In response to the rising cost of living, households are reducing their food purchases.
Due to increasing prices, nearly half of respondents surveyed by the Office for National Statistics (ONS) reported purchasing less food during the last two weeks.
According to the ONS, the price of food was also the most common reason why respondents’ overall monthly expenditures were increasing.
Asda and Tesco have reported that customers are reducing their purchases.
Asda said that some customers are requesting cashiers to stop scanning items when the total reaches £30 as a cost-cutting measure, and are also switching to cheaper product lines.
Tesco, the largest retailer in the United Kingdom, has reported early indications that shoppers are altering their behavior in response to rising inflation, such as purchasing less food and coming more frequently.
The ONS said that feedback from supermarkets indicated that customers were spending less on food purchases due to the growing cost of living.
It was discovered that supermarket sales fell 1.5% in May, while sales in specialty businesses such as butchers and bakers fell 2.2%.
Helen Dickinson, chief executive officer of the British Retail Consortium, stated, “Many customers are shopping down, notably with food, opting for value-range items where they may have previously purchased luxury goods.”
Overall retail sales decreased by 0.5% in May, according to the ONS, which also reduced its April sales growth forecast from 1.4% to 0.4%.
In the United Kingdom, prices continue to grow at the quickest rate in forty years, with inflation at 9.1%, the highest level since March 1982.
On Thursday, the RAC disclosed that the average price of a liter of petrol reached £1.90 for the first time, while diesel approached £2 per liter.
Bread, cereal, and meat prices rose in May, causing the most recent increase in inflation. However, fuel and energy costs are the largest contributors to inflation.
Sarah Coles, the senior personal finance analyst at Hargreaves Lansdown, stated that the “horror” of April’s enormous increase in energy bills “ate up a considerably larger portion” of household income and “restrained their purchasing appetite.”
She continued, “It’s not just the threat of even greater bills tomorrow and the fear of an approaching recession that might lead our finances to completely unravel that are causing us concern.
The most apparent proof of the impact of the rising cost of living on our household finances is the fact that we are eating less.
The fact that it is food, a requirement for everyone, demonstrates how daily life is affected, as opposed to fewer vacations or less socializing.
By autumn and winter, the attention may shift to individuals using less home heating. Nonetheless, whether it’s heating, dining, or both, consumers will continue to hunt for ways to minimize their expenditures.
The Pakistan Stock Exchange (PSX) plummeted shortly after Prime Minister Shehbaz Sharif imposed a 10% levy on large-scale enterprises on Friday.
The bourse remained unchanged for two hours following the opening bell. However, the market had a sharp decline at 11:40 a.m., with the KSE-100 dropping 1,598 points and falling to 41,100. At noon, the benchmark KSE-100 index fell 2,053 points or 4.8 percent.
According to the PSX Rulebook, if the index moves 5% above or below its previous close and remains there for five minutes, trading in all securities is halted for a predetermined period.
The benchmark index ended the day at 41,149.16 points, a decrease of 1,567.81 points (or 3.6%)
Raza Jafri, the head of stocks at Intermarket Securities, cited “huge taxes” as the explanation for the decline. He told that “The market has responded negatively because it will significantly impact company profitability.”
The Arif Habib Corporation’s Ahsan Mehanti concurred. “The PSX experienced huge pressure across the board when PM Shehbaz proposed a 10 percent super tax on industries for one year to close the budget deficit gap,” he said.
According to Khurram Shehzad, CEO of Alpha Beta Core, the corporate income tax and investment tax will now exceed 50 percent and 55 percent, respectively, as a result of the government’s latest actions.
This is not just the highest in this region, but the entire history of Pakistan. It is, in fact, one of the highest tax rates in the world,” he noted.
PM declares ‘super tax’ The prime minister declared a “super tax” on large-scale sectors, including cement, steel, sugar, oil and gas, fertilizers, LNG terminals, textile, banking, automobile, chemicals, drinks, and cigarettes, earlier today.
Individuals with a high net worth will also be subject to a “poverty alleviation tax.” Those whose yearly income surpasses Rs150 million are liable to a 1 percent tax, Rs200 million to a 2 percent tax, Rs250 million to a 3 percent tax, and Rs300 million to a 4 percent tax on their income.
