Heathrow's investment plan punctures the third runway myth
Rachel Reeves is the latest to have a go, bizarrely making this unbuildable landing strip Britain's No 1 growth project. By now, it will cost £40 billion to £60 billion — or up to three times the airport's £20.5 billion regulatory asset base. And, given Heathrow has £17 billion net debts, no one yet knows how it will pay for it — or what regulatory changes will be required to stop passenger charges quadrupling to about £100 a ticket. That's before the fun to come, too, from a big rejig of flight paths, demolishing 750 homes and encasing all 12 lanes of the M25 in a tunnel, so bringing much of west London to a halt.
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FF News
10 minutes ago
- FF News
Financial Regulator Lowers Costs for Businesses Raising Capital in Support of Growth
Stripped back rules will make it easier for companies to raise the money they need to grow, supporting the UK's leading capital markets. The changes will lower costs for companies and widen access to investment opportunities for consumers. In a suite of measures, the FCA has confirmed: Companies that are already listed won't need to publish lengthy prospectuses to issue more shares, in most cases. The length of time between a prospectus being issued and an initial public offering (IPO) is being halved, helping companies list more quickly on the stock exchange. Companies will be able to issue corporate bonds to retail investors more easily and a new public offer platform will help smaller growth companies raise cash to scale up. Simon Walls, executive director of markets at the FCA, remarked: 'These bold shifts promote innovation, lower costs, and enable a broader investor base for growing businesses. They are the latest in a programme of reforms shifting the balance from pre-emptive checks to market disclosures. 'Our capital markets are world leading. They're our economic engine, and we want to keep them roaring in support of sustained growth and prosperity for the whole country.' Companies will not be required to publish a prospectus when raising further capital, except in limited circumstances. The threshold for when a prospectus is required for a listed company to raise more shares has increased to 75% of existing share capital, up from its current 20% level. This will reduce costs for UK companies seeking new funds by an estimated £40 million per year, unlocking more capital for growth and investment. IPOs that include the wider public can come to market 3 days after the publication of their prospectus, replacing the previous 6-day window and removing barriers to retail access. The FCA has set out a single disclosure standard for corporate bond prospectuses, covering both large and small bonds. This reduces costs for companies and will make it easier for corporate bonds to be issued in smaller, more investible sizes and support retail investment. Corporate bonds offer a valuable investment opportunity for retail investors and can provide later life income, helping people navigate their financial lives. Public Offer Platforms (POPs) The regulator has set up a new platform for public offers to make it easier for growth companies to get the investment they need and increase opportunities for investors. It will enable companies to make larger offers of shares or bonds without a lengthy prospectus, above £5 million. Offers will be made available to a broad investor base outside of public markets via an authorised firm. This will work similarly to crowdfunding platforms but for larger deals.
ITV News
18 minutes ago
- ITV News
Reeves hails ‘instant impact' for aspiring homeowners as red tape is cut
First-time buyers are set to see an 'instant impact' from the drive to kickstart economic growth, Chancellor Rachel Reeves is expected to say. More mortgages will be available at more than 4.5 times a buyer's income following recent Bank of England recommendations that some lenders can offer more high loan-to-income mortgages if they choose to. This will create up to 36,000 additional mortgages for first-time buyers over the first year, the Government said. Britain's biggest building society – Nationwide – announced last week that it is aiming to increase its high loan-to-income lending limit. From Wednesday, eligible first-time buyers can apply for Nationwide's Helping Hand mortgage with a £30,000 salary, down from £35,000, and joint applicants with a £50,000 combined salary – down from £55,000. It is estimated this will support an additional 10,000 first-time buyers each year. The changes will sit alongside the creation of a permanent mortgage guarantee scheme, delivering on a manifesto commitment, and a review of Financial Conduct Authority (FCA) lending rules that could allow prospective buyers' records of paying rent on time to be used to show they can afford mortgage repayments. Reforms will be outlined in Leeds ahead of Ms Reeves's Mansion House speech on Tuesday evening. Speaking in the City of London, the Chancellor is expected to say: 'I welcome the recent changes the (Bank of England) Financial Policy Committee has announced to the loan-to-income limit on mortgage lending, which the PRA (Prudential Regulation Authority) and FCA are implementing immediately. 'With an instant impact for consumers, such as Nationwide offering its Helping Hand mortgage to more first-time buyers – supporting an additional 10,000 each year.' Ms Reeves is expected to add: 'Today, I have placed financial services at the heart of the Government's growth mission. 