Spring has well and truly arrived. As we head towards summer and an eventful May for Britain, here is the latest business and accounting news from April.
Inflation Falls Less Than Expected
The UKs inflation rate remained in double figures, with food and drink prices increasing at their fastest annual rate since 1977.
The Office for National Statistics reported that inflation had fallen to 10.1%, following an unexpected increase to 10.4% in February. The Bank of England had predicted that inflation would fall to 9.8%.
As food and drink became more expensive, Britains poorest households were expected to be affected the most by inflation remaining high.
Chancellor Jeremy Hunt reiterated that the government was on track to halve inflation by the end of 2023.
He said: These figures reaffirm exactly why we must continue with our efforts to drive down inflation so we can ease pressure on families and businesses.
Tupperware Faces Potential Collapse
Tupperware reported that it was facing a potential collapse as fewer consumers purchased its products.
The brand was particularly popular during the middle and latter parts of the 20th century, especially throughout the 1950s and 1960s. However, Tupperwares share price fell by approximately 50%.
The decline was attributed to the companys pricing, the accessibility of similar products and growing consumer demand for more sustainable and environmentally friendly alternatives.
The company began selling its products through US retailer Target and expanding into cooking products in an attempt to attract younger customers.
New Banknotes Printed
Millions of new banknotes featuring King Charles III were printed, although they were not expected to enter circulation until 2024.
Fifty-pence coins featuring the Kings portrait had already entered circulation in December 2022.
The delay in releasing the banknotes allowed businesses time to update machines, including self-service tills, so they could recognise the Kings portrait.
Banknotes featuring Queen Elizabeth II would remain legal tender alongside the new notes. They would only be removed from circulation once they became worn or damaged, or when demand for additional banknotes increased.
Strike Action Planned for May 2023
Strike action was expected to continue throughout May as disputes over pay remained unresolved.
Workers planning industrial action included those in healthcare, the Post Office, education, rail services and the Civil Service.
Unions would continue campaigning for increased pay for their members. Members of the public and businesses were advised to remain aware of the planned action so they could prepare for possible disruption.
UK Government Borrows Less Than Expected
The UK government borrowed less than expected during the 2022/23 financial year, potentially creating greater scope for tax cuts later in the year.
Government borrowing totalled £139.2 billion, which was £13.2 billion less than the Office for Budget Responsibility had predicted. This was partly due to lower-than-expected public spending.
The government planned to reduce borrowing to below 3% of gross domestic product within five years. It was predicted to meet this target comfortably during the 2024/25 financial year.
The reduction in government borrowing could influence the Autumn Statement. Financial experts believed the government would continue trying to strengthen the public finances ahead of the expected 2024 General Election.
HMRC to Issue Tax Credit Renewal Packs
HMRC was set to issue 1.5 million annual tax credit renewal packs for the 2023/24 tax year between 2 May and 15 June 2023.
Customers had until 31 July 2023 to check that the information was correct and notify HMRC of any changes to their circumstances.
Tax credits provide important support to working families, so customers were encouraged to respond when required to avoid missing out on money to which they were entitled.
Tax credits were expected to be replaced by Universal Credit by the end of 2024.
UK Economy Could Receive a Boost
As the country prepared to enter May, the UK economy was expected to receive a potential boost from the Coronation of King Charles III and the Eurovision Song Contest in Liverpool.
UK pubs were expected to benefit from an additional £350 million in sales, while retailers were also anticipating a significant increase in spending during the Coronation.
The event was predicted to generate more economic activity than the Platinum Jubilee weekend in 2022. The Jubilee contributed to increased spending across hospitality, transport, entertainment and food, with sales £87 million higher than during an average bank holiday weekend.
Businesses in Liverpool were also expected to benefit from the Eurovision Song Contest.
With visitors travelling to the city from across the UK, Europe and beyond, hotels, transport providers, bars, restaurants and retailers were expecting increased revenue. The contest was predicted to contribute approximately £30 million to the local economy.
Looking Ahead
That is all the latest news from April. Have a great May, and remember to follow the news for the latest developments affecting business and tax over the coming month.