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Economics

  • Further tax rises ‘a good bet’ after Chancellor’s borrowing blow

    January 22, 2025

    Borrowing in the month of December was at its third highest level since monthly records began back in 1997, excluding only the pandemic and 2009.

  • Bank of England: Goldman Sachs expects deep interest rate cuts

    January 22, 2025

    Markets are significantly underestimating the chance that the Bank of England will have to step up the pace of cutting interest rates, Goldman Sachs has argued. Traders anticipate just two interest rate cuts this year with one more cut priced in for 2026, which would leave the benchmark Bank Rate at 4.0 per cent. It [...]

  • Inheritance tax: Bill for Britain’s ‘most hated tax’ hits record

    January 22, 2025

    HMRC collected £6.3bn in inheritance tax in the last nine months, but with changes to the code announced in Budget, this bill is expected to get bigger.

  • UK economy: Borrowing overshoots expectations as interest bill spikes

    January 22, 2025

    The figures come shortly after a bout of instability in the gilt market.

  • UK economy: Compulsory liquidations hit 10-year high

    January 21, 2025

    Figures released from the Insolvency Service showed that there were 3,320 compulsory liquidations in 2024, the highest number for 10 years.

  • UK economy: Has the Budget broken the jobs market?

    January 21, 2025

    Unemployment rose to 4.4 per cent in the three months to November, up from 4.3 per cent previously and the highest since last May.

  • Sterling suffers as first Trump tariffs set for February introduction

    January 21, 2025

    In response to questions about the potential timing of new tariffs, he said: "I think we'll do it 1 February".

  • Bridgewater founder Ray Dalio: UK economy at risk of ‘debt death spiral’

    January 21, 2025

    Ray Dalio, founder of hedge fund Bridgewater Capital, warned that the UK economy was at risk of a “debt death spiral” following the recent bout of bond market instability. In an interview with the Financial Times, Dalio warned that the government faced the prospect of having to borrow more and more from financial markets in [...]

  • UK economy: Headache for Bank of England as wage growth accelerates

    January 21, 2025

    Wage growth picked up towards the end of last year, new figures show, revealing the continued persistence of price pressures in the UK economy. According to figures released by the Office for National Statistics (ONS), annual regular pay growth averaged 5.6 per cent in the three months to November, up from 5.2 per cent previously. [...]

  • UK economy: Does Labour’s economic hotchpotchism matter?

    January 21, 2025

    Although gilt jitters have eased, the embattled Chancellor now faces a new and far more serious criticism.

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