Page 4 - Uk Economy

Euro, sterling plunge on dour business activity data, UK mini-budget

Sterling was set for its biggest weekly decline against the U.S. dollar in two years after it touched a fresh 37-year low of $1.1022. The pound was last down 1.9% at $1.1049.

UK scraps corporation tax hike, lifts cap on banker bonus to boost economy

The UK government on Friday scrapped a corporate tax hike and lifted a cap on bankers' bonuses in a contentious bid to boost the faltering economy. Treasury chief Kwasi Kwarteng made the announcement at Parliament as he presented a mini-budget to lawmakers. The U.K. government is expected to publish an emergency budget statement Friday outlining how it plans to slash taxes, tame soaring inflation and boost economic growth as a recession looms on the horizon. Treasury chief Kwasi Kwarteng's mini-budget, to be presented to lawmakers, is expected to scrap a planned increase in corporation tax. Prime Minister Liz Truss, who became the U.K.'s leader less than three weeks ago, has repeatedly stressed that her Conservative government's core mission is lowering taxes to drive economic growth. She declared this week that she is ready to make unpopular decisions such as boosting bankers' bonuses to attract jobs and investment. The Institute for Fiscal Studies predicts that even though Frida

UK PM Liz Truss says she'll slash taxes despite economic crisis

UK Prime Minister Liz Truss said Tuesday that she's ready to make unpopular decisions such as boosting bonuses for wealthy bankers in order to get the country's sluggish economy growing. Speaking before an emergency government budget statement on Friday, Truss said tax cuts were key to spurring economic growth, even though they benefit the wealthiest more than the poorest. We do have to take difficult decisions to get our economy right, Truss said. We have to look at our tax rates. So corporation tax needs to be competitive with other countries so that we can attract that investment. Truss, who has been prime minister for just two weeks a period overshadowed by the death of Queen Elizabeth II faces immediate pressure to deliver on her promises to tackle a cost-of-living crisis walloping the UK and an economy heading into a potentially lengthy recession. She has already announced a cap on household energy bills that means average costs for heating and electricity will be no more t

Global race to hike interest rates tilts economies towards recession

BofA sees UK and euro area falling into recession in the fourth quarter as surging energy costs take their toll on economies this winter

Fitch cuts India FY23 GDP growth forecast to 7%; world GDP growth at 2.4%

At a more macro level, Fitch now expects world GDP to grow by 2.4 per cent in 2022 - revised down by 0.5 percentage points (ppt) since the June assessment

UK unemployment hits lowest since 1974 but jobs boom is fading

However, the fall was not a sign of health in Britain's economy which is at risk of a recession

Cost of living in UK: Why PM Liz Truss' low-tax strategy won't work

Cost of living: why Liz Truss' low-tax strategy won't work

Liz Truss vows energy crisis action after becoming Britain's new PM

In her first speech as Prime Minister, Liz Truss says her government will 'transform Britain into an aspiration nation'

Britain slips behind India to become world's sixth biggest economy

The former British colony leaped past the UK in the final three months of 2021 to become the fifth-biggest economy

More UK energy aid to come under incoming leader, says Nadhim Zahawi

Zahawi's remarks come as economic headwinds build against the UK, with the Bank of England predicting a recession lasting more than a year amid surging inflation

UK's financial support for Ukrainian military to run out by end of 2022

UK citizens are starting to realize the scale of sacrifices they have to make for the sake of Kiev and fearing surging gas prices in the country

Searing inflation in the UK pushes the Pound to a near 37-year low

The currency is trading around $1.18, less than 4 US cents away from its weakest level since 1985 against the dollar, underscoring the challenges facing the British economy

UK economy shrank record 11% in 2020, worst since 1709: Govt data

This was a bigger drop than any of the ONS's previous estimates and the largest fall since 1709, according to historical data hosted by the Bank of England

UK inflation hits double digits in July for the first time in 40 years

The Consumer Prices Index rose 10.1% in July in the UK from a year earlier after a 9.4% gain the month before

UK economy shrinks in second quarter, sharpening recession fears

The statistics office said health spending was the biggest contributor to the fall, as the government scaled down coronavirus testing, contact tracing and vaccination programs.

As UK heads for recession, here's who could control finances in new govt

With the Bank of England predicting inflation topping 13% in the fall and a recession lasting through 2023, the next incumbent of 11 Downing Street will be under immediate pressure

UK heading for recession on BOE view even with Liz Truss tax cuts

Tory leadership favourite has pledged $47-bn tax giveaways

The case for rate hikes heading for contested territory as recession looms

A parade of Federal Reserve officials in recent days has sought to emphasize this message - though a slump isn't their forecast

UK already in recession as cost of living crisis hits household incomes

The UK economy is already in recession as the cost of living crisis has devastating consequences for household incomes, a leading think tank has concluded

UK economy unexpectedly jumps in May as doctors and travel agents get busy

Britain's new finance minister, Nadhim Zahawi, welcomed the signs of growth but said there was no room for complacency