Latest news with #Aim
Yahoo
21-05-2025
- Business
- Yahoo
Your savings are a lost cause under Labour. These charts prove it
Common sense dictates that saving is a good idea, in order to provide security and a better life for you and your family. But anyone living in Britain today would be forgiven for thinking there is no longer much point. A leaked memo has revealed that Angela Rayner wants to see pensions and investments hit by even more taxes, with critics arguing harsh taxes are eroding the incentive to save. It comes as banking trade body, UK Finance, this week called on the Government to ensure a 'clearer, more stable tax environment' to encourage – rather than deter – long-term saving. Yet the deputy prime minister's demand to raise taxes follows a surge in money taken from savers to fill Chancellor Rachel Reeves's coffers. The amount of tax paid on savings interest has increased tenfold since 2020-21, soaring from £1.4bn to £10.4bn in 2024-25, according to official figures. The leaked memo revealed that ahead of the Spring Statement, Ms Rayner urged Ms Reeves to bring back the pension lifetime allowance, scrap the dividend allowance, abolish inheritance tax relief on Aim shares and extend the freeze on the additional rate income tax threshold. The lifetime allowance, a cap on how much someone could save into their pension without incurring a tax charge, was scrapped in 2024 by the previous government. Baroness Altmann, former pensions minister, warned that reinstating it could damage savers' confidence in pensions, especially since many pensioners had already had their plans 'upended' by inheritance tax reforms. She said: 'It feels like the Government is doing its utmost to undermine the incentive to save by chopping and changing policies. 'We have to make pensions an attractive vehicle for long-term planning, and these proposals are making a lot of people think they might not be because you might be hit by an unexpected tax bill.' The £20,000 cash Isa allowance is also still under threat from Ms Reeves as she plots a review of the tax-free savings regime to encourage more people to invest. Jason Hollands, of the investing platform Bestinvest, said: 'The environment for savers and investors in the UK has become steadily more hostile in recent years. 'While Rachel Reeves's inaugural Budget last October exemplified this with increases to capital gains tax, the capping of inheritance tax reliefs and bringing pensions into the scope of death taxes from 2027, we were already set on this path under the previous Government which aggressively slashed the annual capital gains and dividends allowances, and put in place multi-year freezes on tax allowances and thresholds.' This comes as inflation jumps to 3.5pc, figures revealed on Wednesday, eroding the spending power of savers' hard-earned cash. Frozen tax thresholds and higher savings rates mean the number of savers paying tax on interest has soared from 650,000 in 2021-22 to two million in 2024-25. With income tax thresholds frozen until 2028, millions of workers are crossing into the 40pc tax band at which point the amount of interest they can earn tax-free is cut in half. Basic-rate taxpayers can earn up to £1,000 tax-free, but this drops to £500 for higher earners. Additional-rate taxpayers get no personal savings allowance. These tax-free allowances were set in 2016 when interest rates were very low, but they have remained unchanged since then, and will be frozen until at least 2028 under government plans. Sarah Coles, of stockbroker Hargreaves Lansdown, said: 'Inflation has also seriously eroded the real value of the personal savings allowance, which hasn't moved at all since it was introduced in 2016.' She added: 'During the cost of living crisis, the cost of essentials rocketed, so people were forced to beef up their emergency savings safety nets. This will automatically have pushed an awful lot of people into making enough interest on their savings for tax to become an issue.' The average easy-access account currently offers 2.75pc interest, meaning a higher-rate taxpayer would need just over £18,000 before having to pay tax. This also means savers are effectively punished for seeking out better deals. A higher-rate taxpayer with £25,000 in an account paying 4.67pc – the best rate available – would owe £267 in tax whereas an additional-rate taxpayer would owe £525. Savers can stash up to £20,000 each year in an individuals savings account (Isa) which is tax-free. However, Ms Reeves is currently looking at altering the cash Isa rules