The prime minister stated that the decision was made to protect the country’s underprivileged from growing inflation. “It is now time for wealthy citizens to do their part. It is their chance to demonstrate altruism. And I am convinced that they will play their part to the fullest.”
He stated that tax collection authorities should take from the wealthy and give to the poor. He regretted, though, that the “big ones” avoid paying tax.
PM Shehbaz emphasized that it was the obligation of the state as a whole, including himself, to ensure that tax revenues were deposited in the national treasury. “We have thus far been ineffective,” he added.
It is never too late, he remarked. Immediately following the passage of the budget, teams have been formed to aggressively collect taxes. We shall seek assistance from all constitutional institutions and deploy cutting-edge technology and digital technologies [for this goal].
According to numbers issued on Friday by the Office of National Statistics, sales volumes decreased by 0.5% in February as buyers reduced spending in supermarkets by 1.6% in response to rising prices.
According to numbers issued on Friday by the Office of National Statistics, sales volumes decreased by 0.5% in February as buyers reduced spending in supermarkets by 1.6% in response to rising prices.
In the three months leading up to May, retail sales decreased by 1.3%, extending a decreasing trend that began in the summer of 2021.
Aside from food purchases, sales volumes were unchanged. Clothing sales climbed by 2.2%, but sales of domestic goods, such as furniture, fell by 2.3%, and department store sales decreased by 1.1%.
In May, the volume of automotive fuel sales increased by 1.1% as more drivers returned to the roads and hybrid vehicles became more widespread.
Helen Dickinson, chief executive officer of the British Retail Consortium, stated, “Households restrained spending as the cost of living squeezed consumer demand further.”
“Many customers are opting for lower-priced goods, notably in the food industry, where they may have previously purchased luxury stuff,” she noted.
“Items of high value, such as furniture and white goods, were also affected by consumers’ rethinking of significant purchases at this difficult period.”
According to Ms. Dickinson, higher operational and input expenses have been reflected in price increases, and as a result, retailers and their customers face “tough times ahead.”
The long-running GfK Consumer Confidence Index flashed red on Friday, declining one point to -41 in June and marking a new record low for the second consecutive month.
Four metrics, including the index measuring personal financial confidence and the index measuring general economic confidence, decreased month-over-month, while one measure stayed unchanged.
Consumer sentiment is currently worse than it was during the early stages of the COVID pandemic, the result of the 2016 Brexit referendum, and even the shock of the 2008 global financial crisis,” said Joe Staton, director of the client strategy at GfK.
Britain faces a stark new economic reality, and history teaches that when the going gets rough, consumers will not hesitate to cut back and tighten their purse strings.
As unions talk with more British Airways employees about the possibility of wage-related strikes, industrial action might expand across the country.
About 700 Heathrow Airport employees, primarily check-in personnel, have already decided to strike during the summer vacation.
However, the GMB and Unite unions are advising engineers and call center employees at Gatwick, Glasgow, Manchester, and Newcastle to take action.
BA stated that it was “completely committed to collaborating to find a solution.”
Hundreds of BA employees supported walkout action on Wednesday in response to a 10% wage decrease implemented during the pandemic.
The airline has offered its employees a one-time payment equal to 10 percent of their annual wage, but GMB members at Heathrow want the entire pay decrease overturned.
BA stated that it had offered an “offer of a 10% payment that was accepted by the majority of colleagues.”
The wider consultation poll is distinct from the Heathrow issue and addresses broader salary concerns.
GMB spokesman: “Thousands of BA engineers at Heathrow, Gatwick, and in Scotland, as well as call center employees in Newcastle and Manchester, are amid a ballot for possible industrial action over pay.”
Gary Smith, general secretary of the GMB, told BBC Breakfast, “I don’t believe this will end with customer check-in staff.” Many of our members throughout the BA organization are sick to death of the company’s cuts.
People are outraged by the opportunistic exploitation of the epidemic by the leadership of British Airways, and they demand salary and working conditions be restored.
