- At the beginning of this month, the Nottingham City Council declared “bankruptcy,” temporarily halting most new expenditures.
- Next year, council taxes are expected to rise in many areas.
- Vacant positions in the UK have significantly decreased, and wage growth is gradually slowing down.
- The Bank of England announced that interest rates will remain unchanged, with experts expecting a possible rate cut next year.
Nottingham City Council Declares “Bankruptcy”
At the beginning of this month, the Nottingham City Council issued Notice No. 114, indicating that most new expenditures will be suspended.
Due to a series of financial factors, the council has been in a relatively difficult situation.
The construction of the city center complex and issues such as housing and job opportunities have not been realized as planned.
Despite the council’s efforts to maintain a balanced budget, emergency meetings are still on the agenda.
Council Tax Increases Expected in Many Areas
Council tax, as a portion of local council revenue, affect the fixed expenses of local residents.
Next year, many councils are considering raising council taxes by around 5% to alleviate current financial pressures.
Currently, Surrey and West Sussex have confirmed the increase in council taxes starting next year.
In addition, cities such as Liverpool, Newcastle, Leeds, Cambridge, Oxford, and others may also raise council taxes.
Slowing Wage Growth in the UK
With the labor market cooling significantly, job vacancies in the UK have decreased by 45,000 this quarter.
In addition, the National Statistics Office has announced a 7.3% year-on-year growth rate in average basic wages for the third quarter.
However, a month ago, this data remained at 7.8%, showing a significant decrease compared to previous figures.
The Bank of England is monitoring wage growth levels and further balancing inflationary pressures.
Bank of England Announces Unchanged Interest Rates
As overall inflation rates fall, the Bank of England has ended several months of consecutive interest rate hikes.
Financial pressure on ordinary households will be alleviated to some extent, although an interest rate cut has not been realized.
However, households with fixed-rate mortgages may face a period of high-interest payments.
In addition, the slowing wage growth is also a factor the Bank of England considers in contemplating a rate cut, which may be seen in the near future.
