Economy, energy, care costs and property taxes

Adam Marshall, the head of the British Chambers of Commerce, has told the BBC’s Today programme that the ‘business as usual’ approach adopted by many companies since the Brexit vote has helped keep economic growth buoyant. But he warns that it will not last.

The organisation predicts that GDP will grow by 2.1 per cent this year, up from the 1.8 per cent it forecast just three months ago. But, according to Marshall, uncertainty over the UK’s relationship with the European Union and higher inflation will ‘dampen medium term growth’. It expects the UK’s economy to grow by 1.1 per cent next year, and by 1.4 per cent in 2018.

Energy The UK is facing an unprecedented energy supply crisis thanks to its reliance on ‘intermittent’ renewable energy, according to The Telegraph. The newspaper reports that Andrew Wright, a senior partner at Ofgem and former interim chief executive, says that ‘households could be forced to pay extra to keep their lights on while their neighbours sit in the dark because not everyone will be able to use as much as electricity as they want.’ Care costs The Times reports that the Prime Minister will support hikes to council tax bills this week in an attempt to plug a widening hole in social care funding. Warnings of an ‘absolute crisis’ in the industry have prompted Theresa May to abandon her opposition to the increases. The move follows a decision by the Prime Minister to prevent the Chancellor from addressing social care in his autumn statement last month. Philip Hammond had wanted to announce bigger rises in local authority precepts, but was ordered to delay because of fears that the change would add to the burden on low-income families — deemed ‘just about managing’ — at a politically sensitive time. Property taxes The Telegraph reports that the UK has the highest property taxes in the developed world. The paper states that ‘analysis by the Organisation for Economic Co-operation and Development shows property taxes accounted for 12.7 per cent of the total tax burden in 2014, the latest year for which data are available. This is up 0.3 percentage points compared with 2013 and is more than a percentage point higher than in 2011.’ Contactless payments

Contactless cards threaten a ‘dangerous’ debt storm over the Christmas period, the Daily Mail reports.

Research by experts at the London Business School say the process of taking real notes out of a purse or wallet acts as brake on spending. By contrast, a tap and pay card does not seem like using real money.

Boardrooms Financial services firms are aiming to boost the number of women at senior management level to an average of a third over the next five years, The Guardian reports. Analysis by the think tank New Financial scrutinised internal data from 71 companies that have signed up to the Treasury’s Women in Finance charter, which works with firms to improve gender balance in British financial services. Bank branches The Mail on Sunday let rip at one of the high street’s biggest names. ‘For years, HSBC branded itself as the world’s local bank, perpetuating the belief among customer that it cared passionately about having a presence on the high street. Not anymore. The boastful advertising has disappeared – and so has its commitment to ‘local’ communities. The Mail on Sunday has obtained exclusive detail of the cuts the bank has made to its branch network this year. According to details confirmed by the bank, HSBC has shut 218 branches so far this year, with another 57 poised to shut by early in the New Year.’ Rents The Telegraph reports that rents are rising faster outside London than in the capital for the first time since 2010. According to the paper, ‘estate agency Countrywide reported that in the year to November, average rents in London fell 0.7 per cent, but this is still 60 per cent higher than the rest of the country. This is the first time in five years that this gap has narrowed, partly due to the flood of rental properties that hit the market as investors raced to snap up buy-to-let properties before stamp duty was hiked 3 per cent in April.’