Month: November 2024

British pension savers are poised to gain from Donald Trump’s election victory, as the former US president’s pro-business stance boosts stock markets, particularly in the United States.
Andrew Evans, group chief executive of Smart Pension, a leading UK retirement business, highlighted the positive impact of rising US markets on UK pensions with investments in American assets.
Evans said, “American markets have been incredibly bullish since Trump’s victory, benefiting UK pension savers with funds tied to US assets, whether they realise it or not.”
Smart Pension, which manages retirement savings for 1.4 million people, has 52% of its main fund invested in the US. Following Trump’s election, the S&P 500 surged by 5% to a record high of 6,001.35 points. Although it has since dipped slightly to 5,863.69 points, the index remains 2.6% higher than its pre-election level and up 12.8% since August. Similarly, the Nasdaq Composite Index hit record highs and is still up 2.6% compared to November 4.
Despite concerns over Trump’s trade policies, which some economists warn could disrupt global markets and fuel inflation, investors remain optimistic about his corporate tax cut promises and pro-growth agenda. Evans noted, “Trump’s policies promoting American growth and company assets will benefit global pension funds.”
Rachel Reeves pushes for UK pension reform
Meanwhile, in the UK, Chancellor Rachel Reeves has proposed a significant overhaul of workplace pensions, aiming to pool smaller pots into “megafunds” worth £80 billion. These larger funds are expected to have the capacity to invest in a broader range of assets, driving growth and returns for savers.
Evans welcomed the initiative, which aligns with Smart Pension’s mission to transform retirement savings. The company currently allocates 6% of its master fund to private markets and plans to increase this investment.
However, Evans called for further government incentives to stimulate domestic growth, particularly in light of the Chancellor’s £41.5 billion in tax hikes outlined in the Budget. “Promoting growth while imposing significant tax increases is a challenging balance. Additional structural measures are needed to support investment in the UK,” he said.
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British pension savers set to benefit from Trump’s pro-business policies

Several countries, including Italy, Abu Dhabi, and Cyprus, are actively seeking to attract wealthy individuals from the UK following the government’s decision to abolish the non-domiciled (non-dom) tax status.
Events are being held across London to encourage the UK’s estimated 67,000 non-doms—UK residents whose permanent home is outside the country—to relocate in the wake of Labour’s election victory and subsequent Budget.
Next month, a Cyprus government agency will co-host an event at the London Stock Exchange aimed at persuading high-net-worth individuals to move. Similarly, the Abu Dhabi Investment Office recently hosted an event at London’s Jumeirah hotel to entice affluent Britons. Italian law firm Chiomenti sponsored a Henley & Partners event titled “Non-Doms: ‘Should I Stay or Should I Go?’” to discuss relocation options.
Nick Candy, a British property developer who attended the Abu Dhabi event, expressed concerns about a potential exodus of talent. “We’re going to have the largest brain drain of talent that this country has ever seen. And they won’t come running back,” he told Bloomberg.
Financial advisers report a surge in wealthy clients preparing to leave the UK after Labour confirmed plans to abolish the non-dom regime, which offers significant tax benefits for expatriates. David Lesperance, an international tax adviser, noted he is “very busy” assisting non-doms considering relocation. Tim Stovold, a partner at accountancy firm Moore Kingston Smith, said more people are exploring options in countries like Spain and Portugal, which offer attractive tax regimes.
Currently, non-doms residing in the UK are not required to pay local taxes on overseas earnings for up to 15 years. The government plans to abolish this regime next April, replacing it with a time-limited grace period.
The special tax status has been a point of contention, as it predominantly benefits wealthy foreigners. Supporters argue that it keeps affluent individuals in the UK, contributing to the economy through their spending.
Prominent figures are already taking action. David Sullivan, chairman of West Ham United, blamed the crackdown on non-doms for his decision to sell his London mansion at a loss. Charlie Mullins, founder of Pimlico Plumbers, has also put his £12 million London penthouse up for sale to avoid increased taxation, stating he is ready to have “no assets in the UK whatsoever.”
According to the London School of Economics, one in five bankers were reported to be non-doms in 2022, and four in ten individuals earning £5 million or more in 2018 had claimed non-dom status at some point.
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Italy, Abu Dhabi, and Cyprus Court Britain’s Wealthy Amid Non-Dom Tax Changes

