Author: Scott Dylan

During the COVID-19 pandemic, the Future Fund, launched by Rishi Sunak, aimed to support struggling start-ups through loans. Now, as these loans reach maturity, the fund is taking significant actions to recover taxpayer money.Faced with mounting repayments, many of these companies are being pushed into liquidation, raising concerns about the fund’s effectiveness and the broader implications for taxpayer-backed initiatives.Launched by Rishi Sunak in 2020, the Future Fund aimed to support start-ups severely impacted by the COVID-19 pandemic. The initiative, offering loans totalling £1.1 billion to 1,191 companies, intended to convert these loans into equity upon securing follow-on investments. Yet, many…

Uber is embroiled in a significant tax dispute with HM Revenue & Customs (HMRC) over nearly £1 billion in VAT payments.Since March 2022, Uber has been liable for 20% VAT on its fares and delivery sales, resulting in a £951 million charge by HMRC.Uber argues that VAT should apply only to its profits, not total revenues, and is appealing the assessments.The Supreme Court’s 2021 ruling reclassifying Uber drivers as ‘workers’ triggered historic and future VAT liabilities for the company.Current consultations by the Treasury on VAT rules for private-hire vehicles could influence the outcome of this dispute.Since March 2022, Uber has…

Around 1,500 workers at Tata Steel are set to strike from 8 July against proposed job cuts. This marks the first industrial action by UK steel workers in over 40 years, impacting Tata Steel’s operations at the Port Talbot and Llanwern sites in Wales.This unprecedented move follows the company’s announcement of significant job losses due to the planned closure of blast furnaces, igniting widespread concern among the workforce and the surrounding communities.Historic Strike ActionThis will be the first strike action by UK steel workers in over 40 years, according to the trade union Unite. The strike, set to begin on…

Representing public service workers, including NHS staff and police, Unison has passed a motion demanding legislative action to encourage employers to adopt a four-day work week.“Trade unions fought for an eight-hour day in the 19th century and a two-day weekend in the 20th. In the 21st century, it is time to take the next step and win a four-day week with fair pay for all,” the union stated. This motion adds pressure on Labour to consider implementing a four-day work week if they secure victory in the upcoming election, as current polls suggest.Since 2019, Unison has donated over £8 million…

Octopus Energy has announced plans to repay nearly the entire £3bn cost of the government bailout for Bulb, a defunct energy provider. This move ensures that UK taxpayers will recover almost the full amount of the financial support extended for Bulb’s rescue.Bulb collapsed in 2021 due to unsustainable losses driven by rising wholesale gas prices, which were not offset by the price cap set by Ofgem. In a bid to stabilise the situation, Octopus Energy took over Bulb in 2022, backed by a government funding facility amounting to £4.5bn.Despite the available funds, Octopus utilised only £1.6bn. The company, the UK’s…

Government borrowing in the UK surged to £15bn in May, marking the highest level since the Covid crisis. This figure, though staggering, was lower than the forecast by the Office for Budget Responsibility. The significant rise in borrowing underlines the ongoing fiscal challenges faced by the government.As the general election looms, the victorious party will grapple with significant challenges concerning tax, spending, and debt. Michal Stelmach, senior economist at KPMG UK, warned, “Government borrowing holds steady but the fiscal Pandora’s box awaits the next chancellor. Interest rates are set to remain higher, debt more difficult to bring down, and spending…

Retail sales volumes in May increased by 2.9%, exceeding expectations. This surge was driven by improved weather and higher disposable incomes.Consumer confidence also reached a three-year high, indicating a positive outlook for future spending. The rise in sales marks a significant recovery from April’s downturn.May’s Retail ReboundAccording to the Office for National Statistics, retail sales volumes surged by 2.9% in May, well above City analysts’ expectations of a 1.5% rise. This remarkable recovery follows an upwardly revised 1.8% contraction in April, indicating a significant turnaround in consumer activity.The sharp increase in sales was predominantly driven by non-food transactions, which saw…

British heritage brand, Belstaff, is embarking on a significant expansion by opening new stores in key European locations.Celebrating its centenary, Belstaff aims to revitalise its retail portfolio with a modern architectural approach.The flagship store on London’s Regent Street, reopened with a fresh design concept, will serve as a template for future stores.Upcoming store openings are planned in Edinburgh and London, along with Germany and Spain, indicating a strategic growth direction.Belstaff’s focused store expansion is aligned with their objective to target younger demographics and enhance brand presence.Belstaff, a name synonymous with British heritage and fashion, is set to mark its 100-year…

Frasers Group is reportedly on the brink of acquiring the online luxury platform Coggles from THG, marking a significant shift in the e-commerce landscape.The deal is in advanced discussions and may be formally announced soon, strengthening Frasers Group’s foothold in the luxury sector.Coggles, which began as an independent boutique in 1974, was acquired by THG in 2013 following administration troubles.THG is divesting non-core assets, following recent sales including ProBikeKit and focusing on other strategic sectors.Neither Frasers Group nor THG have provided official comments on the prospective acquisition.Frasers Group is reportedly in advanced negotiations to acquire Coggles, currently owned by The…

Despite Conservative pledges to keep state pensions tax-free, a report by LCP reveals that some pensioners already pay income tax on their state pensions due to complexities in the current system.Future increases in state pensions could push them above the £12,570 income tax threshold, challenging current tax policies.The standard new state pension is currently below the £12,570 income tax threshold. However, future increases could push it above this limit, leading to potential tax liabilities for pensioners. The Conservative manifesto includes the ‘triple lock plus,’ a commitment to raise the tax-free threshold to prevent the new state pension from being taxed.Even…