House building is set to slump by a fifth this year according to a report that adds to evidence of the squeeze being caused by rising interest rates.

Figures from PwC suggest residential new-build activity will fall by 21.1 per cent in 2023 as higher mortgage costs together with the broader cost of living squeeze weaken demand.

That is on a par with the slump in the pandemic year of 2020 when output shrank by 20.8 per cent.

The figures come after Berkeley, one of Britain’s biggest housebuilding firms, said on Friday that it had stopped buying land for new homes due to the ‘considerable uncertainty’ gripping the economy as well as complex planning rules.

PwC’s report suggests that while housebuilding bounced back strongly in 2021 and 2022 it is set for a big dive this year. Soaring interest rates – now at 5.25 per cent and expected to climb again later this month – are blamed for the trend.

Paul Sloman, at PwC, said: ‘With the cost of borrowing for mortgages now at its highest level since 2008, it follows that fewer sales enquiries and slower decision making among prospective home owners would be the result.

‘With a sharp fall in demand, house builders will act to preserve cash and ensure they build only what they could sell. However, we do see green shoots and predict an overall return to strong growth in 2024 and 2025.’

The report pointed to a fall of 7.8 per cent in new-build output this year when including commercial and industrial construction.

Commercial construction will drop 0.4 per cent amid uncertainty about returning to the office while industrial building should rise by just 0.9 per cent, as a frenzy of warehouse building to serve online shopping demand cools.

Repair and maintenance work has proved more robust for builders as households spruce up homes instead of moving.

Separate figures from accountants BDO add to recent evidence that rate rises are taking their toll on the wider business environment and threaten to drag Britain into a downturn.

They showed an index measuring employment falling for a second month in a row as well as a decline in business output.

BDO partner Kaley Crossthwaite said: ‘Businesses are reacting to the higher interest rate environment with conservative decisions about hiring.

‘We can expect a slump in output, optimism and employment in the final months of 2023 as a result of rising unemployment and higher rates for businesses.’

This week GDP figures are expected to show a 0.2 per cent fall in July due to wet weather and strikes. Last week, Bank of England governor Andrew Bailey said it was reaching the ‘top of the cycle’ on interest rates.

EnQuest shares tumbled on Tuesday after the windfall tax and falling prices sent the energy producer swinging to a first-half loss.

The London-listed business reported a $21.2million loss for the six months ending June, compared to a $203.5million profit for the same period last year.

It said the result was driven by a $76million charge related to the Energy Profits Levy (EPL), equivalent to more than half its overall tax bill.

Losses: London-listed EnQuest reported a $21.2million loss for the six months ending June

Discounting the EPL, the firm still saw pre-tax profits slump by around 38 per cent to $112.9million because of declining oil and gas prices hitting turnover, which plunged by over $200million to $732.7million.

Following the trading update, EnQuest shares slumped 15.8 per cent, or 2.75p, to 14.7p by early Tuesday afternoon, making them the biggest faller on the FTSE All-Share Index. 

Petroleum prices skyrocketed over much of 2022 due to Russia’s invasion of Ukraine squeezing supplies across Europe and loosening Covid-related restrictions enabling factories to reopen and people to travel more regularly.

They have slid significantly since then amidst a global economic slowdown and governments imposing energy-efficiency measures.

Wholesale gas prices have also taken a hit from mild weather conditions, improved storage levels and weak demand from China.

For the first half of 2023, global petroleum prices were an average of $75.8 per barrel, against $89.9 the previous year, while the average day-ahead gas price fell from 182 pence to 108 pence per British thermal unit.

Enquest’s results were further affected by average production levels dropping by 8.5 per cent to 45,480 barrels of oil equivalent per day.

Output at its Kraken field fell by around a third following the failure of some hydraulic submersible pump transformers in May, while the Golden Eagle operation also saw a decline in production.

Back in February, the company said it would put new drilling at the Kraken field on hold due to the impact of the EPL.

Introduced in May last year by then Chancellor Rishi Sunak, the windfall tax is a 35 per cent surcharge on the profits of North Sea oil and gas businesses, who now pay an effective tax rate of 75 per cent.

Amjad Bseisu, chief executive and co-founder of EnQuest, warned that the industry faces ‘significant challenges and loss of competitiveness’ because of uncertainty deriving from the recent tax changes.

He added that ‘timely legislative reform is required to restore confidence in the UK oil and gas sector to protect jobs and deliver both energy security and decarbonisation.’ 

Fellow North Sea producer Ithaca Energy announced a fortnight ago that it had been forced to delay and cancel some domestic projects because of the EPL.

Russ Mould, investment director at AJ Bell, said: ‘Treatment of tax is an accounting issue, and it definitely suits UK oil and gas firms to accentuate the impact of the new levies they face – it is through their decisions to shelve and pull investment that they provide a credible signal of disquiet.’ 

