Labour is ‘choking UK's financial sector with tax hikes and red tape'
The Confederation of British Industry's latest report shows activity there has fallen at the lowest pace since 2023.
Confidence collapsed to its lowest level in nearly three years.
And bosses warned headcount is set to plunge by 52 per cent.
Nearly half of firms pointed the finger at 'the volatile economic climate regulation, and Autumn Budget measures'.
CBI economist Alpesh Paleja said firms will now be hoping they do not face more tax rises in the next Budget.
He said: 'Conditions deteriorated in the financial services sector over the second quarter, with business volumes falling at their fastest pace since late 2023 and sentiment dropping sharply.
'Profitability was squeezed further, as firms faced narrowing spreads.
'While activity is projected to stabilise next quarter, firms still expect to cut back on hiring and investment going forward.'
EX-Labour leader Lord Neil Kinnock yesterday called for a new two per cent wealth tax on assets over £10million.
Changes to UC & PIP payments in full as Labour reveals bruising welfare bill concessions in bid to quell rebellion
1
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Argus
16 minutes ago
- South Wales Argus
Ministers face fresh challenge to welfare reforms in Wednesday votes
The Department for Work and Pensions will try to steer the Universal Credit Bill through its final Commons stages, including clause-by-clause scrutiny, on Wednesday. The Bill, if agreed to, would roll out two different rates of benefit for claimants who cannot currently work. It would also freeze the limited capability for work and work-related activity (LCW and LCWRA) elements of the benefit until 2030. The PA news agency understands that a 'substantial number' of Labour rebels have agreed to vote to gut the Bill of these reforms, if they can trigger a division. When MPs debated the reforms last week, Government frontbenchers rolled back on their plan to reform the separate personal independence payment (Pip) benefit, vowing to revisit any proposed changes only after a review by social security minister Sir Stephen Timms. 'The Government for all the goodwill of pulling clause five on Pip, they've lost it over being so stubborn and obstinate over clauses two and three,' Labour MP for York Central Rachael Maskell said. Clause two of the Bill includes a framework for two rates of LCWRA, with claimants who are eligible for the benefit before April 2026 able to claim a higher rate than later applicants. Claimants who are terminally ill or who have severe symptoms of an illness which 'constantly' apply would also be eligible for the higher rate, regardless of when they become eligible. Ms Maskell has proposed a change to the reforms, so that someone who has slipped out of and then back into the LCWRA eligibility criteria either side of April 2026 would still be able to claim the higher rate. Approving this change would be like 'gathering up the crumbs rather than getting the full course meal', she said. Asked what the Government should do to tackle welfare costs, Ms Maskell told the PA news agency: 'We've got to put the early interventions in to take people off this path of ill health. 'We've got quite a sick society at the moment for all the reasons that we know, a broken NHS, you know, social care not being where it should be, and of course long-term Covid. 'All of that is having its impact, and the endemic mental health challenges that people are facing. 'But to then have the confidence that your programme is so good that it's going to get loads of these people into work and employers are going to have to fulfil their obligations in the future hopefully after the Charlie Mayfield report (the Keep Britain Working review) will make those recommendations – all of that, great, as far as it goes. 'But what we can't do is leave those people that can't work in poverty, because they would love to work and earn money, but they can't, so we have to pay for it. 'And therefore the people who've got the good fortune of earning money, whether it's through income or assets, they're the people that are going to have to support a wider society.' Labour MP for Poole Neil Duncan-Jordan proposed gutting the Bill through a series of draft amendments, to strike clause two and cancel the freeze in clause three. He and Ms Maskell were two of 49 MPs who unsuccessfully tried to block the Bill at second reading, when it cleared its first Commons hurdle by 335 votes to 260, majority 75. Amid fears the Bill had been rushed through Parliament, and referring to the Liberal reformer William Beveridge who published a post-war blueprint for the welfare state in 1942, Mr Duncan-Jordan asked: 'Beveridge didn't design the welfare state on the back of a postage stamp, did he?' Beyond changes to parts of the benefit specifically for people who cannot currently work, the Bill would demand an above-inflation rise to the universal credit standard allowance each year until 2030.
