Latest news with #UKeconomy
The Guardian
2 days ago
- Business
- The Guardian
Retired baby boomers aren't responsible for national woes
While there is much of interest in Phillip Inman's article, it's a bit simplistic to suggest that national woes arise from lazy, early-retiring baby boomers (Get early retirees off the golf course and back to work – why early retirement isn't good for UK plc, 26 July). It's true to recognise that we're in an advantageous position that others aren't, but few of us have the luxurious boardroom pensions he suggests we have. Rather, many of us reached the position by long working hours, and saving for such a retirement. Putting money into saving for a future, rather than buying a new car each year, doesn't make me responsible for low growth of the UK economy. Indeed many early retirees are driving charities through their volunteering work. These charities often now fill the gap left by government austerity. This notion that we can all have happy productive jobs into our 70s is for most a fallacy. Anyone over 55 looking for a job will tell you that companies prefer cheaper 'just done the training' younger candidates over older 'with experience' candidates. For many people, even those like teachers, the sometimes hidden physical demands of their roles make being forced to work longer a frightening experience. Where are the jobs for us oldies to do? If there are any left in this artificial intelligence/technology-driven world, we'd be taking them from the young anyway. Of course for many people, the idea of early retirement is a fantasy and any retirement looks impossible. This is, however, just another example of the ever-widening inequality in society. The solution has to be a wealth tax on those who do suck money out of the economy to fund their excessive lifestyles continuously, and not just in Heydon-DumbletonPathhead, Midlothian
Reuters
7 days ago
- Business
- Reuters
Sterling poised to end 3-day rally vs dollar on economic, tax concerns
July 24 (Reuters) - Sterling was set to snap a three-day winning streak against the dollar on Thursday, pressured by concerns over the UK economy and potential tax hikes. Progress in U.S. trade talks with key partners eased investor worries about a global trade war, sparking a rally in risk assets and lifting the pound earlier this week. However, UK PMI data showed that business activity grew only weakly in July and employers cut jobs at the fastest pace in five months, according to a survey. Such figures are likely to add to speculation about a Bank of England interest rate cut next month. Markets are currently pricing an 80% chance of a rate cut in August and two easing moves by year-end. The pound dropped 0.28% to $1.3544 , after hitting a fresh two-week high early in the session at $1.3588. The dollar edged up versus the euro and the yen after progress in trade negotiations. Sterling weakened against the single currency, which was down 0.16% at 86.81 pence. . The euro hit 86.98 pence last week, its highest level since April 11. The rate differential between the UK and the euro area has been affecting the cross. Markets are pricing in a European Central Bank terminal rate of 1.75%, down from the current 2%, while expecting the Bank of England to cut rates by 85 basis points by the end of next year. 'Fears over strained public finances, the growing likelihood of more tax bumps and its implications for the UK economy are weighing on the pound against the euro,' said Matthew Ryan, head of market strategy at global financial services firm Ebury, after mentioning June data on government borrowing released on Tuesday. Britain's government borrowed £20.68 billion ($27.86 billion) in June. A Reuters poll forecast had pegged public sector net borrowing at a median of £16.5 billion.
Telegraph
22-07-2025
- Business
- Telegraph
Labour voters back plans to stop wealthy non-doms fleeing Britain
Labour voters would back plans to stop ultra-wealthy individuals fleeing the UK after Rachel Reeves's tax raid prompted thousands to leave. On Tuesday, research published by think tank Onward found that nearly three-quarters (69pc) of Labour supporters would back the Government if it exempted the richest from some taxes in return for them paying a small lump sum in cash and investing in the UK economy. Under Onward's proposal, wealthy residents could be exempt from taxes on foreign income, capital gains, and inheritance for 15 years in return for paying a flat £300,000 fee. They would also have to invest £3m into one of the Government's industrial priorities, such as life sciences, clean energy and financial services, to qualify for the tax break. Sir Simon Clarke, the director of Onward, said: 'It is crazy for us to chase wealthy people out of this country when they could be both paying tax and making a hugely important wider economic contribution here.' The proposal comes as Ms Reeves faces mounting pressure from Labour backbenchers and union backers to make the rich pay more. Ms Reeves has already increased taxes since coming to power last year. These include abolishing the non-dom status and tightening inheritance tax rules, along with tax rises on business. However Labour backbench MPs have increasingly called for a wealth tax from the Chancellor to fix Britain's finances. Lord Kinnock, the former Labour leader, said recently that the public was 'fed up' with the richest going 'unscathed'. He said imposing a 2pc tax on asset values above £10m would deliver £10bn to £11bn for the Treasury. However, Lord Mendelsohn, Labour's former business spokesman, said: 'A small group of wealthy individuals pay a significant proportion of the tax we rely upon. I do not agree with some colleagues that we should wave goodbye to the wealthy.' Many wealthy figures have already left Britain, including Goldman Sachs' most senior UK banker Richard Gnodde, Aston Villa co-owner Nassef Sawiris and Charlie Mullins, the founder of Pimlico Plumbers. Henley & Partners, an advisory firm, expects the UK to lose more millionaires than any other country this year as high taxes drive away the wealthy. According to its research, 16,500 millionaires will leave the UK in 2025 - up from 10,800 last year. Andrew Griffith, shadow business secretary, said: 'There is nothing good about wealth creators fleeing the country leaving the rest of us to pay higher taxes or have worse public services.' Last night, a Treasury spokesman said: 'The UK remains highly attractive. 'Our main capital gains tax rate is lower than any other G7 European country and our new residence-based regime is simpler and more attractive than the previous one, whilst it also addresses tax system unfairness so every long-term resident pays their taxes here.'
