Insights Archives

Tax changes in autumn budget 2024: Making employee ownership trusts (EOTs) more appealing?

Posted on 13 December 202419 March 2025 by Sarah O'Sullivan

Capital Gains Tax (CGT) and relief changes: How do these relate to EOTs?

The Autumn Budget 2024 saw CGT rates rise to 18% and 24% with effect from 30 October 2024, up from 10% and 20% for lower and higher rate taxpayers, respectively. There are also phased changes to Business Asset Disposal Relief (BADR), it remains at 10% until April 2025 and will increase to 14% for disposals made on or after 6 April 2025 and 18% of disposals made on or after 6 April 2026.

BADR is available on qualifying capital gains arising on disposals of certain assets, including shares in trading companies, provided the shares have been held for two years before disposal, the seller has been an officer or employee of the company and holds at least 5% of the ordinary share capital. There is a £1 million cumulative lifetime limit for disposals on or after 11 March 2020.

With the CGT rates on a sale to an Employee Ownership Trust (EOT) being 0%, these increases in CGT rates might mean that EOTs are more attractive compared with a traditional sale.

Such generous tax relief, while attractive, is not the only consideration when contemplating an EOT. It will be important to consider:

The future profitability of your company, since the purchase price tends to be funded from future company profits over quite a long period of time (five to 10 years) and be able to fund growth.
Whether your employees are ready for the transition, to ensure the company can sustain or grow its profitability.
Whether you are ready to hand over control of your business to the EOT. While a selling shareholder may continue to work in the business and sit on the board of the EOT and the company, they will not be able to form a majority on the board of the trust, and the trust will have ultimate control of your company.

EOTs – What has changed?

During the Budget, the Government also announced changes to EOT legislation, following a consultation in 2023, but these are unlikely to impact EOTs greatly, with many of the practices that have been tightened up already being followed; that is certainly the case for the EOTs we at Tees have been advising on. The changes apply from 30 October 2024.

The announced changes:

Ensure that former owners (and persons connected with them) cannot retain control of the company post-sale by retaining control of the EOT.
Require that the trustees of the EOT are UK residents at the time of disposal to the EOT
Require the EOT trustee to take reasonable steps to ensure that the price paid for the company’s shares do not exceed market value.
Requires individuals to provide additional information to HMRC at the point of claiming the relief.
An increase to the timeframe within which relief can be withdrawn from the selling shareholders if there is a disqualifying event (i.e. a breach of the EOT conditions) post-disposal, extending it from the end of the first tax year to the end of the fourth tax year following disposal.
Makes a small adjustment to the conditions for obtaining Income Tax relief on annual bonuses made to employees of EOT owned companies, to allow for directors to be excluded from the bonus award.
Provides legislative certainty over the distributions tax treatment of contributions paid to the trustees of an EOT to repay the former owner for their shares, by introducing a specific relief which covers such contributions, which should mean fewer HMRC clearance applications relating to EOT transfers.

Are EOTs worth considering?

With the imminent changes in CGT, and the EOT legislative structure remaining aligned with current practice, EOTs are an attractive solution for addressing succession in some businesses. The interest in EOTs has increased in recent years, with many seeing them as a viable option that benefits their company and themselves, and we expect that trend to accelerate.

Tees Law have the expertise and experience to assist shareholders with the transfer to an EOT, protecting their interests by ensuring the documentation meets the legislative requirements and protects against the occurrence of disqualifying events.

How can we help?

If you are considering your options for succession planning, Tees Law has a large team that can advise you on all aspects of business succession planning, including EOTs and other employee benefit trusts. Please get in touch with Tracey Dickens or Lucy Folley, who will be pleased to assist you.

10 great financial advice tips for efficient money management

Posted on 12 December 202428 March 2025 by Sophie Soraf

As wealth management specialists, we are often asked, ‘Where and how do I start with my money?’ or told, ‘I never seem to have money when I need it’. Understanding how to hold and manage our hard-earned wealth is key to ensuring that we always have funds when needed.

Understanding the basics of money management is the key to finding financial freedom. Our funds fall into three main categories:

Short-term, hands-on money required for day-to-day expenses
An easily accessible ‘rainy day’ fund to cover unforeseen costs, or nice-to-have things like holidays
Long-term investments for life events, for example, saving for retirement, buying a house or paying for a child’s wedding

So, if you would like to manage your money better, read on to find out our 10 top tips for efficient money management.

1. Have a financial plan

Let’s consider the three categories of funds outlined above. Without a financial plan, how will you know how much you need in your current account to cover daily living expenses, how much you can afford to save or invest, or how much you can afford to pay towards your pension each month?

Common components of a financial plan will include:

Financial goals and objectives – where do you want to be in X years?
Income and outgoings – what are you bringing in and paying out? How much can you afford to spend without running out of money?
Protection needs – have you planned for life’s unexpected events, such as losing your job or being too ill to work for more than a few months?
Savings & investments – how much of your money do you have in savings accounts and investment portfolios? Are your savings and investments still offering strong returns? What changes might need to be made?
Retirement – are you currently saving enough for retirement?
Issues and problems – are there any weaknesses or problems that could affect your financial situation? How might these be rectified?

2. Draw up a budget

A budget is the answer if you’re continually running out of money before payday. Starting with your take-home income, first list the bare essentials – i.e., what must be paid out to keep your family sheltered, fed and warm – before moving on to those outgoings that are not so strictly necessary. In order of priority, these are the typical outgoings that feature on most budgets:

Housing costs – such as your rent or mortgage, bills and home insurance
Groceries – how much do you need to feed your family each month?
Other essential outgoings include shoes and clothing, school uniforms, car insurance and road tax, commuting costs, paying off debt, etc.
Savings – once you have prioritised your essential expenses, it is important to budget for savings, such as your emergency savings fund and pension contributions, before you budget for other daily expenses
‘Nice-to-haves’ – this category can include expenses such as eating out, leisure activities, hobbies or holidays

3. Focus on paying off debt

Nothing can derail your finances faster than accumulating high-interest debt, for example, on credit or store cards. If you use a credit card, it is essential to prioritise paying it off on time to avoid spiralling debt that can seriously harm your credit score.

