Tax rises in, two-child limit out: what Resolution Foundation’s boss is urging Reeves before budget

The Bank of England's recent decision to hold borrowing rates steady and continue bond sell-offs has left Rachel Reeves, the shadow chancellor, in a challenging position as she prepares for a difficult autumn budget. While the bank's approach is described as 'gradual' and 'predictable', many believe that a more proactive stance could have provided the support Reeves needs to navigate the upcoming financial landscape. This situation highlights the ongoing tension between monetary policy and fiscal planning, making it a crucial moment for the UK economy.

The House of Lords has initiated an inquiry into proposed changes to inheritance tax, particularly focusing on pensions and agricultural property relief. This inquiry raises important questions about the government's plans and whether they can be altered or halted. The outcome could significantly impact families and businesses, making it a crucial topic for public discussion.

The Office for Budget Responsibility is likely to lower its productivity forecast, which could lead Rachel Reeves to breach her fiscal rules without major budget adjustments.

Editor’s Note: This situation is significant as it highlights potential challenges for the chancellor in maintaining fiscal discipline. A downgrade in productivity forecasts can impact economic planning and public confidence.

A record £70 billion has been withdrawn from pensions in the past year, raising concerns that savers are making impulsive decisions without proper advice, potentially jeopardizing their long-term financial health.

Editor’s Note: This trend is alarming as it suggests that many individuals may not fully understand the implications of withdrawing large sums from their pensions. Without proper guidance, these decisions could lead to significant financial challenges in retirement.

The UK state pension is expected to rise by 4.7% under the triple lock system, a move that could increase financial pressure on policymakers like Rachel Reeves. This increase comes at a time when the Office for National Statistics (ONS) reports slowing pay growth and rising job losses, highlighting the challenges facing the economy. Understanding the implications of this pension rise is crucial as it affects the financial stability of many retirees while also influencing broader economic conditions.

Google has announced a £5bn investment in the UK over the next two years to enhance its artificial intelligence services, marking a significant boost for the British economy.

Editor’s Note: This investment is seen as a strong endorsement of the UK's economic potential, especially in the tech sector. It comes at a time when the government is looking to strengthen its position in AI and technology, making it a pivotal moment for the industry.

President Donald Trump is set to announce over $10 billion in economic deals during his UK visit, with key events hosted by Chancellor Rachel Reeves and Prime Minister Keir Starmer.

Editor’s Note: This announcement is significant as it highlights strong economic ties between the US and the UK, potentially boosting trade and investment. The involvement of high-profile leaders indicates the importance of these deals for both nations.

The Indian stock market is experiencing a surge in tiny IPOs, reflecting a growing confidence among investors. This trend is significant as it indicates a vibrant economic environment and offers new opportunities for small businesses to access capital. As these IPOs flourish, they not only contribute to market diversity but also empower entrepreneurs, making it an exciting time for the Indian financial landscape.

Wall Street is celebrating as the S&P 500, Nasdaq, Dow, and Russell 2000 have all hit record highs, fueled by optimism over potential Federal Reserve rate cuts. This surge reflects traders' confidence in Corporate America's resilience and growth prospects. In a recent discussion on Bloomberg Businessweek Radio, Aaron Kennon, CEO of Clear Harbor Asset Management, shared insights on what this means for investors and the sustainability of this upward trend in equities. It's an exciting time for the market, and many are eager to see how long this momentum can last.

Fitch Ratings has expressed concerns over Nepal's political unrest, warning that it poses significant risks to the country's economic outlook and credit metrics. This situation is crucial as it could affect investor confidence and economic stability, making it essential for stakeholders to monitor developments closely.

South Korea has introduced new measures to encourage banks to shift their funding from property lending to vital sectors like semiconductors and artificial intelligence. This move is significant as it aims to boost investment in high-tech industries, which are crucial for the country's economic growth and competitiveness in the global market.

Asian shares are set to close a significant week for central banks on a high note, with the Nikkei index reaching a record level. This surge reflects investor confidence and positive economic indicators, suggesting a robust recovery in the region. Such gains are crucial as they can influence global markets and signal a strengthening economy, making it an important development for investors and analysts alike.

Recent documents reveal that LG Energy, a major South Korean company, was utilizing workarounds for US visa regulations even before the Trump administration. This raises concerns about compliance with immigration laws and the ethical implications of such practices. The revelation could impact LG Energy's reputation and its operations in the US, highlighting the ongoing complexities of international business and immigration policies.