to encourage investment in stocks and shares instead. A proposal to cut the cash Isa limit to £4,000 is still under consideration. Ms Coles added: 'The cash Isa has meant savers have been able to protect themselves from rising tax bills, so recent debate over the future of the cash Isa will raise concerns.' This comes after the Chancellor announced plans to bring pensions into the inheritance tax net from 2027, which some firms have warned could dissuade workers from saving for the long-term. Mr Hollands added: 'Such meddling undermines confidence in pensions as people feel the goals posts keep moving.' Banking experts warned that if Ms Reeves was to raise the corporation tax rate for the sector from 28pc to 30pc, mortgage borrowers and savers would likely end up paying the price. Stuart Cheetham, chief executive at MPowered Mortgages, said: 'Ultimately, what that will mean for banks is there'll be less retained earnings, therefore they'll underperform their projected positions. 'So they'll look to recoup that in some way if they can, which would typically mean a passing through of that to retail or corporate customers.' Mr Cheetham, who was previously responsible for Lloyds Bank's operations in Asia, compared a rise in the surcharge with Ms Reeves' National Insurance tax raid on employers. He warned: 'This will be like any tax rise for any business, I would expect it to ultimately go through to the end consumer.' It means that if Ms Rayner gets her way with taxing banks more, it risks undermining her push to raise homeownership. A Treasury spokesman said: 'We are committed to help our pensioners live their lives with dignity and respect, which is why in April the basic and new State Pension increased by 4.1pc. Pensioners will receive a boost of up to £470 to their income in 2025/26. Our commitment to the triple lock means millions will see their pension rise by up to £1,900 this parliament.'
Yahoo
20-05-2025
- Business
- Yahoo
Rayner's stealth taxes would crush growth
The Deputy Prime Minister Angela Rayner has proved that there is one thing she has a real talent for: coming up with stealth taxes. As this paper reveals today, Ms Rayner wrote to the Chancellor in March with a list of ways to squeeze more revenue out of those with savings or investments. The Deputy Prime Minister's ruses would damage the economy as a whole. Among the ideas Ms Rayner is pushing on the Chancellor are a freeze on thresholds for the 45 per cent income tax rate, measures to raise yet more in inheritance taxes, increasing the bank levy, and yet another clampdown on stamp duty that will, in effect, amount to another increase. Chancellor Rachel Reeves may be boxed in by her promise not to raise any of the main taxes, but with the economy stagnating, and with the wealthy exiting the country in escalating numbers, she will have to raise money from somewhere. There are two problems with Ms Rayner's little list. The point of Labour's pledge not to raise the main rates of tax was not to impose dozens of stealth levies instead. It was a promise to deliver faster growth and higher spending without taking more money out of people's pockets. Next, and more importantly, the stealth taxes Ms Rayner proposes will do maximum damage to the productive base of the economy. For example, if the government scraps the inheritance tax exemption for companies listed on the Aim market it may raise a little extra cash. But Aim was designed to help growing businesses raise money for investment; the exemption encouraged investors to take a chance on backing smaller businesses. If we starve them of cash, they won't be able to invest or grow. Freezing the thresholds for the 45 per cent rate of income tax will over time capture more and more middle earners in a bracket that was originally designed for the genuinely wealthy. It will take us back to the punitive rates of the 1970s, deter people from working, and drive wealth overseas. Each and every raid the Deputy Prime Minister proposes damages entrepreneurs, savers, or strivers. Ms Rayner will find a ready audience on the backbenchers and among Labour Party members for her old-fashioned tax-and-spend agenda. The Chancellor hasn't given in to her yet. Unless the Government can find a way of controlling spending, or boosting growth, then it will inevitably try to find new sources of revenue. Ms Rayner's nightmare list may be a terrible warning of what lies ahead. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
12-04-2025
- Business
- Telegraph
Is this the end of the line for model railways?
