Billions For Building
The London Rush
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Morning, I'm Louise Moon
Remember levelling up? Well, the north and midlands are set for £15 billion of new tram links, train lines and bus stations.
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Yahoo
22 minutes ago
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A new tax on homes? Map shows areas most affected by Rachel Reeves' '£500,000 levy'
The Treasury is reportedly considering a major tax overhaul which could see the introduction of new local and national property taxes. The Treasury is reportedly considering plans to raise money from a new national property tax on the sale of homes worth more than £500,000. Officials have been asked to look into how this "proportional" new tax would work in practice, with sources telling the Guardian that it would replace stamp duty on owner-occupied homes. No final decision has been made, but it is thought this national tax could also help build a model for local levies to replace council tax in the medium term. One estate agent has told Yahoo News that while stamp duty is "unfit for purpose", concerns remain that the tax will be "punishingly high" and the cost of some properties could "skyrocket". Chancellor Rachel Reeves is reportedly considering a number of tax reforms ahead of the autumn budget as the Treasury attempts to raise £40bn to plug its funding gap. A new property tax would allow Labour to stick to its manifesto commitment not to raise income tax, employee national insurance, or VAT, and, as some argue, would be fairer and help address regional inequalities. Here's what we know so far about the reported proposals. What is stamp duty? Buyers currently pay stamp duty if they purchase a property worth more than £125,000 in England or Northern Ireland. First-time buyers are entitled to some relief from the tax, paying 0% on the first £300,000 of the value of their new home, and 5% on the portion between £300,001 and £500,000, as of April 2025. Stamp duty is only paid by the person buying a property, not selling it. It is an unpopular tax among many, with Tax Policy Associates arguing it "reduces transactions, distorts the housing market and often stops people moving when they want to". "Stamp duty makes it harder to borrow from a bank (because the stamp duty is 'lost value')," the think tank adds. "All of this means it reduces labour mobility, results in inefficient use of land, and plausibly holds back economic growth. What is a national property tax? If ministers do go ahead with these plans, the new levy would be paid by owner-occupiers on houses worth more than £500,000 when they sell their home. The amount due would be determined by the value of the property and a rate set by the government, according to officials. They say the Treasury is partly basing its plans on a report by centre-right think tank Onward published in August last year. It suggests that an annual rate of 0.54%, with a 0.278% supplement on property valued over £1m would "raise the same amount as stamp duty". "The new tax would be payable on owner-occupied property only after a sale" and payment would rise annually by inflation, suggests the report's author, former government adviser Dr Tim Leunig. The map below shows the average house prices for May 2025 across the UK, according to the Office for National Statistics. The overwhelming majority of properties impacted are likely to be in London and the South East. What is the local property tax? Ministers are also understood to be considering another recommendation in the report to replace council tax with a local property tax, which Dr Leunig says would be more in line with property values. He says this would be levied on house values up to £500,000 with a minimum annual payment of £800 and would be payable by the owner, rather than the resident. The Treasury has remained tight-lipped on these plans so far, with a spokesperson saying: "As set out in the plan for change, the best way to strengthen public finances is by growing the economy – which is our focus." Treasury minister Torsten Bell was guarded when asked about the proposals, telling Sky News: 'I'm a newish MP but I'm not an idiot. You know that tax decisions are made by the chancellor. "I'm not going to start speculating on individual taxes because then you'll ask me another three questions about other taxes." Before becoming an MP, Bell was CEO of the Resolution Foundation think-tank, which advocated for scrapping council tax. The map below shows the regional proportions of homes in England for sale over £500,000, according to Rightmove. What homes will a new 'property tax' affect? Based on current proposals, the tax would be paid by owner-occupiers on homes worth more than £500,000. However, this new tax would not replace the higher rate of stamp duty paid by people buying second homes, including buy-to-lets. Onward's proposal has "no tax until £500,000, and only small amounts for properties a little above that", which will be welcome news for those looking to buy a home under the threshold. On the proposed changes to council tax, assuming stamp duty is also replaced, Onward's report says that those living in the lowest council tax band of A stand to benefit the most. This is because the new system would see "those whose houses are worth more than average" paying more, when under the current system, "those with the most valuable houses pay less". What have experts said? Stamp duty has been a "huge barrier to movement, from first-time buyers to downsizers", says Rightmove's property expert Colleen Babcock. "If changes are brought in that make home-moving genuinely more affordable for people then we would welcome them, but without firm details it remains to be seen if a different type of taxation would leave property owners better or worse off in the long run." With no confirmation of the plans, Sarah Coles, head of personal finance at Hargreaves Lansdown says those in the process of buying or selling a home shouldn't "change their plans". "The risk is that even if this doesn't happen, it could tempt people into knee-jerk reactions that could leave them worse off," she tells Yahoo News. "Anyone planning to sell a valuable property might be worried that their tax bill could rise if they sell after the budget, so it could persuade them to rush to the market. "Meanwhile, anyone planning to buy might be worried about the rumours of an annual tax, so hold back. "The imbalance of supply and demand could mean the market dries up and property values fall. Those who plough on with a sale at a lower price could end up taking a significant price cut to escape a tax that never happens." What impact could the policy have? Simon Gerrard, chairman of Martyn Gerrard Estate Agents, says the existing stamp duty system is "unfit for purpose and has had a chilling effect on the housing market". He welcomes the government's attempts to fix the "broken system" and says that the tax being paid by the seller, rather than the buyer, "won't be the same tax on aspiration that stamp duty currently is". 