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Economics

  • Government ‘would breach fiscal rules with minor rate rise’

    November 5, 2024

    The Chancellor would be in breach of her own fiscal rules if interest rates remain just 30 basis points higher than the fiscal watchdog forecasts, Office for Budget Responsibility (OBR) economists have said. Giving evidence to the Treasury Committee, OBR member Tom Josephs told MPs that his colleagues conducted analysis that found “a change of [...]

  • Why the Budget complicates life for the Bank of England

    November 5, 2024

    Just when it seemed that inflation was finally coming under control, the government has announced a big increase in public spending.

  • Top economists cast doubt on Reeves’ Budget growth pledge

    November 4, 2024

    Top economists are split on whether last week's Budget will deliver a boost to the UK economy over the next five years, a City AM poll has revealed, as the Chancellor tries to calm markets.

  • Bank of England set to lower interest rates as Budget dampens bets for 2025

    November 3, 2024

    The Bank of England is expected to lower interest rates this week, while markets are betting on fewer cuts next year after forecasts suggested the new government's first Budget will push up inflation.

  • US reports worst jobs growth since December 2020

    November 1, 2024

    The US has reported its worst jobs growth since December 2020, as only 12,000 new jobs were added to the economy during September. This was significantly below the 113,000 forecast by analysts, leaving economists describing the numbers as “weak”. However, unemployment held steady at 4.1 per cent, while average hourly earnings rose 0.4 per cent [...]

  • Eurozone inflation rises faster than expected in October

    October 31, 2024

    New 'flash' figures from Eurostat showed that inflation rose back up to 2.0 per cent, rising from 1.7 per cent in September and slightly higher than markets had expected.

  • Labour’s inheritance tax reforms ‘threaten the very fabric of the countryside’

    October 31, 2024

    In yesterday's Budget, the Chancellor announced a sweeping overhaul of the inheritance tax system, including changes to a relief which had allowed agricultural land to be passed on tax-free.

  • What will the Budget mean for the UK economy?

    October 31, 2024

    “This budget delivers one of the largest increases in spending, tax and borrowing of any fiscal event in history,” Richard Hughes, chair of the OBR said.

  • Tax burden to rise to historic highs after Labour’s first Budget, OBR says

    October 30, 2024

    "This budget delivers one of the largest increases in spending, tax and borrowing of any fiscal event in history," Richard Hughes, chair of the OBR said following the Budget.

  • Autumn Budget 2024: All the key announcements

    October 30, 2024

    After weeks of speculation, Rachel Reeves has delivered her first Budget as Chancellor to the House of Commons. The Budget was the first from a Labour government in 14 years and the first one ever by a female Chancellor. The 77-minute address to MPs featured a wide range of announcements which City AM has summarized [...]

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