James Wolcott, Jeremy Hunt, U.S. discussed on Bloomberg Daybreak Europe


Borrowing that we've been talking about on the Euro Euro trading at one O three 84 that European banking conference happening and Frank for today's speakers to watch out for as well. Oil prices poised to end the week lower Brent crude's a quarter of 1% stronger this morning just brushing below $90 a barrel WTI trading at $82 a barrel and Bitcoin's half a percent stronger. It's still low below $17,000, 16,765. That's your Bloomberg radio business flash now as James wolcott stories. Jeremy hunt has unveiled a 55 billion pound package of tax rises and spending cuts in a bid to get the UK's finances back on track. The Chancellor announced a series of measures that will take the country's tax burden to levels not seen since World War II. The plan set out by hunt will contribute to a 7% drop in disposable incomes over the next two years taking living standards in Britain back almost a decade. In the U.S., Federal Reserve bank of St. Louis president James bullard has urged policymakers to raise interest rates even further. The hawkish central banker says inflation has yet to peak and signaled rates should go as far as 5.25% yield jumped on the news with two year treasuries up ten basis points yesterday and the ten year yield rising 8 basis points. And in Asia, North Korea has test fired a suspected intercontinental ballistic missile far enough to be able to reach mainland America. The launch comes a day after warning the U.S. over continued joint military drills with allies in the region. The U.S., Japan and South Korea have all warned that Kim's regime seems to be ready to turn tensions even higher, with its first test of a nuclear bomb in about 5 years. Global news, 24 hours a day, on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than a 120 countries, I'm James Walcott. This is Bloomberg, Caroline. Okay, so we're going to dive into reactions to the budget in just a moment. Thanks so much, James Wilcox for our top stories. So with warnings of weak growth and rising taxes and disposable incomes likely to drop 7% over the next two years, Tina Mackenzie, who is chair of policy and advocacy at the federation of small businesses joins us now. Good morning Tina, thanks for being with us. Good morning. What are your members saying now about this budget? Well, I think the feeling is that there's not really much in here for our members for the small and medium businesses across the country. It's quite a depressing time. I have to say, you know, they're already facing so many pressures from price increase, inflation for them is huge. Supply TMA shoes, liberations, like taxes were up, thresholds of frozen. I think they were hoping for something, something at all to help the smallest, even the micro businesses, and the UK be protected through this really, really challenging time. And it's just a bit disappointing that there was no recognition of the real challenge. There are piercing and not protecting them. We're not really protecting the economy in the UK. What could Jeremy hunt have done to help your members to boost growth given the very grim financial situation the country is facing? Well, we've given them a lot of ideas quite directly. So for example, to protect the smallest businesses on the high street, they could have increased the way of threshold to 25,000. That means that those smallest micro businesses, those little boutiques, could have stayed or been without huge amounts of costs, now it wouldn't have cost a huge amount, but it would have protected those smallest businesses on the high street that would have taken around 200,000 small businesses out of rates. And so that was an idea we did. Another thing that we talked to them about didn't cost a penny. And that was to take action on their payments, businesses are closing small businesses are closing, oftentimes the country because of a lack of cash flow. And in lots of cases, that's because either the public sector or the big businesses are not paying them on time and we've given the ideas of how the government could actually do that in quite a simple way. We can cost them a payment. But alas, they talked about it. They've talked about sporting it, but they didn't take action on it in this. In terms of energy support, I have to say, we were relieved that energy support is guaranteed until they are pro. And we're really going to be talking to the government about continuing that on because that definitely would put some companies under. So looking at there's a whole list of things looking at thresholds. If you're going for groups in society that there's inflation and increase, whether it's benefits, whether it's giving extra help or extra spam to government departments because of that inflation, why on earth do you recognize it across the board? So, you know, with this idea that you've frozen vat thresholds for small businesses, don't you recognize inflation when it's a small business involved. It just doesn't make much sense. Okay, how worried are you about the drop in disposable incomes for consumers and what knock on effect that will have on SMEs? Well, what we're saying to the consumers out there now is don't forget the small businesses. You know, government can't help them completely, but their communities can and the good news is local communities are behind local people in their small businesses. They pay their taxes. They contribute to the communities. They really help through COVID. They employ local people. They're more likely to employ those farther away from the labor market, the more likely to be flexible, and so small communities understand that. And they support them and what we'd say is out to the people that are shopping coming up to Christmas, you know, rather than sit online and do it and maybe the money leaves the country and never ever had any of the parts that help them make a chance or education or our roads, then try and shop with a small business who

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