Weekly Digest – 28 June 2023

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

HMRC late payment interest rates to be revised after Bank of England increases base rate

The Bank of England Monetary Policy Committee announced on 22 June 2023 to increase the Bank of England base rate to 5% from 4.5%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 increase.

Tax gap holds steady at 4.8%

The annual Measuring Tax Gaps publication estimates the difference between the total amount of tax expected to be paid and the total amount of tax actually paid, which has remained the same as last year’s revised estimate of 4.8%.

£180m hydrogen production plan welcomed by Humber Freeport chair

Humber Freeport chair Simon Bird has welcomed Meld Energy’s £180 million hydrogen production plans for Saltend. The selected site is on the former East Hull BP industrial plant, now a multi-user facility owned and operated by PX Group. The plant will add to the world-leading cluster of renewables and low carbon energy businesses already in the region

UK banks agree limited mortgage relief measures for stressed borrowers

British banks agreed on Friday to give homeowners who miss mortgage payments a year of grace before foreclosing and to protect credit scores of borrowers who change loan terms, as the government sought to ease the strain of rising interest rates.

Is recession now ‘inevitable’?

Recession is now inevitable after the Bank of England failed to keep control of inflation, former interest rate setters have claimed.

Surprise rise in retail sales thanks to bank holidays and sun

There was a surprise rise in retail sales last month despite inflationary pressure and rising borrowing costs, official figures show.

Recommendations for UK Pension regulation overhaul after mini-budget chaos.

Work and Pensions Committee Chair recommends restricting the use of LDIs (liability driven investments) to scheme trustees who have the “ability to understand and manage the risks involved”

Government debt above 100% of GDP for first time since 1961

The UK’s total government debt pile in May reached more than 100% of annual national income for the first time since 1961 as state borrowing more than doubled, according to official figures.

Train strikes in July

Thousands of rail workers will strike on three days in July as part of a long-running dispute about pay and conditions.

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