Government borrowing plummets thanks to rising tax take December 20, 2024 Government borrowing dropped to £11.4bn in November, £3.4bn lower than last year, as higher tax receipts and lower debt interest gave the government a much needed boost. With the lowest November borrowing in three years, the current budget deficit, or amount of borrowing to fund day-to-day public sector activities, also dropped by more than a [...]
Bank of England holds interest rates and downgrades growth forecasts December 19, 2024 The Bank of England held interest rates at 4.75 per cent today, while downgrading economic forecasts for the UK towards stagnant growth. Only six members of the Bank’s Monetary Policy Committee voted to keep interest rates steady, less than had been expected, as three voted to cut rates by 0.25 per cent citing fears over [...]
Labour’s growth gamble will decide Britain’s future December 18, 2024 Labour’s plan to invest for growth is Keynesianism 101. Delivering on it will require discipline and competence — recent history gives us plenty of reasons to be sceptical, says Damian Pudner Britain’s economic fortunes have hit a moment of reckoning. Public debt has ballooned to an eye-watering £2.8 trillion, roughly 100 per cent of GDP. [...]
Reeves’ pension review pause could be ‘hugely detrimental’ December 16, 2024 Experts have slammed the chancellor’s decision to pause a review into pensions, saying failure to act could “leave millions of people at greater risk of an income shortfall”. Rachel Reeves has reportedly shelved plans to reform pension adequacy in a bid to avoid piling more pressure on business. The Financial Times first reported that it [...]
Growth is easier to destroy than to build December 16, 2024 Missions, milestones, foundations and pledges; Keir Starmer has unveiled them all since winning the election in July, but no amount of visionary rhetoric can compel an economy to grow. Since Labour’s election victory the British economy has whimpered to a halt. GDP flatlined in July and achieved a barely perceptible nudge up in August before contracting [...]
‘Hammer blow’: Family firms call for inheritance tax consultation December 16, 2024 Family businesses are urging the government to consult on changes to inheritance tax (IHT), warning the move represents a “hammer blow” to the UK economy. Some 160,000 family-owned firms – represented by 32 trade associations – have written to Chancellor Rachel Reeves to request a formal consultation on IHT changes in the Budget. The letter, [...]
UK economy ‘at risk of stagflation’ as growth stalls under Labour December 13, 2024 Latest official GDP figures show the UK economy has stopped expanding since Labour took power, creating a headache for Keir Starmer after putting growth at the centre of his government’s mission. The economy unexpectedly shrank by 0.1 per cent in October, according to new data from the Office for National Statistics. It missed economists’ expectations [...]
Cabinet Office to make hundreds of Civil Service redundancies December 12, 2024 Hundreds of jobs are set to be cut by the Cabinet Office, it has been confirmed, in a move which the government department said will create a “smaller, clearer structure”. A total of 400 jobs have been placed at risk at the department which is responsible for a range of functions across government. The Cabinet [...]
Currys reports £32m Budget tax hit December 12, 2024 Consumer electronics retailer Currys has become the latest company to warn about the impact of Labour’s tax raid on its bottom line. In its half-year results for the six months to 26 October 2024, published this morning, management said the estimated cost of recent tax policy changes could amount to as much as £32m. The [...]
2025 will be a year of green shoots for the City December 12, 2024 Changing mood music should gradually shift sentiment in London’s favour – and with the fire power of pension funds 2025 could be a better year than the City has seen in a while, says Steven Fine In New York, investors are in bullish form. I met one very well-known player recently who nearly knocked me [...]