A recent study by venture capital firm Index Ventures, which surveyed 600 European tech start-ups, reveals that the majority do not believe the adoption of artificial intelligence (AI) tools will lead to job losses.
Half of the companies surveyed view investment in AI as an opportunity to hire more staff, while an additional 29% expect to maintain their current workforce levels.
While some start-ups acknowledge that certain roles in software development, marketing, and customer service may be reduced, they anticipate increased recruitment in software engineering and in developing new products and services. Hannah Seal, a partner at Index Ventures, noted that this optimistic outlook aligns with her experience working with high-growth companies. She explained that AI tools enhance employee productivity rather than replace roles. For instance, using AI assistants like GitHub’s Copilot can make engineers twice as efficient, allowing companies to reallocate resources to build more and better products without cutting staff.
The study also found that most employees are proactively teaching themselves to use AI tools, dedicating an average of four hours per week to learn new technologies. Only 29% have received employer-initiated training. Employees skilled in AI-related areas are already earning, on average, 10% more than their peers, indicating the value placed on these competencies.
Seal highlighted that some AI-powered services are addressing labor shortages in specific industries, thereby supporting existing roles. She cited DataSnipper, a Dutch start-up that developed software for auditors, as an example. By automating manual data reconciliation—the aspect of the job that is often considered tedious—AI allows auditors to focus more on client advisory work, making the profession more appealing to graduates and helping to attract new talent to the field.
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AI Tools Enhance Productivity Without Reducing Jobs, Say European Start-Ups

Ferguson Whisky Limited, a Glasgow-based company specialising in rare whisky investment opportunities, has secured a £450,000 funding package from Virgin Money, backed by UK Export Finance (UKEF).
The funding will support the purchase of whisky stock, enabling the company to expand operations and meet growing international demand.
Founded in 2021 by CEO David Ferguson, the company aims to make the world of rare whisky collecting more accessible. Ferguson Whisky offers a range of services, including investment in new make whisky or aged stock, and provides support through the bottling process. The company has established strong relationships with major Scottish distillers and has partnerships with Brindiamo Group in the US bourbon market and Bravo Whisky Golf in the luxury travel sector. These connections allow Ferguson Whisky to offer rare casks and organize exclusive experiences such as distillery tours and bespoke whisky events.
Virgin Money’s Commercial and Trade Finance teams collaborated with UKEF to structure a deal tailored to Ferguson Whisky’s needs. UKEF supported the bank by issuing a General Export Facility (GEF) loan guarantee, covering 80% of the financing and enabling Virgin Money to complete the transaction. The GEF is a flexible government-supported scheme designed to help UK export businesses, particularly SMEs, access working capital facilities to improve cash flow and accelerate international trade growth.
David Ferguson, Founder and CEO of Ferguson Whisky Limited, said: “We are an independent blender and bottler providing end-to-end whisky services from cask to bottle for customers all over the world. The support from Virgin Money, with backing from UK Export Finance, will ensure that we can continue to accelerate business growth internationally and attract more whisky consumers to visit Scotland.”
Craig Wilson, Head of FX Sales & Trade Finance at Virgin Money, added: “We are delighted to be working with David and his team to support their rapid and successful business growth. Their business needs a bank that can truly support international trading, and we are honored that they selected Virgin Money as their banking partner.”
Carol Harvey, UKEF Export Finance Manager for Scotland, concluded: “This deal is a great example of how UK Export Finance can help support small businesses in Scotland. With the Scottish Whisky Awards being held in Glasgow at the end of this month, I couldn’t think of a more apt opportunity to toast to Ferguson Whisky’s success.”
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Ferguson Whisky Secures £450,000 Funding from Virgin Money to Expand Global Reach

