A Sky News exclusive reveals that more than 140 London-listed companies including FeverTree Drinks, Arbuthnot Banking Group, Jet2, Mothercare, Virgin Wines, FPR Advisory, M&C Saatchi, Revolution Bars, Revolution Beauty and YouGov have signed a letter to Chancellor Rachel Reeves warning that speculation about the abolition of inheritance tax rexemption on AIM shares is damaging investor confidence. They called on her to rule the changes out ahead of her Budget on 30^th October by providing "clear support" for the tax relief, known as Business Relief (BF) to restore investors' faith in the City's junior exchange. "Underpinned by important tax reliefs like Business Relief on Inheritance Tax, AIM has become one of the most successful growth markets in the world,” the signatories said, adding: "While there are a small number of specialist funds investing in companies listed on AIM, a significant percentage of our shareholder base is made up of individual investors. BR compensates those investors for some of the additional risks associated with investing in growing companies”. Sky also reported that the letter was organised by Octopus Investments, which has invested in a large portfolio of AIM stocks through its AIM Inheritance Tax Service, and that investment bank Cavendish is understood to have helped gather more signatories. Together, the AIM-quoted businesses writing the letter generate combined profits of £1.5bn and employ more than 120,000 people.

Asset manager Liontrust also said yesterday that its customers have pulled out £1.1bn in funds in the three months ended 30^th September amid “speculation and uncertainty” around changes to taxation in the lead-up to Chancellor Rachel Reeves’ first budget. Assets under management decreased by 4% in the quarter to £26bn, Liontrust said. Jupiter Fund Management has noted the same weak client sentiment, this morning reporting outflows of £1.6bn in the third quarter.

Business owners have also been fast-tracking selling their companies over the past year because of fears around a possible tax raid in the Budget, professional services firm Evelyn Partners says. The consultancy believes 29% of business owners accelerated their plans, up from the 23% who did so 18 months ago, specifically because they were worried about a capital gains tax hike. A further 20% fast-tracked their plans due to rumoured changes to inheritance tax, which could make it more costly to pass on a business, Evelyn said. “Speculation is rife that the Chancellor will curtail Business Relief which can help to soften burdensome IHT liabilities and we have had conversations with many business owners who want to fast-track succession plans while this valuable relief is still available,” Laura Hayward, a tax partner at Evelyn Partners said.

The Chancellor is also being warned that her plans to change borrowing rules to fund up to £50bn in further Government spending risks triggering a “buyers’ strike” in the gilt market. Citi, one of those authorised to buy and sell government bonds directly from the Treasury, said overseas investors in particular are nervous about her spending plans. Benjamin Nabarro, chief UK economist at Citi, explained nervousness dated back to Liz Truss’ time as Prime Minister, but that Rache Reeves plans were not helping. “International investors in particular, are not really willing to give the gilt market the benefit of the doubt. So once that uncertainty has entered the market, we have seen not a full-blown, but a tacit sort of buyers’ strike begin to emerge in the market. And that is a material problem,” he said, adding: “there is material concern out there”. However, he also made it clear that buyers still had confidence in UK debt because they did not expect a “large and front-loaded” increase in investment spending. “I don’t think there’s going to be a buyers’ strike tomorrow by any means [but] the UK in general just has to be more careful,” he concluded.

GDP grew by 0.2% in August, after two consecutive months of stagnation, official figures from the Office for National Statistics (ONS) show this morning. All main sectors of the UK economy grew: services rose by 0.1%, while production and construction grew 0.5% and 0.4% respectively. However, Liz McKeown, director of economic statistics at the ONS, said: “The broader picture is one of slowing growth in recent months, compared to the first half of the year”. “This will provide a timely boost for the chancellor amidst a backdrop of growing spending pressures," YaelSelfin, chief economist at KPMG UK told City AM. However, the ONS also revised down its estimates for growth in April and May, which now show readings of -0.1% and +0.2%, compared with previous estimates of 0.0% and +0.4%.

Lending institutions say more households across the UK that are defaulting on their mortgages, the seventh consecutive month they have reported this trend when surveyed for the Bank of England’s quarterly Credit Conditions Survey. The institutions expect numbers to continue to rise through November and into Christmas.

