New Rules To Boost Home-Based Businesses

Entrepreneurs will have more freedom to begin a business from home under new measures to be announced by the Government.

The measures include legislation which will make it simpler to run a company from a rented property and new guidance on business rates.

There will also be updates to planning guidance to make it clear that planning permission will not normally be required to run a home-based business.

Business minister Matthew Hancock said: "It's this spirit of personal endeavour and self-determination that is driving our economic recovery.

"But home businesses don't just fire up the economic engines and create jobs, they turn dormitory towns into living communities, they keep our streets safer, and by driving down car emissions, cleaner too.

"We'll give people the confidence they need to run a business from a rented home, making sure that the majority of home businesses are exempt from business rates and our aspiring entrepreneurs have the information they need to start up and grow."

Under the measures a new model tenancy agreement will be made available to landlords.

The law will also be changed so landlords can be confident that agreeing to a business within their property will not undermine their tenancy agreement.

Liz Peace, chief executive of the British Property Federation, said it firmly supported the removal of "unnecessary barriers" to setting up at home.

"At least some of the kitchen table businesses of today will expand and become the commercial property space-seekers of tomorrow," she said.

"We therefore have an interest in ensuring that the law and our sector is adapting to modern business practice and supporting UK entrepreneurs at every stage of their business development."

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Rents Rise Again As Home Costs Swallow Income

Rental bills are rising by more than inflation again after a break of more than a year as a separate study warns over the impact on families of higher housing costs.

According to LSL Property Services, which runs the Reeds Rains and Your Move chains, the average monthly rent across England and Wales increased by 2% in the 12 months to July as the market picked up with students starting to book accommodation.

That took the pace higher than the 1.9% rate of inflation for the first time since June last year - with the average rent now standing at £753 per calendar month.

London and the South East regions led the way in terms of the highest values - with a £1,143 average in the capital - though London's rate of increase stood at 2.3% over the 12 month period compared to 3% in the North West.

The North East was the only region where rents had fallen over the period, LSL said, with a 3.8% reduction to reach £507 typically.

Its report was released as another study warned that almost 1.6 million UK households were now seeing more than half their disposable income being taken up with rent or mortgage costs.

The Resolution Foundation think-tank, which carried out the research, said 'pinched' households were more likely to rent privately, be young, live alone, live in one bedroom properties, have recently moved and live in London.

Its analyst, Laura Gardiner, said: "The majority of the housing pinched are in work but on low and middle incomes, leaving little left over after housing costs to spend on other essentials.

"With house prices and rents rising in some parts of the country, interest rates expected to start to go up and income growth remaining weak, we should be concerned about the ability of this group to absorb additional pressure on their household budgets from higher mortgage payments and rents.

"It is vital that more money is invested in the supply of new housing in order to drive down costs, otherwise we can expect to see a steady rise in the number of households that are 'housing pinched' over the coming years."

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Alibaba Film Unit Probes Cash Irregularities

The film unit recently aquired by Chinese e-commerce powerhouse Alibaba has announced an investigation into possible accounting irregularities.

Alibaba Pictures Group confirmed the news to the Hong Kong Stock Exchange and said the probe's scope pre-dated its purchase by Alibaba in June and only related to its time as ChinaVision Media Group.

Trading in Alibaba Pictures shares was suspended pending the results of the inquiry while the Group's latest financial results were also delayed.

The disclosure was made as its parent company readies for what is expected to be the biggest-ever listing by a tech firm.

It is believed Alibaba will look to raise $20bn (£12bn) in its planned initial public offering in New York next month - more than Facebook's $16bn two years ago.

Alibaba - which has made a string of big-money purchases to broaden its interests - makes more money than Amazon and eBay combined.

It bought 60% of ChinaVision Media for more than $800m as part of its push into online content and changed its name to Alibaba Pictures.

The statement to the Hong Kong stock exchange said the new management team had found "certain possibly non-compliant treatment of financial information" in the company's accounts.

The film business said the discrepancies meant it was likely that there had been "insufficient provision for impairment of certain assets" in the January-June period - potentially valuing assets at more than they are worth.

An audit committee is investigating whether it would affect the company's previous financial reports.

