ONS Archives - WRLO Accountants

Inflation falls after UK moves out of recession

WRLO Accountants — Thu, 06 Jun 2024 19:54:33 +0000

The rate of UK inflation fell to 2.3% in the year to April, according to the Office for National Statistics (ONS). Inflation is down from 3.2% in March and is the lowest level since September 2021. However, it is still above the Bank of England’s 2% target. The drop was driven by falling gas and electricity prices after the energy price cap was lowered by Ofgem. The drop in inflation followed news that the UK economy grew by 0.6% between January and March, according to the ONS. It means that the country officially emerged from recession with growth led by the services sector. Despite the improving outlook, the Bank of England held interest rates at 5.25% for the sixth month in a row. The British Chambers of Commerce (BCC) said the fall in the rate of inflation was positive news that increased the likelihood of an interest rate cut in the coming months. David Bharier, Head of Research at the BCC, added: ‘Uncertainty will persist with global conflicts and trade wars threatening supply chains. Real wage costs also continue to grow – our most recent business survey found almost half of firms expect their prices to rise over the next […]

The post Inflation falls after UK moves out of recession appeared first on WRLO Accountants.

Government borrowing falls as Chancellor hints at tax cuts in Spring Budget

WRLO Accountants — Fri, 02 Feb 2024 09:10:37 +0000

Government borrowing fell to £7.8 billion in December 2023 giving Chancellor Jeremy Hunt more scope to make the tax cuts he has hinted at in the Spring Budget. The Office for National Statistics (ONS) data revealed that government borrowing for last December was around half of that borrowed in December 2022. It also showed that interest payable on government debt fell to £4 billion in December 2023, down by £14.1 billion when compared to December 2022. During the World Economic Forum’s annual meeting in Davos, Switzerland, Mr Hunt hinted that he wants to cut taxes The Chancellor said: ‘In terms of the direction of travel we look around the world and we note that the economies growing faster than us in North America and Asia tend to have lower taxes, and I believe fundamentally that low-tax economies are more dynamic, more competitive and generate more money for public services like the NHS. ‘That’s the direction of travel we would like to go in but it is too early to say what we are going to do.’ The Chancellor will present the Spring Budget on Wednesday 6 March 2024. Internet link: ONS website GOV.UK

The post Government borrowing falls as Chancellor hints at tax cuts in Spring Budget appeared first on WRLO Accountants.

UK at risk of recession after economy shrinks

WRLO Accountants — Thu, 04 Jan 2024 13:38:51 +0000

The UK is at risk of recession after revised figures showed the economy shrank between July and September, according to data from the Office for National Statistics (ONS). Gross domestic product, which measures the health of the economy, contracted by 0.1% after previous estimates suggested growth has been flat. Meanwhile, there was zero growth between April and June, after it was first calculated to have risen by 0.2%. A recession is typically defined as when the economy shrinks for two three-month periods – or quarters – in a row. Meanwhile, the UK’s inflation rate fell to 3.9% in the year to November, the ONS confirmed. The fall was bigger than the ONS had anticipated with lower petrol prices contributing to the reduction in the inflation rate. Price increases for bread and cakes are also easing, according to the ONS. David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: ‘Today’s data showing the CPI rate grew at 3.9% in November, a greater slowdown than expected, is welcome confirmation that the headline rate of inflation is continuing to ease. However, prices are still rising from a very high base following multiple economic shocks and core CPI remains stubborn […]

The post UK at risk of recession after economy shrinks appeared first on WRLO Accountants.