Running up that hill
Looking back over those long summer months, I can’t have been the only one to raise a smile at the news that Kate Bush was topping the UK singles’ chart, as well as achieving her first ever top 5 single in the US.
Stranger things eh? The resurgent success of her 80s classic song “Running up that hill” was largely thanks to the latest popular Netflix drama. When it comes to running up hills, I think we can all identify with that feeling at the moment as we face the future beset with challenges.
The new kid in town
The threat of UK recession looms large. UK inflation is already above 10% yoy and predicted to hit 13% by October in the latest Bank of England report. Interest rates are rising meaning borrowing will not get any cheaper, reducing the scope for the tax cuts favoured by Liz Truss.
Runaway gas prices are intensifying calls for government action with a firm plan to support vulnerable families and businesses. Whether a new incumbent in No.10 will address the issue will be interesting to say the least.
But will any assistance scheme that might be announced be enough to stave off the worst impacts of recession here in the UK? At least it might help stabilise sterling against the strength of the US dollar in the short term although the noises coming out from the US Federal Reserve as regards tightening policy might just scupper that.
Some reports are now suggesting the energy crisis could last for as long as three years. The National Grid has reportedly been drawing up emergency plans to try and avoid uncontrolled blackouts by incentivising large industrial firms to reduce gas use every winter until 2025. It’s also doubled the length of its annual disaster drill to four days so that it can simulate supply threats and test the network’s resilience. The scale of the potential emergency is becoming clear.
Industrial unrest is also front and centre as the cost of living crisis bites. Rail and Mail strikes are just some of those already underway with predictions that large swathes of the workforce will resort to taking strike action in coming months. Yours truly is old enough to remember the 1970s – and it wasn’t pretty. One thing is for sure, our new PM will certainly face tough choices whilst households and businesses will have to prepare themselves for one of the most difficult periods in living memory.
Face the Future
Despite these serious headwinds, your IFA Magazine team are determined to bring you our usual smorgasbord of delights which we hope will not only keep you informed but also help you to think about what you do and how you do it.
Keeping clients informed and advised and supported with sage professional financial planning advice has never been more important. As well as turning the pages of this magazine, please remember that ww.IFAMagazine.com has daily updates with news, views and opinions. And if you’ve not discovered it yet, our weekly podcast, IFA Talk, is proving popular. As always, our thanks go to all our contributors for sharing the views with us – and to our great podcast guests too! Onwards and upwards.
Editor, IFA Magazine