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HMRC has reported a significant 21% drop in research and development (R&D) tax credit claims for the 2022/23 tax year, with the number of claims falling to 65,690 from 83,240 in the previous year.
Nikhil Oza, Partner at UHY Hacker Young, attributes the decline to HMRC’s increasingly stringent claim processing, which is discouraging small businesses from applying for tax relief they are entitled to.
Oza criticised the complex barriers now in place, including a time-consuming additional information form and the need for first-time claimants to notify HMRC in advance, which have led to many businesses missing out on valuable tax relief. He warned that HMRC’s overly cautious approach to weeding out fraudulent claims is hampering legitimate growth businesses and stifling innovation.
Oza emphasised the importance of ensuring that tax relief schemes for R&D are processed efficiently to encourage UK businesses to continue innovating and driving economic growth. He cautioned against excessive red tape, which risks further hindering the UK’s already lagging R&D spend compared to international competitors.
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HMRC crackdown causes 21% drop in R&D tax credit claims, stifling innovation

HMRC should implement standardised tax regulations for gifts to ensure they apply equally to all taxpayers, including politicians, according to tax and advisory firm Blick Rothenberg.
Robert Salter, a Director at the firm, has called for greater clarity and consistency in gift taxation, noting that while media personalities and social influencers are taxed on gifts, politicians often receive gifts tax-free.
Salter pointed out that gifts given to politicians, sometimes job-related, are not treated as taxable income by HMRC, despite similar gifts being subject to tax in other sectors. He emphasised that while current laws are complex, neither donors nor recipients are breaking any laws if gifts are not declared as taxable income.
Salter argues that applying consistent rules across all industries would simplify the current system, which requires case-by-case analysis. He proposed that HMRC should introduce clear, standardised rules, while also considering a sensible de minimis threshold (e.g., gifts exceeding £1,000 in a tax year) to prevent minor gifts from triggering tax liabilities.
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HMRC urged to standardise gift tax rules across all industries, including politicians

Meta Platforms has paused the launch of its latest artificial intelligence technology in Britain and the European Union due to concerns over fragmented AI regulations.
While the new AI products, including smart glasses and a digital assistant, will be rolled out in the US, Canada, Australia, and New Zealand, Europe faces delays.
Meta cited uncertainty around the data that can be used to train AI models as the reason for the stalled launch. An open letter from 59 technology companies, including Meta, warned that Europe risks falling behind in the AI race due to inconsistent regulation. The signatories, which also included Ericsson and Spotify, argued that Europe has become less competitive compared to other regions.
Meta AI is expected to launch in the UK ahead of the EU as the company proceeds with plans to use public content shared by adults on Facebook and Instagram to train its AI models. However, the Information Commissioner’s Office has raised questions about the data usage, leading Meta to simplify the process for users to opt out of data processing. In the EU, regulators have said Meta’s plans do not meet privacy and transparency requirements.
Meta CEO Mark Zuckerberg revealed at the company’s Connect conference that Meta AI, the company’s rival to OpenAI’s ChatGPT, already has 400 million monthly users, despite not being available in Europe. He also introduced the first prototype of Meta’s augmented-reality glasses, Orion.
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Meta delays AI launch in UK and EU amid regulatory uncertainty

Private schools in Wales could lose their charitable status from April 2024 under new proposals set out by the Welsh Labour government.
The move would require fee-paying schools to pay domestic rates, a change expected to bring in an additional £1.3 million per year. This comes on top of UK-wide plans to impose VAT on private school fees, which will also affect Welsh schools.
Welsh finance secretary, Mark Drakeford, argued that the proposed changes would bring Wales in line with Scotland, where private schools lost charitable status in 2022, and would align with similar moves planned in England. Currently, 17 of the 83 private schools in Wales receive charitable non-domestic rates relief, which Drakeford believes creates an unfair advantage.
“We believe that independent schools with charitable status in Wales should be treated in the same way as those which are not charities,” Drakeford said, justifying the proposal as a way to redirect funds into local services.
