Chancellor Rachel Reeves has pledged to launch a national wealth fund “in less than a week” involving £7.3bn in state funding distributred via the UK Infrastructure Bank and the British Business Bank. She hopes the cash injection will spark billions in private investment into clean energy, ports, heavy industry and manufacturing. “We need to go further and faster if we are to fix the foundations of our economy to rebuild Britain and make every part of our country better off,” Reeves said, adding: “Britain is open for business – and the work of change has begun.” She and Energy secretary Ed Miliband led a meeting of the national wealth fund task force at the Treasury yesterday. Members include former Bank of England governor Mark Carney, Barclays CEO C.S Venkatakrishnan, and the CEO of Aviva Dame Amanda Blanc.

Prime Minister Sir Keir Starmer is also said to have set the date for the annual Global Investment Summit, which aims to draw to Britain tens of billions of pounds in foreign capital. Sky News claims ministers have pencilled in a date of on or around 8^th October for the event. Last year, former Prime Minister Rishi Sunak delivered the keynote speech, unveiling £29.5bn of investment in new projects and capital, a sum Labour will want to beat. The Department for Business and Trade declined to comment on the date of Labour's summit.

Private equity investors, however, are ready to pack their bags and leave the UK, if reports in City A.M. and the Telegraph are to be believed. Both newspapers in the past couple of days have quoted individuals and lawyers who say Chancellor Rachel Reeves’ plans to close what she calls the ‘carried interest’ tax ‘loophole’ which allows investors to pay 28% Capital Gains Tax on profits rather than Income Tax at a rate of 45%, “has set nerves ablaze in the industry”.  One law firm claims the plan has so spooked investors that it is receiving even more calls about a move away than when it was feared Jeremy Corbyn could become Prime Minister. Jason Clatworthy, managing director of Alvarez & Marsal’s UK tax division, told City A.M.: “From Easter onwards it was very noticeable that the number of inbound calls we were getting from private equity executives really wanting – for the first time in my career – to properly understand their options and paying for advice to leave the country,” adding that “there was a lot of them”. Meanwhile, Mike Hinchliffe, head of private equity at Addleshaw Goddard, told The Telegraph executives were now giving “serious consideration” to moving overseas after Labour’s landslide victory. “There’s no question that fund managers have started to ask for feasibility studies about relocating. The flight risk is real,” he said.  In its manifesto, Labour said private equity was the “only industry where performance-related pay is treated as capital gains” and claimed the £565m raised would fund 8,500 new mental health staff”. However, during the election campaign Reeves said the uplift would not apply to managers and investors who were putting their own capital at risk and that she would consult on the change.

So called ‘non-doms,’ many of whom have also been cited as potentially leaving the country, paid a total of almost £9bn in UK taxes last year, HM Revenue & Customs has announced. Revenue from non-domiciled taxpayers jumped by £474m to £8.9bn in the tax year ending in 2023, up 6% year-on-year and the highest total since the tax year ending in 2017, when the Government tightened the rules on who was eligible to qualify for the tax status. Labour is planning a further crackdown.

The new City Minister is Tulip Siddiq. The MP for Hampstead and Highgate has shadowed former Conservative Minister Bim Afolami in the job since 2021, despite not having a background in the City or in finance, having worked mostly for other MPs or political and PR consultancies before becoming an MP herself. Siddiq is a niece of the current Prime Minister of Bangladesh, Sheikh Hasina, whose regime has been accused of serious human rights’ abuses, including the disappearance of political opponents. She has come under fire for refusing to condemn her aunt, telling Channel 4: “I have no capability nor desire to influence politics in Bangladesh”. [1]

Hakluyt boss Varun Chandra is being lined up for a top business role in the Labour Government, Sky News has learnt. City Editor Mark Kleinman cites his sources as saying that Chandra, who has been the corporate intelligence firm’s managing partner since 2019, is likely to take on a senior business liaison role in 10 Downing Street, a role occupied by Lord Petitgas, the former Morgan Stanley banker, in Rishi Sunak's administration. Like Petitgas, Chandra is an ex-Lehman Brothers banker who went on to establish the regulated business operations of former PM Tony Blair, Kleinman says.

British banks employed more people last year than in a decade, 612,519 people globally, according to figures compiled by trade publication The Banker. The tally marks a 3.56% increase, or just over 21,000 people. However, since 2013, when The Banker began counting, total headcount has still dropped by 20% as banks take cost-cutting measures.

Oil giant BP warned yesterday that it expects to take a hit of up to $3bn (£2.3bn) in its April to June results because falling demand for petrol has led its refining business to struggle. It also said that it also expects a $2bn (£1.6bn) loss due to its plan to scale back refining operations in Germany by a third, also due to weaker demand.

Thomas Cook’s creditors are to receive a total of £280m, it has been revealed, five years after the travel chain collapsed into liquidation. David Chapman, who was appointed as official receiver and liquidator of the Thomas Cook group, said: “I understand that a lot of people lost money following the collapse of Thomas Cook. My team has been working hard to finalise the liquidation, maximising funds which can now be distributed to creditors. I would encourage creditors to visit the dedicated Thomas Cook claims site to check the position regarding their claim as soon as possible, so we can consider whether they should receive any part of the funds being distributed.” The announcement follows Chapman’s review of the group’s assets which included the sale of airport slots, hotel investments and high street stores. The Insolvency Service, the UK’s bankruptcy watchdog, cleared the Thomas Cook board of any wrongdoing two years’ ago.

The Co-op has signed a new contract with EG On The Move to open new stores in petrol stations across the country, including seven this summer. EG On The Move recently announced plans to grow by over 120 sites in the next three years. The Co-op also plans to increase its franchise stores to reach over 500 by 2030, across petrol forecourts, universities and convenience locations. It sold its petrol station business to Asda for £661m in 2023.

JD Wetherspoon’s boss Sir Tim Martin has said the firm is recovering gradually from covid lockdown-linked setbacks, having posted record sales in the second quarter. The pub chain reported a 5.8% year on year increase in sales in the 10 weeks to 7^th July 7. “Total sales are, again, at record levels, with fewer pubs,” Martin said.

Dyson is cutting 1,000 jobs in the UK as part of a cost-cutting programme. The vacuum cleaner and household electrics maker informed its 3,500 UK employees yesterday morning. CEO Hanno Kirner said Dyson was responding to global markets and ensuring its future. "We have grown quickly, and, like all companies, we review our global structures from time to time to ensure we are prepared for the future," he said. "As such, we are proposing changes to our organisation, which may result in redundancies."

Capita has sold its public sector software business Capita One for £200m to Orchard Information Systems, a subsidiary of MRI Software.

Wessex Water has had a TV advert about its plans to tackle storm overflows banned. The Advertising Standards Agency ruled it was misleading because it omitted key information about its record on sewage pollution. The utility firm provides water to 1.4m customers and sewerage services to 2.9 million people in the south-west of England. It was fined £280,000 last year by a Swindon court for supplying water unfit for human consumption for a three-week period in 2021.

Mulberry has appointed Andrea Baldo as its new CEO, replacing Thierry Andretta who is stepping down with immediate effect.

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