'However, it's clear that the government is motivated by a desire to raise revenues and I'm concerned that this new tax is going to be punishingly high," he adds. "If that's the case, you're going to see a ceiling at the £500,000 threshold for that band of the market, as people avoid falling under the regime, and then a significant jump in values with nothing in between. "Prices above £500,000 will skyrocket as sellers account for the losses caused by the tax, that used to be paid by the buyer." In particular, Gerrard is worried that the reforms will disproportionately affect families in London, where, according to Rightmove, the average price of a property is now £666,983. "If prices surge higher because of this new regime, how will anyone in the capital start a family? "If Labour wants to support working people, as it claims, then it must raise the threshold to pay this tax for London and the Southeast. Otherwise, these new measures will only further penalise those who are already having to pay the most." Read more Kirstie Allsopp accuses Rachel Reeves of 'punishing' homebuyers as Chancellor 'mulls new property tax' (The London Standard) Which taxes could rise in the budget to fill £40bn black hole? What we know (Yahoo News) Property tax across Europe: Which countries collect the most, and what's their share of total tax? (Euronews)
Yahoo
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UK insurers face challenges in EV adoption
GlobalData's survey reveals battery-related protection features are among the most valued aspects of electric vehicle (EV) insurance. The UK motor insurance sector has encountered considerable challenges as it adjusts to the changing landscape of EV adoption. Although there were optimistic expectations that government incentives and environmental policies would hasten the shift to EVs, the actual rate of adoption has not met those forecasts. This slower uptake has heightened concerns among insurers, who are already dealing with the unique risks and expenses associated with EV ownership. Results from GlobalData's 2024 Emerging Trends Insurance Consumer Survey reveals that 34.1% of drivers rated battery cover for theft, failure, or explosion as 'extremely important,' while an additional 48.8% considered it 'very important.' Furthermore, assistance to reach a charging station if the battery runs out was deemed as extremely important by 36.6% of respondents, underscoring the demand for support services tailored to address EV reliability concerns. Insurers are increasingly pressured to modify their products to cater to the specific needs of EV drivers, which differ significantly from those of traditional vehicle owners. Research from industry bodies found escalating battery replacement costs, a lack of repair expertise, and a shortage of specialised parts have all contributed to uncertainty regarding claims and pricing models. Industry experts stress the necessity of aligning insurance coverage with the realities of EV usage and the evolving expectations of consumers. Interestingly, this consumer focus on coverage aligns closely with earlier industry insights. In a GlobalData poll ran on Verdict Media sites in Q2 2023, when asked about the biggest challenge for insurers in the transition to EVs, 39.6% of respondents identified the cost of repairs as the primary issue. This reinforces the findings from 2024, as the high expenses associated with battery replacement and repair work remain a central challenge for insurers, directly influencing policy design and pricing strategies. To effectively address these challenges, insurers should consider implementing educational campaigns to inform consumers about the unique aspects of EV insurance, enhancing customer service related to EV coverage, and actively engaging with stakeholders in the EV ecosystem. Insurers may need to focus on innovation and collaboration with EV manufacturers and repair networks. Tailored products, particularly those that address battery risks and roadside support, could become crucial differentiators. Ultimately, the gap between EV adoption forecasts and the current reality highlights both the volatility of the motor insurance market and the importance of building consumer confidence through responsive, specialised coverage. "UK insurers face challenges in EV adoption" was originally created and published by Life Insurance International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
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Starling agrees to acquire accounting tools provider Ember
Starling Group has announced an agreement to acquire Ember, a UK-based accounting fintech company, for an undisclosed sum. The acquisition aims to integrate Ember's digital tax and bookkeeping software into Starling Bank's existing app and online banking platform, providing small business owners with a solution for managing finances including bank transactions and tax submissions. Starling said the integration comes as many sole traders, landlords, and small and medium-sized enterprises (SMEs) are not yet prepared for the UK's Making Tax Digital initiative, which becomes compulsory from April 2026. The legislation mandates that sole traders and landlords earning above a certain threshold submit quarterly tax reports to HM Revenue and Customs (HMRC) using approved software, alongside their annual self-assessment. Ember's software, recognised by HMRC, is designed to assist business owners in meeting these requirements. Starling Group CFO Declan Ferguson said: 'We are a natural fintech consolidator, so targeted acquisitions like Ember will form a key part of our strategy as we continue to develop Starling Bank in the UK and Engine by Starling overseas. 'Just as Fleet Mortgages has flourished since we bought it in 2021, I am confident that Ember's best-in-class tools will become a fantastic addition to Starling Bank's offering.' Ember co-founders Daniel Hogan and Aaron Shaw said: 'We created Ember to take the pain out of accounting for small businesses – to help people make faster, clearer financial decisions without the stress. 'Making Tax Digital has created a real call to action for SMEs and Ember provides the solution to this. Our deal with Starling Group will mean that we are setting a new standard for how banking and accounting should work together – seamlessly integrated and refreshingly simple.' Starling Bank, which is said to have a 9% market share in small business banking, plans to fully integrate Ember's software by the end of 2025, facilitating compliance with the new digital tax legislation. Currently, Ember caters to clients of major banks such as HSBC, Revolut, Barclays and Lloyds. However, from 2026, its software will be exclusive to Starling Bank customers. Starling also plans to discontinue Ember's accountancy advisory services following the acquisition, which remains subject to customary closing conditions. "Starling agrees to acquire accounting tools provider Ember " was originally created and published by International Accounting Bulletin, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
