Business News 17th October 2017

CPA’s daily bite-size summary of the business news on Tuesday 17th October 2017, filled with stories to inform and interest business people.

TAX

Budget tax raid could alienate older voters

Conservative peer Baroness Altmann has suggested that plans for a Budget raid on pensions tax relief to fund tax breaks for young people could trigger a backlash from older voters. Philip Hammond is said to be considering the measure as he looks to “restack the deck for the next generation”. But Baroness Altmann warned the chancellor: “The Tories’ core voters are older people, it would be rash in the extreme to risk alienating them in the coming Budget.” Lord Lamont also attacked the plans, arguing they could lead to a “generational war in the tax system.” The Telegraph’s Matthew Lynn agrees that “hefty taxes on the baby-boomers” will sow division, and are unlikely to help the young anyway. However, former universities minister Lord Willetts said he would back an “age tax” to help struggling workers, adding: “Young people are getting a raw deal so it’s right to look at help for them.”

The Daily Telegraph, Page: 4 The Daily Telegraph, Business, Page: 2 Daily Express, Page: 1, 7 Daily Mail, Page: 10 The Sun, Page: 2 Daily Mirror, Page: 2

FIRMS

EY hit with £2.75m fine over audit misconduct

The Financial Reporting Council has fined EY £2.75m over misconduct relating to the audit of financial statements of Tech Data Limited, a wholesale retailer to the computer and mobile communications sectors. EY received a reprimand and a fine of £2.75m, adjusted for mitigating factors and discounted for settlement to £1.8m, while senior statutory auditor and audit engagement partner Julian Gray was fined £90,000, which was reduced to £59,000. EY must also pay £225,000 towards the FRC’s investigation costs. The Times’ Patrick Hosking welcomes the verdict but argues that the fines imposed are too low to deter similar behaviour by others. He also warns that each new case of auditor misconduct damages the profession’s reputation for keeping companies honest.

Financial Times, Page: 17 The Daily Telegraph, Business,, Page: 3 The Times, Page: 42 The Times, Page: 41 Daily Mail, Page: 67 The Sun, Page: 41 The Independent, Page: 3 Independent I, Page: 43 Daily Express, Page: 45 Evening Standard, Page: 39-40

Mazars and Shift urge human rights considerations

Mazars and UN Guiding Principles agency Shift have launched the UNGP Assurance Guidance with two primary aims; helping those tasked with assessing human rights performance in business to better understand the competencies required and what good performance looks like and supporting external assurance providers as they oversee companies’ human rights reporting. Richard Karmel, head of Human Rights at Mazars UK, said: “There has never been a more critical time for firms to communicate fairly and accurately as to how their business activities impact people”.

Press Release

Appointments

Chiene + Tait has recruited Nicola Williams to its entrepreneurial tax team in a bid to sharpen its legal offering. Elsewhere, Quantuma has announced that partner Andrew Hosking has been appointed as head of its London office.

Insider Press Release

Infinity makes it three in a row

Infinity Partnership has been named Independent Firm of the Year (Scotland, Northern Ireland and North England) for the third year in a row at the British Accountancy Awards.

The Press and Journal, Page: 37

SMEs

SMEs keep faith in apprenticeships

A survey by Close Brothers Asset Finance suggests apprenticeships are still the solution to Britain’s skills shortage, despite official figures showing a sharp fall in the number of new schemes since the government introduced a new levy. More than eight in ten of small businesses polled said that apprentices were the best way to narrow the skills gap, although more than a fifth said costs were the reason for them not having a scheme of their own.

The Times, Page: 47

SMEs ignore credit scores

Research from RateSetter Business Finance has found 44% of SMEs have never checked their company’s credit score. The study also reveals that a further 6% have opted against checking their score in the last year.

CCR Magazine Peer2Peer Finance News

CORPORATE

Government aims to block ‘fat-cat’ foreign predators

Business Secretary Greg Clark will today unveil plans to make it easier for the government to intervene in takeover bids from big overseas businesses. It comes after a Conservative manifesto pledge to obstruct bids by investors fuelled by “asset-stripping or tax avoidance”.

The Sun, Page: 4

PROPERTY

Chancellor considering stamp duty cut

The Evening Standard reports that a hefty cut in stamp duty for first-time buyers is among “bold measures” being studied by Philip Hammond for the forthcoming Budget.

The Times, Page: 9 Evening Standard, Page: 1-2

ECONOMY

Crisis looms as consumer debt soars

Consumer borrowing could surpass £340bn by the end of the decade to the equivalent of £12,500 per household by 2020, according to PwC’s Precious Plastic report, which warns younger borrowers are the most exposed. PwC’s Simon Westcott commented: “Despite the uncertainty created by political upheaval, a number of macro-economic factors have combined to create a climate of rising consumer confidence and borrowing”.

Evening Standard, Page: 39 Daily Mail, Page: 10

Inflation set to hit five-year high

Increasing pressure on the Bank of England to raise interest rates, City economists forecast that the consumer price index will be shown to have risen to 3% in September, up from 2.9% a month earlier, its highest level since 2012. The ONS will release figures today just before the Commons’ Treasury select committee interviews Mark Carney and other Bank officials.

The Guardian

OTHER

One in five UK jobs to be automated by 2030s

A report by the thinktank Future Advocacy, based on a PwC study, predicts that 20% of UK jobs will be automated by the early 2030s. However, it also found the public was largely untroubled by the risk that their job might be at threat. Only 2% of a sample of more than 2,000 people were “very worried” they might be replaced by a machine, with a further 5% “fairly worried.”

The Guardian, Page: 24

Parking firm boss guilty of £460k tax evasion

The boss of a ‘meet and greet’ airport parking firm has been jailed for three years after cheating HMRC out of almost half a million pounds. Brian Pearson, 57, was pocketing the income tax and NICs for up to 60 of his employees for more than seven years.

Manchester Evening News, Page: 4