Households facing ‘triple threat’ of rising inflation, energy price hikes and tax increases

16th February 2022 Consumer Collections | #inflation

Inflation in the UK increased to the highest rate for three decades in January as the impact of rising energy bills fed into a wide range of goods and services, adding to the squeeze on household living standards according to the latest Office for National Statistics (ONS) said the consumer price index measure of inflation increased…

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Labour market grows but real pay squeeze deepens

16th February 2022 Consumer Collections | #economy

UK wage growth failed to keep pace with the rising cost of living between October and December, Office for National Statistics (ONS) figures show. While wages increased, when taking inflation into account pay was down 0.8% compared to a year earlier. Employees’ regular pay, excluding bonuses, grew by 3.7% between October and December from a…

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Household finance squeeze leads to growth downgrade prediction for 2022

10th February 2022 Global | #economy

The bounce back in the UK economy was stronger than expected last year, but the EY ITEM Club’s Winter Forecast has nevertheless downgraded its projections for UK GDP growth for 2022. The EY ITEM Club believes that UK GDP grew 7.3% in 2021, up from the 6.8% predicted in its previous forecast. Growth of 4.9%…

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Third of consumers will forego foreign holiday or staycation

25th January 2022 Consumer Lending | #cost of living

Over a third of consumers will not spend money on a foreign holiday or staycation in 2022, according to new research by leading price comparison service MoneySuperMarket in a further sign that the cost of living is continuing to rise. The research, which explores consumers major spending intentions in 2022 and how they intend to…

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Record number listed companies cite supply chain and rising costs in 2021 profit warnings

Profit warnings issued by listed companies increased by 19% year-on-year in Q4 2021, with record levels of warnings citing supply chain disruption and rising costs in the final quarter of the year, according to EY-Parthenon’s latest Profit Warnings report. In the final quarter of 2021, UK listed companies issued 70 warnings, up 19 from the…

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Pay packets shrinking for the third time in decade

20th January 2022 Global | #economy

Real wages officially began to fall in November, and the current period of shrinking pay packets is likely to get worse before it starts to ease in the second half of 2022, the Resolution Foundation said in response to the latest ONS labour market statistics. Real regular average weekly earnings wages fell by 1 per…

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Omicron curtails optimism with businesses approaching the new year with caution

Business optimism and output growth across the UK fell in December, reflecting a cooling in economic activity as firms grapple with the effects of the Omicron COVID-19 variant, according to the latest Business Trends report from accountancy and business advisory firm BDO, The BDO Optimism Index slipped by 0.46 points to 103.81, driven largely by the…

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Government announces £1bn Omnicron business support

22nd December 2021 Commercial Credit Management | #economy

The Government has announced £1 billion in support for businesses most impacted by Omicron across the UK. The new measures will mean businesses in the hospitality and leisure sectors in England will be eligible for one-off grants of up to £6,000 per premises, plus more than £100 million discretionary funding will be made available for…

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Bank of England raises interest rate to 0.25% – reaction

17th December 2021 Consumer Lending | #economy

The Bank of England has raised interest rates for the first time in three years amid growing concerns over inflation. The Bank’s Monetary Policy Committee (MPC) voted by a majority of eight to one to raise rates from the historic low of 0.1%. With inflation at a ten year high, the Bank said this was…

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Inflation hits ten year high

16th December 2021 Arrears and Recoveries | #economy

Figures from the Office for National Statistics (ONS) show that inflation hit 5.1% in the 12 months to November, exceeding forecasts of a 4.7% increase and driving the rate further beyond the Bank of England’s (BoE) 2% target. The rate up on the 4.2% recorded a month earlier and means inflation is now at its…

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One in three small firms planning major staff cuts

14th December 2021 Commercial Credit Management | #economy

A third of UK small businesses are planning to make staff redundant over the next few months, rising to more than four in 10 in London, according to a new survey analysis by Moore UK. The research found that 33% of owner-managed businesses in the UK are planning to make redundancies now the safety net…

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Cost of living crisis could slow household recovery

2nd December 2021 Consumer Collections | #economy

Research from PwC suggests the economy will be hit by a triple whammy of a climbing cost of living, higher interest rates and the end of pandemic-related support from the government, with weaker household spending likely to slow the recovery. The analysis says more affluent households will be able to shake off the impact of…

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SMEs post-pandemic business confidence grows

Despite lingering anxieties about the pandemic and a variety of economic and commercial issues, the majority of SMEs believe it is now imperative to begin building back from the crisis. They are ready to step up their business investment, with ambitious plans for recruitment, renewal of equipment and machinery, and both domestic and international expansion…

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