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Economics

  • Tax hikes would ‘take strain’ as headroom shrinks

    April 23, 2025

    Chancellor Rachel Reeves will likely announce a raft of tax increases to “take the strain” of higher public spending in areas including defence and health, leading economists have warned.  The last Autumn Budget saw a historic rise of £40bn in taxes as the Office for Budget Responsibility (OBR), the fiscal watchdog, said the tax burden [...]

  • Government borrowing in March dwarfs expectations

    April 23, 2025

    Government borrowing overshot expectations as it hit £16.4bn in March, official data has revealed.  Ballooning levels of borrowing will likely come as a blow to Chancellor Rachel Reeves, who is under pressure to keep public finances in balance.  Reeves left herself £9.9bn at last month’s Spring Statement as she made around £14bn of cuts, mainly [...]

  • IMF slashes UK growth forecast as tariffs create ‘significant slowdown’

    April 22, 2025

    The IMF has downgraded its UK growth forecast by 0.5 per cent this year as President Donald Trump’s trade war brings global tariff rates to “centennial highs”.  The IMF said the UK economy would grow by 1.1 per cent growth this year, reflecting leading forecasters’ worries about the ongoing global trade war between US and [...]

  • Reeves’ tax rise to push up inflation, BoE’s Megan Greene warns

    April 22, 2025

    Rachel Reeves’ national insurance tax rise will push up inflation and lead to a “shake-up” of the labour market, Bank of England rate-setter Megan Greene has warned. In an interview with Bloomberg Television, Greene said she was particularly concerned about “weakness in output” for the best part of a year as she suggested Reeves’ tax [...]

  • Will the price of gold keep going up? 

    April 22, 2025

    The US-China trade war rumbles on. Investors are digging their trenches. The dollar is losing its force while the price of gold is going ballistic.  A week ago, UBS made what some saw as a bold prediction that gold would reach $3,500 per ounce by December 2025. That milestone has already been hit. Scarred stockholders [...]

  • Businesses on the brink: Company closures surge amid fears over UK economy

    April 22, 2025

    Businesses across Britain are being shut down at a rate not seen since the financial crash, City AM has found, in a major warning sign for the health of the UK economy. More than 1,100 companies have faced winding-up orders in the first fifteen weeks of 2025, according to an analysis of published insolvency notices [...]

  • Small firms splash out £25bn on tax compliance as HMRC accused of ‘poor service’

    April 22, 2025

    Small firms are set to stump up a combined £25bn on tax compliance this year, a leading industry body has said, as it accused HMRC of failing to answer phone calls or letters.  Calls for a vast reform of the UK’s tax system have come from leading think tanks and policymakers for several years.  But [...]

  • ‘Appeasement cannot bring peace’: China warns nations not to bow to Trump trade demands

    April 21, 2025

    China has warned nations not to bow to President Donald Trump in trade negotiations and promised to fire back if deals come at its expense as the country hits back at tariffs imposed by the US. The fresh comments follow reports from the Wall Street Journal that the US would use discussions with key trading [...]

  • Staff at small businesses suffer falling wages

    April 18, 2025

    Staff at small and medium-sized companies (SMEs) saw their wages fall at the end of March, new analysis suggests, as firms wrestled to absorb the impact of Chancellor Rachel Reeves’ national insurance tax hikes.  Data released by the Office for National Statistics this week suggested that wage growth across the wider UK economy has exceeded five [...]

  • Jobs market saw March boost ahead of ‘Awful April’ 

    April 17, 2025

    Job postings steadily increased in March in signs that employers have built some resilience ahead of tax hikes and sweeping cost rises in what has been labelled ’Awful April’.  Active job postings grew by 3.3 per cent compared to the month before as London saw the second highest increase across the country, according to the [...]

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