UK wage growth dips but interest rate increase seen on track

The Office for National Statistics said Tuesday that average weekly earnings during the period were 2.7 percent higher than the year before. (AFP)
Updated 17 July 2018

UK wage growth dips but interest rate increase seen on track

LONDON: Official figures show that wage growth in the UK moderated in the three months to May, a development that’s unlikely to change expectations that the Bank of England will raise interest rates next month.
The Office for National Statistics said Tuesday that average weekly earnings during the period were 2.7 percent higher than the year before. Though down on the previous 2.8 percent, wages are still higher than headline inflation, which in the year to May was 2.4 percent.
That means that household incomes continue to grow following a long squeeze when inflation outstripped earnings.
The Bank of England is widely expected to raise its benchmark interest rate on Aug. 2 to 0.75 percent partly because of the improvement in living standards.


Saudi finance minister reassures public on taxes

Updated 10 December 2019

Saudi finance minister reassures public on taxes

  • Mohammed Al-Jadaan: There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully
  • The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year

RIYADH: Saudi finance minister Mohammed Al-Jadaan pledged that there would be no more taxes or fees introduced in the Kingdom until the social and economic impact of such a move had been fully reviewed.

He was speaking at the 2020 Budget Meeting Sessions, organized by the Ministry of Finance and held in Riyadh on Tuesday, where a number of ministers and senior officials gathered following the publication of the budget on Monday evening.

“There will be no more fees and taxes until after the financial, economic and social impacts have been considered carefully, especially in terms of economic competitiveness,” said Al-Jadaan.

The government expects to generate about SR203 billion in taxes this year – more than 20.5 percent higher than the previous year and more than 10 percent higher than the expected budget for this year. 

Most of that increase has come from taxes on goods and services which rose substantially as a result of the improvement in economic activity over the year.

The reassurances from the minister come as the Saudi budget deficit is estimated to widen to about SR187 billion, next year, or about 6.4 percent of GDP.