Month: November 2024

Vauxhall’s parent company, Stellantis, has announced plans to close its van manufacturing plant in Luton next April, putting more than 1,100 jobs at risk.
The decision comes amid mounting pressures from the UK government’s stringent electric vehicle (EV) sales targets, part of the zero-emission vehicle (ZEV) mandate.
Stellantis, which also owns Peugeot, Citroën, and Fiat, intends to consolidate its UK operations by focusing production at its Ellesmere Port facility in Cheshire. The plant has already received a £100 million investment to produce electric vehicles and currently manufactures smaller electric vans such as the Citroën e-Berlingo and the Vauxhall Combo Electric. An additional £50 million investment is planned to boost production capacity at Ellesmere Port.
The closure marks the end of over a century of manufacturing history in Luton, where Vauxhall first established operations in 1905. The Luton plant has been a significant part of the local economy, producing commercial vehicles since 1932 and contributing to the town’s industrial heritage.
Stellantis’s decision follows warnings earlier this year that both its UK plants were at risk due to government pressures to meet ambitious EV sales targets. The ZEV mandate requires car manufacturers to ensure that 22% of their sales are zero-emission vehicles by the end of this year—a target many firms are struggling to meet. Companies face fines of £15,000 for each petrol or diesel car sold beyond the target and £18,000 for each non-compliant van.
Labour’s transport secretary, Louise Haigh, has maintained a firm stance on the targets, despite industry pleas for flexibility. Stellantis had previously considered retooling the Luton plant to produce electric vans exclusively, including the electric version of the Vauxhall Vivaro—the UK’s best-selling electric van. However, this plan appears to have been abandoned in light of the ongoing challenges.
Employees at the Luton plant were informed of the closure, with the company offering relocation packages for those willing to move to Ellesmere Port and support for those seeking new employment. Trade union Unite described the proposal as “a complete slap in the face for our members in Luton,” pledging to support workers and urging the government to intervene.
Rachel Hopkins, Labour MP for Luton South, expressed deep concern over the announcement, highlighting the plant’s significance to the local economy and its role in Luton’s heritage.
Business secretary Jonathan Reynolds acknowledged the difficulty of the situation, stating that the transition to electric vehicles should not come at the expense of jobs. A government spokesperson emphasized ongoing support for the automotive industry, citing over £300 million invested to promote zero-emission vehicles and £2 billion to aid domestic manufacturing transitions.
The Society of Motor Manufacturers and Traders (SMMT) called the announcement “a major concern” for UK automotive manufacturing and urged the government to review the regulations and introduce measures to enhance competitiveness.
Stellantis’s move reflects wider concerns within the automotive sector regarding the ZEV mandate and the push towards electrification. Manufacturers like Ford and Nissan have also voiced apprehensions, with Ford recently announcing 800 job cuts in the UK and Nissan warning of potential irreversible damage to the industry if mandates are not eased.
Car makers argue that stringent targets, combined with a lack of consumer incentives and infrastructure challenges, make it difficult to meet government expectations. The SMMT highlighted that as of October, battery electric vehicles accounted for only 18.1% of the UK’s new car sales, falling short of the mandate’s requirements.
Competition from abroad, particularly from Chinese manufacturers offering budget EVs, adds to the pressure on UK firms. Industry leaders are calling for greater flexibility and support to navigate the transition without jeopardizing jobs and the future of UK automotive manufacturing.
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Vauxhall to close Luton plant, over 1,100 jobs at risk amid EV mandate pressures

