Easy Money! 08 August 2025
Latest details from the Dubai Land Department indicate that there are seven hundred and twenty-six projects, currently under construction in the emirate. It is also noted that H1 witnessed the completion of some twenty-four real estate projects, valued at US$ 1.23 billion. During the half year, it is estimated that 75.35k units, valued at US$ 41.14 billion, were sold, with 90.34k units registered. There were 7.17k villas sold, worth US$ 7.63 billion. In the rental market, there was a marginal 0.7% rise in leases contracts to 465.74k, with their value 5.0% higher at US$ 11.44 billion, with new lease contracts up 7.3%, to 232.93k.
July saw the Dubai real estate market reach its second ever best month, with 20.30k property transactions, 24.9% higher on the year, and sales up 29.5% to US$ 17.71 billion.
BEYOND Developments has unveiled ‘PASSO’, a waterfront development located on the West Crescent of Palm Jumeirah – its first project beyond its masterplan in Dubai Maritime City. The twin-tower project will comprise six hundred and twenty-five units, ranging from one bedroom to four-bedroom apartments and five-bedroom penthouses, as well as six -bedroom standalone beach mansions. The Wellness collection includes private plunge pools and gardens directly connected to the beach. The Elite collection encompasses a limited number of units with special features. The Signature collection of five exceptional penthouses and six beachfront mansions, all with sweeping views of the sea, skyline, and the island. Other amenities include a two hundred and sixty sq mt Wellness pavilion, (with yoga decks and relaxation pools), a Montessori-inspired kid’s pavilion and a two hundred and fifty mt private beach. The upper levels of both towers have a wellness spa with a pool deck, a sunset social space with a private cinema, and a 360-degree infinity pool and sky garden. Completion is being slated for Q3 2029.
MGM Resorts International has pushed back the opening of its MGM Tower in Dubai by a year and now expects to open its doors in H2 2028. Its CEO, William Hornbuckle, confirmed that “progress in Dubai has also started to gather steam, with an expected opening date of the second half of 2028,” adding that “the building is due to be completed in the third quarter of 2027. We’re literally up on the fifth floor of the MGM tower as we speak”. The US company has a non-gaming management agreement with Dubai’s Wasl Hospitality to bring the Bellagio, Aria, and MGM Grand brands to the emirate. It is also reported that it has applied for a licence to operate a gaming facility in the UAE. MGM Resorts is the second US-based hotelier and gaming operator to receive a licence to operate properties in the UAE, after Wynn’s entry into Ras Al Khaimah.
Better Homes has reported that property prices and rental rates in areas adjacent to the UAE Etihad Rail network have experienced double digit growth this year, with more of the same to come. Expectations are that property values could see increases of up to 25% this year, with rental rises somewhat lower at 15%. The consultancy’s Christopher Cilas noted that “rental values in areas close to Etihad Rail stations have seen consistent growth, averaging a nine per cent increase over the past nine months. Dubai Festival City posted a standout 23% rise, followed by a 10% increase in Dubai South. This mirrors rental trends seen in areas under construction of the Dubai Metro Blue Line, where rents have already jumped by 23%”. Since last October, property prices, near to Etihad rail stations, have jumped by an average 13% with those located near Dubai Festival City (Al Jaddaf Station), Dubai South and Dubai Investments Park leading the pack with price hikes of 18%, 17% and 17%.
Last Sunday, HH Sheikh Mohammed bin Rashid went to Fujairah by the Etihad Rail passenger train. Dubai’s Ruler highlighted the significance of the national project adding that “Proud of our national projects… proud of the Etihad Trains team led by Theyab bin Mohammed bin Zayed… and proud of a country that never stops working but adds a new brick every day to its future infrastructure”. It will connect eleven cities and regions across the country – from Al Sila in the west to Fujairah in the east – with trains capable of reaching speeds up to two hundred kmph. Expected to start next year, the passenger service aims to transport thirty-six million passengers annually by 2030.