These are tortuous times for model railways. Earlier this week, the venerable model maker Hornby delisted from London's Aim stock exchange. The move came after a period of turmoil for the company, which owns Scalextric, Corgi and Airfix as well as the eponymous model railway brand, and a 60 per cent slump in its share price over the past year. They are the most prominent name in an industry that has been generally struggling in the face of rising costs, shrinking living spaces, an ageing population and abundant electronic competition. 'The board is well aware of the place Hornby has in the hearts of its loyal shareholder base, and the announcement today is not taken lightly,' the company said in a statement in March announcing the plan to go private. It had been listed for more than 40 years, but with 91 per cent of the company owned by two businesses, they no longer believed it made sense to have the remainder available on the stock market. The company said that delisting will save it around £400,000 per year, adding that being private would 'improve its decision-making' and let it make necessary changes to the business 'at pace.' Over nearly a century, Hornby has endured through recessions, depressions, insolvencies, the Second World War and the advent of video games. But the past few years have been notably difficult. Last year, two of the linchpins of the model railway world, the Warley Railway Club exhibition at the National Exhibition Centre in Birmingham and Hatton's Model Railways Shop in Liverpool, closed amid reports of rising costs and ageing enthusiasts. Some wonderful highlights from my visit yesterday to Alexander palace and the London festival of railway modelling. @ModelRailClub — jason francis (@jasonfrancis71) March 16, 2025 Hornby posted surprisingly strong revenues after Covid, when locked-down Brits discovered – or rediscovered – the joy of making a miniature train set in the garage. But it was a rare bit of good news, their first profit in nearly a decade. Otherwise, the recent past has often proved gloomy. In November, the company announced a round of redundancies at its headquarters in Margate, Kent, after posting increased pre-tax losses of £5.1 million in the year to September 2024, up from £4.9 million the year before. 'Hornby are a vital part of the hobby and if they go under we would all be very sorry, but something is not right,' says Antony Cox, chair of the Model Railway Club, Britain's oldest model railway fan club, where fans meet every Thursday just off the Pentonville Road in north London to discuss gauges, listen to guest speakers and generally do the miniature locomotion. 'I hope they come through whatever problems they are having. But Hornby have made three or four management changes in the past 20 years and some of their decisions strike me as a bit odd,' Cox adds, stressing that he is speaking for himself rather than the club. 'Their products aren't bad, but somehow, something is not right on the inside with Hornby at the moment.' Phoenix Asset Management, a firm that specialises in turnarounds, owns 82 per cent of Hornby. Another 9 per cent, worth around £2.1 million, is owned by Mike Ashley, the Sports Direct boss. Ashley was brought on as a consultant last March, having built up a significant stake in the business. The eccentric billionaire is not much given to press announcements, especially after the criticism he endured as owner of Newcastle United, so we must presume that he sees in Hornby a version of what he has created with Frasers Group: an umbrella brand holding famous brands that have fallen on hard times. Hornby was approached for comment. It has previously said its restructuring plans were on course. The most recent figures were promising, with sales in the final quarter of 2024 up 10 per cent year on year, propelled in particular by the Black Friday discount day, when 50 per cent of purchasers were first-time customers. An optimistic version of the decision to delist is that it is part of a restructuring that will enable the company to stay nimble in a fast-changing world. For the uncertainty around the hobby, there are also signs that it has a niche as a tactile, family-friendly activity that gets children, their parents and grandparents off their screens for a few hours. 'Hornby have always been uniquely placed because they are such a household name,' says George Dent, the editor of Model Rail Magazine. 