Tag: 2022

  • PRESS RELEASE : Sir Jeffrey Donaldson – A return to cross-community consensus can provide foundation for restoration of devolution [November 2022]

    PRESS RELEASE : Sir Jeffrey Donaldson – A return to cross-community consensus can provide foundation for restoration of devolution [November 2022]

    The press release issued by the DUP on 10 November 2022.

    DUP Leader Sir Jeffrey Donaldson has called for a return to the principle of consensus and cross community support in order to see the restoration of devolution in Northern Ireland. His comments come as the British Irish Council is due to meet in Blackpool.

    Sir Jeffrey said,

    “As the Prime Minister and the Taoiseach meet in Blackpool there should be a recommitment to the key issue of consensus and the need for cross-community support in Northern Ireland. If the main aim of both the UK and the EU is to protect the Belfast Agreement then any solution must be built on that key foundation upon which the Agreement itself is based.

    Increasingly we hear some parties in Northern Ireland claim to uphold the Agreement on one hand whilst on the other they seek to exclude and sideline unionism. Notably, the desire to exclude one political tradition was not expressed by these same parties at any point during the three years that Sinn Fein prevented the formation of an Executive.

    The DUP has set out 7 tests by which new arrangements will be judged. These are not a unionist wish list, but are based on promises that have already been made to the people of Northern Ireland and that should be honoured. It is not too much to ask that the government stands over those promises.

    I hope the Prime Minister and the Taoiseach are as keen to see devolution restored as I am. That can only happen however when there is a stable foundation through the provision of cross-community consensus. Restoring Northern Ireland’s place within the United Kingdom and removing the barriers to trade created by the Protocol in a way that can receive unionist support will put that foundation in place.”

  • PRESS RELEASE : Jeffrey Donaldson – Protocol is key to restoring Stormont [November 2022]

    PRESS RELEASE : Jeffrey Donaldson – Protocol is key to restoring Stormont [November 2022]

    The press release issued by the DUP on 9 November 2022.

    Sir Jeffrey said,

    “The Secretary of State has announced he is amending legislation which emanates from the New Decade New Approach agreement yet one of the NDNA commitments from the Government which is not being implemented is the restoration of Northern Ireland’s place within the United Kingdom internal market.

    If the Secretary of State wants to restore Stormont, then he must ensure the Government replaces the Protocol with arrangements that unionists can support.”

    Mr Donaldson continued,

    “Whilst people speak about their desire to protect the Belfast Agreement, they fail to recognise the core element of the Agreement was consensus, yet every unionist MLA and MP opposes the Protocol.

    Progress is only made in Northern Ireland when there is a foundation based on the consent of unionists and nationalists. Indeed, some of those seeking to now abandon consent were silent for 1044 days when Sinn Fein blocked devolution over the Irish language.”

  • Nicola Sturgeon – 2022 Speech on Scotland’s Role in Tackling the Climate Emergency

    Nicola Sturgeon – 2022 Speech on Scotland’s Role in Tackling the Climate Emergency

    The speech made by Nicola Sturgeon, the First Minister, on 11 November 2022.

    We’ve likely all noticed the unusually mild autumn we’ve been experiencing recently. In fact, some days in October have felt more like summer.

    While these warm conditions are certainly unusual in Scotland, scientists are warning that they are going to become more and more common as the years go on and as climate change progresses.

    Three months ago, the UK experienced its hottest day on record. Records were similarly broken in Belgium, Germany and the Netherlands as an extreme heatwave swept across much of Europe.

    Across the world, there is a real concern that the heatwaves we are experiencing more and more often are a direct consequence of the climate crisis, and the indisputable fact that our planet is getting hotter.

    The need to act to combat climate change has never been more urgent.

    Last weekend, I travelled to Egypt for the UN Climate Change Summit, COP27, which marks the 30th anniversary of the adoption of the United Nations Framework Convention on Climate Change.

    In those thirty years, the world has come a long way in the fight against climate change and its negative impacts on our planet.

    We are now able to better understand the science behind climate change, assess its impacts, and develop tools to address its causes and consequences.

    But despite that, the situation is graver than ever.

    Most of us in Glasgow will remember the COP26 summit taking place in our city last year – with world leaders, scientists, and activists coming together for negotiations to agree meaningful actions to tackle the climate crisis.

    Glasgow proudly hosted that summit, and while it did deliver positive progress, there is no escaping the fact that COP26 did not deliver as much concrete action or financial commitments as global south countries, activists and campaigners rightly demanded.

    I attended COP27 to do what I can to further collaboration between Scotland and other countries, to build on the agreements that were reached in Glasgow and to continue Scotland’s leadership on tackling the climate emergency, especially on the important issue of loss and damage.

