Business

The operator of the Channel Tunnel has frozen millions of pounds of planned investment in Britain and warned that rail fares could rise after the Valuation Office Agency (VOA) proposed a 200 per cent increase in its business rates bill.

Eurotunnel, owned by French group Getlink, said it was in “deep disagreement” with the planned revaluation, describing it as “unjustified and confiscatory in nature”. The company currently pays £22 million a year in business rates but believes this could jump to £65 million by 2028, even after transitional relief. It expects next year’s bill alone to reach nearly £36 million.

A Getlink spokeswoman said the proposed increase amounted to a marginal tax rate of 75 per cent on new investment, making future UK rail investments loss-making. “Eurotunnel has therefore frozen all new rail investments in the UK,” she said.

The move has led the company to abandon two key freight projects worth around £15 million, including reopening a freight terminal in Barking and launching a new direct service from Lille. The operator passes much of its business rate burden onto train operators that use the Channel Tunnel, including Eurostar — meaning passenger fares are likely to rise.

Eurostar warned that a threefold increase in business rates “would be at odds with the government’s ambition of economic growth, pioneering European rail connectivity, and encouraging low-carbon rail travel”.

The concerns echo those raised by Gatwick Airport, which has said its planned second runway could be jeopardised by a potential 300 per cent rise in its own business rates bill.

John Keefe, Eurotunnel’s director of public and corporate affairs, said the VOA’s methodology lacked transparency and was inconsistent with ministers’ pro-growth ambitions. “Since 2017 we’ve had, over three valuations, a nine-times increase in the valuation,” he told Politico. “If you take all the money in business rates, there’s nothing left for investment.”

Eurotunnel said it would “pursue all measures at its disposal” if the proposals go ahead, including legal action to “protect its interests and, more broadly, the future of cross-Channel rail transport”.

It argued that it is “unduly penalised compared to competitors” whose transport activities are more carbon-intensive and face lower taxes.

The VOA said its valuations simply reflect changes in the property market and are carried out by experienced professionals according to legal and industry standards. It stressed that it does not set business rates and that discussions with Getlink are ongoing. Businesses may challenge valuations and appeal decisions through the independent Valuation Tribunal.

A government spokesperson said targeted support would be provided for companies facing “the largest revaluation increases” and that officials were exploring further options ahead of the next revaluation.

Shares in Getlink fell 1.2 per cent in Paris trading on Thursday following the announcement.

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Eurotunnel halts UK investment after ‘confiscatory’ plan to triple business rates

The government has borrowed £9.9 billion more than expected so far this fiscal year, intensifying the economic pressure on Chancellor Rachel Reeves as she prepares to deliver next week’s Budget.

New figures from the Office for National Statistics (ONS) show that public sector borrowing hit £17.4 billion in October, down £1.8 billion on the same month last year but still the third-highest October total on record. Since April, borrowing has reached £116.8 billion, the second-highest level for the period since records began and almost £10 billion above the Office for Budget Responsibility’s forecast from the March Spring Statement.

The data comes at a crucial moment for Reeves, who is expected to announce tens of billions of pounds of tax rises next week. A planned rise in income tax was scrapped after revised OBR forecasts suggested the fiscal outlook had improved slightly, but the overall picture remains challenging.

James Murray, chief secretary to the Treasury, said rising debt-servicing costs were limiting resources for frontline public services.
“Currently we spend £1 in every £10 of taxpayer money on the interest of our national debt,” he said. “That money should be going to our schools, hospitals, police and armed forces.”

Murray said the Budget would set out “fair choices” to cut NHS waiting lists, reduce debt and tackle the cost of living.

The ONS said the government spent £8.4 billion servicing its debt in October, slightly down from £9.3 billion a year earlier. Grant Fitzner, the ONS’s chief economist, noted that tax and National Insurance receipts were higher than last year, helping offset increased spending on benefits and public services.

Economists warned the borrowing figures underline the tough backdrop Reeves faces. Pantheon Macroeconomics said the numbers would not affect the Budget itself, because the OBR forecasts are already finalised, but they “illustrate the difficult backdrop” confronting the Chancellor.

Capital Economics highlighted high local authority borrowing and surprisingly slow growth in tax receipts despite inflation-driven consumption rises.

The Institute for Fiscal Studies said the latest data “highlights uncertainty around tax revenues, pressures on public spending, and stubbornly high costs of servicing government debt”.

