Six Things We've Learned About The Budget

Here are the six main points that have emerged about the likely content of Wednesday's pre-election Budget.

1: Pensions Giveaway

Up to five million people will be able to sell their retirement annuities for cash without facing a hefty tax bill, according to an authoritative and reliable briefing reported by Sky News, other broadcast media and the Sunday papers.

2: North-South Divide

George Osborne will promise a "truly national recovery", with measures to boost the English regions such as investment in infrastructure, science, energy and housing. This was revealed by the Chancellor in an article for The Sun on Sunday.

Video: 60-Second Economist: The Budget

3: 'No Gimmicks'

Appearing on BBC One's Andrew Marr Show, Mr Osborne declared: "No giveaways, no gimmicks. A Budget for the long term. Everything we do in this Budget has to be paid for. That has been the central argument I've made all along."

4: Tax Cuts

A rise in the income tax threshold from £10,600 to £11,000 has been widely predicted for some weeks and was reported in The Sunday Telegraph and The Sun on Sunday. A rise in the 40% tax threshold from £41,865 to £50,000 was reported in the Sunday People.

5: Inheritance Tax

A signal that the Tory election manifesto will include a pledge to raise the threshold from £325,000 was reported in the Sunday Express. "We've said on the record it's one for the election, in the manifesto," a senior source told Sky News.

6: Beer And Baccy

A cut in the duty on beer and cider is expected, meaning 1p or 2p off a pint, a move campaigned strongly for by Tory MPs.

Another 16p is expected off a bottle of spirits, as well as a freeze on wine duty; and 28p on a pack of 20 cigarettes - reported in The Sun on Sunday.

23.33 | 0 komentar | Read More

Big Increase In High Street Shops Disappearing

Nearly three times as many high street shops were lost in 2014 compared with the previous year amid continuing pressure from online sales and changing consumer habits.

While the number of stores closing remained at the level of around 16 a day, fewer new shops opened.

Research for PwC compiled by the Local Data Company showed the rate of net closures rose from 371 in 2013 to 987 last year.

However, this is still below the record high of 1,779 net closures in 2012.

New regulations have seen almost a fifth of payday shops shut, mergers have hit mobile phone shops by a similar amount, and pawnbrokers are also disappearing.

Video: Business Rates Review

Meanwhile, the big winners are tobacconists and E-cigarette retailers, restaurants serving British cuisine and mail shops catering for sending goods abroad.

Overall, 5,839 stores closed in 2014 compared to 6,033 in the previous year.

However, fewer stores opened with 4,852 in 2014 and 5,662 the year before.

The figures come as the Treasury announced a review of business rates aimed at ensuring the system of annual property tax is 'fair'.

Mike Jervis, insolvency partner and retail specialist at PwC said: "This year's numbers expose the harsh impact of 'macro' changes on the high street, especially in certain sub-sectors.

"Regulation has blindsided the money shops, the advance of technology has hammered some phone operators and the internet continues to dent the clothing sector.

"Despite the benign economy, the net loss of shops has accelerated.

1/16

1. Gallery: The changing face of Britain's high streets

   The High Street in Bath in 1804. This view shows the White Lion Hotel (right) the Town Hall and market with the Abbey at the end of the road

A horse-drawn cart piled with baskets in Covent Garden, London, in 1900

]]>

23.33 | 0 komentar | Read More

City Investors Swoop For £1.2bn Car Dealer BCA

By Mark Kleinman, City Editor

Britain's biggest secondhand car dealer is gearing up to change hands in a £1.2bn takeover engineered by some of the City's largest investors.

Sky News has learnt that British Car Auctions (BCA) is in detailed talks about a deal that would involve it being bought by a listed vehicle called Haversham Holdings.

Haversham was set up last year to swoop on "substantial companies and businesses in the UK and European automotive, support services, leasing, engineering or manufacturing sectors".

Fronted by Avril Palmer, who ran Autologic and had a short-lived spell as boss of Stobart, the haulier company, Haversham has backing from a funding group comprising including Aviva Investors, Artemis, Invesco and Schroders.

The firm set up by Neil Woodford, the UK's best-known fund manager, is also understood to be a key supporter of the proposed takeover.

Insiders said on Saturday that Haversham planned to raise £1.2bn from its investors to fund the deal.

A statement responding to news of the plan to take control of BCA could be made to the stock exchange as early as Monday, although a source cautioned that it was not yet certain to happen.

If the deal proceeds, it will be the second time in six months that Clayton Dubilier & Rice (CD&R), the private equity firm which acquired BCA in 2009, has looked at offloading BCA.

