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The Payments Systems Regulator (PSR) and the Financial Conduct Authority (FCA) are scrutinising the benefits and potential risks of digital wallets as analysis suggests that over half of UK adults may be using services like Apple Pay, Google Pay, and PayPal. As well as looking at the advantages digital wallets offer consumers, the regulators will also explore if there are elements that could hinder payment efficiency. They will also gather evidence on whether the technology carries any substantial issues related to competition, consumer protection, or market integrity. PSR managing director David Geale said: “Collaboration between regulators and working with industry is crucial to ensure we're on the front foot to support innovation and competition.” FCA chief executive Nikhil Rathi said that with digital wallets having become “a part of everyday life for many people,” the City watchdog wants to “maximise the opportunities and benefits for consumers and businesses while protecting against any risks this technology may present." The regulators have launched a call for information from stakeholders which remains open until September 13.

 

Daily Express

Evening Standard

The Times

CEOs of financial technology companies that are looking to list in London say the overhaul of IPO rules is not enough. Share offerings in London have slumped in the last few years, and fintech bosses are pushing for bolder reforms to boost the City’s appeal. Enhanced incentives to promote research, improved policies to attract global talent, and a friendly tax regime that supports employee stock options are among the measures that could help “solidify London’s status as a premier listing hub,” said Paul Taylor, CEO of banking software firm Thought Machine. Other fintech bosses including Jaidev Janardana, CEO of SoftBank-backed Zopa Bank, have called for a wider range of investors.

 

Bloomberg

Swati Dhingra, a member of the Bank of England's rate-setting Monetary Policy Committee, has called for the Bank to cut interest rates to ease the strain on households. Dhingra believes that demand is soft enough to prevent any resurgence in inflation, despite strong wage pressures. She said: "Now is the time to start normalising so we can then finally stop squeezing living standards the way we have been to try and get inflation down." The Bank of England's benchmark rate currently stands at 5.25%, while inflation is currently at the Bank's target rate of 2%. 

 

The Times

Barratt Developments and MJ Gleeson have warned it will take at least a year to start increasing housing supply, underlining the scale of the challenge facing the new Labour government.

 

Financial Times

Two Muslim women, Afra Sohail and Aungbeen Khalid, are suing Lloyds Bank for discrimination after being disciplined for posting pro-Palestine messages in an internal work forum for Muslim staff. They claim religious and philosophical belief discrimination and are seeking damages. Lloyds accused them of breaching integrity and discrimination rules and issued them with a final written warning for gross misconduct. The report notes that, during the hearing at the employment tribunal, Nicola Webster, a HR manager at the UK bank who presided over investigations into the two women, said that she does not know the history of the Palestine and Israel conflict which dates back to at least 1947. A Lloyds Banking Group spokesperson said: “We are committed to providing an inclusive place of work for everyone, and will always take appropriate action if colleagues fail to meet the expected standards set out clearly in our conduct policy.”

 

The Independent

Boots' chemists are preparing for a potential High Court battle over controversial pension changes that have significantly impacted retirement plans. The dispute began when some of the 53,000 members of Boots' £4.8bn final salary pension scheme claimed they were denied full retirement benefits at age 60 due to revised retirement benefit rules. Workers received a letter from the pension scheme’s trustees in November informing them that the early retirement benefit would be scrapped. It means those who still want to retire at 60 will no longer receive a full pension and will have to wait an extra five years before they can.

 

Daily Telegraph

Stress levels among retailers and consumer businesses have reached their highest point since the pandemic began, according to research by law firm Weil Gotshal & Manges. Weaker spending power and supply chain issues have contributed to the sector's difficulties. However, some firms are cautiously optimistic about their economic recovery, with experts suggesting that UK companies could benefit from post-election certainty. The Weil European Distress Index revealed that retail and consumer goods firms experienced particularly high levels of distress in Q2 2024. Tensions in the Middle East have exacerbated supply chain and cost issues, leading to increased costs and delays. Germany reported the highest level of distress across Europe, while the UK saw a slight drop in corporate distress.

 

Daily Mail

London Evening Standard

With Carpetright reportedly on the brink of collapse and calling in PwC to oversee its entry into administration, Dave Phillips, senior managing director at FTI Consulting, says it serves as "yet another sign of the pressures [that] UK retailers are facing and the need for increased resilience." He says firms must ensure that they are "sufficiently resilient" to deal with a number of challenges, warning that "the unknown, such as cyber-attacks . . . are best addressed by robust defences upfront than by a rapid response." Phillips says retail businesses "need to make bold decisions early and avoid kicking problems down the road, particularly regarding their store estates, store operations and organisational complexity.”

