“UK borrows £34bn in December as public sector debt set to increase through 2021”

Jan 22, 2021 | Economy

All our fears of tax rises and decades of austerity could, of course, be completely unfounded. Rishi could go for the go-go option, keep borrowing at low rates, give big companies tax-haven breaks to bring/keep them here, cut VAT and income tax to get us all spending, make Eat Out to Help Out a permanent feature. All of which, in the end, brings in more tax. That’s the theory, anyway. In theory, Brexit was a good idea. And Charles and Di were a perfect match. I could go on. Just don’t tell Rishi.

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“Consumer Confidence Drops Amid Budget Uncertainty”

“Consumer Confidence Drops Amid Budget Uncertainty”

Will they/won’t they? Hit pension tax relief/tax-free lump sums/annual allowance/lifetime allowance? What about Inheritance Tax and Capital Gains Tax? And although they’ve said they won’t touch the rate of VAT, might they extend it? To the cost of our advice, for instance?

“Falling UK wage growth boosts chances of August rate cut”

“Falling UK wage growth boosts chances of August rate cut”

Silver linings and all that. Growth in wages is slowing, (some) inflation is down, which means interest rates are more than likely, I’d say, to come down a bit next month. Long-term, most predictors think they’ll get to and stay around 3.5%, quite a reduction from the current 5.25%.