Virtue Drinks, the UK’s fastest-growing clean energy drink brand, has announced the successful closure of a £2 million investment round.
This latest funding brings the company’s total investment to over £5 million. Notable investors in this round include James Watt, co-founder of BrewDog—Europe’s largest craft beer brand—and Eberechi Eze, Premier League footballer and England international.
James Watt will take on the role of strategic advisor, providing guidance to Virtue’s founder and CEO, Rahi Daneshmand, on scaling the business globally. Eberechi Eze will actively participate in Virtue’s marketing strategy, aiming to amplify the brand’s presence following the investment. They join existing investor Chris Smalling, former England and Manchester United footballer, along with a group of strategic angel investors.
The infusion of capital will support Virtue’s strategic marketing efforts, global distribution expansion, and team growth. The company plans to enhance brand awareness in the UK, Europe, and beyond, capitalizing on its current presence in over 5,000 stores across 20 countries. Key stockists include Waitrose, Whole Foods Market, Ocado, Morrisons, Motor Fuel Group, Casino, Carrefour, and Spinneys.
Founded in 2016, Virtue offers clean energy drinks made with all-natural ingredients, zero sugar, and zero calories. The beverages are powered by yerba mate, an adaptogen rich in essential vitamins, minerals, amino acids, and antioxidants. Available in three flavours—Tropical, Peach & Raspberry, and Strawberry & Lime—each can contains 80 milligrams of natural caffeine, equivalent to a cup of coffee or traditional energy drink.
Virtue’s products aim to provide a sustained energy boost that enhances mental focus and physical performance without the crash or jitters associated with traditional energy drinks and coffee. The brand is certified carbon neutral and vegan, aligning with growing consumer demand for healthier and more sustainable options.
Rahi Daneshmand, Founder and CEO of Virtue, stated: “We are really excited to partner with Eberechi Eze and James Watt to build the leading clean energy drink brand globally. Their belief in our vision and commitment to our growth emphasises the positive impact we plan to achieve together. As the first all-natural energy drink with zero sugar and zero calories, Virtue is well-positioned to lead the way for clean energy. These partnerships mark the start of an exciting next chapter for Virtue, and we can’t wait for even more people to enjoy our clean energy drinks.”
James Watt added:”It is seldom that I see a drinks brand that genuinely excites me. In Virtue, I found an amazing product led by a brilliant entrepreneur. I am delighted to now be helping them on their growth journey.”
Eberechi Eze concluded: “Virtue is more than just an energy drink to me; it’s a brand I truly believe in. Its clean energy aligns with my lifestyle on and off the pitch. I am excited to be part of a brand that is all about a natural, healthier way to energise.”
With the UK energy drinks market valued at £3.4 billion and expected to grow at a compound annual growth rate (CAGR) of 5.20%, Virtue aims to establish clean energy drinks as a major category within the industry.
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Virtue Drinks Secures £2 Million Investment from BrewDog Co-Founder and England Footballer

