Former Treasury adviser says tax changes won't fix £50bn black hole
Jonathan Portes, a former Treasury adviser, stated that while inheritance tax reform is needed, these changes would not generate the tens of billions required to fill the estimated £50bn black hole.
Critics, including Tory shadow chancellor Sir Mel Stride and various tax experts, warn that the proposed changes could penalise working families, deter pension savings, and negatively impact economic growth.
Concerns have been raised that the reforms could result in a larger portion of estates going to the Treasury rather than heirs, potentially discouraging wealth accumulation and investment.
A spokesperson for HM Treasury emphasised the government's focus on economic growth to strengthen public finances and its commitment to keeping taxes low for working people.
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The Independent
26 minutes ago
- The Independent
Economic uncertainty blamed for ‘lacklustre' retail performance last month
Analysists have blamed rising economic uncertainty for a 'lacklustre' July that saw Scottish retail sales fall in real terms compared with the same month last year. According to figures from the Scottish Retail Consortium (SRC) and KPMG, total sales in Scotland rose 0.1% last month compared with July 2024, when they had decreased by 0.9%. However when adjusted for inflation this represents a year-on-year fall of 0.5%. Food sales in Scotland were down 1.4% compared with July 2024, when they had decreased by just 0.3%. This was despite a strong opening to the month when hot weather led to a 'boost' in spending on barbecues and summer meals. Non-food sales on the other hand rose by 1.4% compared with the same period last year, with analysists saying phones and some furniture and toy ranges performed well. Adjusted for the effects of online sales, non-food sales increased 1.6% on July 2024, when they had decreased by 1.5%. Ewan MacDonald-Russell, deputy head of the SRC, said: 'July was a lacklustre month for Scottish retailers as sales again disappointed. 'When adjusted for inflation retail sales in Scotland fell by 0.5%. That's a slight improvement on June's figures, but demonstrates shoppers continue to cut back on shopping as economic uncertainty continues to rise. 'Within the general disappointment there were some bright spots. Food sales shone in the opening half of the month as Scots took advantage of the warm weather to cook barbeque and summer meals. 'Phone sales did well, as did some toys and furniture ranges. Against that televisions continue to disappoint, with few households investing in high-end entertainment despite the summer plethora of sporting events. 'Fashion ranges performed poorly, albeit the likelihood is shoppers did their summer wardrobe shopping earlier in the year when the sunshine emerged. 'The harsh truth is Scots are holding back spending as worries about the economy grow. 'That is leaving shops in the lurch – facing higher costs as a consequence of last year's UK Government budget without the growth needed to pay those bills. 'With little sight the economic weather will brighten, many retailers, especially those on the high street, face increasingly unpalatable choices in the coming months.' Linda Ellett, UK head of consumer, retail and leisure at KPMG, described the current trading environment as 'challenging' for retailers. 'The UK's fifth warmest July on Met Office record brought a boost to home appliance and food and drink sales,' she said. 'But rising inflation was also a driver of the latter and monthly non-food sales are only growing at around 1% on average at present. 'With employment costs having risen and inflation both a business and consumer side pressure, it remains a challenging trading environment for many retailers. 'While the majority of consumers that KPMG surveys are confident in their ability to balance their monthly household budgets, big ticket purchases are more considered in the context of rising essential costs and ongoing caution about the economy and labour market. 'Holidays are the priority for many this summer but those heading away have had to account for a higher cost of travel. 'Consequently, spending in some areas of the retail sector remains subdued and competition for consumer spend will remain fierce.' The figures were published in the SRC-KPMG Retail Sales Monitor for July.
