Weekly Digest – 11 December 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
Bank of England governor flags ‘biggest issue’ in light of National Insurance hike
The governor of the Bank of England, Andrew Bailey, has revealed what he considers to be the “biggest issue in the immediate future” in the aftermath of the Budget at the end of October. Bailey highlighted the business response to the government’s National Insurance increase and said the impact would be crucial for determining the pace of interest rate cuts next year.
BCC economic forecast: rising business costs to hit wider economy
The British Chambers of Commerce (BCC) Quarterly Economic Forecast (QEF) has revised down growth expectations for 2024, but marginally improved GDP expectations for 2025 and 2026. Increased government spending is likely to boost GDP, however business investment and trade are likely to suffer in 2025 – through the impact of the national insurance rise and major global uncertainties.
Economic update: UK growth hit by global and domestic pressures
Economic conditions in the UK are becoming more problematic, despite another cut in interest rates. ICAEW’s Economies Director Suren Thiru discusses the implications.
Confidence levels approach Covid lows amongst business leaders
The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, fell to -65 in November 2024 from -52 in October and for the fourth month running. This brings business confidence in the wider UK economy to close to its record low, in April 2020 (-69) at the onset of the Covid pandemic, and marks the second lowest reading of the Index since it began in July 2016.
CBI downgrades UK economic growth forecasts after Budget piles pressures on firms
The UK economy is set to witness shallower growth than previously expected as business investment is constrained by Budget cost pressures, according to new research. The CBI (Confederation of British Industry) has downgraded its growth projection for 2024 and 2025 and predicted an uptick in inflation in its latest economic forecast.
UK house prices surge in November as market gains steam
British house prices jumped in November by much more than expected, adding to signs of a strengthening property market mortgage lender Halifax said on Friday, but it warned that affordability challenges for buyers remain.
Households increasingly worried about rising rent and mortgage costs
Over half of UK households are concerned about rising rent or mortgage costs, with four in 10 Brits admitting that they are very concerned about rising household costs.
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