Nish Kankiwala, chief executive of the John Lewis Partnership, has accused Chancellor Rachel Reeves of implementing a “two-handed” tax grab on retailers, joining a growing backlash against the recent Budget.
Kankiwala stated that John Lewis faces increased employment costs and higher business rates following the Budget, which could hinder the retailer’s turnaround efforts. “That seems to be sort of [a] two-handed grab, and that’s unhelpful,” he told the Financial Times.
The partnership, which operates John Lewis department stores and Waitrose supermarkets, anticipates spending tens of millions of pounds extra on staff costs after the Chancellor announced an increase in the employers’ National Insurance rate. In the Budget, Ms. Reeves stated that employers’ National Insurance contributions would rise from 13.8% to 15% in April, while also lowering the threshold at which contributions are paid.
Additionally, the Treasury has delayed a planned overhaul of the business rates system until 2026, despite previous pledges to reform how companies are taxed on their properties to support retailers. This delay means that many retailers, including John Lewis, will face higher business rates bills for at least another year.
Kankiwala commented: “If they could delay the National Insurance [changes], but also if they could fundamentally bring forward a radical reshaping of business rates, I think it will make a massive difference—not just for small and medium enterprises, but I think for retail generally. It’s very important.”
The criticism from John Lewis comes after retailers expressed frustration at being blindsided by the changes, having believed that business rates reform would occur sooner. Simon Roberts, chief executive of Sainsbury’s, recently stated that the supermarket supported the government’s employment reforms based on a “clear commitment” from ministers to urgently address business rates. “We need business rates reform in order to balance the scales,” he said.
Amid growing tension between the Treasury and retailers, over 80 chief executives wrote to Ms. Reeves last weekend, warning that the sector faces £7 billion in increased costs, making job losses and price rises inevitable.
Kankiwala said the John Lewis Partnership would attempt to avoid raising prices. “The last thing we need is a resurgence of inflation, because we just got that under control, and inflation is not good for anybody,” he added.
In response, Treasury officials reportedly reached out to retailers last week in an effort to ease concerns after learning that companies were planning a public letter criticizing the Budget decisions. The Prime Minister’s spokesman stated they were not aware of any attempts to discourage businesses from signing a letter, adding: “Obviously you’ve seen vast waves of reaction to the Budget, as you do with all fiscal events, and this is no different.”
The Treasury has defended its decisions, arguing that “difficult choices” were necessary in the Budget. A Treasury spokesperson said earlier this week: “By doing this, more than half of employers will either see a cut or no change in their National Insurance bills. There will be £22.6 billion more for the NHS, and workers’ payslips will be protected from higher tax. This government is committed to delivering economic growth by boosting investment and rebuilding Britain.”
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John Lewis CEO criticises Rachel Reeves over ‘two-handed’ tax increase

HM Revenue & Customs (HMRC) has nearly doubled the amount paid to individuals providing tip-offs about suspected tax evasion, disbursing almost £1 million (£978,256) in the 2023/24 financial year compared to £508,500 the previous year.
The increase comes amid growing pressure to reduce the UK’s £39.8 billion tax gap—the difference between the tax that should be collected and what is actually received.
According to data obtained under the Freedom of Information Act by accountancy firm Price Bailey, HMRC received 151,763 anonymous tip-offs via its fraud hotline in 2023/24, slightly fewer than the 157,270 reports in 2022/23 but still the second-highest in seven years.
Andrew Park, Tax Investigations Partner at Price Bailey, described the payouts as “paltry” when measured against the billions lost to tax fraud annually. He suggested that significantly increasing rewards could incentivize more individuals to come forward with high-quality information. “A transparent system in which the reward is proportionate to the amount of tax recovered would go a long way to encouraging big-ticket tip-offs,” Park said.
Price Bailey highlighted the contrast with the United States, where the Internal Revenue Service (IRS) offers substantially larger rewards. In the most recent financial year, the IRS paid out $89 million to 121 whistleblowers, leading to the recovery of $338 million in taxes—averaging $735,537 per whistleblower.
Park noted that the UK system is less transparent and that awards are discretionary and not linked to the amount of tax recovered. This lack of significant financial incentive, coupled with the potential risk to employment for whistleblowers—many of whom are employees of the companies they report—may deter individuals from reporting major tax fraud.
He also pointed out that the lengthy process of resolving tax disputes serves as an additional disincentive. “Anything HMRC can do to make its reporting system more accessible and transparent would be welcomed,” Park added.
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HMRC doubles payouts to tax whistleblowers amid calls for larger rewards