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Home Sales 'Highest For Seven Years'

Chartered surveyors are selling as many properties as they did before the start of the financial crisis.

In a monthly poll of its members, the Royal Institute of Chartered Surveyors (RICS) has found that on average, the number of homes sold per surveyor in July went up to 24.6.

That's the highest amount since June 2007, when the average number was 25.2.

The pick-up in sales per surveyor is a further sign that the housing boom is continuing across the UK. In January 2009, in the midst of the economic crisis, surveyors were only selling on average 9.8 houses per month.

Prices are projected to increase by 2.6% over the next 12 months, according to respondents to RICS.

The state of the UK housing market continues to be of concern to the Bank of England. However, in its inflation report this week it predicted house price growth would halve by next spring to around 0.5% per month.

A report from the Halifax earlier this month showed house prices across the country rose 1.4% in July.

In London, often seen as a hotbed for house prices, only 10% of chartered surveyors reported an increase in July, compared to 30% in June.

RICS chief economist Simon Rubinsohn added: "Members now expect price gains over the next year to be faster outside of the capital, than in it."

Some elements of the poll hinted that the market might be normalising. Surveyors reported the first drop in demand for houses to be surveyed since January 2013, as well as an increase in supply for the second consecutive month.

The RICS Residential Market Survey is the longest-running monthly survey of house prices in the UK.

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Lenovo Hails Mobile Future As Sales Soar

A 32% jump in sales of mobile devices has helped the world's biggest maker of PCs grow its quarterly profits.

Lenovo, which has intensified efforts to diversify from its traditional personal computer roots, confirmed that earnings rose 23% to $214m (£128m) in the April-June quarter compared to the same period last year.

It credited strong growth in sales of smartphones and other mobile devices, which topped $1.6bn (£1bn) over the three months.

The profits reflect the China-based firm's heavy investment in mobile technology - a strategy that has included the purchase, from Google, of Motorola's handset business for $2.9bn (£1.74bn).

Global revenue rose 18% to $10.4bn (£6.23bn) - with PC sales making up 29% of that total figure.

The company said shipments of desktop computers rose 12.1% over a year earlier, compared with an industry average of 2.4% - reflecting a pick-up in demand in its home market.

Just over a third of its revenue was made in China while the US and the Americas accounted for $2.2bn (£1.32bn) of sales.

Revenues from Europe, the Middle East and Africa rose 27% to $2.8bn (£1.68bn).

Lenovo's chairman, Yang Yuanqing, said he expected mobile sales to be the bulk of its future revenue as its focus shifts from PCs.

The company said it rose to number three among global tablet computer suppliers, adding that worldwide smartphone shipments grew about 39% year-on-year.

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France: Growth 'Has Broken Down In Europe'

It has been confirmed Germany's economy contracted in the second quarter of 2014 while France has warned that growth "has broken down" in the country and wider eurozone.

Official figures showed that Europe's biggest economy recorded a surprise 0.2% GDP dip between April and June as foreign trade and investment, particularly in the construction sector, weighed on growth.

Investor and business confidence was since taken a knock because of the crisis in Ukraine - straining relations with Russia - raising fears of an even weaker recovery.

Those jitters were reflected in financial markets on opening - with the German DAX and the CAC 40 in Paris both losing ground amid a wider sell-off across Europe.

France called on the European Central Bank to do more to tackle the risk of deflation and bring the euro to a more competitive level as it posted zero GDP growth for the second consecutive quarter.

The figures also prompted the finance minister Michel Sapin to slash his government's forecast for growth in 2014 to "around 0.5%" compared with a previous projection of 1%.

He told the daily Le Monde newspaper: "Growth has broken down, in Europe and in France.

"With zero growth in the second quarter, thereby extending the stagnation we saw in the first, our country is slowing down and will not achieve the 1% growth observers were predicting three months ago".

Analysts have warned for months that France, the second biggest economy in the eurozone, looks increasingly the weak link in a halting recovery as the government battles to push through much-needed reforms.

Unemployment hit a new record in June to a shade under 3.4 million while the forecast for France's public deficit is now predicted to be above 4% of GDP this year - missing key targets demanded of it by the EU.

