God. I'm sitting here nursing what might be my last "affordable" pint, scrolling through my notes on this brewing disaster (pun absolutely intended). My local barman just shook his head when I asked about tomorrow's price changes. "Better enjoy that one while it lasts, mate."
Let me be crystal clear - your beer is about to get more expensive. Like, noticeably more expensive. And I'm not talking about some vague "inflation" excuse. This is specifically because our government has decided that hiking employer National Insurance contributions is teh answer to filling their £25 billion budget hole.
The tax nightmare that's coming for your wallet
Starting tomorrow, businesses will be coughing up 15% in employer NICs instead of 13.8%. Doesn't sound like much? Well, they're also lowering the threshold from £9,100 to £5,000. Double whammy.
I spoke with a pub owner in Leeds last week who looked like he hadn't slept in days. "We're already running on fumes after Covid," he told me. "This is just... I don't even know how we'll manage." Poor guy.
Chancellor Rachel Reeves insists this protects workers as promised in Labour's manifesto. Sure.
But here's the thing - the Institute for Fiscal Studies basically laughed at that claim, warning employees will ultimately feel it through smaller wage increases. And that's assuming you keep your job, since plenty of businesses are talking about cutting staff to manage costs.
Wait... £5 for a PINT?!
The British Beer and Pub Association dropped this bomb: average pint prices jumping from £4.80 to £5.01. I remember back in 2018 when crossing the £4 threshold felt outrageous. Now we're staring down £5 pints becoming the norm.
My editor bet me £20 I couldn't find a single pub chain NOT raising prices. I feel stupid now for taking that bet.
Who's hiking what (grab your wallet)
Young's is slapping up to 20p extra on your pint. Twenty. Pence. Per. Pint.
Mitchells and Butlers? Up to 15p more.
Fuller's is going with a 10p increase, which almost seems reasonable in comparison (it's not).
Wetherspoons, Shepherd Neame, and Marston's (another 10p hiker) round out the list of major chains who've either already raised prices or warned they're about to.
Listen. If you're thinking "I'll just drink at home," I've got bad news...
Retailers joining the price-hike party
It's not just your local that's getting more expensive.
The British Retail Consortium is predicting food prices will jump 4.2% later this year. Greggs has already nudged their sausage rolls from £1.25 to £1.30.
I talked to a store manager at one of the big supermarket chains yesterday. His response: "already updating my resume." When I asked why, he pointed out that 24 out of 52 CFOs surveyed by the BRC said they'd be looking at staff cuts to handle the increased costs.
The domino effect is just getting started
M&S's boss Stuart Machin admitted they'll pass on extra costs but promised increases would be "small and behind the market." Whatever that means.
Next is planning an "unwelcome" 1% price hike. Currys is facing a £32 million bill. Halfords might raise garage repair prices due to a £23 million wage increase.
Royal Mail and Primark are joining the party too.
I spent $4K renovating my home office last year... maybe I should've invested in a home bar instead.
Frequently Asked Questions
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Investing in the stock market involves several risks, including market volatility, economic downturns, and company-specific factors that can lead to losses. Investors may also face liquidity risk, where they cannot sell an investment quickly without incurring a loss. Diversification and thorough research can help mitigate these risks.
What is the role of central banks in the economy?
Central banks manage a nation's currency, money supply, and interest rates. They implement monetary policy to control inflation, stabilize the currency, and foster economic growth. They also serve as lenders of last resort to the banking system during financial crises.
What is the difference between saving and investing?
Saving typically involves setting aside money in a secure account for short-term needs or emergencies, while investing involves using money to purchase assets like stocks or real estate with the expectation of generating a return over the long term. Investing carries higher risks but offers the potential for greater rewards.
What are the main functions of money?
The primary functions of money are as a medium of exchange, facilitating trade; a unit of account, which provides a standard measure of value; a store of value, allowing individuals to save and transfer purchasing power over time; and a standard of deferred payment, enabling credit transactions.
What are the benefits of having an emergency fund?
An emergency fund provides financial security by offering a safety net for unexpected expenses, such as medical emergencies or job loss. It helps prevent debt accumulation, reduces stress, and allows for better financial planning, ensuring that individuals can navigate unforeseen circumstances without significant hardship.
What are the different types of money?
The main types of money include commodity money, which is based on physical goods like gold or silver; fiat money, which is government-issued currency not backed by a physical commodity; and digital currency, which exists electronically and is often decentralized, such as cryptocurrencies.
How can I improve my credit score?
To improve your credit score, make timely payments on all debts, reduce credit card balances, avoid opening unnecessary credit accounts, and regularly check your credit report for errors, disputing any inaccuracies. Maintaining a mix of credit types and keeping old accounts open can also be beneficial.
Statistics
- A study by the National Endowment for Financial Education found that 60% of Americans do not have a budget.
- A survey by the American Psychological Association found that 72% of Americans reported feeling stressed about money at some point in the past month.
- As of 2021, the average student loan debt for recent graduates was approximately $30,000, according to the Federal Reserve.
- According to the Federal Reserve, approximately 39% of Americans do not have enough savings to cover a $400 emergency expense.
- Research by the National Bureau of Economic Research found that individuals who receive financial education are 25% more likely to save than those who do not.
- As of 2021, the median household income in the U.S. was approximately $67,521, according to the U.S. Census Bureau.
- The average return on investment for the S&P 500 over the past 90 years is about 10% per annum.
- The average cost of raising a child in the U.S. is estimated to be around $233,610, according to the U.S. Department of Agriculture.
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How To
How To Set Financial Goals That Stick
Setting financial goals that stick begins with defining what you want to achieve, whether it’s saving for a home, paying off debt, or building retirement savings. Use the SMART criteria—Specific, Measurable, Achievable, Relevant, Time-bound—to structure your goals effectively. Write down your goals and break them into smaller, actionable steps to make them less overwhelming. Establish a timeline for each goal and regularly review your progress to stay motivated. Adjust your goals as necessary to reflect changes in your financial situation or priorities, ensuring they remain relevant and attainable over time.
Did you miss our previous article...
https://hellofaread.com/money/universal-credit-users-the-free-1200-youre-probably-missing-out-on-i-almost-did-too
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