It would also coincide with a £2.5bn flotation of Auto Trader, which is owned by rival buyout firm Apax Partners.

Last autumn, CD&R pulled a flotation of BCA, blaming volatile global equity markets.

At the time, it said: "The board and shareholders were very encouraged by the broad engagement and interest in BCA shown by investors and remain excited about supporting the next phase of the group's growth.

"BCA has an excellent track record as Europe's leading used vehicle marketplace with strong revenues and earnings growth on the back of momentum across its physical and digital platforms."

Operating from more than 200 locations across Europe, BCA claims to be more than two-and-a-half times the size of its nearest competitor.

BCA owns the online vehicle buying operation webuyanycar.com, which acquired 120,000 vehicles in 2013.

It said last autumn that over the three-year period to the end of 2013, BCA saw revenues rise 74% to £442.3m, with adjusted pre-tax profit growing by 27% to £62.5m.

In total, more than 900,000 vehicles were sold using BCA in 2013, with 37% of those transactions taking place online, highlighting the growing importance of digital channels in the sector.

The proposed structure of the BCA takeover would echo a plan used last year by a group of heavyweight City figures to take control of the AA, the roadside recovery service, and list it through a form of accelerated initial public offering.

Haversham's broker Cenkos Securities and Bank of America Merrill Lynch are understood to be among the advisers working on the BCA deal, which is said to have been driven by the group of City investors.

CD&R is thought to have been open-minded about a more conventional flotation effort later in the year.

Cenkos also worked on the AA listing, for which it is understood to have received a fee in excess of £30m.

None of the parties involved in the BCA talks would comment.

23.33 | 0 komentar | Read More

Bankers To Face 'Annual MOT' Under FCA Rules

By Mark Kleinman, City Editor

Lenders will be required to annually certify the fitness of staff to perform their roles under a new framework that will reinforce the City watchdog's new-found status as one of the world's toughest banking supervisors.

Sky News understands that the Financial Conduct Authority (FCA) will announce on Monday that proposed final rules for banks operating in the UK will put the onus on affected companies to assess and certify the propriety of thousands of staff working in the industry.

The new rules will be confirmed in a speech by Martin Wheatley, the FCA chief executive, and will demonstrate the extent to which banking regulators are attempting to increase industry accountability following a series of mis-selling and market-rigging scandals in the aftermath of the financial crisis.

Industry sources described the development as a blow to the banking industry's hopes of limiting the bureaucratic burden of the new regime.

Following a report in 2013 by the Parliamentary Commission on Banking Standards, which recommended a new template for supervising bankers' behaviour, some banks had argued that the FCA itself should be responsible for certifying those working in the industry.

In a consultation document last year, the FCA said: "The (Banking Reform) Act has introduced… the requirement for firms to certify certain employees as being fit and proper to perform certain functions.

"This originated from the PCBS's recommendation that a 'licensing regime' be introduced to address concerns that the existing Approved Persons Regime brought too narrow a set of individuals within the scope of regulation, and that firms took insufficient responsibility for the fitness and propriety of their staff."

Mr Wheatley hinted in December that banks should expect the new rulebook to increase the burden on them, saying: "The management of conduct and culture, as issues that have escalated over the last few years, are perhaps complicated by a lack of institutional attention to dealing with them in the past.

"What should not be difficult… is for individuals to take responsibility for their actions. You should not need a rule book to determine right from wrong.

"Indeed, it would be impossible and, frankly, undesirable for any regulator to attempt to codify the limits of what is, or is not, morally acceptable."

The Prudential Regulation Authority (PRA), which sits within the Bank of England, has also issued a new rulebook covering the responsibilities of senior managers, who will be presumed to be responsible for the failure of an institution unless they can demonstrate that they took reasonable steps to prevent it.

Last month, the two watchdogs said they would limit the presumption of responsibility to non-executive directors carrying out delegated duties, absenting some board members from the scope of the framework.

The PRA is also planning to publish further details of its plans for regulating banks on Monday, covering those working at UK branches of overseas firms.

The FCA and PRA both declined to comment on Sunday.

23.33 | 0 komentar | Read More

One Million Brazilians Show Anger At Corruption

We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.

Video: Brazil President Under Pressure

Riot police have used tear gas to disperse demonstrators in Brazil's capital after tens of thousands of people marched to demand President Dilma Rouseff's impeachment.

The clashes took place near government buildings in Brasilia where protesters gathered to criticise government corruption.

Over one million Brazilians protested peacefully in several other cities across the country on Sunday demanding Ms Rousseff steps down.