In response to industry criticism of the tax, the UK government has promised to abolish it should oil and gas prices descend below historically normal levels for a sustained period.

Under the Energy Security Investment Mechanism, the levy would end when average oil prices drop to, or below, $71.40 per barrel and gas hits 54 pence per therm for two successive quarters.

A six-year-old is fortunate to be alive after his zip line harness broke and sent him crashing into a man-made lake at an amusement park in the northeastern Mexico state of Nuevo León on Sunday.

The frightening incident was caught on video by the family and shows César Moreno zip lining 40 feet above the artificial lake at Amazonian Expedition in Fundidora Park.

An adult male can be seen sliding up next to Moreno and guiding him along the way when the safety belt suddenly snaps.

The man comes to a full stop and several people in the background scream before the recording ends.

Six-year-old César Moreno (bottom) fell into a man-made lake after his zip line harness broke at an amusement park in Monterrey, Mexico, on Sunday. A Good Samaritan jumped in the pool to save him from drowning and encountered problems reaching the shore before the boy’s brother and his sister’s boyfriend pulled them out to safety

Cesar Moreno rests on a bench at Fundidora Park in Monterrey, Mexico, after he suffered a zip line accident. Activities at the amusement park have been suspended as investigators look into what caused the harness to snap before the six-year-old boy fell into a man-made lake

The boy’s sister, Nataly Moreno, revealed on Facebook that a Good Samaritan jumped into the lake to save her little brother from going under and nearly drowned while doing so.

But her brother and boyfriend rushed into the lake and brought them to safety.

She alleged that Fundidora Park did not have the necessary staff in attendance to rescue her brother and the man who attempted to help him.

‘The park does not have people trained for this type of situation, none were there to help get him out of the water,’ Nataly Moreno said. ‘Terrible park, it’s incredible how disastrous things can happen in the blink of an eye. I only thank God that my Cesar is well.’

César Moreno’s relative, Mayra Hernández, claimed that none of the park workers were trained to swim.

‘Thanks to the fact that we were close, we were able to get him to safety since a relative jumped in to get him out of the water,’ she wrote on Facebook. ‘Due to the poor training of the staff, everything could have been worse. The harness burst in the middle of the ride!’

César Moreno (right) was on a zip line accompanied by an adult family member moments before the six-year-old boy’s harness broke and sent him crashing into a lake

A Nuevo León Civil Protection worker places a do not cross barricade tape at the entrance of the zip line ride at Fundidora Park in Monterrey 

The Nuevo León Civil Protection said in a statement that boy did not suffer any injuries and was able to walk out with his parents and family. 

Fundidora Park announced Monday that activities on all of the attractions had been suspended and that they were reviewing the responsibility of the company that operates the zip line ride.

The park management added it ‘will maintain communication with the minor’s family to provide institutional support and deal with everything related to the situation.’

‘In this Park’s new era, the priority is the experience and safety of our visitors,’  Fundidora Park said. ‘So, we will continue to implement the necessary measures to guarantee that the companies rigorously comply with their contracts.’

Global investors yesterday scrambled to respond to the knock-on effects of Russia’s failed mutiny as the rouble sank to a 15-month low against the US dollar.

Oil and wheat commodity prices and defence industry stocks were in focus, with some big moves in early trading.

Experts were also trying to work out how events might affect inflation and interest rates.

George Lagarias, chief economist at Mazars, said: ‘Russia is very important for the global supply chain as a major energy supplier and commodities exporter. 

Further instability could, in theory, add to inflationary pressures when we at least thought supply chain issues were behind us.’

Blowback: The rouble weakened to 87.23 versus the dollar before strengthening to 84.25

Russia’s invasion of Ukraine last year sent energy and food prices spiralling, accelerated a cost of living squeeze and reshaped European industry. 

Yet with anxiety about growth in the world’s biggest economies – the US and China – the price of a barrel of Brent crude rose 60 cents to $74.45.

Phil Flynn, analyst at Price Futures Group, warned that Russian political instability could still worsen supply shortages. 

Elsewhere, Chicago wheat futures –the global benchmark for the commodity – hit four-month highs amid concerns about the situation in Russia, a major exporter before retreating amid profit taking.

And defence industry investors marked down stocks that have made big gains since the invasion. 

Shares in BAE Systems fell 2 per cent while Italy’s Leonardo and France’s Dassault fell too, as did America’s Lockheed Martin.

The rouble weakened to 87.23 versus the dollar before strengthening to 84.25.

A British holidaymaker has died after plunging from the third floor of a hotel in the Ibizan party resort of San Antonio.

