MNI BRIEF: ECB Risks Undershooting Inflation Target -Panetta

MNI China Daily Summary: Thursday, October 31

RPT-MNI INTERVIEW: China Stimulus To Boost Imports - WTO Econ

MNI BRIEF: China Steel PMI Remains Above 50 In October

RPT-MNI INTERVIEW: China Stimulus To Boost Imports - WTO Econ

MNI: PBOC Net Drains CNY471.3 Bln via OMO Thursday

MNI: EUROZONE SEP UNEMPLOYMENT RATE 6.3%

MNI: EUROZONE OCT FLASH HICP +2% Y/Y

MNI: FRANCE OCT HICP +0.3% M/M, +1.5% Y/Y

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

CANADA: Politics Week: Trudeau Facing More Internal Dissent And Departures

CANADA: Politics Week: Trudeau Faces More Pressure To Resign

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

UK FISCAL: Top Ten Budget Takeaways

UK FISCAL
Homepagemarkets-real-timePolitical Risk BulletCEEMEABulletUKGlobalFixed Income BulletsForeign Exchange BulletsRegionMarkets
  1. Pressure on services inflation from minimum wage increases.
  2. Employer NI reformed with a smaller rate increase than expected - but will increase for the average salaried worker and low paid workers more than expected. A chunk of that will be passed on, particularly in lower paid service sectors.
  3. Investment double the level expected over 5 years (GBP100bln) - that is likely to be inflationary too in the medium term.
  4. Gilt remit up just under GBP20bln this year - broadly in line with expectations at GBP296.9bln.
  5. But CGNCR (the main driver of gilt issuance) over the following four fiscal years up a combined GBP91.3bln.
  6. So net-net over 4.5 years that is just over GBP110bln of additional gilt issuance - that is a huge number for the market to digest.
  7. The higher rate of the main capital gains tax (CGT) increased just 4ppt from 20% to 24%, with the lower rate of CGT cut (expected in the 30s).
  8. But there was also a 4ppt increase in CGT on carried interest to 32% (which was discussed initially but expectations had dampened).
  9. The non-dom tax regime has been replaced by a "residence based scheme"
  10. Pensions to be included in estates for inheritance tax purposes from April 2027.
194 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  1. Pressure on services inflation from minimum wage increases.
  2. Employer NI reformed with a smaller rate increase than expected - but will increase for the average salaried worker and low paid workers more than expected. A chunk of that will be passed on, particularly in lower paid service sectors.
  3. Investment double the level expected over 5 years (GBP100bln) - that is likely to be inflationary too in the medium term.
  4. Gilt remit up just under GBP20bln this year - broadly in line with expectations at GBP296.9bln.
  5. But CGNCR (the main driver of gilt issuance) over the following four fiscal years up a combined GBP91.3bln.
  6. So net-net over 4.5 years that is just over GBP110bln of additional gilt issuance - that is a huge number for the market to digest.
  7. The higher rate of the main capital gains tax (CGT) increased just 4ppt from 20% to 24%, with the lower rate of CGT cut (expected in the 30s).
  8. But there was also a 4ppt increase in CGT on carried interest to 32% (which was discussed initially but expectations had dampened).
  9. The non-dom tax regime has been replaced by a "residence based scheme"
  10. Pensions to be included in estates for inheritance tax purposes from April 2027.