However, concerns have been raised that these tax changes, including Sir Keir Starmer’s planned VAT on private school fees, could lead to a significant drop in private school enrolment. A recent Saltus Wealth Index report found that nearly 23% of parents might withdraw their children from private education, potentially shifting 140,000 children into state schools across England and Wales. Critics argue this would overwhelm the public education system and result in higher costs for taxpayers.
Tom Giffard, Welsh Conservative shadow education minister, criticised the proposals as short-sighted. He warned that pushing children into an already strained state school system would increase class sizes and place additional pressure on teaching staff.
The Welsh government’s consultation on removing charitable status for private schools will run for 12 weeks until December 16.
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Drakeford plans new tax hit on private schools in Wales

Andy Burnham, Mayor of Greater Manchester, has warned that the North risks facing “Armageddon” unless the HS2 high-speed rail link from Birmingham to Manchester is completed.
He urged Labour leader Sir Keir Starmer to reverse the previous government’s decision to scrap the northern leg of the project, calling for a revised, more affordable version of the original plan.
Speaking at the Labour Party Conference, Burnham explained that terminating HS2 in Birmingham would worsen rail services in the North, forcing slower trains and fewer seats. He argued that if HS2 trains run on the West Coast Main Line (WCML), which lacks the capacity for double-length carriages and high-speed curves, it would result in a “worse train service than we’ve currently got.”
Originally intended to connect London and Manchester, HS2 was scaled back in 2023 under Prime Minister Rishi Sunak to save £36 billion, sparking outrage across the North. Burnham is now pushing for a lower-cost alternative, the Midlands-Northwest Rail Link, which would connect Lichfield to High Legh, near Warrington, and be backed by private investment.
Burnham said this project would resolve regional transport issues at a fraction of HS2’s original cost. He emphasised that Britain risks “sleepwalking toward a transport nightmare” unless investment is made to modernise rail infrastructure, particularly as the WCML and M6 motorway reach capacity.
He also expressed support for extending HS2 from Old Oak Common into London’s Euston Station, stating that “people in the North of England should be able to get into the heart of our capital city.”
Burnham’s comments come as the National Audit Office raised concerns over capacity issues following the cancellation of the northern leg of HS2. He warned that upgrading the WCML alone would be highly disruptive and insufficient to meet future demands.
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North faces ‘Armageddon’ without HS2 links, warns Andy Burnham

Kiki McDonough, the jeweller favoured by Princess Diana, Kate Middleton, and Queen Camilla, has slashed prices by 20% in a bid to offset the effects of the so-called “tourist tax”.
This summer, McDonough offered the discount to American and Australian shoppers, aiming to alleviate the impact of the 2020 removal of VAT-free shopping for tourists, a move introduced by then-Chancellor Rishi Sunak.
The luxury industry has been vocal about the negative impact of the policy, with McDonough noting a significant drop in American tourists, who form her second-largest market. The 20% discount helped attract foreign customers back to her boutique in London’s Sloane Square. “It’s amazing how many people were then brought back [with the discount],” she said.
The removal of VAT-free shopping has caused tourist spending to shift towards other European countries such as France and Spain, while the UK has seen a decline. McDonough argues that luxury shopping is an essential draw for tourists, with wider economic benefits. “Luxury is not seen as important in this country,” she said, highlighting the ripple effect it has on other sectors, including hospitality and tourism.
While the Office for Budget Responsibility estimates that scrapping tax-free shopping will save £540 million over the next two years, McDonough believes Labour should reconsider reinstating the perk to boost economic growth. She emphasised that it is not just about luxury goods but the broader experience and spending associated with tourism.
McDonough, who founded her business in the 1980s, also expressed concerns about the government’s focus on large businesses at the expense of smaller enterprises like hers. She called for reduced red tape and more support for young entrepreneurs, urging politicians to foster an environment that encourages risk-taking and business growth.
A Treasury spokesperson reiterated that the government faces tough decisions in the upcoming budget, as it aims to address a £22 billion hole in the public finances left by the previous administration.
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Royal jeweller cuts prices by 20% to counter impact of tourist tax

Prime Minister Sir Keir Starmer is set to reassure the nation that there is “light at the end of this tunnel,” urging the public to endure short-term financial hardships in exchange for long-term prosperity.
