UK seals deal to end Digital Services Tax and transition to global system October 21, 2021 The UK has agreed to scrap its Digital Services Tax on online giants like Amazon in a move that will stop Joe Biden slapping tariffs on British goods. An agreement was struck with the EU and US yesterday on how to transition from the Digital Services Tax to a new global system agreed by G20 [...]
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 [...]
Public sector net borrowing records second highest September ever October 21, 2021 The UK public sector net borrowing (PSNB) was £21.8bn in September 2021, the second highest September borrowing since monthly records began in 1993 and only £7bn short compared with September last year. Comparing financial years to September, data from the Office of National Statistics (ONS) also highlighted that PSNB in September 2021 came in second [...]
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 [...]
Chancellor to tighten belt despite tax windfall October 21, 2021 Despite the Chancellor receiving a windfall from the government’s fiscal watchdog raising its forecasts for the economy, he will not use the extra wriggle room renege on tax hikes at next week’s budget. The Office for Budget Responsibility (OBR) will upgrade its forecasts for UK economic growth to around seven per cent next Wednesday, up [...]
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. [...]
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 [...]
Exclusive: London distilleries call on Chancellor to not raise alcohol duty October 20, 2021 London distilleries have urged the Chancellor not to hike alcohol duty at the upcoming Budget. Spirit makers Hayman’s, Beefeater Gin, Brixton Distillery, Half Hitch Gin and East London Liquor Company, called on Rishi Sunak to help the sector be part of the pandemic recovery, in a letter shared with CityA.M. A duty increase on October [...]
Exclusive: London holds the crown as the world’s greenest finance hub October 20, 2021 London reigns supreme as the world’s greenest finance hub, racing ahead of its European rivals to claim the sustainability crown. The City leapfrogged Amsterdam to nab top spot in a closely watched index ranking the world’s biggest finance hubs by their green credentials. The capital has the best sustainability standards in the world, hosting a [...]