    COP27 is taking place against a tense and difficult global backdrop and there is no doubt that the geopolitical landscape has changed significantly in the last year.

    The impacts of climate change are being increasingly felt – with, for example, flooding in Pakistan and wildfires across the USA.

    At the same time, Russia’s illegal invasion of Ukraine is forcing countries, particularly in Europe, to rethink long-held assumptions about energy policy and energy security.

    However, that does not mean that we can row back on the commitments made in Glasgow.

    In fact, it’s more important than ever that we act, and soon, because the answer to many global challenges lies in tackling climate change and nature loss at a quicker pace.

    The current energy crisis that is putting so much stress on households and businesses in Scotland is ultimately caused by our dependence on fossil fuels.

    The solution is ending this dependence – through a just transition to renewables and energy efficiency.

    While some governments, including the UK government, seek to increase their extraction of fossil fuels in response to soaring energy prices, the Scottish Government remains committed to developing our vast renewable energy potential and emerging green technologies.

    And Scotland will continue play its part by sharing our own experiences of delivering a net zero target at home, as part of our just transition, and by helping to amplify the voices of people who are being most impacted by climate change but are often also excluded from the debate – including people from the countries of the global south, women and young people.

    No nation has all the answers, or the means, to respond alone to the scale of the problem of climate change.

    This is why bringing the global community together at COP27 is so vital, as it is only by working together that can we meet the need and urgency of the task that lies ahead.

    COP27 must put a renewed focus on the ongoing delivery of the commitments already made in Glasgow and seek agreement for more meaningful action.

    The science is clear that we may be approaching a tipping point for the twin crises of nature and climate – with the International Panel on Climate Change warning in April that it is “now or never” to limit global warming.

    Unless we act now, we will continue to see an increase in heatwaves, floods, catastrophic storms and water scarcity – a price our planet simply cannot afford to pay.

    However, is not too late for governments to act and to take positive actions which will help – including further funding to address loss and damage to help those in countries who contribute the least to global warming, yet suffer the worst effects.

    Bluntly, we owe it to future generations to act now.

    If the world is to deliver on the Glasgow climate pact, all nations need to continue to increase their ambition and take credible action to reach net zero emissions.

    I am determined that Scotland will play our full part.

  • PRESS RELEASE : PwC comments on Oct 2022 retail sales figures [November 2022]

    PRESS RELEASE : PwC comments on Oct 2022 retail sales figures [November 2022]

    The press release issued by PWC on 18 November 2022.

    Commenting on the Office of National Statistics retail sales index for Oct 2022, Lisa Hooker, Industry Leader for Consumer Markets at PwC, said:

    While headline retail sales increased slightly in October on both a volume and pound note basis compared with the previous month, this was entirely due to the loss of a trading day in September for the Queen’s funeral.

    Worryingly, on an annual basis, the 2.9% increase in overall retail sales excluding petrol was accounted for by the record inflation that was reported earlier this week. On a volume basis, shoppers were actually buying 6.7% less than last October.

    Supermarkets were particularly hard hit last month, as shoppers bought less, wasted less and traded down to cheaper alternatives in the face of 16.4% inflation, a 45 year high. But, even apart from groceries, non-food sales continued to fall behind pre-pandemic levels as consumers started to cut back as the impact of higher energy and food bills hit and more is spent on second hand goods.

    One saving grace for the high street is the return of shoppers from online into physical stores. The proportion of retail sales online, while higher than before the pandemic, continued to fall back, helped by both the mild weather and a growing preference for physical shopping among younger generations.

    With little over a month to go until Christmas, retailers will be hoping that the picture improves. Particularly compared with the disappointment of last year when the Omicron variant cancelled many festive plans at the last minute. We think there is a good chance of one last hurrah before the tax rises announced in the Autumn Statement hit. For example, shoppers already tell us that they’ll be spending £0.5 billion more in the Black Friday sales next week.

    However, with the country facing the biggest decline in real disposable income since the end of World War II, and continued cost headwinds in the form of higher energy and input costs and National Living Wage increases, there is no question that the retail sector will face unprecedented challenges in 2023.

  • PRESS RELEASE : 1 in 4 consumers set to spend on Black Friday despite economic downturn [November 2022]

    PRESS RELEASE : 1 in 4 consumers set to spend on Black Friday despite economic downturn [November 2022]

    The press release issued by PWC on 17 November 2022.

    Despite the cost-of-living crisis, interest in Black Friday has held up. PwC unveiled its annual Black Friday research which gives a glimpse of how shoppers are kicking off the festive rush for retail.