To avoid debt, stick closely to your budget. If your budget says you don’t have the money to buy something this month, don’t use your credit card to do so. The repayments will eat into next month’s money and make it increasingly challenging to stay on track.

4. Save for the future

Setting aside any savings before moving on to non-essential expenses is important. To help you prioritise your savings, consider what would happen if you faced an unforeseen expense. Could you afford to pay out for a new boiler if yours broke down? Or a large veterinary bill? What if you lost your job? A general rule of thumb is to build up three months’ worth of essential outgoings in an instant access savings account for emergencies.

However, instant access accounts typically offer lower interest rates, meaning the return on your money will be minimal. If you already have sufficient emergency savings, it may be worth putting further savings away in a fixed-term savings account, which offers higher interest in exchange for locking your money away for a set period or looking into investment.

5. Invest for higher returns

With interest rates at rock bottom, savings accounts offer minimal interest on savers’ hard-earned cash. Investing is a way of getting higher returns in exchange for a certain level of risk. Stock markets can go up and down, so your investments can fall and rise; however, a financial adviser can assist you in building an investment portfolio that reflects your risk profile. This means you can choose the level of risk you want to accept (although lower risk often means lower returns).

6. Protect your loved ones

According to Royal London, just two in five people say they’d be able to cope for more than three months if they lost their income. If your situation is similar, then it’s important to put in place protection policies, such as life insurance (which pays out a lump sum to your family if you die), critical illness cover (which pays out if you develop a serious or terminal illness) or income protection insurance (which pays a percentage of your monthly income if you are too unwell to work), to safeguard your loved ones against unexpected financial blows.

7. Start contributing to your pension as soon as you start work

When you start work in your late teens or early 20s, retirement seems a lifetime away. But with living expenses rising and even the full State Pension inadequate to fund a comfortable retirement, the sooner you start saving, the more opportunity your investments will have to grow.

According to research, savers, on average earnings, will need to build a pension pot of at least £300,000 to retire well – which is likely to increase. With all employers now obliged to offer a workplace pension under the auto-enrolment scheme and to make contributions for all employees, it’s never been easier to start saving. Your contributions will be taken out of your salary along with tax and national insurance contributions, so you won’t have to worry about making space in your budget. If you are self-employed, you must contribute into a personal pension to avoid a compromised financial situation later in life.

8. Take full advantage of tax allowances

You can keep more of your hard-earned money by making the most of your yearly tax allowances. For example, you can save up to £20,000 annually into an Individual Savings Account (ISA) and pay no Income Tax on the interest or dividends received. You will not have to pay any capital gains tax on profits from investments in a stock and shares ISA. You can also pay up to £60,000 per year into your pension and benefit from pension tax relief.

Other useful tax allowances include:

Tax-free allowances on financial gifts
Capital Gains Tax annual allowance
Personal Savings Allowance

9. Make a Will

We work closely with our legal team to ensure all clients have a valid, up-to-date Will in place, recording how you would like your assets, such as property, savings and investments, to be distributed when you die. If you die intestate (i.e., without a Will), your assets will be distributed according to intestacy law, a set of rules that dictates how assets should be dealt with without a Will. If you are not married to your partner, for example, they may be unable to inherit. Having a Will also means you can plan to pass down your money in the most tax-efficient way possible.

10. Seek professional financial advice

There’s a great deal to consider when dealing effectively with your finances, so it’s no wonder many people feel overwhelmed. Seeking professional financial advice will help you manage your money better on a day-to-day basis and help you with life’s big financial decisions. Picking the best mortgage for your circumstances; putting in place adequate protection cover to keep your family safe; calculating the retirement income you’ll need and ensuring you have a solid plan in place to achieve it; helping you clear your debt and get your finances in better shape for the future… a financial adviser can help you achieve all of this and more.

To contact our financial specialists, please call 0808 231 1320, and we will be delighted to assist you.

This material is intended to be for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. It is not intended to provide and should not be relied on for accounting, legal or tax advice, or investment recommendations. Past performance is not a reliable indicator of future returns and all investments involve risks including the risk of possible loss of capital. Some information quoted was obtained from external sources we consider to be reliable.

Tees is a trading name of Tees Financial Limited which is authorised and regulated by the Financial Conduct Authority. Registered number 211314. Tees Financial Limited is registered in England and Wales. Registered number 4342506.

How to sell a property in France

Posted on 12 December 202423 March 2025 by Sarah O'Sullivan

Selling property in France is a different experience compared to the UK, so it’s crucial to seek expert legal advice before making any commitments. At Tees, our bilingual legal specialists offer comprehensive support to ensure a smooth, stress-free transaction.

Understanding the French property market

The French real estate market often leans towards a buyer’s market, influenced by political and economic factors. While this may affect your sale price, it can also attract more potential buyers looking for opportunities.

Property valuations and Estate Agent mandates

Many estate agents provide free valuations, typically in exchange for securing a sales mandate. Ensure the mandate is non-exclusive if you’d like the flexibility to engage multiple agents. Carefully check the commission terms before signing.

Setting a realistic asking price

Pricing your property appropriately is key. Overpricing can deter buyers, especially those seeking quick transactions. Properties left on the market for extended periods may raise concerns about potential issues.

Mandatory property diagnostics

Sellers are legally required to provide diagnostic reports covering aspects such as asbestos, electricity, and energy performance. Having these reports ready or arranging them promptly can streamline the process.

The Compromis de Vente

The initial sales contract in France, known as the “compromis de vente” or “promesse de vente”, is typically drafted by the estate agent. However, it is essential to have this reviewed by a qualified lawyer. Your lawyer will:

Ensure all necessary disclosures are made.
Identify any risks or hidden defects.
Include appropriate liability exclusion clauses.

Capital Gains Tax (CGT) in France

For UK residents, French CGT is 19%, with an additional 7.5% solidarity tax, totalling 26.5%. EU residents face a higher rate of 36.2%, including social charges. Tax exemptions may apply based on ownership duration:

22 years for tax exemption.
30 years for social charges exemption.
Full exemption applies to main residences.

