Business Update – 25 September 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Cautious Bank of England hold rates, extends bond reduction plan
The Bank of England kept interest rates at 5.0% on Thursday, saying it would be careful about future cuts, and also held off from running down its bond holdings at a faster pace, avoiding extra budget strains for finance minister Rachel Reeves.
UK’s looming debt crisis, how it will impact your finances?
The UK is facing a financial storm. According to the Office for Budget Responsibility (OBR), national debt is set to treble over the next 50 years, a worrying projection that raises serious questions about the sustainability of public finances. It’s a real and pressing concern that could impact bond yields, currency values, stock markets, and overall economic growth.
Economy set to be less reliant on public sector
The majority of businesses in the UK believe the economy will have less reliance on the public sector over the next decade but are yet to be convinced of the ability of politicians to reduce tax, red tape and the deficit, new data suggests.
UK business chiefs: GenAI a positive disruptor
UK chief executives see implementing Generative AI (GenAI) as an opportunity to change the nature of work and create highly skilled workforces without reducing the number of jobs in the market, according to KPMG’s 10th annual CEO Outlook survey.
Commit to business rates and VAT reforms in Budget, ICAEW says
CBI survey finds UK will become less attractive for firms if workers’ rights reforms are passed
The UK is likely to become a less attractive place to do business in the coming years if Labour’s workers’ rights reforms are implemented in their current form, a new survey has suggested. Some 62 per cent of respondents to a survey by the Confederation of British Industry (CBI) survey and recruiters Pertemps said they think Britain will become a slightly (26 per cent) or much less (36 per cent) attractive destination to invest or do business in over the next five years.
Pensions and capital gains tax in line for budget tax rises, says IFS
Chancellor Rachel Reeves has “limited room for manoeuvre” in the October budget, with pensions taxation and capital gains tax (CGT) best suited to raise revenue, according to a think tank. The Institute for Fiscal Studies (IFS) has said Labour’s manifesto has created a significant constraint on the chancellor’s options.
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