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Dame Amanda Blanc, chief executive of Aviva, has warned that giving the government power to force pension funds to invest in UK assets would be a serious misstep, describing such a move as “a sledgehammer to crack a nut”.
Speaking on Thursday, Blanc insisted that defined contribution pensions must be invested in the best interests of individual savers, and that any effort to compel schemes to allocate capital to specific UK assets would risk undermining that principle.
Her comments come amid rising tensions between the Treasury and the pensions industry over the Mansion House Accord, a voluntary agreement signed this week by 17 of the UK’s biggest workplace pension providers, including Aviva, Legal & General, Aegon, and Phoenix.
Under the accord, providers committed to allocating at least 10% of their default pension funds to private markets by 2030, with half of that—around £25 billion—going into UK-based assets such as infrastructure, start-ups, and other private investments.
While the Treasury estimates the pledge could generate £50 billion in new investment, it has emerged that a forthcoming review may recommend the government be given powers to mandate asset allocations if providers fail to meet their targets.
Blanc pushed back firmly on the proposal: “Mandation, we do not believe, is the right thing. The government needs to consider the unintended consequences. There is a whole chain of people—employee benefit consultants, employees, workers—who need to change behaviour, not just pension funds.”
“It’s like a sledgehammer to crack a nut. You have to be able to get everybody on board to do the right thing.”
The warning highlights growing unease in the pensions industry that government intervention could conflict with trustees’ fiduciary duties, potentially forcing them to make investment decisions that are not in the best interest of scheme members.
While Chancellor Rachel Reeves has said she does not believe mandation is necessary, she has notably refused to rule it out, telling reporters earlier this week: “I’m never going to say never, but I don’t think it’s necessary.”
That ambiguity has provoked a backlash from several key signatories to the Mansion House Accord, including Royal London, Aon, and Mercer, who argue that pension funds must retain autonomy to invest in a way that best serves savers.
Under the voluntary scheme, pension funds made it clear their commitments are conditional—subject to fiduciary duty and reliant on government and regulatory action to remove barriers to private market investment.
The debate is playing out as the government seeks ways to mobilise long-term domestic capital to drive economic growth and support national priorities. But industry leaders warn that undermining the independence of pension funds could backfire.
Blanc made her comments as Aviva reported strong Q1 trading, with general insurance premiums rising 9% year-on-year to £2.9 billion. The company is currently navigating a £3.7 billion takeover of Direct Line, and the Competition and Markets Authority confirmed it has launched a preliminary inquiry. Blanc said the inquiry was expected and would not delay the deal, which is set to complete mid-year.
As the Treasury prepares to publish its pensions investment review, Blanc’s comments are likely to be influential in shaping the debate—and may increase pressure on the government to steer clear of making investment in UK assets a legal requirement.
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Aviva warns against forcing UK pension funds to buy domestic assets

HM Revenue & Customs has issued its first tax avoidance Stop Notices to an individual, ordering Paul Baxendale-Walker, a struck-off solicitor and former barrister, to cease promoting two schemes deemed abusive and artificial by the tax authority.
In a landmark move, HMRC confirmed that these Stop Notices mark the first time the orders have been issued to an individual rather than a company, underscoring the government’s intent to clamp down on tax avoidance regardless of how schemes are structured.
The two arrangements, promoted by Mr Baxendale-Walker, involve offshore trusts and complex structures designed to allow users to access their funds while avoiding tax. HMRC has assessed these as schemes without genuine business purpose, aimed solely at exploiting tax loopholes.
Jonathan Smith, HMRC’s Director of Counter Avoidance, said: “The courts have already concluded that Mr Baxendale-Walker designed and sold multiple tax avoidance schemes that don’t work as claimed. These Stop Notices send a clear message: we will use every tool at our disposal to protect public finances from tax avoidance.”
The notices were issued under the government’s strengthened anti-avoidance framework, which forms part of a broader strategy to close the tax gap and protect funding for vital public services.
Tax avoidance Stop Notices are formal legal orders requiring the recipient to immediately cease the promotion of specific schemes. Failure to comply can lead to significant financial penalties or even criminal prosecution.
Mr Baxendale-Walker, who has previously been the subject of legal action and enforcement proceedings related to tax avoidance, is now barred from marketing or facilitating these two specific schemes.
The schemes in question have now been added to HMRC’s list of tax avoidance arrangements subject to Stop Notices, which is available to the public on GOV.UK.
HMRC is calling on the public and professional advisers to report any continued promotion of these schemes. Anyone aware of Mr Baxendale-Walker continuing to market them is urged to contact the department via its website.