 

City AM

The UK government's stake in NatWest has fallen below 20% for the first time since during the financial crisis. The government now owns 19.97% of the bank's shares and the stake falling below 20% means that, under new listing rules, the government will no longer be considered a related party to the bank. The government's investment arm, UKGI, has held a stake in NatWest since 2008 when it was forced to step in and bail out the lender by injecting £45.5bn to prevent its collapse. NatWest chief executive Paul Thwaite said the bank is "pleased with the continued momentum in the reduction of HM Treasury's stake,” adding: "Returning NatWest Group to full private ownership remains a key ambition and we believe it is in the best interests of both the bank and all our shareholders." 

 

City AM

The I

Daily Mail

The Daily Telegraph

The Times

Burberry has announced the departure of its chief executive: Jonathan Akeroyd steps down with immediate effect. He will be replaced by Joshua Schulman, the former head of Michael Kors and Coach. The announcement came after Burberry reported a 22% decline in sales to £458m in the first quarter, worse than expected. Burberry warned that if weak trading persisted in its second quarter it would report an operating loss for the first half and that its annual profits would be below previous forecasts. Chairman Gerry Murphy also announced that Burberry has decided to suspend dividend payments for 2025. The fashion brand said that under Schulman’s leadership it would focus on “more of the timeless, classic attributes that Burberry is known for,” including its trench coats and scarves.

 

Sky News

BBC News

Financial Times

The Daily Telegraph

Shares in shipbuilder Harland & Wolff remain suspended as the audit of its annual accounts undergoes final reviews. The shipyard published its unaudited financial results on 1 July, which showed an operating loss of £24.7m and revenue of £86.9m. However, trading in its Aim-listed shares was suspended after it disclosed accounting issues. Harland & Wolff is in crisis talks with ministers to secure a £200m bailout. Executives are looking to borrow the funds from UK banks and have the government serve as a guarantor.

 

City AM

Deutsche Bank analysts expect the lender to post a loss for the second quarter, breaking a streak of 15 consecutive quarters of profit. The bank has warned it would set aside up to €1.3bn for the quarter in a lawsuit claiming it underpaid for its purchase of its Postbank division.

 

Daily Mail

Investors are growing concerned about online grocer Ocado as the company faces delays to its customer fulfilment centres. Analysts at Bernstein have downgraded Ocado's rating to "underperform" due to potential financial risks. The company needs to refinance existing debt of £1.4bn by January 2027 and has experienced delays and pauses in partnerships with grocers such as Kroger and Sobeys. Shares in Ocado fell by 10.4% following the bearish note.

 

The Times

City A.M.

Daily Mail

UK businesses are experiencing increasing difficulties in hiring staff, according to a survey conducted by the British Chambers of Commerce (BCC). The survey, which quizzed over 4,700 companies, found that three out of five businesses had attempted to recruit in the past three months. Of those which had attempted to secure new staff, three-quarters reported recruitment difficulties. The construction and engineering sectors were the most affected, followed by the transport and logistics industry. Jane Gratton of the BCC said: "It's alarming that recruitment difficulties have increased in recent months across all sectors," warning: "People shortages and labour costs are ramping up pressure on firms and holding back growth." She added: "We need to prioritise help for people to get back into the labour market and remove the barriers to business investment in training. Better planning for skills is crucial."

 

Daily Mail

The Independent

Some management experts aver that if companies funnel employees to use anonymous hotlines to tell the truth about unacceptable behaviour, then it may suggest that it is risky to speak out.

 

Financial Times

Scrapping inheritance tax relief could cost family businesses £1.4bn per year, Family Business UK (FBUK) has warned. The lobby group says more than 3,000 family businesses would be affected, potentially leading to company liquidations and job losses. FBUK chief executive Neil Davy has written to Chancellor Rachel Reeves and Business Secretary Jonathan Reynolds to seek assurances that Labour will not target business relief. He said the £1.4bn in tax relief "isn't money which is sitting with individuals in their personal bank accounts. That is money that is sitting in the business being used for investment, growth, employment and long-term certainty.” The existing system allows business owners to claim up to 100% relief on passing on business assets. The government has been urged to pull back inheritance tax reliefs, including business relief, by the Institute for Fiscal Studies. 

 

The Daily Telegraph

Analysis from Lubbock Fine shows that at least 21 professional football clubs in the UK have fallen into arrears over their tax payments and owe HMRC money related to corporation tax or VAT. With High Court records showing that the tax office has issued winding-up petitions to several clubs, Graham Caddock of Lubbock Fine said: “HMRC often feels that it is at the back of the queue for debts,” but added that it “is now taking a much more aggressive approach to collect those overdue liabilities.”

 

City AM

Uber's rival taxi operators will no longer face a 20% tax charge on their profit margins outside of London. It comes after the Court of Appeal overturned a ruling that private-hire operators must enter into a contract with passengers. The ruling was reversed following a challenge by private hire operators Delta Taxis and platform Veezu. The Court of Appeal’s decision will not impact Uber, which will continue to charge VAT on fares, but taxi firms in England and Wales – outside of London – will not be forced to apply VAT onto their fares.

 

City AM