Current Affairs - Oct 2024

Question 1

What is the UK base rate?

Answer 1

5% in August 2024

Question 2

What has happened to interest rates over the last decade?

Answer 2

They were relatively stable ranging around 1% until 2020. From 2020 to 2022 it was 0% and then it climbed rapidly in 2022 and 2023 to reach just over 5% by 2024.

Question 3

What is the current rate of UK inflation?

Answer 3

1.7% as of September 2024

Question 4

What has happened to inflation over the last 10 years?

Answer 4

It was relatively low 2015 and 2016 then there was a mini boom from 2017 to 2020 going up to around 3%. In 2020 an even bigger boom began and in 2023 the high was over 10%. It has lowered since then and as of 2024 it is around 2%.

Question 5

What is the current UK unemployment rate?

Answer 5

4% in August 2024 - which is relatively low

Question 6

What has happened to UK unemployment over the last 10 years?

Answer 6

Unemployment was large in 2014, around 7%, but then it continually decreased until 2020 where there was a slight increase, to around 5% before going back down to around 4.4%

Question 7

How would you describe the level of regulation in UK labour markets?

Answer 7

UK labour markets have been quite deregulated, it is harder for unions to strike and easier for firms to get rid of workers they don’t want. However, the labour government are planning on bringing in new workers rights.

Question 8

What has happened to UK growth over the last 10 years?

Answer 8

There has been very little growth since the recession. Most growth has been due to immigration but there has been barely any growth in GDP per capita.

Question 9

What has happened to UK median income over the last 10 years?

Answer 9

It has increased slightly but not much since the 2008 financial crisis.

Question 10

What is the current budget deficit?

Answer 10

Around 4.4% of GDP for the year 2023-2024. (around £120 billion)

Question 11

What is the current level of UK government debt?

Answer 11

Around £2.5 trillion, between 90% to 100% of UK GDP

Question 12

How has UK government debt changed since the great recession?

Answer 12

The recession increased debt massively and since then, it has continued to increase at a slower rate until 2020, where it shot up again.

Question 13

How does UK productivity compare to other developed countries?

Answer 13

Badly, of the G7 countries, only Japan has a lower productivity. Americas is almost 50 % higher.

Question 14

What has happened to UK productivity since the great depression?

Answer 14

It has flatlined, up until 2008 it was growing steadily (2% a year) but it has stalled.

Question 15

Explain this trend in UK productivity?

Answer 15

Maybe because there are not enough investments, not enough skills or planning laws.

Question 16

What is the UK’s current trade/current account position?

Answer 16

The UK’s trade balance has been in a deficit since 1998, due to deficits in trade. The trade deficit is currently £3billion per month. The current deficit is around 4 - 5 % of GDP.

Question 17

How has the trade/current account position changed over the last 10 years?

Answer 17

It has been negative for all of the previous years, closest to 0 at 2022 but it has increased dramatically since.

Question 18

What has happened to UK inequality over the last 15 years?

Answer 18

Income inequality in the UK is higher than any other large European country. (Almost 1/3 o young people are not undertaking any education by age 18) compared to 1/5 for france and germany.

Question 18

What has happened to UK taxation over the past 15 years?

Answer 18

The UK tax burden is high by historical standards for the UK. But it is close to the average for most developed nations.

Question 19

What has happened to sterling over the past 10 years?

Answer 19

The pound fell during the brexit vote, it recovered then fell when Liz Truss was prime minister for 45 days. It has mostly recovered.

Question 20

How else are major economies doing (China, USA, Japan, Germany)

Answer 20

Chinas growth has slowed to just below 5%
US growing at 3% a year
Japan no or very slow growth
Germany zero growth this last year
India is the fastest growing at 7% a year.

Question 20

What big trends in the UK might you bring into essays?

Answer 20

• Aging population and having fewer children
• Growing population because of immigration (putting pressure on housing markets)
• The war in Ukraine caused a spike in oil and gas prices.
• Brexit still having a negative effect on the economy.
• More disability benefits claimed after covid.

Question 21

In the budget, how high are labour expected to raise taxes?

Answer 21

£40 billion

Question 22

How much money will go to the public sector?

Answer 22

76 billion

Question 23

What percentage of GDP will spending on the public sector be?

Answer 23

44%

Question 24

What will minimum wage (for those over 21) rise to?

Answer 24

£11.44 to £12.21