Watch: National business news headlines - June 12 - video Dailymotion

Watch Watch: National business news headlines - June 12 - Insider Media on Dailymotion

Transcript

00:00Good morning and welcome to the latest Business Bulletin on Thursday the 12th of June.

00:04The UK economy shrank by 0.3% in April, the biggest monthly fall in 18 months.

00:10The drop, which is much worse than expected, is a blow to Chancellor Rachel Reeves.

00:14She admitted the figures were clearly disappointing but stood by her growth plan.

00:18Reeves says the government's investing in Britain's renewal to help working people.

00:23However, one think tank has warned Britain is morphing into a national health state.

00:27It follows the spending review, which gave the NHS a £29 billion boost.

00:32The Resolution Foundation says health now completely dominates public service spending,

00:37and by 2030, half of all such spending could go to the NHS.

00:42Meanwhile, the Chancellor is also facing criticism for a lack of investment in English councils.

00:48MPs warned the spending review fails struggling local authorities, including near-bankrupt ones.

00:53The Treasury plans to boost council funding by £3.4 billion a year by 2028,

00:59but critics say next year's real terms rise is just 1.1%, which is not enough to meet demand.

01:07UK house prices have soared by 74% in two decades, adding more than £150,000 to the average home.

01:14Zoopla says values rose from £113,900 to £268,200, pricing many out of their hometowns.

01:22London saw the biggest jump, with prices more than doubling,

01:26but growth was far slower in places like Blackpool and Sunderland.

01:30And finally, Tesco has reported stronger sales, despite fierce competition in the UK grocery market.

01:36Group sales rose 4.6% to £16.4 billion in the 13 weeks to May 24th.

01:43The supermarket says price cuts helped attract more shoppers.

01:47That's all for today. Thank you for listening.