In the first six months of 2025,Dubai posted a 6.0% hike in tourist numbers to 9.88 million. Dubai’s Crown Prince, Sheikh Hamdan bin Mohammed, noted that this shows “Dubai’s ability to create compelling experiences that meet the evolving needs of visitors has strengthened its status as one of the world’s most sought-after destinations”, and “from exceptional infrastructure to unique attractions, Dubai offers a model of excellence in the tourism and hospitality sectors grounded in innovation”. The Dubai Department of Economy and Tourism noted that notwithstanding visitors from the GCC and Mena region’s 26.5% share, the biggest source markets were Western Europe, with 2.12 million visitors, accounting for 21.5% of the total, followed by CIS and Eastern Europe (15%), South Asia (15%), North East and South East Asia (9%), the Americas (7%), Africa (4%) and Australasia (2%).The hotel inventory was boosted by new openings including Jumeirah Marsa Al Arab in Umm Suqeim, Cheval Maison in Expo City, The Biltmore Hotel Villas in Al Barsha, and Vida Dubai Mall in Downtown Dubai. Furthermore, new future additions in the near future will include Mandarin Oriental Downtown, Dubai, ZUHHA Island on The World Islands, and Ciel Dubai Marina, Vignette Collection, which is set to be the world’s tallest all-hotel tower. Average hotel occupancy came in 1.9% higher to 80.6%.
The Central Bank of the UAE imposed a financial sanction of US$ 2.9 million on an unnamed exchange house, pursuant to Article (14) of the Federal Decree Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations, and its amendments. It was found that the exchange house failed to comply with the AML/CFT policies and procedures and Sanctions obligation.
Emirates Integrated Telecommunications Company PJSC posted a 7.4% increase in Q1 total revenues to US$ 1.04 billion, with EBITDA 15.0% higher to US$ 490 million at a robust 47.4% margin; net profit was 19.8% higher at US$ 197 million. Q1 fixed service revenues rose by 10.2% on the year reaching US$ 300 million, mainly attributable to the higher fibre penetration and the continuing success of du’s Home Wireless product and Enterprise connectivity solutions. Meanwhile, Q1 other revenues were up 4.8% to US$ 300 million, driven by the expansion of its ICT business. Capex was 5.0% higher, at US$ 102 million, as Q1 operating free cash flow, (EBITDA – Capex), increased by 17.9% to US$ 381 million.
du’s Q2 total revenue climbed 8.6% higher to US$ 1.06 billion, with mobile revenues rising by 7.7%, on the year, to US$ 463 million, with fixed revenues 10.1% higher at US$ 300 million, attributable to the ongoing expansion in Home Wireless and Fibre customer base. Other revenues, driven by higher inbound roaming and interconnection revenue, increased 8.8% to US$ 300 million. Over the period, its subscriber base increased 10.8% in mobile and 12.0% in fixed. The Board has approved an interim cash dividend of US$ 0.055 per share – a 20% increase on the year.
e& announced its consolidated financial results for H1, reporting continued growth momentum and strategic progress across its business pillars. Consolidated revenue increased by 23.3%, on the year, to US$ 9.51 billion, consolidated net profit by 60.7%, to US$ 2.40 billion and EBITDA by 18.8% to US$ 4.20 billion, with a credible 44.1% margin. Its subscriber base grew 13.1% to 198 million globally, with 15.5 million subscribers in the UAE.
After opening nine new stores this year, Spinneys posted healthy H1 financial results, with revenue 13.7% higher, to US$ 490 million, along with a gross profit margin of 41.5%, compared to 41.3% in 2024. The triple whammy of new store openings, increase in online sales and higher penetration of its in-house Fresh and Private Label sales, pushed sales higher. Adjusted EBITDA of US$ 100 million was up 20%, on the year, with an industry-leading margin of 20.1%, whilst profit before tax grew 24.4% to US$ 56 million, and after-tax profit, up 16.2%, to US$ 46 million. Spinneys started trading on the DFM in May 2024, (raising US$ 373 million), with an IPO price of US$ 0.417 and closed its first day of trading at US$ 0.452; today, its share value was at US$ 0.433, compared to US$ 0.401 four weeks ago.