Much of their anger was focused on a scheme at state-run oil firm Petrobras, which prosecutors call the biggest corruption scandal ever uncovered in Brazil.

Ms Rouseff is to introduce anti-corruption measures

At least $800m was paid in bribes and other funds by the nation's biggest construction and engineering firms in exchange for inflated Petrobras contracts.

The biggest of the protests, held on the 30th anniversary of Brazil's return to democracy after a long military regime, took place in Sao Paulo, an opposition stronghold where some 210,000 gathered on a main avenue.

1/9

1. Gallery: Anti-Corruption Protests In Brazil

   Thousands of protesters dressed in the national colours of green and yellow for demonstrations against government corruption in major cities across the country

]]>

There were huge crowds on Copacabana Beach in Rio de Janeiro

]]>

A demonstrator holds a sign reading: "End of Corruption. More health."

]]>

Thousands gathered in Sao Paulo

]]>

Large rallies were also seen in the southern city of Porto Alegre and in Rio de Janeiro.

"We are here to express our indignation with the government-sponsored corruption and thieving, and to demand Dilma's impeachment," said Andre Menezes, 35, protesting on Avenida Paulista in Sao Paulo.

"She may have not been directly involved in the corruption at Petrobras, but she certainly knew about it, and for me that makes her just as guilty and justifies her ouster," he added.

In Rio, police estimated 15,000 people marched along the golden sands of Copacabana beach, where they waved Brazilian flags and many openly called for a military coup to dissolve the government.

"I don't want my country to turn into a Venezuela, we don't want an authoritarian government!" said Marlon Aymes, 35, helping carry a 20-foot long banner that read in English: "Army, Navy and Air Force. Please Save Us Once Again of Communism."

"We want the military to dissolve Congress and call new elections, because the level of corruption is too widespread to do anything else," Mr Aymes added.

Ms Rousseff did not appear in public on Sunday, but her Justice Minister Jose Eduardo Cardozo went on national TV to hold an extensive live press conference defending the government.

He emphasised that the president would soon propose a series of anti-corruption measures in Congress that were promised during her re-election campaign.

Ms Rousseff has said she fully supports peaceful demonstrations, even those demanding her impeachment, and Mr Cardozo added that the rallies "confirm that Brazil is a democratic state that allows for divergences, the existence of opposing opinions and that we're far from any coup option".

Recommended by Outbrain Recommended by Outbrain

Top Stories

1. Miliband: No SNP Ministers In My Government
2. Met Investigated Over Child Sex Cover-Up Claims
3. Investigation Into Clarkson 'Fracas' Under Way
4. Greek Minister Denies Giving Germany The Finger
5. Putin Makes First Public Appearance For 11 Days

We use cookies to give you the best experience. If you do nothing we'll assume that it's ok.

Video: Brazil President Under Pressure

Riot police have used tear gas to disperse demonstrators in Brazil's capital after tens of thousands of people marched to demand President Dilma Rouseff's impeachment.

The clashes took place near government buildings in Brasilia where protesters gathered to criticise government corruption.

Over one million Brazilians protested peacefully in several other cities across the country on Sunday demanding Ms Rousseff steps down.

Much of their anger was focused on a scheme at state-run oil firm Petrobras, which prosecutors call the biggest corruption scandal ever uncovered in Brazil.

Ms Rouseff is to introduce anti-corruption measures

At least $800m was paid in bribes and other funds by the nation's biggest construction and engineering firms in exchange for inflated Petrobras contracts.

The biggest of the protests, held on the 30th anniversary of Brazil's return to democracy after a long military regime, took place in Sao Paulo, an opposition stronghold where some 210,000 gathered on a main avenue.

1/9

1. Gallery: Anti-Corruption Protests In Brazil

   Thousands of protesters dressed in the national colours of green and yellow for demonstrations against government corruption in major cities across the country

]]>

There were huge crowds on Copacabana Beach in Rio de Janeiro

]]>

A demonstrator holds a sign reading: "End of Corruption. More health."

]]>

Thousands gathered in Sao Paulo

]]>

Large rallies were also seen in the southern city of Porto Alegre and in Rio de Janeiro.

"We are here to express our indignation with the government-sponsored corruption and thieving, and to demand Dilma's impeachment," said Andre Menezes, 35, protesting on Avenida Paulista in Sao Paulo.

"She may have not been directly involved in the corruption at Petrobras, but she certainly knew about it, and for me that makes her just as guilty and justifies her ouster," he added.

In Rio, police estimated 15,000 people marched along the golden sands of Copacabana beach, where they waved Brazilian flags and many openly called for a military coup to dissolve the government.

