Business news 17 August 2023
James Salmon, Operations Director.
UK inflation slows to 6.8% in July as energy prices fall. More Britons opt for apprenticeships over degrees. House Prices, triple lock, tax and more business news that we thought would interest our members.
Congratulations
Congratulations to the England Women’s football team on winning their semi final and getting to Fridays final against Spain.
UK inflation slows to 6.8% in July as energy prices fall
Office of National Statistics (ONS) data show the consumer price index (CPI) measure of inflation fell to 6.8% in the year to July, down from a rate of 7.9% in June. Matthew Corder, deputy director of prices at the ONS, said falling gas and electricity prices drove down inflation last month when a change to the energy price cap came into force. However, core inflation, which strips out food and energy prices, remained at 6.9%. Food price rises stood at 14.9% – seven times higher than a year ago – despite a significant fall from the June 17.3%. With inflation still more than three times the Bank of England’s 2% target, many experts expect it will raise interest rates again next month in an attempt to slow price rises. Ruth Gregory, deputy chief UK economist at Capital Economics, said with wage growth and services inflation both stronger than the Bank had expected, its decision makers would look to raise rates from 5.25% to 5.5% in September.
More Britons opt for apprenticeships over degrees
The Times reports on the growing number of Britons opting to “learn as they earn”. Apprenticeships with well-known employers such as Deloitte and Lloyds Bank are now more competitive than winning a place at Oxford or Cambridge. Clare Marchant, chief executive of Ucas, says that when teenagers look at Ucas this autumn, options to apply for apprenticeships and degree apprenticeships will pop up alongside undergraduate degree courses for the first time. Marchant says: “I think that is a game-changer. Unless you make it easy to search and apply for apprenticeships you do not know those choices are there.”
House Prices
UK House Price Growth slowed in June on an annual basis, according to the latest figures. The Office for National Statistics said, on an annual basis, house prices rose 1.7% in June, easing slightly from a revised reading of 1.8% in May (down from 1.9%). The average UK house cost £288,000 in June, which was up £5,000 from a year before but £5,000 below the peak in November of last year.
Markets
Global stock markets fell as investors worried about China’s faltering economy and the prospect of yet more interest-rate increases in the US. Minutes from the Federal Reserve’s meeting in July showed that some members were pushing for higher interest rates and Morgan Stanley cut its forecast for China’s economic growth this year from 5% to 4.7%.
PM pledges to stick with triple lock
The Prime Minister has confirmed his government will stick to its policy on the pensions triple lock despite high inflation making it increasingly expensive. Rishi Sunak said the triple lock, under which the state pension will rise in line with inflation, earnings or 2.5% – whichever is higher – will remain in place, despite warnings that it will cost an extra £2bn this year. “The triple lock remains government policy,” he said. “There is a statutory process on all those things.”
Rising wages will drag thousands more into top tax band
As many as 310,000 higher earners will be pushed into the 45p tax bracket next year, paying out an extra £1.1bn in tax, according to The Centre for Economics and Business Research. This is 10,000 more taxpayers than currently forecast by the Office for Budget Responsibility and a £300m rise in projected revenue. Pushpin Singh of the CEBR said the budget watchdog is underestimating how many taxpayers will be caught. He said: “This stickier inflation is likely to translate into heightened wage growth. Consequently, our projections for average earnings growth, at the time of producing the figures, of 4.4% for the 2024 calendar year is much higher than the OBR’s forecasts of 1.8%.”
UK courts Saudi Crown Prince for investment boost
The Saudi Crown Prince Mohammed bin Salman has been invited to the UK this autumn as ministers seek to capitalise on Saudi Arabia’s £1trn investment programme to diversify its economy away from oil. The Government is also seeking Saudi support for an early trade deal with the Gulf Co-operation Council, the regional bloc that includes Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain. Government analysis suggests that the deal could increase trade with the countries by at least 16%, adding £1.6bn a year to the economy.
SNP lauds income from oil, despite block threats
SNP ministers have applauded record North Sea tax revenues of £9.4bn in 2022/23, highlighting the benefits of Scotland’s energy sector. However, the SNP’s proposal to block new oil and gas exploration has been questioned by the Scottish Tories. Tax revenue per person in Scotland was £696 higher than the UK average thanks to North Sea oil and gas, but public spending was £2,217 per person more. Combining the differences in the spending and revenue figures, the Tories said Scotland’s “Union dividend” was £1,521 per person last year.
Tax office staff increasingly working remotely, figures show
Almost every tax office member of staff now works remotely for part of the week, with around 95% of HMRC staff working away from the office at least once a week. This is higher than during the first COVID-19 lockdown and significantly higher than in 2019. The figures come after a Freedom of Information Act request and follow criticism from the spending watchdog about the department’s poor customer service. An HMRC spokesman stated that there is no link between customer service performance and working from home, and that staff are held to the same standards regardless of their location.
The ‘world’s fastest accountant’ becomes fourth fastest British sprinter
Eugene Amo-Dadzie, a 31-year-old London accountant, has become the joint fourth fastest British sprinter of all time. Clocking 9.93 seconds in the 100m, he tied with Reece Prescod on the British all-time list. Despite his success, Amo-Dadzie insists that athletics is not his top priority. He stated: “That’s my mindset. I’m a husband, a father, a school governor and a chartered accountant.” Amo-Dadzie, who works full-time, will be competing at the World Championships in Budapest. He hopes his story will inspire others, saying, “It’s never too late.”
I wonder if he uses QuickBooks for his accounts?
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Why should you become a CPA member!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid, since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for some time to come.
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When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
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If you have a particular business customer who is late paying and causing you sleepless nights, why not offer it to CPA for purchase on recourse?
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The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
Check our compensation calculator to see how much your business could be owed!
Discover NOW the potential value of late payment compensation hidden in your sales ledger!
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.