As The Grocer reported yesterday, national media outlets are running with the story that major supermarkets, from Tesco to Lidl, Aldi, Co-op and M&S have all called on the government to ‘pause’ changes to inheritance tax for farming businesses, laid out in the Budget, and dubbed the ‘Family Farm Tax’.
In addition to coverage by the BBC, the FT and The Telegraph, The Times reports farmers “have been parking tractors in supermarket car parks to protest against the government’s plans”. It adds that the Office for Budget Responsibility published a new report on Wednesday which said it was “highly uncertain” how much revenue would be raised by the tax, because it was not possible to accurately predict “the behavioural response to the measure, given the range of [tax planning] options potentially available”.
Consumer confidence in the economy is in freefall amid growing fears of recession, The Telegraph reports, citing a pair of “influential surveys”. Expectations for the state of the economy plunged to fresh lows, according to the British Retail Consortium, with half of consumers expecting the situation to worsen and only one-in-six predicting an improvement in the nation’s growth. Older Britons are particularly downbeat, the BRC found, with Generation Z – those aged 27 or under – the most optimistic.
“On top of this challenging market backdrop, retailers are facing £7bn in additional costs from the Budget and new packaging levy. With retailers’ tight margins leaving little scope to absorb more costs, many are warning of price rises and job cuts in the coming months.”
Similarly 62% of those surveyed by consumer group Which? expect the economy to get worse.
However, the BBC reports that Chancellor Rachel Reeves is “optimistic” on the UK economy despite pressure on government finances after borrowing rose more than expected in December.
Recent rises in borrowing costs threaten the government’s economic plans, with Reeves under pressure after figures last week showed the UK economy had flatlined.
Antitrust lawyers have questioned the “extraordinary” decision by ministers to force out the chair of the Competition and Markets Authority, the FT reports, suggesting that it could have a “chilling” effect on other UK regulators.
“Although in the short term it seems reassuring for business, if competition policy is at the mercy of political fashion it becomes less stable and predictable, which undermines business confidence,” they said. Read The Grocer’s take on the appointment of Doug Gurr to the CMA here.
The Mail’s This is Money reports that 2.5 million Nectar points worth nearly £63,000 have been stolen from our readers in the past year. Hundreds of writers have contacted the outlet to complain about thefts. Many question the lack of security or authentication for Nectar cards, meaning criminals can theoretically duplicate a card’s bar code. Similarly, there is no cap on the amount of points that can be spent at any given time or authentication needed.
Elsewhere, The BBC reports the EU’s new trade chief responsible for post-Brexit negotiations has said a “pan-European [customs] area is something we could consider” as part of “reset” discussions between the UK and EU.
Speaking at the World Economic Forum in Davos, Sefcovic said the idea has not been “precisely formulated” by London yet and the “ball is in the UK’s court”. The BBC understands that the UK government has begun consultations with business over the benefits of the PEM plan that could help cut red tape and improve trade. No final decision has been made yet.
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