Finance
British Finance Minister Jeremy Hunt rules out short-term tax cuts
Jeremy Hunt, Britain’s Chancellor of the Exchequer, speaks on the second day of the the Conservative Party Conference on October 02, 2023 in Manchester, England.
Christopher Furlong | Getty Images News | Getty Images
MANCHESTER, ENGLAND — U.K. Finance Minister Jeremy Hunt on Monday ruled out tax cuts in the short-term, arguing that to reduce them now would be inflationary.
“Right now we’re focused on bringing down inflation,“ Hunt said on the second day of the Conservative Party Conference currently underway in Manchester, England. “The plan is working,” he added. “And now we must see it through, just as Margaret Thatcher did all those years ago.”
Hunt has previously argued that tax cuts are “virtually impossible,” and could only be afforded if the government took some “difficult decisions.”
The comments mark a continuation of the status quo after Hunt was installed last year to steady the ship following then-Prime Minister Liz Truss’ cataclysmic mini-budget. It also signals what may be to come when the chancellor delivers his Autumn Statement next month.
His words come despite clamor from within the ruling Conservative Party to reduce taxes before a General Election next year, when the Tories are set to face a tough battle against the opposition Labour Party.
Truss herself delivered such demands on the fringes of the conference Monday. She called on the chancellor to cut corporation tax back down to 19% from the current 25%, adding “if we can get it lower, the better.”
In an effort to refocus discussions, Hunt unveiled a series of policies including a pledge to raise the national living wage to £11 an hour ($13.40), up from £10.42. The move meets a 2019 manifesto commitment to increase pay for the lowest paid.
“That’s a pay rise for 2 million workers,” he said. “Because if you work hard, a Conservative government will always have your back.”
Hunt also unveiled plans for tougher benefit restrictions in a bid to make savings on the government’s welfare bill. The move is expected to form part of wider plans due to be announced next month to get more people into work.
Additionally, he said he would freeze the expansion of the civil service and implement a plan to reduce staff numbers to pre-pandemic levels.
Fight against inflation
British Prime Minister Rishi Sunak faced flack as the conference kicked off Sunday after telling the BBC that reducing inflation was the best tax cut he could offer.
“Inflation is a tax. It’s a tax that impacts the poorest people the most,” he said. Inflation — the rate at which the cost of goods and services rise — is not a tax, though it can function as such, with higher prices eating into people’s spending power.
Hunt sought to clarify the prime minister’s comments Monday, saying that reducing inflation would be a “boost to incomes,” ensuring that take-home pay is higher than it would be otherwise.
Sunak has positioned halving inflation to around 5% as one of his key priorities for 2023. As of August, U.K. inflation fell to 6.7%, slightly lower than the 7% economists had predicted, signaling that the sharp pace of price rises may be easing.
The fresh data prompted the Bank of England to take a pause in its run of 14 consecutive interest rate hikes, holding rates steady at a 15-year high of 5.25%.
On Friday, data revisions from the Office for National Statistics showed that the U.K. economy bounced back from the Covid-19 pandemic much faster than previously estimated. Britain is no longer the worst performer in the G7, ranking similar to France and stronger than Germany.
“Don’t bet against Britain,” Hunt said, referencing the ONS data. “It’s been tried before and it never works.”
Trading house Itochu Corp. is considering helping finance the potential buyout of Seven & i Holdings Co. by its management, responding to a request from the founding family of the Japanese retail giant, sources close to the matter said Monday.
Itochu, the parent of convenience store chain operator FamilyMart Co., is apparently in the initial phase of the study, the sources said. The move could complicate the around 7 trillion yen ($45 billion) buyout offer by Canada’s Alimentation Couche-Tard Inc. toward Seven & i.
File photo taken in March 2024 shows Itochu Corp.’s Tokyo headquarters in Minato Ward. (Kyodo)
The Seven & i founding family, which anticipates a management buyout worth 9 trillion yen, has also contacted some banks and investment funds, according to the sources.
Alimentation Couche-Tard, the operator of Circle K convenience stores, has raised its buyout offer from the initial offer of around 6 trillion yen.
With its possible participation, Itochu may expect some synergies between FamilyMart and Seven-Eleven, two of the leading convenience store chains in Japan. But it could also cause antitrust issues because of their dominance in the industry, and Itochu may need to keep its investment ratio low, the sources said.