The country's statistics agency blamed falling manufacturing output as a key component of its performance and cited a large number of mid-week public holidays as having a particular impact on productivity.

More follows...

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Care Giant Races To Avert £500m Sale Collapse

By Mark Kleinman, City Editor

The parent company of HC-One, one of Britain's biggest nursing home operators, will hold crunch talks this week aimed at preventing the collapse of a £500m sale of the business.

Sky News has learnt that NHP is expected to meet with representatives from Credit Suisse, the Swiss banking giant, which is taking legal action to stall the auction in an attempt to secure repayments to bondholders.

HC-One, which owns and operates approximately 220 sites previously run by the now-defunct Southern Cross group, had been on the verge of agreeing a sale to Formation Capital, a US-based healthcare investor.

Credit Suisse has warned that it will pursue further legal avenues to derail the sale without a string of assurances from the company and its partners by August 15.

The legal tussle, which the Swiss bank believes is necessary to protect its financial interests, has thrown the future ownership of the UK's third-biggest care home operator into fresh doubt.

HC-One, whose parent company is carrying more than £1.3bn of debt, has about 10,000 residents across its estate and employs roughly 14,000 staff.

Formation, which declined to comment, is said to have told the selling shareholders that its offer will lapse shortly without a resolution of the impasse, although it is unclear whether it will abandon its interest altogether after that point.

It is reported to have pledged to invest tens of millions of pounds to fund new homes and modernise existing ones.

Anchorage Capital, a Wall Street hedge fund which is another HC-One creditor, is also trying to delay the sale.

Analysts speculated that regulators could seek to intervene if the situation deteriorated to the extent that stakeholder confidence in HC-One was undermined.

In a statement issued to Sky News on Monday, NHP said it had halted the sale process because of the dispute and is "engaging with Credit Suisse and other stakeholders with a view to resolving the issue and completing the sale of the group as soon as practicable".

An insider said the row would not have an impact on patient care and pointed to more than £80m invested in HC-One since November 2011.

"The sale process represents the next phase of ensuring HC-One remains a stable, debt-free and fully funded organisation, committed to providing the kindest possible care," the statement said.

"We are deeply disappointed that Credit Suisse has taken this action at this late stage."

The row could trigger a renewed debate about the extent of private sector involvement in crucial healthcare services after more than a decade of debt-fuelled takeovers of care home and hospital operators.

Southern Cross's collapse in 2011 under a toxic combination of mounting debts and rising rents sparked recriminations between ministers, landlords and care home operators.

The parent of HC-One, which is chaired by Chai Patel, the healthcare tycoon behind The Priory rehab clinics, also said that without a resolution of the dispute, it would consider selling the business through an alternative process.

This would involve selling the underlying assets themselves - the 221 care homes - rather than the shares in the companies which own them.

In response, Credit Suisse said it supported the work undertaken by Mr Patel to stabilise the business, adding in a statement: "Any contractual disputes between CS and other transaction parties relate to the holding company of HC-One and will have no bearing on the day-to-day operations of HC-One itself."

Dr Patel and other directors are reported to be in line for a £5m bonus if the company is sold.

Deutsche Bank, which was appointed by Capita, the special servicer, to run the auction, could not be reached for comment.

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'Pay Before You Die' Inheritance Tax Plan

People suspected of trying to avoid inheritance tax could have to pay before they die under proposals being considered by ministers.

HM Revenue & Customs could demand "accelerated payment" where savers are using potentially illegal avoidance schemes.

The measures - at the consultation stage - are a response to concern that growing numbers of people are using trusts to shield their estates from inheritance tax.

But Stuart Phillips, of tax planning firm the Private Office, said the policy could have "unintended consequences".

HMRC says the proposals will only affect a small minority of wealthy people

"The concern is that the Revenue takes a highly aggressive stance, just like with the film schemes for which celebrities have been under scrutiny, and terrifies families who have been engaging in legitimate tax planning that has been used for many years," he told The Daily Telegraph.

"I'm apprehensive that large-scale action could have unintended consequences."

Inheritance tax is levied at 40% on the value of an estate above the £325,000 threshold. Married couples can combine their allowances.

