News

Landlords in the UK could soon be hit with capital gains tax bills of up to £90,000 if Labour’s proposed changes to the tax system are implemented.

Chancellor Rachel Reeves has suggested aligning capital gains tax rates with income tax rates, which would significantly increase the tax burden on property owners. Current average capital gains tax bills for those selling property after 20 years of ownership stand at £54,000; however, if the changes go ahead, this could rise by 67% to between £87,000 and £90,000 for properties purchased before 2005, according to estate agent Hamptons.

Rachel Reeves has acknowledged the need for “difficult decisions” on spending, welfare, and tax to address the £22 billion deficit in public finances. As part of her cost-saving measures, the Chancellor has already cut winter fuel payments for 10 million pensioners and scrapped Conservative social care reforms, generating £5.5 billion in savings. Further cuts and tax changes are expected to be announced in her first Budget on October 30.

For many landlords, inflation has already diminished house price gains. David Fell, lead analyst at Hamptons, noted that with inflation rising by 80% over the past 20 years, some property sellers could end up paying taxes on what amounts to a real terms loss. Landlords who bought properties around the market peak in 2007 have seen an average value increase of £109,307, or 57%, yet the Consumer Prices Index has climbed by 67% in the same period. Fell highlighted the disparity, saying: “While on the face of it aligning capital gains tax rates with income tax rates sounds fair, the biggest issue is probably inflation – given that gains from 10 to 20 years ago are being taxed at a single point in cash terms.”

The proposed tax changes could significantly alter the financial landscape for landlords, who are often PAYE taxpayers already contributing a portion of their monthly salary to taxes. Selling a property in a single tax year could result in a capital gains tax bill much higher than comparable income tax and National Insurance contributions on a similar amount earned as salary over time. For instance, a landlord with a £100,000 gain on a property sale would face a £23,280 capital gains tax bill, whereas if the same amount were earned over two years as salary, the tax would be a lower £20,957.

This potential increase in tax bills may discourage many landlords from selling properties, contributing to a reduction in rental housing supply and deterring new investors from entering the market. Fell pointed out that this could widen the gap between personal and corporate tax rates, further complicating investment decisions.

In anticipation of the proposed changes, members of the Royal Institution of Chartered Surveyors have observed a surge in landlords selling properties. The supply of new rental homes has also dropped significantly in some regions, with East Anglia seeing a 59% decrease in new landlord instructions to estate agents in the three months to July, and the East Midlands experiencing a 37% reduction.

As the Budget approaches, the potential alignment of capital gains tax with income tax looms large for landlords, who are weighing the costs of continued investment against the backdrop of a rapidly evolving tax landscape. The proposed changes are expected to not only impact existing landlords but also influence the broader rental market and property investment dynamics across the UK.

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Landlords could face £90,000 capital gains tax bills under labour’s proposed tax changes

If so, how often is acceptable? What if the contact is unwanted?

The Employment Tribunal recently considered these issues in the Toure v Commissioners for HM Revenue and Customs case.

Ms Toure joined HMRC in 2019 and is a French national of African origin and a Muslim. She had a disability as defined by the Equality Act 2010. Comments were made about her accent and her appearance, including being described as being a “beautiful black woman”. She was also asked why she wore a headscarf.

During a team meeting in August 2020, Ms Toure’s line manager (who kept a list of his team’s birthdays) acknowledged her birthday to the team. Ms Toure then emailed her line manager, explaining that although she had appreciated the birthday wishes, she did not want her personal information shared. She asked to be removed from the list.

Ms Toure subsequently raised an informal complaint and later a formal grievance about how her expenses claim had been handled and the lack of training opportunities.

The grievance was mostly not upheld, nor was her second grievance.

Ms Toure went off sick on 30 June 2021 for work-related stress. She asked her line manager to keep correspondence to a minimum and to send it only by email. During the first three weeks of July 2021, she was contacted 11 times and received another birthday card.

The Tribunal accepted that some of the correspondence was because of Ms Toure’s lack of proactive efforts to report her sickness absence. None of the contact, including the birthday card, was intended to harass her.

However, the Tribunal held that it was unwanted conduct due to Ms Toure’s disability. The correspondence had the effect (even if not intended) of creating a hostile and intimidating environment for Ms Toure. This constituted disability-related harassment.

Lessons for employers

Correspondence may be sent with the best of intentions. However, it is difficult for employers to strike a balance, especially as ACAS’s guidance suggests that employees absent because of a mental health condition often benefit from regular contact with their employer.

