Disposable Income Falls as UK Interest Rates Drop

Disposable income falls in the UK amid tax pressures

According to the Office for National Statistics, UK households saved less in the third quarter as higher taxes reduced incomes; the saving ratio dropped to 9.5% and real disposable income per person fell by 0.8%. Only a few weeks have passed since Chancellor Rachel Reeves announced that the government would freeze personal tax thresholds for three years. This move will increase the number of workers paying higher taxes while generating billions of pounds for the government. 

The Bank of England lowered interest rates to 3.75%, the lowest since early 2023, after economic growth slowed to 0.1% in the third quarter from 0.2% in the preceding quarter, and inflation slightly decreased to 3.2%. 

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Further reading: UK consumers saving less as taxes squeeze incomes, data shows

EU dairy products face Chinese provisional duties  

China will impose temporary import taxes of up to 42.7% on certain dairy products imported from the EU from Tuesday, following the initial findings of an anti-subsidy investigation. The principal targets of the tariffs will be milk and cheese, with rates ranging from 21.9% to 42.7%. Italy’s Sterilgarda Alimenti SpA will pay the lowest rate of 21.9%, while the companies that did not take part in the investigation will pay the highest rate. 

The European Commission criticised the decision as “unjustified and unwarranted”. China’s decision is widely seen as a retaliatory measure against the bloc’s 2023 electric vehicle tariffs on China.  

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Further reading: China hits EU dairy industry with tariffs of up to 42.7% 

New trade deal to boost India-New Zealand commerce 

A new free trade agreement between India and New Zealand is expected to increase trade between the two countries by hundreds of millions of dollars. The agreement is a response to U.S. President Trump’s sweeping tariffs, and it’s expected to be signed in the first quarter of 2026. The agreement will grant India zero-duty access for all goods exports to New Zealand, while Wellington will gain duty concessions and market access on roughly 70% tariff lines, covering about 95% of New Zealand exports over time. According to India’s Ministry of Commerce and Industry, New Zealand will invest $20 billion in India over 25 years and facilitate job opportunities for Indian professionals.  

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Further reading: India and New Zealand conclude free trade agreement

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Glencore to acquire majority stake in FincoEnergies 

Glencore, a global commodities trader and miner, has agreed to acquire a majority stake in FincoEnergies, a Dutch fuel supplier. Finco played a leading role in the Dutch wholesale fuel market and the region’s biofuels and low-carbon fuel industries. Glencore will become the majority shareholder in Finco, while Coloured Finches, a Dutch investment firm, will shift to minority shareholder after the deal’s closure. According to an industry source, Coloured Finches will remain in charge of Finco’s daily operations and management following the transaction. 

The deal depends on the EU antitrust approval and could close in the second quarter of 2026.  

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Further reading: Glencore buys majority stake in Dutch fuel company FincoEnergies 

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — In the Cover Photo: Banknotes of the pound sterling. Cover Photo Credit: Christopher Bill