The Tories pledged to raise the threshold from £325,000 to £1m at the last election, but the policy was blocked by the Liberal Democrats.

A HMRC spokesman said: "We are seeking views on tackling inheritance tax avoidance schemes. This is an ongoing consultation and no final decisions have yet been taken.

"The proposals in the consultation paper will only affect a small minority of wealthy individuals who actively seek to avoid inheritance tax.

"Couples would still be able to leave up to £650,000 tax free to benefit their children or grandchildren."

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GSK Acts On Latest Syria Bribery Allegations

GlaxoSmithKline (GSK) says it is investigating new bribery allegations concerning its operations in war-torn Syria, raised by an apparent whistleblower.

The firm, which was already facing accusations of corruption in its consumer business in the country, spoke out after the news agency Reuters published details of an anonymous internal email containing allegations that Syrian doctors were bribed to help boost medicine sales.

The claims in the email - sent last week to top managers including chief executive Sir Andrew Witty - related to the activities of GSK staff and local distributors and is understood to have contained names.

The FTSE 100 company told Sky News: "We have zero tolerance for any kind of unethical behaviour and we welcome people speaking up if they have concerns about alleged misconduct.

"On 6 August 2014, we received an email making claims regarding GSK's pharmaceutical operations and related distributors in Syria.

"All the claims in this email will be thoroughly investigated using internal and external resources as part of our ongoing investigation into operations in Syria.

"We are committed to taking any disciplinary actions resulting from the findings.

"We have suspended our relationship with our distributors in the country pending the outcome of our investigation.

"We remain committed to the secure, humanitarian supply of safe and effective medicines and vaccines to patients in need", the statement concluded.

The company's ethical standards have been called into question amid a series of corruption claims covering China, Lebanon, Iraq, Jordan and Poland.

The most high-profile allegations relate to its operations in China where GSK is alleged to have funnelled hundreds of millions of pounds to doctors and officials.

A new twist emerged in June when GSK confirmed its former top boss in China, Mark Reilly, had been filmed in a covert sex tape prior to the bribery investigation being launched by Chinese officials.

Four China staff were arrested in July as part of the wider corruption probe.

Reuters said the new corruption claims in Syria involved alleged bribes paid to boost sales of various medicines, including ones to treat cancer and to prevent blood clots.

It reported they took the form of cash, trips and free medical samples running into thousands of pounds.

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Royal Mail To Change Post Box Collection Time

The collection time at almost 50,000 Royal Mail post boxes will be brought forward to earlier in the day under new plans.

Staff delivering letters are expected to make the pick-ups as part of their rounds.

Some 47,500 post boxes will see collection times as early as 9am, instead of the usual 5pm.

Royal Mail, which was privatised last year, said it will also add around 2,000 new boxes in under-serviced areas such as rural Scotland and Northern Ireland.

New boxes would also be fitted in areas of high pedestrian traffic, including train stations and shopping precincts.

It currently has some 115,000 post boxes around the nation.

The company said where new collection times are imposed, generally between 9am and 3pm, there will still be a late posting box within half a mile.

About 12,000 rural post boxes are already emptied during delivery rounds but the new plan would primarily affect urban and suburban locations.

The new system is designed to improve efficiency, amid a decade-long decline in stamped mail use.

The company said: "Rather than decommission uneconomic post boxes, while staying within the regulated density requirement, Royal Mail will ensure their viability by improving the efficiency of its collections arrangements."

It said consultations have been undertaken with consumer groups and regulator Ofcom has been informed.

An Ofcom spokeswoman said: "Ofcom recognises the need for Royal Mail to become more efficient so it can sustain a universal postal service that consumers value highly.

"While the changes won't affect the majority of postal users, Ofcom expects Royal Mail to communicate clearly with any affected consumers and ensure that their reasonable needs continue to be met."

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Huntsworth Boss To Step Down After Pay Revolt

By Mark Kleinman, City Editor

The Conservative peer who heads one of the biggest public relations groups listed on the London stock market is to step down weeks after a major revolt by shareholders over his pay package.

