Category: Business

From festivals in Florida to touring Dracula’s digs in Romania, we round up the best destinations to visit this October. As summer abandons Europe again this October, eke out the last of the rays and raves in Ibiza, where nightclubs will be going out with a bang for the winter break. When the party finally stops head to the island’s north.

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Tony Blair rallies the elite for a Macron-style transformation of British politics Business

The Tony Blair Institute insisted the conference was not about creating a new political party. However, the summit will fuel speculation that the group will eventually become a party after Labor has moved leftward since Mr Blair left office.

A source told Politico: ‘There are people who think it’s the new embryonic center party, but no one wants to say that.’

The Britain Project’s advisory board includes a number of former MPs and ministers ousted from their parties by less centrist policies. It includes former Conservative ministers cut off from the party after Brexit, Rory Stewart and David Gauke, and ex-MPs Angela Smith and Luciana Berger, who left Labor to join Change UK.

Sir Tony first mentioned the work on the conference in a speech in January as he warned of a “gaping hole in the government of Britain where new ideas should be”.

He said Brexit, technology and climate change are three “game-changing changes” the UK is “ill-prepared” for.

Sir Tony said: “We need to make our economy highly competitive, attract world-class talent and make our independence from the EU a platform for economic growth.

“But he needs a plan, into which hard work and thought have gone. Policy details. Strategic analysis. Currently, there are none.

The Tony Blair Institute has been contacted for comment.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-27 12:00:36

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Nicola Sturgeon faces Whitehall begging for extra funds after £3.5bn overrun Business

Nicola Sturgeon will be forced to beg Whitehall for additional funding after the SNP pledged to spend more than £640 per person in Scotland, economists have said.

The Scottish government’s spending review on Tuesday is expected to show a £3.5billion black hole in its budget by 2026-27, according to the Institute for Fiscal Studies (IFS).

David Phillips, associate director of the think tank, said the SNP faced “very tough decisions” unless the UK government came to the rescue with additional funding.

He said: “A series of costly spending commitments on top of underlying spending pressures means the Scottish Government faces a budget deficit of billions over the next four years on current forecasts.

“Because it cannot borrow to fund day-to-day spending except in certain limited circumstances, next week’s Scottish Spending Review could see the announcement of sizeable tax increases or spending cuts for lower priority services, and even the abandonment of certain political commitments, to balance the budget.

Alternatively, he said, the Scottish Government could “pin its hopes” on additional funding – which is “effectively the bet” the SNP made in its 2021 election manifesto.

Mr Phillips said the plan may not succeed this time.

He said: “While further top-up funding could be on the way, it seems unlikely that the UK Government will complement its plans with anything like enough to allow the Scottish Government to pay for all of its policy priorities without making hard choices. in matters of taxation. and/or other areas of expenditure.”

The £3.5billion deficit is the Scottish Government’s central forecast for its five-year deficit, but it has projected a range from a £10billion deficit to a £4billion surplus pounds sterling, which Mr Phillips said ‘almost certainly overstates the degree of uncertainty’. ”.

In his analysis, he said the numbers could change, but a “substantial” funding gap seemed likely.

Mr Phillips added: “Difficult choices on Scottish taxation and spending over the next few years will eventually have to be faced.

“Political considerations – including those relating to the Scottish Government’s desire to hold another independence referendum – will no doubt play a role in whether or not these choices are clarified next week.”

Mr Phillips said the Treasury would need to increase spending by more than £40billion to fill the Scottish government’s funding gap.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-27 10:16:41

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Sunak insists energy subsidies won’t fuel inflation Business

ggood morning.

All eyes are on Rishi Sunak this morning as we digest the latest measures to tackle the cost of living crisis.

Paul Johnson, director of the IFS, has warned that there is a risk that inflation will be even higher if the Chancellor gives in to the temptation to offer more and more handouts.

He told BBC Radio 4: “Generally when you have very high inflation you have to be very careful not to put more money into the economy.

“I think the biggest risk here is that the Chancellor will be tempted to do it again and again and I think if that happens we could really be in for some trouble.”

It comes after the Chancellor unveiled a £15billion package of measures to help households cope with rising energy bills, which will be funded in part by a windfall tax on oil and gas profits .

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5) Fears of French broadband takeover as billionaire’s stake in BT triggers national security review Business Secretary Kwasi Kwarteng orders review before possible takeover

What happened overnight

Hong Kong shares rose more than 3% on Friday morning on a rise in tech companies after strong profits from Alibaba and Baidu. Shanghai, Tokyo, Seoul, Sydney, Singapore, Taipei, Manila, Jakarta and Wellington were also up sharply.

coming today

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  • Economy: Basic Personal Consumption Expenditure (US), Personal Income (US), Michigan Consumer Confidence Index (US)

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Source: www.telegraph.co.uk
This notice was published: 2022-05-27 07:30:21

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What is the exceptional tax and how does it work? Business

How will this work?