A growing scandal over mis-sold motor finance could leave lenders facing compensation bills of up to £30 billion, according to a warning from leading credit rating agency Moody’s.
The estimate is the highest so far and raises concerns that the issue could mirror the payment protection insurance (PPI) debacle, which ultimately cost firms around £50 billion in redress.
While major banks like Lloyds Banking Group, Barclays, and Santander UK may be able to absorb the impact, smaller and more specialised lenders—including Close Brothers, Aldermore, Investec, and the financing arms of Ford and Volkswagen—could suffer a “more significant hit to earnings and capitalisation,” Moody’s cautioned.
The motor finance industry has been under increased pressure since the Financial Conduct Authority (FCA) banned discretionary commissions in car loan deals in early 2021. The regulator was concerned that such commissions—paid by lenders to car dealers or credit brokers for arranging finance—were unfair because they incentivised higher interest rates for borrowers.
Consumer complaints about these payments have escalated, prompting the FCA to announce a wide-ranging review in January, examining discretionary commissions dating back to April 2007. This ongoing inquiry has unsettled the industry, fuelling speculation that the watchdog may compel car loan providers to compensate affected borrowers.
In July, the FCA indicated that the likelihood of requiring compensation was “more likely than when we started our review.” Moody’s estimates that potential redress costs for the industry could range between £8 billion and £21 billion.
The situation could worsen if a recent Court of Appeal ruling is upheld. Last month, judges determined that any commission not properly disclosed to a borrower was unlawful, making lenders liable to repay the money to consumers. This ruling applies to all types of commission, not just the discretionary arrangements under the FCA’s focus, potentially adding a further £9 billion to the compensation bill, according to Moody’s.
By setting a higher standard for commission disclosure, the court has opened the door to a new wave of consumer complaints. Close Brothers and FirstRand (owner of Aldermore), the lenders central to the ruling, plan to appeal to the Supreme Court. Meanwhile, the judgment has thrown the industry into turmoil, with some lenders temporarily halting their car loan operations to ensure compliance.
Santander UK delayed its third-quarter results to assess the impact of the judgment and is expected to release its figures on Wednesday.
There is uncertainty regarding the scope of the judgment, with speculation that it could extend to commissions paid in other types of consumer finance. Moody’s warned that if this is the case, it would “result in a significantly broader and more negative impact” on many lenders.
Most banks and the finance arms of car manufacturers have yet to set aside funds to cover potential motor finance compensation. Lloyds Banking Group is one of the few that have made provisions, earmarking £450 million.
As the industry grapples with the potential financial fallout, comparisons to the PPI scandal have intensified. The scale of the possible compensation payments raises serious concerns about the stability of smaller lenders and the broader impact on the UK’s financial sector.
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Moody’s warns car finance scandal could cost lenders £30bn

Researchers at the University of Richmond in Virginia have discovered that rats can be trained to drive miniature cars and appear to enjoy the experience.
The study, led by Professor Kelly Lambert, found that not only can rats learn to operate tiny vehicles, but they also exhibit signs of excitement and anticipation when given the opportunity to drive.
In the initial 2019 study, rats were taught to steer a car made from a plastic cereal container by grasping wires that propelled the vehicle forward. The rodents quickly mastered the skill, steering with surprising precision to reach a piece of Froot Loop cereal as a reward.
Building on these findings, the researchers developed improved “rat-operated vehicles” equipped with rat-proof wiring, durable tires, and ergonomic driving levers. They observed that the rats showed intense motivation during training sessions, often jumping into the car and initiating the driving mechanism before the vehicle began moving.
Professor Lambert noted that the driving-trained rats eagerly approached the side of their cage during testing times, similar to how a dog might react when anticipating a walk. This behavior led the team to question whether the rats were motivated solely by the food reward or if they found the driving experience itself rewarding.
To investigate further, the researchers offered the rats a choice: they could either take a short, direct path on foot to obtain the treat or drive the car on a longer route, delaying their reward. Surprisingly, two out of the three rats chose to drive, suggesting they derived pleasure from both the journey and the destination.
Physical signs of positive anticipation were also observed. One rat held its tail upright with a crook at the end, resembling an old-fashioned umbrella handle—a posture linked to the release of dopamine, a neurotransmitter associated with motivation and reward.
Professor Lambert concluded that these findings highlight the importance of stimulating environments and novel experiences for cognitive development. “Anticipating positive experiences helps drive a persistence to keep searching for life’s rewards,” she said. “Planning, anticipating, and enjoying the ride may be key to a healthy brain.”
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Rats learn to drive miniature cars and show enjoyment, study finds