Avoiding common pitfalls

Misrepresenting a holiday home as a main residence to evade tax is strongly discouraged. French authorities cross-reference property records and may impose penalties for under reporting sales prices. Additionally, side payments outside the notaire’s account are illegal and can lead to severe fines.

In cases of separation or divorce, the ownership period for CGT purposes remains unaffected, provided one party continues to reside in the property.

Optimising your tax position

Sellers can reduce their taxable gain by including eligible expenses, such as renovation costs and notarial fees, in the property’s acquisition price. Our legal experts can advise on maximising these deductions.

Why choose Tees for your french property sale?

Our bilingual team offers tailored legal guidance, including:

Pre-sale advice on tax implications and seller responsibilities.
Contract reviews to ensure your interests are protected.
Liaison with notaires to negotiate terms and arrange signings.
Compliance checks on mandatory declarations and diagnostics.
Secure fund management for smooth financial transactions.

With Tees, you benefit from expert legal support at every stage of your French property sale. Contact us today for personalised advice and a hassle-free experience.

The biggest financial asset: Protection

Posted on 11 December 202428 March 2025 by Sophie Soraf

What comes to mind when considering an individual’s biggest financial asset? A house? Investments? Perhaps a classic car like the Ferrari 250 GTO? Surprisingly, the most significant financial asset is often overlooked: yourself! For business owners and employees alike, the knowledge, skills, and effort you bring to the table are what drive your income and wealth. As the saying goes, “knowledge is power,” and protecting yourself is essential.

The cornerstone of any financial plan rests on the individual generating the income. Safeguarding your income is crucial—because if it disappears, what then? All financial stability starts with a solid foundation.

To put this in perspective, consider data from the Office of National Statistics (ONS), which estimates that in 2022, the average UK worker aged 16 to 65 could earn up to £606,000 in their lifetime. Despite this, a worrying trend emerges; in 2022, only 35% of the UK population has a life policy in place. This leaves 65% of people unprotected in the event of illness, injury, or worse.

In an unpredictable world, planning for the unexpected is not just prudent; it’s essential. A well-designed protection policy can offer peace of mind and financial security for you and your loved ones.

Whether you’re looking to safeguard your family, secure your income, or provide for future needs, understanding the different policies and what they protect can help you make informed decisions and seek professional help.

There are four types of protection policies we will talk about:

Life insurance
Income protection
Family income benefit
Critical illness cover

The Importance of Protection:

Life is full of uncertainties. Whilst we cannot predict the future, we can prepare for it. Setting up a protection policy ensures that when life takes an unexpected turn, whether due to illness, injury, or an untimely death, your financial obligations remain covered. Bills still need to be paid, food still needs to be bought, and life must go on.

Protection policies are an essential part of a robust financial plan. They provide support for income loss, cover medical expenses, and ensure that loved ones remain financially secure. Let’s explore the different types of protection available.

Life insurance:

Life insurance is more than just a policy; it’s a promise. It ensures that if the policyholder passes away during the policy term, a lump sum will be paid to their chosen beneficiaries. These proceeds can help alleviate financial hardships during an already difficult time.

Life insurance is especially beneficial for those with dependents, such as children, a partner, or relatives who rely on their income. It can cover significant expenses like:

Mortgage repayments
Funeral costs
Children’s education fees
Day-to-day living expenses

The lump sum payout is tax-free and can be used however the beneficiaries see fit. This gives policyholders peace of mind, knowing that their family will remain financially stable even in their absence. For families facing the dual challenges of emotional loss and financial strain, life insurance is a vital safeguard.

Income Protection:

Have you ever considered how you would manage your finances if you could not work due to illness or injury? For most of us in the UK, our income is the greatest financial asset. It pays for the essentials: housing, bills, and food whilst simultaneously enabling us to enjoy life’s luxuries.

According to the ONS, the average gross annual earnings for full-time employees in 2024 was £37,430, so protecting this income for life essentials is vital. However, life is unpredictable, and unforeseen events can disrupt your ability to work.

Income protection insurance provides a safety net in such scenarios. If you are unable to work due to illness, injury, or other circumstances, the policy pays out a regular income—typically between 50% to 70% of your pre-tax earnings. These tax-free payments continue until you recover, retire, or reach the end of the policy term.

This type of coverage supports your everyday expenses and protects other financial assets, such as investments and savings, which you might otherwise need to dip into. Many assume they can rely on savings or family support during tough times, but this isn’t always feasible.

Family Income Benefit:

Family income benefit is a type of life insurance policy aimed towards families and those with dependants, such as children, parents, partners or siblings. It is designed to pay a regular tax-free income to your family if you were to pass away during the term of the policy.

Now what is the difference between Life insurance and Family Income Benefit? They both payout on your death, right?

Yes, however, a family income benefit pays out an ongoing monthly tax-free income, compared to a life insurance that pays out a tax-free lump sum payment.

This can provide stability for the beneficiaries who receive a steady income rather than having to manage a lump sum payout.

This policy ensures a steady cash flow to help your family with daily expenses up until the stated term period. For example, you might choose a 30-year term with a monthly payout of £1,000. If you were to pass away 10 years after taking out the policy, your beneficiaries would receive a tax-free income of £1,000 per month for the next 20 years.

Critical Illness Cover:

Critical illness cover is designed to pay out a tax-free lump sum if you were to get diagnosed with a listed “critical illness” that the policy covers, such as cancer, heart attack or stroke. Treatment for such conditions can be prolonged with the added burden of financial, emotional, physical and mental strain.

You will be entitled to receive the lump sum once you have been diagnosed with a specific illness listed under the policy. Upon receiving the lump-sum payment, it is up to you as to how you use the money, whether you want to pay off the mortgage, daily expenses, home alterations or a health-related cost. This can relieve some, if not all, financial burdens that you can face during a challenging time.

It is always important to remember that with all policies, you are paying for peace of mind for yourself and/or loved ones if the worse were to happen.

