Inflation returns to 40-year high

The rate of inflation rose to 10.1% in September as the economy felt the effects of rising prices and the fallout from the Mini Budget, according to the Office for National Statistics (ONS). The ONS said the Consumer Prices Index (CPI) measure rose from an annual rate of 9.9% in August to match the recent 40-year high seen in July. The report showed that the largest upwards contribution came from food costs, while fuel provided the greatest downside pressure. It…

Almost six in ten UK adults are struggling to keep up with their bills, according to new research from the Financial Conduct Authority (FCA). The research estimates that 7.8 million people were struggling to keep up with their bills – an increase of around 2.5 million people since 2020. In addition, 60% of UK adults are estimated to be finding it a ‘heavy burden’ or ‘somewhat of a burden’ keeping up with bills. One in four UK adults has said…

A survey conducted by the Institute of Directors (IoD) has found that 42% of UK businesses that trade internationally expect to see an increase in their exports over the coming year. The survey also revealed that 47% of businesses are still finding Brexit challenging, and just 33% envisage opportunities materialising as a result of Brexit. Additionally, 28% of firms reported that supply chain disruption has had a negative impact on their business, and 12% have an exportable product but are…

HMRC has reminded taxpayers that they are now less than 100 days until the deadline for self assessment online return submission. Self assessment taxpayers have until 31 January 2023 to submit their online return for the 2021/22 tax year. According to HMRC, more than 66,000 taxpayers beat the clock and filed their tax return on 6 April – the first day of the new tax year. HMRC is now encouraging others to complete their return as soon as they can…

HMRC has published the latest issue of the Employer Bulletin. The October issue has information on various topics, including: the reduction in the rate of National Insurance contributions making PAYE Settlement Agreement payments and using the PSA1 online form the new starter checklist interactive guidance Making Tax Digital returns and changes to VAT penalties and interest charges the Government Information and Advice Service. Internet link: Employer Bulletin

The British Business Bank (BBB) was supporting £12.2 billion of lending to over 96,000 businesses at the end of March 2022, according to its annual report. As part of its role in reducing regional imbalances the BBB was deploying £900 million of finance and supporting almost 83,000 businesses outside London at the end of March 2022. In addition, its Regional Angels programme made six new commitments totalling £45 million, to help reduce regional imbalances in access to seed and early-stage…

Eight in ten small businesses are finding it difficult to recruit staff, according to a report published by the Federation of Small Businesses (FSB). The FSB’s ‘Scaling up Skills’ report found that over 80% of small firms are flagging a lack of relevant qualifications, skills and experience among candidates as a problem, while 60% say a lack of applicants is also an issue. More positively, five in six small employers provided training for themselves and/or their staff in the previous…

The government has abandoned its plan to abolish the 45% top rate of income tax due to the negative reaction it has received. Chancellor Kwasi Kwarteng first announced the policy in the Mini Budget on 23 September. He has now confirmed that it will not go ahead in a statement on the social media platform Twitter. It has not yet been confirmed whether the same reversal applies to the top rate of income tax on dividends. In a tweet, Mr…

Chancellor Kwasi Kwarteng used the 2022 Mini Budget to announce a series of tax cuts for businesses and individuals. The Chancellor confirmed that the 1.25% rise in national insurance contributions (NICs) that came in this year will be reversed from 6 November, while the Health and Social Care Levy has been cancelled. The planned rise in corporation tax to 25% will be scrapped and the rate maintained at the current 19%. The basic rate of income tax will be cut…

The International Monetary Fund (IMF) warned the UK government against ‘large and untargeted fiscal packages’ following the Mini Budget. The IMF stated that tax measures announced by Chancellor Kwasi Kwarteng in the recent Mini Budget are likely to increase inequality. On 23 September, the Chancellor used the Mini Budget to announce tax cuts worth over £40 billion. Amongst the measures unveiled was a reduction in the basic rate of income tax; the reversal of the 1.25% rise in national insurance…