Ministers should grant farmers an inheritance tax holiday to prevent unfair treatment under upcoming tax changes, according to the Institute for Fiscal Studies (IFS).
The IFS has warned that the government’s proposed changes to agricultural taxes risk treating some landowners unfairly and could impact food security if not mitigated appropriately. Last month, Chancellor Rachel Reeves announced in her budget that farmers with businesses worth more than £1 million could be subjected to a 20% inheritance tax, prompting tractor protests outside Parliament.
Previously, the government had promised no changes to agricultural property relief, which exempted farmers from inheritance tax. The IFS’s new analysis concludes that while it’s largely fair to treat agricultural assets like other taxable assets, special considerations are necessary to avoid unintended consequences.
David Sturrock, senior research economist at the IFS, stated: “Current farm owners passing away in the next seven years (but after the new regime comes into force in April 2026) will not have had the opportunity to avoid inheritance tax by making lifetime gifts. If the government wished to give current farm owners the same opportunity to avoid inheritance tax as owners of other assets, it could, for example, make lifetime gifts of agricultural property made before a certain future date inheritance tax free, regardless of the timing of the death.”
Treasury officials are reportedly assessing mitigations to the policy, including amending gifting rules for over-80s so they can pass on their farms without needing to live for seven years after making the gift.
Despite pressures, Chancellor Reeves is understood to be holding firm, aiming to target wealthy investors buying land to avoid inheritance tax—a practice blamed for driving up land prices. Labour insists the policy is focused on fairness and preventing tax avoidance.
However, many farmers argue that while they may be asset-rich due to land ownership, they are often cash-poor. Declining farm incomes, cost inflation, poor harvests, and fierce competition among retailers mean many farmers take home less than the minimum wage.
Tax expert Dan Neidle has conducted research suggesting the tax changes may hit working farmers harder than tax avoiders. He proposes equalising the inheritance tax to 40% but making it payable only when the land is sold, thus avoiding impact on those wishing to pass the family farm to relatives. Neidle also suggests a “clawback” mechanism where inheritance tax relief is reclaimed if inherited farmland is sold within a certain timeframe.
He further recommends raising the inheritance tax cap to about £20 million, so only the largest and most sophisticated farm businesses are affected.
Tim Farron, the Liberal Democrat environment spokesperson, commented: “The government hid behind the IFS to try and justify this disastrous policy. That very same organisation is now telling them that their own proposals need an overhaul.”
A Treasury spokesperson responded: “As the IFS has said, the existing rules for these reliefs are unfair and inefficient. We remain committed to fully implementing the policy and are not considering mitigations.”
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Think tank calls for delay in farm inheritance tax to ensure fairness

Asda has appointed former chief executive Allan Leighton as its new chair, replacing Lord Stuart Rose amid ongoing challenges including an IT overhaul and declining sales.
Leighton, who led Asda from 1996 to 2000, is set to steer the UK’s third-largest supermarket chain through a critical period of transformation.
Lord Rose, 75, who served as chair since 2021 and took on day-to-day leadership responsibilities in September alongside Rob Hattrell of TDR Capital—Asda’s majority stakeholder—will remain on the board temporarily to ensure a smooth transition before stepping down.
Leighton, 71, is renowned for revitalising Asda in the late 1990s alongside Archie Norman and orchestrating its sale to Walmart. Expressing his enthusiasm about rejoining the company, he said, “I am delighted to be returning to the business. The potential for Asda now is significant.”
Asda has faced a series of challenges in recent months, including product availability issues, concerns over store cleanliness, a petrol leak at it’s petrol station in Bramley in Surrey affecting the areas water supply, and a decline in customer experience. The retailer reported a 2.5% drop in total revenues, excluding fuel, and a 4.8% decrease in like-for-like sales for the quarter ending 30 September. Additionally, it has lost market share amid fierce competition.
The company is in the process of disentangling its IT systems from former owner Walmart, a complex task that has led to problems with payroll and online orders. Despite these hurdles, Hattrell has stated that the IT overhaul is nearing completion.
Leighton emphasised the need for Asda to refocus on its value proposition, saying the supermarket must go “back to the future but with modernity” to regain its competitive edge. Under his leadership, Asda will continue its search for a new chief executive.
Gary Lindsay, managing partner of TDR Capital, commented, “Asda has both a leading superstore estate and a strong position in every format, and Allan’s experience and understanding of Asda will stand us in good stead as he leads the business into the next stage of its development.”
Lord Rose noted that Asda would “benefit enormously from Allan’s experience” and expressed his intent to support the chain “as a shareholder and customer over the coming years.”
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Allan Leighton returns to Asda as chair, succeeding Stuart Rose

