Small Cap Value Report (Thu 7 Mar 2024) - KIE

Good morning from Paul amp; Graham!

A fairly uneventful budget yesterday, with all the main points already leaked to the media, as usual. Here's my brief summary -

Main measure, as expected another 2% cut in employee NI.OBR forecast growth increased amp; expect inflation to fall to 2% target soon.Plan for productivity gains in NHS amp; other public services.Fuel amp; alcohol duties frozen again, as expected.New British ISA - extra £5k allowance for investing in UK companies.Non-dom being abolished, new regime for 4 years not 15.

I also typed up notes in real time as the speech was being delivered - googledoc link here.

As mentioned frequently in my podcasts, I think the macro outlook for the UK economy is now looking favourable, which I think should be bullish for equities. In particular, with inflation heading for 2%, and many households receiving 8-10% pay rises from April, plus another 2% NI cut, we could go from famine to feast. So I'm expecting the consumer to come roaring back this year, hence lots of opportunities for us to make money I think. Let's hope I'm right!

EDIT: I should have mentioned that others have commented...