Individuals who believe they may have used a tax avoidance scheme — whether promoted by Baxendale-Walker or others — are advised to contact HMRC immediately by emailing: CAGetHelpOutOfTaxAvoidance@hmrc.gov.uk
This move represents a significant step in the government’s ongoing effort to combat aggressive tax planning and signals that individual promoters, not just companies, are now firmly in HMRC’s sights.
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HMRC issues first individual tax avoidance Stop Notices to former solicitor Paul Baxendale-Walker

The number of UK employers voluntarily paying the higher Living Wage has risen by 19% over the past year, despite signs of a cooling labour market and pressure from statutory wage increases.
Figures from the Living Wage Foundation show that 16,040 employers are now accredited as paying the voluntary Living Wage — a rate set higher than the government’s statutory minimum. That’s up from just over 13,400 a year ago, with private sector companies, public bodies and charities all committing to higher wages for their lowest-paid staff.
The voluntary rates currently stand at £12.60 an hour across the UK and £13.85 in London, significantly above the £12.21 statutory minimum wage introduced in April for workers aged 21 and over. In the capital, this means Living Wage employers pay 13% more than the legal minimum, and 3.2% more across the rest of the UK.
The wage rates are set annually by the Resolution Foundation and overseen by the Living Wage Foundation, based on the real cost of living rather than government policy.
Among the businesses paying the Living Wage are major brands such as Ikea, Fred Perry, and Aviva. A study conducted by Cardiff Business School for the Living Wage Foundation found that employers adopting the scheme often reported “modest but positive” benefits, including improvements in reputation, staff retention, and people management.
Katherine Chapman, Director of the Living Wage Foundation, said the figures were encouraging: “Despite uncertain economic times, the Living Wage movement continues to grow across a range of sectors. It shows what’s possible when civil society and business come together to drive up standards and create work that works for everyone.”
Of the 2,830 organisations that signed up in the year to May, 1,751 were from the private sector, indicating sustained appetite for fair pay despite economic pressures.
The increase comes at a time when wider labour market indicators show signs of softening. According to the Office for National Statistics (ONS), wage growth slowed to 5.6% in the three months to March, down from 5.9% in the previous quarter. Meanwhile, unemployment rose to 4.5%, and the number of payrolled employees fell by 106,000 over the past year to 30.3 million. Job vacancies dropped by 42,000 to 761,000 — well below their pandemic-era peak of 1.3 million in early 2022.
The statutory minimum wage saw a 6.7% rise in April, part of a series of above-inflation increases, prompting concern among some businesses about affordability. However, the continued growth in voluntary Living Wage adoption suggests that many employers remain committed to offering more than the legal minimum.
With inflation falling and attention turning to real-terms income growth and workplace quality, the voluntary Living Wage is increasingly seen as a tool for employers to differentiate themselves — especially in sectors grappling with recruitment and retention challenges.
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Living Wage employers rise 19% as more businesses commit to higher pay

Fossil fuel giants, luxury travel users, and shareholders profiting from polluting industries could be forced to contribute directly to climate resilience measures under a new bill to be introduced in Parliament on Thursday.
The Climate Finance Fund (Fossil Fuels and Pollution) Bill, tabled by Labour MP Richard Burgon, calls for the creation of a dedicated fund to finance flood defences, home insulation programmes, and other climate-related protections. It proposes new levies on oil and gas firms, capital gains and dividends from polluting industries, and high-emission luxury activities including superyachts and private jets.
“Fossil fuel giants have driven us to the cliff edge of climate catastrophe,” said Burgon. “They’ve made obscene profits while millions suffer the consequences. It’s only right that those most responsible for the crisis fund the urgent climate action needed, both at home and abroad.”
Though the bill stands little chance of becoming law as a private member’s motion, it marks the start of a broader campaign inside and outside Parliament to mobilise public and political support for a “polluter pays” approach to climate finance.
The proposal comes amid mounting concerns over the politicisation of net zero policy, particularly following the local electoral success of Reform UK, which has openly criticised climate initiatives as unfair to lower-income households. Yet polling commissioned by Global Witness and conducted by More in Common suggests significant cross-party support for making major polluters contribute more.
According to the survey, two-thirds of UK adults are concerned about increasing damages from climate change, and 70% of Reform-leaning voters support higher taxes on fossil fuel firms and other high-emitting businesses.
Flossie Boyd, senior campaigner at Global Witness, said the findings challenged assumptions about climate scepticism: “Despite Reform leaders’ vocal opposition to climate action, the poll reveals most Reform-leaning voters are worried about climate change and want to see the firms and individuals most responsible taxed more.”