The purpose of the consultation is to gauge both participation and the actions that workers may wish to take. It is the phase that precedes an official vote on industrial action.
If unions representing Heathrow and British Airways check-in employees cannot reach a deal, vacationers and other travelers may experience disruptions to their travels.
Cerium, an aviation statistics business, predicts that about 1.8 million British Airways passengers will depart from Heathrow in July when the nation’s summer vacation begins.
The last day of school in England and Wales is July 22, while the first day of summer vacation in Scotland and Northern Ireland is July 1.
The earliest date that Heathrow employees might go on strike would be about July 7. Unions are required by law to give companies fourteen days’ notice to prepare for action.
The unions have not yet specified striking dates, although an announcement is anticipated early next week.
BA stated, “We will keep our clients informed as the situation develops regarding how this would affect them.”
International Airlines Group-owned firm has already curtailed 10 percent of its flights between March and October.
Following the Covid lockdown, when the sector slashed thousands of jobs and foreign travel ground to a halt, airlines and airports struggled to accommodate an increase in demand for travel.
Toyota is recalling 2,700 of its first mass-produced all-electric vehicles due to the possibility that their wheels may fall off.
After “minimal mileage use,” a spokeswoman told that fasteners on the bZ4X’s wheels “may loosen to the point where the wheel can detach from the vehicle.”
The recall comes less than two months after the Japanese debut of the vehicle.
Subaru said it will recall 403 electric vehicles it developed with Toyota for the same reason.
Friday, Toyota issued a safety recall notice for 2,700 bZ4X SUVs in the United States, Europe, Canada, and Japan.
A spokeswoman stated, “If a wheel detaches from the vehicle while driving, it could lead to a loss of vehicle control, increasing the danger of a collision.”
“No one should operate these vehicles until the fix is made,” they continued.
Toyota stated that it had notified Japanese safety inspectors about the malfunction on Thursday and that the root cause of the problem was “still being investigated.”
Subaru, another Japanese automaker, announced that it was recalling 403 Solterras, its first all-electric vehicle co-developed with Toyota, due to loose fasteners.
Toyota is considered a relative latecomer to the electric vehicle market in comparison to competitors such as Tesla, which introduced its first electric vehicle 14 years earlier.
The bZ4X was introduced in Japan last month. Toyota stated earlier this year that the vehicle was exclusively offered for lease “to eliminate customer worries over residual battery performance, maintenance, and residual value.”
Due to a lack of computer chips and supply bottlenecks caused by the epidemic, the business announced this week that it will reduce the number of vehicles it planned to produce by 50,000 to 800,000 next month.
Toyota has signaled that it may be compelled to reduce its existing global production target of 9.7 million vehicles for the current year.
London Underground workers have decided to strike again as they near the conclusion of this week’s strike, which has delayed Tube service in the capital.
This week’s strikes have created considerable inconvenience throughout the capital city.
This week, about 10,000 London Underground employees refused to work, affecting all Tube lines.
According to the union, more than ninety percent of Rail, Maritime, and Transport union members who voted intend to withdraw their labor in the coming months.
Workers claim they are waging a campaign to save their pensions, enhance working conditions, and avoid job losses.
The next strike has not yet been scheduled.
Transport for London (TfL) has announced plans to eliminate 600 positions and alter the “generous” pension scheme, as characterized by London Mayor Sadiq Khan.
“This is a terrific victory for our members and demonstrates that Tube employees agree with RMT’s views,” said RMT general secretary Mick Lynch.
Mr. Lynch continued, “TfL and the Mayor of London must rethink their plans for hundreds of job cutbacks and attempts to remove pensions from workers who serve the people of London every day.” He should not attempt to sacrifice the pensions and jobs of our members to adhere to Boris Johnson’s budget constraints.
This week has witnessed widespread strike action on the nation’s trains including the London Underground.
It is expected to be followed by disruptions at major airports, notably London Heathrow after British Airways employees voted on Thursday to strike during the busy summer holiday season to reclaim their pre-pandemic earnings.
