Chancellor Rachel Reeves is preparing to announce tax increases and spending cuts totaling £40bn in the upcoming Budget to address a financial shortfall, including a £22bn gap from the previous government. The plan aims to prevent real-terms cuts to public services while adhering to a rule that all day-to-day spending is funded by taxes, not borrowing. Potential measures include welfare savings and extending National Insurance to employer pension contributions. Prime Minister Keir Starmer has not ruled out a National Insurance increase for employers, despite Labour’s manifesto commitment not to raise taxes on employees. Business groups have expressed concerns about the impact of such tax hikes on economic growth, particularly in the hospitality sector. The Budget will be announced on October 30.

Reported by BBC News - 16/10/2024

A Georgia judge blocked a last-minute order to count ballots by hand in the upcoming presidential election, citing inadequate training for poll workers and potential administrative issues. The hand-count rule, passed by the state’s election board, would have required manual counting of ballots already scanned by machines, which some critics argued could delay certification of results. The ruling was supported by Democratic candidate Kamala Harris, as early voting saw record turnout in the state. Former President Trump, who faces charges related to attempting to overturn Georgia’s 2020 election results, held a rally urging a decisive victory, while Harris continued outreach to Black voters. Several election-related cases are ongoing in the state.

Reported by BBC News - 16/10/24

UK inflation dropped to 1.7% in September, the lowest in three and a half years, primarily due to lower airfares and petrol prices, now below the Bank of England’s 2% target. This inflation rate will inform benefit increases starting in April, but a 1.7% rise would be less than the expected 4.1% increase in the state pension. The Office for National Statistics reported a 10.4% decrease in fuel prices, while food prices saw their first increase since March, affecting items like milk and cheese. The upcoming Budget will involve £40 billion in tax increases and spending cuts, and market expectations are rising for an interest rate cut from the current 5% during the Bank of England’s November meeting, although inflation may rise again due to increased household energy costs.

Reported by BBC News - 16/10/2024