The bill also proposes the removal of fossil fuel subsidies, and would expand existing taxation frameworks to include dividends, capital gains, and luxury emissions. These funds would be ringfenced for domestic and international climate adaptation efforts, such as preparing communities for flooding, extreme weather events, and rising sea levels.
Louise Hutchins, campaigns director at Stamp Out Poverty, said: “There’s huge public support for making big polluters pay up for the climate damage they’ve caused. When five oil and gas corporations made over $100 billion in profits in 2024, it’s time ministers started looking to those responsible.”
The push for a dedicated climate damage fund comes as the UK government faces key decisions about future climate finance commitments, both domestically and internationally. While Chancellor Rachel Reeves has reaffirmed her government’s commitment to net zero, the path to paying for it — and who foots the bill — remains politically charged.
With growing voter appetite for fairer funding mechanisms and sustained pressure from civil society groups, the “polluter pays” campaign may yet gain further political traction in the run-up to the next general election.
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MP launches bill to make polluters pay for climate damage and resilience

Jaguar Land Rover (JLR) has posted its highest annual profit in a decade, marking a strong year for the British carmaker despite lingering uncertainty over US trade tariffs.
The Tata Motors-owned firm reported pre-tax profits of £875 million for the final quarter of its financial year, taking annual profits to £2.5 billion — up from £2.2 billion the previous year.
The company’s total revenues for the year held steady at £29 billion, with retail sales volumes flat at 428,000 vehicles following a 5% dip in the final quarter. However, a rise in operating margins enabled JLR to wipe out its net debt, ending the financial year with a net cash position of £278 million.
Adrian Mardell, JLR’s chief executive, hailed the results as a milestone moment for Britain’s largest carmaker: “We are confident that the implications [of US tariffs] will be net net positive,” he said.
The company also confirmed that major progress is being made on its electrification strategy. Testing has begun on the electric vehicle production lines at its Solihull plant, where the much-anticipated Range Rover Electric is due to begin production next year.
JLR also revealed that its upcoming all-electric Jaguar — codenamed the Type 00 — remains in development, with the most ambitious production forecast now targeting late 2025. However, insiders suggest this could slip into 2027 depending on demand and market conditions.
In addition, the carmaker will revive its Freelander nameplate as a new electric model. The vehicle will be manufactured at JLR’s Chinese facility and could be exported to the UK as part of the brand’s global EV strategy.
The upbeat financials come despite JLR’s temporary halt on US exports earlier this year, as the company awaited clarity on President Trump’s proposed tariffs. While a 10% blanket tariff on British automotive exports now appears likely, the company confirmed it had already shipped stock to the US in anticipation of the change and does not expect the cap of 100,000 UK vehicles per year to impact its forecasts.
JLR typically exports between 75,000 and 85,000 vehicles annually from the UK to the US, suggesting it will remain within the cap. However, the company did acknowledge that the 25% tariff on EU-made vehicles — which will affect its Slovakia-built Defender — presents a challenge. The Defender accounts for over a quarter of JLR’s total sales, with 111,000 units sold annually.
Despite this, Mardell downplayed the likelihood of job cuts or immediate decisions around opening a US-based manufacturing facility, stating that the company is adopting a “wait-and-see approach” in response to evolving trade dynamics.
With nearly one-third of JLR’s business dependent on the US market, trade conditions remain an important factor for future planning. Nevertheless, Mardell remains optimistic, highlighting strong performance, a robust electrification pipeline, and a clean balance sheet as signs that JLR is well-positioned to compete in the evolving global automotive landscape.
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Jaguar Land Rover celebrates decade-high profits as EV plans gather pace

Burberry is set to cut up to 1,700 jobs — nearly 18% of its global workforce — as part of a sweeping cost-saving plan aimed at stabilising the business after a sharp downturn in the global luxury market pushed it into a pre-tax loss of £66 million.
The iconic British fashion house announced the measures on Wednesday, with the majority of cuts expected to come from head office functions, particularly in London, over the next two years. Additional reductions will come from operational changes at its Castleford factory in West Yorkshire, where the night shift will be scrapped and staff rotas reorganised.
The move is part of a cost-cutting strategy led by new chief executive Joshua Schulman, who joined in July with a mandate to turn the company around. The plan aims to deliver £60 million in new savings, bringing total annualised savings to £100 million by the end of 2027.
Despite the scale of the cuts, Schulman — a luxury industry veteran with past roles at Jimmy Choo and Coach — maintained a confident tone. “I’m more optimistic than ever that Burberry’s best days are ahead,” he said, though he acknowledged the increasingly uncertain macroeconomic environment, driven in part by geopolitical instability.
