one year cut in the time which your state pension is being paid out is a bigger chunk. this will affect those who live shorter the most. that's a figure the government has in mind because the saving is what? well, the saving for the government is £7a billion. now, we have got to be clear what that means. that's money paid out over time compared with what it would have been had this announcement not been made. so, although pe

with me is our business correspondent andy verity.got to do something because there is a looming financial hole? pensions get paid between retirement and death. so the longer people live, if life expectancy grows, it means the same pot of jam has expectancy grows, it means the same pot ofjam has to be spread more thinly and because we're living longer and longer in order to maintain the same thickness ofjam, the same level of pension we are paying more and more. so there have been attempts to prune that. we have had the raising of women's state retirement date and the raising of both men and women's to 66 rather than 65, but it was planned that over the next 27 years they would phase in the raising of the retirement age from 66 to 68. now those born between april 19 # 70 and april 1978 have thought they would be able to retire at 67. after this announcement, it is more like 68. what is the government saving?m announcement, it is more like 68. what is the government saving? it is a huge amount. you are always talking big money with pen

more details from our economics correspondent andy verity.system — those are the ambitious goals of the review of the world of work ordered by the government. its author, matthew taylor, says the economy has created a record quantity ofjobs. too often, they are not good jobs. the bad work — insecure, exploitative, controlling — is bad for health and well—being, something that generates costs for vulnerable individuals but also for wider society. as the world of work changes, our practices and laws must properly reflect and accommodate those changes, because good work is in the interests of good business. these licensed cabs really are self—employed, they own their cars and get their work from anyone that books them. what would change that is if they were controlled and supervised, dependent on just one company. the report says, in that case, that company should pay them benefits, like sick pay and holiday pay, and pay national insurance, as if they were employees. the report says unequal tax treatment creates distortions. the government loses

andy verity, bbc news. we can speak to our assistant political editor norman smith.estion indeed. there are certainly a lot of enthusiasm as reports suggest today but so far from government there is no evidence that will be a legislation. we're hearing that mrs may want to sort of practices mr taylor is suggesting you see in the gig economy such as ensuring independent contractors can have access to holiday pay and sick pay and minimum wage. she was to see this spread throughout the gig economy. what is less clear is whether she will legislate to make this happen whether this will be a template of ideas which it is hoped companies will aspire to. the trades unions take the view that is not enough teeth in the proposals being outlined today and they point to the fa ct outlined today and they point to the fact that a number of big unions have already started legal action against some of those companies to try and when legally enforceable protections for people working in the so—called big economy. —— gig. given her very narrow commons majority, given the fact that the