Following the announcement, yields on ten-year UK government bonds fell to 4.5 per cent, while sterling held steady at $1.30.

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Government borrowing overshoots forecast by £9.9bn, piling pressure on Reeves before Budget

The government has announced a sweeping package of artificial intelligence investments and reforms designed to accelerate economic growth, support national renewal and strengthen the UK’s position as a global leader in AI.

Placing AI at the heart of the UK’s Modern Industrial Strategy, ministers said the programme would unlock billions of pounds in private investment while enabling new opportunities for businesses, researchers and local communities. Central to the announcement is the creation of a major AI Growth Zone in South Wales, developed in partnership with Vantage Data Centers and Microsoft.

The zone — which spans multiple sites along the M4 corridor, including the former Ford Bridgend Engine Plant — will attract £10 billion in private investment and create more than 5,000 jobs over the next decade. It will serve as a hub for AI infrastructure, research and advanced digital industries, with further zones expected to launch in other regions.

Each Growth Zone will receive £5 million in government funding to help local firms adopt AI technologies and develop specialised skills in their workforce.

Sachin Agrawal, Managing Director for Zoho UK, said the government’s commitment to AI was both “timely and visionary”, and essential to ensuring innovation benefits are distributed fairly across the country. He warned, however, that businesses must complement adoption with the right culture, skills and governance.

“For businesses, the real opportunity lies not only in adopting AI tools, but in developing the skills, readiness and governance to apply them responsibly at scale,” he said. “AI literacy and strong data protection standards will be essential to ensure initiatives are credible and built for long-term impact.”

Agrawal said structured implementation — with clear pilot programmes supported by automation, security and strong oversight — would help organisations move “beyond experimentation” and generate sustainable competitive advantage.

To keep UK researchers and startups at the forefront of global AI development, the government is also launching a programme to expand free and low-cost compute access, with up to £250 million earmarked to help train advanced models and accelerate scientific breakthroughs.

Alongside this, ministers announced a £100 million advance market commitment that will allow the government to act as an early customer for UK AI hardware startups. The scheme is designed to support domestic chip innovation and ensure British-designed hardware is incorporated into the next generation of data centres.

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Government unveils major AI investment package to drive UK growth and create thousands of jobs

Retail sales slipped in October as wary consumers delayed purchases ahead of the Chancellor’s Budget and the start of the Black Friday discount period. Sales volumes fell by 1.1%, the first contraction in three months and significantly worse than the flat reading economists had expected.

The Office for National Statistics (ONS) said the drop was partly driven by shoppers intentionally holding off on spending until this month’s major discount events. Grant Fitzner, ONS chief economist, said many consumers reported waiting for Black Friday deals, which begin next week. October also marks the opening of retail’s critical “golden quarter” in the run-up to Christmas.

The fall reverses a 0.7% rise in retail volumes recorded in September — a figure revised up from 0.5%. Although sales rose 1.1% on a rolling three-month basis and were 0.4% higher than a year earlier, spending fell across almost every major category last month. Department stores were hit hardest, with sales down 4.5%, while clothing and footwear dropped 1.5%. Household goods fell 0.4%, and online sales declined 0.4%. Technology sales were the exception, boosted by the launch of the latest Apple iPhone.

Economists warned that shoppers’ caution reflects growing anxiety over the forthcoming Budget, amid speculation about higher taxes and the impact on disposable incomes. Rob Wood, chief UK economist at Pantheon Macroeconomics, said the “increasingly chaotic run-up to the Budget” had dented confidence. He argued that speculation over income tax rises likely weighed on households throughout October, with political turbulence in November expected to depress sentiment further.

Capital Economics’ Ruth Gregory said retailers may not enjoy the strong final quarter they had been hoping for. “Higher taxes in the Budget could restrain retail spending over the crucial festive period and going into next year,” she said.

Despite the softer October figures, some analysts believe retailers still have opportunities to capture demand. Sagar Shah, associate partner at McKinsey & Company, said brands were preparing more personalised and creative Black Friday campaigns to offset consumer hesitancy. He noted a shift towards immersive experiences, anti-advertising formats and shoppable content designed to cut through “ad fatigue” and drive engagement.

Retail sales remain a key early indicator of wider economic momentum, and October’s figures provide fresh evidence of consumers bracing for fiscal tightening ahead of what is expected to be a tax-heavy Budget.

