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☆ Factbox: Tax hikes and spending cuts: what is the new UK budget plan?
▼ + stars: | 2022-11-17 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 17 (Reuters) - British finance minister Jeremy Hunt announced a series of tax hikes and a more austere approach to public spending in a tough budget plan on Thursday. Here are some of the changes:TAX ON PEOPLEThe highest earning Britons will now pay the top 45% rate of tax on income above 125,140 pounds, rather than 150,000 pounds previously. The government will freeze until April 2028 the threshold on the amount people can earn tax free as well as the level at which the higher rate of income tax kicks in, meaning that with inflation running high, people face paying more income tax. TAX ON BUSINESSBritain's tax on energy company profits will increase to 35% from 25% from January next year until March 2028. Hunt also announced a new, temporary 45% tax on electricity generators, designed to target profits made by low-carbon generators.

☆ UK budget: Britain is bringing back austerity. Here's why
▼ + stars: | 2022-11-16 | by ( Julia Horowitz | ) edition.cnn.com time to read: +5 min

The country is staring down the barrel of a grueling recession, and investors remain on edge as interest rates rise. That requires Hunt, who has acknowledged that Britain faces “extremely difficult” decisions, to pull off a delicate balancing act. When the government adopted an austerity program in 2010 on the heels of the Great Recession, it shaved 1% off the country’s GDP, according to the UK budget watchdog. Just four years ago, former Prime Minister Theresa May pledged to bring nearly a decade of austerity to a close. “If we hadn’t had Brexit, we probably wouldn’t be talking about an austerity budget this week.

☆ UK council tax caps to be eased amid local authority funding crisis -FT
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: 1 min

Nov 16 (Reuters) - British finance minister Jeremy Hunt is set to give local authorities the right to raise council tax by a maximum of 4.99% from 2.99% before having to put the increase to a local referendum, the Financial Times reported on Wednesday citing people familiar with the matter. Hunt will make the announcement in the upcoming Autumn Statement on Thursday, the newspaper reported. Reporting by Mrinmay Dey in Bengaluru; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.

☆ British government to usher in new era of austerity in effort to restore market confidence
▼ + stars: | 2022-11-15 | by ( Elliot Smith | ) www.cnbc.com time to read: +6 min

We're going to see spending cuts," Hunt told the BBC on Sunday, while also promising the government would deliver a new and more focused plan to help with household energy bills beyond April. First, an increase in council tax with local authorities allowed to raise the level of council tax above 3% without a referendum," Raja said. "And second, an increase in both the duration and scale of the windfall tax on oil and gas 'excess profits'." Spending cuts, again executed via "stealth," could take the form of "nominal cash freezes to departmental budgets," Raja said, with spending budgets topped up minimally going forward. "If he wants to reassure the markets, he will have to announce early action in the form of a big fiscal tightening.

☆ Shares and bonds chastened as Fed, ECB urge care
▼ + stars: | 2022-11-14 | by ( Lawrence White | ) www.reuters.com time to read: +5 min

Meanwhile dovish comments from European Central Bank policymaker Fabio Panetta saw European bond yields ease, but short-dated rates remained within striking distance of multi-year highs. Panetta said the ECB needs to avoid overtightening as that could destroy productive capacity and deepen a recession. The benchmark European STOXX index rose 0.26% (.STOXX), and MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) added 0.6%, after jumping 7.7% last week. The dollar index was last seen on Monday at 106.86, still well short of last week's 111.280 top , while the euro eased a touch to $1.032 , after climbing 3.9% last week. The firming dollar also dragged down oil prices, despite the hopes of a demand boost from China's hints at reopening.