'Recognising that Britain cannot succeed and meet its growth ambitions without a financial services sector that is fighting fit and thriving. 'And I have been clear on the benefits that that will drive. 'With a ripple effect that will drive investment in all sectors of our economy and put pounds in the pockets of working people.' Nicholas Mendes, mortgage technical manager at broker John Charcol, said: 'The decision to widen access to Nationwide's Helping Hand mortgage by lowering the income thresholds will offer an immediate and practical benefit to a group of people who have often found themselves just on the wrong side of affordability criteria. 'For someone earning £30,000 on their own, or couples on a combined income of £50,000, this change could be the difference between continuing to rent and finally being able to move into a home of their own. 'It acknowledges the gap between headline figures and real life, and it shows a willingness to make the system better reflect the pressures people are actually under. 'It will also bring particular value to those in stable, lower-paid roles that are so essential to society but are often overlooked by traditional lending models. 'People working in care, education, retail, and public service are typically in long-term employment and manage their finances carefully, yet they are the very people who have found the doors to homeownership closed to them. 'This reform suggests that financial discipline is being recognised more broadly than by salary alone, and that is a very welcome shift. 'Equally, the recognition that a person's history of paying rent should be considered when assessing their ability to repay a mortgage is something many in the industry have been calling for over many years. 'If someone has shown, consistently and over time, that they can manage rental payments at a level equal to or even above the mortgage they are applying for, then it stands to reason that this should be considered a reliable indicator of affordability.' Paula Higgins, chief executive of the HomeOwners Alliance, said the Government should 'turn its attention to fixing the Lifetime Isa (Lisa)'. She said: 'Right now, anyone forced to withdraw their savings early faces an unfair penalty.' Ms Higgins added: 'And the £450,000 property price cap hasn't moved since Lisas launched in 2017, despite soaring house prices, particularly in the South East. 'Reforming Lisas would make a real, practical difference to those trying to get on the ladder.' Henry Jordan, Nationwide's director of home said: 'Our changes mean more people, particularly those on lower incomes, could become eligible for a mortgage. 'We also hope our commitment to further lending provides a boost to the UK's housebuilding ambitions as well as encouraging other lenders to increase support for those looking for a home of their own.'
Glasgow Times
22 minutes ago
- Glasgow Times
UK cuts stock market red tape in bid to aid Chancellor's growth plans
The financial watchdog confirmed it will cut red tape in the UK's capital markets amid the Chancellor's push to drive growth in the sector through stripping back restrictions. It comes ahead of Rachel Reeves' Mansion House speech to financial bosses, where she is expected to launch a series 'Leeds Reforms' aimed at the financial sector, focusing on a strategy of less onerous rules for firms rather than reduced risk. Over the past year, Ms Reeves has called on regulators to slash red tape in order to help drive the Government's growth agenda, with hopes that accelerated growth can help support its spending plans. Chancellor Rachel Reeves has called on regulators to cut red tape to support economic growth (Chris Furlong/PA) The Financial Conduct Authority (FCA) has confirmed it will introduce a suite of measures to lower costs for UK businesses looking to secure investment. Companies that are already listed on London's stock markets will not need to publish lengthy prospectuses in order to issue more shares and raise funds in most cases, the FCA said. New rules will also halve the time it takes between initial documents being published and an IPO (initial public offering) to list on the London Stock Exchange. It comes amid a dearth of new listings on the stock exchange, while a raft of firms have also opted to switch from London to rival international stock markets. Finance firm Wise said last month that it plans to shift its primary stock listing to the US due to stronger investment opportunities across the Atlantic. The FCA said companies will also now be able to issue corporate bonds to retail investors more easily, while a new public offer platform will help smaller growth companies raise cash. Simon Walls, executive director of markets at the FCA, said: 'These bold shifts promote innovation, lower costs and enable a broader investor base for growing businesses. They are the latest in a programme of reforms shifting the balance from pre-emptive checks to market disclosures. 'Our capital markets are world-leading. 'They're our economic engine, and we want to keep them roaring in support of sustained growth and prosperity for the whole country.' On Tuesday, the Chancellor will also reduce restrictions on lenders to allow some banks and building societies to offer more high loan-to-income mortgages to help more people buy a first home.