Tourists visiting the UK may soon be asked to pay local visitor levies as councils consider introducing overnight stay charges to support services strained by over-tourism.
The move follows similar measures in European destinations like Berlin and Barcelona and aims to address the challenges posed by record visitor numbers in popular areas.
Nearly half of Scotland’s local councils, including Highland, Orkney, and the Western Isles, are exploring a tourist tax. Highland council has begun consultations on a 5% overnight stay levy, potentially raising £10 million annually to improve infrastructure and facilities. Edinburgh is set to lead the UK by implementing a mandatory levy in July 2026, projected to generate £50 million per year.
In Wales, the government plans to unveil proposals for a visitor levy to fund tourism and local amenities, focusing on hotspots such as Gwynedd, Pembrokeshire, and Cardiff.
Highland council’s economy chair, Ken Gowans, emphasised the need for sustainable tourism, saying, “The wear and tear isn’t caused by locals, but they’re paying for it through council tax. If we have this money, we can maintain and improve services for visitors and residents alike.”
Over-tourism has strained destinations such as Skye’s fairy pools, the North Coast 500 route, and Orkney’s Neolithic sites. The travel guide Fodor’s recently placed the North Coast 500 on its “No list” due to its popularity creating tensions, with clogged roads, overwhelmed campsites, and environmental concerns.
In the Lake District, a study suggested introducing charges for overnight stays or car use to mitigate the environmental burden on the national park, which hosts 18 million visitors annually but has just 40,000 residents.
While some industry leaders, including VisitScotland, back the levy as a way to invest in sustainable tourism, others warn it could deter visitors. Critics, including hoteliers in Inveraray, have labelled the tax as “financial suicide,” arguing it may reduce spending and add administrative burdens.
However, Michael Hill, CEO of Friends of the Lake District, said similar levies in Europe have improved destinations. “We’re not anti-tourist. In many cases, visitor numbers actually increase after a levy is introduced because the place becomes better,” he noted.
As councils across the UK move closer to implementing visitor levies, they aim to balance the needs of local communities with those of visitors. By reinvesting revenue into infrastructure, the levies could support sustainable tourism while ensuring long-term benefits for popular destinations.
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Millions of UK tourists could face new visitor levies as councils seek to fund services

A growing number of workers are leaving companies imposing rigid office attendance requirements, according to new research. Recruiters report a significant surge in job applications from employees at firms mandating full-time office attendance, with two-thirds of recruiters surveyed noticing this trend.
The findings, from a study commissioned by flexible workspace provider IWG, reveal that stricter office policies are increasingly unpopular in the job market. Three-quarters of recruiters said candidates now routinely turn down roles lacking hybrid working options, while 72% believe businesses without flexible work policies are becoming less competitive in attracting top talent.
The shift follows a wave of stricter remote working mandates from major employers, including Amazon, Asda, PwC, and Santander. Notably, Amazon has instructed employees to return to the office full-time from January, while Starling Bank’s hybrid staff have been ordered to spend a minimum of 10 days per month in the office – sparking resignations from frustrated employees.
Employees in roles requiring five-day office attendance have voiced their discontent. Separate research from IWG found that 36% of these workers believe their employers risk losing top talent, while nearly half (46%) are actively seeking jobs offering flexibility to avoid long commutes.
Mark Dixon, chief executive of IWG, emphasised the business benefits of hybrid working: “The hybrid model boosts workforce productivity and job satisfaction while also cutting costs significantly. Flexible working is proven to enhance employee retention and competitiveness in the job market.”
The backlash against enforced office mandates comes as economists, including Stanford University’s Nicholas Bloom, predict that such policies may ultimately backfire. Bloom has warned that a talent exodus could force companies to abandon strict return-to-office rules in the coming year.
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Enforced office mandates drive workers to seek flexible roles

The UK faces an imminent threat of crippling cyber attacks from Russia, capable of “turning out the lights for millions,” a senior minister will warn at a NATO cyber defence conference in London.
Pat McFadden, the Chancellor of the Duchy of Lancaster, is expected to highlight Russia’s readiness to wage cyber warfare targeting critical infrastructure and businesses, urging firms to bolster their defences.
Mr McFadden will describe Russia as “exceptionally aggressive and reckless” in the cyber domain, seeking to destabilise nations that support Ukraine. He will caution that Russian attacks could shut down power grids and disrupt the UK economy, emphasising that both the state and independent cybercriminals aligned with the Kremlin are actively widening their targets to NATO members.
“Russia’s cyber capabilities can be as destabilising and debilitating as military action,” Mr McFadden will state, adding that hackers have already targeted the UK’s energy networks, telecoms, and democratic institutions. Recent NHS hospital hacks, thought to involve Russian groups, postponed over 800 operations, including critical cancer treatments.
Mr McFadden will also underline the growing sophistication of “hacktivist” groups acting independently of the Kremlin but with tacit approval. He will cite attacks on local councils and NATO allies as examples of how these actors are expanding their reach and wreaking havoc.
“These groups are unpredictable and capable of inflicting significant damage with a single miscalculation,” he will say. “Putin is happy to exploit any gaps in our defences, targeting British businesses and infrastructure.”
The government is preparing the Cyber Security and Resilience Bill to strengthen the UK’s cyber defences. The proposed legislation will empower regulators, compel businesses to report attacks, and require essential infrastructure providers to secure their supply chains. Ministers are also engaging with business leaders to improve cyber defences amid estimates that cybercrime costs the UK £27 billion annually.
The warning comes as tensions escalate following Russia’s threats to target nations supplying Ukraine with weaponry, including the UK’s Storm Shadow missiles. Last month, Russia tested an intermediate-range missile and hinted it could retaliate against Western nations, adding further urgency to the need for robust cyber protections.
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Putin poised to unleash cyber attacks on UK, minister warns

