Author: md_admin

Up to eight more nuclear reactors could be delivered to existing sites as part of the UK’s new energy strategy.

The plan, which aims to boost UK energy independence and tackle rising prices, also includes plans to increase wind, hydrogen and solar production.

Under the government’s new plans, up to 95% of the UK’s electricity could come from low-carbon sources by 2030.

The energy security strategy includes the goal of producing up to 50 gigawatts (GW) of energy through offshore wind farms, which the Department for Business, Energy and Industrial Strategy says would be more than enough to power every home in the UK.

Rain Newton-Smith, Chief Economist at the Confederation of British Industry, said:

‘This strategy sets an ambitious bar for a more resilient, low carbon energy system for the future. Bold words must now be matched by bold actions from the government.

‘The proof will be in the strategy’s delivery, in partnership between business and government. Business believes greater energy independence must go hand in hand with delivering a net-zero, higher growth economy.

‘While it’s welcome this strategy addresses some long-standing challenges, companies are continuing to really struggle with increased wholesale energy costs right now. The Government’s next step should be to provide immediate cashflow support for firms through the Recovery Loan Scheme – and move to cut bills for energy intensive industries to maintain competitiveness.’

Internet links: GOV.UK CBI website

The Treasury has announced that it plans to recognise stablecoins as a valid form of payment as part of a wider government initiative to ‘make Britain a global hub for cryptoasset technology and investment’.

The Treasury defines ‘stablecoin’ as ‘a form of cryptoasset that is typically pegged to a fiat currency such as the dollar and is intended to maintain a stable value’. The government plans to bring stablecoins within regulation, creating conditions for stablecoin issuers and service providers to operate and invest in the UK.

Commenting on the issue, Chancellor Rishi Sunak said:

‘It’s my ambition to make the UK a global hub for cryptoasset technology, and the measures we’ve outlined . . . will help to ensure firms can invest, innovate and scale up in this country.

‘We want to see the businesses of tomorrow – and the jobs they create – here in the UK, and by regulating effectively we can give them the confidence they need to think and invest long-term.’

Internet link: GOV.UK

HMRC has named two tax avoidance schemes and their promoters for the first time, advising anyone involved to withdraw from them as soon as possible to prevent the build up of large tax bills.

Both schemes involve individuals working as contractors agreeing to an employment contract under which they are paid the National Minimum Wage (NMW). The balance of their wage is paid as a loan to try to avoid national insurance and income tax.

HMRC is letting taxpayers know as early as possible so they can steer clear of these schemes or exit them if they have already joined. This is the first time HMRC has used new powers to name tax avoidance schemes and their promoters as part of a campaign to warn the public not to get caught up in tax avoidance.

Mary Aiston, Director of Counter Avoidance at HMRC, said:

‘These schemes are cynically marketed as clever ways to pay less tax. The truth is they rarely work in the way the promoters claim and it’s the users that end up with big tax bills.

‘New legal powers allow us to name promoters and the schemes they peddle much faster, and this announcement is just the first step. But we need the public to be vigilant, and that’s why we’re also helping people identify and steer clear of these schemes through our Tax Avoidance – Don’t Get Caught Out campaign.’

Internet link: Tax Avoidance campaign website HMRC press release

Estimates show that up to £195 million in extra tax revenue has been collected via Making Tax Digital for VAT (MTD for VAT), according to research from HMRC.

The research, conducted by HMRC and peer reviewed by independent academics, showed that in 2019/20 the estimated additional tax revenue was between £185 million to £195 million, compared to a previous estimate of £115 million.

The tax authority stated that the additional revenue was due to the reduction in error on tax returns.

The research revealed that, for businesses below the £85,000 turnover threshold, the estimated additional tax revenue that is collected is £19 per business per quarter, which is a 2.2% increase from the average liability estimates for businesses not signed up to MTD.

For businesses above the threshold, the estimate of the average additional tax revenue is £57 per business per quarter and is a 0.9% increase.

Internet link: GOV.UK

The Bank of England has raised interest rates for the third consecutive time.

The Bank also warned that the Ukraine conflict could see under-pressure households hit with double-digit inflation later this year.

Members of the Bank’s Monetary Policy Committee (MPC) voted eight to one to increase rates from 0.5% to 0.75%. The move takes rates back to where they were before the pandemic struck.

Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), said:

‘With ongoing conflict in Ukraine pushing global commodity prices higher and exacerbating supply chain disruption, the MPC are clearly making moves to counter growing inflation.

‘But they will be walking a tightrope in the months ahead, having to both keep price pressures in-check and manage the impact of tighter monetary policy on economic growth – particularly against a background of rising living costs.’

Internet link: Bank of England website