Tax receipts were pummelled due to lower economic activity associated with the COVID pandemic. This chart highlights the development of notable duties that together help to highlight the effect of the pandemic on government income. Use the interactive chart to focus on specific duties.
Chart of the Week
The rise in CPI to recent highs of 2.5% in June left many observers warning of persistent inflationary pressure. Nevertheless, the Governor of the Bank of England, Andrew Bailey, cautioned against overreacting to a ‘temporary’ jump in inflation. CPI figures from July seem to have justified his advice, with the headline year on year inflation rate falling to the government’s target of 2%. Despite this, the data strongly suggests that it is too early to claim victory.
Chart of the Week
Assessing business births and deaths provides another angle to test perceptions of the UK economy, placing greater emphasis on the plight of smaller businesses that account for 60% of private sector employment in the UK.
Chart of the Week
The experience of working from home is now starting to alter expectations of hybrid working. This certainly provides economic challenges, though it can also bring about opportunities.
Chart of the Week
The pandemic, as well as the government’s response to it, has accelerated the growth in house prices relative to rental prices, and weakened the London housing market relative to the rest of England.