How can an employer avoid making a similar mistake?

Review Absence policies

Consider whether there are suitable provisions for contact during periods of sickness absence. These provisions should cover the purpose, frequency, and method of contact, and they can be adjusted when necessary.

Consult your employees

Obtain your employees’ views on how, when, and from whom contact should be made. Part of this discussion can be about how much information the employee wants to share with colleagues. Ensure that what has been agreed upon is passed on to anyone else contacting the employee.

Consolidate correspondence

This is particularly important in large organisations. Contact may come from a line manager, HR, payroll teams, or occupational health. Individually, they may not correspond with the employee frequently, but collectively, their correspondence could be significant. Employers also need to take care of automatically generated correspondence, for example, a communication informing the employee that contractual sick pay is being reduced or ending. Ensure that communications come from one person only or at set times wherever possible.

This case is a valuable and important reminder for employers to have clear and transparent policies while remembering the needs of individual employees.

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Should you contact an employee on sick leave?

A new report by The Entrepreneurs Network and Sumer, the UK’s leading mid-market accountancy practice for SMEs, has found that 44% of UK businesses have come close to shutting down in 2024.

The United Growth Report, which surveyed 610 entrepreneurs across twelve UK regions, highlights the significant challenges faced by UK SMEs in a turbulent economic climate. The report will be introduced by Kevin Hollinrake, Shadow Secretary for Business and Trade, at a special reception in the House of Lords.

Despite the dire statistic that nearly half of businesses have faced potential closure this year, the report also sheds light on the broader struggles within the SME sector. Half of the respondents reported difficulties in accessing financial support, while 65% of business leaders believe taxes are too high. High taxes were cited as the largest single obstacle to business growth (14%), closely followed by input costs (13%), difficulties accessing finance (11%), hiring challenges (9%), government bureaucracy (8%), premises costs (7%), and regulatory burdens (7%).

However, the outlook is not entirely bleak. Founders remain optimistic about the future, with 60% expecting revenue growth and 57% predicting a rise in consumer demand. Nearly half anticipate an increase in staff numbers (45%), and 49% are actively targeting growth rather than maintaining stability. This optimism reflects a broader belief among entrepreneurs that key drivers of business success will improve in the coming year.

Warren Mead, CEO of Sumer, highlighted the critical role that SMEs play in their communities, noting, “Our study makes for some uncomfortable reading, especially if you consider the knock-on effect of even one small business going under in a community. These organisations are embedded within the fabric of their local areas, providing much-needed employment, a sense of pride in place as well as a route for social mobility.”

Regional pride is also a notable theme in the report, with 89% of business leaders believing that companies can achieve their full potential without being based in London. However, a significant concern remains over economic inequality between UK regions, with many areas suffering from under-investment, skills shortages, and economic stagnation. Entrepreneurs overwhelmingly agree that Greater London receives preferential treatment, and there is a strong call for government action to reduce these disparities.

The report outlines several key policy recommendations to support UK SMEs and foster a more balanced economic landscape:

– Maintain competitive business taxes and avoid further increases in the Corporation Tax rate.
– Reform Capital Gains Tax to avoid discouraging entrepreneurial activity.
– Make Business Rates fairer and incentivise more productive land use.
– Invest in infrastructure and streamline the planning process to support business development.
– Explore alternative financing methods for construction and increase the supply of business premises by liberalising development regulations.
– Expand mayoral devolution, granting ‘London-style’ powers to metro mayors, and consider devolving more fiscal powers from Whitehall.

Eamonn Ives, Research Director at The Entrepreneurs Network, emphasised the importance of government action to unlock the potential of the private sector: “If the new Government is to make good on its promise to restore meaningful growth to every corner of the nation, it cannot ignore the role the private sector plays in delivering jobs and opportunities. Entrepreneurs don’t tend to wait around for a hand up, but that’s not to say there aren’t things the Government can do to make their lives easier.”

As the UK grapples with economic challenges, the United Growth Report serves as a crucial call to action for policymakers, highlighting the need for targeted reforms and investment to support the nation’s entrepreneurs and ensure sustainable growth across all regions.

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Four in ten UK businesses nearly closed in 2024, new report reveals

The Information Commissioner’s Office (ICO) has issued a reprimand to Bonne Terre Limited, trading as Sky Betting and Gaming, for unlawfully processing personal data through advertising cookies without obtaining user consent.

From 10 January to 3 March 2023, the company collected and shared personal information with advertising technology companies as soon as users accessed the SkyBet website, before they had the opportunity to accept or reject cookies. This led to personalised advertising targeting users without their prior consent or knowledge.

