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In this episode of Week in Business, City AM's Editor in Chief breaks down this week's top stories in the UK.
Some of this week's top stories include 11,000 millionaires leaving the UK and Rachel Reeves backtracking on her Autumn Budget policies on nom-doms – plus more.
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Produced by: Christian May, Joe Lee, Emmanuel Nwosu
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0:00
it's a funny old world when the pleas of
0:02
pensioners farmers and shopkeepers fall
0:04
on deaf ears but a labor Chancellor
0:06
flies to Davos to break the news that
0:08
she's listened to the concerns of the
0:10
Nom community and will be watering down
0:13
her assault on their tax Arrangements
0:16
now I could just end there frankly I
0:18
could just leave you to M over that
0:20
little encapsulation of the state of
0:22
things but there's plenty to discussed
0:24
this week including those non-dom
0:26
reforms so welcome to the week in
0:28
business with me Christian
0:34
so let's take a look at the mega rich
0:36
and we can start with the news that
0:37
nearly 11,000 millionaires left the UK
0:40
in 2024 many of whom would have had
0:42
non-dom stasis which protects ultrarich
0:44
foreign Nationals from paying tax in the
0:46
UK on their overseas earnings and wealth
0:49
at least that's how it worked for about
0:51
200 years before the government followed
0:53
through with this commitment to end that
0:54
special status building on work that
0:56
began under the previous government now
0:58
in case you're of review that this
1:00
country can do perfectly well without
1:02
the globally mobile Mega thank you very
1:04
much consider that research from the
1:06
Adam Smith Institute this week
1:07
calculated that between them those
1:09
11,000 newly departed millionaires pay
1:12
the same amount in tax as half a million
1:15
average UK taxpayers meaning the
1:17
treasury will need to find 500,000 new
1:19
taxpayers to make up for that loss now
1:22
that's quite a chunk of change and
1:24
perhaps explains why the chancellor is
1:26
looking again at some of the rules she
1:28
announced in her budget but this is
1:31
closing the stable door after the
1:32
thoroughbreds have bolted wealth
1:34
advisers have told Cam this week that
1:36
the tweaks are too little too late but
1:39
there is something else we can take from
1:41
the Chancellor's exercise in damage
1:42
limitation and it's important a crack
1:45
has opened up in the budget Rachel Reed
1:48
says she'll table amendments to her own
1:50
finance bill to accommodate the changes
1:51
to the non-dom rules and so a precedent
1:54
is being set changes can be made partial
1:57
u-turns can be considered and this has
2:00
not gone unnoticed farming groups last
2:03
night jumped at the chance to say well
2:04
what about us their argument goes that
2:07
is the new inheritance rules on Family
2:09
Farms have been properly scrutinized
2:11
it's right and proper now that the
2:12
government Rose back on that policy now
2:15
in this battle the farmers have some
2:17
unlikely new allies the country's
2:19
biggest supermarkets little Tesco and
2:22
ALDI have joined Asda in demanding a
2:25
consultation into the hugely
2:26
controversial decision to Levy
2:28
inheritance taxes on family Farms
2:30
warning that the policy risks smashing
2:32
the confidence of British farmers and
2:34
undermining their ability to invest with
2:36
grave consequences for food security and
2:38
the rural economy now they say the
2:40
policy should be paused while a proper
2:42
review is carried out and the government
2:44
should listen to them supermarkets of
2:46
course are facing their own difficulties
2:48
thanks to government policy Sams Brees
2:50
this week announced 3,000 job Cuts in
2:53
response to the rise in National
2:54
Insurance and labor costs and they are
2:56
not alone unemployment has risen as
2:59
businesses put into action what they've
3:01
been longt telling economic surveys the
3:04
budget has made it harder and more
3:05
expensive to employ people so they'll
3:07
have to employ fewer people in addition
3:09
to raising prices and cutting their
3:11
costs elsewhere this was entirely
3:14
predictable and therefore entirely
3:16
avoidable now just today the latest red
3:19
flag alert issued by insolvency
3:21
Specialists beg's trainer reveals that
3:23
the number of companies facing critical
3:25
financial distress has climbed 50% since
3:28
the budget with 46,000 firms entering
3:30
distress in the last quarter of last
3:32
year and Hospitality in retail
3:34
businesses are suffering the most so
3:36
it's been another week in which the
3:38
government promises growth tomorrow
3:40
while ignoring its death throws today
3:42
big moves on infrastructure investment
3:44
including new runways at our major
3:46
airports and Regulatory changes to stop
3:48
environmental concerns from holding up
3:50
new house building are excellent ideas
3:53
but they weren't in Labour's Manifesto
3:55
which devoted exactly 20 words to the
3:57
aviation sector focusing on the
3:59
promotion of sustainable fuel so either
4:02
they always planned to back airport
4:03
expansion but decided to keep it a
4:05
secret or they've reached for the policy
4:07
now because they're in desperate need
4:09
for some progrowth news either way it
4:11
doesn't exactly speak to the existence
4:13
of a coherent economic strategy I can't
4:15
shake the idea that they're making this
4:17
up as they go along and if that's the
4:19
case well then we're in even more
4:21
trouble than I thought because this is
4:23
not the time to not have a plan warning
4:25
lights are flashing red unemployment is
4:28
rising business and consumer human
4:30
confidence have crashed it is tough out
4:32
there it Remains the case that this is a
4:34
brilliant country powered by exceptional
4:37
businesses entrepreneurs Founders
4:39
Farmers Risk Takers and shopkeepers but
4:42
the government has taken them for
4:43
granted and is now taking them for
4:46
fools on that note I'll say have a good
4:49
weekend stay up to date and in the know
4:52
with the cityam app and I'll see you
4:54
here next week
4:59
[Music]
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