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Retail sales fall as shoppers delay spending ahead of Budget and Black Friday

In most British workplaces, people notice safety messages long before they meet a manager or supervisor. Simple visual prompts set expectations about behaviour, safety, and respect from the moment someone steps through the door.

Those early cues shape how visitors feel about risk, responsibility, and standards inside the organisation.

Clear no smoking signs are part of that first impression for staff, customers, and visitors. They show that leaders take legal duties seriously and want a safe, comfortable environment for everyone. They also reduce awkward conversations where staff must challenge smoking without any visible backup from management.

Legal Duties For Employers And Managers

For many owners, smoke free law feels like another compliance box to tick, yet the stakes are high. The Health Act 2006 and related regulations place direct responsibility on those who control premises that must be smoke free. Failing to display required signs can lead to enforcement action and fines that are far higher than the small cost of compliant signage.

Government guidance explains that businesses can face penalties both for not stopping smoking at work and for not displaying clear warnings. The official page on smoking at work: the law notes that fines can reach several thousand pounds for serious breaches. That context helps owners compare the low cost of signs with the potential cost of non compliance.

Local authorities and inspectors expect to see signs that visitors can read quickly without confusion or guessing. A small sticker tucked behind a coat stand or door frame will not satisfy that test for clarity. Standard designs with the familiar red symbol help inspectors see compliance instantly and reduce the risk of on the spot challenges.

For multi site employers, a consistent sign format across offices, shops, or vehicles simplifies checks for regional managers. They can walk through a branch and see within seconds whether entrances, staff areas, and shared spaces are covered. That consistency is harder to achieve when each location improvises its own signs or relies on handwritten notices.

Protecting Staff And Customers From Harm

Second hand smoke is not just an irritation for non smokers, it carries real health risks. People with asthma, heart conditions, or pregnancy related concerns can be affected by short periods in smoky environments. For them, even one cigarette near a doorway or queue can trigger symptoms that disrupt work or travel plans.

Clear signage close to entrances, waiting areas, and loading bays helps prevent those situations from occurring. When expectations are visible, staff feel more confident asking someone to step away or extinguish a cigarette. They can point to the notice rather than relying only on personal authority, which reduces friction and awkwardness.

Public health information continues to highlight the link between tobacco smoke and serious illness across the United Kingdom. Local council guidance on smoke free legislation reminds businesses that almost all enclosed workplaces must stay smoke free by law. Businesses that align with that guidance support local targets and protect their long term workforce capacity.

In customer facing settings, people often judge professionalism by how clean and comfortable a space feels. The smell of smoke at the entrance to a clinic, shop, or office undermines that impression immediately. Signs that keep smoking away from doors and windows support a fresher environment and more positive feedback.

Supporting Company Culture And Reputation

Clear rules about smoking on site send a message about how people treat each other at work. Staff understand that their comfort matters, whether they smoke or not. Non smokers see that their health is taken seriously, and smokers receive fair guidance about where breaks should take place.

When visitors, clients, or interview candidates arrive, they notice small cues about how the business operates. Littered cigarette ends around a doorway suggest weak standards and poor care for the surroundings. Visible, well placed notices, combined with tidy outdoor areas, present a far more professional image.

Signage also helps managers handle difficult conversations in a more neutral way. Rather than confronting someone purely on personal preference, they can refer to the company policy and the posted signs. This keeps discussions focused on shared rules and respect, not on individual habits or values.

For multi employer sites, such as shared offices or industrial estates, consistent signs reduce confusion between different policies. Everyone uses the same visual language around smoking restrictions, which reduces disputes between tenants. It also helps landlords show that they are meeting their legal responsibilities across the site.

Practical Considerations For Business Owners

Running a small or medium sized company often leaves little time for detailed policy checks. Clear signage turns part of the smoke free duty into a simple visual checklist during routine inspections. Managers can combine monthly safety walks with a quick review of entrances, stairwells, and staff rooms.

When choosing signs, owners should consider how people move through the building during a normal day. Entrances, reception desks, lifts, and covered outdoor areas are common pinch points where smoke can build up. Signs placed at eye level in those locations are more likely to be noticed than notices hidden behind furniture.

Durability also matters because faded or damaged signs send mixed signals about enforcement. Weather resistant materials are helpful for external walls, car parks, and smoking shelters. Inside, rigid panels often stay clearer and cleaner than paper notices fixed with tape.