The ICO launched an investigation following a complaint from Clean Up Gambling, which raised concerns that Sky Betting and Gaming might be misusing personal data to target vulnerable gamblers. Although the investigation found no evidence of deliberate misuse, the regulator concluded that Sky Betting and Gaming’s use of cookies was not lawful, transparent, or fair. In response to the findings, Sky Betting and Gaming made changes in March 2023 to allow users to reject advertising cookies before any data was shared.

This enforcement action is part of the ICO’s broader effort to ensure that websites offer users a fair and informed choice regarding the use of their personal data for targeted advertising. Last year, the ICO reviewed the UK’s top 100 websites and found that over half were not compliant with data protection laws concerning advertising cookies. Following warnings from the ICO, 52 of the 53 websites contacted made necessary changes, with gossip website Tattle Life remaining the only site that failed to engage and is now under investigation.

Stephen Bonner, Deputy Commissioner at the ICO, highlighted the importance of user consent in online advertising. “We’ve all seen adverts online that seem designed specifically for us, such as an ad for trainers after signing up to a gym online,” he said. “Some people may be happy to consent to receive these, but others may not be comfortable receiving similar adverts, especially when it comes to sensitive aspects of our digital activity.” Bonner noted the importance of offering users clear and balanced choices, such as ‘accept all’ and ‘reject all’ buttons being equally prominent, allowing people to easily control how their personal data is used.

The ICO’s action against Sky Betting and Gaming serves as a warning to other organisations that there will be consequences for breaching data protection laws. Bonner emphasized that the ICO will continue to scrutinise other frequently visited websites to ensure compliance, urging businesses to review their cookie consent processes. “Our enforcement action against Sky Betting and Gaming is a warning that there will be consequences if organisations breach the law, and people are denied the choice over targeted advertising,” Bonner stated.

As part of its strategy to uphold online privacy rights, the ICO has also audited several data management platforms to assess their handling of personal information, with some now under investigation for potential non-compliance with data protection laws. The ICO plans to publish updated guidance on the use of cookies and tracking technologies later this year, as well as its stance on the ‘consent or pay’ business model following a consultation.

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ICO reprimands Sky Betting and gaming for using cookies without consent

Will Shu, founder and chief executive of Deliveroo, has sold shares worth nearly £15 million, just a month after the food delivery company reported its first profit.

Between September 12 and September 16, Shu sold 9.4 million shares, valued at £14.8 million, to fund personal property investments. Despite the sale, Shu still retains 95.8 million shares in the company, which noted that he does not participate in its annual bonuses or long-term share award schemes.

This move follows Deliveroo’s recent financial turnaround, marking its first profit since going public and announcing a £150 million share buyback. Over the past 12 months, Deliveroo’s share price has risen by almost 30%, reflecting growing investor confidence.

For the six months ending in June, Deliveroo reported a profit of £1.3 million, a significant improvement from the £82.9 million loss in the same period the previous year. The company’s order volume increased by 2% to 147 million, while its gross transaction value rose by 5% to £3.69 billion, as easing food prices and a stabilising cost of living bolstered demand.

Founded in London in 2013, Deliveroo started with Shu, an American-born former banker, personally delivering pizzas to friends. Today, it operates in ten markets with 140,000 delivery riders and partnerships with about 180,000 restaurants. However, its journey as a public company has been tumultuous. Deliveroo’s high-profile initial public offering in April 2021, valued at £7.6 billion, was marred by a 30% drop in share price on its first trading day amid concerns over its business model and the legal status of its riders.

Deliveroo thrived during the pandemic when hospitality venues were closed, but faced challenges as the cost of living crisis led to a decline in orders. To diversify, the company has expanded into non-food products, including a recent partnership with B&Q to deliver home improvement goods within London in as little as 25 minutes.

Despite Shu’s share sale, Deliveroo’s stock remained stable, closing slightly up by ½p, or 0.25%, at 157¼p, suggesting that investors remain confident in the company’s strategic direction and financial performance. As Deliveroo continues to evolve, the market will closely watch how it navigates its expansion plans and maintains profitability in a competitive landscape.

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Deliveroo CEO Will Shu sells £15m worth of shares after company’s first profit

The Niche Vehicle Network has awarded over £2 million to six pioneering UK niche vehicle technology projects, with more than £1 million coming from government funding through the Department of Business and Trade and the Advanced Propulsion Centre UK (APC).

