The Bank of England has admitted to a Michael Fish moment – but economists have plenty to learn from weather forecasters February 27, 2017 So British economists are like the nation's most notorious weatherman when it comes to Brexit? That's what the Bank of England (BoE) has reasserted before the Commons Treasury Select Committee. The nation's number crunchers, said BoE chief economist Andy Haldane, mostly thought Britain's economy would crumble and growth would go into reverse following a Yes vote in last year's EU referendum. [...]
Sterling tumbles against the dollar on speculation over another Scottish independence referendum February 27, 2017 The pound fell during early Asian trading after reports that Scotland could be about to call a second independence referendum. Concerns around a renewed push for Scottish independence have increased in strength since the EU referendum, however yesterday the Times reported that Theresa May is preparing for another vote. The pound tumbled to $1.2392 against [...]
One in five small businesses could close or sell up after business rates hike February 27, 2017 One in five small businesses could close down or sell their business after changes to business rates shoot up in April. Many small businesses are preparing to reduce staff costs to offset the rate rises, according to a new survey from the Federation of Small Businesses (FSB). More than half of those surveyed (54 per cent) expect [...]
The TaxPayers’ Alliance wants business rates to be reformed February 27, 2017 The TaxPayers' Alliance has suggested that business rates are a “bad tax” and could be replaced altogether. The campaign group proposed several reforms to the current system including automating revaluations annually to avoid so-called “cliff edges” when business rates suddenly jump. Today's recommendations come as a result of the first revaluation of business rates since [...]
Government raises awareness of workers’ rights ahead of minimum wage increase February 27, 2017 The government is preparing for the upcoming increases to the national minimum wage and living wage by kicking off an awareness-raising campaign today. The new initiative aims to increase low-paid workers' understanding of their rights to fair pay, following a poll showing that workers earning less that £15,000 a year were confused about what their [...]
Interest rate rise could push 18,000 more into bankruptcy February 27, 2017 A hike in interest rates will push thousands more Britons into bankruptcy, according to calculations from the government’s Insolvency Service. The forecasts show an extra 18,000 people could be pushed into insolvency by 2020 if rates rise by one per cent, says accountancy firm Moore Stephens. If rates rise, 275,900 people will be bankrupted by [...]
Alarm bells sound for UK business as rising costs and inflation threaten to squeeze margins February 27, 2017 Business groups have renewed calls for government to support companies in the upcoming Budget as firms face a toxic mix of rising inflation, spiralling operating costs and squeezed margins. Inflation is starting to climb and is forecast to reach nearly three per cent by the end of the year. Higher input costs are expected to feed [...]
Trump’s economic adviser targets tax reforms ahead of major speech February 26, 2017 US President Donald Trump’s first Budget will focus on tax reforms instead of cutting back popular entitlement programmes, according to his main economic adviser. In an interview with US broadcaster Fox News, Treasury secretary Steven Mnuchin said: “We’re going to start with tax reform. We’re focused on regulatory relief, and we’re focused on a whole [...]
German deputy finance minister insists Greece will not receive debt haircut February 26, 2017 Germany’s deputy finance minister has reaffirmed the country’s hard line stance on refusing a debt haircut for Greece, raising the spectre of a further bailout for the embattled country. Jens Spahn said creditors would not countenance any reduction in the amount Greece owes or the timetable of repayments, in an interview with German radio. He [...]
Economists expect expansion to continue in the UK manufacturing and services sectors February 26, 2017 Closely watched surveys of economic activity are expected to show the UK economy continued to expand in February, despite rising input prices. The manufacturing purchasing managers’ index (PMI), reported on Wednesday, is predicted to show a continued expansion in the sector. The crucial measure of activity for UK manufacturers eased slightly from its fastest pace [...]