It is worth training supervisors and front line staff on how to use signage in day to day conversations. Simple phrases such as “Our policy is smoke free, as you can see from the sign here” are helpful. This approach turns the sign into a shared reference point rather than a silent rule that people may ignore.

Keeping No Smoking Rules Clear

For busy leaders, clear no smoking messages are a small detail that protects people and reduces risk. They support compliance with smoke free law, reduce complaints, and make it easier to manage behaviour on site. Thoughtful placement and consistent design also strengthen the way staff and visitors feel about the business.

As businesses grow, relocate, or update their premises, it makes sense to review signage at the same time. New layouts, additional meeting rooms, or fresh outdoor seating areas can all change how smoke drifts and where people gather. Checking that signs still cover those patterns avoids gaps that appear gradually as the organisation evolves.

Regular checks, brief staff training, and reliable signage suppliers can keep this area running smoothly with modest effort. Those steps show that leaders take health, safety, and comfort seriously, which benefits both people and performance over time. Handled well, signage becomes a quiet support for wider business goals rather than a constant source of complaints.

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What Are the Benefits of Clear No Smoking Signs?

Nearly two-thirds of fast-growth business founders believe the Labour government is “anti-business”, according to a new survey from Helm, one of the UK’s largest networks of scale-up entrepreneurs.

In a poll of 400 Helm members, 63% said the government is anti-business, compared with just 23% who disagreed. A further 14% said they were unsure.

Even more striking was the response to whether the government “rewards people for working hard”: 95% said it does not.

The findings highlight growing unease among high-growth founders ahead of the Autumn Budget, amid ongoing concerns about tax rises and the direction of the government’s economic strategy.

Founders feeling “betrayed and ignored”

Helm members — whose companies generate an average £21 million in annual revenue and collectively produce more than £8 billion — expressed deep frustration with the government’s approach to business and growth.

Helm CEO Andreas Adamides said members felt “betrayed, ignored and genuinely let down”.

“These aren’t faceless corporates — they’re founders who’ve risked everything to build businesses, create jobs and drive the economy forward,” he said. “They wanted to believe Labour understood them. Instead, they’ve read endless speculation about punishing tax rises and listened to ministerial rhetoric that dismisses their concerns. The sense of betrayal is palpable.”

Adamides said Chancellor Rachel Reeves “still has a chance to turn this around”, urging her to deliver “a Budget that backs growth, not one that punishes success.”

Investment and hiring frozen until after the Budget

A previous Helm survey in October found that three-quarters of members had frozen investment and hiring plans until after the Budget due to uncertainty over potential tax measures and the broader economic climate.

Labour support collapses among founders

The poll underscores a dramatic shift in political sentiment across the scale-up community:
• 20% of respondents voted Labour at the last election
• 0% now plan to vote Labour
• Only 6% plan to vote Conservative
• 15% plan to vote Reform
• A striking 58% remain undecided

Helm members also showed scepticism about political pledges more broadly: 70% said it is acceptable for a government to break a manifesto promise.

Helm’s membership base contributes more than £1 billion in annual taxes through corporation tax, employer National Insurance and other business levies — meaning the founders’ views provide a significant barometer of sentiment among the UK’s high-growth businesses.

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Six in ten founders say Labour is ‘anti-business’, new survey finds

When considering portable sanitation, the immediate mental image is typically one of construction sites, with their iconic plastic units positioned near heavy machinery.

While it’s undeniable that the construction industry is a primary beneficiary of these services, this perception can significantly undersell the vast utility and strategic importance of portable restrooms across the modern economic landscape.

The scope of available units has expanded dramatically, moving far beyond the basic single-stall model. Businesses can now select from several options including luxury restroom trailers with climate control, running water, and premium finishes, as well as ADA-compliant units for inclusivity, and models equipped with freshwater tanks for handwashing. This diversification allows companies to tailor sanitation solutions to their specific brand image and client expectations.

Below are the business uses for portable toilets, more than just construction sites:

Enhancing the Outdoor Hospitality and Dining Experience

The hospitality sector, particularly businesses that capitalise on purely outdoor ambience, relies heavily on accessible and clean restroom facilities. Breweries with expansive beer gardens, wineries hosting weekend tastings on the lawn, and upscale food truck parks all face a common challenge: permanent restroom infrastructure is often limited, expensive to install, or entirely impractical.