ISLAMABAD: Amid widespread power outages, Pakistan failed to find a bidder for three LNG slots and received the highest-ever rate for another slot for the last week of July, as European customers snatched up the spot market quantities to compensate for Russian supply disruption.
On June 16, the state-owned Pakistan LNG Ltd (PLL) issued a tender for four cargos, one in each of the first and second weeks of July, and two in the final week. There was no bidder for the July 2-3, July 8-9, or July 25-26 delivery windows.
This was PLL’s third failed attempt to get an LNG cargo in the first week of July. The previous two tenders, issued on May 31 and June 7, respectively, drew two and one bidders, but neither was technically responsive. As a result, the bids were returned unopened.
This time, QatarEnergy Trading was the sole bidder for July 30-31. It cost a record-breaking $39.8 per million British Thermal Unit (mmBtu). According to sources, the government would find it difficult to accept such a high rate and should consider load shedding or maximizing generation from other fuels.
Pakistan’s highest-ever bid since it began importing LNG in 2015 was $30.65 per mmBtu in November 2021.
According to the sources, the US government has influenced spot market suppliers, in addition to Middle Eastern producers, to ensure maximum LNG supplies to European countries that were ready to lift the commodity at any price to meet shortages caused by Russian supply disruptions.
Even though the vast majority of cargos come from cheaper long-term contracts, re-gasified LNG prices in Pakistan have already risen 40% to $22-24 per mmBtu in recent months as a result of a string of spot cargos procured by the new unity government in its first month in office.
These LNG rates, combined with rising coal and oil prices, have increased electricity fuel costs by more than 100 percent, as evidenced by Rs7.95 per unit additional monthly adjustments claimed by ex-Wapda distribution companies (Discos) and over Rs11.38 per unit by K-Electric Ltd for the coming month.
Pakistan has two long-term contracts with Qatar, one involving six-monthly cargos at 13.37 percent of Brent signed by the previous PML-N government and the other involving two monthly cargos at 10.2 percent of Brent contracted by the PTI government. The other four cargoes per month are mostly arranged through spot tenders.
PSO and PLL, the state-run LNG importers, would benefit from even more expensive imports because they earn a windfall profit on account retainage and margins of 3.22pc and 3pc, respectively, which increases with higher import prices.
In recent months, Pakistan has experienced power outages ranging from three to seven hours per day. The previous administration was hesitant to order spot LNG tenders due to high prices, while long-term suppliers defaulted nearly a dozen times in the winter due to a volatile international market. The authorities have also struggled to secure furnace oil to compensate for the LNG shortfall. Over the reference prices, additional monthly fuel cost adjustments more than doubled.
Gas firms struggle to meet even half of firm power-sector demand of up to 900 million cubic feet per day, resulting in nationwide power outages. This comes at a time when PSO receivables have surpassed Rs600 billion and the Petroleum Division has reported a gross liquidity requirement of approximately Rs1.98 trillion for fuel imports to minimize load-shedding in the first quarter of the next fiscal year.
To meet power-sector demand from June to September, the government initially planned to arrange a maximum of 12 LNG cargos per month. The price of spot LNG cargos has risen due to the Russian-Ukraine war and global demand-supply dynamics, making it unaffordable for Pakistan. PSO imports furnace oil in addition to LNG, which adds to its financial constraints.
PSO and PLL have presented their estimated liquidity requirements for the summer months, with the former requiring Rs1.7 trillion — Rs427 billion in June, Rs445 billion in July, and Rs413 billion in August, and Rs414 billion in September — for both LNG and furnace oil.
PLL, on the other hand, has requested Rs278 billion over four months, including Rs98 billion this month, Rs44 billion in July, Rs80 billion in August, and Rs56 billion in September.
The Liberal Democrats defeated a Tory majority of 24,000 to win the Tiverton and Honiton by-election.
In his victory speech, new MP Richard Foord calls on Prime Minister Boris Johnson to “go, and go now,” promising his constituents that “I will never take you for granted.”
Richard Foord won a 6,144-vote majority in the Devon constituency on Thursday, thanks to a nearly 30% swing from the Conservatives to the Liberal Democrats.