Mr Sunak is introducing a temporary 25% “energy profit tax” to reflect the “extraordinary profits” made by oil and gas companies.

They now face a headline tax rate of 65%, which is a combination of corporation tax – currently at 19% – existing additional levies and windfall profits tax. This figure is much higher than that of companies in other sectors which currently pay the 19% corporation tax. Some sectors have additional charges, such as an 8pc bank surcharge.

The new tax will only affect profits made after May 26, 2022 and will be “phased out when oil and gas prices return to historically more normal prices”.

Official documents accompanying the announcement indicate that it could last until 2026, with a clause removing the tax on December 31, 2025.

It is expected to bring in around £5billion in its first year, according to the Treasury, and will be calculated in a ‘similar manner’ to existing corporation taxes. It will not apply to the electricity generation sector.

The levy also includes an investment allowance, which will try to incentivize these energy companies to spend money by offering 91p in tax relief for every pound invested.

In theory, oil and gas companies that significantly increase their investments would result in significant relief, which could partially offset the boost to treasury coffers from the windfall tax.

How does the tax work in other countries?

It is not unprecedented. Other countries have already turned to windfall taxes to ease the pressure on household budgets.

Last September, when gas prices first soared, the left-wing government of Pedro Sanchez in Spain announced a one-off €3bn (£2.6bn) tax on ‘excess profits’ » energy companies to help pay for tax cuts for consumers.

Italy also imposed additional taxes on utility profits. Last month he announced a one-off 10% tax on some energy companies to fund household aid as the country relies heavily on Russian gas.

What has the UK done before?

It is also not the first time that the British Treasury has launched a raid on companies with inflated profits.

In 1997, then-Chancellor Gordon Brown announced a windfall tax on the “excess profits” of public services following their privatization by previous Conservative governments. It aimed to rectify the “bad deal that customers and taxpayers got from the privatization of public services”.

The £5billion raised was used to fund an in-work welfare scheme known as the ‘New Deal’, which aimed to reduce unemployment.

Meanwhile, in 1981, Margaret Thatcher imposed a windfall 2.5% tax on banks as interest rates soared. It raised £400m, or around £3bn in today’s money.

What are the critics saying?

Opponents of windfall taxes warn it could hamper investment at a time when the UK is trying to increase spending to shore up the country’s energy supplies in the wake of Putin’s war.

BP chief executive Bernard Looney said a windfall tax “is not going to spur more investment” and many ministers agree. In March this year, Kwasi Kwarteng warned the plans would be ‘a tax on jobs, destroy investment and add uncertainty to oil markets’.

Earlier this month, the business secretary added that the tax ‘doesn’t make sense’ if Britain is to encourage investment in the North Sea and have domestic energy supplies.

Many worry that it could also send the wrong signal to foreign investors if they think windfall profits could be targeted in the future.

Critics also point out that retirees often benefit from the profits of oil giants because pension funds own shares in them.

This article is updated with the latest information.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-27 06:17:41

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Putin’s “love at first sight” heralds the end of globalization, warns Olaf Scholz Business

He said: “The particular phase of globalization that we have experienced in North America and Europe over the past 30 years, with reliable growth, high levels of value added and low inflation, is coming to an inevitable end.

“One reason for this is that low-cost producers in the Global South are gradually becoming prosperous economies with their own demand, which aspire to the same level of prosperity as we do.

He admitted that globalization had made losers and said it needed to get “smarter”.

Mr Scholz said the rush to boost energy security “will have an impact on European economies”.

“We feel that, not least through rising energy prices and, of course, that poses a very particular challenge for a country like Germany, which is an industrialized nation.”

Germany is one of the countries most dependent on energy imports from Russia and has refused to support a gas embargo to put pressure on the Kremlin. German households and factories are being hit by soaring energy prices and the Bundesbank has warned of a sharp contraction if Russia’s gas supply is cut.

“We cannot allow Putin to win his war, and I firmly believe he will not win it,” Scholz said.

“He failed to achieve any of his strategic goals. Russia seizing all of Ukraine seems less likely now than it did at the start of the war, not least because of the remarkable defensive actions carried out by the Ukrainian army and the European population.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-26 12:34:25

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Trade ‘memorandum’ signed in Indiana as hopes of post-Brexit deal with US fade Business News

Britain signs its first trade ‘memorandum’ with Indiana, suggesting that a post-Brexit deal with the whole of the United States is out of reach.

Ministers hail the rapprochement with the 17th largest state by population as “a major milestone” from which businesses will “start to reap the rewards”.

Talks are underway with about 20 other states and the Department of International Trade expects about eight “memorandums of understanding” to be concluded soon.

