Bank of England delays latest interest rate rise
Her Majesty, Queen Elizabeth II passed away on 8 September 2022. In the wake of this, the Bank of England has delayed announcing the latest change to interest rates. What do we know?
The nation is currently observing a ten-day national mourning period following the death of Queen Elizabeth II at the age of 96. The government has announced that 19 September will be a bank holiday to coincide with the funeral. The Bank of England also announced that it was delaying it's scheduled monetary committee meeting by a week, with the new date being 22 September.
The committee agrees changes to the base interest rate. This has increased several times this year in an effort to curb inflation. Leading economists had expected the rate to increase from its current level of 1.75% to 2.25%, which would be the highest level since the 2008 financial crisis. Of course, this would have a knock-on effect to interest rates that are pegged to the base rate, including HMRC's. As a result, the interest charged on any overdue tax will shortly increase, albeit later than may have been the original case.
Related Topics
-
Dodging the 2027 IHT and pension changes
In a little over a year the inheritance tax (IHT) exemption for unused pension savings comes to an end. If you’re married or in a civil partnership, one simple step might save your estate thousands in IHT. What is it?
-
Act now to spread the cost of your tax bill
The deadline for filing your 2024/25 self-assessment tax return and paying the tax you owe is 31 January 2026. However, if you file your tax return early, you may be able to pay through your PAYE code instead. Are you eligible?
-
Electronic VAT return and payment due