Investors appeared reassured, with shares in the FTSE 250 company rising 8.1% to 894p in morning trading.
For the financial year to 29 March, Burberry reported a 12% decline in like-for-like sales to £2.5 billion, alongside a sharp swing from a £383 million profit the year before to a £66 million loss. While the figures reflect the impact of broader industry pressures, they were not as severe as some analysts had feared.
The company has been hit hard by falling demand in China, one of its most important markets. Sales in mainland China dropped by 15% over the year, with an 8% fall in the fourth quarter alone. The global Chinese customer group also declined by a mid-single-digit percentage year-on-year.
Trade tensions have added to the headwinds. President Trump’s sweeping tariffs on luxury goods escalated the ongoing trade war with China, creating fresh uncertainty for brands reliant on global demand. A 90-day truce between the US and Beijing announced this week has offered a glimmer of hope that tensions may ease.
Schulman’s “Burberry Forward” strategy aims to refocus the brand on its most iconic products — including trench coats and scarves, which retail between £420 and £2,500 — while also broadening its pricing structure to appeal to a wider consumer base.
As the global luxury sector adjusts to a more cautious consumer landscape and rising political volatility, Burberry’s restructuring signals a tough but necessary repositioning. The brand now faces the challenge of reigniting growth while staying true to its British heritage — and doing so with a leaner, more focused workforce.
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Burberry to cut 1,700 jobs in global savings drive amid luxury slowdown

Fuel Ventures has led a £340,000 investment round into Community Wolf, a fast-growing South African startup using WhatsApp to revolutionise public safety through community-driven crime reporting and intelligence gathering.
The funding, which closed this month, marks a pivotal step in Community Wolf’s mission to use simple, accessible technology to make communities around the world safer — beginning with its home market of South Africa, where the platform has already gained significant traction.
By turning WhatsApp — the world’s most widely used messaging app — into a crime reporting and public safety tool, Community Wolf has created a powerful new communication channel between citizens, authorities, and the wider safety ecosystem. Its intelligent technology stack acts as a connective layer, allowing real-time responses and generating valuable, data-driven insights for law enforcement and local communities.
The new funding will be used to enhance the platform, build out Community Wolf’s in-house tech team, and scale operations in key global markets with high public safety needs, including Nigeria, Brazil, and other parts of South America. Marketing will also be ramped up across digital and out-of-home channels, aimed at establishing Community Wolf as a trusted and recognisable safety brand.
Mark Pearson, founder of Fuel Ventures, said the decision to invest was driven by the platform’s transformational potential: “We’re backing Community Wolf because they’re building something truly game-changing — a public safety network that puts the power in the hands of the people, using tools we already know and trust. The impact in South Africa is already clear. We’re proud to support their mission as they scale globally.”
Co-founders Nick Mills and Michael Houghton launched Community Wolf as a grassroots initiative to help people feel safer in their neighbourhoods. The platform’s effectiveness and community engagement have since propelled it into one of the most innovative players in public safety tech.
“This investment is a huge validation of our vision,” said Mills. “We’ve seen just how transformative it can be to connect communities using platforms they already use. Fuel Ventures’ backing gives us the rocket fuel to expand our reach and deepen our impact.”
Houghton added: “We’ve always aimed to stay lean so we can remain close to the communities we serve. But we also want Community Wolf to become a household name — something people can rely on and trust to keep them safe. With this investment, we can grow with care and stay true to what makes us different.”
As governments and private companies increasingly look to harness technology for public good, Community Wolf’s approach — blending everyday digital tools with real-time safety infrastructure — could become a model for citizen-led security in high-need regions around the world.
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Fuel Ventures backs Community Wolf with £340k to scale WhatsApp-based public safety platform

The UK government’s ambitious immigration reforms risk harming economic growth and deepening the country’s skills crisis unless matched by a fundamental overhaul of the domestic training system, leading business groups have warned.
Following Prime Minister Sir Keir Starmer’s announcement of a “comprehensive plan” to reduce immigration, the Institute of Directors (IoD) said the proposals could worsen already critical labour shortages across key sectors.
Alex Hall-Chen, principal policy adviser for skills and employment at the IoD, said: “These plans risk damaging already fragile economic growth by further limiting employers’ ability to fill urgent skills gaps. For this strategy to work, government must deliver on its pledge to more effectively link the skills and immigration systems and incentivise employers to invest in training programmes for the domestic workforce.”
Under the new plans, migrants entering the UK on all visa types will face tougher restrictions, with Starmer pledging that overall numbers will fall. But business leaders say that without swift reforms to how domestic workers are trained, these measures could leave employers without the skilled labour they need to compete and grow.