"I don't want my country to turn into a Venezuela, we don't want an authoritarian government!" said Marlon Aymes, 35, helping carry a 20-foot long banner that read in English: "Army, Navy and Air Force. Please Save Us Once Again of Communism."

"We want the military to dissolve Congress and call new elections, because the level of corruption is too widespread to do anything else," Mr Aymes added.

Ms Rousseff did not appear in public on Sunday, but her Justice Minister Jose Eduardo Cardozo went on national TV to hold an extensive live press conference defending the government.

He emphasised that the president would soon propose a series of anti-corruption measures in Congress that were promised during her re-election campaign.

Ms Rousseff has said she fully supports peaceful demonstrations, even those demanding her impeachment, and Mr Cardozo added that the rallies "confirm that Brazil is a democratic state that allows for divergences, the existence of opposing opinions and that we're far from any coup option".

Recommended by Outbrain Recommended by Outbrain

Top Stories

1. Miliband: No SNP Ministers In My Government
2. Met Investigated Over Child Sex Cover-Up Claims
3. Investigation Into Clarkson 'Fracas' Under Way
4. Greek Minister Denies Giving Germany The Finger
5. Putin Makes First Public Appearance For 11 Days

23.33 | 0 komentar | Read More

'Radical Review' To Make Business Rates Fairer

A "radical review" of English business rates has been launched aimed at levelling the playing field between those hit by the annual property tax and online companies.

Chief Secretary to the Treasury Danny Alexander pointed out the current system had been created nearly three decades ago, during which time the world of business had "changed beyond recognition".

He also acknowledged business rates "are a considerable cost" and wanted to ensure the system is  "fair, efficient and effective".

The move comes amid further evidence the High Street is continuing to struggle in the face of online sales and changing consumer habits with a three-fold increase in the number of shops lost last year.

The Treasury review, which will report back by next year's budget, follows the commitment made by Chancellor George Osborne in last year's autumn statement that the tax would be revamped.

Launching the review, Mr Alexander told Sky News; "For small businesses especially the retail environment has changed a lot in the last 30 years since business rates were first invented. There's more competition online for example.

"But also we have seen through the recent economic difficulties, the business rates system has not responded to the economic cycle, actually in some cases it has made it worse."

He added: "I've been impressed by the representations made by the business community and I know that business rates are a considerable cost.

"This government has taken measures to help businesses by capping rates and introducing reliefs for smaller businesses.

"But now the time has come for a radical review of this important tax. We want to ensure the business rates system is fair, efficient and effective."

Measures being introduced next month will see small business rate relief doubled for a further year, and business rates discounts for smaller retail premises increased.

The current business rates system was introduced in 1990 and covers around 1.8 million non-domestic properties, including shops, offices and factories.

The tax raised £20.5bn in 2013/14.

But Labour's Shabana Mahmood said: "Britain's businesses need more than just a re-announced review.

"Labour will take immediate action by cutting and then freezing business rates for 1.5 million small business properties.

"We will also devolve to city and county regions 100% of the additional business rates revenue generate by growth."

23.33 | 0 komentar | Read More

Dyson Backs Smartphone Battery Technology Firm

British vacuum company Dyson is investing more than £10m in a new type of technology that could double smartphone battery life.

A University of Michigan spin-off called Sakti3 has developed a new type of solid-state battery that can store twice as much energy as a typical rechargeable battery.

As well as boosting the usage times of smartphones, the technology could allow electric cars to drive over 600 miles on a single charge.

Founder James Dyson said: "Sakti3 has achieved leaps in performance, which current battery technology simply can't.

"It's these fundamental technologies – batteries, motors – that allow machines to work properly."

Lithium-ion batteries have progressed little since their introduction in 1991, holding back the development of smaller, longer-lasting gadgets.

Sakti3's battery uses solid lithium electrodes rather than a liquid mix of chemicals to double the amount of energy a battery can store.

The company, which was established eight years ago, also says the batteries are cheaper to manufacture and longer lasting.

Other investors in Satki3 include US car giant General Motors.

23.33 | 0 komentar | Read More

Osborne To Unveil Improved Economic Forecast

Chancellor George Osborne is set to reveal an improved forecast for the state of the economy during his Budget on Wednesday.

The independent financial watchdog, the Office for Budget Responsibility, is likely to upgrade its previous prediction for GDP from 2.4% to 3% this year, according to a leading economic forecaster.

The backdrop for the improved economic picture is the plunging oil price

The EY ITEM Club also says the OBR is expected to revise down down its forecast for borrowing in 2015/16 by £6bn.