In his first speech to the Labour conference since taking office, he will outline the need for tough economic decisions to address the “black hole” in public finances left by the Conservatives, stating that tax cuts are not on the horizon until these issues are resolved.
Looking to the future, Starmer will pledge that stabilising the economy will deliver tangible benefits over the next five years, including higher growth, reduced NHS waiting lists, stronger borders, and a cleaner energy system. This positive message is aimed at dispelling criticism, even from within his own Cabinet, that his rhetoric since becoming Prime Minister has been too pessimistic.
‘Short-term pain for long-term gain’
Starmer’s speech comes as the government faces backlash over the removal of winter fuel payments for 10 million pensioners, a move that prompted boos at the Labour conference. He will acknowledge the difficulty of the current situation but argue that the sacrifices made today will ultimately lead to a more secure and prosperous future for the country.
“The politics of national renewal are collective,” Starmer is expected to say. “This will be tough in the short term, but in the long term, it’s the right thing to do for our country. If we take tough long-term decisions now—higher economic growth, reduced hospital waiting lists, safer streets, stronger borders, clean British energy—we will reach that light at the end of this tunnel much more quickly.”
His speech is likely to set the stage for the Labour government’s first budget on October 30, where tax increases and spending cuts are expected, echoing earlier warnings from Chancellor Rachel Reeves. While Labour has ruled out raising income tax, National Insurance, VAT, or Corporation Tax, other areas such as Capital Gains Tax and inheritance tax may see adjustments.
Tackling the ‘financial black hole’
Starmer will highlight the £22 billion fiscal deficit inherited from the previous government, warning that financial prudence is essential to prevent further damage to the economy. “It’s not just the financial black hole left by the Tories,” he will say, “but also our decimated public services. Just because we want low taxes and good public services doesn’t mean we can ignore the need to properly fund policies.”
The Prime Minister’s remarks are expected to include a defence of Labour’s economic strategy, positioning it as the only responsible path forward after years of what he describes as Conservative economic mismanagement. This comes as Starmer faces declining approval ratings and disillusionment among voters, with some accusing him of focusing too heavily on the mistakes of the previous government rather than offering hope for the future.
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Starmer promises ‘light at the end of the tunnel’ despite looming tax rises

We sit down with Jennifer Davidson, the founder of Sleek, a leading experience marketing agency based in London with a global client base.
Known for delivering captivating, immersive events that challenge norms and inspire change, Davidson shares the journey behind launching Sleek and discusses the agency’s core mission to create meaningful connections through expertly crafted live experiences. From the motivations that sparked the creation of the agency, to the values that shape its culture and the innovative approach to client collaboration, Davidson offers a glimpse into what sets Sleek apart in a competitive industry.
I’m the founder of Sleek, a full-service experience marketing agency based in London that works with clients globally.
We’re known for our ability to create real moments that captivate audiences, challenge norms, and inspire change. We pride ourselves on serving as strategic partners for our clients, crafting experiences that leave lasting impressions and creating authentic connections, evoking genuine emotions, and delivering impactful events.
What is the main problem you solve for your customers?
We understand the importance of forming meaningful connections, and we believe that well-crafted events can address this need effectively. Our approach involves a deep dive into a client’s strategy, values, and objectives to design moments that truly resonate with audiences and secure tangible results. Through our comprehensive experiential marketing services, we create immersive live experiences that captivate audiences, develop compelling brand narratives, and produce engaging content.
What made you start your business – did you want to rock the status quo, or was it a gap in the marketplace that you could fill?
It’s hard to believe it’s been over a decade since I started Sleek. In all honesty I did  want to rock the status quo to bring a fresh perspective to agency life. Before taking the leap into agency ownership, I spent years as a freelancer, working with diverse brands and agencies. During this time, I encountered a significant gap in the industry: a lack of transparency and genuine communication. Clients and agencies often spoke in code, and staff welfare and growth seemed secondary to just getting the job done.
What are your brand values?
Respect – This is the foundation of each department. We respect our clients’ businesses, including brand values, working styles, processes and budgets and importantly ourselves and our colleagues.
Versatile – It’s important for us that we tailor our service to your requirements and budget with guaranteed high standard, no matter the size of the event. Our clients always appreciate our flexibility.