SMEs across the UK are preparing for significant financial challenges in 2025, with new research indicating an expected average revenue loss of £138,000 per business.
According to a study conducted by freelancer platform Fiverr, a quarter of businesses anticipate losses exceeding £100,000 due to the financial pressures stemming from Labour’s Autumn Budget.
Despite a modest interest rate cut by the Bank of England, Labour’s proposed £40 billion tax hike—half of which will directly impact businesses—has intensified concerns among SMEs as they look ahead to the coming year. Key issues troubling business leaders include inflation and rising costs (50%), economic instability within the UK (45%), and the broader implications of Labour’s tax policies (37%).
Revenue Challenges and Workforce Reductions
The recent Budget announcement has sparked widespread apprehension among UK businesses, with over half (54%) citing the current political climate as a primary driver of operational instability. An overwhelming 83% believe that proposed changes to Labour’s budget policies and the increase in the national minimum wage will negatively affect their revenue.
Alarmingly, 76% of business leaders foresee Labour’s tax policies adversely impacting workers’ pay, while 60% are considering headcount reductions and hiring freezes over the next year. These anticipated workforce adjustments reflect the mounting financial strain on SMEs amid the new fiscal measures.
Mixed Feelings on Workplace Trends
Despite these challenges, some optimism persists among business leaders. The data reveals that 62% believe Labour’s focus on improving workers’ rights could have a positive effect on employee mental health, offering a glimmer of hope in an otherwise turbulent outlook.
UK businesses are also open to adopting new workplace trends. Half of the surveyed leaders expressed willingness to trial a four-day work week, though 24% doubt its success under Labour’s governance. Additionally, 61% support a return-to-office (RTO) model of at least three days per week, citing improved productivity (61%), enhanced collaboration (40%), and better professional development opportunities (38%) as key benefits.
However, leaders also recognize potential downsides to mandating office attendance. Half believe that enforcing RTO policies could harm employee retention, and 26% fear it may create friction and lower workplace morale. Nearly a quarter are concerned about the impact on employees’ work-life balance and the possibility of increased operational costs associated with the shift.
Focus on AI and Tech Roles in Hiring Plans
Despite economic pressures, over half (55%) of UK businesses plan to expand their workforce in 2025, while 33% intend to maintain current staff levels. Hiring priorities indicate a surge in digital innovation, with nearly half (48%) focusing on IT and tech roles, and 24% targeting positions specific to artificial intelligence (AI).
Fiverr’s 2024 UK Future Workforce Index reveals that businesses are willing to offer an average of 45% higher wages to candidates with AI expertise, with over 80% of leaders prepared to pay a premium for these skills. In contrast, demand for creative and design roles remains subdued, with only 19% of businesses planning hires in this area.
Advancements in AI are influencing hiring decisions, with 43% of businesses citing this as a reason to scale back recruitment. Regulatory changes (34%) and budget constraints driven by the ongoing cost of living crisis (33%) are also significant factors.
Freelancers Key to Bridging Skills Gaps
Freelancers are emerging as critical contributors to the workforce, with 55% of businesses already integrating freelancers into their teams. Nearly a third (32%) are leveraging freelance expertise in AI. Looking ahead, half of UK business leaders view freelancers as essential to achieving their goals in 2025, and 45% plan to increase their reliance on freelancers in the coming year.
Hila Harel, Director of International Growth at Fiverr, commented: “As the UK navigates upcoming challenges, it’s encouraging to see business leaders increasingly turning to freelancers to help tackle economic instability and evolving workplace trends. With the four-day work week and return-to-office policies gaining momentum, it’s clear that workplace flexibility is a top priority. As 2025 approaches, we look forward to seeing freelancers play a greater role in supporting businesses—not just in weathering uncertainty, but also in driving growth and innovation amid ongoing challenges.”
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UK SMEs brace for average revenue loss of £138,000 in 2025 amid Labour’s budget measures