The backdrop for the improved economic picture is the plunging oil price, which as well as boosting the outlook for growth will, by reducing inflation, help to reduce some of the Government's spending commitments, says the forecaster.

Video: 60-Second Economist: The Budget

The Chancellor is also in line for a boost from stronger tax revenues, particularly through VAT receipts as a result of increased consumer spending.

However, EY says the political constraints of coalition means the Chancellor will be unable to use the unexpected windfall for pre-election giveaways at the Budget.

Martin Beck, senior economic advisor to the EY ITEM Club, said: "The OBR's forecast will provide plenty of cheer for the Chancellor, who will be able to trumpet downgrades to borrowing projections and upgrades to the forecast for economic growth.

Video: The Sky News Budget Rap Battle

"A big part of this story is the collapse in the oil price, which has boosted the outlook for growth and, by reducing inflation, helped to reduce some of the Government's spending commitments.

"In a world without political complications, the Chancellor would be expected to take advantage of his fiscal wiggle room and announce some eye catching measures as he delivers his last Budget in this Parliament.

"However, political constraints mean that we can expect a caretaker Budget that keeps things ticking over, with most of the expected windfall banked until after the general election, when any big policy decisions will be made."

Video: Ken Clarke On The Budget

23.33 | 0 komentar | Read More

CVC And Singapore Eye £2.5bn Center Parcs Bid

By Mark Kleinman, City Editor

The biggest shareholder in Formula One (F1) motor racing has teamed up with a Singaporean state fund to mount a joint £2.5bn bid for Center Parcs, the British-based leisure resorts operator.

Sky News understands that CVC Capital Partners and the Government Investment Corporation of Singapore (GIC) have joined forces in an attempt to persuade Blackstone, Center Parcs' current owner, to sell the company.

CVC and GIC are said to be in discussions with the Abu Dhabi Investment Authority, another powerful state fund, about joining their bid.

The Singaporean entity is a major investor in CVC's buyout funds as well as in the private equity firm's general partnership itself.

Sky News revealed last month that Blackstone had appointed a quartet of banks to work on a potential flotation of Center Parcs.

In a statement to bondholders on Monday, Center Parcs confirmed that it was "considering its strategic and financing options, which may include private or public equity or debt capital markets".

"However, no decision has been taken as to whether to proceed with any such transaction and, if Center Parcs does decide to proceed with a transaction, an announcement will be made at the appropriate time."

Late last year, Blackstone rejected a joint takeover offer from BC Partners and the Canada Pension Plan (CPP) which is understood to have valued Center Parcs at about £2bn.

KSL Capital Partners, another private equity group, has now joined forces with the duo to mount a revised bid.

The latest developments raise the prospect of a full-blown bidding war which could provide Blackstone with an attractive alternative to the equity markets as it seeks to realise its investment in a company it has owned since 2006.

The fifth village to open in the UK, it recorded a 99% occupancy rate during the three months since its launch, underlining the popularity of Center Parcs resorts and its growth potential.

The company is run by Martin Dalby, who became chief executive in 2000.

Among the options on which Rothschild, the investment bank, has been advising Blackstone and Center Parcs' board is a further refinancing that would enable shareholders to land a big payday ahead of a sale or stock market listing.

Center Parcs had a brief and not particularly successful spell as a public company before being taken private by Blackstone in 2006.

According to the company's 2014 annual report, it made adjusted pre-tax profits of nearly £147m during the financial year, up from £140m.

Blackstone and CVC declined to comment.

23.33 | 0 komentar | Read More

Nasdaq Chief Dismisses Tech Bubble Fears

With internet stocks reaching the highs of the dotcom boom, the president of the Nasdaq exchange has dismissed any fears of a new tech bubble.

The Nasdaq Composite index hit 5,000 points for a brief period last week.

The last time it reached that level was 15 years ago at the height of the technology bubble - which burst soon after and dropped to 1,500 points.

Exchange president Adena Friedman said: "I was there in 2000. It was a very, very different index then. If you look at the index today, we now have three of the five largest companies in the world.

"I personally think that tech is in a huge growth phase. There is a rationale for the types of valuations that these companies are getting based on the growth opportunity globally for technology and biotech."

Nasdaq hosts Apple, Facebook and Google, and has also attracted non-tech companies such as Starbucks and the Marriott hotel chain.

But many companies are opting to turn to private markets for funding, including Airbnb, Snapchat, and Uber - which is one of the most highly valued unlisted companies.

Among the companies that failed during the 2000 crash were boo.com - which spent $188m (£126m) in six months to create an online fashion store - and pets.com. 

23.33 | 0 komentar | Read More