Taxpayers should prepare for Labour to hike the rate of capital gains tax (CGT) in its autumn budget, a leading tax firm has said. Blick Rothenberg chief executive Nimesh Shah said Sir Keir Starmer has "clearly signposted" that the budget will be "painful" for higher earners and wealthier taxpayers.
The bleak picture painted by the prime minister in a news conference yesterday came after chancellor Rachel Reeves accused the previous government of leaving a £22bn "black hole" in the nation's finances.
"One obvious option to [fix] this without breaking Labour's election promises is by raising CGT," Mr Shah said.
"The prime minister and chancellor seem to be acting with urgency when it comes to tax changes, so taxpayers will need to prepare now for a likely mid-year CGT rise."
Potential Impact of a CGT Increase
The tax firm boss said the potential changes to capital gains tax - which is essentially a levy on any profit you make when you sell or "dispose of" an asset - could "encourage individuals to leave the UK and become a non-UK tax resident".
"Currently CGT raises less than 2% of the total tax take – it raised £14.5bn in 2022-23, and this is £2.5bn down from the previous tax year.
Businesses Respond to Economic Pressures
Prezzo restaurants will undergo a major revamp in the next few years after dozens of its sites were closed in a restructuring programme. The high street restaurant chain announced the closure of 46 loss-making restaurants - more than a third of its sites - last year after it struggled with soaring energy and food costs. The move put hundreds of workers at risk of redundancy. Earlier this year, Prezzo bosses said the company had returned to profitability after the business restructure. It is now planning to invest in restaurant refurbishments across the rest of this year, and in 2025 and 2026. Chief executive Dean Challenger has said the outlook for the restaurant group is "positive".
Water Companies Seek More Money
The water industry has warned that firms will be unable to deliver reforms such as stopping sewage outflows without even greater bill rises, with crisis-hit Thames seeking more cash from customers than it originally proposed. Britain's biggest supplier had initially sought a 44% rise to bills across the five-year period but is now proposing a 52% increase by 2030. That could rise to a 59% hike, taking the average annual bill to £696, if it is given extra spending allowances by the regulator. Ofwat has proposed water bills can only rise an average 21%. Now, a letter from industry trade association Water UK to Ofwat, seen by Sky News, has set the bodies on a collision course.
Sabbaticals Gain Popularity
More employers are offering sabbaticals as a way to boost employee wellbeing and improve staff retention, according to experts. A new poll shared with The Guardian by the Chartered Management Institute (CMI) reveals that more than half (53%) of managers said their firm offered sabbatical leave, compared with 29% who said they did not. In the public or charity sector, the leave was more likely to be available (62% of managers said it was offered) compared with the private sector (44%). Some 80% of younger managers under 55 said sabbatical leave was important for employers to offer, compared with 72% of people over this age. Sabbaticals offer benefits to employees and employers alike, said CMI director of policy Anthony Painter. He said companies were "doubling their efforts to boost staff retention" in a "competitive job market".
Oasis Concert Triggers Hotel Price Surge
A hotel chain in Manchester has been accused of cancelling bookings from customers on nights Oasis is planning to play in the city in 2025 - and relisting them for a higher price. Sacha Lord, night time economy adviser for Greater Manchester, wrote on X last night that he'd been contacted by "several people" who were told their rooms had been cancelled by Maldron Hotels after a "computer error". He claimed they were later "back up for three times the price". Several users have replied saying they have been affected by the issue. Oasis fan Mark Slinger, 36, who lives on the Isle of Man, told Sky News he booked a room at Maldron Hotels in Manchester city centre for 20 July - the final night of Oasis's run of shows at Heaton Park. He made the £90 reservation through booking.com yesterday morning when the band announced their major reunion tour. However, he was contacted by the hotel that evening asking him to cancel the booking. The email says: "We are writing to inform you of an issue with your booking at Maldron Hotel Manchester City Centre. Due to a technical error, you have received a confirmation for a booking that was not successfully made. Unfortunately we are unable to accommodate your booking at this time." It said a cancellation request had been sent, which Mark was asked to "accept promptly". He told Sky News he hasn't accepted the request and "won't be doing". He also doesn't believe the issue was down to a "technical error". "They realised they can cancel and re-sell at four times the price due to the Oasis gig," he said. Maldron Hotels said in a statement to the Money blog that a technical error on Monday and Tuesday led to "substantially more" rooms being booked at its two Manchester hotels than were available for the nights of the four Oasis concerts. It said it would be unable to honour bookings made on these dates as a result, and no bookings are currently being taken while the issue is investigated. "This is not an attempt to resell rooms at inflated prices, rather an overbooking issue due to a technical error with our booking systems," the hotel said. "Additionally, due to the same technical error, a small number of customers were able to book the rooms at a higher price later that evening. We will also be unable to accommodate these bookings. We will be honouring all bookings made prior to 26 August. We sincerely apologise for any inconvenience caused." Hotels operate dynamic pricing so that rates go up along with demand - so it's not unusual for prices to increase substantially around big events. Yesterday, we reported that hotel prices for Oasis's first night at Wembley were already as much as three times as expensive as the week before. "I had a quick look at a Holiday Inn a couple of miles away the week before the concert, it's £195 a night. The first night of the concert, it's £594 a night," said correspondent Matthew Thompson. "So already people are getting on the hotel rooms even before the tickets go on sale. That gives you some sense of just how much demand there is for these tickets." Have you been affected by this issue? Let us know via WhatsApp.
