The UK's annual rate of inflation came in substantially lower than expected for September, increasing the prospect of further interest rate cuts before the end of the year.

The sharp fall in the headline Consumer Price Index (CPI) to just 1.7% was a full 0.4 percentage points below the latest forecast by the Bank of England and was the first reading below the Bank's 2% target since April 2021. Services inflation - viewed as the main component in domestically-driven price increases - dropped back to 4.9%, its lowest reading since May 2022.

“The notable drop in services inflation suggests that underlying price pressures are becoming less sticky," ICAEW economics director Suren Thiru said. "The squeeze from slower economic activity and weaker wage growth should help keep it on a downward trajectory.

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“Though the stars are aligning for a November rate cut, the upcoming Budget is the final hurdle as rate setters will want to assess the inflationary impact of any measures announced before loosening policy again.”

And so all eyes are now firmly focused on October 30 when Chancellor Rachel Reeves will deliver what has widely been promised will be a "painful" and difficult Budget.

"With just weeks left until Rachel Reeves delivers her highly anticipated Autumn Budget, the rumours, guesses and dare we say it, panic, are ramping up," said Tricia Halliday, director at chartered accountants Martin Aitken & Co. "We are being asked daily by clients for our thoughts and suggestions of things to consider pre-budget to ensure no opportunities are missed."

Representatives from Martin Aitken & Co will be among those on hand the morning after to make sense of it all at The Herald Budget Briefing which is being held over breakfast at the Bothwell Street offices of Virgin Money in Glasgow.

The Chancellor has ruled out increases to income tax, national insurance, VAT and corporation tax. Kuran Olak, tax senior at Martin Aitken & Co, said this has given rise to talk of stealthier tax rises such as an increase in employers' national insurance contributions, a national insurance charge on employer pension contributions, and a reduction in the tax-free cash individuals can take from their pensions.

"Generally, pensions have remained in the Labour party’s scope during the build-up to the budget alongside possible inheritance tax reforms and increases in the rates of capital gains tax," he said.

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"However, despite our best guesses and strategic analysis, we are unable to provide the certainty that clients are looking for. In a matter of weeks, we will be presented with the facts and then we will get to work advising clients of the impact on their businesses and personal finances."

David Henderson, head of strategic finance at Virgin Money, said: “Virgin Money are delighted to host and sponsor this year’s briefing which we hope will provide attendees with insights to the implications of the autumn statement on their business and equip them with the knowledge required to navigate the financial landscape which it influences.

"The event will also be an opportunity for everyone to visit our new head office at 177 Bothwell Street , which is one of Glasgow’s most modern and sustainable properties.”

The event will take place at 9am on Thursday October 31. Tickets cost £12.50 and can be purchased here.