Big Hearted – We pride ourselves as being friendly, approachable and reliable, with everyone from clients to partners and suppliers.
Resourceful – We love to be challenged and won’t rest until we’ve found what you’re looking for. We’re always open to thinking differently; from spaces and budgets to objectives and timings. Nothing’s too much trouble. No idea is too big and no request is too quirky. If there’s a way, we’ll find it.
Do your values define your decision making process?
Absolutely, our values are central to our decision-making process. We prioritise working with clients who share our values because they play a crucial role in maintaining our team’s well-being and fostering a positive company culture. We seek partnerships with clients who understand the true role of an agency and are interested in growing together, rather than just engaging in one-off projects.
Is team culture integral to your business?
Building a culture of inclusivity, transparency, and gender equality has always been my top priority. It’s not just about the bottom line; it’s about empowering the team. I’ve created a sense of ownership. With a focus on work-life balance, equal pay, and initiatives supporting women’s health, we’ve fostered an environment where everyone feels valued and empowered. Our most recent employee engagement score of 86% speaks for itself.
What do you do to go the extra mile to show your team you appreciate them?
Doing the bare minimum to be an equal employer was never an option for me and I wanted to tackle specific problems that I know employees face.
I’m so proud that we now have a comprehensive suite of policies and initiatives in place that put employee wellbeing at every life stage into central focus. This really helps foster a culture of inclusivity and transparency. Here are some key examples:
Profit Sharing: Sleek ties a portion of profits to employee performance, further incentivising success and a shared financial stake.
Work-life Balance: Generous parental leave policies exceed legal requirements, recognising the vital role parents play.
Equal Pay: Clear salary bands ensure equal pay for equal work regardless of gender. Bonuses are awarded based on transparent criteria, fostering accountability and ensuring women are rewarded fairly.
Gender Equality Initiatives:
Women in Leadership positions:
Women’s Health & Wellbeing: Programmes specifically address challenges faced by women, including menopause and other health conditions.
In terms of your messaging do you think you talk directly to your consumers in a clear fashion?
Yes, we believe our messaging speaks directly and clearly to our consumers. We recently underwent a ‘Sleek Evolution’, which allowed us to refine our approach to ensure that our communication is straightforward and free of unnecessary jargon. Our goal is for visitors to understand what we offer as soon as they land on our website.
What’s your take on inflation and interest rates – are you going to pass that on to your customers or let your margins take a hit and reward customer loyalty in these tougher times?
We always try to remain competitive with our pricing, but pride ourselves on being fair across the board. Having this approach may mean a transparent conversation would need to happen about how that impacts rates. As with all businesses we have to move with the times and do what we need to to protect those we pay a salary to.
How often do you assess the data you pull in and address your KPIs and why?
Often. Every eight weeks we meet as a board where each department reports on their KPIs. This all ladders up to our business strategy and targets. But regardless of meetings, we assess these data points daily to ensure clarity on all metrics. I believe this is why we’ve been able to build the success we have so far as we’re very focussed on ensuring clarity with our goals.
Is tech playing a much larger part in your day-to-day running of your company?
Yes, I think naturally it’s the way the world is moving and as a service-based company with global clients, tech is a tool we have to utilise. It also enables us to find more efficient ways of working though which ultimately benefits the clients bottom line. We also adapt to our clients needs so will often be using different forms of tech for collaborative working. We have an inquisitive team who are always bringing ideas and new tech to the table to inform everyone.
What is your attitude to your competitors?
There is a great quote by Henry Ford that sums this up: ‘The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time.’
Our goal is to remain focused on us and not be distracted by our competitors. We aim to create better work this week than we did last week, and make this month better than last month – for no other reason but to continuously raise the bar.
Do you have any advice for anyone starting out in business?
Success wasn’t something I ever expected, and the feelings of doubt were a constant companion. However, my inner thoughts of “you can’t” only fuelled my fire. The truth is anyone can achieve anything they set their mind to. Our abilities aren’t defined by anything other than the belief in ourselves. We should always look to show up with confidence and keep in mind that every failure presents the opportunity to learn, and the harder we work, the closer we get to proving the doubters wrong.