However, the announcement did not include any concrete changes that would flow from the early results of what the department calls its “state-level strategy.”

It would “seek to improve procurement processes and strengthen academic and research ties” and “support our talented professionals with diversity provisions,” the department said.

The memorandum “would pave the way for the recognition of professional qualifications”, according to a press release.

The new strategy is being pursued after Joe Biden made it clear that a US-UK free trade deal was not on the table, even before the latest crisis over London’s plans to tear apart the Northern Ireland protocol.

It was promised as a major Brexit prize, with campaigners lashing out at Barack Obama when he warned – in 2016 – that a deal would take a decade to complete.

Meanwhile, the UK is losing 3.5% of its GDP as it leaves the EU’s single market and customs union, the Bank of England warned this month.

Anne-Marie Trevelyan, Commerce Secretary, said: “Our ambitious agreement with Indiana will help bring value to UK businesses and support our areas of common interest, such as upgrading.

“This is Global Britain in action, making innovative deals on the world stage – and helping UK businesses grow faster, innovate more and support jobs and economic growth.”

But energy company bp America was more cautious in its description of what it called “the strengthening relationship between the UK and Indiana”.

Nick Thomas-Symonds, Labour’s shadow trade secretary, said the government was on track for “another broken promise”, having promised a US trade deal by the end of 2022.

“Ministers should also be honest with exporters – and the British public – that state-level deals do not replace the promised US-UK trade deal. “

Naomi Smith, chief executive of internationalist campaign group Best for Britain, called it “a small consolation prize for Brexiter’s most storied US trade deal, which is now frozen indefinitely”.

And Sarah Olney, the Liberal Democrat trade spokeswoman, said: ‘Boris Johnson can’t pull the wool over anyone’s eyes – being left to negotiate with one state at a time with his tail between his legs.’

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Source: www.independent.co.uk
This notice was published: 2022-05-26 23:10:57

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Motorists hit by daily toll in Hammersmith Bridge reopening plans Business

Motorists could be hit with a daily toll if Hammersmith Bridge is partially privatized to pay for repairs to the west London crossing over the River Thames – with work eventually due to start in October.

Thousands of drivers risk being slapped daily by private investors who could finance the bridge’s long-awaited renovation.

Authorities are consulting on how to fund a £130m ‘stabilization and strengthening process’ to reopen one of the world’s oldest mechanical suspension bridges. It has been closed to vehicles for more than three years.

Equity and debt investors are being asked to submit ‘expressions of interest’ by the board of Hammersmith & Fulham, according to a government filing released this week.

Preparatory work to facilitate the long-awaited repair of the bridge will officially begin in October, he added.

The prospect of private investors being brought in to pay for the work increases the risk that thousands of Londoners will be hit with a toll every day to use the 19th-century bridge, local MP Sarah Olney said.

The 135-year-old level crossing, a crucial part of South West London’s road network, has been closed to traffic since it was declared unsafe in April 2019. Prior to its closure, some 22,000 vehicles crossed the bridge every day.

The closure followed an inspection by engineers, who discovered so-called microfractures from decades of uncontrolled corrosion that are riddled throughout the suspension structure.

Unlike many other London bridges over the Thames, the crossing is owned by the local council rather than Transport for London. Hammersmith & Fulham does not have sufficient funds to pay for the necessary repairs.

The situation descended into farce last year when the bridge was reopened to pedestrians and cyclists just months after millions of pounds were spent choosing a river ferry operator to run services between the northern shores and south.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-26 13:56:20

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Workers accused of wanting ‘pop star’ treatment and four-day weekends Business

Mr Ulbrich told Bloomberg: “The idea of ​​flexibility is not to give people a four-day weekend and a three-day working week, it’s to tie that flexibility into your private life. .”

He said the main benefit of the office environment was that “it’s much more productive when you need others” to do your work, adding: “You get a better result if you’re in a room together. »

City leaders have been reluctant to require employees to return to their pre-pandemic working habits of being in the office five days a week for fear of staff uprisings.

Wall Street giants such as Goldman Sachs and JP Morgan were only among a handful of large employers to require staff to be back in their offices full-time.

However, amid a scorching job market, even banks notorious for having a grueling long-hours culture are introducing new perks in an effort to keep workers on their side.

Last week The Telegraph revealed that Goldman will allow its senior bankers to take as many vacations as they want under a new holiday scheme.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-26 14:21:09

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Russia cuts rates again to contain soaring ruble Business

The ruble fell 6.9%, after falling 5.7% on Wednesday.

After plunging to nearly half of its pre-war value following the invasion of Ukraine, the currency quickly recovered, buoyed by Russia’s massive trade surplus and capital controls. Its trade surplus hit $58 billion in the first quarter of the year, the highest in recent history.