☆ Shares and bonds chastened as Fed urges caution
▼ + stars: | 2022-11-14 | by ( Lawrence White | ) www.reuters.com time to read: +5 min

The benchmark European STOXX index rose 0.15% (.STOXX), and MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) added 0.5%, after jumping 7.7% last week. EYES ON CHINAChinese stocks gained on reports that regulators have asked financial institutions to extend more support to stressed property developers. The support for China's property sector, which consumes a vast amount of metals, boosted copper towards a five-month high. The dollar index was last seen on Monday at 107.15, still well short of last week's 111.280 top , while the euro eased a touch to $1.02875 , after climbing 3.9% last week. The firming dollar also dragged down oil prices, despite the hopes of a demand boost from China's hints at reopening.

A look at the day ahead in European and global markets from Anshuman DagaMarkets have got all excited after last week's rip-roaring rally in global equities, a big tumble in U.S. Treasury yields and a bruising sell-off in the mighty dollar. But don't pop the champagne just yet. While U.S. consumer prices rose less than expected in October, pushing the annual increase below 8% for the first time in eight months, Waller said the markets shouldn't get carried away over just one "data point." This week, U.S. retail sales will dominate the data calendar, while markets will also pay attention to euro zone flash Q3 GDP estimates. In the crypto world, after Friday's shocking collapse of cryptocurrency exchange FTX, Bahamas authorities said they were scrutinising the demise of the exchange, co-founded by 30-year-old Sam Bankman-Fried.

☆ Morning Bid: Don't get carried away
▼ + stars: | 2022-11-14 | by ( ) www.reuters.com time to read: +2 min

☆ UK considering big increase in energy windfall tax, sources say
▼ + stars: | 2022-11-12 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 12 (Reuters) - British finance minister Jeremy Hunt is considering a big increase in a windfall tax on oil and gas firms and extending it to power generation firms as he tries to find ways to repair the country's public finances, sources said on Saturday. The newspaper said the tax would raise a total of 45 billion pounds ($53.3 billion) over the next five years. The chairman of Ithaca Energy , a newly listed North Sea oil and gas producer, said on Wednesday that removing incentives to invest in oil and gas would make the British offshore industry uneconomical. Other countries have also introduced windfall taxes on energy companies which have seen their profits surge after Russia's invasion of Ukraine caused gas prices to skyrocket. Shell (SHEL.L) has said it does not expect to pay the British tax in the current quarter because its investments offset it, raising questions about how much extra revenue the government will actually raise with it.

☆ UK's Hunt says budget plan likely to show recession ahead
▼ + stars: | 2022-11-12 | by ( ) www.reuters.com time to read: +2 min

LONDON, Nov 12 (Reuters) - British finance minister Jeremy Hunt said the budget plan he is set to announce on Thursday will include forecasts similar to those of the Bank of England (BoE) which warned of a long recession ahead, The Times quoted him as saying on Saturday. "I think it's very likely ... the question is not really whether we're in recession, but what we can do to make it shorter and shallower," Hunt told the newspaper in an interview. Hunt is trying to repair Britain's public finances - and its tarnished credibility among investors - in a first budget plan since Rishi Sunak replaced Liz Truss as prime minister with a vow to undo her economic policy mistakes. But Hunt was also considering a multi-billion-pound package of support to shield pensioners and benefit claimants from higher power bills, the newspaper said. ($1 = 0.8450 pounds)Writing by William Schomberg; Editing by Andrew CawthorneOur Standards: The Thomson Reuters Trust Principles.

☆ UK's Hunt says he has to raise taxes to fix economy
▼ + stars: | 2022-11-12 | by ( William Schomberg | ) www.reuters.com time to read: +4 min

Truss's "mini-budget" in September set off a bond market slump that sent borrowing costs soaring and ultimately forced her to step down. The newspaper said Hunt planned to tackle a 55 billion-pound ($65.1 billion) hole in Britain's budget by freezing thresholds and allowances on income tax, national insurance, inheritance tax and pensions for a further two years. Thursday's budget plan will include forecasts similar to those of the Bank of England (BoE) which earlier this month warned of a long recession ahead. Hunt said he would seek to work in cooperation with the BoE to control inflation and the global rise in interest rates, which is adding to the strains on Britain's economy. But Hunt was also considering a multi-billion-pound package of support to shield pensioners and benefit claimants from higher power bills, the newspaper said.

