The Chancellor encourages investment, funding for Cultural projects, and Business Rates Relief are confirmed for 2025/26
Today’s blog post covers a variety of business news, including Rachel Reeves encouraging investment in emerging markets, funding for Cultural projects has been confirmed, using a human-centred approach for AI and the new Business Rates Relief for the next tax year.
Chancellor encourages investment in emerging markets
The Chancellor Rachel Reeves met recently with major financial firms at Canary Wharf, encouraging them to invest in emerging markets to boost Britain’s economy.
A key initiative launched at the meeting was the “London Coalition on Sustainable Sovereign Debt,” which aims to improve debt financing in developing countries by bringing together private sector and government stakeholders.
This Coalition is expected to strengthen trade ties, promote economic growth and position London as a global leader in development finance.
As a result of this initiative there may be new opportunities for British businesses, particularly in areas such as financial services.
Cultural projects to receive £67 million of funding
10 major culture projects around the UK are set to receive additional funding amounting to more than £67 million.
The projects and their awards are as follows:
- National Railway Museum, York – £15 million
- ‘Temple Works’, Leeds – £10 million
- International Slavery Museum and Maritime Museum, Liverpool – £10 million
- National Poetry Centre, Leeds – £5 million
- City Centre Cultural Gateway, Coventry – £5 million
- Three cultural projects in Worcester – £2.3 million
- Venue Cymru, Conwy – £10 million
- Newport Transporter Bridge, Wales – £5 million
- Victoria and Albert Museum, Dundee – £2.6 million
- Shore Road Skills Centre, Belfast – £2.2 million
The projects may provide a welcome boost to attracting tourism to these areas, as well as opportunities for local construction and other businesses.
See: https://www.gov.uk/government/news/regional-growth-to-be-boosted-by-67-million-for-culture-projects
AI needs a human-centred approach
The Institute of Chartered Accountants in England and Wales (ICAEW) have published an insight piece based on a study carried out by technology market analyst, IDC.
The study indicates that AI could help CFOs with some of their biggest challenges, but only if it is human-centred. Finance teams in businesses need to build practical applications of AI that work along with them instead of replacing them.
The study confirms, as has been seen in the wider press in recent weeks, that over reliance on AI in finance could lead to mistakes. However, having the correct goals and properly understanding workflow processes can help in adopting AI with confidence.
What is the learning point?
While it can be tempting to leave it to those who are more technology-minded (or younger), this leaves a danger of technology leading the way. Instead when business leaders get involved in AI adoption they can steer it in a way that will benefit the business and minimise problems.
Charity investigated over financial controls
The Charity Commission have launched a statutory inquiry into Zlotchiv over concerns about its financial controls.
It appears that irregularities in the charity’s financial management include a series of bounced cheques from the charity’s bank account alongside payments that appear to be related party payments but were not disclosed by the charity in its annual returns.
A statutory inquiry allows the Charity Commission to formally investigate and use protective powers for benefiting the charity and its beneficiaries, assets, or reputation. Once the extent of risk has been determined, the Commission will decide what action is needed.
The inquiry emphasises the importance of charities maintaining good financial controls. It is also important to respond and cooperate with the Commission in the event of queries to avoid a simple compliance matter escalating to a statutory inquiry.
See: https://www.gov.uk/government/news/regulator-investigates-charity-over-financial-controls
Arts Everywhere Fund to provide £270 million of support
The creative industries provide about £124 billion to the UK economy, with the cultural sector supporting 666,000 jobs. However, many arts and culture related venues, museums, libraries and heritage buildings are struggling.
The Arts Everywhere Fund will provide additional financial support to the creative industry, particularly aimed at organisations in urgent need of financial support to stay up and running and to carry out vital infrastructure work.
The government sees the creative sector as having potential for growth and is hoping this support will drive growth and help to create opportunities for young people to learn creative skills and protect jobs.
For further details of how funding will be allocated over the next financial year, see: https://www.gov.uk/government/news/major-investment-to-boost-growth-and-cement-britains-place-as-cultural-powerhouse
Business Rates Relief confirmed for 2025/26
A letter from the government’s Non-Domestic Rates Team to councils has confirmed the Business Rates Relief measures for 2025/26 announced at the 2024 Autumn Budget. Here’s a summary.
Standard and small business multipliers
This confirms that:
- The non-domestic rating multiplier will be 55.5p.
- The small business non-domestic rating multiplier will be 49.9p.
Relief for retail, hospitality and leisure properties
For retail, hospitality, and leisure properties, 40% relief (capped at £110,000) is available for 2025/26 under the Retail, Hospitality and Leisure Business Rates Relief scheme. Guidance has been published setting out the eligibility criteria. Local authorities are expected to include details of the relief to eligible ratepayers in their 2025/26 rates bills.
The £110,000 cap is per business and not per property. As has been the policy in previous years, businesses who would be eligible for relief above £110,000 if there were no cap in place, should be awarded relief up to the full value of £110,000.
What about private school charities?
The Non-Domestic Rating (Multipliers and Private Schools) Bill has passed the final stages in the House of Commons and is now working its way through the House of Lords.
The measure to remove charitable rate relief from private school charities is subject to this legislation being enacted. It is still expected that the relief will be removed from 1 April 2025. However, local authorities have been told that they should not issue bills with the relief removed until after the law’s been enacted.