'The remit has always been to appeal to a much broader spectrum of enthusiasts. Their product range is good. Like any company, they have had their challenges, but I think the consensus is that they are on the right track.' Besides, the company has long mixed good times with bad. Frank Hornby patented Meccano in 1901; they produced the first clockwork train in 1920. The first OO gauge model train was launched in 1938. In 1964, Hornby was bought by a competitor, Tri-ang. Two decades later, in 1981, it was bought out by management after the parent company went into administration. Five years later, it was listed on the stock market. Phoenix took over in 2017, after a controversial process in which the company said Phoenix's offer 'significantly undervalue[d]' it. 'Hornby goes up, it goes down, it has good times, it has not such good times,' says Simon Kohler, sometimes nicknamed 'Mr Hornby', who worked for the firm for more than 40 years in total, latterly as marketing and development director. 'In the heyday in the 1960s and 1970s, there was no 24-hour television. Boys played football, girls did other things. Trains were a game, a family entertainment. People got it out at Christmas. The world changed in the 1980s with electronic games. Virtually overnight, train sets became old-fashioned.' Yet, while the children's market diminished, another rose to take its place: older enthusiasts, with deeper pockets and a desire for ever-more detailed replicas. By continuing to focus on younger audiences, Hornby initially missed out on the burgeoning new demand. But by 2000, they had changed course and launched their Southern Railway's Merchant Navy class locomotive, the rebuilt 'Clan Line,' which marked their move into higher-class models. The business prospered until 2008, before it hit another downturn in its topsy-turvy history. '[Then] they had the financial crash and issues with factories in China,' says Kohler. 'Costs started to increase and it began to struggle once again.' Kohler left in 2014, after which he says 'it all got a little bit confusing and I have to say they lost their way a bit.' He rejoined in 2017 after the takeover and retired in 2023. The move from child's toy to collectable has given rise to a new fear; that model railways will become 'an aged hobby', popular with the older generation but struggling to attract new fans. To counter this, in recent years, Hornby have introduced new products aimed at re-engaging younger fans, including an app to let you control the trains with a phone or iPad, bluetooth technology that lets users control trains separately, rather than having every train on a track run at the same time, and a new TT:120 gauge system – smaller than the traditional OO gauge but larger than the N gauge. And Hornby aside, many involved argue the hobby is in robust health. Cox says the membership of his club has risen 25 per cent since he took over a decade ago. At Alexandra Palace last month, thousands of visitors flocked to the London Festival of Railway Modelling. Model railway accounts on Instagram, such as the one operated by the owners of the Miniatur Wunderland museum, which houses the largest model railway system in the world, attract millions of followers. The Gen Z enthusiast Francis Bourgeois, who got into trains through models, has introduced a new generation to the joys of all things train-related. 'I've been in the game for 25 years now, and there has been talk of doom all that time, with the arrival of computer games and things like that,' Dent says. 'But it was pretty steady in the early 2000s, and then even before Covid, there was starting to be a resurgence of interest. Lockdown just accelerated that, with people rediscovering old-school hobbies, getting away from screens and doing something physical and tactile. That's the beauty of this hobby – it's not just about trains and track, it's miniature worlds. It's very therapeutic.' 'It is a broad church of people,' he adds. 'There are kids and families, a lot more women. It's more vibrant than at any point I can remember.' Kohler agrees. 'I've been in this business well over 50 years, and it's an exciting time,' he says. 'There are other companies out there, and you have to keep looking towards your laurels and be better and more efficient. I'm excited. Hornby's in my blood. My wife always said Hornby was my first love, and she was my second, which is fairly accurate, I suppose. When things are good [Hornby's] up, when things are bad it's down. It gets affected by innovation but it bounces back. It's a whole world.' 'It's not the same as it was in the 1970s. A train set is not on every child's Christmas list. But which other hobby or pastime can teach you about geometry, physics, logistics, social history, basic electronics, topography, mathematics? When people operate a train, they don't realise they are learning.' In the age of the iPhone, a model railway is a way for generations to come together and enjoy something real. For now, at least, it is a hobby that endures. And despite its difficulties, where there are model railways in the UK, there will likely always be Hornby, somehow trundling on.