    Interest has maintained from last year, with 37% of consumers interested and may buy (up 2% from 2021) and 24% of consumers stating they will definitely buy – matching 2021 levels. This is in contrast to 2020 levels where only 16% of consumers planned to purchase in the Black Friday period.

    With almost half of under 35s definitely spending (48%), interest from male shoppers sits 10% higher than than females. Amongst men, 29% plan to definitely purchase with 34% interested opposed to 19% of women definitely spending and 35% interested.

    Kien Tan, Retail Director at PwC comments:

    “With the World Cup approaching and the first opportunity to browse high streets without pandemic restrictions in three years, it may not be a surprise that almost two-thirds of men will be shopping over the Black Friday period, with the majority of them (57%) looking for new tech or electrical products.

    By comparison, female shoppers intend to spend half as much as men (£168 vs £310), and are mostly using Black Friday to get a head start on Christmas shopping, with 71% planning to buy for their family.

    Meanwhile, interest in Black Friday is highest amongst under 25s: 9 out of 10 Gen Zers say they’ll be looking for a bargain, and three-quarters of them are planning to buy a treat for themselves.”

    PwC estimates the average spend per consumer to be around £238 which will add £0.5billion extra to the retail economy this year taking the overall spend on Black Friday bargains to £7.5billion.

    Shoppers will predominantly be shopping for electricals (51%), fashion (32%) and Christmas stocking fillers (28%). Interest in homewares (25%) and beauty (24%) have increased slightly from 2021. Shoppers are also showing a renewed interest in shopping in store for a bargain rather than online, with 19% planning to hit the high street and 12% planning to click & collect – a 2% increase in both arenas from 2021. 69% plan to shop online – a 4% decrease from 2021.

    Lisa Hooker, Industry Leader for Consumer Markets at PwC comments:

    “There has been a lot of commentary that shoppers are less interested in Black Friday this year, but that is not what consumers are telling us, with expected spend estimated to be £0.5bn higher than last year as people look for treats and bargains or try to spread the cost of Christmas over a longer time period.

    Consumers have been closely monitoring their favourite brands in anticipation of big ticket electronics, more pricey winter wear or Christmas stocking fillers being discounted, and they’re in search of bargains more than ever given rising inflation.

    Despite the consumer spending headwinds, many retailers have held their nerve this year, with the lower levels of promotional activity we saw last Autumn continuing into 2022. However, many retailers will still see Black Friday as an opportunity to engage with their customers, clear excess stock, and offer value for money, so we are expecting the usual ramp-up in sales and discounts as we approach the end of November.”

  • PRESS RELEASE : Autumn Statement – PwC comments on the Triple Lock and Lifetime Annual Allowance (LTA) [November 2022]

    PRESS RELEASE : Autumn Statement – PwC comments on the Triple Lock and Lifetime Annual Allowance (LTA) [November 2022]

    The press release issued by PWC on 17 November 2022.

    Raj Mody, global head of pensions at PwC comments on the triple lock and state pension:

    “The Chancellor’s decision to retain the triple lock will ensure the state pension does not lose value in real terms. Based on September’s inflation rate of 10.1%, it will take the basic rate from £142 to £156 and the new state pension up from £185 to £204 a week. For the 12.5 million pensioners who fully rely on the state pension this will be welcome news.

    “Looking forward, if the triple lock continues, then it’s likely that the state pension will catch up with the tax-free Personal Allowance by the end of the 5-year period that the Personal Allowance has been frozen for. That will create an interesting policy situation for future Governments, which may be better tackled earlier than later. To end up in the situation where the state pension itself is taxed seems odd, for the Government to give out with one hand and then take back with another.”

    Roshni Patel, DC pensions and benefits lead at PwC comments on the lifetime allowance:

    “There was no further news on the Lifetime Allowance or Annual Allowance, suggesting they will continue to remain frozen for two more years. People’s pensions savings will start catching up with the frozen Allowance. It equates to £53,000 per annum for a Defined Benefit (‘DB’) scheme member, and would deliver less than that for a Defined Contribution (‘DC’) member, maybe around £45,000 depending on the going rate for annuities at the time of retirement. Apart from the disparity between DB and DC savers, these amounts might seem a lot but won’t feel like that in real terms at the end of the frozen period.

    “With the reduction in dividend and capital gains tax allowances, it does make saving into a pension or ISA more desirable, instead of holding investments directly.”

  • PRESS RELEASE : Autumn Statement – PwC comments on business rates support [November 2022]

    PRESS RELEASE : Autumn Statement – PwC comments on business rates support [November 2022]

    The press release issued by PWC on 17 November 2022.

