Business News Roundup: Key Updates and Insights for Your Business

Welcome to our roundup of the latest business news for our clients. Here, we share key updates and insights to help keep you informed about developments that could impact your business.

If you'd like to discuss how these updates affect your business, please don't hesitate to contact us. We provide advice, guidance, and support to help your business thrive!

Spring Forecast Scheduled for 26 March 2025

Chancellor Rachel Reeves has announced that the Spring Forecast will take place on 26 March 2025.

The Office for Budget Responsibility (OBR) must produce two forecasts annually under the Budget Responsibility and National Audit Act 2011. The Chancellor will present the Spring Forecast alongside a speech in Parliament.

While the speech will likely provide necessary updates, it is expected to avoid significant tax changes, as the Chancellor remains committed to the stability brought by having only one major fiscal event per year.

We will monitor developments closely and update you on any announcements affecting your business or personal finances.

If you have questions about how the Autumn Budget or upcoming changes could impact your tax position for the 2025/26 tax year, please feel free to contact us. We are always happy to assist!

For further details, see Government News on the Spring Forecast

Latest Statistics Show Economy Shrinking While Wages Grow

The Office for National Statistics (ONS) has released its latest figures for October, providing a mixed snapshot of the UK economy.

GDP Shrinks for the Second Month

• GDP fell by 0.1% in October, following a similar decline in September.
• Over the three months to October, GDP grew by 0.1% compared to the previous quarter (July 2024).
• The data reflects a recent dip in economic activity, which may stem from businesses waiting for clarity following the Autumn Budget. Concerns about National Insurance increases revealed in the Budget could prolong this trend.

Pay Growth Outpaces Inflation

• Wages grew by an annual rate of 5.2% between August and October, marking the first increase over a year.
• This exceeds inflation, which stood at 2.6% in November, potentially giving households more spending power.

Labour Market Update

• Job vacancies are falling, but the unemployment rate remains at 4.3%.

Impact on the Bank of England Base Rate

• The Bank of England reviewed the base rate last Thursday.
• With inflation at 2.6%, the Bank decided to hold the base rate at 4.75%.

Mixed Signals for the Economy

The economy is sending mixed signals:

• Falling GDP suggests a slowdown in activity.
• Wage growth could support consumer spending but risks driving further inflation.
• A steady labour market offers stability, but declining job vacancies could signal challenges.

Businesses may need to prepare for tightening conditions, balancing cautious optimism with proactive strategies to navigate potential economic headwinds.

Please get in touch with us if you'd like to discuss how these developments might impact your business or personal finances. We're here to support you! Read More...