Providing clean, well-maintained portable restrooms isn’t merely a convenience in these settings. It’s a direct reflection of the establishment’s commitment to customer care and overall quality. A luxury restroom trailer, with its flushable toilets, vanity mirrors, and interior lighting, can seamlessly integrate into a high-end outdoor dining experience, ensuring guest comfort and encouraging longer stays, which directly translates to increased revenue.

Moreover, for those seeking a comprehensive catalogue of such options, checking out reliable resources online like portabletoiletslimited.com can provide insights into the sophisticated variety available on the market today.

Ensuring Compliance and Safety at Corporate Gatherings

Any business that organises off-site events, whether a corporate picnic, a product launch in a park, or a company-wide retreat, must address the fundamental need for sanitation. Local health regulations and permits can frequently mandate a specific ratio of restrooms to attendees. Failure to comply can result in fines, event shutdowns, and significant reputational damage.

Strategically placed portable toilets with hand washing facilities, including accessible units to meet Americans with Disabilities Act (ADA) requirements, can demonstrate due diligence and a duty of care for employees and guests. Lastly, by reducing foot traffic into any nearby permanent facilities, they can help prevent overcrowding and maintain cleanliness, contributing to a safer and more organised corporate event environment.

Facilitating Operations in Agriculture and Remote Worksites

Farms, ranches, and other agricultural enterprises typically have vast tracts of land where workers are stationed far from any permanent structures. Providing portable toilets in fields is a basic humane necessity and a matter of efficiency and regulatory compliance. For instance, the Occupational Safety and Health Administration (OSHA) has standards regarding sanitation for employees, and providing accessible facilities is a fundamental requirement.

Similarly, industries such as logging, remote surveying, and pipeline maintenance operate in areas devoid of infrastructure. Portable restrooms with good flushing system can ensure that worker health, safety, and dignity are maintained, which in turn supports productivity and morale in isolated working conditions.

Supporting Commerce at Flea Markets and Pop-Up Shop Clusters

Temporary commercial zones, such as seasonal flea markets, Christmas tree lots, or curated pop-up shop events, are engines of local commerce that operate without built-in utilities. The success of these ventures depends on attracting and retaining a steady flow of customers. A lack of clean, accessible restrooms can be a major deterrent, causing potential buyers to cut their visit short.

Deploying a sufficient number of well-serviced portable restrooms with wash stations is a strategic business decision for outdoor and leisure market organisers. It supports vendor success by creating a more comfortable and accommodating shopping atmosphere, which encourages extended browsing and higher sales volumes for all participants.

The Critical Role in Emergency and Crisis Response

In times of crisis, such as natural disasters or large-scale emergencies, municipal water and sewer systems can be compromised, rendering standard restrooms inoperable. During hurricane relief efforts, wildfire containment, or major power outages, the rapid deployment of portable toilet stations becomes a critical public health imperative.

Disaster response agencies, utility companies, and non-profit organizations can utilize vast networks of portable sanitation units to support both first responders and displaced residents. In these high-stakes scenarios, they’re essential for preventing the outbreak of disease and maintaining a baseline of sanitation amidst chaos by ensuring proper welfare and hygiene, showcasing their value beyond commercial utility to societal resilience.

Key Takeaway

The business applications for portable toilets extend far beyond their traditional association with construction. They’re a vital logistical component for the hospitality industry, a non-negotiable for corporate event planning, a commerce-enabler for temporary markets, a compliance and safety necessity for remote worksites, and a critical asset in disaster management.

The evolution of the industry has produced solutions for every need and budget, making portable sanitation a flexible and powerful tool for any business or organization operating outside the confines of permanent infrastructure. By keeping the information mentioned above in mind, businesses can ensure operational planning and a deep commitment to the well-being of customers, employees, and the public.

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Business Uses For Portable Toilets: More Than Just Construction Sites

When you meet Merhawi Tekle, you get the sense that he’s lived a few different lives — and mastered each one.

From his early days playing soccer in Italy and with the Eritrean Community Association of Ontario, to operating heavy machinery and leading construction crews, to his current role keeping Toronto’s emergency medical equipment running, Tekle’s story is one of discipline, perseverance, and service.

“I’ve always believed that hard work pays off,” he says. “Every job I’ve had taught me something about responsibility, teamwork, and showing up when people depend on you.”

