Latest news with #EdinburghReforms
Spectator
14-07-2025
- Business
- Spectator
Who exactly is a working person?
Tomorrow is Rachel Reeves's big speech in the City. The annual Mansion House address is a chance for the chancellor to set out their big vision for the British economy. But amid a gloomy set of economic indicators – including two monthly GDP contractions in a row – it is difficult to see what good news message she can deliver. Initially, there was talk about reforms to cash ISAs, with Reeves planning to cut the £20,000 annual tax-free allowance. However, following a backlash, the Financial Times reports those plans have now been dropped. There is talk instead of Reeves promising a 'new Big Bang' by slashing regulation on financial services. That will undoubtedly find favour in some corners of the City. Yet it is difficult to immediately see what low hanging fruit is available to Reeves, given how much work her predecessor Jeremy Hunt did on financial services regulation via his 'Edinburgh Reforms.' The run-up to Reeves' speech is being overshadowed by a fresh row too. The Labour government has pledged not to raise taxes on 'working people.' So what exactly does this mean? It seems that the cabinet themselves are not entirely sure. Heidi Alexander, the transport secretary, yesterday suggested that the definition referred to 'people on modest incomes.' But today, Darren Jones, the chief secretary to the Treasury, argued that the term refers to 'anyone that gets a payslip, basically.' That is a significantly broader definition – one which would cover virtually all taxpayers. Jones did not rule out other tax rises either. He said Labour's tax pledge on income tax and national insurance referred to the 'headline rate', leaving the door open to extending the freeze on thresholds. Jones also failed to rule out a wealth tax, merely saying the tax 'commitment in the manifesto was very specific and very clear.' None of this is particularly conducive to unleashing the 'animal spirits' necessary to generate economic growth. Reeves will be out on the airwaves later today and will inevitably be asked for her own definition of a 'working person.' The Chancellor will want to point to a series of feel-good measures like today's announcement of a £500 million Better Futures Fund for youth services. But for the hard-faced men and women of the City, talk about how the Chancellor is spending their money is unlikely to win many converts. The danger for Reeves is that tomorrow night she receives a similar reception to the stony reply she got at the CBI conference in November. Back then, her promise of 'not coming back for more' in tax was greeted in silence – despite the Chancellor's apparent expectation of applause.
The Guardian
08-07-2025
- Business
- The Guardian
Rishi Sunak takes advisory role with Goldman Sachs while serving as MP
Rishi Sunak is to take on a new job as an adviser to the investment bank Goldman Sachs while still serving as an MP. The Conservative former prime minister will be restricted from lobbying the government on behalf of the bank for another year and will give his salary from the role to the Richmond Project, a charity he set up to encourage numeracy. In the role, which marks Sunak's return to the bank he first worked for in the early 2000s, he will advise clients of Goldman Sachs on economic and geopolitical interests. Announcing the appointment, David Solomon, the chief executive of Goldman Sachs, said: 'I am excited to welcome Rishi back to Goldman Sachs in his new capacity as a senior adviser.' The Advisory Committee on Business Appointments (Acoba) set some conditions for the appointment, including the standard two-year ban on lobbying from the point of Sunak leaving ministerial office in July 2024. It listed one of the risks associated with Sunak's new job as his overall oversight of the changes to financial services known as the 'Edinburgh reforms', which benefited banks such as Goldman Sachs, one of the first to remove its cap on bankers' bonuses. However, Acoba also noted that Sunak was not personally involved in the development of the policy and only met Solomon once as part of a group round table with the financial services sector. Goldman Sachs wrote to the committee, making clear it was not a role involving lobbying, and that Sunak would not draw on privileged information from his time as prime minister, make use of contacts made in government to influence policy, or provide advice on the terms or subject matter of bids or contracts with the UK government. Sunak has largely taken a low-profile approach to life after serving as prime minister from October 2022 until the election last year. He has taken on roles at Oxford University and Stanford in the US, and has made few interventions in politics. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Sunak and his wife, the IT heiress Akshata Murty, have an estimated combined fortune of about £640m, according to the Sunday Times rich list, making them about as wealthy as King Charles. The list found their wealth increased by about £120m in the run-up to the last general election, when millions of Britons continued to struggle with the cost of living.