Dubai Islamic Bank saw operating revenue climb to US$ 1.74 billion, with a 16.0% hike to US$ 1.17 billion, with net profit 10.0% higher at US$ 1.0 billion; this was the result of improved cost of risk and declining impairment charges, along with provisions falling sharply by 61%, on the year, to US$ 70 million, reflecting prudent underwriting and effective risk management practices. There was also double‑digit growth in financing and deposits and improved asset quality, with DIB passing the US$ 100 billion mark in total assets for the first time ever. Growth was seen in net financing assets – by 12.0% to US$ 65 million – with consumer financing assets climbing 13.0% to US$ 19 billion, supported by robust demand across all product lines, and its sukuk portfolio rising by 9.0% to US$ 24 billion. Customer deposits and current/savings account balances both increased by 14.0% to US$ 77 billion, and by 8.0% to US 28 billion.
Deyaar Development posted healthy H1 financials, with both revenue and net profit surging 39.3% to US$ 252 million, and by 31.6% to US$ 73 million; earnings per share were 33.2% higher at US$ 0.0156. The developer has several ongoing projects including the Downtown Residences in Dubai, poised to be one of the UAE’s tallest residential communities. Furthermore, Q2 net profit before tax rose 17.3% to US$ 40 million. During H2, it expects to hand over five major projects, housing a total of 2k units.
The DFM opened the week, on Monday 04 August, on 6,206 points, and having gained three hundred and fifty-one points (6.0%), the previous four weeks, shed fifty-seven points, (0.9%), to close the trading week on 6,149 points, by Friday 08 August 2025. Emaar Properties, US$ 0.85 higher the previous five weeks, shed US$ 0.12, closing on US$ 4.16 by the end of the week. DEWA, Emirates NBD, DIB and DFM started the previous week on US$ 0.77, US$ 7.11, US$ 2.63 and US$ 0.49 and closed on US$ 0.74, US$ 7.36, US$ 2.63 and US$ 0.48. On 08 August, trading was at two hundred and seventeen million shares, with a value of US$ one hundred and sixty-three million dollars, compared to two hundred and three million shares, with a value of US$ one hundred and seventy-two million dollars, on 01 August 2025.
By mid-afternoon of 08 August 2025, Brent, US$ 0.21 higher (1.8%) the previous week, had shed US$ 2.91 (4.2%) to close on US$ 66.70. Gold, US$ 6 (0.3%) higher the previous week, gained US$ 49 (1.5%), to end the week’s trading at US$ 3,348 on 08 August.
Probably not before time, Ofwat’s chief executive has decided to run before he faced almost inevitable dismissal. David Black, having decided to “pursue new opportunities”, will stand down at the end of this month, after three years in the position but wished the team “every success as they continue their important work”. Only last month, the Starmer administration confirmed that the ineffective watchdog would be scrapped. There has been widespread criticism of water companies over leaking pipes and sewage spills, with pollution incidents in England hitting a new record. A recent government report blamed Ofwat but also the government and water firms for the state of the industry and made eighty-eight recommendations to reform the water sector. It also noted that Ofwat has faced far too little accountability for its decisions but also blamed the government for “providing no detailed guidance to help Ofwat balance its objectives and manage trade-offs”. The report also criticised the water firms for marking their own homework on sewage spills – and questioned their payouts to shareholders. It also estimated that in the thirty-six years since privatisation, water companies have managed to pay out US$ 72.56 billion to shareholders, despite their torrid state of affairs.
KPMG found traditional banks have lost out on the equivalent of US$ 134.5 billion in savings, as savers seek better returns from the likes of challenger banks and building societies. This is just an indicator that banking, as we know it, is in a period of great change and either the big banks follow or be lost in the annals of history. The report, (which came out before this week’s rate reduction) noted that with the two base cuts this year, all the major high street providers had cut the rates they are paying on their standard easy access accounts, some multiple times.
