Economics and Politics Flashcards
What is the current Bank of England base rate?
4.5%
What was it previously?
4.75%
What is a base rate?
The base rate is the interest rate set by the Bank of England, which influences the cost of borrowing and lending across the economy.
What is the current rate of inflation (Feb 2025)?
3% as of Jan 2025 - Up from 2.5% in December
What is an inflation rate?
The inflation rate is the percentage increase in the price of goods and services over a period, typically measured by the Consumer Prices Index (CPI). It reflects the cost of living and purchasing power changes.
What was the Autumn Budget 2024?
Chancellor Rachel Reeves introduced several significant fiscal measures:
* Raise of Capital Gains Tax
* Minimum wage increase
* Rise in SDLT
What is CTG?
Capital Gains Tax - tax on the profit made when selling or disposing of an asset that has increased in value, such as property, shares, or businesses. The tax is applied to the gain, not the total sale price.
Who is Angela Rayner?
Secretary of State for Housing, Communities, and Local Government (MHCLG).
Overseeing ambitious housing initiatives, including the Planning and Infrastructure Bill, which aims to build 1.5 million homes by the end of the parliamentary term to stimulate economic growth.
How do interest rate changes impact commercial property valuations?
Influencing borrowing costs and investor yield expectations.
Higher rates increase financing costs, typically lowering property values.
What was the Spring Budget 2025?
Welfare Cuts – Universal Credit and Personal Independence Payments (PIP) face new restrictions, particularly for younger claimants, aiming to reduce the welfare bill.
Civil Service Reduction – A voluntary exit scheme will cut 10,000 civil service jobs to reduce government operational costs.
Tax Crackdown – The government aims to raise £1 billion by tackling tax evasion and increasing penalties for late VAT and income tax payments.
Housing and Infrastructure – A commitment to 1.3 million new homes over five years, targeting 305,000 annually by the end of the decade.
Who is Rachel Reeves?
Chancellor of the Exchequer.