These funds support the Production Readiness and Proof of Concept Competitions, which aim to advance zero tailpipe emission vehicle technologies within the UK’s niche vehicle sector.

Two projects were funded through the NVN Production Readiness Competition, with Carbon Threesixty and Muon Tech leading the initiatives. Carbon Threesixty’s Hi-DEN Gen2 project, in collaboration with Antich & Sons, ULEMCO, and Riversimple Movement, will develop a conformable hydrogen storage solution to meet the growing demand for Fuel Cell Electric Vehicles, enhancing storage capacity, efficiency, and vehicle range. The project will culminate in a functional full-scale hydrogen storage system integrated into a vehicle demonstrator.

Muon Tech, partnering with Rock Engineering Limited and Househam Sprayers Limited, will bring to market the VXM-35, an integrated electric drive and vehicle control unit designed for tight packaging volumes with high functional safety and reliability. This plug-and-play solution is tailored for traction applications in light vehicles and electric power take-off in industrial and agricultural vehicles, including the world’s first electric crop-sprayer.

The NVN Proof of Concept Competition funded four additional projects. Bo Mobility, in partnership with Neave Research, is developing the Boped, an omni-category lightweight e-motorcycle aimed at revolutionising niche production of optimised vehicles for specific use-cases in the new era of e-mobility. FR8 Technology, along with FPW Axles and Volta Commercial Vehicles, will create a 16-tonne low-floor delivery vehicle with direct access to the footpath, utilising a patent-protected drive system that significantly reduces loading height.

Quattro Plant, collaborating with Evparts UK and Inetic, is working on an up-cycled off-highway vehicle converted to a battery electric powertrain, matching the performance and duty cycle of its internal combustion counterparts while achieving zero emissions. The final project, led by Raeon and partnered with Eclipse Performance Vehicles, will demonstrate a high-performance battery prototype with integrated thermal management in a high-performance L5e vehicle platform.

Scott Thompson, Programme Director for the Niche Vehicle Network, praised the diverse range of projects and their contribution to the UK automotive sector’s transition to net zero. He emphasised the importance of these projects in advancing technology and manufacturing readiness levels, expanding the UK low-volume EV supply chain, and creating opportunities for wider adoption in higher volume markets.

Josh Denne, Head of SME Programmes at APC, highlighted the significance of the Niche Vehicle Network Production Readiness Competition in helping UK SMEs take existing low-carbon vehicle technologies from demonstration to production readiness, yielding economic benefits and reducing CO2 emissions. Denne stressed that the journey to net-zero must encompass the entire automotive sector, with innovative niche vehicle technologies playing a crucial role in achieving the UK’s climate goals.

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Over £2m invested in UK niche vehicle projects to drive zero-emission technology

Amazon has announced that employees must return to working from the office five days a week starting January 2, 2024, reversing several remote work policies introduced during the Covid-19 pandemic.

The move will see the end of hot-desking in offices, with individual desks allocated once again, and a reduction in management layers to streamline operations and cut back on unnecessary meetings.

The decision reflects Amazon’s belief that in-person work fosters better collaboration, learning, and company culture. Previously, Amazon required employees to be in the office at least three times a week, depending on team needs. Under the new policy, remote work will only be permitted under special circumstances, such as illness, emergencies, travel to meet customers or partners, or the need for isolation to complete specific tasks like coding.

Amazon also plans to increase the staff-to-manager ratio by at least 15% by the end of the first quarter of next year, as part of a broader effort to reduce managerial layers and enhance decision-making processes. In a letter to employees, CEO Andy Jassy explained that the company’s rapid growth in recent years had led to an increase in managers and bureaucratic processes. He noted the company’s intention to cut down on inefficiencies such as redundant meetings and excessive managerial oversight.

Jassy acknowledged that the return-to-office mandate would require adjustments for employees who have adapted their personal lives around flexible work arrangements. However, he expressed confidence that setting the return date for January 2 would provide ample time for a smooth transition.

This policy shift is expected to generate resistance among some employees. Last year, Amazon’s Seattle headquarters experienced a walkout in protest of the initial return-to-office requirements, as well as changes to the company’s climate policy and workforce layoffs.

While Amazon’s leadership emphasizes the benefits of in-person work, the move highlights the ongoing tensions between corporate objectives and employees’ preferences for flexible work arrangements—a challenge many companies continue to navigate in the post-pandemic landscape. As Amazon prepares for this significant shift, it remains to be seen how the workforce will respond to the new mandate.