Western Telegraph
17 minutes ago
- Western Telegraph
Ministers face fresh challenge to welfare reforms in Wednesday votes
The Department for Work and Pensions will try to steer the Universal Credit Bill through its final Commons stages, including clause-by-clause scrutiny, on Wednesday. The Bill, if agreed to, would roll out two different rates of benefit for claimants who cannot currently work. It would also freeze the limited capability for work and work-related activity (LCW and LCWRA) elements of the benefit until 2030. The PA news agency understands that a 'substantial number' of Labour rebels have agreed to vote to gut the Bill of these reforms, if they can trigger a division. When MPs debated the reforms last week, Government frontbenchers rolled back on their plan to reform the separate personal independence payment (Pip) benefit, vowing to revisit any proposed changes only after a review by social security minister Sir Stephen Timms. 'The Government for all the goodwill of pulling clause five on Pip, they've lost it over being so stubborn and obstinate over clauses two and three,' Labour MP for York Central Rachael Maskell said. Clause two of the Bill includes a framework for two rates of LCWRA, with claimants who are eligible for the benefit before April 2026 able to claim a higher rate than later applicants. Claimants who are terminally ill or who have severe symptoms of an illness which 'constantly' apply would also be eligible for the higher rate, regardless of when they become eligible. Ms Maskell has proposed a change to the reforms, so that someone who has slipped out of and then back into the LCWRA eligibility criteria either side of April 2026 would still be able to claim the higher rate. Approving this change would be like 'gathering up the crumbs rather than getting the full course meal', she said. Asked what the Government should do to tackle welfare costs, Ms Maskell told the PA news agency: 'We've got to put the early interventions in to take people off this path of ill health. 'We've got quite a sick society at the moment for all the reasons that we know, a broken NHS, you know, social care not being where it should be, and of course long-term Covid. 'All of that is having its impact, and the endemic mental health challenges that people are facing. 'But to then have the confidence that your programme is so good that it's going to get loads of these people into work and employers are going to have to fulfil their obligations in the future hopefully after the Charlie Mayfield report (the Keep Britain Working review) will make those recommendations – all of that, great, as far as it goes. 'But what we can't do is leave those people that can't work in poverty, because they would love to work and earn money, but they can't, so we have to pay for it. 'And therefore the people who've got the good fortune of earning money, whether it's through income or assets, they're the people that are going to have to support a wider society.' Labour MP for Poole Neil Duncan-Jordan proposed gutting the Bill through a series of draft amendments, to strike clause two and cancel the freeze in clause three. He and Ms Maskell were two of 49 MPs who unsuccessfully tried to block the Bill at second reading, when it cleared its first Commons hurdle by 335 votes to 260, majority 75. Amid fears the Bill had been rushed through Parliament, and referring to the Liberal reformer William Beveridge who published a post-war blueprint for the welfare state in 1942, Mr Duncan-Jordan asked: 'Beveridge didn't design the welfare state on the back of a postage stamp, did he?' Beyond changes to parts of the benefit specifically for people who cannot currently work, the Bill would demand an above-inflation rise to the universal credit standard allowance each year until 2030.
