We've had four big economic moments this week - leaving Rachel Reeves with problems to fix before the budget in November. 

The chancellor is starting the weekend with a headache after higher than expected government borrowing called her plan for growth into question. Analysts have warned tax rises to plug the nation's financial black hole are now "inevitable". 

It was the second blow for Reeves this week - and all of our wallets - after inflation proved sticky at 3.8% last month, remaining unchanged from July's figure. The rate of food and drink inflation rose even higher to 5.1% as shoppers continued to face higher prices at the till. 

This was particularly bad for retired people on fixed incomes - they tend to be worse off as inflation cuts the real value of their pensions and other savings. 

But that's not the main news pensioners will be thinking about, because we also found out that state pensions are likely to rise by 4.7% in April, thanks to the triple lock. 

Under the policy, the state pension rises by whichever is highest out of 2.5%, the rate of wage growth or inflation in September, which will be published next month. 

Wage growth is at 4.7%, which is higher than the expected inflation figure of 4%. 

A 4.7% boost to the new state pension would take it to around £12,534 a year - £36 short of the income tax threshold of £12,570. The old basic state pension would increase from £9,175 to £9,607. 

The uplift will create tax concerns for pensioners in the future, though. 

The other big economic moment of the week came from the Bank of England, which opted to hold its base rate at 4% on Thursday. 

Its decision to hold steady means there are few changes to be aware of when it comes to mortgages or savings, but the Bank's new quantitative tightening policy is interesting.  

If you're wondering what that is and what it means, our economics and data editor Ed Conway explains it in 90 seconds here...  

All of this has come at a time when households are, believe it or not, starting to plan for the festive season, counting pennies and budgeting for presents - you know Christmas is less than 100 days away, right? 

You could add up to £200 to your festive budget for free with our round-up of three new bank switching deals. 

If you're a Money newsletter subscriber, you will have already seen this tip, but for those of you who haven't signed up, it might be something to consider as we head into the weekend... 

Here are some of the other stories Money blog readers enjoyed this week...  

Tomorrow, we'll be back with our Long Read. A career break might sound like the stuff of dreams - but it can also turn into a nightmare.

Money features writer Brad Young speaks to three people who took the plunge - and he's got five top tips from career coaches if you're considering taking a break...

The number of unpaid carers has risen by 70% over the last decade, according to a new report, which warns England's social care system has been "neglected" and reached "breaking point".

There were 1.9 million people providing 35 hours or more a week of free care in 2023/24, up from 1.1 million in 2003/04, analysis by the Joseph Rowntree Foundation (JRF) found.

The analysis is included in a new report for the Institute of Public Policy Research (IPPR) thinktank.

It said there had been a 15% jump in people asking for some form of adult social care, but there has only been a 2.5% increase in those receiving it.

Working-age adults are among those increasingly needing care, the report added. Requests for support from those aged 16-64 have grown by 31.5 per cent, and there's been a nine per cent rise in requests from people aged 65 and over.

Unpaid care – whether by parents, spouses or adult children, and most frequently women – is relied on too heavily to fill in the gaps of the "inadequate and expensive" system.

Abby Jitendra, principal policy adviser at JRF, said: "Millions of us are carers or need care, and this number will surge in the future, but families are being left to navigate a neglected system – paying sky-high costs, sacrificing work to care, and too often going without the support they need.

"We need to build a care system that works like a public service: universal, affordable, reliable and fair. That means bold reform now – not another decade of drift."

Do you provide unpaid social care? Email moneyblog@sky.uk to get in touch, or comment using the form at the top of this page.

British Airways, easyJet, Jet2, Ryanair, Tui and Wizz Air were less punctual in the 12 months to the end of April than in 2019, consumer group Which? has found.

Tui had the worst performance out of the airlines included in the research into delays, which was based on Civil Aviation Authority data.

Just 59.2% of UK flights took off within 15 minutes of the scheduled departure time in 2024/25, down from 67.2% in 2019.

Which?'s Naomi Leach urged customers to check if they are entitled to compensation.

"It is always worth putting a claim in with your airline and escalating the complaint if it refuses to pay," she said.

Airlines have blamed air traffic control (ATC) staff shortages and industrial action, which would mean they are not required to pay compensation.

National Air Traffic Services (NATS), the UK's ATC provider, insists it is fully staffed, but European air traffic management body Eurocontrol has said the number of ATC officers in some parts of the network is 10-20% short.

What did the airlines say?

Tui said punctuality is a high priority but ensuring flights are not cancelled is "even more important" as holidaymakers "want to fly to their destination".

EasyJet said it does "all possible" to minimise delays, while Wizz Air said some delays are outside its control and it does "whatever we can to avoid cancellations".

Ryanair said: "We don't provide comments for Which? fake stories."

British Airways and Jet2 declined to comment.

Parents have been working hard over the summer holidays, and Bella Italia thinks they should be rewarded. 

The Italian restaurant chain is offering parents a free main meal when they order a dish for their children. 

With main meals costing up to £18.49 and the children's menu starting at £7.99, it means there's a chance to make a nice saving. 

The deal is available until Sunday 21 September. To claim it, you need to sign up on the Bella Italia website to receive a voucher. 

Terms and conditions to be aware of... 

Firstly, only one parent can enjoy a free main course per table with the purchase of a full-priced adult or children's meal. 

The cheapest eligible main course will be the one you get for free. 

