UK Economics On 30 October Chancellor Rachel Reeves delivered Labour’s much anticipated budget to the House of Commons, which included £40bn in tax rises. An increase in employer national insurance from 13.8% to 15% on salaries above £9,100 made up the brunt of this increase, raising an additional £25bn per year. Other measures included increasing capital gains tax, with the lower rate rising from 10 … Continue reading News Briefing – 11/11/2024
UK Economics On 10 October the UK government published a set of proposals to reform employment law, as part of its manifesto commitment to deliver a new workers’ bill of rights. The 28 policies include day one employment rights, abolishing fire and rehire and updating trade union legislation. On 11 October the Office for National Statistics announced that the UK economy grew by 0.2% in … Continue reading News Briefing – 14/10/2024
UK Economics On 3 October Andrew Bailey, Governor of the Bank of England, announced that the Bank may start being a “bit more aggressive” in cutting interest rates moving forward. This has come after the Bank held its base rate at 5.0% in September. Bailey’s announcement has prompted a rise in hot money flows exiting the UK. On 3 October the Pound fell 1% against … Continue reading News Briefing – 08/10/2024
UK Economics On 26 September the rating agencies S&P and Moody’s both downgraded Thames Water’s credit rating by five levels to the equivalent of CCC+. The embattled firm has 11 days to refinance £530mn of debt or risk government renationalisation. The Department for Transport has commissioned a review into the HS2 project, which may lead to HS2 Ltd being brought under the direct control of … Continue reading News Briefing – 30/09/2024
UK Economics On 19 September the Bank of England chose to hold its base rate at 5%. This came after CPI inflation remained at 2.2% in August, unchanged from July. Also on 19 September, Thames Water announced it would be going to the High Court to seek an agreement with its lenders to extend its debt terms. The embattled firm, currently £18bn in debt, has … Continue reading News Briefing – 23/09/2024
UK Economics Data released on 4 June showed that admissions to private hospitals hit a record high of 898,000 over the course of 2023. This comes as many patients turn away from the NHS, which has been beset by worker shortages and record waiting lists. On 5 June the Conservatives unveiled a new campaign, claiming that a Labour government would cost the average household £2000 … Continue reading News Briefing – 11/06/2024
UK Economics On 22 May the Office for National Statistics announced that the UK’s CPI inflation rate fell to 2.3% in April. This came in above market forecasts for 2.1% CPI growth, but nonetheless marks the first time since mid-2021 that inflation has returned to the Bank of England’s official 2% ±1% target range. Higher than expected UK inflation has led investors to bet that the … Continue reading News Briefing – 03/06/2024
UK Economics On 14 May the Office for National Statistics announced that UK wage growth stood at 5.7% in the three months to March. This came in above analysts’ expectations of 5.5%, indicating persistent inflationary pressures in the UK labour market. Despite this, mortgage brokers continued to lower mortgage rates this week, as markets increasingly bet that the Bank of England will cut its base … Continue reading News Briefing – 20/05/2024
UK Economics On Wednesday, 8 May government sources reported that HS2 Ltd. is set to be provided with a £1bn injection of taxpayer money, to fund the construction of a tunnel connecting Old Oak Common and Euston Station. The injection is set to end months of uncertainty around HS2’s London terminus. On 9 May the Bank of England’s Monetary Policy Committee voted to hold its … Continue reading News Briefing – 12/05/2024
UK Economics On 2 May the OECD released new forecast data for the UK economy. Its projections suggest that the UK economy will grow by just 0.4% this year, slower than any G7 country except Germany. Average inflation will stand at 2.7% over 2024, the highest rate in the G7. UK mortgage rates have ticked up over the past two weeks, as markets widely anticipate … Continue reading News Briefing – 06/05/2024
