We're still growing (just)

The 1-minute read to get the money news you need with expert adviser commentary.

Economic growth slows

UK GDP grew by just 0.4% in October as our economic recovery stalled. It means the economy is still around 8% below its pre-pandemic size, according to the Office for National Statistics (ONS). It’s also expecting to see a slump in November’s figures because of the lockdown in England.

Housing market losing steam

Property surveyors say they’re expecting to see a slowdown in home sales next year. Transactions are continuing to climb ahead of Christmas as the stamp duty holiday deadline looms. But the Royal Institute of Chartered Surveyors (Rics) says there are signs that demand is losing steam in some parts of the country.

Adviser Comment: "We broadly agree with this. A rise and fall in sales due to the end of stamp duty relief is expected. Rics also says overall prices may not fall much, because sellers are prepared to wait in order to get the price they want. This may be challenging for first-time buyers who already need to save large deposits in order to get a mortgage."

Breaking up Facebook?

Facebook has been hit by a slew of antitrust lawsuits in the US. The government and a coalition of 48 states and districts have accused the social media giant of anti competitive behaviour. They say Facebook abused its market power to squash smaller competitors. If they win, Facebook could ultimately be broken up into smaller companies.

VAT increases?

In other bad news for big tech, the chancellor is considering tougher VAT rules for Airbnb hosts and Uber drivers. The so-called sharing economy has grown rapidly over the last few years, with 5 million of people now earning their income this way. Rishi Sunak is worried they’re not paying their fair share of taxes.