Stephen Phipson, chief executive of Make UK, the manufacturers’ organisation, said many firms only turn to overseas recruitment because of chronic failings in the UK’s domestic training pipeline.
“The apprenticeship levy, as currently structured, has been disastrous. It has made it harder, not easier, for companies to access the training they need,” Phipson said. He called for the government’s forthcoming industrial strategy to include a clear, urgent plan to build up the UK’s technical skills base, warning that “in the face of a crisis, the response must be significant, structural and fast.”
The British Chambers of Commerce echoed these concerns. Jane Gratton, deputy director of public policy, supported the overall objective of reducing the UK’s reliance on immigration but warned against acting too quickly.
“It’s vital that the pace of change in the immigration system does not cut off access to global talent before the UK’s wider labour market problems are properly addressed,” she said. “Firms need access to the right skills — and for some, that will include hiring internationally when local recruitment fails.”
The Confederation of British Industry (CBI) has also raised red flags, particularly over further restrictions on student visas, which it says could jeopardise university finances and reinforce damaging narratives around the use of migrant workers.
“The reality for businesses is that it is more expensive and difficult to fill a vacancy with immigration than if they could hire locally or train workers,” said Rain Newton-Smith, CBI chief executive. “Labour shortages can’t be solved by training alone. With the UK’s workforce set to shrink in the coming decades as our population ages, it’s more important than ever that we support the business investment needed to underpin tech adoption and training.”
The government’s proposals are being closely watched by business and policy leaders alike. While ministers have been clear on the need to reduce migration, the consensus among industry voices is that doing so without addressing structural flaws in skills policy could weaken, rather than strengthen, the UK’s long-term economic resilience.
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Business leaders warn immigration reforms could undermine growth without urgent training reform

A combination of unseasonably sunny weather and the later timing of the Easter break fuelled a sharp increase in retail sales across the UK in April, as consumers headed outdoors and opened their wallets for home and garden improvements, new data shows.
Retail spending rose by 7% year-on-year last month, according to figures from the British Retail Consortium (BRC) and consultancy KPMG — a notable jump from the modest 1.1% increase recorded in March. While the rise was partly driven by Easter falling in April this year rather than March, underlying momentum was evident, with spending in March and April together up 4.3% compared with the same period in 2023.
Separate figures from Barclays echoed the upbeat picture. The bank, which tracks almost 40% of the UK’s credit and debit card transactions, said card spending rose 4.5% in April — the fastest growth since June 2023. The biggest lift came from the leisure sector, with pub, bar and club spending up 6.6%, the largest increase in 16 months.
The good weather also gave garden retailers a spring boost, with spending at garden centres surging 25% in April. DIY sales rose by 4%, likely bolstered by new homeowners preparing for summer renovations following a wave of property completions ahead of the end of the stamp duty holiday.
The Met Office confirmed that April 2025 was the sunniest on record, helping drive sales in both food and non-food sectors. The BRC and KPMG data shows food sales rose by 8.2% year-on-year, outperforming the three-month average growth of 3.9%, while non-food sales jumped 6.1%, also well ahead of the three-month trend.
Official data from the Office for National Statistics supports this robust picture, with retail sales up 1.6% in Q1 2025 — a clear sign that consumer activity remains resilient despite lingering economic uncertainties.
“The sunniest April on record brought with it a boost to retail sales,” said Helen Dickinson, chief executive of the BRC. “While the stronger performance was partially a result of Easter falling in April this year, the sunshine prompted strong consumer spending across the board.”
Barclays also noted that despite geopolitical concerns — particularly the ongoing uncertainty surrounding global trade and tariffs — UK consumers remain optimistic. In April, 72% of those surveyed expressed concern about the financial impact of President Trump’s tariff policies, but that anxiety was partly eased by a US-UK trade deal which reduced tariffs on metal and car exports while retaining a 10% blanket rate.
“While the world continues to grapple with unprecedented levels of trade uncertainty, UK economic sentiment has been surprisingly positive recently, supported by a resilient consumer,” said Julien Lafargue, chief market strategist at Barclays Private Bank. “The recent interest rate cut from the Bank of England, alongside improved trade clarity, should support further momentum in the months ahead.”
Lafargue cautioned, however, that despite the current uplift in spending, broader economic growth may remain subdued, particularly as the global labour market softens and economic headwinds persist internationally.
Nonetheless, April’s surge in consumer activity offers retailers a welcome reprieve, raising hopes that improving weather and falling interest rates could help sustain spending into the summer.
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Sunniest April on record lifts UK retail sales as consumers flock to pubs, DIY and gardening