Barclays, HSBC and NatWest are paying 1.11% AER on its Flexible Saver account, 1.30% AER on its Flexible Saver, on 21 July, and 1.15% on balances up to US$ 33.6k. At the start of 2025 year, the top unrestricted easy access account – offered by Gatehouse Bank – paid 4.75%, but after two rate cuts was still it paying 3.9%. Many lesser-known providers will still be paying up to triple the amount that the big banks deem necessary for their customers.
Embattled Boeing is facing another problem – this time over 3.2k union members, who assemble its fighter jets, going on strike on Monday, after rejecting a second contract offer. The plane maker said it will implement a contingency plan that uses non-labour union workers, with its CEO Kelly Ortberg noting that the company had weathered a seven-week strike last year by District 751 members, who build commercial jets in the Northwest and numbered 33k. Boeing Defence confirmed that the rejected four-year contract would have raised the average wage by roughly 40% and included a 20% general wage increase and a US$ 5k ratification bonus, as well as increasing periodic raises, more vacation time and sick leave. District 837 head Tom Boelling said that its members “deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defence”.
Following Nividia becoming the first company to surpass the US$ 4.0 trillion market cap mark, it has been joined by Microsoft; the chipmaker is still well ahead with a current level of US$ 4.4 trillion. The tech company had gained momentum on the back of robust quarterly results, enhanced by significant gains in AI and cloud computing services. In the most recent quarter, Microsoft’s revenue jumped over 18%, to top US$76 billion, with net profit surging over 25% to US$27 billion.
In a new deal so as to keep its CEO still with the company, Tesla has granted Elon Musk shares worth in excess of US$ 29 billion, (equating to some ninety-six million shares). This was said to be a “good faith” payment to honour Musk’s more than $50 billion pay package from 2018 that was struck down by a Delaware court last year; the new shares are reliant on Musk remaining in a key executive position for the next two year and has a five-year holding period. If the Delaware courts fully reinstate the 2018 CEO Performance Award, the new interim grant will either be forfeited or offset and there will be no “double dip”. Another compensation plan for the founder, who has a 13% stake in the company, is on the cards and is expected to be voted on at an investor meeting in November. The coming months will prove crucial to Tesla, as it tries to transform from being the world’s most valuable automaker to more of an AI and robotics company amid falling sales in its mainstay auto business and a slump in its share price. Although Tesla shares have taken a battering this year down 18.3%, (attributable to a sales decline, robust competition and Musk’s political stances that have alienated many domestic and international buyers), they rose more than 2% on the latest news and have gained almost 2k% per cent in the past decade, that is about ten times more than the c200% increase in the benchmark S&P 500 index.
Having already committed to a US$ 500 billion capital investment plan in the US, (along with a promise to hire a further 200k employees), Apple will invest a further US$ 100 billion on expanding Apple’s supply chain and advanced manufacturing footprint in the US. In meeting Apple CEO, Tim Cook, the US President noted that “companies like Apple, they’re coming home. They’re all coming home”’ and “this is a significant step toward the ultimate goal of ensuring that iPhones sold in America also are made in America”. However, the Apple supremo noted that that many components such as semiconductors, glass and Face ID modules were already made domestically, but said that final assembly will remain overseas “for a while”. Despite political pressure, analysts widely agree that building iPhones in the US remains unrealistic due to labour costs and the complexity of the global supply chain. Because of high labour costs and the intricacies of the new global supply chain, it would not make economic sense for Apple to build iPhones in the US. Apple continues to manufacture most of its products, including iPhones and iPads, in Asia, primarily in China, although it has shifted some production to Vietnam, Thailand and India in recent years.
