Roaring inflation to shove government borrowing back to expected levels October 21, 2021 Roaring inflation will shove government borrowing back to expected levels in the coming months. Surging energy prices, compounded by a jump in the rate of VAT for hospitality businesses, will drive sharp price rises, swelling the government’s interest bill. Further pressure on the public finance from higher debt servicing costs will bring “borrowing in the [...]
Sunak’s budget must navigate the Catch-22 of inflation and recovery October 21, 2021 There have been some pretty bleak backdrops to budget announcements over the years. In March 2008, Alistair Darling faced the daunting task of delivering a budget while the world was in the teeth of the financial crisis. Denis Healy’s April 1979 budget was surely the worst, after the government lost a vote of confidence. The [...]
Evergrande’s plans to offload property unit fall through as default deadline looms October 20, 2021 Embattled Chinese property giant Evergrande’s plans to offload half of its property services unit have fallen through. The deal, which would have raised $2.6bn to pay off its creditors, collapsed after Evergrande decided the purchaser had not met the terms to make an offer. Evergrande was once China’s top-selling developers. But, after years of piling [...]
UK banks’ earnings season is tough one to call October 20, 2021 Wall Street’s biggest banks have reaped the rewards of a booming deal environment, the release of loan loss reserves and swelling deposits. Goldman Sachs, Bank of America and JPMorgan all flexed their muscles as they kicked off US earnings season last week. Now, it is the turn of their British pretenders, starting tomorrow with the [...]
Sunak eyes Covid-19 emergency loan scheme extension at budget October 20, 2021 Chancellor Rishi Sunak is eyeing extending the emerging Covid-19 loan scheme at the budget next week. The Recovery Loan Scheme was scheduled to finish on December 31, but Sunak is reportedly planning on backtracking on the plans. The news was first reported by Bloomberg. Sources told the news organisation discussions on the matter are ongoing. [...]
Kwasi Kwarteng rules out a fourth Covid lockdown over winter October 20, 2021 Kwasi Kwarteng has today ruled out another winter lockdown, after warnings from some scientists that Covid curbs should be re-implemented over winter. The business secretary said he was “concerned” about increasing daily death rates, but pointed out that “at the beginning of the year we had hundreds, if not thousands, a day”. There were 223 [...]
High street faces £1bn business rates increase next year October 20, 2021 Business rates are anticipated to rise £1bn in England next year, unwelcome news for high street firms attempting to recover from the pandemic. September’s Consumer Prices Index (CPI) signals the amount business rates will leap next April, according to analysis from the Altus Group, the country’s largest rating advisory body. The CPI measure determines business [...]
Opinion-in-brief: Rishi, stop dawdling on business rates October 20, 2021 Business rates raise £26bn a year but the tax is unfairly skewered against the retail sector who pay nearly one third of the tax. Only contribute one fifth to UK GDP. Retailers are paying rates bills linked to rental value 2015 – despite very different market conditions. Unaffordable business rates bills have been cited as [...]
Inflation ‘pauses for breath’ in September before racing ahead soon October 20, 2021 Inflation “paused for breath” in September before it races ahead at a fiery pace in the coming months. Prices were 3.1 per cent higher than they were a year ago last month, according to the Office for National Statistics (ONS). The rate of inflation edged back slightly from August’s 3.2 per cent clip and was [...]
Inflation shows unexpected drop in September October 20, 2021 Inflation slowed unexpectedly in September as the Bank of England is set to tackle the acceleration by hiking interest rates. Consumer Prices Index (CPI) rose 3.1 per cent in the year to September, down from 3.2 per cent to August, official data showed. Increased prices for transport were the largest contributor to price rises, at [...]