UK's Petrofac secures court approval for $355 million funding boost
The embattled firm struggled with cost overruns and payment delays for most of last year, leading to multiple profit warnings in the past year.
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Daily Mail
2 minutes ago
- Daily Mail
Dragons' Den icon Theo Paphitis warns 'high streets will not survive if shops are hit in next Budget'
Dragons' Den icon Theo Paphitis has warned of mass closures if shops are hit even harder at the next Budget. The businessman, who owns the stationary chain Ryman, issued a stark warning that the UK high street may not survive further tax hikes. Companies are already being hit with hefty business rates - with speculation growing Chancellor Rachel Reeves may pile on the pain in the autumn. Mr Paphitis highlighted the immense burden smaller businesses are carrying compared to online giants who are paying 'next to nothing'. Firms have also been battered by hikes in National Insurance contributions and an inflation-busting increase in the minimum wage which came into effect in April. Writing in The Sun, Mr Paphitis said: 'After everything the high street has been through, asking it to carry even more weight would be the final straw for many. 'The government must ensure that no shop pays more in the upcoming Autumn Budget.' He added: 'Once a shop shuts, it is far harder and costlier to bring it back, meaning each closure represents a long-term wound to the health of the high street.' Mr Paphitis has previously criticised the business rates system, which he says the government has failed to properly reform. He argued that it unfairly hits bricks and mortar businesses, while online and technology giants only face the tax on their warehouses. Mr Paphitis's comments come as store closures this year are predicted to top 17,000 this year. It is the highest figure since the Centre for Retail Research (CRR), which compiled the report, began collecting the data in 2015 and follows the closure of 13,479 stores last year. The vast majority of closed shops in 2024 – 11,341 – were independent retailers, a 45.5 per cent jump against the previous year. Business leaders have called for the Chancellor to 'urgently' change course with her tax-raising policies to prevent British high streets from becoming ghost towns. The CRR's forecast of 17,350 store closures would make 2025 worse than 2022, when the withdrawal of government support measures following the pandemic caused 17,151 shops to close. Around 16,145 stores shut their doors at the height of lockdown in 2020. Professor Joshua Bamfield, director of the CRR previously said: 'Whilst the results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse to come in 2025.' Of the predicted 2025 figure, the vast majority of store closures, 14,660, are expected to be independent retailers. These firms usually operate on very tight profit margins and may not have enough cash to cover the cost of the Treasury's tax raid and minimum wage hikes. 'This is a tragic scenario that we warned the government could come to pass if they did not change course,' said Andrew Goodacre, head of the British Independent Retailers Association. He added: 'Overall costs for independent retailers are going up and the planned increases in National Insurance, minimum wage and business rates will leave many with no choice but to shut up shop.' Ms Reeves declared in October that employers would pay a 15 per cent National Insurance rate on staff salaries exceeding £5,000 from April rather than the current 13.8 per cent levy on wages above £9,100. She also said the National Living Wage would go up by 77p to £12.21 per hour, alongside increases in the capital gains tax rates on selling business assets. Retailers have been among those leading the charge against the Chancellor's punishing tax measures. In November, more than 80 bosses signed an open letter to Reeves warning that her Budget plans would force them to hike prices, cut jobs and close stores. Signatories included the heads of high street giants Marks & Spencer, Next and John Lewis as well as the major supermarkets such as Tesco, Sainsbury's, Morrisons and Asda. Meanwhile, firms have called for ministers to reform the business rates system to make physical shops more competitive with their online counterparts.
Daily Mail
30 minutes ago
- Daily Mail
We paid HMRC thousands to boost our state pensions - months later, we've got no idea where the cash has gone
Pensioners who spent thousands of pounds to boost their state pensions have received nothing for their money since it vanished into government coffers months ago. Hundreds of thousands of older people rushed to take advantage of a special deal – before it ran out in April – that would increase their retirement income. The offer allowed people to fill gaps in state pension records going back to 2006, rather than just the past six years.
The Independent
an hour ago
- The Independent
Treasury considers inheritance tax reforms to fill £50bn spending gap in budget
Rachel Reeves is looking to raise more money by tightening the rules around inheritance tax in the autumn budget, it's been reported. Amid growing pressure regarding the state of the UK's finances ahead of the autumn budget, the chancellor is looking to address a blackhole left by Labour U-turns, higher borrowing and sluggish economic growth. Economists have warned Ms Reeves that she must raise taxes or tear up her flagship borrowing rules to fill the shortfall in public finances. According to a report in The Guardian, the Treasury is now looking at options on inheritance tax like changing rules to restrict the gifting of money and assets Under current rules, unlimited amounts of money and assets can be gifted to relatives and friends which avoids inheritance tax, provided that it is gifted at least seven years before the benefactor dies. Money given less than three years before is taxed at the full inheritance tax rate of 40 per cent, while gifts given between seven and three years has a 'taper relief' tax, which is between eight and 32 per cent. The Guardian reports that the Treasury is considering a lifetime cap to limit the amount of money an individual can donate outside of inheritance tax, as well as reviewing rules around the taper rate. 'With so much wealth stored in assets like houses that have shot up in value, we have to find ways to better tap into the inheritances of those who can afford to contribute more,' a source told the newspaper. 'It's hard to make sure these taxes don't end up with loopholes that undermine their purpose. But we are trying to work out what revenue might be raised and how to ensure it's a fair approach.' However, it has been reported that no substantive talks at a senior level have occurred about inheritance tax, and no decisions have been made. Reeves has already ruled out increases to income tax, national insurance and VAT, while inheritance tax brought in a record £6.7bn in 2022-2023. However, recent analysis that showed wealthy investors are leaving the UK because of measures such as the abolition of non-dom status has caused nervousness. A Treasury spokesperson said: 'As set out in the plan for change, the best way to strengthen public finances is by growing the economy – which is our focus. Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by £6.8bn and cut borrowing by £3.4bn. 'We are committed to keeping taxes for working people as low as possible, which is why at last autumn's budget we protected working people's payslips and kept our promise not to raise the basic, higher or additional rates of income tax, employee national insurance or VAT.'