Probably not before time Ofwat’s chief executive has decided to run before he faced almost inevitable dismissal. David Black, having decided to “pursue new opportunities”, will stand down at the end of this month, after three years in the position, but wished the team “every success as they continue their important work”. Only last month, the Starmer administration confirmed that the ineffective watchdog would be scrapped. There has been widespread criticism of water companies over leaking pipes and sewage spills, with pollution incidents in England hitting a new record. A recent government report blamed Ofwat but also the government and water firms for the state of the industry and made eighty-eight recommendations to reform the water sector. It also noted that Ofwat had faced far too little accountability for its decisions but also blamed the government for “providing no detailed guidance to help Ofwat balance its objectives and manage trade-offs”. The report also criticised the water firms for marking their own homework on sewage spills – and questioned their payouts to shareholders. It also estimated that in the thirty-six years since privatisation, water companies have managed to pay out US$ 72.56 billion to shareholders, despite their torrid financial state and gross inefficiency
In June, China’s international trade in goods and services grew 6.0% to top US$ 588.3 billion. It posted a very healthy US$ 70.1 billion, with exports of goods and services and imports coming in on US$ 329.2 billion and US$ US$ 259.1 billion. Of the total, the export of goods reached US$ 294 billion, and the import reached US$ 209.5 billion, resulting in a surplus of US$ 84.5 billion. The export of services reached US$ 34.3 billion and the import reached US$ 48.3 billion, resulting in a deficit of US$ 14.0 billion.
65.5%, or US$ 23.73 billion, of US$ 36.26 billion total debt of the Australian Tax Office owed by small businesses, with much of that being undisputed debt. The Tax Ombudsman, Ruth Owen, is currently investigating the ATO’s increased use of general interest charges, which are applied on top of hefty tax debts. Although she understood the ATO’s need to collect on debts, the Tax Ombudsman said it needed to be more understanding of cost-of-living pressures and give people more time to pay. She added that some of those pursued for money owed often do not have access to well-paid correct advice to help them navigate out of crippling tax debts. The Small Business Debt Helpline has noted that calls have hit record highs, with over 60% relating to a tax debt and there are calls from many industry experts for the ATO to give small businesses and individuals more time to pay tax debts. It appears that the taxman is increasingly using its tax powers to recoup tax debts which is sending more SMEs into liquidation and putting more individuals into severe financial hardship. It says that “heavy-handed actions” in pursuing debts are not used, while financial counsellors have reported rigid policies and difficulties accessing repayment plans and interest waivers; it confirms that “we expect taxpayers to fulfil their legal obligations – that is to lodge and pay tax bills in full and on time”. The Tax Ombudsman has noted that “we’ve seen increased activity across that full spectrum of debt collection methods”, and that “families, businesses are all struggling — there’s a lot of bills, there’s a lot of debt out there and they [the ATO] could do more to support taxpayers, to pay their tax when it’s due, and give them appropriate arrangements if they fall into hardship”. There are arguments that the ATO’s rigid policies and legal constraints have restricted access to financial hardship relief and debt release, with many struggling to access affordable repayment plans and other reasonable hardship options including deferrals, debt reductions, pausing the accumulation of interest. However, the ATO said “not all taxpayers, who use the hardship line, are genuinely experiencing vulnerable circumstances”.
Latest figures indicate that the median home value for a home in Australia has increased by 3.7%, (about US$ 16.2k), over the past year to US$ 546k. According to Cotality, national dwelling values rose 0.6% last month – the sixth consecutive month of price rises. There is no doubt that interest rate cuts usually result in property price growth, because of the positive impact on borrowing power, but the flip side is that overall affordability is an issue and a growing problem for many potential first-time buyers. The RBA decision in early July to maintain cash rates at 3.85% both dismayed experts and disappointed many others. Surprisingly, house prices rose, despite no July rate cut, but the money is on for a further rise in prices this month when the RBA will cut rates next Tuesday, 12 August, when the board meets.. It is estimated that a 0.25% rate reduction will result in an extra US$ 6k borrowing for someone on average earnings, and a 20% deposit. It could be that savvy first-time home buyers are already factoring in future rate cuts on the assumption that property prices are only going in one direction – north.
