Good morning from the City AM liveblog team.
As we get closer and closer to the Budget, businesses are becoming more and more vocal on their concerns over what could be in store.
Yesterday it was the turn of London estate agent Foxton’s, which warned of softened demand as a result of Budget uncertainty.
“Macroeconomic uncertainty and speculation surrounding the delayed Autumn Budget has resulted in a subdued sales market as some buyers adopt a ‘wait and see’ attitude to purchases,” chief executive Guy Gittins said.
Elsewhere, lawyers are reeling from news they might soon face fresh tax hikes in the form of National Insurance Contributions.
Experts at UHY Hacker Young explained that applying a 15 per cent employer’s NICs rate would create an additional tax liability of around £46,000 per partner each year.
Neela Chauhan, partner at UHY Hacker Young, stated: “Imposing employer NICs in full would be a major blow for law firm partners across the UK.”
In other corners of the market, firms are still reeling from the effects of last year’s Budget.
Retailer Shoe Zone, which has seen a sales slump force it to close stores, didn’t pull its punches. The firm said: “This was a challenging year, particularly in the second half, as consumer confidence fell following the Government’s October 2024 budget, with persistent inflation, higher interest rates and reduced levels of disposable income all contributing to general negative economic and consumer sentiment.”
Expect more consternation as we get closer to Budget day.
Here’s a summary of our top headlines from yesterday:
Lloyds profit slides 36 per cent after hiking motor finance provisions
Lloyds finance boss refuses to rule out motor finance legal challenge
St James’s Place continues on its path to redemption
RSM UK approves merger with US arm, backing partnership over private equity
Manufacturing order books suffer sharp drop