Weekly Digest – 29 May 2024

Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.

IFS warns of tight fiscal constraints for next government

Britain’s fragile public finances will cast a shadow over the general election campaign, with both Rishi Sunak and Sir Keir Starmer warned of impending fiscal challenges by a leading economics think tank. The Institute for Fiscal Studies (IFS) cautions that the economy faces “the worst of both worlds” — low GDP growth and increased debt interest spending due to interest rates reaching a 16-year high.

How to claim Child Benefit if your child is continuing in further education after their GCSEs.

More than a million parents will receive reminders from this week to extend Child Benefit for their teenagers if they are continuing their education or training after their GCSEs.

Survey suggests growth is slowing ahead of July general election

The UK economy is likely to continue growing at a reasonable clip in the second quarter, but at a slower pace than earlier in the year, a closely watched survey suggests. S&P’s purchasing managers’ index (PMI), which measures activity in the private sector, came in at 52.4. This was down from 54.1 in April and below the 54 expected by economists.

What do businesses want from the general election?

Ending months of speculation surrounding the timing of the election, and with news of falling inflation and a sign of the economy heading in the right direction, Sunak cited that “now is the moment for Britain to choose its future”.  As politicians enter the campaigning period, Insider hears from prominent business names to learn what they want from the powers-that-be.

UK inflation pressure stays hot, dashing hopes for June rate cut

Inflation in Britain eased less than expected and a key core measure of prices barely dropped, prompting investors to pull bets on a Bank of England rate cut next month which could have boosted embattled Prime Minister Rishi Sunak before an election.

General election offers chance to restore UK resilience

Following the surprise announcement of a general election on 4 July, ICAEW is calling on political parties to adopt tangible measures that will boost productivity, support business growth and ensure the UK’s economic resilience.

The UK economy suffers from low levels of investment? That’s just not true says Deutsche Bank

If you ask economists what the biggest problem facing the UK economy has been over the past few decades, most would say low levels of investment. However, economists at Deutsche Bank have questioned this narrative.

Wylfa chosen for new nuclear power station

Wylfa on Anglesey has been chosen as the preferred site for a large-scale nuclear power plant, the UK government said. The site was bought by ministers for £160m from previous developers Hitachi who abandoned plans for a new reactor in 2019.

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