The Independent
26 minutes ago
- The Independent
Over 65? How instincts gained from gardening can help you spot financial fraud
Over 65s are are being urged to apply the same habits they rely on when gardening, such as sharing local knowledge and advice, to helping to protect themselves against financial fraud. Take Five to Stop Fraud has partnered with BBC Gardeners' World 's Rachel de Thame and the National Allotment Society to launch a new awareness drive called 'protect your patch'. Research commissioned by Take Five among 1,000 people across the UK aged 65-plus found that 94 per cent have either a garden or allotment. Three in 10 (29 per cent) older people would go to family and friends for gardening tips but only one in 10 (10 per cent) would ask them for tips on financial fraud, according to the survey carried out by Censuswide in July. Those behind the campaign said the same instincts – asking questions and talking the situation through with people you trust – can make a real difference when spotting and stopping fraud. Ms De Thame said: 'We can't bury our head in the soil when it comes to being educated and informed about the latest tricks that fraudsters will try and use to commit crimes against us. 'I'd like to encourage everyone to apply the same level of care and attention to protecting their finances and savings, as they would to nurturing their allotments. 'Fraudsters are an invasive species, which have no place infiltrating our finances. 'So let's stay informed about what we need to do to keep them out of our carefully nurtured and highly prized patches.' When asked what gives them the biggest sense of pride in life generally, joy in raising a family and experiencing the joy of grandchildren topped the charts at 48 per cent, with remaining physically healthy coming in second (31 per cent). A quarter (25 per cent) of older people also expressed pride in the strong and long-lasting friendships they had formed. When asked about what they feel most proud of financially, more than half (57 per cent) said financial independence gives them a strong sense of pride. Catriona Still, a spokeswoman for Take Five to Stop Fraud, said: 'Like weeds in a garden, fraud can take root unexpectedly and catch you off guard. 'We're seeing people turn to friends, family and their community for gardening advice and by leaning on those trusted voices, it can also help you stay safe from fraud by talking to someone about requests out of the blue. 'By getting a second opinion from someone you know and taking a moment to stop and challenge anything that doesn't feel right, you can protect your patch and keep your money safe. 'Criminals are getting more sophisticated and the impact of fraud can often be devastating, both emotionally and financially, so it's important to follow the advice of the Take Five to Stop Fraud campaign.' Mike Farrell, chairman of the National Allotment Society, said: 'I'm delighted that the National Allotment Society has teamed up with Take Five to Stop Fraud for this year's National Allotments Week. 'Allotments play a vital role in supporting people's mental, physical, and nutritional wellbeing and protecting financial wellbeing is an important part of that. 'By helping our members and the wider growing community stay informed and alert to the risks of fraud, we're not only safeguarding individuals but also strengthening the sense of trust and resilience within our allotment sites.' Coinciding with National Allotments Week (August 11 to 17), Take Five is reminding people to: Stop – take a moment to stop and think before parting with your money or information. It could keep you safe. Challenge – It is OK to reject, refuse or ignore any requests. Only criminals will try to rush or panic you. Protect – Contact your bank immediately if you think you have been scammed and report it to Action Fraud.
The Independent
26 minutes ago
- The Independent
King Charles and Queen Camilla to honour veterans on 80th anniversary of VJ Day
The King and Queen will honour Second World War veterans on the 80th anniversary of VJ Day. Royal British Legion (RBL) will be guests of honour at a service of remembrance at the National Memorial Arboretum on Friday. Among them will be 33 veterans aged from 96 to 105 who served in the Far East and Pacific. Charles, patron of the RBL, Camilla, and Prime Minister Keir Starmer will attend the event which honours British, Commonwealth and Allied veterans who served in the Far East theatres of war including Myanmar and the Pacific and Indian Ocean territories. , will vow that the sacrifice of heroes who fought and died in the campaigns 'shall never be forgotten'. He will reflect on the horrors experienced by prisoners of war and innocent civilians of occupied lands in the region 'whose suffering reminds us that war's true cost extends beyond battlefields, touching every aspect of life'. Charles will describe how the collaboration of countries demonstrated 'in times of war and in times of peace, the greatest weapons of all are not the arms you bear but the arms you link'. Around 1,500 guests at the national commemoration will hear first-hand testimony from veterans who experienced conflict in the Far East before the war ended when atomic bombs fell on Hiroshima and Nagasaki, leading to Japan 's surrender and VJ Day on August 15 1945. The service will begin with a national two-minute silence and include flypasts by the Red Arrows and the Battle of Britain Memorial Flight's Spitfire, Hurricane and Lancaster – with military bagpipers playing at dawn in the Far East section of the Arboretum. The Prime Minister held a special reception at Downing Street for veterans on Thursday, at which he described the Government as one of 'service'. He added: 'I sat on this terrace this very morning with President Zelensky, who is fighting for the same values as we were fighting for. 