Welcome to our second newsletter for 2025 aiming to bring you the latest in financial news and updates. This month Porter Garland Chartered Accountants focus on the following topics.
First our lead story:
MIXED VIEWS ON BUSINESS GROWTH THIS YEAR: Most UK businesses are optimistic about the start of 2025, with economic confidence surveys showing plans for growth following a difficult period. However, retail and hiring concerns linger.
According to Lloyds Bank, 70% of businesses expect turnover to rise over the next year, up from 62% in December 2023. Additionally, 73% anticipate greater profitability. Seven in ten leaders in the financial services sector believe Government initiatives will boost growth and competitiveness in 2025.
The survey, which consulted over 160 senior executives, revealed that 68% are confident the chancellor’s plans to “regulate for growth” and introduce a competitiveness strategy in spring will attract foreign investment.
However, these positive findings contrast with other recent reports. The Confederation of British Industry’s (CBI) growth indicator survey warns of a sharp decline in business activity as companies brace for reduced hiring and output in early 2025.
Retailers are also facing challenges, with the British Retail Consortium reporting a six-point drop in consumer spending forecasts for the new year. The Bank of England recently suggested that UK growth likely stalled in the final quarter of 2024, as inflation rose to 2.6%, the highest level in eight months.
While signs of optimism are evident in some sectors, conflicting data highlights the uncertain outlook for the broader economy.
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And other stories:
CHARITABLE DONATIONS THROUGH WILLS HIT £2.1BN IN 2024: In 2024, over 400 estates donated at least £1 million to charities, contributing to a record-breaking total.
OVER 90K SELF ASSESSMENT TAX RETURNS FILED OVER CHRISTMAS: According to HMRC, nearly 92,800 people spent part of their Christmas break completing their tax returns.
HMRC HELPLINE WORKERS SET STRIKE DATES: Public and Commercial Services Union (PCS) members have announced strike action affecting HMRC’s Benton Park View offices in Newcastle.
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