Business News 13th June 2017

We chope you enjoy reading the business news compiled by the Credit Protection Association on Tuesday 13th June 2017 for its members and visitors.

Election outcome could delay non-dom reforms

Accountants have warned that further delays to the introduction of new rules governing how UK non-doms are taxed are likely following the general election. Prior to the vote, the government had opted to delay long-anticipated reforms, which would see those who have resided in the country for more than 15 of the past 20 tax years automatically deemed to be UK-domiciled. However, it is widely thought that Theresa May is now unlikely to reinstate some key tax changes dropped from the Finance Bill 2017, including the non-dom reforms, after the Conservatives lost their majority.

International Adviser

Theresa May and Democratic Unionist Party leader Arlene Foster will hold critical talks on a deal to prop up a Tory minority administration after the UK government admitted the policy-setting Queen’s Speech could be delayed. The prime minister will be desperate to get agreement from the DUP to back her legislative programme in the House of Commons or risk her government falling. May’s authority has been severely diminished after a disastrous general election which saw her lose her Commons majority and a deal with the DUP looks vital for the continuation of Tory rule. A failure to gain support from the Northern Irish party would risk the Queen’s Speech being voted down next week, and Jeremy Corbyn has said Labour will be pushing hard for that outcome.

Government urged to prioritise business

Business leaders have called on the government to offer greater backing to the country’s SMEs following the election. Mike Cherry, chairman of the FSB, says that the new minority government must “bring certainty and stability to UK business and the economy.” He added: “Brexit will only be successful if the Government fully backs small businesses, the backbone of the economy.” Meanwhile, Paul Goodman, chairman of the National Association of Commercial Finance Brokers, said: “Business owners need to be reassured that the economy remains a key focus and is not forgotten amid the political infighting that’s surely set to come.” Andy Silvester, deputy director of policy at the Institute of Directors added: “Business… must be front and centre of the Brexit negotiations.” Following the election, both the British Chambers of Commerce and the FSB have also renewed their calls for the business rates system to be scrapped or reformed.

Daily Mail The Daily Telegraph, Business, Page: 4 Financial Times, Page: 2 Evening Standard, Page: 5

UK inflation rises to four-year high of 2.9%

theguardian.com

Sadiq Khan launches London Tech Week

Mayor of London Sadiq Khan has launched London Technology Week, saying he would like to see London become the “world’s leading smart city.” His plan includes a new £1.6m clean technology incubator called Better Futures, and a new tech innovation centre called Plexal, which Mr Khan said would support up to 800 start-ups and other businesses. Tenants at Plexal will have access to investment, mentoring and professional services, with lawyers, accountants and marketing staff available on site.

Evening Standard City AM The Times, Page: 18

SMEs missing out on tax relief

Research by Catax has found that 39% of UK SMEs that own their own business premises are unaware they can claim Capital Allowances tax relief. The survey of 500 SME business owners and senior managers also revealed that 46% of everyday companies that own their own business premises have never had capital allowances brought to their attention by their accountants.

SME Web

BM Advisory facilitates Notts County settlement

Liquidators from BM Advisory have successfully reached a settlement with Notts County FC, moments before a winding up petition hearing was due to commence. The settlement provides a “substantial recovery” to creditors of Pinnacle, which was owed in excess of £600,000 by the football club.

Press Releas

Mitie hit by accounting issues

Mitie has reported a £58.2m pre-tax loss in the year to March 31 after taking a hit from accounting issues. The outsourcing firm was stung by £88.3m of one-off costs after a review of its books by KPMG.

The Independent, Page: 61 The Sun, Page: 39 The Daily Telegraph, Business, Page: 1

Employment plan will balance fairness and flexibility

The head of Theresa May’s employment review has drawn up a six-point plan to ensure government policies adapt to modern ways of working. Matthew Taylor said the review would set out a “national strategy for work”, with quality at its heart. It will aim to make employment and the tax system fairer, while encouraging entrepreneurship and flexibility. Mr Taylor also said the review was still on course to be published in the next few weeks, even as uncertainty surrounds the next government.

The Daily Telegraph, Business, Page: 4

Bosses worried by reputational risk

A survey of 151 chief executives by KPMG shows reputational risk is now a major worry for bosses, alongside operational risk. Neither featured in a top ten list of challenges last year, and KPMG said the change reflected increased scrutiny of business.

The Times, Page: 50

FCA blocks firm from final salary transfers

Intelligent Pensions has been forced to stop facilitating “final salary” pension transfers by the Financial Conduct Authority. With the total transfers made in the last year estimated at 80,000, the Telegraph suggests the crackdown is a blow to savers seeking to unlock their pensions. Malcolm Kerr of EY says the FCA urgently needs to tell firms what kind of fees were and were not appropriate and stressed “a clear conflict of interest” at firms that operate this kind of charging model.

The Daily Telegraph

May tells Tories: ‘Austerity is over’

The Times reports that Theresa May is planning to abandon the government’s austerity programme after Conservative MPs warned that they would refuse to vote for further cuts. Sources said the PM accepted that voters’ patience with austerity was at an end after a series of Tory MPs told her that she had misjudged the public mood.

The Times, Page: 1

Election result casts doubts over UK’s credit rating

Moody’s has warned that Britain’s credit rating could be downgraded following the general election. The ratings agency said the lack of a decisive majority party could stall negotiations on Britain leaving the EU, which would have a negative impact on the UK’s credit rating.

The Daily Telegraph, Business, Page: 5 Independent I, Page: 40

Asian Markets
Asia-Pacific stocks advanced as the global selloff in technology shares showed signs of easing. Tech stocks have been on a hot streak in Asia prior to the sell-off, with some gaining nearly 70% year-to-date, driven by the optimism overseas as well as solid earnings

Oil prices added to modest gains at the start of the week, buoyed by technical buying even as investors remain skeptical that production cuts led by Middle Eastern producers and Russia are helping to alleviate a years-long market glut.

Gold held steady as investors remained cautious ahead of a two-day U.S. Federal Reserve meeting that is likely to provide hints on the central bank’s interest rate policy for the remainder of the year

U.S. Markets

A sell-off in Apple and other tech heavyweights dragged stocks down for a second session, while the dollar slipped ahead of the U.S. Federal Reserve meeting this week. The technology sector rout weighed on all three major U.S. stock indexes and raised concerns about lofty U.S. share levels.