    Phil Vernon, head of ratings at PwC, says:

    “The Chancellor has correctly identified that one of the core issues with business rates is that the tax rate is too high and so freezing the rates multiplier in 2023/4 and the introduction of a package to reduce the burden will be welcomed by many businesses. However, these announcements will have to dovetail with the effects of the revaluation next year, and so properties facing an increase in their rateable value will still see an increase in their rates bills.

    “This package continues the focus on retail, leisure and hospitality businesses relief, upping the relief to 75% of rates payable. But with the relief being capped at £110,000 per business, larger retailers and other sectors will be facing full business rates bills.

    “Confirmation that the rates revaluation will proceed alongside a transitional relief scheme that will focus only on those rate bills that are increasing, will provide some reassurance that the highest rises in business rates will be curtailed. But as with all revaluations we will see winners and losers. The new rateable values for 2023 are due to be released imminently and so we should soon have a much clearer idea of the effect on business from next year.”

  • PRESS RELEASE : Autumn Statement – PwC comments on energy taxation [November 2022]

    PRESS RELEASE : Autumn Statement – PwC comments on energy taxation [November 2022]

    The press release issued by PWC on 17 November 2022.

    Colin Smith, Energy and Infrastructure Tax Partner at PwC UK said:

    “The Chancellor has made changes to the Energy Profits Levy, both by extending its duration to March 2028 and raising the rate from 25% to 35%. Today’s announcements increase the overall tax rate on the UK’s oil & gas producers to 75%. The cash benefit of the investment allowance remains broadly unchanged for most expenditure.

    “A new 45% Electricity Generator Levy will apply where UK nuclear, renewable and biomass sourced electricity generators sell electricity at prices over £75MWh from 2023 to 2028. The overall headline corporate income tax burden on these businesses will therefore be 70%. This levy, which is charged on revenue rather than profit, replaces the cost-plus revenue cap proposed in the Energy Prices Act.

    “These tax increases are forecast to raise £34 billion between 2023 and 2028. The amount of revenue raised will depend on volatile energy prices and may be adversely impacted if higher tax rates and the uncertainty caused by frequent tax law changes reduce activity and investment in the UK’s energy sector.

    “Improvement in R&D credits for large companies will be welcome, particularly for those investing in new technology and innovations to support energy transition projects.”

  • PRESS RELEASE : Autumn Statement – PwC comments on Electric Vehicle Excise Duty [November 2022]

    PRESS RELEASE : Autumn Statement – PwC comments on Electric Vehicle Excise Duty [November 2022]

    The press release issued by PWC on 17 November 2022.

    Cara Haffey, Automotive Sector Leader at PwC UK, said:

    “The shift to zero emission vehicles is well underway and through one lens today’s announcement can be seen as a way of leveling the playing field by ensuring those drivers pay their fair share of road taxes.  However the balance is that we need to encourage this transition to be more rapid and therefore we hope this is not a disincentive to change.

    “Indeed, despite the existing challenges in the UK market around EV adoption, demand remains strong, with UK consumers ranking third in likelihood to invest in an EV. In fact our research showed that in July of this year 5% of consumers already own an electric vehicle, and a significant 31% plan to buy one in the next two years.

    “Today’s change may dampen appetite, however, an opportunity may emerge for the private sector to offer more incentives to reduce  consumers’ initial outlay and answer customers’ needs  for vehicles  that take in price and ease of use.”

  • PRESS RELEASE : Autumn Statement – PwC comments on Solvency II [November 2022]

    PRESS RELEASE : Autumn Statement – PwC comments on Solvency II [November 2022]

    The press release issued by PWC on 17 November 2022.

    Isabelle Jenkins, Leader of Financial Services at PwC UK, said:

    “The Government is clearly dealing with a range of economic challenges, so it’s encouraging to see the Chancellor reaffirm his commitment to the importance of financial services. A dynamic financial services sector is a prerequisite for the success of the other growth industries identified by the Chancellor.

    “The plan set out by the Government today for Solvency II will see the release of capital, which underpins the government’s desire to encourage growth, something that will no doubt be welcomed by the sector. However, the rest of the industry will have to wait to hear what other areas of regulation the Government will seek to change. It is of course right that the Government ensures the UK’s regulatory framework is fit for purpose, but providing certainty and stability as soon as possible will also be important.

    “Finally, as one the most innovative and digitally enabled sectors in the economy, transformation is being driven through the deployment of technologies such as Cloud and artificial intelligence. With future opportunities from technologies such as distributed ledger technology and quantum computing, the announcement that Sir Patrick Vallance is to lead work to consider how the UK can better regulate emerging technologies makes good sense.”