Weekly Digest – 23 October 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
October budget 2024 predictions: what Rachel Reeves could announce
With the Labour government set to present its first budget on 30 October, anticipation is mounting as businesses and individuals alike brace for potential tax changes and spending shifts.
Consumer confidence reaches five-year high
UK consumer confidence rose 1.7 percentage points in the third quarter of 2024, according to the latest Deloitte Consumer Tracker.
Eight focus sectors named in UK Government’s Industrial Strategy
The UK Government has published a green paper to start delivery of its Industrial Strategy, outlining the eight sectors which will form the focus. The green paper was published at the start of the International Investment Summit.
Britain’s Autumn Budget Exodus: data reveals that it’s not just millionaires leaving the UK
Cornerstone Tax, a leading UK property tax expert, has revealed that Britain’s exodus could reach far beyond its wealthiest residents, as new projections from the Adam Smith Institute predicts a 20% decline in the number of millionaires in Britain during the current Parliament.
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Welcome signs of improved labour supply but businesses worried about cost of employment
Commenting on the release of labour market data, Alexandra Hall-Chen, Principal Policy Advisor for Employment at the Institute of Directors, said: “The decrease in economic inactivity and increase in the UK’s employment rate shown in today’s statistics are welcome signs of improved labour supply. “However, our own data shows that business leaders are concerned about the impact of the Employment Rights Bill on the cost of employment
Plunging UK inflation spurs rate cut bets, offers budget relief for Reeves
British inflation slowed sharply last month and key price gauges watched by the Bank of England also fell, bolstering bets on a November interest rate cut and helping finance minister Rachel Reeves before her first budget.
Corporation tax hits record high, but beware the golden goose
HMRC’s latest annual corporation tax statistics show that annual corporate tax receipts increased by 10% in the year to March 2024 to another record of £93.3bn. This increase was hardly surprising following the jump in the main rate of corporation tax from 19% to 25% at the start of the year. But the fact that an increase of more than 30% in the main rate of corporation tax led to an annual uptick in receipts of only 10% is interesting and, presumably, means that UK taxable corporate profits are declining.
UK at critical moment to transform economy
Government must offer clear, stable policies for the UK to tackle the domestic and international economic, social and technological challenges ahead, ICAEW members told. Ahead of the Budget, panellists at ICAEW’s recent Annual Conference urged the government to set out a coherent investment, industrial and skills strategy as Britain continues to suffer from lacklustre productivity. The challenge for policymakers is to grasp the opportunities of structural transformation and make sure the economy works better for people in the next 10 to 20 years.
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