Sky News understands that Lord Chadlington, chief executive of Huntsworth and a close ally of David Cameron, is to retire from the owner of prominent communications agencies such as Citigate Dewe Rogerson and Red.

A statement confirming his exit could be made as soon as Monday, when Huntsworth is due to report half-year results for the six months to June 30, according to banking sources.

The precise timing of Lord Chadlington's departure is unclear, but the announcement is intriguing because it comes less than four months after Lord Myners, the former City Minister, was appointed as Huntsworth's chairman.

Lord Myners has been a long-standing advocate of strong boardroom governance, and is said to have been contacted by a number of leading Huntsworth shareholders since his arrival amid discontent about Lord Chadlington's £1m-plus pay deal.

At the company's annual meeting in June, more than 30% of investors expressed their disillusionment with the chief executive by abstaining on his re-election to the board.

Nearly a quarter of shareholders voted against last year's remuneration report, while almost a third opposed Huntsworth's pay policies for the next three years.

The departure of Lord Chadlington, who is also the president of Mr Cameron's Conservative constituency association, will spell the end of a chapter of one of the most prominent careers in the UK's PR industry.

Now 72, he founded the Shandwick agency four decades ago, turning it into a major industry force, and built Huntsworth through a string of acquisitions which also included Grayling, another leading outfit.

There have been tensions in the company's boardroom in recent times, with Richard Sharp, Lord Myners' predecessor, and Joe MacHale, another board member, stepping down this year partly in protest at Lord Chadlington's remuneration.

The Huntsworth boss is unusual among the heads of listed companies for having a guaranteed contractual entitlement to an annual pay rise and bonus.

The business has been performing poorly, however, with a recent profit warning contributing to a 35% fall in the share price during the past year, giving it a market capitalisation of just £133.1m.

The arrival of Lord Myners adds an unexpected layer of intrigue to a relatively low-profile listed company.

Huntsworth is also a rarity among London-quoted businesses in having a Chinese peer as its largest shareholder.

Blue Focus, one of Asia's biggest PR groups, paid £36.5m for a stake of almost 20% just over a year ago.

Last month, it emerged that Matthew Freud, another major figure in the UK PR industry, had snapped up a 3% stake in Huntsworth, a purchase he described as "somewhere between a hunch and a punt".

A Huntsworth spokesman declined to comment on Sunday.

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'Pay Before You Die' Inheritance Tax Plan

People suspected of trying to avoid inheritance tax could have to pay before they die under proposals being considered by ministers.

HM Revenue & Customs could demand "accelerated payment" where savers are using potentially illegal avoidance schemes.

The measures - at the consultation stage - are a response to concern that growing numbers of people are using trusts to shield their estates from inheritance tax.

But Stuart Phillips, of tax planning firm the Private Office, said the policy could have "unintended consequences".

HMRC says the proposals will only affect a small minority of wealthy people

"The concern is that the Revenue takes a highly aggressive stance, just like with the film schemes for which celebrities have been under scrutiny, and terrifies families who have been engaging in legitimate tax planning that has been used for many years," he told The Daily Telegraph.

"I'm apprehensive that large-scale action could have unintended consequences."

Inheritance tax is levied at 40% on the value of an estate above the £325,000 threshold. Married couples can combine their allowances.

The Tories pledged to raise the threshold from £325,000 to £1m at the last election, but the policy was blocked by the Liberal Democrats.

A HMRC spokesman said: "We are seeking views on tackling inheritance tax avoidance schemes. This is an ongoing consultation and no final decisions have yet been taken.

"The proposals in the consultation paper will only affect a small minority of wealthy individuals who actively seek to avoid inheritance tax.

"Couples would still be able to leave up to £650,000 tax free to benefit their children or grandchildren."

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Malaysia Airlines Launches 'Complete Overhaul'

Malaysian officials have released a share buy-back plan to take Malaysia Airlines off the stock market, as part of a "complete overhaul" of the embattled carrier.

State investment firm Khazanah Nasional, which owns 69% of the airline, wants to purchase the majority shareholding from investors ahead of a delisting.

The move comes as the company continues to reel from the dual effect of losing two aircraft this year - the disappearance of MH370 and the crash of MH17 in eastern Ukraine.