The 22-year-old man was pronounced dead at the scene at around 11am this morning.

Well-placed sources said he fell from the balcony of a room he was in with a friend. The individual, whose nationality is not known, is being questioned by police.

A police insider said: ‘This incident is still under investigation. All lines of inquiry are being explored and it is still too early to say exactly what happened.’

A Civil Guard spokesman said: ‘A 22-year-old British man has died this morning after plunging from the third floor of a hotel in San Antonio. The incident is still being investigated.’

A Civil Guard spokesman said: ‘A 22-year-old British man has died this morning after plunging from the third floor of a hotel in San Antonio’ (file image of San Antonio)

The hotel where the incident occurred is a budget one-star hotel near San Antonio’s bus station called the azuline Hotel Llevant (pictured). It is described on travel websites as the ‘perfect place to enjoy the party resort’s nightlife’

The hotel where the incident occurred is a budget one-star hotel near San Antonio’s bus station called the azuline Hotel Llevant.

It is described on travel websites as the ‘perfect place to enjoy the party resort’s nightlife’.

It is just 200 metres from San Antonio beach.

Another travel website says: ‘The resort’s nightlife, bars, shops and restaurants surround this well-located hotel, and the picturesque harbour is just a few streets away. This accommodation is a perfect pick for a fun holiday in Ibiza with your partner or friends.’

The website of the Azuline Hotels group, which Hotel Llevant is part of, says on its website: ‘This is a hotel for young people who want to enjoy centrally-located and low-priced accommodation; a budget hotel with all the amenities you need for your holiday.

‘The hotel is located in one of the most popular areas for nightlife on the island of Ibiza. 

‘Ideally situated just a few metres away from the bus station, it has large bright rooms and a fantastic terrace-pool with snack bar where you can continue to soak up the atmosphere.’

A spokesman for a regional government-run emergency coordination centre said: ‘We received the first call at 10.50am local time.

‘The calls that came in said a man aged around 20 had plunged from a hotel in San Antonio.

‘Police and paramedics were mobilised as part of the emergency response.’

A health source said: ‘The man had already gone into cardiac arrest by the time the first ambulance arrived.

‘Health responders tried to save his life but were unable to do so.’

Another travel website says: ‘The resort’s nightlife, bars, shops and restaurants surround this well-located hotel (pictured), and the picturesque harbour is just a few streets away. This accommodation is a perfect pick for a fun holiday in Ibiza with your partner or friends’

A receptionist at the hotel where the incident occurred said: ‘We’ve been told not to say anything by the police and in any case we don’t really know what happened.

‘It occurred a relatively short time ago and is still being investigated.’

The dead man is believed to have landed in the road outside a tattoo parlour.

Police officers covered the area with sheeting and cordoned it off.

Initial reports said the British tourist had fallen from the fifth floor but well-placed sources said he had been on the third-floor balcony of a room where he is believed to have been staying.

A 24-year-old British woman died in September last year after plunging from a balcony at the Rosamar Hotel in Cala de Bou a short drive from San Antonio.

Her unnamed partner is understood to have been with her at the time. He reportedly told police she had fallen around 30 feet from a second-floor balcony.

Gear4music slipped to a loss last year due to more challenging domestic economic conditions and extra costs from reducing inventory levels.

Britain’s largest online musical equipment retailer posted a £400,000 pre-tax loss for the 12 months ending March, compared to a £5million profit the prior year.

Total revenue grew by 3 per cent to £152million despite cost-of-living pressures in the UK hurting demand for discretionary consumer products.

Result: Gear4music declared a £0.4million pre-tax loss for the 12 months ending March due to more challenging economic conditions and extra costs from reducing inventory levels

The company had previously blamed weaker domestic trading on Royal Mail strikes delaying deliveries over the Christmas period, hot weather and the absence of Covid-related restrictions.

Sales were also impacted by the firm’s own-brand products experiencing stronger competition from Far East manufacturers selling into Europe through Amazon.

Because of slowing demand, Gear4music set about slashing stock, which it had built up the previous year for ‘precautionary and opportunistic reasons’, through price cuts and changing re-ordering levels.

Combined with elevated energy, labour and card processing costs, this contributed to gross margins declining by 220 basis points to 25.7 per cent.

Andrew Wass, chief executive of Gear4music, remarked: ‘Market conditions have continued to be challenging…and we are taking the appropriate and necessary actions to ensure our business is correctly configured, resourced and positioned strategically for long-term success.’

Following the release of its full-year results, Gear4music shares sank by 6.8 per cent, or 7p, to 95.5p on Tuesday morning.

Gear4music was one of the most noticeable lockdown retail winners, as homebound consumers sought to keep themselves occupied by improving their musical abilities.