Building a Foundation in Canada

Tekle arrived in Canada in 1989, a young man with ambition and an open mind. He graduated from Yorkdale Collegiate Institute and continued his education at Centennial College, where he developed the technical and mechanical skills that would shape his career.

His early jobs weren’t glamorous, but they were foundational. While working for GFL Environmental, he gained recognition for his safe and skilled operation of commercial vehicles — a testament to his focus and precision. “Driving those trucks wasn’t just about getting from A to B,” he recalls. “It was about safety, awareness, and understanding the systems you’re responsible for.”

That same attention to detail would later become a defining trait of his work with Toronto Paramedic Services.

A Steady Hand in High-Pressure Moments

Today, Tekle works as an Equipment Repair Technician for Toronto Paramedic Services, where precision can mean the difference between life and death. He’s responsible for inspecting, maintaining, and repairing the life-saving tools that paramedics rely on every day — from Zoll defibrillators and AEDs to stretchers, stair chairs, and splints.

“I take pride in knowing that every piece of equipment that goes out is safe and ready to use,” he explains. “Someone’s life depends on that reliability.”

In an environment where seconds matter, Tekle’s calm focus and ability to troubleshoot under pressure make him a quiet cornerstone of the city’s emergency response network. He also plays an active role in the Toronto Paramedic Services Black Staff Network, where he participates in public outreach and community engagement. “Representation matters,” he says. “When kids see people like me in these roles, it shows them what’s possible.”

Building His Own Path: People’s Choice Construction

Even as Tekle continues his work with the city, he’s also a business owner — proof that his drive extends beyond public service. In 2019, he founded People’s Choice General Contractor Inc., a demolition and construction company based in Toronto. The company has grown steadily, handling residential and commercial projects while employing up to 28 workers at a time.

“Running my own business taught me leadership in a new way,” Tekle says. “It’s not just about giving orders. It’s about creating a safe environment, setting an example, and making sure everyone goes home safe at the end of the day.”

From hazard assessments to equipment maintenance and client coordination, Tekle runs his company with the same meticulous attention to safety and efficiency that defines his public service career. “Every project starts with trust,” he adds. “If people trust your word and your work, you’ll never be out of business.”

His business portfolio has since expanded to include People’s Choice Car Rental and Services Inc., reflecting his entrepreneurial mindset and ability to identify practical needs in his community.

Leadership Beyond the Workplace

Tekle’s leadership doesn’t end at the job site or repair bench. A passionate soccer coach and community mentor, he uses the sport he grew up playing to teach young people about discipline, teamwork, and resilience. “Soccer is where I learned how to lead,” he says. “You win together, you lose together — and that’s life.”

He continues to stay active himself, frequenting the gym and remaining involved in local soccer leagues. Those who know him describe him as grounded, reliable, and always ready to lend a hand — qualities that have earned him respect both at work and in business.

Lessons in Balance and Purpose

Looking back, Tekle sees every chapter of his journey — from cleaning public spaces for the City of Toronto to managing multimillion-dollar construction projects — as part of the same story. “Each job prepared me for the next one,” he says. “You can’t skip steps. The experience you gain along the way becomes your foundation.”

His philosophy is simple but powerful: lead with consistency, stay humble, and take pride in what you do. It’s a mindset that has carried him through demanding roles and ambitious ventures, and one he hopes to pass on to others.

“I tell people all the time — whether you’re fixing an ambulance or running a business — do it with care,” he says. “Because that’s how you build something that lasts.”

A Legacy of Service and Strength

For Merhawi Tekle, success isn’t about titles or recognition. It’s about making a tangible difference — in the lives of Toronto residents, his employees, and his community. His career stands as proof that leadership can take many forms: behind the wheel of a truck, under the hood of an ambulance, or on a construction site filled with dust and noise.

And through it all, he’s never lost sight of where he came from — or where he’s going next. “My journey’s not over,” Tekle says with a smile. “There’s always more to learn, more to build, and more people to help.”

Read more:
Merhawi Tekle: From Soccer Fields to Saving Lives in Toronto

The Conservatives have accused Chancellor Rachel Reeves of undermining the Budget process and dragging the Office for Budget Responsibility (OBR) into political controversy after Labour briefed that improved economic forecasts prompted her to abandon plans for an income tax rise.

