Weekly Digest – 07 August 2024
Welcome to our Weekly Digest – stay in the know with some recent news updates relevant to business and the economy.
How do interest rates affect inflation and mortgages?
Hopes have been raised that lower levels of inflation will mean interest rates cuts and in turn lower mortgage costs.
Directors’ economic confidence hits three-year high in July
The IoD Directors’ Economic Confidence Index, which measures business leader optimism in prospects for the UK economy, bounced to +7 in July 2024, from -14 in June. This is the highest result that the Index has registered since July 2021 (+22), which was also the last time the Index was positive.
When will UK interest rates fall next?
Hidden annual cost of employee sickness is up £30 billion since 2018
Rising workplace sickness is costing UK businesses billions every year, according to a new report by IPPR. New analysis from the think tank reveals the annual hidden cost of employee sickness has risen by £30 billion since 2018. Most of this increased cost (£25 billion) is from lower productivity, with only £5 billion due to a rise in sick days.
Business aviation flights from Farnborough Airport generate £1.9 billion for the UK economy
A new study by CBI Economics has found that business aviation flights from Farnborough Airport contribute £1.9 billion of Gross Value Added (GVA) to the UK economy annually. The report, titled ‘Getting Business Going – The economic benefits to UK plc of business aviation at Farnborough Airport,’ also reveals that these flights support the equivalent of 23,000 full-time jobs, stemming from the enhanced connectivity and travel assurance provided by the airport.
HMRC late payment interest rates to be revised after Bank of England cuts base rate
The Bank of England Monetary Policy Committee announced on 1 August 2024 to reduce the Bank of England base rate to 5% from 5.25%. HMRC interest rates are linked to the Bank of England base rate. As a consequence of the change in the base rate, HMRC interest rates for late payment and repayment will reduce.
Government shelves £1.3bn UK tech and AI plans
The new Labour government has shelved £1.3bn of funding promised by the Conservatives for tech and Artificial Intelligence (AI) projects, the BBC has learned. It includes £800m for the creation of an exascale supercomputer at Edinburgh University and a further £500m for AI Research Resource, which funds computing power for AI.
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