Weekly Digest – 18 December 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
UK economy on ‘recession watch’ after unexpected contraction
The UK economy shrank unexpectedly in October after a fall in production output and stagnation in the services sector ahead of the Budget. GDP fell 0.1 per cent during the month, data from the Office for National Statistics (ONS) showed. Economists had expected a return to modest growth of 0.1 per cent.
Business confidence plummets amid budget hikes
Business confidence in the UK has experienced its sharpest decline in over three years following the October Budget, with companies now bracing for the anticipated economic impact of increased operational costs. According to BDO’s latest business trends survey, which aggregates data from the UK’s key business surveys, corporate optimism dropped to its lowest point since January 2023.
Worker shortages raise doubts over Britain’s plan to build for growth
An acute shortage of construction workers could undermine the foundations of British government plans to get 1.5 million homes built by 2029 in England to help drive economic growth.
The most important factor in UK’s growth problem gets no airtime
In 2007, the UK had more than 3,250 companies listed on the London Stock Market. Today there are fewer than 1,800. Andrew Craig discusses why this matters for the British economy and for British society any why all too few people are aware that this has happened.
Latest GDP data shows economy winded by Budget build-up
Commenting on ONS data that showed GDP fell by 0.1% in October 2024, following a decline in GDP of 0.1% in September, Anna Leach, Chief Economist at the Institute of Directors, said: “It’s concerning to see a further growth disappointment for the UK, with all the major sectors showing falls in activity.”
Paying workers over the festive period
HMRC has published guidance on applying real time information (RTI) and auto-enrolment rules to working arrangements over the Christmas holidays.
Why the UK must reform VAT
“It is not an exaggeration to say that there are hospitals, schools and roads that would not exist today were it not for VAT,” says Professor Rita de la Feria, Chair in Tax Law at the University of Leeds, reflecting on what VAT has done for the UK over the past 50 years. However, she adds in her opinion piece for ICAEW’s How to Fix VAT series: “It is also true that UK VAT is now old and outdated.”
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