Economy Archives - WRLO Accountants

Price rises most likely response to US tariffs

WRLO Accountants — Fri, 11 Apr 2025 08:36:21 +0000

Price increases are the most likely response to US tariffs by affected firms, according to a survey conducted by the British Chambers of Commerce (BCC). The survey found that 32% of firms with trade exposure to the USA say they will increase prices in response to the tariff. Alongside increasing prices, 15% said they would seek alternative suppliers, while 13% said they expected to absorb the costs. Shevaun Haviland, Director General of the BCC, said: ‘This data sets out very clearly the immediate impact of US tariffs and the extent of business concern. With retaliatory moves by other countries likely to escalate, the prospect of a global trade war is increasing, alongside a widening of the economic fallout. ‘But there is strong support for the government’s approach to continue negotiation and not immediately retaliate. We believe a deal can be done as the US has already been open to talks. But firms don’t want to have all our eggs in one basket and want to see closer trading relationships with the EU and other markets. ‘They do not consider this to be an either/or scenario and we must continue to pursue a three-pronged approach of better trade relations with the […]

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No further tax increases in Spring Statement

WRLO Accountants — Tue, 01 Apr 2025 09:37:04 +0000

Chancellor Rachel Reeves announced ‘no further tax increases’ in the 2025 Spring Statement. The Chancellor’s Autumn Budget contained a record £40 billion in tax increases. However, it did not raise personal taxes including, Income Tax, employee National Insurance contributions or VAT. Ms Reeves had pledged one fiscal event a year and confirmed that no taxes would be raised at the Spring Statement. Instead, the Chancellor made a number of announcements on spending and economic forecasts. The forecast from the Office for Budget Responsibility (OBR) halved the UK’s growth in 2025 from 2% to 1%. However, Ms Reeves pointed out that the Organisation for Economic Co-operation and Development (OECD) downgraded this year’s growth forecast for every G7 economy. The OBR forecasts show that inflation will average 3.2% this year before falling ‘rapidly’, meeting the Bank of England’s 2% target from 2027 onwards. Ms Reeves said that defence spending will increase to 2.5% of GDP, by reducing overseas aid. This means an extra £2.2 billion for the Ministry of Defence in the next financial year to address ‘increasing global uncertainty’. The government will spend a minimum of 10% of the MoD’s equipment budget on innovative technology, boosting production in places such as […]

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Higher than expected inflation underlines business challenges

WRLO Accountants — Tue, 04 Mar 2025 17:22:17 +0000

The higher-than-expected rise in the rate of inflation underlines the real challenges businesses face, according to the British Chambers of Commerce (BCC). The consumer prices index (CPI) measure of inflation rose to 3% in January, up from 2.5% in December, according to the Office for National Statistics (ONS). Economists had expected inflation to rise to 2.8% in January. The increase was driven by rises in the prices of air fares, food and non-alcoholic drinks and private school fees, added the ONS. The data underlines the inflationary pressures in the economy right now and the ‘real challenges businesses are facing’, said Stuart Morrison, Research Manager at the British Chambers of Commerce. He continued: ‘Firms are having to deal with significant cost burdens which threaten to fuel inflation further. Within weeks they’ll be facing the hikes in national insurance contributions and the minimum wage. ‘The inflation landscape, coupled with ongoing global risks and the looming threat of US tariffs, is likely to give the Bank of England more food for thought, as it charts a cautionary path to further interest rate cuts. ‘Businesses are crying out for cost-pressures to be eased so that they can invest, recruit and trade – driving forward […]

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