If we insure our homes and cars, why would we not insure our lives? By protecting the foundation of our financial structure, which is ourselves, this ensures you and/or loved ones have a level of financial security no matter what challenges life throws at you. You don’t build a house on loose foundations, do you?

Protect yourself – it’s the most valuable thing you can do!

Tees is a trading name of Tees Financial Limited which is authorised and regulated by the Financial Conduct Authority. Registered number 211314.

Tees Financial Limited is registered in England and Wales. Registered number 4342506.

Employers expected to take reasonable steps to prevent sexual harassment

Posted on 4 December 202421 March 2025 by Sarah O'Sullivan

Recent media coverage of allegations involving Gregg Wallace, underscore the challenges employers may face in managing third-party behaviour. While the specifics of the case remain unconfirmed and allegations are denied, the complaints shine a light on the importance of putting in place and enforcing robust preventative measures to mitigate such issues and risks. Employers should consider these situations when drafting and enforcing policies, particularly for roles or events involving significant interaction with external parties or clients.

The new duty

The Equality and Human Rights Commission (ECHR) have published guidance on the ‘reasonable steps’ employers should take to prevent sexual harassment at work.

As of 26 October 2024, employers must now take reasonable steps to prevent sexual harassment occurring at work. The Worker Protection Act 2023 changes section 40 of the Equality Act 2010 to include the new preventative duty.

As well as this, where a case of sexual harassment is proven, the tribunal will penalise the employer if they are also found to be in breach of the new duty, by increasing the employee’s compensation by up to 25%.

What are reasonable steps?

For employers, there is no exhaustive list of steps which need to be taken and what will be considered reasonable will be decided by a tribunal on a case-by-case basis. Therefore, recent guidance released by the ECHR gives employers the best possible idea of the steps which should be considered.

“Reasonable steps” or “all reasonable steps”

The Worker Protection Act was originally drafted to require that employers take “all reasonable steps” to prevent sexual harassment, but this was later diluted to a lower threshold of taking “reasonable steps”.

However, the Employment Right Bill is set to reinstate the higher threshold of taking all reasonable steps. If an employer has missed just one step to prevent sexual harassment which would be considered reasonable for them to have taken, the employer may face enforcement action from the ECHR or claims by the employee. The exact nature of how this will be enforced is not yet clear and we can expect more guidance in due course. For now, the importance of considering these issues and being ready with policies, procedures, training and guidance is key to mitigate the risks of claims and promote a safe and legally compliant workplace.

Employers should diligently follow the guidance below with careful consideration that the expected standard to prevent sexual harassment is going to be raised once again. Some of these changes are set to be introduced no earlier than 2026, however thorough preparations now will ensure a more efficient and cost-effective review of preventative measures next year.

Anti-harassment policies

Whilst an employer may already have in place some form of anti-harassment policy, it is now essential this addresses the prevention of sexual harassment specifically. Some key policy provisions suggested by the Equality and Human Rights Commission (ECHR) include:

Set out the preventative steps the employer is taking.

Site disciplinary action for those committing sexual harassment.
Allegations should be considered on a case-by-case basis, considering aggravating factors such as the seniority of the perpetrator.
Provide a definition of sexual harassment and include examples to promote clarity.
Include a procedure for how complaints will be handled to reassure victims and deter perpetrators, particularly with regards to third-party harassment.
The effectiveness of the policy should be reviewed at regular intervals.

Communication with workers

The guidance recommends promoting open communication amongst employees, to ensure employers have a good understanding of their work environment and that employees have a good understanding of the sexual harassment policy. This may be done via one-to-one’s, surveys or workshops for example. These will indicate the effectiveness of the preventative steps being taken and assist in identifying if changes need be made.

Risk assessments

A thorough risk assessment that is routinely reviewed and considered will demonstrate that an employer is being proactive in identifying potential circumstances whereby sexual harassment may take place. Putting in place appropriate preventative measures will demonstrate that they have acted on their assessments and used the results to guide decisions on what steps need reviewing or adding.

The guidance considers environmental factors which should be considered when conducting risk assessments, including settings with power imbalances, lack of diversity, lone or night working, customer-facing work and external or social events.

Reporting systems

Ensuring that a reporting system allows for anonymous complaints to be raised will encourage complainants to come forward and deter perpetrators. Employers should keep thorough records of complaints raised and ensure these are kept confidential. An effective reporting system will assist employers in identifying any patterns which should in turn be considered during risk assessment reviews.

Training

Proactive and high-quality training for all members of staff should educate employees on how to identify sexual harassment, what to do if they experience or witness it and how to manage any complaints raised. Specialised training may be exceptionally important in work environments where third parties are frequently in contact with employees. To improve the impact of training, they should offer refresher training at regular intervals.

Addressing a sexual harassment complaint

The guidance recommends some key action points:

Immediately take steps to acknowledge and make plans to resolve a complaint. However, this does not mean making rushed decisions as to whether harassment took place, which should be subject to proper investigation.
Consider how the complainant wants the issue resolved.
Maintain confidentiality.
Protect the complainant and witnesses from being victimised during investigation.
Where applicable, ask the complainant if they want to report the allegation to the police.
Be cautious when using confidential agreements, also known as NDAs.
Maintain effective communication with the complainant.
Inform the complainant of any appeals process.

Sexual harassment by third parties

The ECHR specifically highlights that the prevention of third-party sexual harassment should be taken as seriously as internal harassment cases. Whilst these situations are much more difficult to control, the guidance recommends having reporting mechanisms and continually assessing high-risk work environments where employees may be left alone with third parties.

Evaluate and evolve

Employers should regularly evaluate the effectiveness of the steps they have in place to prevent sexual harassment. Ad hoc reviews should be made where changes arise in the work environment, work force or work type for example.

Employers are expected to have an accurate understanding of the level of sexual harassment in their workplace. Regularly collecting data will assist employers in gaining this understanding. In particular, the ECHR recommends reviewing informal and formal complaints data to identify trends and appropriate action. Anonymous surveys can be used to identify barriers to reporting sexual harassment and collaboration with worker networks or trade unions can help keep employers informed.