REA Group’s PropTrack posts slightly different results to Cotality, with national values 0.3% higher in July with Adelaide, Hobart, Brisbane and Perth all higher than the average with 0.9%, 0.5%, 0.4% and 0.4%. The firm estimates that prices to average earnings is more than double what it was twenty years ago, and that property prices could be close to their peak. This was because the amount of money a first home buyer could borrow was way below what they would need to get into the property market. However, it concluded that the affordability issue would at least slow the pace of price growth, despite further rate cuts.
It is not only first-time property buyers who are bearing the brunt but also those who are renting. Cotality sees national rents 1.1% higher, in the quarter to 31 July – up from the low of 0.5% seen in the September 2024 quarter. As with property rises, Darwin led the pack with its units’ sector and houses posting rises of 2.9% and 2.2%, with Hobart houses third on the list with 2.0%. A double whammy of a shortage of available rentals, combined with income growth, was pushing up rents in some markets.
Despite its warning of a sharp rise in inflation, with food prices surging, UK interest rates have been cut by 0.25% to 4.0% – its lowest level since March 2023 and the fifth cut over the past twelve months. The initial vote by the nine-members of the BoE’s Monetary Policy Committee saw a four-to-four split for a 0.25% reduction or for maintaining current rates; one member, Alan Taylor, went for an 0.5% reduction. For the first time in history, a second vote was taken, with Taylor deciding to side with the smaller rate reduction. Governor Andrew Bailey commented that “interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully”.
Following the surprise 50% Trump tariff being levied on its exports, Indian Prime Minister Narendra Modi commented that “for us, our farmers’ welfare is supreme”, and that “India will never compromise on the wellbeing of its farmers, dairy (sector) and fishermen. And I know personally I will have to pay a heavy price for it”. While he did not explicitly mention the US or the collapsed trade talks, his comments marked a clear defence of his country’s position. After five rounds of negotiations, bilateral trade talks had broken down, with one of the drivers being disagreement on opening India’s vast farm and dairy sectors. The foreign ministry called the US decision “extremely unfortunate” and said it would “take all necessary steps to protect its national interests”.
To show his displeasure at India continuing to, directly or indirectly, import Russian oil, (at reduced prices), Donald Trump slapped a further 25% penalty tariff on the country’s exports to the US; this is in addition to the initial almost blanket 25% tariff on many nations issued last week. This comes after bilateral talks had broken down which could lead to a breakdown in diplomatic relations, at a crucial time when Indian Prime Minister Narendra Modi is to visit China, for the first time in over seven years, later this month. Trump has threatened higher tariffs on Russia and secondary sanctions on its allies, if Russian President Vladimir Putin did not move to end the war in Ukraine.
Yesterday, 07 August, President Donald Trump’s latest amended higher tariff rates of between 10% to 50% took effect on many of its trading partners, with US Customs and Border Protection agency collecting the higher tariffs at 12:01 am EDT. Goods loaded onto US-bound vessels, and in transit before the midnight deadline, can enter at lower prior tariff rates before 05 October. However, any goods determined to have been trans-shipped from a third country to evade higher US tariffs will be subject to an additional 40% levy. Time will tell fairly quickly whether it proves a successful move for the US administration and punches a massive hole in the US trade deficit or whether it leads to higher inflation, a disruptive global supply chain and a global reprisal from many unhappy trading partners.
Imports from many countries had previously been subject to a baseline 10% import duty after Trump paused higher rates announced in early April. Since then, his tariff plan has seen certain countries being hit with higher tariffs. For example, three major trading partners – Brazil, Switzerland and Canada – will be paying 50%, 39% and 25% – whilst eight major trading partners, including the EU, Japan and South Korea, accounting for about 40% of US trade flows, now pay a 15% tariff. The UK pays 10%, whilst Vietnam, Indonesia, Pakistan and the Philippines secured rate reductions of between 19% to 20%. The latest tariffs impacted sixty-seven trading partners but may be higher to include national security-based sectoral tariffs on semiconductors, pharmaceuticals, autos, steel, aluminium, copper, lumber and other goods. Ongoing trade discussions are on-going with China, with further details being announced next week.
