Recently the new government has planned to cut public spending by £81bn in the next four years resulting in possibly 500,000 public sector jobs being lost. Many of these will need to find new work within the private sector http://www.bbc.co.uk/news/uk-politics-11579979 Many see the spending cuts as being worse off for the poorer, Tesco may need to rethink its strategy in relation to its Tesco Value range Tesco employs larger numbers of; student, disabled and elderly workers, often paying them lower rates. But a planned rise in the state pension age for men and women to 66 will start in 2020, six years earlier than planned, so Tesco may need to keep on elderly workers for a longer period of time. Economic
* The UK economy grew 0.8% in the 3 months to September, double what analysts were expecting, showing that the UK economy is recovering, may improve Tesco selling goods and creating jobs/stores http://www.guardian.co.uk/business/2010/oct/26/uk-economy-grew-in-third-quarter
* VAT will increase to 20% in January, many things in the UK will become more expensive, Chancellor George Osborne has promised “essential” items will remain VAT free. Tesco electrical goods such as TV’s will be effected as well as toys. http://www.bbc.co.uk/news/10373992
* Food inflation is effective the prices of goods in stores, for example, Ben & Jerry’s has recently broke it’s “psychologically important” £4 barrier and is now at a average of £4.18 over the last month in the four main supermarkets. As well as food, vegetable oil prices have risen by 23% over the last year. Food price increase is due to poor harvests in Russia and Brazil which resulted in a pushed up price on wheat and sugar as well as high demand for these items in China and speculators on the financial markets. http://www.telegraph.co.uk/foodanddrink/foodanddrinknews/8115590/Food-inflation-sees-Ben-and-Jerrys-break-through-4.html
* One of the most...