Weekly News:
- Autumn Statement Approaching with Anticipated Tax Changes.
- UK Tourism Tax Scares Away 2 Million Visitors, Resulting in £10.7 Billion Loss.
- The UK’s largest local authorities face financial crises as service cuts are on the agenda.
- Several councils plan to increase local council taxes.
Tourism Tax
If you’ve visited the UK as a tourist before, you could claim a tax refund when leaving.
This meant tourists enjoyed a 20% implicit discount on their shopping to encourage spending.
Since the UK abolished tax-free shopping for foreign tourists, no more refunds will be accepted.
This move indirectly led to 2 million tourists spending their money in other countries.
Reports show that the UK economy has suffered a £10.7 billion blow since the removal of tax-free shopping.
Autumn Statement
The UK Treasury has confirmed that the Autumn Statement for 2023 will be released on November 22nd.
The Autumn Statement typically outlines changes for the next fiscal year (starting in April) based on the reports.
Given the current economic tension in the UK, it’s unlikely that Hunter will make any tax-cut promises.
Several departments have issued predictions, suggesting significant news for welfare and pension recipients.
Stay tuned for further updates.
Birmingham Council Goes Bankrupt
The most shocking news in the UK this week is undoubtedly the bankruptcy announcement from the UK’s largest local authority, Birmingham Council.
This Labour-controlled council subsequently issued Notice N.144 and ceased new expenditures.
With funding cuts, there will be minimal additional payouts to public facilities and community groups, apart from statutory services.
Despite calls for government financial assistance, Rishi Sunak ruled out a bailout plan.
Multiple Councils Plan to Raise Local Taxes
With global events and financial pressures caused by the UK economy, several councils are revising local council taxes.
Currently, the Cornwall County Council Cabinet is discussing a proposal to potentially raise local taxes by 4.99%.
This increase is also the highest limit allowed by the government without a public referendum.
Furthermore, Dundee and North Ayrshire Councils plan to raise local taxes for certain tax bands.