'And so when we say never forget, we must pass on the stories of those who have gone before us.' During Thursday's garden party, veteran Stanley Elliss, aged 103, and his daughter, could be seen showing the Prime Minister pictures he had taken during the war. Starmer said: 'Eighty years since our victory in the Second World War, we pay our respects to the many who fought, were captured, and made the ultimate sacrifice in the Far East. 'Our country owes a great debt to those who fought for a better future, so we could have the freedoms and the life we enjoy today. We must honour that sacrifice with every new generation.' Many of the veterans at the Arboretum in Alrewas, Staffordshire, have never told their story before registering with the RBL to be part of commemorations to mark the 80th anniversary of Victory Over Japan. Veterans attending the event on Friday served in the British Army, the Royal Navy and the Royal Air Force, with roles ranging from those deployed on submarines, minesweepers and destroyers, to a Spitfire pilot and a combat cameraman. The oldest veterans are Yavar Abbas and Owen Filer, aged 105, and other attendees include two of the last surviving Chindits – Charlie Richards, 104, and Sid Machin, 101 – who served in the elite Special Forces unit known for their deep jungle warfare tactics as part of Operation Thursday. Mr Richards, from Northamptonshire – who served in the 7th Battalion of the Leicestershire Regiment, spent months behind enemy lines ambushing Japanese supplies and communications, all while pulling along reluctant mules and heavy equipment. The 104-year-old said: 'I am so proud to attend the RBL's national event, and I think it will be a really poignant moment for those of us left. 'I want to represent all those who saw action in the Far East and remember those who never made it home, including my best friend and comrade, Son Johnson, who was killed in action in Burma. It will be such a special day for me and my family.' Joseph Hammond, 100, whose testimony will be shared during the service, will be watching the live broadcast from his home in Ghana 3,000 miles away. Mr Hammond fought in Burma in the 82nd Division in brutal conditions near the Irrawaddy River and suffered a serious eye injury and remained in hospital until the war ended. In 2020, he walked 14 miles over seven days to raise £500,000 for frontline workers and veterans during the Covid pandemic. Mr Hammond said: 'Why should such a thing happen? Man killing his fellow man. Humanity, destroying humanity. Never allow your country to go that way. It's no good. I know how it feels, so I have to advise everybody to keep away from war. Let us continue to enjoy our peace.' The service will be broadcast live on BBC One from 11.30am and will be hosted by actress and author Celia Imrie. Ms Imrie said: 'It is an honour to be hosting this momentous occasion with The Royal British Legion, to pay tribute to these courageous and inspiring veterans who are able to join us at the National Memorial Arboretum on VJ Day, and to remember those who never made it home.' Mark Atkinson, Director General of the Royal British Legion, said: 'It is an enormous privilege for the RBL to be leading the nation on the 80th anniversary of VJ Day with our service of remembrance at National Memorial Arboretum broadcast live on BBC One. 'Victory over Japan would not have been possible without the diverse contribution of Allied Forces from Britain, the Commonwealth and beyond, and this is one of our last chances to thank veterans who fought in the Far East and Pacific for their service and sacrifice. 'Their contribution brought an end to the Second World War and this is a moment for the country to come together and commemorate this momentous anniversary and pay tribute to their courage and bravery.' Around five million men and women served in the British Armed Forces during the Second World War, with millions more mobilised from countries including pre-partition India, Australia, Canada, and across the Commonwealth including African and Caribbean nations. Culture Secretary Lisa Nandy said: 'We must never forget this vital part of our national story. By coming together to hear the stories of our brave VJ Day veterans first-hand, we can ensure that the legacy of our British Armed Forces and those from across the Commonwealth is passed on to future generations.' From 9pm on Friday evening, hundreds of buildings across the country will be lit up to mark VJ 80, including Buckingham Palace, 10 Downing Street, the Houses of Parliament, the Tower of London, Tower42, The Shard, Blackpool Tower, Gateshead Millennium Bridge, Durham Cathedral, Cardiff Castle, the Cenotaph, the Kranji War Memorial in Singapore and the White Cliffs of Dover.