Socium, an all-in-one HR management platform based in French-speaking Africa, has secured a $5 million funding round to expand its services and become the go-to HR solution for mid-sized companies in the region.
This funding follows a previous $1.1 million round in August 2022, highlighting the company’s rapid growth despite a broader slowdown in African tech funding.
The latest investment was led by Breega through its Africa Seed fund, with participation from international investors including Partech, Chui Ventures, Orange Digital Ventures, Sonatel, Outlierz Ventures, Super Capital, and DNA. Prominent African business angels such as Mossadeck Bally (founder of the Azalaï group), Hassan Bourgi (founder of Djamo), and Babacar Seck (founder of Askya Investment Partners) also contributed to the round, underscoring growing support for local startups.
Simplifying HR Management in Francophone Africa
Co-founded in 2021 by École Polytechnique alumni Samba Lo and Serigne Seye, Socium addresses the critical need for digital HR solutions in Francophone Africa, where over 90% of mid-sized companies lack an HR management system. This gap often results in time-consuming manual processes and increased operational, legal, and financial risks.
Initially launched with a recruitment module, Socium has expanded its offerings to provide a comprehensive HR management platform. The platform now includes recruitment, talent administration, performance management, and payroll processing, tailored specifically for the unique needs of African companies.
“The solution’s adoption across more than 15 African countries speaks to its commitment to meet the needs of local businesses by optimizing HR operations,” said Ben Marrel, co-founder and CEO of Breega. “We are thrilled to continue supporting Socium and its outstanding founders, Samba and Serigne, in their mission to become the leading HR solution for medium-sized companies in Francophone Africa.”
A Growing Market and Future Plans
The potential market for HR software in Francophone Africa is estimated at €8.5 billion, targeting companies with more than 50 employees. This market is expected to grow at a rate of 10-12% per year until 2030. Socium is already supporting over 100 clients across more than 10 industries and 15 countries, including high-profile names like Auchan, Orange, EY, L’Archer Capital, and Djamo.
With the new funding, Socium plans to strengthen its operations in key markets such as Senegal, Côte d’Ivoire, and Cameroon, while accelerating growth into the Democratic Republic of Congo (DRC) and Morocco. The company will also enhance its platform with advanced AI features, such as payroll discrepancy detection, and integrate with public services to automate tax and regulatory filings.
“This investment in Socium reflects our commitment to sustainable development and innovation in Africa,” commented business angel and founder of Azalaï Hotels, Mossadeck Bally. “By supporting this innovative HR solution, we are helping to transform the future of work, nurture local talent, and boost the competitiveness of African companies.”
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Socium raises $5M to become leading HR solution in Francophone Africa

Gary Lineker, the former England footballer turned broadcaster, has strategically placed his television production company, Goalhanger Films, into voluntary liquidation ahead of upcoming capital gains tax rises.
Co-owned with former ITV controller Tony Pastor, the company reported net assets exceeding £440,000 in its last published accounts.
The decision comes as the UK government announced in the recent Budget that capital gains tax rates will increase from 10% to 14% starting in April, with a further rise to 18% in 2025. By liquidating the company now, Lineker and Pastor can benefit from the current lower tax rate on distributions from the company’s assets.
Tony Pastor confirmed that Goalhanger Films is being “mothballed,” allowing the duo to focus on their rapidly growing venture, Goalhanger Podcasts. The podcast platform hosts popular series such as The Rest Is History and The Rest Is Football, and reported net assets close to £591,000 earlier this year.
Lineker’s move aligns with the practice of Members’ Voluntary Liquidation (MVL), a process that enables solvent companies to wind up operations in a tax-efficient manner. An MVL allows business owners with significant retained earnings to treat distributed funds as capital gains rather than income, potentially resulting in substantial tax savings under the Business Asset Disposal Relief framework.
Originally launched in 2014, Goalhanger Films produced high-profile sports documentaries featuring stars like Mohamed Salah and Serena Williams. However, the shift towards the more successful podcast division reflects Lineker’s adaptation to changing market dynamics.
Despite stepping down from hosting Match of the Day after a 26-year tenure, Lineker remains a prominent figure at the BBC, with contracts to present coverage of the FA Cup and the 2026 World Cup.
Lessons for Business Owners
Lineker’s financial move offers insights for entrepreneurs and company directors:
Act Early: Anticipating tax changes and making timely decisions can maximize financial benefits.
Consider MVL: For solvent businesses planning to close, an MVL can be an effective tool to unlock value efficiently.
Adapt to Growth: Shifting focus to more successful ventures ensures resources are allocated to areas with the greatest potential.
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Gary Lineker liquidates Goalhanger Films ahead of capital gains tax increase