☆ UK think-tank urges Hunt to think again on budget squeeze
▼ + stars: | 2022-11-11 | by ( William Schomberg | ) www.reuters.com time to read: +2 min

LONDON, Nov 11 (Reuters) - British finance minister Jeremy Hunt should rethink his plans to raise taxes and cut spending in next week's budget, a think-tank said, warning that many households would need further government help even without a fresh squeeze on the public finances. "It's not at all clear that the Chancellor needs to raise taxes or cut spending in the Autumn Statement next week. NIESR's deputy director for public policy, Adrian Pabst, said the cost of supporting the poorest households did not have to be big. "It seems extraordinary to suggest that this country cannot afford 0.2% of GDP to help the most vulnerable," Pabst said. ($1 = 0.8516 pounds)Writing by William Schomberg; Editing by Catherine EvansOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Markets defy COVID blues
▼ + stars: | 2022-11-07 | by ( Clyde Russell | ) www.reuters.com time to read: +2 min

Elsewhere, The Guardian reported that British Finance Minister Jeremy Hunt is set to outline up to 60 billion pounds of tax rises and spending cuts next week, including at least 35 billion pounds ($39.56 billion) in cuts in the backdrop of the Bank of England's recession warning. Stock markets in the region chalked up gains across-the-board, underpinning Friday's rise in global shares after jobs data came in stronger than expected but also hinted at some slack in the tight American labor market. And staying on what the world's richest man is up to, Elon Musk laid out Twitter's mission, sparking debate on content accuracy. Twitter also updated its app to begin charging $8 for its sought-after blue check verification marks as it seeks to shore up revenue. China stocksReuters Graphics Reuters GraphicsKey developments that could influence markets on Monday:Economic data: Germany Sep industrial output, UK Halifax Oct house prices, Euro zone Oct PMISpeakers: ECB Board member Fabio Panetta speaksEuropean earnings: RyanairReporting by Anshuman DagaOur Standards: The Thomson Reuters Trust Principles.

☆ Sterling rises but gloomy economic outlook remains in focus
▼ + stars: | 2022-11-07 | by ( ) www.reuters.com time to read: +3 min

At 1000 GMT, the pound was up 0.61% against the dollar at $1.14405, and 0.35% higher versus the euro at 87.260 pence per euro. But analysts remain gloomy about the prospects for the currency given the economic outlook. "The combination of a highly concerning economic outlook and a forced dovish repricing in rate expectations look set to keep the pound rather unattractive," ING analysts wrote in a note. Quarterly GDP growth figures on Friday will also provide an important signal for the state of the UK economy. Reporting by Lucy Raitano; Editing by Andrew HeavensOur Standards: The Thomson Reuters Trust Principles.

☆ UK chancellor Jeremy Hunt to announce a tax raid on inheritance -Telegraph
▼ + stars: | 2022-11-07 | by ( ) www.reuters.com time to read: 1 min

Nov 7 (Reuters) - British Finance Minister Jeremy Hunt is to announce a tax raid on inheritance as he attempts to balance the books in next week's autumn statement, the Telegraph reported on Monday. The chancellor and Prime Minister Rishi Sunak have agreed to freeze the threshold above which people must pay tax for another two years which means that more people will have to pay inheritance tax, the newspaper reported. Reporting by Jahnavi Nidumolu in Bengaluru Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

LONDON, Nov 7 (Reuters) - British finance minister Jeremy Hunt will seek to fill a 50 billion pound ($57 billion) hole in the country's public finances with around 30 billion pounds of spending cuts and 20 billion in tax rises, two government sources said on Monday. Hunt is due to present a fiscal statement to parliament on Nov. 17. Britain's Guardian newspaper reported on Sunday that early drafts of Hunt's statement included up to 35 billion pounds of spending cuts and 25 billion pounds of tax rises, while on Monday the Financial Times gave figures of 33 billion pounds and 21 billion pounds respectively. Last week a finance ministry source said broad-based tax rises were likely to fill a "fiscal black hole". Most of the 45 billion pounds of unfunded tax cuts which Kwarteng announced were rapidly reversed, apart from a 16 billion pound cut in payroll taxes which took effect on Nov. 6.

