Britain’s tax burden ‘to stay at 70-year high for decades’ – newest updates
Thanks for joining me. We begin the week with official figures showing Britain’s economy expanded less than previously thought in the second quarter of the year.
UK GDP grew by 0.5pc in the three months to June, compared to previous estimates of 0.6pc, according to the Office for National Statistics.
5 things to start your day
1) The South East village that risks becoming ‘an urban extension to London’ | Chelsfield has held off the cranes and diggers for decades – but locals may have finally met their match
2) Pensioners race to buy heat-saving kit ahead of winter fuel allowance cut | DIY stores reveal surge in sales for insulation and energy-efficient items as higher energy bills loom
3) West is falling behind China on supercomputer technology, warns boss of $10bn tech giant | Race for quantum tech that can infiltrate encrypted systems sparks security concerns
4) Rayner’s workers’ rights bill must honour pledge to punish P&O, says union chief | Mark Dickinson calls for ferries boss to be ‘brought to justice’ over sacking of 800 seafarers
5) Roger Bootle: Hidden dangers are lurking in Reeves’s £50bn fiscal rules rejig | While it may be reasonable for the Chancellor to change arbitrary targets, markets are not easily bamboozled by fiddling with definitions
What happened overnight
Asian markets had a wild start to the week on Monday, with Tokyo’s Nikkei 225 index tumbling nearly 5pc while Chinese markets soared on news of fresh stimulus for the faltering economy.
Japanese shares sank after the ruling Liberal Democrats chose former Defense Minister Shigeru Ishiba to succeed Prime Minister Fumio Kishida, who is due to step down on Tuesday.
Ishiba has expressed support for the Bank of Japan’s moves to raise interest rates from their near-zero level. He also backs other policies, such as possibly raising corporate taxes, that are seen as less market friendly than his chief rival for the top job, Economic Security Minister Sanae Takaichi, who he beat in a run-off vote late Friday.
The Nikkei was trading down 4.7pc at 37,956.32 by midday Monday.
Ishiba has said he backs Kishida’s “new capitalism” policies, which ostensibly would foster more equal distribution of national wealth. But sharply rising prices have undermined progress toward encouraging consumers to spend more.
Meanwhile, the Hang Seng in Hong Kong jumped 3.3pc to 21,321.97, with Hong Kong’s Hang Seng Mainland Properties Index up 8.6pc. The Shanghai Composite index surged 5.7pc to 3,263.59.
The rallies were auspiciously timed, coming on the eve of a week-long national holiday marking 75 years of communist rule in China. Markets in mainland China will be closed Tuesday through Oct. 7.