Telegraph
21 minutes ago
- Telegraph
Macron blames Starmer for migrant crisis
Emmanuel Macron is demanding that Sir Keir Starmer make Britain less appealing to Channel migrants to secure a ' one in, one out deal '. The French president believes the UK bears the blame for record numbers of small boats crossing the Channel and has three key demands to reduce its 'pull factors'. Mr Macron, who arrived in Britain on Tuesday for the first state visit by a European head of state since Brexit, was due to announce the new agreement with the Prime Minister at an Anglo-French summit on Thursday. A deal with Paris would allow Britain to legally return illegal Channel migrants to France for the first time since Brexit. But Sir Keir is scrambling to rescue the pact after five EU member states bearing the brunt of European arrivals raised concerns that a deal would see them forced to take more migrants. The Telegraph understands that Mr Macron wants Sir Keir to crack down on the UK's black market for labour and welfare payments and make family reunification for genuine asylum seekers easier as conditions for the deal. An Elysée source warned that Mr Macron expected measures 'addressing the root causes of the factors that attract people to the United Kingdom', adding: 'These causes must also be addressed by the British.' They added that France would be willing to discuss ways to stop more small boats leaving its shores during the Anglo-French summit on Thursday. Mr Macron's allies have said the ease in which migrants can get under-the-table employment means Britain is viewed as 'an El Dorado' – a city of riches, where it is easy to work. The demands emerged as Mr Macron enjoyed a day rich with pomp and pageantry during a visit celebrating what the Elysée called a 'pragmatic rapprochement'. After being greeted at RAF Northolt by the Prince and Princess of Wales and treated to a royal procession, he addressed Parliament before the King hosted a state banquet in his honour in Windsor Castle on Tuesday evening. Starmer must address 'pull factors' In Westminster in the afternoon, Mr Macron went public with his concerns, telling an audience including Sir Keir that the British Government would have to address 'pull factors' to drive down migrant numbers. Channel crossings have hit a record high this year with 20,600 migrants so far, the highest since the first arrivals in 2018. Mr Macron said that a third of migrants entering the EU's Schengen area illegally were aiming for the UK as their final destination. He said: 'France and the United Kingdom have a shared responsibility to address irregular migration with humanity, solidarity and fairness.' The president added: 'We will only arrive at a lasting and effective solution with action at the European level [...] as well as addressing migration pull factors. 'But let's be clear we will deliver together, as this is a clear issue for our countries.' He also warned that French and British societies risk 'growing apart' and that Brexit was a 'regrettable' decision, although he said he respected it. Mr Macron is making three demands to Sir Keir to get their 'one in, one out' deal over the line in time for Thursday. The French president wants to make it harder for illegal immigrants to work in Britain. While asylum seekers are not allowed to work legally, the French view is there are not enough controls to prevent them from doing so. The gig economy and delivery drivers are seen as areas that can be easily exploited, and Britain does not have European-style ID cards. Mr Macron also sees benefits for migrants successfully granted asylum as another pull factor attracting migrants to Britain and another root cause that should be addressed. Legal routes for genuine asylum seekers His third demand centres on the number of small boat migrants trying to reach their families who are already in the UK. Mr Macron wants Britain to accept one genuine asylum seeker from France who wants to rejoin a family member in Britain for each illegal migrant France takes back. It is thought migrants will be less incentivised to make the dangerous crossing if they have a legal route into Britain. Yvette Cooper, the Home Secretary, has already prioritised a crackdown on illegal foreign workers and a blitz on delivery drivers, announced last week, in an attempt to counter criticism of the UK as a 'soft touch'. Raids on companies suspected of employing illegal workers passed 10,000 in the past year, a 48 per cent rise and fines for doing so have tripled to £60,000. In May, a Telegraph investigation revealed that asylum seekers housed in Home Office hotels are paying off people smuggler debts by illegally working as food delivery riders. Meanwhile, a new law will make it a legal requirement for all companies, including the gig economy, to check workers are legal. Plans are being drawn up to throw small boats migrants working illegally out of taxpayer-funded hotels and widen European-style digital IDs for overseas citizens. The King addressed the small boats crisis on Tuesday night at the state banquet, saying: 'Our security services and police will go further still to protect us against the profound challenges of terrorism, organised crime, cyber-attacks and irregular migration across the English Channel.' He added that there are no borders between Britain and France in the nations' joint quest to solve 'complex threats'. Earlier in the day, the King was seen deep in conversation with the French leader, with whom he shares a good relationship, during a carriage ride through Windsor. The King also kissed the hand of Brigitte Macron, the president's wife. More than 950 servicemen and women from all three armed services, and 70 horses, took part in the ceremonial welcome, from troops lining the carriage procession route to a guard of honour featuring guardsmen from two of the British Army's oldest regiments the Grenadier Guards and Scots Guards. Later in the evening, the state dinner at Windsor Castle saw the Princess of Wales attend her first evening banquet since November 2023, before her cancer diagnosis. She and Mr Macron were among guests who enjoyed a Franco-British menu created by Raymond Blanc at which the King raised a toast to the French in a speech peppered with jokes. Speaking partly in French, the King said: 'The summit that you and the Prime Minister will hold in London this week will deepen our alliance and broaden our partnership still further.' Addressing the French president as well as Sir Mick Jagger and Sir Elton John, he joked: 'We would not be neighbours if we did not have our differences' with 'amicable competition and occasionally even, dare I say, confusion' across cultures.