Shadow chancellor Sir Mel Stride has written to Richard Hughes, chairman of the OBR, demanding clarity on when the Chancellor received the watchdog’s forecasts and whether they played any role in last week’s surprise U-turn. Reeves had been expected to announce a 2p rise in the basic rate of income tax but reversed course amid intense speculation over Sir Keir Starmer’s leadership difficulties.

Reeves dropped the plans two weeks after the OBR handed over its final pre-Budget forecast on 31 October. The timing has fuelled suspicions among Conservatives that the Chancellor’s decision was politically driven rather than dictated by the numbers. In his letter, Stride said the government’s explanations “simply don’t stack up,” adding that the Chancellor had “sullied the Budget process” by briefing details to the press and “drawing the independent OBR into the crossfire.”

Government sources claimed that Reeves acted on updated Treasury analysis of the OBR’s long-term growth projections received on 10 November, which reportedly showed a £10 billion improvement in the public finances. However, the OBR’s own published timetable says its final economic forecast—produced before any policy decisions—was delivered on 31 October and should provide the “stable base” for the Chancellor’s choices.

Stride has asked Hughes to confirm whether the Chancellor received the forecasts on that date, and whether any changes have been made to the projections since then other than those arising from measures submitted by the Treasury for scoring. He also questioned whether Reeves had breached confidentiality by confirming publicly that the OBR had downgraded the UK’s long-term productivity outlook.

Former Treasury permanent secretary Lord Burns said it was a “huge mistake” for the Chancellor to trail an income tax rise and then abandon it, particularly given the reaction in financial markets. UK gilt yields spiked after reports of the reversal, forcing ministers to reassure investors that the decision was based on the OBR’s forecasts rather than political turmoil.

The Chancellor’s retreat from increasing income tax now leaves her needing to raise as much as £25 billion through a patchwork of smaller levies to meet her fiscal rules. Freezing income tax thresholds and higher duties on property, banks, gambling companies and electric vehicles are expected to form part of next week’s Budget.

Treasury insiders said the late-stage change of course has left officials scrambling to finalise the numbers, with several measures still undecided. One source suggested Reeves had previously ruled out higher taxes on banks “when the sun was shining,” but now faced pressure from Labour backbenchers to revisit bank profits.

The political turmoil comes as new data from the British Retail Consortium pointed to a sharp fall in consumer confidence heading into the crucial pre-Christmas season, following what it described as a “tumultuous” month of Budget speculation.

The Treasury said Reeves would set out full details in the Budget. The OBR declined to comment.

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Tories demand answers from OBR over Reeves’s income tax backtrack

Barclays has been accused of closing the bank account of a tech entrepreneur because she earns part of her income through the adult content platform OnlyFans.

Madelaine Thomas, who runs a start-up called Image Angel while also generating income through adult content platforms, said the bank refused to open a business account for her company and had shut down an account linked to her work on OnlyFans and similar websites.

Thomas applied for a business account with Barclays for Image Angel, a company she founded after private images of her were shared without her consent. The company’s technology applies digital watermarks to online images, allowing creators to track how their content is distributed and identify when it is shared without permission.

She said she initially received a positive response from the bank when submitting her application, but this was followed by a string of questions about a separate account that received income from her adult content work. She also said Barclays asked about a joint account she holds with her husband, which she uses to pay nursery fees.

“It’s crazy that I’m trying to get a business bank account for technology that is going to change the landscape in terms of violence against women and girls, and yet I’m now being investigated for…I don’t even know what,” she said. “The technology I’m creating is just protecting people. It’s a benefit to society.”

Writing on LinkedIn, she claimed: “Barclays don’t like that I earn via platforms like OnlyFans.”

OnlyFans, which has nearly five million creators and more than 350 million users, has faced similar complaints before. In 2021, the model Jessica Alves said Barclays deleted her account, citing concerns about transactions linked to adult content.

Last year, the Financial Conduct Authority warned banks not to block or shut down the accounts of adult workers without valid reason, saying such actions could cause “significant harm” to the individuals affected.

A Barclays spokesperson said the bank has a responsibility to understand the source of funds associated with any business account.

“Where it is not possible to do so, we will examine each business on a case-by-case basis and only close a customer’s account after careful thought,” the spokesperson said. “We do not take this decision lightly and understand the difficulties this can cause.”

Thomas said she has since opened a business account with another bank.

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Barclays accused of shutting entrepreneur’s bank account over her OnlyFans work