We now finally have a somewhat positive outlook for the UK economy! The Office for Budget Responsibility has predicted inflation dropping to less than 3% by the end of the year. According to the OBRA, a technical recession is no longer on the cards for 2023/4 , however they predict a marginal 0.2% fall in GDP throughout the year. Job vacancies have fallen and filings for insolvency have risen by 6% from January and remain a 1/3 higher than before the pandemic.
 
The  Spring Budget saw a much needed boost to business investments through limitless capital allowances. It remains to be seen if its initial limited three year timeframe will only serve to bring forward capital expenditure planned for future periods.
 
Not all news is good however, current notable business challenges:

• Consumer facing businesses namely in hospitality and leisure, are likely to see a double hit over this year.
• A predicted 5.7% drop in household disposable income for the two years to April 2024 therein decimating spending on non-essentials.
• The 80% energy price cut support for non-manufacturing businesses from the end of March will mean a doubling in energy costs, despite falling gas prices

Overall, business owners and managers will need to make sure their financial hatches remain secure for the foreseeable future.