After having addressed a sexual harassment complaint, employers should ensure they set aside time to reflect on where their actions could have been improved. Where changes are identified, changes should always be implemented.

The ongoing situation with high-profile cases such as the one involving Gregg Wallace may serve as a reminder that no organisation is immune from scrutiny, and the legal expectations surrounding sexual harassment are shifting towards a more preventative approach.

Useful resources

Economic review – November 2024: Gradual shifts amid growing challenges

Posted on 3 December 202428 March 2025 by Sophie Soraf

Interest rates set to fall more gradually

Last month, the Bank of England (BoE) cut interest rates for only the second time since 2020 but also warned future reductions were likely to be more gradual due to the prospect of inflation creeping higher next year.

Following its latest meeting, which concluded on 6 November, the BoE’s nine-member Monetary Policy Committee (MPC) voted by an 8-1 majority to reduce rates by 0.25 percentage points, bringing the Bank Rate down to 4.75%.

Commenting after announcing the news, BoE Governor Andrew Bailey suggested rates were likely to “continue to fall gradually from here”. However, he did caution that they would not be reduced “too quickly or by too much.” Mr Bailey was also at pains to emphasise the word “gradual” and added that the reason for such an approach was that “there are a lot of risks out there in the world at large and also domestically.”

Alongside the rate announcement, the governor unveiled the BoE’s latest economic forecast, which takes into account the Chancellor’s budget measures. The updated projections suggest the policies announced in the Budget are likely to boost the headline rate of inflation by almost half a percentage point at its peak in just over two years’ time and result in it taking a year longer for inflation to return to the Bank’s 2% target level.

The latest inflation data published by the Office for National Statistics (ONS) two weeks after the MPC announcement revealed that the annual headline rate jumped from 1.7% in September to 2.3% in October. While this sharp increase was largely driven by October’s energy price hike, the figure did come in slightly ahead of analysts’ expectations. This overshoot, combined with the Governor’s comments, has undoubtedly increased the prospect of interest rates remaining unchanged following the MPC’s final meeting on 19 December.

UK economy losing momentum

ONS released gross domestic product (GDP) statistics last month showing the economy barely grew between July and September, while more recent survey evidence points to a further loss of economic momentum.

The latest GDP figures revealed that UK economic output rose by just 0.1% across the whole of the third quarter. This figure was weaker than economists had expected and represents a sharp slowdown from the 0.5% growth rate recorded during the second quarter of the year.

A monthly breakdown of the data also showed the economy actually contracted by 0.1% during September alone, with ONS reporting a significant drop in manufacturing output while the services sector flatlined. A number of economists blamed September’s weakness on Budget uncertainty which was felt to have impacted the behaviour of both firms and households.

Data from a recently released economic survey also suggests business optimism continued to slide in the weeks following October’s Budget. Indeed, the flash headline growth indicator from the S&P Global/CIPS UK Purchasing Managers’ Index (PMI) fell to 49.9 in November from 51.8 in October, the first time in 13 months the figure had dipped below the 50 threshold, denoting a contraction in private sector output.

S&P Global Market Intelligence’s Chief Business Economist Chris Williamson said, “The first survey on the health of the economy after the Budget makes for gloomy reading. Although only marginal, the downturn in output represents a marked contrast to the robust growth rates seen back in the summer and are accompanied by deepening concern about prospects for the year ahead.”

Last month also saw the BoE publish revised economic growth projections. While the Bank did trim this year’s forecast from 1.25% to 1.0%, it is now predicting a stronger 2025, with next year’s projected growth figure upped to 1.5% from a previous forecast of 1.0%.

Markets (Data compiled by TOMD)

At the end of November, investors closely monitored the threat of possible US tariffs and the ongoing political turmoil in France. On the last trading day of the month, European markets closed slightly higher as inflation estimates met expectations, while the FTSE 100 was flat. Meanwhile, across the Atlantic, US stocks tempered from record highs reached earlier in the week.

In the UK, the FTSE 100 index closed the month on 8,287.30, a gain of 2.18%, while the FTSE 250 closed November 1.88% higher on 20,771.57. The FTSE AIM closed on 732.49, a loss of 0.63% in the month. The Euro Stoxx 50 closed November on 4,804.40, down 0.48%. In Japan, the Nikkei 225 closed the month on 38,208.03, a monthly loss of 2.23%.

In the US, President-elect Donald Trump has outlined plans to place levies on imports from Canada, Mexico and China, with concerns that his plans could extend to other regions. The Dow Jones closed November up 7.54% on 44,910.65, while the tech-orientated NASDAQ closed the month up 6.21% on 19,218.17.

On the foreign exchanges, the euro closed the month at €1.20 against sterling. The US dollar closed at $1.26 against sterling and at $1.05 against the euro.

Brent crude closed November trading at around $68 a barrel, a loss over the month of 5.40%. Oil prices fluctuated at month end as speculation over OPEC+’s production plans heightened in advance of their December meeting. Gold closed the month trading at around $2,683 a troy ounce, a monthly loss of 1.84%.

*****

Index	Value	Movement since 31/10/24
FTSE 100	8,287.30	+2.18%
FTSE 250	20,771.57	+1.88%
FTSE AIM	732.49	-1.63%
Euro Stoxx 50	4,804.40	-0.48%
NASDAQ Composite	19,218.17	+6.21%
Dow Jones	44,910.65	+7.54%
Nikkei 225	38,208.03	-2.23%

Unemployment rate rises

Official figures published last month revealed a rise in the rate of unemployment, although ONS has warned that the data should be treated with some caution due to smaller survey sample sizes increasing data volatility.

The latest ONS labour market release showed the unemployment rate stood at 4.3% between July to September 2024; this compares to 4.0% for the previous three-month period. The data also revealed that the number of payrolled employees decreased by 9,000 in the three months to September, with early estimates suggesting the figure dropped by a further 5,000 in October.