☆ Jeremy Hunt set to outline 60 billion pounds in tax rises and spending cuts, the Guardian reports
▼ + stars: | 2022-11-06 | by ( ) www.reuters.com time to read: +1 min

Nov 6 (Reuters) - British finance minister Jeremy Hunt plans to set out on Nov. 17 up to 60 billion pounds ($67.82 billion) of tax rises and spending cuts, including at least 35 billion pounds ($39.56 billion) in cuts, the Guardian reported on Sunday. Citing a Whitehall source, the newspaper said the figures remained estimates and subject to change, but that Hunt had told staff he was looking for at least 50-60 billion pounds' worth of measures in his autumn statement. Responding to a Reuters request for comment, the Treasury said it does not comment on speculation around fiscal events. Early drafts of the statement to be delivered on Nov. 17 contain plans for up to 35 billion pounds of spending cuts and up to 25 billion pounds of tax rises, likely to include freezing income tax thresholds and targeting dividend tax relief, the Guardian report said. ($1 = 0.8847 pounds)Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Catherine EvansOur Standards: The Thomson Reuters Trust Principles.

☆ UK's Hunt: BoE rate hike 'very tough' for those with mortgages
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: 1 min

LONDON, Nov 3 (Reuters) - British finance minister Jeremy Hunt said the Bank of England's interest rate hike on Thursday would be "very tough" for families with mortgages and businesses with loans. "Today's news is going to be very tough for families with mortgages up and down the country, for businesses with loans but there is a global economic crisis," Hunt told reporters. "The best thing the government can do, if we want to bring down these rises in interest rates, is to show that we're bringing down our debt. Families up and down the country have to balance their accounts at home, and we must do the same as the government." Reporting by Muvija M; writing by Sachin Ravikumar; editing by William JamesOur Standards: The Thomson Reuters Trust Principles.

☆ Morning Bid: Slower, higher, longer
▼ + stars: | 2022-11-03 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in U.S. and global markets from Mike Dolan. U.S. Treasury yields are on the rise again as Fed rate futures now expect a terminal rate as high as 5.15% by May, with pricing for end-2023 rates just shy of 5% too - half a point higher than where futures had priced the terminal rate just one month ago. European Central Bank President Christine Lagarde said the ECB must be "attentive" to Fed policy decisions as it influences global markets - but it cannot just mirror moves in Washington. In banking, Morgan Stanley is expected to start a new round of layoffs around the world over the coming weeks. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Indians revel in Rishi Sunak’s rise to the U.K.’s top job
▼ + stars: | 2022-10-25 | by ( Mithil Aggarwal | ) www.nbcnews.com time to read: +4 min

Narendra Modi, the prime minister of majority Hindu India, quickly congratulated Sunak. “Special Diwali wishes to the ‘living bridge’ of UK Indians, as we transform our historic ties into a modern partnership,” he tweeted. “The reaction is of admiration, aspiration that they could get to a similar position and happiness that one of their own has got the position,” Dogra said of the worldwide reaction among Hindus. Pedestrians walk past paintings of Britain's Prime Minister Rishi Sunak in Mumbai on Tuesday. Sunak visited different temples in London and was seen participating in a cow ritual during his losing campaign for prime minister against Liz Truss in August.