Purchases of guitars, digital keyboards and home recording equipment all grew significantly.

To capitalise on the boom, the company bought percussion instrument maker Premier Music, whose drums have been played by the likes of Sir Ringo Starr, Keith Moon and Phil Collins.

It also acquired audio-visual equipment seller AV Online and opened three new distribution centres across Ireland and Spain to boost its presence in mainland Europe.

Yet trading began to slow down as Britain’s departure from the European Union caused disruption to shipping, and people started spending more time outside after Covid-related curbs were ended. 

For the last financial year, the number of Gear4music’s active customers fell by 6 per cent to 865,000, while website visitors dropped by 2.3 million to 26.5 million.

Even though the group’s consumer base, turnover and profits remain above pre-Covid levels, its share price has dived by more than 90 per cent from its peak of over £10 two years ago. 

Chairman Keith Ford said: ‘Customer demand across our markets remains volatile and difficult to predict, reflecting the continuing impact of geo-political and macro-economic uncertainties affecting consumer confidence across Europe.’

This is the moment a passenger who arrived late for his flight falls to the ground after losing his balance as he tries to jump onto the runway and reach his plane.

The man, who had already pained other passengers by arriving late and causing a delay, was filmed pleading with airport workers after getting to the end of the boarding gangway at Malaga Airport.

He was overheard demanding in Spanish, with a foreign accent, ‘Bring me a ladder’ before adding: ‘No ladder, then I’m coming down.’

The man proceeded to try to ease himself off the end of the walkway before losing his balance and plunging 12 feet to the hard tarmac below as astonished passengers on the plane looked on.

He landed on his back, with his small rucksack cushioning his fall slightly, and at first appeared to be seriously injured as more airport workers rushed to his aid before sitting and then standing up.

The man who already held up the flight after being late was filmed pleading with airport workers after getting to the end of the boarding gangway and discovering the plane was getting ready for take-off with a drop to the ground below

He was overheard demanding in Spanish, with a foreign accent, ‘Bring me a ladder’ before adding: ‘No ladder, then I’m coming down.’ The unnamed man proceeded to try to ease himself off the end of the jet walk before losing his balance and plunging several feet to the hard tarmac below as astonished passengers on the plane a few feet away looked on

One of the people on board the plane watching the drama unfold was overheard asking a flight attendant ‘Can you call the police’ but was told that was already being done.

Amazingly the disgruntled man who fell to the ground was seen walking towards the plane after taking a few moments to rest and recover and seemed to achieve his objective of boarding with his dangerous display.

A spokesman for Spanish airport operator Aena confirmed the incident had occurred in the last few days and said the Civil Guard had dealt with it.

Police could not be immediately reached this morning for comment and it was not clear if he had been allowed to board and make the flight he was so desperate to take.

In August 2016 a Bolivian national was filmed running onto the tarmac at Madrid’s main international airport to catch a Ryanair flight.

He jumped off the jet bridge with two bags in his hands and sprinting across the edge of the runway to board the plane, managing to fly to his destination of Gran Canaria where he was intercepted by police and identified so he could be reported for an airport security infraction.

The unnamed man is thought to have been hit with a huge fine and the person at the centre of the latest drama is also expected to face a stiff financial penalty for his actions.

In January 2018 a Polish man was taken off a Ryanair plane that had just landed at Malaga Airport from Stansted after leaving the aircraft via an emergency exit and climbing onto the wing.

He landed on his back, with his small rucksack cushioning his fall slightly, and at first appeared to be seriously injured as more airport workers rushed to his aid before sitting and then standing up. One of the people on board the plane watching the drama unfold was overheard asking a flight attendant ‘Can you call the police’ but was told that was already being done.

Polish expat Romuald Gracyzk was later warned he could face a fine of up to POUNDS 40,000 for breaching airport security, although reports at the time said it was unlikely authorities would ever get any money out of him because he was living in a charity flat and busking for tourists outside Malaga Cathedral to make a bit of pocket money.

He apologised for his action after his stunt, blaming his drastic actions on an attack of claustrophobia after a delay leaving London Stansted Airport and another unexplained wait when the plane reached Malaga, but admitting: ‘I’m ashamed, it was a mistake.’

Revealing he had travelled to London with an invite from one of his three nieces who lived in Britain, he added: ‘He said: ‘I hadn’t arranged to meet anyone and I wasn’t late for anything.

‘I don’t know what came over me. I felt a little bit of claustrophobia. I became nervous, I didn’t understand why we were in Malaga and couldn’t leave the plane, so I saw a door that said ‘Exit’ and left.

‘People began to applaud me and encourage me by doing the thumbs-up.

‘I wasn’t going to jump. When I reached the edge of the wing I saw it was too high so I went back inside the plane.’