Job vacancies also fell again, with 35,000 fewer reported in the August–October period compared to the previous three months. Overall, the statistics agency said that the latest batch of data points to a ‘continued easing of the labour market.’

ONS is currently in the process of overhauling the statistical methodology used to calculate its labour market figures – research released last month by the Resolution Foundation highlighted the current problems surrounding data reliability. According to the think tank’s analysis of tax office, self-employment and new population data, the official statistics may currently be failing to count as many as a million people who are believed to be in work.

Retail sales fall by more than expected

The latest official retail sales figures showed sales volumes declined ahead of October’s Budget, while more recent survey data points to ‘disappointing’ sales in November, too.

Figures released last month by ONS revealed that retail sales volumes fell by 0.7% in October, following a period of growth across the previous three months. While analysts had predicted a sales dip, October’s decline was larger than expected. ONS said the fall was driven by a ‘notably poor month for clothing stores’ but also noted that retailers across the board reported consumers holding back spending ahead of the Budget.

Data from GfK’s latest consumer confidence index did offer the retail sector some cheer, though, with the long-running survey reporting less pessimism post-Budget. November’s headline figure rose to its highest level since August, with growth recorded across all five components of the survey, suggesting consumers may have more appetite for spending in the run-up to Christmas.

November’s CBI Distributive Trades Survey, however, found retailers expect trading conditions to remain tough. While the survey did acknowledge ‘some improvement’ in the retail environment since the middle of the year, it also reported ‘disappointing sales’ in November with volumes expected to remain below seasonal norms in December too.

All details are correct at the time of writing (2 December 2024)

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

This material is intended to be for information purposes only and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Tees is a trading name of Tees Financial Limited which is regulated and authorised by the Financial Conduct Authority—registered number 211314.

Tees Financial Limited is registered in England and Wales—registered number 4342506.

The get Britain working again white paper

Posted on 29 November 202421 March 2025 by Sarah O'Sullivan

Britain’s labour market has faced numerous challenges in the last few years, with 2.8 million people reportedly unable to work due to long-term sickness^[1], one in eight young people not being in education or employment^[2] and having been most impacted by covid lockdowns in comparison to similar countries^[3]. It is further reported that health benefits in the UK have increased from £36 billion to £48 billion in the last financial year as a result of mental health worsening during successive lockdowns^[4].

With this in mind, the Government has published ambitions to implement a three-pillar strategy (detailed below) to improve economic inactivity in Britain, with a long-term goal of achieving an 80% employment rate:

Modern Industrial Strategy and Local Growth Plans: to create more good jobs in every part of the country.
Plan to Make Work Pay: to improve the quality and security of work.
Get Britain Working: to reform employment support.

The third limb in this plan has been set out in the Get Britain Working White Paper. The Paper has indicated aims to address six issues:

People being excluded from the labour market, especially those with health conditions, caring responsibilities or lower skill levels.
Young people leaving school without essential skills, access to learning or work.
People becoming stuck in insecure, poor quality and low-paying work.
Women caring for families experiencing challenges staying in and progressing at work.
Employers being unable to fill vacancies due to labour and skills shortages.
Disparity in labour market outcomes between different places and for different groups of people.

The Paper details several proposed actions and changes:

Improve the impact of the NHS
The Paper aims to tackle health conditions which are seen to contribute to unemployment, such as mental health, smoking and obesity. The support is to include Talking Therapies, the Tobacco and Vapes Bill and new treatments for obesity. Treatment for such health conditions will include improved access to employment advisers and Individual Placement and Support (IPS). The goal is to provide these services to 140,000 more people by 2028/29.
Give control to local areas
There will be funding of £125 million to introduce eight ‘trailblazers’ into local authorities in 2025/26. They will be tasked with connecting relevant local services and trialling new interventions.

Local areas will be supported to create their own Get Britain Working Plans and engage with local partners to assist with their implementation.

A Connect To Work programme will assist up to 100,000 people a year with employment, supported by the Shared Prosperity Fund, a locally controlled fund.
The Youth Guarantee
The Youth Guarantee aims to ensure young people aged 18-21 are learning or earning.

There will be 8 Youth Guarantee trailblazers working with £45 million of funding in 2025/26 to design and develop the Guarantee to improve opportunities for young people. The Apprenticeship Levy will be redeveloped to become more flexible and renamed the Growth and Skills Levy. They will create new foundation apprenticeships and shorter apprenticeships in key sectors. New partnerships will be developed to generate opportunities for young people.
Improve Jobcentre Plus
There will be funding of £55 million to reform Jobcentre Plus in 2025/26. It will build new relationships with employers. It will be integrated with local partners and aims to bring employment and careers advice together.
Review how employers promote healthy and inclusive workplaces
The review ending next summer will assess how the government can better support employers to:

Improve the recruitment and retention of disabled people and people with health conditions.
Prevent their workforce from becoming unwell.
Promote healthy workplace environments.
Implement early intervention for sickness absence.
Improve the rate of employees returning from sickness absence.

This review will complement the Make Work Pay reform, which aims to address job insecurity and expand flexible working.

Next steps

The government further plans to reform the health and disability benefits system and will bring forward a Green Paper in spring 2025.

For employers, there may be opportunities to embrace these initiatives but they should be considered carefully in the context of presently increasing employment law rights. Now is the time for employers to be agile and ready for change. It is essential that employers’ policies and procedures are tailored to drive recruitment and career development, whilst maintaining clear and robust procedures to address performance and conduct issues. For more information, speak to our team of specialist employment advisors at Tees.

Resources

[1] INAC01 SA: Economic inactivity by reason (seasonally adjusted) – Office for National Statistics (ons.gov.uk)

[2] Young people not in education, employment or training (NEET) – Office for National Statistics (ons.gov.uk)

[4] Sick pay timebomb that risks a lost generation of workers – BBC News

Budget uncertainty sparks market shifts and opportunities

Posted on 21 November 202425 March 2025 by Sarah O'Sullivan

There was some uncertainty within the housing market ahead of the Autumn Budget at the end of October, which was reflected in muted consumer activity.