Yahoo
02-04-2025
- Business
- Yahoo
Brighton Pier reveals plans to quit London stock market
The leisure group behind the 126-year-old Brighton Palace Pier has seen its shares slump as it became the latest firm to announce plans to delist and return to private hands. Brighton Pier Group – which also owns a number of bars and mini-golf venues – said it is planning to cancel its listing on London's junior Aim market, sending shares slumping by nearly 60% in Wednesday morning trading. The firm, which is chaired by former Pizza Express boss Luke Johnson, said the decision follows a 'careful review of the benefits and drawbacks' of its stock market listing. It said it believes delisting at the 'earliest opportunity' would be in the 'best interests of the company and the shareholders as a whole'. Investors will vote on the plans at a meeting on April 22 and if approved, delisting is expected on May 2. It marks the latest blow to the Aim market, which has been hit by a raft of firms delisting in recent years, with 92 firms leaving the market last year. Mike Ashley-backed Scalextric and model train firm Hornby last month revealed plans to go private, blaming regulatory hurdles and costs involved with a stock market listing. Brighton Pier Group said reasons for its plans to delist include 'disproportionate' annual costs of between £250,000 and £300,000 to maintain a listing, lack of liquidity in the shares, volatility in the share price, as well as changes in the small cap market since the company's flotation in 2013. It added that it would have more flexibility and be more nimble on decisions as a private company. Brighton Pier Group also said the move comes in light of increasingly tough trading and higher costs. It said: 'Over the past several years, the company has faced persistent challenging trading conditions, impacted by, inter alia, Covid-19, repeat bad weather during peak summer trading periods, recent significant Budget increases in National Insurance to commence from 6 April 2025, pressures on consumer discretionary spending and a change in consumer behaviours.' It has therefore been focusing efforts on 'cost savings, disposals of underperforming assets and health of the balance sheet, limiting its ability to invest in growing the business'. The group said results for the year to December 29 2024 where in line with expectations, while it added that recent trading had been boosted by last month's warm weather. It said March's better weather, combined with the introduction of the higher £2 admissions charge for non-residents, helped drive total sales at the Pier up £100,000 to £1.8 million so far this year. Trading in the bars and golf divisions has seen a slow start to the year, with total sales of £1 million and £1.4 million respectively, each down £100,000 year-on-year.
The Independent
02-04-2025
- Business
- The Independent
Brighton Pier reveals plans to quit London stock market
The leisure group behind the 126-year-old Brighton Palace Pier has seen its shares slump as it became the latest firm to announce plans to delist and return to private hands. Brighton Pier Group – which also owns a number of bars and mini-golf venues – said it is planning to cancel its listing on London's junior Aim market, sending shares slumping by nearly 60% in Wednesday morning trading. The firm, which is chaired by former Pizza Express boss Luke Johnson, said the decision follows a 'careful review of the benefits and drawbacks' of its stock market listing. It said it believes delisting at the 'earliest opportunity' would be in the 'best interests of the company and the shareholders as a whole'. Investors will vote on the plans at a meeting on April 22 and if approved, delisting is expected on May 2. It marks the latest blow to the Aim market, which has been hit by a raft of firms delisting in recent years, with 92 firms leaving the market last year. Mike Ashley-backed Scalextric and model train firm Hornby last month revealed plans to go private, blaming regulatory hurdles and costs involved with a stock market listing. Brighton Pier Group said reasons for its plans to delist include 'disproportionate' annual costs of between £250,000 and £300,000 to maintain a listing, lack of liquidity in the shares, volatility in the share price, as well as changes in the small cap market since the company's flotation in 2013. It added that it would have more flexibility and be more nimble on decisions as a private company. Brighton Pier Group also said the move comes in light of increasingly tough trading and higher costs. It said: 'Over the past several years, the company has faced persistent challenging trading conditions, impacted by, inter alia, Covid-19, repeat bad weather during peak summer trading periods, recent significant Budget increases in National Insurance to commence from 6 April 2025, pressures on consumer discretionary spending and a change in consumer behaviours.' It has therefore been focusing efforts on 'cost savings, disposals of underperforming assets and health of the balance sheet, limiting its ability to invest in growing the business'. The group said results for the year to December 29 2024 where in line with expectations, while it added that recent trading had been boosted by last month's warm weather. It said March's better weather, combined with the introduction of the higher £2 admissions charge for non-residents, helped drive total sales at the Pier up £100,000 to £1.8 million so far this year. Trading in the bars and golf divisions has seen a slow start to the year, with total sales of £1 million and £1.4 million respectively, each down £100,000 year-on-year.
