Predictions for UK Spending in January 2024
2023 was a complicated year for UK households and its businesses. Insolvencies stood at an all-time high; how do you think 2024 will take off?
Let’s take a look into some predictions.
The Office for Budget Responsibility (OBR) has forecast that UK household final consumption expenditure (HHFCE) will grow by 0.3% in the first quarter of 2024, which is a slight decline from the 0.6% growth forecast for the fourth quarter of 2023. The Bank of England is anticipated to continue raising interest rates to combat inflation. This could make borrowing more expensive for everyday households, potentially leading to reduced spending on non-essential items.
Increase vs. 2023: The UK Parliament’s “Main Estimates 2023-24” document projects government spending in 2024-25 to be over £2 billion higher than actual spend in 2021-22. However, this doesn’t necessarily mean a dramatic increase compared to 2023, as it will depend on inflation and adjustments.
Spring Budget 2024 (March 6th): The Chancellor will present an economic and fiscal forecast alongside the budget, revealing potential adjustments and priorities for government spending. This could have significant implications for specific sectors and spending patterns.
Here are some predictions for spending in key sectors in January 2024:
- Food and non-alcoholic beverages: This sector is expected to grow by 1.1%, as households continue to prioritize essential spending.
- Transport: This sector is expected to grow by 0.8%, as households adjust their travel patterns in response to the rising cost of petrol and diesel.
- Housing and household services: This sector is projected to increase by 0.7%, as households continue to invest in home improvements.
- Clothing and footwear: This sector is expected to grow by 0.6%, as households adjust their spending on non-essential items.
The outlook for UK spending in January 2024 is uncertain. The rising cost of living is likely to weigh on household budgets, but the government’s policies and the strength of the labour market could help to offset some of the pressure.
For our B2B businesses this may bring some uncertainty for the upcoming year. There are funding options available to you that don’t force you to enter lengthy payment terms.
Under the umbrella of Invoice Factoring there are options available to SME’s:
- Recourse Factoring: Within this service we manage your sales ledger whilst you receive funding against your upcoming invoices (up to 80%). We remain in contact with your debtors to ensure a healthy approach to invoicing is maintained. We maintain a personal service with each of our clients and their debtors, we don’t just send an automated email chasing a debt, our procedures are personal with regular customer contact. If you take care of the pennies…your working capital will speak for itself.
- Disclosed Invoice Discounting: Have your funding – your way. We upload your invoices, and whilst you remain in control of your sales ledger, we will provide up to 80% of funding on your upcoming invoices.
With both services you’re given access to our online portal, which allows you to make accurate decisions about your credit – wherever, and whenever you need to.
Invoice factoring brings your business a steady cash flow by steading out your incoming payments, without having to borrow money or sign up for a long repayment period.
We are excited about this forthcoming year, we hope to share it with you!
Are you ready for more information? Contact us here.
Would you like to know UK Finance Guidelines? Click here to find out https://www.ukfinance.org.uk/policy-guidance