Zawya
11-07-2025
- Business
- Zawya
Sterling slips as weak growth data fuels rate cut expectations
Sterling slipped on Friday and was trading close to a more than two-week low after data showed the UK economy contracted for the second month, boosting expectations that the Bank of England could lower borrowing costs next month. Gross domestic product shrank by 0.1% after a 0.3% drop in April, the Office for National Statistics said, primarily dragged by weakness in industrial and construction output. "Though it would be wrong to conclude from the GDP data alone that the economy is coming under greater pressure, there are genuine questions emanating from the jobs market and whether it is beginning to fall apart more quickly," said James Smith, an economist at ING. "For the (BoE), it would likely force a rethink on the pace of rate cuts. Until now, officials have appeared highly reluctant to move beyond their recent, gradual once-per-quarter cutting pace." The pound weakened 0.26% to $1.354, while against the euro it slipped 0.2% to 86.35 pence. Yields on short-term gilts , often a reflection of interest rate expectations, were steady after easing about two basis points earlier in the day. Traders are now pricing in a 78.3% chance the BoE could deliver a 25-basis-point interest rate cut in August, versus the 64% probability they were pricing in two weeks ago, data compiled by LSEG showed. Friday's data adds to worries for finance minister Rachel Reeves, with economists saying it looks likely she will need to raise taxes again in the upcoming Autumn budget as the government strives to balance its public accounts. UK markets took a beating last week after the Labour government was forced to pass a highly contested welfare bill that did little to make good on the spending cuts initially hoped for and heightened the uncertainty regarding the sustainability of government finances. Globally, investors were rattled by U.S. President Donald Trump's latest tariff escalation as he said he would impose a 35% rate on Canadian imports next month, while other trading partners are likely to face blanket levies of 15% or 20%. The pound firmed 0.5% against the Canadian dollar and last fetched C$1.855. Analysts have said that Britain's deal with the U.S. has made it less exposed to uncertainty on the trade front, which was also reflected in the pound's 8% rise against the U.S. dollar so far this year.
Reuters
11-07-2025
- Business
- Reuters
Sterling slips as weak growth data fuels rate cut expectations
July 11 (Reuters) - Sterling slipped on Friday and was trading close to a more than two-week low after data showed the UK economy contracted for the second month, boosting expectations that the Bank of England could lower borrowing costs next month. Gross domestic product shrank by 0.1% after a 0.3% drop in April, the Office for National Statistics said, primarily dragged by weakness in industrial and construction output. "Though it would be wrong to conclude from the GDP data alone that the economy is coming under greater pressure, there are genuine questions emanating from the jobs market and whether it is beginning to fall apart more quickly," said James Smith, an economist at ING. "For the (BoE), it would likely force a rethink on the pace of rate cuts. Until now, officials have appeared highly reluctant to move beyond their recent, gradual once-per-quarter cutting pace." The pound weakened 0.26% to $1.354, while against the euro it slipped 0.2% to 86.35 pence. Yields on short-term gilts , , often a reflection of interest rate expectations, were steady after easing about two basis points earlier in the day. Traders are now pricing in a 78.3% chance the BoE could deliver a 25-basis-point interest rate cut in August, versus the 64% probability they were pricing in two weeks ago, data compiled by LSEG showed. Friday's data adds to worries for finance minister Rachel Reeves, with economists saying it looks likely she will need to raise taxes again in the upcoming Autumn budget as the government strives to balance its public accounts. UK markets took a beating last week after the Labour government was forced to pass a highly contested welfare bill that did little to make good on the spending cuts initially hoped for and heightened the uncertainty regarding the sustainability of government finances. Globally, investors were rattled by U.S. President Donald Trump's latest tariff escalation as he said he would impose a 35% rate on Canadian imports next month, while other trading partners are likely to face blanket levies of 15% or 20%. The pound firmed 0.5% against the Canadian dollar and last fetched C$1.855. Analysts have said that Britain's deal with the U.S. has made it less exposed to uncertainty on the trade front, which was also reflected in the pound's 8% rise against the U.S. dollar so far this year.