The Government is investigating 37 UK-linked businesses for potentially breaking Russian oil sanctions - but no fines have been handed out so far, the BBC reveals. The identities of the businesses are unknown. Using Freedom of Information laws, the BBC found that in total, the Treasury has opened investigations into 52 companies with a connection to the UK suspected of breaching sanctions. Meanwhile, The Office of Trade Sanctions Implementation (OTSI) is launched by Ministers today. A new unit sitting within the Department for Business and Trade, it is tasked with seeking out and fining businesses that are in breach of UK sanctions. It will also provide guidance to businesses to make complying with sanctions obligations “as straightforward as possible”.  The OTSI does not replace the Office for Financial Sanctions Implementation (OFSI), but will sit alongside it. OFSI sits within HM Treasury.

Prime Minister Keir Starmer has announced that former Darktrace CEO Poppy Gustafsson will be appointed to the role of investment minister - a role enabled by putting her into the House of Lords – to lead his ’scaled up’ Office for Investment. Starmer described Gustafsson as an "accomplished entrepreneur who brings invaluable experience to the role". Yesterday, the former investment Minister Lord Dominic Johnson said it was “totally ridiculous” for Labour not to have filled the role within its first 100 days in office. Gustafsson, Gareth Southgate and the boss of Aviva will be among the headline speakers at the Government’s global investment summit next week.

Business Secretary Jonathan Reynolds has removed from the Government’s advisory Board of Trade members appointed by his predecessor Kemi Badenoch, Sky News understands. Those given the boot include Universal Music Group boss Sir Lucian Grainge and fashion accessories designer Anya Hindmarch. Reynolds apparently wrote to the Board’s members in August to notify them that the change of government offered an opportunity to “refresh” its membership and remit.

Deputy Prime Minister Angela Rayner will make employers allow unionised staff to take part in diversity programmes during working hours, by law, The Telegraph says.  The extra powers mean that so-called ‘diversity pilgrims,’ who work full-time on union duties, can legally take time off for equality training or relevant preparation work while having any necessary accommodation costs covered.

Iberdrola, Spain's largest power company, is to invest up to £12bn in its British division, Scottish Power, over the next four years, doubling its commitment in the UK. "The clear policy direction, stable regulatory frameworks and overall attractiveness of the UK are leading us to double our investments for 2024-28," Iberdrola Executive Chairman and Scottish Power Chairman Ignacio Galan said.

Steel tycoon Sanjeev Gupta is facing multiple criminal charges over allegedly failing to file accounts in the UK for 76 companies, The Financial Times has revealed. The charges, to which Gupta pleaded ‘not-guilty’ at Cardiff Magistrates Court in March, have been brought by Companies House, and relate to firms including Gupta’s trading firm, Liberty Commodities. Four other directors, Iain Hunter, Deepak Sogani, Jeffrey Kabel and Jeffrey Stein are also being prosecuted in relation to the alleged failure to file accounts. All have also pleaded not guilty. A Companies House spokesperson told City AM: “We can confirm we are taking enforcement action however we are unable to comment further at this time.”

The Financial Conduct Authority (FCA) has fined the TSB bank almost £11m after ruling it had failed to treat customers in arrears fairly. The bank has also paid £99.9m to redress 232,840 customers affected because of what the FCA called its “inadequate processes” which “created a real risk that repayment plans were not realistic”. They had taken out a range of products including mortgages, overdrafts, credit cards and loans.

Zilch told an Innovate Finance event yesterday that it is likely to list in London. The Buy-now pay-later (BNPL) firm has just posted its first quarterly profit and plans to double its headcount over the next 18 months.  

Tesla boss Elon Musk has unveiled his prototype robotaxi, the Cybercab, at the Warner Bros Studios in California. The futuristic-looking vehicle has no pedals or steering wheel, and features two wing-like ‘Lamborghini-style’ doors.  At the event, billed as "We, Robot," the multi-billionaire reiterated his view that fully self-driving vehicles will be safer than those operated by humans and can even earn their owners money, through being rented out for rides. He said he hoped production of the Cybercab will begin some time "before 2027" and that it would cost less than $30,000 (£23,000).

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