With autumn now fully underway, October brought plenty of news and updates from the world of business and tax.
Here is the latest news from the past month.
Wage Growth Overtakes Inflation
Data from the Office for National Statistics revealed that wages increased at an annual rate of 7.8% between June and August.
This was higher than the average inflation rate over the same three-month period, meaning wages had begun to outpace prices for the first time since October 2021. This signalled a slight easing of cost-of-living pressures for some households.
However, a gap remained between private and public-sector pay, with wage growth for public-sector employees reaching 6.8% between June and August.
Retail Sales Fall
Retail sales fell unexpectedly during September as cost-of-living pressures and unseasonably warm weather affected consumer spending.
Sales volumes decreased by 0.9%, while non-food stores experienced an overall reduction of 1.9%. Consumer confidence was also reported to have fallen during October.
Danni Hewson, Head of Financial Analysis at AJ Bell, said: Every retailer will be fully focused on the festive season.
The next three months are the most important of the year for the sectorthe time when people splash out on gifts for friends and familyso the fact that consumers tightened their belts in September will undoubtedly be a cause for concern.
Real Living Wage Increases
The voluntary Real Living Wage increased to £12 per hour across the UK and £13.15 per hour in London.
More than 460,000 workers aged 18 and over were expected to benefit from the increase, helping to ease some of the pressure created by the cost-of-living crisis.
The new Real Living Wage rates took effect on 24 October, although accredited employers were given six months to implement them.
The Living Wage Foundation said the increase meant that a full-time employee working for an accredited business would earn £3,081 more annually than someone receiving the government minimum wage.
In London, a full-time employee receiving the London Living Wage would earn £5,323 more annually.
Government Borrowing Lower Than Expected
Official figures showed that public-sector net borrowing during the six months to the end of September was £19.8 billion below the forecast produced by the Office for Budget Responsibility in March.
Net borrowing during September stood at £14.3 billion. This was £1.6 billion lower than in September 2022 and below economists forecasts.
UK Inflation Remains Unchanged
The UK inflation rate remained at 6.7% during September, meaning prices continued to rise at the same overall rate as they had in August.
However, the prices of food and non-alcoholic drinks fell on a monthly basis for the first time since September 2021.
Petrol and diesel prices continued to rise and prevented the overall inflation rate from falling further.
Chancellor Jeremy Hunt pledged to reduce inflation to 5% by the end of the year.
He said: As we have seen across other G7 countries, inflation rarely falls in a straight line. But if we stick to our plan, we still expect it to keep falling this year.
This news shows why this is even more important, so we can ease the pressure on families and businesses.
Liverpool Supports Digital, Technology and Creative Businesses
Liverpool City Region Mayor Steve Rotheram announced £900,000 of additional support for digital, technology and creative businesses during the second phase of a job-creation scheme.
The funding was expected to support 120 companies.
It followed an initial £3.5 million funding round that helped create more than 300 jobs across 178 small and medium-sized businesses within the same sectors. Those businesses achieved a combined net increase in turnover of £18 million.
Mayor Steve Rotheram said: Our area is home to a burgeoning digital, tech and creative sector that supports thousands of local jobs and training opportunities.
Through Gather, were helping the industry strengthen the future of its workforce and create quality, secure and well-paid jobs.
Weve launched our next round of support to ensure that even more businesses and local people can benefit and take advantage of all the opportunities that will come our way in an increasingly digital world.
GDP Figures Reveal Economic Growth
The UK economy grew by 0.2% during August, according to recently published figures.
Pantheon Macroeconomics said that the August GDP report should becalm fears that the economy is on the cusp of recession.
However, the Office for National Statistics revised its figures for July, reporting that the economy had contracted by 0.6% rather than the previously estimated 0.5%.
Looking Ahead
That is all the news from October. The Autumn Statement was scheduled for 22 November, so businesses were advised to look out for any important financial and tax announcements.
Have a great November!