Related coverage:
Seven & i mulls management buyout to fend off Canadian takeover bid
Seven & i unveils 1.7-fold sales growth plan amid takeover pressure
Japan retailer Seven & i reveals its own strategy amid takeover offer
Gen-Z adults are more likely than Millennials to have a five-year financial plan, according to a new survey by First Direct. The survey, conducted by OnePoll in October among 4,000 participants, found that 59% of Gen-Z savers—those born after 1996—have set financial goals for the next five years, compared to just 40% of Millennials (born between 1981 and 1996).
Despite a challenging economic environment, including rising living costs and wage stagnation, both generations remain committed to achieving their financial aspirations. Around 73% of Gen-Z respondents and 76% of Millennials said they are determined to reach their financial goals, though many have had to delay milestones like home ownership or career progression.
Also read: Andhra achieves 10.44% growth in GSDP in 2023-24, shows economic survey report
For Millennials, the most common financial goals include achieving a better work-life balance (34%), saving for retirement (29%), and increasing income (29%). However, half (50%) of Millennials reported that the cost-of-living crisis has delayed their financial plans, with economic uncertainty and stagnant wages cited as major factors.
Carl Watchorn, head of banking at First Direct, commented, “Younger people have very high aspirations when it comes to achieving their financial goals. Despite facing challenges like higher living costs and the aftermath of the pandemic, they remain incredibly resilient and committed to improving their standard of living.”
Also read: Micro-mance to future-proofing: Dating trends 2025 for Genz and millennials
Tips for Financial Resilience
-First Direct also shared several tips for boosting financial resilience, including:
-Speak to your bank about available tools and support.
-Set specific goals, such as saving for a trip, and adjust spending to meet those targets within a set timeframe.
-Use budgeting apps to track spending and compare it with your goals.
Also read: Rural women entrepreneurs: Overcoming economic & social adversities
-Build a financial buffer by setting aside a regular amount each month, with some financial products offering good returns for consistent savings.
As both Gen-Z and Millennials navigate economic pressures, their focus on long-term financial planning highlights a generation committed to securing a stable future.
Finance
Hyundai Capital Services Marks Another Major Milestone, Launches Hyundai Finance in Australia
SEOUL, South Korea, Nov. 25, 2024 /PRNewswire/ — Hyundai Capital Services (“Hyundai Capital” or the “Company”), the financial subsidiary of the Hyundai Motor Group, announced today launch of its finance options for Hyundai Motor Company in Australia. This launch marks another significant milestone for the Company, with Australia being the 12th overseas financial subsidiary of Hyundai Capital.
Hyundai Capital Australia Pty Ltd (“HCAU”) aims to offer products tailored to the passenger vehicles of Hyundai dealerships and Genesis showrooms in Australia. HCAU has started servicing and providing exclusive financial solutions for Genesis in October. This launch of Hyundai Finance, together with Genesis Finance, marks the beginning of HCAU’s drive of auto financing business in Australia.
Leveraging the global credit ratings of Hyundai Motor Company, HCAU designed competitive rate loan products for its customers and introduced flexible and personalised financial services tailored to each vehicle.
For example, the Guaranteed Future Value* (“GFV”) is HCAU’s premier offering for the Australian market. The GFV loan guarantees a minimum resale value of the vehicle, which enables to lower monthly payments compared with traditional financing, making Hyundai vehicles more accessible with flexible end of term options. When the loan matures, customers can choose to:
- Trade-in: the vehicle’s value is used towards repaying the loan. If the trade-in value is higher than the GFV, the positive equity can be used towards a new vehicle.
- Keep: pay the GFV amount to own the vehicle outright.
- Return: return the car with no further payments, provided it meets the agreed upon fair wear and tear and kilometres driven conditions.
HCAU seeks to lead the auto financing market in Australia with its seamless and convenient digital financing services. With the global IT system developed and implemented by Hyundai Capital, HCAU offers a streamlined, digital finance application process. HCAU has improved the efficiency of its underwriting process through online document submission and system auto-approval functionality. Furthermore, HCAU introduced an AI chatbot service that operates 24/7, enhancing customer convenience to the next level.
“We are proud to introduce our full offering of auto financing products and services to our Australian customers who are already using or looking to purchase a Hyundai or Genesis vehicle at their respective dealerships,” said Hyung-Jin David Chung, CEO of Hyundai Capital. “With our strong partnership with Hyundai Motor Group, Hyundai Capital Australia will offer highly differentiated products and services to meet all of our customers’ needs.”
He added, “Hyundai Capital will continue to expand its business reach in key strategic markets to promote Hyundai Motor Group’s global sales growth.”
* GFV is for approved applicants only and is subject to fair wear and tear and kilometres driven conditions. Applicable terms, conditions, fees, charges and lending criteria apply.
SOURCE Hyundai Capital
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