House price growth slowed ahead of the first Labour Budget in 14 years according to Savills. Mortgage rates rose slightly at the end of October as lenders repriced their fixed rates around the Chancellor’s announcements. However, Knight Frank do still expect house prices to increase by 3% this year.

Rachel Reeves confirmed that the lower Stamp Duty thresholds will be reinstated in April 2025, which is likely to cause a flurry of purchases in Q1 of 2025. Meanwhile, the increase in Stamp Duty on additional residential properties could reduce supply into the private rental sector.

Overall, many experts think that the Budget will cause inflation rates to be higher than initially predicted. This would lead to elevated mortgage rates, with less likelihood of strong house price growth.

Hope for the rental market?

Conditions could start improving for renters, with Savills commenting that residential rental prices may have reached an ‘affordability ceiling.’

Figures from Zoopla show that UK annual rental growth slowed to 4.3% in September – a further decline from 4.6% in August.

Plus, it seems that the Renters’ Rights Bill may not have prompted too many landlords to leave the market, with Knight Frank reporting that between January – August this year, there were 6% more new lettings listings in Prime London than the same period in 2023. This is a welcome relief, as limited supply is already an issue across the rental sector.

Commenting on the Renters’ Right Bill, Gary Hall, Head of Lettings at Knight Frank, said, “The new rules are likely to cause some logistical problems for landlords, but we are not expecting an exodus. Those who were on the fence have already left and those who stayed have benefited from strong rental value growth in recent years.”

Increase in chain-free homes for sales

Nearly a third of homes listed on Zoopla are currently chain-free.

From April 2025, homeowners and investors could be charged up to twice the amount of Council Tax on their second homes, which has prompted many to sell. In turn, there has been a 33% increase in buyer enquiries on chain-free properties.

Perhaps unsurprisingly, the UK’s second home hotspots have the highest proportion of chain-free homes for sale – the North West (36.5%), Yorkshire and The Humber (35.9%) and the South West (35.9%).

Senior Property Researcher, Izabella Lubowiecka at Zoopla, commented, “Those looking at buying a home before Stamp Duty rates increase in April 2025 should think about buying a chain-free home as they tend to complete much faster. Now is a great time to look for properties, with more chain-free homes available than in previous months.”

It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor. No part of this document may be reproduced in any manner without prior permission.

All details are correct at the time of writing (20 November 2024)

Managing the managers: Lessons from NHS accountability reforms

Posted on 21 November 202421 March 2025 by Sarah O'Sullivan

A new era of NHS accountability

The recent announcement by Health Secretary Wes Streeting, proposing stringent measures to overhaul NHS management, highlights a gear shift in how the Government expects healthcare performance to be scrutinised in England. NHS hospitals will soon be subject to league tables, measuring indicators like care delivery and financial performance, with the intention of making performance visible to the public. Managers of failing trusts may face dismissal if they are unable to drive improvements, while top performers will be rewarded.

While the drive for greater accountability is admirable, the NHS, like any employer, must manage change in culture, approach, and expectations with due regard for employment law.

The legal landscape: Understanding the employment bill

The Employment Bill introduces additional obligations and complexities that may make addressing performance and dismissing underperformers a daunting prospect for NHS employers.

Under the current law, employers must not discriminate based on “protected characteristics” under the Equality Act 2010 or dismiss an employee for whistleblowing. Employees with more than two years’ service also have general protection against unfair dismissal.

From an employment law perspective, several key aspects warrant attention:

Enhanced protection against unfair dismissal

The Employment Bill introduces strengthened protections that will likely extend to public sector employees, including NHS managers. Dismissals must be clearly justified with evidence showing not only that an individual has failed to meet specific performance metrics but that the criteria and processes leading to these conclusions are fair and reasonable.

League tables, while offering a snapshot of performance, may not always reflect an individual manager’s contributions or challenges. Employers will need to be cautious when using these tables as the basis for disciplinary action.

Transparency and accountability in dismissal procedures

The Bill mandates greater transparency in disciplinary and dismissal procedures. For NHS employers, this means ensuring that performance reviews, evidence of “turnaround efforts,” and evaluations are well-documented, objective, and supportable.

External oversight may be required in contentious cases, particularly when senior managers contest the validity of assessments based on league table standings. Transparency will be critical in demonstrating fair treatment.

Linking pay to performance: Challenges and considerations

NHS chief executives’ compensation will be tied directly to performance metrics. Coupled with the Employment Bill’s stance on fair and equitable treatment, NHS employers will need clear, justifiable benchmarks for performance-linked pay adjustments.

Discrepancies in the application of these measures may result in claims of unfair treatment or discrimination, potentially triggering grievances or legal disputes.

Turnaround teams and managerial autonomy

The introduction of turnaround teams adds another layer of complexity to NHS management structures. The Employment Bill’s emphasis on workers’ rights, autonomy, and protection from abrupt changes in duties means that managers may need additional support and clear guidelines if external teams are to oversee or redirect their initiatives.

Employers should balance intervention with respect for managers’ professional discretion to avoid claims of constructive dismissal or breach of employment terms.

The role of evidence in dismissal decisions

The Employment Bill strengthens the requirement for a comprehensive, fair approach in all dismissal decisions. With potential accusations of discrimination or victimisation—particularly if performance frameworks are unevenly applied—NHS employers must ensure that any decision to terminate a manager’s contract is robustly substantiated.

In cases where managers are deemed “rotten apples,” NHS leadership will need to demonstrate that such labels are backed by data and consistent with due process.

Striking the right balance: Leadership and legal compliance

As the NHS faces increasing scrutiny, balancing the need for high-quality leadership with the requirements of employment law will be crucial. Managers must be given the right support, clarity of expectations, and fair recourse, especially in a system that inherently poses complex challenges.

This reform offers an opportunity to foster genuine improvement in healthcare delivery, but only if handled with transparency, fairness, and respect for legal protections.

Looking ahead: Preparing for change in the NHS

As the implementation of these reforms approaches, NHS employers and legal advisers must stay vigilant. The Employment Bill underscores the importance of fair, transparent practices that respect both accountability and the legal rights of employees. Ensuring consistent application of these practices will be key to improving accountability and driving high performance without compromising procedural fairness.

