Interest Rate Rise Unlikely as Incomes Drop

Interest Rate Rise Unlikely as Incomes Drop

Base rates are expected to remain at 0.5 percent amidst predictions that people’s spending capacity will fall for the fourth year in a year; the first time to happen since the 1870’s.

Deloitte’s economic advisor Roger Bootle says that an expected rise in inflation of above 5 percent this year, along with public sector job losses and tax increases will result in an “all but certain” fall in household incomes.

The average household will be around £780 worse off this year, with predictions that it will not be until 2015 until they return to their peak at 2007.

Bootle said. “Admittedly, there have recently been some not insignificant tax giveaways, including the rise in the personal income tax allowance. However, the net effect of this year’s direct tax changes will still be to reduce household incomes.”

Raising interest rates, as some have urged from the Bank of England, would create even tougher conditions.

Poor economic figures have undermined arguments to increase interest rates to combat inflation.

Meanwhile a report from Lloyds Banking Group reported that a survey of 200 businesses found the majority of them were confident that the economy would rebound.

Ricky Steedman

Ricky worked as an Investigator in the Inland Revenue for over 20 years before founding Steedman & Company in 1987, giving him the experience and knowledge that enabled him to help so many clients over the years.

His appearance on a Channel 4 television programme about the inside workings of Revenue and Customs was watched by 4.1m which sealed his status as one of the most highly respected tax consultants to ever work in Scotland.

Ricky led all tax investigation and COP 9 cases, using his extensive knowledge to help people reach a positive resolution to their situation.

Ricky passed away suddenly and unexpectedly in June 2022 after leaving his indelible mark on the company he founded and headed for over 35 years.

3 replies
  1. Alicia2521
    Alicia2521 says:

    these tax giveaways haven’t come my way yet. hopefully I can find out how to make the most of them soon

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