The airline struggled with profitability for several years ahead of this year's disasters.

Khazanah Nasional has proposed buying the outstanding stock at 27 sen (£0.0475) a share, 29% higher than the three-month average.

The complete takeover would cost 1.38bn ringgit (£255m). Shares were suspended in Kuala Lumpur ahead of the announcement.

"The proposed restructuring will critically require all parties to work closely together to undertake what will be a complete overhaul of the national carrier," Khazanah said in a statement.

"Nothing less will be required in order to revive our national airline to be profitable as a commercial entity and to serve its function as a critical national development entity."

Before this year's disasters, the carrier's financial performance was among the worst in the industry, putting a question mark over its future.

Some industry experts recently voiced concern of its ability to survive without a major cash injection from the Malaysian government.

Branding specialists have said Malaysia Airlines must take dramatic steps such as replacing its senior management and a name change.

As a state-owned flag carrier, the airline must fly unprofitable domestic routes.

Its workforce has a strong union presence that has resisted operational changes, amid the rise of low-cost regional rivals.

Khazanah said the plan required approvals from regulators and Malaysia's finance minister.

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Royal Mail To Change Post Box Collection Time

The collection time at almost 50,000 Royal Mail post boxes will be brought forward to earlier in the day under new plans.

Staff delivering letters are expected to make the pick-ups as part of their rounds.

Some 47,500 post boxes will see collection times as early as 9am, instead of the usual 5pm.

Royal Mail, which was privatised last year, said it will also add around 2,000 new boxes in under-serviced areas such as rural Scotland and Northern Ireland.

New boxes would also be fitted in areas of high pedestrian traffic, including train stations and shopping precincts.

It currently has some 115,000 post boxes around the nation.

The company said where new collection times are imposed, generally between 9am and 3pm, there will still be a late posting box within half a mile.

About 12,000 rural post boxes are already emptied during delivery rounds but the new plan would primarily affect urban and suburban locations.

The new system is designed to improve efficiency, amid a decade-long decline in stamped mail use.

The company said: "Rather than decommission uneconomic post boxes, while staying within the regulated density requirement, Royal Mail will ensure their viability by improving the efficiency of its collections arrangements."

It said consultations have been undertaken with consumer groups and regulator Ofcom has been informed.

An Ofcom spokeswoman said: "Ofcom recognises the need for Royal Mail to become more efficient so it can sustain a universal postal service that consumers value highly.

"While the changes won't affect the majority of postal users, Ofcom expects Royal Mail to communicate clearly with any affected consumers and ensure that their reasonable needs continue to be met."

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Canadian Teachers Swoop On Debt Group Lowell

By Mark Kleinman, City Editor

A giant Canadian pension fund has swooped to buy a big stake in Lowell Group, one of Britain's biggest consumer debt collection agencies.

Sky News understands that Teachers Private Capital (TPC), an investment arm of one of Ontario's municipal retirement schemes, signed a deal on Friday to acquire just over 35% of Lowell's shares.

The deal values the debt collection group at around $1.6bn, and returns a large chunk of cash to TDR Capital, the private equity firm which has owned Lowell since 2011.

An announcement is expected on Monday as a consequence of Lowell's publicly-traded debt securities.

Lowell specialises in debt recovery and other credit management services, a sector which has attracted frequent attention from private equity funds.

The company, which pledges to take "a fair, sensitive and ethical approach to debt recovery", competes with rivals such as Cabot Credit Management and Arrow Global, which floated on the stock exchange last October.

The Financial Conduct Authority assumed responsibility for regulating consumer credit providers earlier this year.

TPC, which is also a significant investor in TDR's funds,  is understood to have been attracted to Lowell's growth prospects and its compliance record with UK financial regulators.

The deal adds Lowell to a portfolio of UK investments made by Ontario's vast teachers' pension fund, which include Camelot, the National Lottery operator; Burton's Biscuits, the owner of Jammie Dodgers and Wagon Wheels; and Busy Bees, the nurseries group.

TPC's investment comes ahead of a potential stock market flotation of Lowell, which could take place as soon as next year.

TDR and TPC declined to comment.

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