Justina Raskauskiene, Human Resources Team Lead at e-commerce marketing platform Omnisend, says: “Only time will tell if Amazon’s decision to bring all corporate employees back for full-time office work will do more harm than good for the company. Taking away the opportunity for people to work remotely can harm a company’s chances of attracting the best talent in the job market. The choice of future candidates will be limited to people working in certain cities that have Amazon offices.’

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Amazon demands full return to office five days a week starting January

Marcegaglia Stainless Sheffield will invest £50 million in building a new Electric Arc Furnace (EAF) to upgrade its existing Sheffield site, as confirmed by the Prime Minister in a statement today.

The state-of-the-art EAF, set to be operational by mid-2026, will significantly enhance the plant’s productivity, increasing its annual capacity to over 500,000 tonnes of stainless steel products. This investment will not only improve efficiency and environmental performance but also create 50 new jobs in the region.

The new EAF will replace the current furnace, which has been in place since 1977 and has been instrumental in producing stainless steel by recycling scrap steel. The upgrade, to be carried out by Primetals Technologies, represents a key step in modernising the site’s capabilities and aligning with industry goals for a more sustainable and decarbonised future. Marcegaglia Stainless Sheffield specialises in producing semi-finished stainless steel products, including billets, blooms, slabs, and downstream wire rod and bar products.

Gareth Stace, Director General of UK Steel, welcomed the announcement, stating, “The investment by Marcegaglia Stainless Sheffield to renew its Electric Arc Furnace delivers yet more highly positive news for the UK steel industry. Coupled with the investment agreement for Tata Steel’s Port Talbot site last week, this brings a much-needed injection of funds into the UK steel sector, which will transition it into a more efficient and decarbonised industry.”

Stace also emphasised the need for the government to support these investments by improving the competitive landscape for UK steelmakers. “All that’s needed now to make these investments count is for the Government to deliver the competitive business landscape and level playing field that our steelmakers need for a bright future. A good start to address competitiveness is to increase compensation from network charges on electricity to 90%, up from 60%,” he added.

The announcement of Marcegaglia Stainless Sheffield’s investment reflects broader industry efforts to modernise and reduce carbon emissions, signalling a positive trajectory for the UK’s steel sector. With significant investments and technological advancements, the UK steel industry is poised for a transformation, driven by efficiency, sustainability, and growth.

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Marcegaglia Stainless Sheffield to invest £50M in new electric arc furnace, creating 50 jobs

Anyone who finds the KYC (Know Your Customer) identification process too intrusive but still wants to place sports bets online or play computer-generated and live dealer casino games on a legally permitted iGaming website may be pleased to learn that there are now hundreds of website operators that don’t enforce the KYC process.

In other words, you can now find many fully licensed and regulated online sports betting casinos that don’t require you to prove you are who you say you are by sending in the necessary documentation, which many people find simply annoying, frustrating, and time-consuming.

Most people refer to these websites as no-KYC betting sites, anonymous betting sites, no-KYC sports betting and casino websites, no verification iGaming sites, or words to that effect.

The number one resource for no-KYC betting sites is the official Bitedge.com iGaming review site, which also has plenty of other useful crypto gambling guides, articles, and information, so let’s dive straight in to discover more about this trusted website.

Which key factors do the Bitedge.com experts consider when looking for secure no-KYC betting sites?

The dedicated 12-strong team of writers and expert researchers on Bitedge consider many crucial factors when scouring the internet for the best no-KYC crypto betting sites. First of all, the site must accept at least one cryptocurrency for deposits and withdrawals, and it mustn’t enforce the KYC process.

The other key factors they focus on when determining which sites might be worth reviewing and recommending are the following:

Licensing and regulation – each site they review must be fully licensed and regulated by at least one of the iGaming industry’s most notable mid to top-tier licensing authorities/gaming commissions. They will only recommend credible no-KYC crypto gambling sites
Ownership – they will only ever carefully handpicked legally permitted sites controlled by well-known, trustworthy operators with good standing in the industry
Website security – the website must have top-notch cybersecurity measures in place to protect each fully registered member’s account, which is typically 128-bit or higher Secure Socket Layer (SSL) cryptographic encryption, plus other firewalls to protect from DDoS and other online cyber threats
Games and software – each site they recommend will only ever have games (thousands of computer-generated and cutting-edge live dealer content) with high or above-average return to player (RTP%) payout percentage rates from market-leading (often multi-award-winning) software providers/game development studios
Bonuses and promotions – the best no kyc betting sites that make it into their top 10 or 20 must ideally have generous bonuses for both new and existing members, including free bets, matching deposit bonuses, and free spins bonuses, but, more importantly, those bonuses must have low or medium wagering requirements attached
Browser/device compatibility – for a crypto gambling site to get featured on their website, each no-KYC gambling site must be accessible in all web browsers, and the games/services/products/features must work well and run smoothly when using any decent Wi-Fi/internet-connected mobile device or PC
Customer service/player support – when they recommend a site, it will also provide 24-hour, professionally trained player support agents who are friendly, responsive, and demonstrate excellent customer service skills
Deposit/withdrawal options and payout speed – when rating and reviewing no-KYC betting sites, it must accept at least one cryptocurrency. However, most of their sites also now accept upwards of ten low-volatility crypto coins, such as Ethereum, Ripple, DogeCoin, Litecoin, Tether, TRON, Avalanche, Cardano, Binance Coin, Bitcoin Cash, and others. They also accept fiat currencies (e.g., £. $, and €) and traditional/alternative online payment methods like Visa, PayPal, Apple Pay, Paysafecard, Mastercard, Trustly, and others, plus transactions on that site will be hassle-free, convenient, and rapid

Finally, the honest, in-depth, and unbiased review should be overwhelmingly positive, and the operator of that site must be fully committed to promoting responsible gambling, running a legitimate and transparent day-to-day operation, and fully comply with data protection and privacy laws and Anti-Money Laundering (AML) laws.

The best thing about today’s safest no-KYC crypto gambling sites, as recommended by the experts on the Bitedge review site, is that you don’t need to complete the annoying KYC process. You can sign up and start playing in seconds with only a few basic details.

Top no-KYC betting sites to try in 2024

The top-rated no-KYC betting sites worth trying in 2024 include the following trusted brands: Bets.io Sportsbook, TrustDice Sportsbook, Playbet.io Sportsbet, BC.Game Sportsbook, and Sportsbet.io. More information about each of these top 5 sites can be found in the Bitedge reviews.

Final thoughts

Before signing up to the first no-KYC crypto gambling website that you randomly stumble upon when searching for one online, the best thing to do would be to read the expert reviews first.

The Bitedge reviews will tell you immediately if that site is safe and will be worth your time. Many seasoned players who have already joined one or more of their top-rated suggestions will tell you that the quickest, easiest, and most reliable way to find a suitable site is to read several reviews and then compare your findings.

For example, some no-KYC sites may have slightly more games than others. Some will accept your preferred cryptocurrency, whereas others won’t, and some will have a much better loyalty rewards program, and so on.

The reviews are designed to give you a much better insight into a crypto gambling site and save you a great deal of time and effort trying to find the important information for yourself. Finally, when joining any of the featured sites, always gamble sensibly and responsibly to ensure you remain within your budget.

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Bitedge.com’s Top Picks for No-KYC Crypto Betting Sites

The Bank of England is under increasing pressure to cut interest rates this week as job vacancies and factory output show signs of a slowing economy.

According to the Recruitment and Employment Confederation (REC), job vacancies fell by 3.2% in August, with nearly 720,000 new adverts, reflecting a sluggish job market as Britain’s factory output contracted for the first time since late 2020.

Separate data from Make UK, the manufacturing industry body, revealed that manufacturers are holding back on hiring amid declining industrial output, highlighting broader economic concerns. This contraction marks the first decline in factory output in four years, adding weight to calls for a further reduction in interest rates.

The Bank of England’s monetary policy committee (MPC) is set to meet this Thursday to discuss interest rates. Last month, the MPC reduced the base rate from 5.25% to 5%, the first cut in four years, as part of efforts to support economic growth. However, Bank of England Governor Andrew Bailey has urged caution, warning that rates should not be cut too quickly or significantly, to ensure continued progress in reducing inflation.

Despite the economic slowdown, investors currently expect the Bank of England to hold rates steady this week. Andrew Bailey’s cautionary stance reflects a balancing act between supporting growth and maintaining control over inflation.

Neil Carberry, Chief Executive of REC, noted the broader impact on the jobs market, stating, “There is no doubt that the jobs market remains slow by comparison to previous years, with summer holidays also affecting the pace of hiring.”

As the UK economy navigates this period of uncertainty, all eyes will be on the Bank of England’s decision and the potential implications for businesses, consumers, and the broader economic landscape. The pressure to ease monetary policy is tempered by the need to sustain progress on inflation, making this week’s rate decision a critical moment for the UK’s economic outlook.

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Bank of England faces pressure to cut rates as job vacancies and factory output decline