Reeves urged to ‘grasp the nettle’ with wholesale reset of council tax

US stocks ended lower as concerns over valuations and uncertainty regarding Federal Reserve policies weighed on investor sentiment. Treasury yields also declined, reflecting a cautious market environment. The downturn signals growing apprehension among investors about economic stability and potential interest rate adjustments.

Treasury yields fell as bond markets rallied, reflecting a positive sentiment among investors. This decline comes as markets anticipate a pause in interest rate cuts by the Federal Reserve, following mixed signals regarding employment data. The overall market sentiment remains cautious as investors digest the implications of recent labor statistics.

The US jobs market added 119,000 jobs in September, as reported in a monthly jobs report delayed by six weeks due to a federal government shutdown. The unemployment rate rose to 4.4%, the highest level since 2021, and the government has announced that no report for October will be issued. This figure exceeded analysts' expectations of 51,000 jobs for the month.

Rachel Reeves is set to announce funding for a £1.7 billion extension of the Docklands Light Railway (DLR) to Thamesmead in southeast London. This funding is part of an effort to facilitate the development of thousands of new homes in the area, which has historically lacked public transport, hindering redevelopment opportunities.

Critics have described the current council tax system as chaotic, with some households in Blackpool facing higher bills than those in affluent areas of London. The potential changes to council tax are raising concerns as they could significantly increase annual costs for many families. Following the abandonment of a plan to raise income tax, Chancellor Rachel Reeves is expected to implement smaller tax measures to address public finance issues.

Lisa Brankin, the managing director of Ford UK, has cautioned Rachel Reeves against imposing higher taxes on electric vehicles (EVs) in the upcoming budget. She argues that new levies could deter drivers from transitioning from petrol and diesel cars to EVs, especially with discussions of a potential pay-per-mile charge starting in 2028.

Treasury yields increased as Federal Reserve officials indicated a likelihood of pausing interest rate cuts on December 10. This rise in yields reflects growing uncertainty in the market regarding future monetary policy decisions.

The recovery of real wages in Australia is projected to be extremely slow, with expectations that it will take until 2044 to regain the purchasing power levels seen in 2021. Recent wage figures indicate that private-sector wages have decreased in real value during the September quarter, showing no signs of growth that could outpace inflation.