In his acceptance speech, the new Lib Dem MP called for Prime Minister Boris Johnson to “go, and go now,” claiming that his victory had “sent a shockwave through British politics.
He stated that: “I’m humbled and filled with gratitude for the trust that the people of Tiverton and Honiton have placed in me.
“I believe we have received very positive feedback throughout our very optimistic campaign… but there is no doubt that Boris Johnson was a theme that came up on almost every doorstep.
“I believe there is a growing sense that he has outstayed his welcome as Prime Minister.”
Former Conservative MP Neil Parish resigned after admitting to watching pornography on his cellphone in parliament twice.
It is the Lib Dems’ third by-election victory over the Conservatives in the last year, following victories in North Shropshire and Chesham and Amersham.
The Conservatives suffered another major defeat on Thursday when Labour’s Simon Lightwood won the West Yorkshire seat of Wakefield by nearly 5,000 votes.
Labour has won the Wakefield by-election by a margin of 4,925 votes, reclaiming the traditional red wall seat from the Conservatives.
Simon Lightwood is elected as the city’s new MP, putting Boris Johnson’s leadership to the test for the first time since the confidence vote last month.
Simon Lightwood, an NHS worker, will now represent the West Yorkshire city in the Commons.
Mr. Lightwood addressed the prime minister following the result, saying, “Boris Johnson, your contempt for this country is no longer tolerated, your government has no ideas, no plan to address the big issues facing our country.”
“I think people are tired of the lies and deceit we’ve seen from the prime minister, and they’re demanding change, and tonight is the demonstration of that,” he told.
“This is a tremendous victory for the Labour Party, and we’re rebuilding that red wall under Keir Starmer’s leadership,” he added.
“We are listening to the people of the country and presenting a vision for the future.”
The resignation of Tory MP Imran Ahmad Khan, who resigned after being found guilty of sexually assaulting a 15-year-old boy, triggered the ballot.
The seat had been held by Labour since 1932 but was won by Mr. Khan in Boris Johnson’s landslide general election victory in 2019.
The outcome is the first test of the prime minister’s leadership since the vote of confidence last month.
The former Tory MP who resigned after being caught watching pornography in parliament says the public has “largely forgotten” what he did and that his resignation has not helped the party recover from its humiliating by-election loss.
Mr. Parish, who resigned after watching pornography in parliament, claims that people in Tiverton and Honiton voted against a “very unpopular prime minister” after the Liberal Democrats won his former seat by overturning a 24,000 Tory majority.
Neil Parish, whose resignation triggered the by-election in Tiverton and Honiton, told that constituents voted against a “very unpopular prime minister” who is “living in a parallel universe.”
The Conservatives lost a majority of 24,000 votes, or 40.6 percent, in the Devon seat to the Liberal Democrats, a record reverse for the party.
The Conservatives also lost the Wakefield by-election to Labour, prompting Conservative Party chairman Oliver Dowden to resign.
“Full credit to the Lib Dems for winning,” Mr. Parish told, “but it’s a combination of our vote dropping dramatically, people switching, people staying at home, and a very unpopular prime minister, which people have tactically voted against.”
“I feel responsible because I had to leave.” I made a very stupid and bad mistake, but I did the right thing and left.
“I thought it would help the party, but on reflection, I don’t think it has because I think a lot of people in the constituency are thinking: ‘We like Neil, we thought he was very foolish, but he did the honorable thing – what about the prime minister?’
“He (the PM) has a lot of good qualities.” The problem is that he can’t just keep living in a parallel universe; reality must exist.”
Mr. Parish believes he still has “a lot to offer,” saying, “I could beat myself up forever, but whom am I beating up?” Because the public has moved on, it’s just me.
“I believe they’ve gotten over it. They probably thought I was stupid, but they accepted my resignation, and life goes on.
“I believe we must be realistic and listen to what others have to say.”
Mr. Parish predicted that Tory MPs would be “concerned” about the by-election results.
“Politicians want to be re-elected, and they want people to make sure that happens,” he added.
Mr. Parish resigned last month after admitting in the House of Commons to watching pornography.
