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Economics

  • Budget borrowing will slow Bank of England rate cuts, economists warn

    October 23, 2024

    Chancellor Rachel Reeves is hoping to raise £40bn in next week's Budget to help fund higher spending on public services. This will largely come through higher taxes.

  • Reeves planning national insurance on employer pension contributions, as workers spared

    October 23, 2024

    The move would raise £15.4bn, which would go a long way to filling the £40bn which Reeves hopes to raise through a combination of tax rises and spending cuts.

  • Autumn Budget: The growth case for hiking capital gains tax

    October 23, 2024

    We don't know exactly what form the changes will take and we don't know how much the Chancellor expects to raise, but reforms are coming.

  • The walls are closing in on the Chancellor

    October 23, 2024

    With just one week to go until the Budget (arguably one of the most consequential in recent memory) economists, investors, analysts (and most certainly journalists) are scouring everything from tea leaves to official data for indications of what exactly the Chancellor is going to say next Wednesday. Most people agree that her choices are limited [...]

  • Andrew Bailey: Regulators must not be complacent on shadow banking threat

    October 22, 2024

    Andrew Bailey, Governor of the Bank of England, warned regulators need more tools to deal with threats to financial stability today as he sounded the alarm on the “opaque” nature of the ‘shadow banking’ sector. In a speech at Bloomberg’s Global Regulatory Forum in New York, Bailey drew attention to the systemic risks posed by [...]

  • UK economy receives hefty growth upgrade from IMF

    October 22, 2024

    The international fiscal watchdog now expects the UK to grow 1.1 per cent in 2024, up from a previous forecast of 0.7 per cent.

  • Borrowing figures show Reeves is in a fiscal bind ahead of Budget

    October 22, 2024

    The latest figures showed that borrowing in September exceeded expectations yet again, driven by higher government spending.

  • It’s hard work working out what ‘working people’ means

    October 22, 2024

    Politicians do like to lump people together. In recent years we’ve had the squeezed middle, the just-about-managing, hard working families and (who could forget?) Nick Clegg’s “alarm clock Britain.” To this list of amorphous jargon we must now add “working people.” Labour figures have been leaning on the phrase for months, not least as part [...]

  • Bank of England to cut interest rates to 2.75 per cent, Goldman predicts

    October 21, 2024

    The US investment bank argued that Bank Rate would fall to as low as 2.75 per cent by November next year, whereas it had previously expected the terminal rate to be three per cent.

  • ‘Highly damaging’: Capital gains hike would make UK even less competitive

    October 21, 2024

    Lifting capital gains tax (CGT) would damage the competitiveness of the UK’s already poor tax regime, new analysis suggests. Research by the Tax Foundation suggests that the UK’s tax regime ranked at 30th out of 38 OECD countries in terms of competitiveness, up one place due to the introduction of the full-expensing policy last year. [...]

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