At the same time, Donald Trump declared plans for a 100% tariff on semiconductor imports while promising to exempt companies such as Apple that move production back to the US. Any company that demonstrates a similar commitment would be exempt from tariffs on chips – but a separate tax will still be levied on imports of electronics products from smartphones to cars that employ semiconductors. However, both Taiwan’s TSMC and South Korea’s SBS indicated that they would be exempted because of pledged investments in the US. Nevertheless, the global electronics supply chain has been spooked by this surprise move which will have a negative impact on so many companies in the sector.
Now that US trade tariffs have been announced for the world, one thing is certain – no country is on better trading terms with the United States than it was when Trump’s second reign began in January 2024. Although the UK was the first country to settle with the US president, the majority have failed to secure any agreement. It is just four months ago that Donald Trump introduced the world to ‘Liberation Day’ and his board with a list of countries and the tariffs they would immediately face in retaliation for the rates they impose on US-made goods. Barriers to business are never good but the International Monetary Fund earlier this week raised its forecast for global economic growth this year from 2.8% to 3%.
After taking over control of British Steel in April, the Starmer administration has a problem, with Jingye, the Chinese owners, playing hard ball demanding hundreds of millions in taxpayer money for the steelworks at Scunthorpe. At the time, there was concern that the Chinese, who are still the owners of British Steel, would just close down the only remaining blast finances in the country. Ministers, like many other industry experts, consider that the loss-making company is worth very little. Business Secretary, Jonathan Reynolds, said, at the time, that full nationalisation was the likely next step, with ministers been hoping that Jingye would hand over ownership of the company for a nominal fee; this is not going to happen – Jingye has already rejected a March 2025 offer of US$ 672 million.
The National Institute of Economic and Social Research has estimated that the government is on track to miss its self-imposed borrowing rules by some US$ 55.36 billion, somewhat higher than the alleged US$ 29.0 billion black hole left by the departing Sunak government. It recommended “a moderate but sustained increase in taxes”, including reform of the council tax system to make up the shortfall. It did suggest that the Chancellor could raise revenue through changes to the scope of VAT, pensions allowances and prolonging the freeze in income tax thresholds, When asked about NIESR’s assessment that tax rises would be needed to raise revenue, the blinkered prime minister retorted that “some of the figures that are being put out are not figures that I recognise”, and that “in the autumn, we’ll get the full forecast and obviously set out our Budget;” he added that the Budget would focus on living standards and “making sure that people feel better-off”. Since she took the mantle of Chancellor, Rachel Reeves has set out two ‘non-negotiable’ rules for government borrowing, which is the difference between public spending and tax income. They were that day-to-day spending would be paid for with government revenue, which is mainly taxes, (with borrowing only for investment), and that debt must be falling as a share of national income by the end of a five-year period. She had originally also promised that she would not hike taxes, including income tax, VAT or national insurance on “working people”. However, with disappointing growth figures, there could be another government U-turn come the October budget.
The latest story is that Gordon Brown, a former Chancellor of the Exchequer, and also Prime Minister after the demise of Tony Blair, has offered his advice to Rachel Reeves. He thinks that she should hike gambling taxes so that benefit restrictions can be lifted and paid for from the US$ 4.3 billion that could be “taken off” the gambling industry. He said that the UK is facing a “social crisis”, with a growing need to take children out of poverty, and that hiking taxes on the “undertaxed” gambling industry was “by far the most cost-effective way” for the Chancellor to do this. (It says a lot of the current incumbent who reportedly kept a framed photo of predecessor Brown in her room as a university student). Reeves has not been drawn in on the subject, just saying that “we’ll set out our policies in the normal way, in our Budget later this year”. If you are a gambler, you could probably do worse by betting on both online casinos and slots/gaming machines seeing their tax bill at least doubling in the October budget. Easy Money!
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