The 65-year-old farmer admitted to watching adult material twice in parliament, claiming the first time was unintentional after looking at tractors online, but the second was “a moment of madness.”
He had initially stated his intention to continue as MP for Tiverton and Honiton but later stated that he would resign due to the “furor” and “damage” he was causing his family and constituency.
Passengers are still experiencing travel disruption due to the impact of strikes on the rail network, with the third day of action scheduled for Saturday.
Approximately 60% of trains are running, with delays caused by some railway personnel not working overnight.
National Rail has issued a list of more than 25 different service disruptions for the weekend.
Talks to resolve the pay and conditions dispute have stalled.
Union leaders have warned that more strikes are likely if a job settlement cannot be reached, while the government has said the strikes are an unnecessary response to needed rail network reform.
Members of the Rail, Maritime, and Transport union (RMT) at Network Rail and 13 train operators went on strike on Tuesday and Thursday as part of the dispute, in which they are seeking a 7% pay increase and assurances that no compulsory redundancies will occur.
Many train companies are terminating services early on Friday in preparation for the third day of action on Saturday, which is expected to bring the network to a halt once more.
The Heathrow Express line, which takes passengers to London’s busiest airport, was among the services disrupted on Friday. British Airways employees are also threatening to strike over the summer.
Some of Friday’s rail delays were caused by trains being unable to leave overnight depots until around 06:00 BST because staff working night shifts were not present.
Services in all parts of England are affected, including the Great Western Railway, LNER, and East Midlands Railway.
Even though their rail networks are devolved, services in Scotland and Wales have been disrupted because they rely on trains from England and Network Rail staff. Trains in Northern Ireland are unaffected.
Meanwhile, a Network Rail source told the BBC’s Katy Austin that talks with the union were still ongoing.
They stated that there appeared to be some good conversations and that the parties were getting closer.
Mick Lynch, general secretary of the RMT, said the strikers were “leading the way in standing up for all working people trying to get a pay rise and some job security.”
He urged ministers to “get in the room or get out of the way” of the dispute, noting that the RMT had “successfully struck dozens of deals” with rail companies.
“RMT’s industrial campaign will continue until a negotiated settlement is reached.”
Mr. Lynch also reiterated his claim that the government was to blame for the impasse, telling the audience that rail companies had told him “face to face they could achieve a guarantee of no compulsory redundancies” but were “not being allowed to.”
The government has previously stated that it is the responsibility of the unions and rail companies to resolve the dispute and has denied interfering with or delaying negotiations.
Network Rail, with whom the RMT is negotiating alongside the rail operators, has also stated that the stalemate is due to the union, not the government.
The “needless and premature” strike action, according to CEO Andrew Haines, will cause people to “suffer again” over the weekend.
“We remain at the table and ready for talks, day or night,” he said, adding that “we will do everything we can to avoid further disruption for our passengers.”
The Rail Delivery Group’s Chair, Steve Montgomery, stated that the union must collaborate with rail operators to modernize “outdated working practices” so that the industry can adapt to changing travel patterns.
Boris Johnson has suffered a triple blow after the Conservatives were defeated in two by-elections, prompting Conservative Party chairman Oliver Dowden to resign.
The Conservatives saw their 24,000-vote majority vanish as the Liberal Democrats won the Devon seats of Tiverton and Honiton, while Labour won Wakefield in West Yorkshire.
The Conservatives lost a majority of 24,000 votes, or 40.6 percent, in the Devon seat of Tiverton and Honiton to the Liberal Democrats, a record reverse for the party.
Wakefield, West Yorkshire’s’red wall’ constituency snatched by the Conservatives in 2019, was won by Labour.
Following the results of the by-elections, Mr Dowden resigned, writing to the Prime Minister, “We cannot carry on with business as usual.
Mr Johnson thanked him for his service, but added that while he understood Mr Dowden’s “disappointment,” the government had a “historic mandate” from the general election, and he wanted to continue working “to unite and level up” the country.
Chancellor Rishi Sunak expressed “sadness” over Mr Dowden’s resignation, adding, “We all take responsibility for the results, and I’m determined to continue working to address the cost of living.”
