Market Loop - 💼Budget aftermath

ECONOMY
Middle and high income households worse off under gov plans

What’s going on?
Wednesday’s budget will raise household tax bills by £3,000, according to analysis by the Resolution Foundation, an independent thinktank.

Why is this important?

TThe fallout from Wednesday’s Autumn Budget continued as analysis of the government’s tax and spending plans revealed which groups in society would be better or worse off.

Research by the Resolution Foundation concluded that rising inflation and taxation will stagnate household incomes in the years to come.

The Foundation said that by 2027 taxes will have increased by £3,000 per household since Boris Johnson became prime minister in 2019.

The changes to Universal Credit, reduced Alcohol and Fuel Duties and higher Council Tax, Income Tax and National Insurance – will boost the income of the poorest 20% in the country by almost 3%. 

Conversely middle-income households will see their incomes fall by 2% and the richest 20% will see a 3% fall in income. 

The budget included tax increases of £16.7bn a year by 2026-27, the biggest rise since 1993. By that time Brits will pay tax equivalent to 36.2% of UK economy, the highest percentage since the early 1950s.

Takeaway
The budget brought good news for the economy as a whole – a more optimistic economic outlook meant the Chancellor could spend more and borrow less. However the impact on personal finances is not necessarily as positive. Although low income households will see their incomes rise, middle and high earners will bear the brunt of higher taxation.

RETAIL
Tesco teams up with Gorillas delivery app

Tesco, Britain’s largest supermarket, has launched a pilot scheme to provide shopping in 10 minutes with the help of German delivery app Gorillas.

Gorillas will set up mini warehouses at Tesco stores with a range of 2,000 items. Staff will pick, pack and deliver to customers, according to the supermarket, 'in the time it takes to pre-heat the oven'. 

The first site will be in Thornton Heath, South London and will be expanded to four yet to be confirmed locations across the capital in the coming weeks.

Tesco is the latest in a long line of supermarkets pairing up with delivery apps to serve shoppers in a hurry:

The pandemic accelerated the trend for home deliveries as the high street shutdown and people worked remotely. Numerous grocery shopping apps have popped up almost overnight including Weezy, Zapp and Getir as well as Gorillas, which are operating across cities including London, Manchester and Birmingham. 

Founded during lockdown less than 18 months ago, Gorillas operates in nine countries. It announced last week it had secured nearly $1bn in its latest funding round from backers including takeaway delivery firm Delivery Hero.