Summer has come to an end and, as we approach the final few months of 2023, several developments in the world of business and tax are worth noting.
Here is the latest business and tax news from September.
Autumn Statement Announced
Chancellor Jeremy Hunt announced that the 2023 Autumn Statement would be presented on 22 November 2023.
The statement was expected to include important financial updates that businesses would need to consider when planning for the months ahead.
No Opportunity for Tax Cuts
Despite growing calls for the government to reduce taxes, Chancellor Jeremy Hunt once again ruled out the possibility, saying that tax cuts were virtually impossible because of the countrys existing debt.
Speaking on LBC, he said: It makes tax cuts virtually impossible, and it means that I will have another set of frankly very difficult decisions.
All I would say is, if we do want those long-term debt costs to come down, then we need to really stick to this plan to get inflation down and get interest rates down.
I dont know when thats going to happen, but I dont think its going to happen before the Autumn Statement on 22 November, alas.
Bank of England Holds Interest Rates
The Bank of England held the base interest rate at 5.25%, ending a run of 14 consecutive increases.
Inflation unexpectedly slowed in August, although it remained considerably higher than the Banks 2% target, which was not expected to be reached until 2025.
Although holding interest rates provided some relief for people concerned about further increases, the rate remained high and continued to affect those repaying debts or managing their mortgages.
Cash Payments Increase
Cash payments increased for the first time in a decade, following a significant decline caused partly by the pandemic and changing working habits.
Debit cards remained the most popular payment method. However, many consumers reported that using cash made it easier to manage their money and control their spending.
Graham Mott from Link said difficult economic conditions had contributed to an increase in the use of banknotes and coins.
He said: We are making sure every high street has free access to cash. Where the last machine closes, we replace it. We will keep doing this for as long as people need cash.
The Post Office also revealed that it had recorded its highest number of cash transactions between June and August, with many customers using its counters to deposit or withdraw cash.
Retail Sales Increase
Retail sales increased by 4.1% during August compared with the previous year, supported by strong performance within the health, beauty and self-care sectors.
Although clothing and footwear experienced lower growth, the overall increase remained encouragingparticularly for high-street retailers affected by the rise of online shopping.
Paul Martin, UK Head of Retail at KPMG, said: Health, beauty, and food and drink were the strongest-performing categories both on the high street and online, as consumers made the most of brief spells of sunshine to enjoy the summer holidays.
Aldi also reported that supermarkets were experiencing increased demand for own-label products during the cost-of-living crisis, as shoppers looked for less expensive alternatives to familiar products.
The supermarket said that almost one million additional customers had chosen to shop at Aldi during the previous 12 months, with approximately two-thirds of UK households now buying from its stores.
Looking Ahead
That is all the news from September. Remember to monitor the latest business and tax developments as we move further into autumn.
Have a great October!