Reactions to Boris Johnson’s humiliating defeats in politics
It was the PM’s second electoral defeat this year, following the Conservatives’ loss of nearly 500 council seats at the start of last month.
“I think people are absolutely tired of the lies and deceit we’ve seen from the prime minister and they’re demanding change,” said Simon Lightwood, who won the Wakefield by-election for Labour.
Richard Foord, the Lib Dem candidate for Tiverton and Honiton, used his acceptance speech to call for Mr Johnson “to go, and go now,” claiming his victory had “sent a shockwave through British politics.”
The prime minister has come under fire for the partygate scandal, as well as the cost of living crisis, which has strained British household budgets.
The pressure increased when 148 Conservative MPs voted against him in a no-confidence vote.
Mr Dowden upped the ante in his damning letter, saying, “Someone must take responsibility.”
Sir Roger Gale, a Tory backbencher and outspoken critic of the Prime Minister, called Mr Dowden “a decent and honourable man who has clearly decided that he can no longer defend the indefensible.”
Angela Richardson, a Conservative colleague who resigned as a junior aide over partygate, also tweeted that the former party chairman was “most certainly not responsible for these results,” while fellow MP Simon Hoare said he was “proud to call Oliver a friend – never more so than today.”
Mr Johnson, who is in Rwanda for the Commonwealth Heads of Government meeting, said ahead of the vote that resigning as prime minister if he lost the two seats would be “crazy.”
According to a source close to the PM, he received a brief phone call from Mr Dowden after he made his decision public, which caught him off guard because the pair had been together on Wednesday to prepare for PMQs.
A Downing Street source admitted that the resignation was unhelpful and that they were unsure whether more resignations would follow.
However, because the vote of no confidence was only a few weeks ago, the prime minister’s position was settled.
Mr Johnson said after the results that he did not want to “underestimate the significance” of the message from voters, but that it was normal for governments to be “punished at the polls” in the middle of their term.
“I think as a government, I’ve got to listen to what people are saying, particularly the difficulties people are facing over the cost of living, which I think is the number one issue for most people,” the PM added.
We have to recognise that there is more we need to do, and we certainly will, we will keep going addressing people’s concerns until we get through this patch.
However, Labour leader Sir Keir Starmer said the Wakefield result showed the public “voting no confidence” in the government and that the PM and his cabinet should resign.
“The Tory Party is absolutely imploding,” he said while visiting the constituency to celebrate his party’s victory. They are aware that they are out of ideas and out of touch.
“If they had any sense, they would clear the way for the next Labour government.”
Liberal Democrat leader Sir Ed Davey told that the South West by-election was a “huge victory” for his party but also revealed a “big issue for our country.”
“I believe Tiverton and Honiton have spoken for the British people, and I believe they have said loud and clear, Boris Johnson must go,” he added.
“They see him as a lying lawbreaker and someone who does not have a plan for our country.”
On the sixth anniversary of the Brexit referendum, two by-elections were held in leave-voting constituencies.
They were triggered by the resignations of Conservative MPs: Neil Parish in Tiverton and Honiton resigned after admitting to watching pornography on his mobile phone in the Commons chamber; and Imran Ahmad Khan in Wakefield resigned after being found guilty of sexually assaulting a 15-year-old boy.
Mr Parish told that the Conservatives’ defeat in his former seat was due to “a combination of our vote dropping dramatically, people switching, people staying at home, and a very unpopular prime minister who people tactically voted against.”
“[Mr Johnson] has many good qualities,” he added. The problem is that he can’t just continue to exist in a parallel universe; there has to be reality.”
Wakefield’s last Labour MP, Mary Creagh, who was defeated by the Conservatives in 2019, said it was “clear the public has fallen out of love with Boris Johnson.”
“All the rhetoric they were promised about ‘levelling up’ and ‘the northern powerhouse’ has been forgotten,” she told “and the Tory Party now looks like a project to keep one man in power.”
“It has not been a good evening by any stretch of the imagination,” Mr Scully said of the results.
However, he stated that Mr Johnson’s “brave approach” would generate “the big ideas” to address the country’s challenges, including the cost of living crisis.