Energy Firms Meet with Government
Some of the country's biggest energy companies are attending talks with the government today about how they can help struggling customers with their fuel bills this winter. Centrica, EDF and Scottish Power are among those taking part in discussions with minister Miatta Fahnbulleh at the energy department, as are regulator Ofgem, Energy UK and Citizens Advice. Our political correspondent Darren McCaffrey says it's part of a government attempt to have energy firms do more to help customers. "What the government is saying is there isn't as much help as there has been previously, fiscally we're in a pretty desperate situation - they're looking for the companies to step up," he says. There are three things in the government's mind: Whether energy companies will be willing to pick up the tab to help is uncertain right now, though. "The government is trying to push them in that direction," says Darren. "That's the key thing that will potentially emerge from this meeting."
Pound Soars Against Dollar
It's another good morning for anyone travelling to the US as the pound has remained near a more-than two-year high against the dollar. A pound still buys $1.32, meaning sterling goes further than at any point in the last 29 months. Market observers expect the US central bank to sizably cut interest rates, which is weakening the value of the dollar. As oil is paid for in dollars, having the currency weakened can make importing motor fuels cheaper. This morning, the benchmark oil price has fallen below $80 a barrel, standing at $78.79, the lowest since Friday last week. The share prices of the biggest companies on the London Stock Exchange are down 0.02% for the 100 most valuable (the FTSE 100) and 0.06% for the 101st to 350th most valuable (the more UK-based companies of the FTSE 250).
Ryanair Fares May Fall Further
There's good news for holidaymakers as the boss of Ryanair suggests fares could keep falling through the winter and into next year. Michael O'Leary told reporters that fares for the budget airline had been predicted to rise by 10% from July to September - but instead will fall 5%. We reported earlier this month that resorts around Europe have been lowering rates due to lower demand - with the post-COVID boom easing and travellers reluctant to keep paying premium prices. Mr O'Leary said it was reasonable to expect that fares could stay down by 5% in the six months to the end of the financial year in March. "More people are flying with us this summer at lower fares," said Mr O'Leary. "Good news for our passengers, bad news for our shareholders."
Booze Limit Proposed for Flights
In separate comments, Mr O'Leary has said plane passengers should be restricted to two drinks at airports to tackle a rise in disorder on flights. "We don't want to begrudge people having a drink," he told the Daily Telegraph. "But we don't allow people to drink-drive, yet we keep putting them up in aircraft at 33,000ft." He added it was difficult for staff to identify drunk passengers as they board: "As long as they can stand up and shuffle they will get through. Then when the plane takes off, we see the misbehaviour."
Iceland Boss Warns of Bankrupting Wage Hike
The boss of Iceland says a sudden further minimum wage increase could bankrupt the budget supermarket chain. Richard Walker told The Telegraph that it was right for employees to be paid as much as possible - but any changes should be "bled in slowly". The minimum wage increased in April to £11.44 for workers aged 21 and over. The rate for 18-20-year-olds now sits at £8.60. The Labour government has not confirmed any future changes, but deputy prime minister Angela Rayner has championed a proposed overhaul of workers' rights - including increasing the minimum wage, ending zero-hours contracts and ending "fire and rehire" practices. Mr Walker, a former Tory donor who switched support to Labour in January, said he supported the overhaul but warned there could be a "disastrous" impact if wage changes are not brought in gradually. "If Labour puts up the minimum wage and brings in day one rights, that's fine, but it needs to be bled in slowly. If they turn around and say 'the minimum wage is £15 now', that would bankrupt us," he said. "A huge leap in the national minimum wage would be disastrous. Of course, people should be paid as much as we possibly can. So let's keep the ambition and keep pushing, but not have such a shock to business."
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