MONEY MASTER

The UK government reported a  smaller-than-expected budget deficit in November , offering a brief respite for  Finance Minister Rachel Reeves , who faces mounting challenges to balance public finances amid a slowing economy and rising inflation. Key November Borrowing Figures Public Sector Net Borrowing : £ 11.249 billion , lower than the £ 13 billion  forecast by economists polled by Reuters. A  £1.8 billion reduction  in inflation-linked debt compensation due to a  0.3% fall in the retail price index (RPI) in September helped narrow the deficit. Year-to-Date Borrowing April–November 2024/25 Financial Year : Borrowing totaled £ 113.2 billion , similar to the same period in 2023/24. Despite November’s improved figures, borrowing has exceeded expectations in  eight out of 11 months  in 2024. Challenges Ahead for Reeves Fiscal Rules Under Strain : Reeves pledged to balance  day-to-day spending with tax revenues  by the end of the decade. P...

  OCBC's private bank , the Bank of Singapore , is targeting more asset flows from wealthy individuals in the UK, particularly those with “non-dom” status , as the British government considers tax hikes on foreign residents, according to senior executive Ranjit Khanna . The bank plans to double its revenue from Europe and the Middle East over the next three to five years, with a focus on attracting UK-based clients seeking alternatives due to rising tax pressures. Singapore is becoming an attractive destination for non-domiciled UK residents looking to relocate their assets amid proposed tax changes by UK Prime Minister Keir Starmer , which aim to fund key spending initiatives. The Bank of Singapore already books clients' assets in Singapore and Hong Kong , with 90% of its business coming from Asia. To support this growth, the bank plans to expand its London team and recently appointed Rob Woodthorpe Browne as its new head of London operations, following the retirement of...

UK salaries grew at their slowest pace in three-and-a-half years in September, indicating a loosening labor market ahead of Chancellor Rachel Reeves’s first budget on Oct. 30, according to a survey by the Recruitment & Employment Confederation (REC) and KPMG . The survey revealed that an increase in available candidates and reduced demand for staff contributed to weaker pay growth for permanent hires , the slowest since February 2021. Wages for temporary staff even declined . The Bank of England (BOE) is closely monitoring wage inflation as it debates a possible interest-rate cut in November . Governor Andrew Bailey has suggested that the BOE might take a more aggressive stance on rate cuts if inflation trends continue to be positive. Neil Carberry , CEO of REC, noted that pay is moderating and falling below its long-term trend, which could push the BOE to cut interest rates sooner. The findings come as businesses grow increasingly concerned about tax hikes and spending...