It can be a lonely and pressured place to be as the lead decision maker of the business. What do you do to relax, recharge and hone your focus?
To relax, recharge, and maintain focus, I prioritise a few key practices. I take Fridays off to ensure I have time to unwind and reflect, as well as spend time with my young son and husband. I also make it a point to exercise regularly, which helps me stay energised and clear-headed.
Mornings are my personal time for quiet reflection; I wake up early to read, journal, and enjoy some peaceful headspace, which sets a positive tone for the day. I cherish time spent with family and friends, especially when we get away to the coast, as it provides a refreshing break from routine.
Additionally, I invest in continuous learning and improvement by using a variety of coaches over the years. I listen to podcasts in the car and read books, which helps me relax away from screens. These practices are essential for maintaining my well-being and sharpening my focus.
Do you believe in the 12 week work method or do you make much longer planning strategies?
We tend to plan on an annual basis, but we ensure that progress is reported on monthly. This approach allows us to remain agile, enabling us to quickly identify any issues and make necessary adjustments to our strategy. By regularly reviewing our performance, we can refine our approach in real-time and stay on track to achieve our goals.
I don’t think there’s a right or wrong way to approach strategy planning – ultimately it’s down to what works for the business, industry they are in and the people doing the doing
What is your company’s sustainability strategy?
This year, we teamed up with The Bulb to create our sustainability strategy. We’re taking a step-by-step approach, starting by measuring our environmental footprint and then building a plan focused on people, planet, and partnerships. I am committed to equipping our team with the tools and knowledge they need to make a difference.
What three things do you hope to have in place within the next 12 months?
Launched the Sleek Academy – We want to take our learning and development programme to another level by engaging an external ambassador to formulate more structured training and development which we will have badges and certificates for. The ultimate goal is to make it an academically accredited course.
Fully execute the Sleek Evolution – We recently announced we were evolving and becoming a full-service experience marketing agency which expanded our service offerings and reinforced our commitment to create authentic and memorable experiences. This evolution will continue to roll out as we implement these new services and offerings to ensure our client’s get access to the best possible event outcomes.
Nailed year 1 of our 3 year strategy – Our company year starts on the 1st August so we want to ensure we are nailing this and getting into the rhythm of our strategy across the board as we’ve just kicked off our new year!
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Secrets of Success’: Jennifer Davidson, founder, Sleek

Goldman Sachs has predicted that the pound will surge to its highest level against the US dollar in over three years, buoyed by strong UK economic growth and a gradual reduction in interest rates by the Bank of England.
The US investment bank forecasts sterling will reach $1.40 within the next year, a significant leap from its current value of $1.33 and surpassing its previous projection of $1.32.
Goldman also anticipates that the pound will be among the top-performing currencies against the US dollar over the coming year, with the euro also rising to $1.15 from $1.11.
According to Goldman, the Bank of England’s “patient” approach to lowering interest rates, in contrast to more aggressive cuts from other central banks, will be a key driver of the pound’s strength. Last week, the Bank chose to maintain interest rates at 5%, while the US Federal Reserve reduced its benchmark rate to a range of 4.75% to 5%. Historically, higher interest rates tend to boost demand for a currency by offering better returns on investments like bonds.
Goldman Sachs analysts also noted that the UK’s “solid growth momentum” would fuel sterling’s rise, especially as a robust US economy increases global demand for riskier assets such as the pound. Reduced political volatility under the Labour government is another stabilising factor, as confidence in the currency rebounds following the turbulence of the Truss administration’s mini-budget in September 2022.
Rachel Reeves, the Chancellor, reinforced Labour’s commitment to driving economic growth in her speech at the party’s conference, marking the first time a sitting chancellor has spoken at the event in 15 years. Reeves pledged an ambitious budget on October 30 that would reject austerity while prioritising public investment and working in tandem with the private sector to bolster the economy.
However, she acknowledged the need for tough fiscal decisions, citing a £22 billion deficit inherited from the previous government, which Labour plans to address through a combination of tax increases and spending adjustments.
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Pound set to reach highest level against US dollar since 2021, says Goldman Sachs