The central bank meeting was brought forward two weeks and took place earlier in the day than usual. There was no accompanying press conference by Elvira Nabiullina, its governor.

Official data indicates that annual consumer price inflation hit 17.8% in April, the highest since the early years of Vladimir Putin’s regime.

William Jackson of Capital Economics said the move “was clearly driven by the remarkable rally in the rouble”, which traded at 60 to the dollar earlier in the week. Before the invasion, it traded around 75 rubles to the dollar, but in March it fell almost 140.

The strength of the ruble worries the Kremlin because it risks making the income of Russian exporters less valuable on the domestic market, which could tip the country into a budget deficit.

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Source: www.telegraph.co.uk
This notice was published: 2022-05-26 16:48:10

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Rishi Sunak announces incentives to extract fossil fuels amid climate crisis Business News

Rishi Sunak has been accused of jeopardizing Britain’s reputation as a climate leader by announcing tax relief measures that will encourage energy companies to invest in fossil fuel extraction during a climate emergency.

Climate groups and opposition politicians chastised the Chancellor for encouraging oil and gas extraction when climate scientists, the United Nations and the International Energy Agency made clear the world must stop new investments in fossil fuels.

“It is foolish and foolish, even by the low standards of this government, to not only allow but in fact encourage the production of new climate-destroying fossil fuels, rather than keeping them firmly in the ground to which they belong,” Green MP Caroline Lucas said. Told The Independent.

“This measure will not only make absolutely no difference to families’ energy bills, [but] any new fossil fuel production acts as a wrecking ball for our net zero climate goals and embarrasses us on the world stage, especially while we are still [retain] the presidency of COP26.

Rishi Sunak announces £15billion cost of living crisis package

The incentive was part of a package of announcements aimed at tackling Britain’s cost of living crisis, which included a temporary 25% levy on oil and gas companies’ windfall profits to help support households in difficulty.

To ensure businesses are not deterred from investing by the new tax, Mr Sunak announced that those who invest in oil and gas extraction will be entitled to significant tax relief on such expenditures.

“The UK government’s position breaks the commitment it made in climate talks last year to phase out subsidies to oil and gas projects,” said Tessa Khan, director of Uplift, a group that campaigns for a fair and fossil fuel free UK. The Independent.

“It’s also completely contradictory when it comes to both getting out of the climate crisis and tackling the cost of living crisis,” she said. “Fossil fuels are at the heart of both, and yet the Chancellor is doubling down and encouraging companies to extract more of them.”

Oil industry analysts and executives have suggested the measure would not fundamentally change the investment strategies of energy firms, as the investment tax break, as well as the tax on their profits, is due to expire in 2025.

“That’s quite a short time for companies considering investing in the North Sea,” said Sam Alvis, head of economics at Green Alliance.

An energy company executive who spoke with The Independent on condition of anonymity, said the announcement would not significantly change the course to net zero, as the company’s investment horizons are mostly five or 10 years.

Nevertheless, the executive described the government’s decision as “messy” and “puzzling”.

“We’re trying to sell a message to our shareholders — that investments and dividends will need to be shaped, focused on securing a net-zero compatible future,” the executive said.

“It clouds the waters, with a mixed message about where government investment should be concentrated.”

Companies can get tax relief for investments in renewable energy through the super-deduction mechanism. This gives companies tax breaks on investing in physical capital.

However, the mechanism can also be used to invest in fossil fuel infrastructure, according to Alvis.

Ami McCarthy, a political campaigner for Greenpeace UK, called the tax relief announced on Thursday “utter stupidity”. “The Chancellor is either in the oil and gas industry’s pocket or just happy to see the world burn,” she said.

Ed Davey, leader of the Liberal Democrats, said to reach net zero the country must go “to hell for leather for renewable energy”.

“We should be cracking down on new exploration because it’s not necessary,” he said. “If you really wanted to get to net zero, if you really wanted to protect us from climate change, if you really wanted to make sure our country was independent from Russia and other people, you would go a lot more into renewable energy. So why don’t they?

A Shell spokesman said the company had “constantly stressed” the importance of a stable environment for long-term investment. “The Chancellor’s proposed tax relief on investing in Britain’s energy future is a key tenet of the new tax,” they said.

The spokesperson confirmed that Shell still intends to spend 75% of its planned £20-25bn investment in the UK energy system on low and zero carbon products and services, including wind offshore, hydrogen, carbon use and storage and electricity. mobility.

A BP spokesperson said: “As we have said before, we see many opportunities to invest in the UK, in energy security today and in the energy transition of tomorrow.

“Naturally, we will now have to consider the impact of both the new levy and the tax relief on our investment projects in the North Sea.”

The Treasury refused to…

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Source: www.independent.co.uk
This notice was published: 2022-05-26 19:54:13