It cannot be used in conjunction with any other offer, set menu, voucher or discount.

It's also not valid at Center Parcs locations, London Paddington, Leicester Wigston, or Dover restaurants.

Check the full terms and conditions here. 

Having to ask for a toilet code at a restaurant or cafe can be frustrating - but one celebrity chef has been blamed for taking it to a whole new level.

A Welsh council is set to spend £280,000 on new public loos next door to a restaurant in Colwyn Bay, run by Great British Menu chef Bryn Williams.

Williams, a Michelin Bib Gourmand winner, does not allow non-customers to use its loos - despite them being funded by public money.

Councillor Cheryl Carlisle said the facilities, which Williams leases from a council-built building, should be made public instead, according to BBC News.

Despite setting aside the money for the new public toilets, a final decision is yet to be made by Conwy council on how it's spent. 

The matter is set to be discussed at a council committee next Monday.

We want to know what our readers think. Should the chef lift his ban, or is he entitled to make the rules? 

Let us know what you think in the comments, using the form at the top of the page.

By Sarah Taaffe-Maguire, business and economics reporter

Bad news has begotten bad news.

After data showed government borrowing in August was the highest in five years, the value of the pound dropped, and government borrowing became yet more expensive.

The pound dropped below $1.35 for the first time in a week, a fall from a high of $1.37 on Wednesday evening. 

It was even worse against the euro, with the value of the pound reaching a more than six-week low and falling below €1.15. 

It means buying things priced in dollars or euros has become more expensive for people who use and are paid in pounds. 

Government spending also became costlier, as the interest rate payable by the government on its benchmark 10-year loans ticked up to the highest level in two weeks, before easing off. 

Long-term government borrowing costs also increased. 

If you've ever wondered just how much your handbag is worth, a contents insurer has got the answer. 

According to Aviva analysis, the average value of a handbag and its contents is now worth a third more than four years ago. 

The typical insurance claim for a handbag is £1,633 this year, a 34% increase compared with an average of £1,217 in 2021. 

Carolyn Scott, head of home and travel underwriting at Aviva, says that the value of your average carryall - including phones, jewellery, sunglasses and beauty products - "can soon add up". 

She also says "the jump in claims costs could also - in part - be explained by a possible increase in people investing in more expensive handbags, which can run into the hundreds or thousands of pounds". 

"While home policies will provide a basic level of cover for handbags as part of your contents in your home, it's worth considering optional personal belongings cover, which will protect your possessions anywhere in the world," she adds. 

"You could also consider taking out accidental damage insurance, which would provide cover for spills and rips that happen in the home." 

If the value doesn't sway you as you consider insurance, maybe a horror story from Aviva will - the insurer says one of the most expensive theft claims it's taken for a handbag totalled more than £20,000.

York has been named Britain's most prosperous city outside London, according to a new report.

The city's job offering and quality of life have blown its competitors out of the water in PwC's new growth report.

A thriving high street, good transport links and better housing were among the factors that put York at the top of the annual leaderboard.

The report ranks British cities based on metrics like house prices, earnings, healthcare facilities, crime rates, and schooling.

Edinburgh and Bristol came second and third in the study, followed by Exeter and Swindon.

Plymouth, Southampton, Reading, Portsmouth and Norwich complete the top 10.

Some of the names in the bottom 10 might surprise you, with Manchester, Liverpool and Birmingham all making an appearance.

See how your city performed below...

Government borrowing was higher than expected at £18bn last month, according to official figures.

The Office for National Statistics said it was the highest August borrowing figure for five years.

Most economists had expected government borrowing to come in at £12.8bn. 

Borrowing for the first five months of the financial year was £83.8bn - £16.2bn higher than the same period a year ago.

The figure will cause a headache for Chancellor Rachel Reeves, who is already expected to announce tax increases at the autumn budget in November to stay on track to meet her fiscal rules and avoid unsettling financial markets.

ONS chief economist Grant Fitzner said: "Although overall tax and National Insurance receipts were noticeably up on last year, these increases were outstripped by higher spending on public services, benefits and debt interest. Total borrowing for the financial year to date was also the highest since 2020."

James Murray, the chief secretary to the Treasury, said the government has a "plan to bring down borrowing" to ensure taxpayer money is spent on the country's priorities. 

"Our focus is on economic stability, fiscal responsibility, ripping up needless red tape, tearing out waste from our public services, driving forward reforms and putting more money in working people's pockets," he said. 

Analysts have warned the figures mean tax rises at the autumn budget are now inevitable. 

Martin Beck, chief economist at WPI Strategy, said: "The £10 billion buffer the Chancellor pencilled in against her key fiscal rule in March has almost certainly gone. That means tax rises in November look inevitable."

If you're thinking of heading to the pub this weekend, it might be worth popping into your local Young's. 

It's offering customers who use its On Tap app a free pint, glass of wine or diet Coca-Cola until 21 September. 

The drinks included in the offer are: 

• Young's Original
• Asahi Super Dry
• 175ml glass of Morande Coleccion Privada Sauvingnon Blanc
• 175ml glass of Morande Coleccion Privada Merlot
• 16oz Diet Coke
• 16oz Coca-Cola Zero Sugar
• 330ml Coca-Cola 

New and existing app users can claim the deal. 

Add one of the drinks above to your basket in the app, and the treat will be automatically redeemed at the checkout. 

It's worth checking your local Young's pub is taking part in the deal here.