☆ Political chaos tips British firms into deeper slide - PMIs
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +3 min

LONDON, Oct 24 (Reuters) - British businesses are suffering their worst month since January 2021, when they were under a COVID-19 lockdown, as the country's political upheavals compound concerns about inflation and rising interest rates, a survey showed on Monday. German business activity declined at a faster rate than in Britain, although France fared better than both. "More evidence of economic weakness, combined with signs of less heated inflationary pressures, should, all else equal, tone down the (BoE's) appetite to raise interest rates substantially in its November meeting," Beck said. Truss has said she will resign once her successor is chosen at the end of this week. "As night follows day, investment and employment will suffer in the months ahead as companies adjust to the increasingly challenging environment," Williamson said.

☆ Indians pinning their hopes on Rishi Sunak on Diwali
▼ + stars: | 2022-10-24 | by ( Krishna N. Das | ) www.reuters.com time to read: +3 min

NEW DELHI, Oct 24 (Reuters) - Many Indians are delighted at the prospect of Rishi Sunak becoming the first person of Indian origin to become British prime minister on Monday, just as Hindus across the world celebrate Diwali. "Rishi Sunak took oath as an MP on (Hindu holy book) Bhagavad Gita. Former British finance minister Sunak, 42, is a practising Hindu and is known to celebrate the festival of lights. Some Indians are hoping for closer British-Indian ties if Sunak does become prime minister. "@RishiSunak becoming the British PM will be a great Diwali gift for UK, & a reason for celebration in India," former Indian diplomat Rajiv Dogra wrote on Twitter.

☆ VIEW Rishi Sunak to become Britain's new PM, UK markets rally
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: +8 min

LONDON, Oct 24 (Reuters) - Former British finance minister Rishi Sunak will be Britain's next prime minister after his rivals quit the race, which analysts said had relieved some of the nervousness around the outlook for the UK economy, boosting domestic markets. The new Prime Minister needs to confirm their leadership team as soon as possible and provide clarity on their strategy for stabilising the economy and their policy priorities. ART HOGAN, CHIEF MARKET STRATEGIST, B. RILEY WEALTH, NEW YORK:"Coming to a very rapid decision on who the prime minister is going be certainly breathes a sigh of relief into the markets. RUTH GREGORY, SENIOR UK ECONOMIST, CAPITAL ECONOMICS, LONDON:"The fall in gilt yields on the news today that Rishi Sunak will become the UK’s next Prime Minister has reduced the chances of a significant fiscal consolidation. With the pound, just because we have a new Prime Minister in place, all of the issues don't just go away and we still have remarkable strength being enjoyed by the dollar."

☆ UK finance minister Hunt: 'Time for honesty' about economic challenges
▼ + stars: | 2022-10-24 | by ( ) www.reuters.com time to read: 1 min

British Chancellor of the Exchequer Jeremy Hunt walks outside Downing Street in London, Britain October 24, 2022. REUTERS/Peter NichollsLONDON, Oct 24 (Reuters) - British finance minister Jeremy Hunt said on Monday it was time for "honesty" about the economic challenges facing the country as he congratulated Rishi Sunak on becoming the next prime minister. "This is a time for honesty about the huge economic challenges we face, and courage in addressing them," Hunt wrote on Twitter. "We have a PM who can be trusted to do just that - and give us all confidence in the huge potential of our country." Register now for FREE unlimited access to Reuters.com RegisterReporting by Sachin Ravikumar Editing by William SchombergOur Standards: The Thomson Reuters Trust Principles.

☆ UK finance minister Hunt mulling up to 20 bln pounds of tax rises - Telegraph
▼ + stars: | 2022-10-22 | by ( ) www.reuters.com time to read: 1 min

LONDON, Oct 22 (Reuters) - British finance minister Jeremy Hunt is considering up to 20 billion pounds of tax rises in a budget that is due to be set out on Oct. 31, the Telegraph reported on Saturday. The report, which did not cite sources, said Hunt could seek to reform capital gains rules and ditch a two-year government-funded removal of green levies from energy bills. Register now for FREE unlimited access to Reuters.com RegisterReporting by Muvija M; editing by William JamesOur Standards: The Thomson Reuters Trust Principles.

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