If handled effectively, these changes may provide an opportunity for NHS leaders to enhance managerial accountability and ultimately improve healthcare outcomes across the system.

Health and Safety in the workplace

Posted on 13 November 202420 March 2025 by Sarah O'Sullivan

Whilst it is never a pleasant thing to think about accidents at work, they do occur. In order to avoid enforcement action corporate entities, directors and individuals need to ensure they comply with all relevant health and safety legislation or run the risk of large penalties and sanctions, convictions and reputational harm.

As a result, regulatory compliance is forming a critical part of everyday life. Let’s look at the statistics.

Latest figures from the Health and Safety Executive for 2022/2023 show:

875,000 workers suffering work-related stress, depression or anxiety
473,000 workers suffering from a work-related musculoskeletal disorder
2,257 mesothelioma deaths due to past asbestos exposures
138 workers killed in work-related accidents
561,000 workers sustained a non-fatal injury
60,645 injuries to employees reported under RIDDOR
35.2 million working days lost due to work-related illness and workplace injury
£20.7 billion estimated cost of injuries and ill health from current working conditions

What are employers required to undertake?

Health and Safety law states that employers must:

assess the risk to employees, customers and partners. They are also required to assess the risk to any other people who could be affected by their activities;
arrange for the effective planning, organisation, control, monitoring and review of preventive and protective measures;
have a written health and safety policy if they employ five or more people;
ensure they have access to competent health and safety advice;
consult employees about their risks at work and current preventive and protective measures.

What to consider if a workplace accident takes place?

Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 [RIDDOR] places a duty upon employers, the self-employed and people in control of work premises, also known as the responsible person, to report certain serious workplace accidents, occupational diseases and specified dangerous occurrences.

A RIDDOR report is required when the incident is work related or if it results in an injury of a type which is considered to be “reportable”.

The purpose of reporting is to warn the relevant authorities that an incident has occurred so that the Health and Safety Executive may review the circumstance, prevent a similar incident occurring again and to ensure compliance with the regulations.

Work related injuries will vary from sector to sector but common areas where work related injuries occur are falls from height, being struck by a moving vehicle and slips, trips and falls.

What injuries are considered to be reportable?

Deaths

Regulation 6 of RIDDOR states all deaths of both workers and non-workers arising from a work-related incident must be reported. It is important to note that deaths are also deemed reportable if the injured person died within one year following the work related incident.

Non fatal Injuries

Regulation 4 of RIDDOR deals with non-fatal injuries that must be reported by the Responsible Person these are:
fractures, other than fingers, thumbs, and toes
amputation
any injury likely to lead to permanent loss of sight or reduction in sight
any crush injury to the head or torso causing damage to the brain or internal organs
serious burns (including scalding) which covers more than 10% of the body and/ or causes significant damage to the eyes, respiratory system, or other vital organs
any scalping which requires hospital treatment
any loss of consciousness caused by head injury or asphyxia
any other injury arising from working in an enclosed space which leads to hypothermia or heat induced illness and/ or requires resuscitation or admittance to hospital for more than 24 hours

Diseases which have been caused or made worse as a result of work must be reported. This included diagnosis of:

carpal tunnel syndrome;
severe cramp of the hand or forearm;
occupational dermatitis;
hand-arm vibration syndrome;
occupational asthma;
tendonitis or tenosynovitis of the hand or forearm;
any occupational cancer;
any disease attributed to an occupational exposure to a biological agent

What records need to be kept?

Regulation 12 of RIDDOR requires the responsible person to keep a record of any reportable injury, which includes any injury which results in the injured person being unable to carry out their normal work for more than 3 days.

The record must be kept for 3 years from the date in which it was made, this may be kept in the form of an accident book. The accident book must include the following information:

Date and time of accident/ diagnosis of disease;
the person’s full name;
injury / diagnosed disease;
their occupation;
where not at work their status;
The location of the accident;
A brief description of the circumstances/ nature of the disease;
The date the incident was first notified to the authorities;
The method used to report the incident;

Why is it important to review the accident book?

The Accident Book is an essential document for employers and employees, who are required by law to record and report details of specified work-related injuries and incidents.

There are a few reasons why an accident book is a workplace essential. The information in the book can help to identify risks and accident trends, which can help to prevent accidents in the future. The accident book can also help in cases where the injured person decides to pursue compensation, or when the company is being investigated for potentially breaching health and safety regulations.

It enables businesses to comply with legal requirements under health and safety legislation, including Reporting of Injuries, Diseases and Dangerous Occurrences Regulations (RIDDOR) requirements.

When and how to report?

The responsible person must notify the relevant authority of the reportable incident by the quickest means and without delay. The Regulations require the responsible person to send a report of the incident within 10 days.

If a worker is incapacitated for more than seven consecutive days, the accident must be reported. For incapacitation over three days, the accident must be recorded but not necessarily reported.

When submitting a RIDDOR you will be able to download a copy of the submission to keep for your records, it is advisable to do so.

As with all health and safety issues in the workplace, employers, the self-employed and the Responsible Person should ensure they are fully up to date with the reporting requirements for RIDDOR. They should also make sure that the accident book is kept up to date. Accurate records are essential to protect employers, employees and, where appropriate, members of the public.

Accidents to members of the public or others who are not at work must be reported if they result in an injury and the person is taken directly from the scene of the accident to hospital for treatment to that injury. Examinations and diagnostic tests do not constitute ‘treatment’ in such circumstances. There is also no need to report incidents where people are taken to hospital purely as a precaution when no injury is apparent.

Where to report a workplace incident?

Any workplace incident can be reported online via the Health and Safety Executive website or via telephone. Please visit the Health and Safety Executive website for the relevant contact details.

Failing to report a reportable incident is a criminal offence. Not knowing the proper procedure for RIDDOR is not a defence, therefore it is critical that you understand and comply with the regulations to prevent investigation and prosecution by the Health and Safety Executive.