New energy cap just about to be announce - and the Treasury response, and the Bank of England rate decision - all in next hour - follow live page here… bbc.co.uk/news/live/uk-6…
NEW ofgem announce energy price cap will rise by £693 for typical household annually in April to £1917 for dual fuel £2017 for prepayment. Huge rises - will send inflation closer to 7%
Chancellor explaining how he will try to help mitigate - says its for Bank of England to deal with inflation…
NEW: £350 support consisting of
£200 rebate in October to be repaid over 5 years at £40 per year …
£150 non repayable rebate council taxes for 4/5 households
NEW: £350 support consisting of
£200 rebate in October to be repaid over 5 years at £40 per year …
£150 non repayable rebate council taxes for 4/5 households
Council tax rebate of £150 is in April 2022 for bands A-D
Chancellor says he purposefully wants to help not just those in benefit system
Chancellor says he purposefully wants to help not just those in benefit system
Warm Home Discount eligibility expanded by a third to 3 million people
First thoughts - this not targeted on the “fuel poor”, it is spread more thinly, so some on middle incomes and higher are helped…
Wont impact much on inflation - the direct debits going up immediately in April will still shoot up. Rebate applies in October, before winter
Wont impact much on inflation - the direct debits going up immediately in April will still shoot up. Rebate applies in October, before winter
One issue is energy cap is due to rise even further in October, so the £200 rebate might be judged not just against the £700 increase today, but a forecast further increase of £200 plus in Autumn
NEW Bank of England raises rates to 0.5%
Inflation to peak ABOVE 7% forecasts BoE
4 MPC members voted for 0.5% rise in rates so we were close to a hawkish surprise… but further rises coming in coming months…
Inflation expected to average 6% for 2022 - treble its target…
Inflation expected to average 6% for 2022 - treble its target…
Governor Bailey says that although Omicron economic impact was limited UK GDP growth likely to slow to “subdued rates”
Back on energy intervention - some Conservative backbenchers say its not enough…
https://twitter.com/smcpartland/status/1489206194505977886?s=21
Bank has downgraded the forecast for growth this year and next year, and if correct looks unlikely that the UK would head the IMF’s G7 table this year - down from 5% to 3.75% in 2022. Due to the hit to demand from the squeeze on households…
… latest Monetary Policy Report predicted post-tax incomes would fall 2% this year, after taking into account the rising cost of living.
*the biggest fall in take-home pay since records began in 1990*
*the biggest fall in take-home pay since records began in 1990*
If inflation hits 7.25% in April, as now forecast by the Bank of England, that would be the highest CPI figure since August 1991, just after the first Iraq War oil shock… and it hasn’t risen to this level since Saddam invaded Kuwait in August 1990…
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