Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Bailey warns employer tax hikes may delay interest rate cuts

by November 19, 2024
November 19, 2024
Bailey warns employer tax hikes may delay interest rate cuts

The Governor of the Bank of England, Andrew Bailey, has cautioned that the recent increase in employers’ National Insurance contributions could create uncertainty over future interest rate cuts.

Addressing MPs on the Treasury Select Committee, Bailey noted that while inflation has been falling faster than anticipated—prompting the Monetary Policy Committee (MPC) to reduce interest rates to 4.75% earlier this month—the hike in employer taxes announced in last month’s Budget represents “one of the biggest uncertainties ahead”.

Bailey explained that if higher employment costs lead to job cuts, it could soften the labour market, necessitating a more gradual approach to lowering interest rates. “There are different ways in which the increase in employers’ National Insurance contributions announced in the Autumn Budget could play out in the economy,” he said. “A gradual approach to removing monetary policy restraint will help us to observe how this plays out, along with other risks to the inflation outlook.”

His comments come amid mounting concern from the business community. Over 70 major retailers—including Tesco, Marks & Spencer, Sainsbury’s, Asda, and Next—have written to Chancellor Rachel Reeves, warning that the “sheer scale” of new costs will make job losses “inevitable”. Economists predict that up to 100,000 jobs could be lost over the next five years due to the increased financial burden on businesses.

Bailey also highlighted that inflation within the UK’s services sector remains excessively high and is “incompatible” with the Bank’s target of bringing overall inflation back to 2%. Official figures due to be released tomorrow are expected to show a rise in the Consumer Price Index (CPI) to 2.1% in October, driven by increasing household energy bills.

Market traders are now adjusting their expectations, with many not anticipating another reduction in interest rates until early next year.

Read more:
Bailey warns employer tax hikes may delay interest rate cuts

0
FacebookTwitterGoogle +Pinterest
previous post
‘Morning Joe’ co-hosts bend the knee at Mar-a-Lago to try and ‘reset the relationship’
next post
Top 7 Stunning Destinations Like Santorini You Should Visit

You may also like

Business reaction to Reeves’s spring statement: confidence remains...

March 26, 2025

EU Border App Delayed, Risking Long Queues for...

April 20, 2024

National Insurance rise to be reversed in November

September 22, 2022

Thames Water risks running dry by spring 2025...

December 10, 2024

Businesses in battle to find skilled staff

March 27, 2023

IFS Urges Caution on Tax Cuts in Upcoming...

February 27, 2024

Nationwide to buy Virgin Money for £2.9bn

March 7, 2024

Broadband must be accessible to all, peers told

February 28, 2023

Manufacturing sector shrinks for third month as exports...

October 3, 2022

Report finds the UK is Europe’s most “advanced...

January 12, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved