In her remarks, Hoggett emphasized that there is “not any truth at all” to claims that London’s markets are outdated and unattractive to growth-oriented companies.

Responding to Sir Martin Sorrell’s description of the FTSE 100 as a “museum” due to UK investors favoring traditional sectors like mining and oil, she stated, “I’ve heard that same narrative. However, a deeper analysis reveals that it is not accurate at all.”

She acknowledged that while comparisons can be drawn between the historical composition of the FTSE and Nasdaq, the performance of companies with similar growth trajectories in the UK and the US shows that many are trading at high multiples in both markets.

This ongoing debate about the valuation of UK stocks versus their international counterparts has been central to criticisms of UK markets, especially during a time characterized by a scarcity of public listings and numerous delistings. The perceived lack of high-value technology stocks in the UK is often cited as a significant factor contributing to the underperformance of these markets.

During her discussion at The Times Tech Summit, Hoggett mentioned that comparisons of index valuation multiples “do not provide meaningful insights” for individual companies, rendering such comments essentially irrelevant.

She pointed out the success of Raspberry Pi, a computing firm that has thrived since its recent flotation, noting that it attracted mainly UK investors who are interested in long-term growth. Hoggett remarked on the increased enthusiasm among UK institutions to diversify their investments into technology, which has historically seen lower representation due to the traditional composition of the UK markets.

Hoggett criticized the notion of referring to the FTSE as a “museum,” deeming it a “shortcut and a lazy thing to say.”

Despite recognizing that UK investors have historically been too “impatient” in developing large technology companies, she indicated that efforts are being made to improve this situation. These include reforms aimed at encouraging UK pension funds to invest more in growth companies and adjustments to listing rules to enhance the appeal of London markets for entrepreneurial ventures.

She highlighted the need to change the perception surrounding the FTSE’s attractiveness for growth companies, citing that over the past decade, only 20 UK firms have gone public in the US and raised more than $100 million, while eight have delisted, casting doubt on the narrative of UK market inferiority.

Despite this positive interaction, not everyone was convinced. Leonard Lauder, the well-known billionaire heir of the Estée Lauder empire, voiced his concerns, expressing fears that she might lose her identity within such a vast corporation. ‘He was apprehensive about Unilever,’ Somerville recounted. ‘He cautioned me, ‘I don’t know if you should do this. I fear you will get lost in a large company.’”

The acquisition, whose financial details remain undisclosed, included the Kate Somerville brand alongside REN, a premium skincare line, thus forming the foundation for Unilever’s Prestige brands division. This division now also encompasses popular cosmetics brands like Dermalogica, Tatcha, Hourglass, and Living Proof, with reported revenues of €1.4 billion last year.

Reflecting on her journey, Somerville appears generally positive about the collaboration, stating that it provided her with the chance to delegate day-to-day responsibilities while taking on an ambassadorial role and continuing her work in product innovation. She admits that before the sale, she felt ‘on the brink of burnout.’

When the COVID-19 pandemic struck, Somerville appreciated Unilever’s financial support, especially as her West Hollywood clinic faced a prolonged closure of 18 months. ‘They maintained our entire staff’s salaries. If it had been solely my responsibility, I would have had to shut down the clinic,’ shared Somerville.

However, the partnership was not without its challenges. Somerville mentioned Lauder’s wary words as a recurring concern. ‘We’ve seen five CEOs come and go in the past nine years. That level of turnover has been difficult because there hasn’t been much stability. The Prestige division has rapidly acquired a multitude of brands, and at times, I felt overshadowed compared to larger names like Dermalogica.’

Somerville did express her desire to assume the role of chief executive herself, revealing that she had ‘tried multiple times’ and even ‘begged’ Vasiliki Petrou, then head of Unilever Prestige, for the position after Reuben Carranza’s departure in 2022. ‘I kept saying, ‘Put me in, coach,’ but she didn’t feel comfortable with that idea,’ she recounted.

Somerville’s dedication to skincare began in her early years, as the strains of a tumultuous home life exacerbated her eczema condition. ‘As a volleyball player, sweating would cause discomfort and irritation,’ she recalled. Growing up on a farm, she discovered that adding goat’s milk to her bath could alleviate her skin issues—an age-old remedy that inspired her current line of goat’s milk-based products.

Leaving home at the age of 15, Somerville took on various jobs, eventually moving to Cambria, California, at 20. It was there that a dermatologist friend suggested she pursue a career in skincare. Following her training at esthetician school, she offered medical-grade facials, eventually opening her own clinic in Melrose Place, Los Angeles, in 2004.

Her clientele quickly grew to include numerous Hollywood stars, such as Jessica Alba, Demi Moore, and Meghan Markle, long before Markle’s marriage to Prince Harry. The impetus to launch her product line stemmed from an A-list client requesting her signature exfoliator for use on an overseas film shoot, leading to the creation of her best-selling product, ExfoliKate.

In 2005, after her products were included in Oscars gift bags, consumer interest surged dramatically, fueled by an expanding roster of celebrity endorsements. Paris Hilton, in particular, played a pivotal role in boosting Somerville’s brand after praising it in Japan, significantly raising global interest.

At this time, Somerville operated her business from home on a small scale, hand-filling bottles alongside her husband. When premium retailers like Saks and Nordstrom approached her brand, she sought help from industry veterans to navigate the complexities of retail partnerships.

To facilitate increased production, Somerville ultimately partnered with JH Partners, a San Francisco-based private equity firm that gained a controlling stake in her brand in 2007. She later acknowledged, ‘While some founders have positive experiences with private equity, I didn’t research enough and was naïve.’

Despite challenges in her partnership with JH Partners, the Kate Somerville brand continued to thrive, largely due to significant exposure on QVC, leading to an explosion in sales. ‘QVC was a financial lifeline. In a typical retail environment, you might sell 30 units a week; with QVC, we moved 80,000 units in a single day at times, even generating $5.8 million in a single day,’ she noted. The demands of balancing QVC appearances, running her clinic, developing new products, and parenting took a toll.

Eventually, Somerville and JH Partners decided to put the brand on the market, resulting in its acquisition by Unilever in 2015. Unlike most entrepreneurs who typically pursue earn-out agreements, Somerville’s continued involvement with Unilever stands out even after a decade. ‘This is rather unusual,’ she remarked regarding her long-term collaboration.

There are whispers that this arrangement may soon alter, as Sky News revealed in August that Unilever has allegedly listed the Kate Somerville and REN brands for sale. A spokesperson for Unilever labeled this as ‘market speculation.’

When asked what advice she has for entrepreneurs contemplating selling their ventures to private equity firms or trade buyers, Somerville emphasized, ‘Be clear about your objectives. Ensure you receive sufficient up-front payment to safeguard your future if they decide to part ways. You should also be spiritually prepared to transition into a different role. Entrepreneurs often struggle with relinquishing control, and while some changes may prove beneficial, others may not. It’s a journey requiring adaptability.’

The fund manager based in London indicated a 4 percent decline in total assets under management, which now stands at £26 billion for the summer quarter. This decline comes amid an increase in client withdrawals.

In the previous quarter, the firm had seen £923 million taken out, though the current pace of withdrawals has slightly decreased compared to the year ending March 31, when the outflows reached £6.1 billion, resulting in a quarterly outflow rate exceeding £1.5 billion.

John Ions, the chief executive, remarked, “The recent large electoral mandate for the new government initially raised hopes for political and economic stability and a robust pro-growth agenda. However, the speculation and uncertainty concerning potential changes to taxation and reliefs ahead of the budget have negatively impacted investor confidence and fund flows across the entire industry, including Liontrust.”

Ions also mentioned that the difficult environment for active fund managers, who aim to outperform market indices, has persisted longer than expected.

Survey data suggests that consumer confidence has taken a hit in recent weeks, with officials’ pessimistic comments regarding the public finances contributing to a more cautious outlook. Net outflows from UK equity funds increased to £666 million in September, as reported by funds consultant Calastone.

Despite a successful period for Liontrust from 2016 to 2021, where it enhanced profits through numerous acquisitions, its shares have plummeted nearly 80 percent since as retail investors withdraw funds from UK-centric investments and its ESG-focused offerings.

A failed attempt to acquire Swiss company GAM last year also raised concerns about Liontrust’s business model, compounded by the departure of some of its prominent stock pickers.

Ions assured stakeholders of improvements in productivity and efficiency across the organization. He noted that a newly established global equities team, led by Mark Hawtin—previously of GAM—is now integrated within Liontrust and is actively engaging potential new international clients.

Liontrust is scheduled to release its half-year results on November 21. Last year, the company recorded a statutory loss of £579,000, a significant drop from profits of £49.3 million, largely due to one-off expenses and non-cash write-downs.

Following a decline in shares, trading fell below 500p, closing Thursday at 495p, a drop of 33p, and valuing the firm at £321 million. Additionally, it was removed from the FTSE 250 index of mid-cap stocks last December.

Water company leaders often seem disconnected from the realities faced by consumers. While many cannot specify the exact amount of a homeowner’s monthly bill, they assert that increased payments are necessary to compensate for the unspecified effects of climate change and to fund the necessary improvements to outdated supply and sewerage systems, which have not seen upgrades since privatization over 35 years ago.

During the cold winter months, amidst the ongoing debates regarding the removal of winter fuel allowances for older citizens, Ofwat is expected to announce household bill increases for the upcoming five years. These increases are predicted to outpace inflation, yet will still fall short of the amounts requested by local water providers.

There are emerging campaigns advocating for a boycott of water bills, fuelled by the understanding that unlike energy companies, water companies cannot legally disconnect households for non-payment. A strategy reminiscent of the poll tax protests in the early ’90s is being considered.

Water executives dismiss these movements as unfounded. They claim bill increases will only average a few hundred pounds annually, justifying the need for funds to combat extreme weather conditions and replace Victorian-era infrastructure. They assert that any blame should be directed toward Ofwat for its regulatory shortcomings.

While there may be some truth to their claims, public sentiment may not align with their perspective. People generally know where to direct their frustration regarding the current water sector troubles. The analogy is clear: just because a criminal can present arguments about homeowners failing to secure their property does not absolve the criminal of their actions.

Accountability in Government

As the new parliamentary term approaches, MPs are prepared to address numerous issues, particularly focusing on the re-elected Labour chairman of the business and trade select committee, Liam Byrne.

Byrne is expected to initiate several inquiries, notably regarding the fallout from the collapse of the construction firm ISG. While the failure of such a company might not typically garner much attention, it echoes the significant 2018 collapse of Carillion.

The current Chancellor gained prominence through her efforts in scrutinizing the management failures during the Carillion crisis. It is uncertain if previous reports, particularly by Rachel Reeves on Carillion, have impacted corporate governance, yet ISG’s downfall raises critical questions about its role with government departments where it was a primary contractor.

Government contractors, particularly in construction, often prioritize the lowest bid over quality, raising concerns. It begs the question of why departments continued contracts with ISG, especially when the company’s precarious situation was known for months. Furthermore, whether ISG’s owner, William Harrison, inherited from a Texan oil fortune, was suitable to run a vital UK contractor remains a contentious issue.

The termination of projects across various sectors—prisons, schools, and community services—likely exceeding budget indicates Reeves’ previous call for better oversight of government contracts has not been heeded.

Royal Mail Takeover Investigation

The select committee may also investigate the recent £3.6 billion acquisition of the Royal Mail group, now known as International Distribution Services, which marked its tenth annual meeting as a privatized entity at Newbury Racecourse.

Daniel Kretinsky’s proposed takeover of Royal Mail is already under scrutiny by ministers. When Royal Mail was initially privatized 11 years ago, the government imposed universal service obligations that have since burdened the company, resulting in a loss of market share to more agile competitors.

Ofcom’s indications that these universal service burdens may be relaxed have been welcomed by Royal Mail, suggesting that Kretinsky’s offer is based on a significantly different operational landscape. Allowing a national asset like Royal Mail to fall under foreign ownership is controversial, particularly if ministers suspect Kretinsky is getting a below-par deal.

The Leapmotor T03: A Disruption in Electric Vehicle Sales?

The introduction of the Leapmotor T03 may be pivotal in revitalizing the electric vehicle market. While concerns arise regarding its Chinese origins and potential security implications, the vehicle’s aesthetic can be likened to a modern interpretation of a Trabant. At a price point of just £15,000, the appeal may far outweigh the downsides.

Launching in October, the National Energy System Operator (Neso) will function as an independent body, marking the first instance of combined oversight for both the electricity and gas systems. Energy Secretary Ed Miliband emphasized that this initiative aims to create a “network that is fit for the future.”

Concerns regarding potential conflicts of interest led to the establishment of the National Grid’s Electricity System Operator as a legally separate entity in 2019, forming the foundation for the new state-owned organization.

Neso will be responsible for balancing daily energy supply and demand across the grid, as well as overseeing crucial planning and design decisions. This includes identifying optimal locations for new power projects to match electricity generation with regions experiencing high demand.

The government anticipates that this new body will enhance energy security in Britain, reduce long-term costs for consumers, and increase the share of clean energy in the grid.

According to Miliband, Neso will play a significant role in reaching the government’s 2030 target for decarbonizing the energy system. He stated, “We need to transition Britain away from costly and unstable fossil fuel markets towards affordable, domestically produced clean energy. This approach will help lower bills, strengthen our energy independence, and create skilled job opportunities nationwide.”

The government plans to recover the majority of taxpayer expenses related to this acquisition through existing energy bill charges, which were previously allocated to the National Grid.

Proposals for a joint entity to supervise both gas and electricity networks emerged in 2021 under prior governmental leadership, following Ofgem’s recommendations for the separation of network operators from transmission system owners.

Ofgem Chief Executive Jonathan Brearley remarked that the formation of this unified body represents a significant advancement towards mitigating Britain’s vulnerability to volatile energy markets while ensuring access to clean, renewable energy for everyone. He noted, “Its mission is pivotal for long-term energy security and the daily operation of the system.”

National Grid, which owns and oversees much of the UK’s national power network, also acquired Western Power Distribution, the largest electricity distribution network, and is involved in the development of interconnectors, or subsea power cables. Details regarding the allocation of proceeds were not revealed, but the National Grid has announced plans for a £60 billion overhaul of the energy system over the next five years. This upgrade aims to enhance grid capacity and design to accommodate a significant rise in electricity demand.

At the close of trading, shares in National Grid saw an increase of 6p, or 0.6 percent, reaching £10.43½.

The tech giant, based in California, announced its plan to procure energy from several small modular reactors developed by Kairos Power, a move that could invigorate the nuclear sector in the United States.

The initial reactor is set to commence operations by 2030, with further reactors anticipated to be deployed by 2035.

Mountain View-based Google, which manages data centres globally, will acquire 500 megawatts of power from six to seven reactors, although the specific locations of these facilities within the US have not been disclosed.

This agreement sees Google joining the ranks of Amazon, Microsoft, and Oracle, all of which are exploring sustainable energy solutions to support the increasing demand for electricity driven by AI and cloud computing technologies.

Research from Goldman Sachs predicts that power consumption by US data centres is projected to triple from 2023 to 2030, necessitating about 47 gigawatts of new generation capacity.

Earlier this year, Amazon Web Services secured a deal for a nuclear-powered data centre providing up to 960 megawatts from Talen Energy, an independent energy producer.

In a related development, Microsoft finalized an agreement to aid in the rehabilitation of a unit of the Three Mile Island plant in Pennsylvania, historically noted as the site of the nation’s most significant nuclear incident in 1979.

Kairos Power, established in 2016, is in the process of developing small nuclear reactors characterized by enhanced safety and efficiency compared to traditional designs. Their demonstration reactor in Tennessee is expected to be finished by 2027.

Google pointed out that their technology incorporates a molten-salt cooling system, which efficiently channels heat to a steam turbine for energy generation.

This system allows the reactor to function at low pressure, leading to a more straightforward and cost-effective reactor design. The smaller, modular approach is projected to shorten construction timelines, facilitate deployment in diverse locations, and improve project delivery predictability.

Michael Terrell, senior director for energy and climate at Google, emphasized the necessity for new electricity sources to support transformative AI technologies, which contribute to significant scientific breakthroughs, enhance business operations, and bolster national economic growth.

He stated, “This agreement accelerates the development of innovative technologies to meet energy requirements in a clean and dependable manner, ultimately unlocking AI’s full potential for everyone.”

Kairos Power will need to secure design and construction permits from the U.S. Nuclear Regulatory Commission, in addition to approvals from local authorities, before proceeding with reactor development.

Jeffrey Olson, vice president of business development and finance at Kairos Power, remarked that this agreement would “catalyze the commercialization of advanced nuclear power plants, a crucial step in advancing the energy transition and adding vital carbon-free capacity to the electrical grid.”

Olson noted that this arrangement “facilitates the growth of advanced carbon-free energy not only for Google but for the broader power grid.”

By choosing a so-called order book approach with Kairos, Google is signaling robust market demand and committing to a long-term investment strategy aimed at expediting the development of small modular reactors (SMRs).

In the UK, various firms are competing for government contracts to develop their SMR technologies as part of efforts to rejuvenate the country’s nuclear sector. Recently, Rolls-Royce SMR gained significant traction when it was selected by the Czech government for a reactor fleet project.

Sir Edward Troup, who previously served as the director general of tax and welfare at the Treasury, reflects on the situation.

Historically, a popular saying attributed to Lord Salisbury suggests that the best time to impose taxes is upon death. However, the British public appears to disagree with this notion.

The proposed budget adjustments to curtail the generous inheritance tax (IHT) exemptions for farmland have sparked significant controversy. The source of this uproar remains ambiguous—whether it stems from genuine family farmers, conservationists concerned about the British landscape, or absentee landowners leveraging farmland as a tax-saving strategy.

When examining the role of investors, while opposition to inheritance tax may be widespread, it is crucial to note that the complete tax exemption for absentee farmland owners has largely been a historical quirk exploited by tax consultants.

Regarding concerns for the landscape, the renowned poet Thomas Gray painted a vivid picture of peaceful countryside, but if the existing IHT relief was intended to preserve such beauty, it has failed considerably. The decline of wildflower meadows, woodlands, and wildlife habitats over the last century is indeed a national tragedy. Though some farmers are striving to restore these natural environments, the government’s involvement should focus on subsidies and regulations rather than tax reliefs imposed upon death.

Thus, the rationale for tax relief hinges on preserving family farms across generations. Nevertheless, unlimited tax relief raises concerns about feasibility and fiscal responsibility.

The discourse should shift from merely debating the merits of limiting relief to examining whether maintaining relief at £1 million—potentially even more for couples when factoring in additional reliefs and the option to transfer lifetime shares—can effectively support the dwindling small family farms.

Rachel Reeves has approached this issue with a fresh perspective, emphasizing that all tax reliefs must justify their existence. She has granted the agricultural community the chance to argue for maintaining the relief at the £1 million threshold. Now, farmers must present their case for why this relief is essential at its revised level.

No

Jonathan Roberts, a representative from the Country Land and Business Association, an organization for landowners, expresses his viewpoint.

The government’s assertion that alterations to IHT reliefs will only impact 500 of “the wealthiest landowners” annually is misleading.

For one, a more extensive farm does not necessarily lead to higher profits. Our analysis suggests that farms around the size of 250 acres—approximately the average farm size—could become liable for death duties.

Additionally, many farms have diversified, as encouraged by government initiatives, to create additional revenue streams and safeguard their businesses against market fluctuations. This diversification makes them more susceptible to taxes under the new system.

These changes have created a potential crisis for around 70,000 family farms and businesses, all facing the prospect of debilitating tax liabilities.

While ministers claim the government cannot afford to allow farmers to pass away tax-free, I argue that we cannot afford the fragmentation of family farms. We can’t risk making food production unfeasible or dismantling multi-generational family businesses that are often the backbone of rural economies. Losing even a small percentage of rural enterprises could result in the loss of around 190,000 jobs.

Post-election, expectations were high for the government to prioritize growth, as outlined in its core manifesto. The rural economy is currently about 14 percent less productive than the national average, suggesting that addressing this disparity through planning reforms, affordable housing, and enhanced connectivity could potentially add £40 billion to the national economy. However, little progress has been observed in securing new policies to achieve these goals.

A clear message is essential for those in power—businesses drive economic growth, not taxation. No nation has ever achieved prosperity solely through taxation. With adequate support, rural businesses could stimulate the economy, generate quality employment, provide food for the population, protect the environment, and counteract the decline in biodiversity. Yet, following this budget announcement, the necessary support appears far from forthcoming.

The final purchasing managers’ index (PMI) from S&P Global and the Chartered Institute of Procurement and Supply reflected a decrease from 52.4 to 52.0 for the £1.7 trillion sector, as companies awaited policy updates from the Labour government.

While a PMI reading above 50 signals growth, the reported increase in output marked the slowest pace since November 2023.

Participants in the S&P survey indicated that although economic conditions in the UK had seen some improvement, there were concerns about “heightened business uncertainty” related to the upcoming budget, leading many to postpone spending. The findings also suggested that geopolitical factors were discouraging expenditures among certain sectors, including finance, retail, education, and healthcare.

Consumer and business confidence took a hit as uncertainty loomed over potential tax increases before Chancellor Rachel Reeves’ inaugural budget. The government signaled a need for tax hikes to address a significant financial shortfall, resulting in the GfK consumer confidence index dropping from -13 in August to -20 in September, and a decline in the Institute of Directors’ economic confidence index from -12 to -38 in the same period.

In her recent budget announcement, Reeves planned to raise employers’ national insurance contributions by approximately £25 billion, which is expected to exert pressure on wage growth. The Institute for Fiscal Studies noted that this increase would significantly affect larger companies employing lower-salaried workers.

Tim Moore, economics director at S&P Global Market Intelligence, remarked, “October’s data indicates a further deceleration in output growth across the service sector as rising business uncertainty and concerns about the UK economy negatively impacted demand conditions.

“The anticipation for clarity on government policies preceding the autumn budget has reportedly contributed to diminished business confidence and spending. Broader geopolitical issues and upcoming US elections have also fostered a cautious approach to business investment decisions in October, alongside persistent cost-of-living pressures that continue to restrict household expenditure.”

Elliott Jordan-Doak, a senior UK economist at Pantheon Macroeconomics, stated that the slowdown could equip the Bank of England’s monetary policy committee with the rationale to reduce the bank rate this week and indicate further gradual reductions in 2025.

He further noted, “The PMI has encountered challenges from budgetary uncertainties this month rather than a substantial decline in economic conditions. However, forward-looking indicators within the survey suggest that growth could rebound later in the year, and the chancellor’s expansionary budget may also stimulate GDP.”

Jordan-Doak commented on firms’ optimism regarding sales pipelines and overall market conditions but acknowledged that political uncertainties had dampened confidence in October. While input price inflation moderated, output price increases slightly accelerated.

Matt Swannell, chief economic adviser to the EY Item Club, emphasized that the recent data should not raise significant alarm. He explained, “Data can exhibit volatility, with the compilers of the survey noting that uncertainties leading up to the budget are postponing spending decisions.

“The survey indicated that rising wage pressures contributed to increased input cost inflation, which businesses are reflecting in their output prices. However, these increases follow several years of low figures noted in September.”

The collaboration with NHS England and various government entities aims to be implemented at up to 30 NHS locations, significantly reducing the lag time between the emergence of new pathogens in the UK and the initiation of treatment to mitigate their spread.

This initiative will build upon a pilot program spearheaded by Guy’s and St Thomas’ NHS Foundation Trust, which leverages samples from patients suffering from severe respiratory infections along with rapid genetic testing to identify appropriate treatments within a six-hour timeframe.

The partnership, which also includes Genomics England and the UK Biobank, is part of broader efforts to enhance pandemic preparedness in light of the experiences from the Covid-19 pandemic.

Peter Kyle, the Secretary of State for Science and Technology, emphasized that this initiative would enhance Britain’s Covid surveillance framework to continuously monitor emerging diseases, allowing scientists and policymakers to be better prepared and equipped with vital information for decision-making.

Founded in 2005 as a spin-off from the University of Oxford and publicly listed at a valuation of £3.4 billion in 2021, Oxford Nanopore has developed innovative gene sequencing technologies aimed at facilitating quick diagnoses of cancers along with rare and infectious diseases.

The company gained from government contracts amid the pandemic and resolved an earlier dispute with the Department of Health and Social Care regarding the supply of devices, testing kits, and services, culminating in a £50 million settlement.

Following the announcement of this new partnership, shares of Oxford Nanopore rose 2.5 percent, equating to a 3.5 pence increase to 141.5 pence, although the stock remains down by approximately 75 percent since its initial public offering three years ago.

Analysts from RBC noted, “While we typically do not view the NHS as a fast adopter of new technologies, it is important to recognize that Genomics England is pioneering in population genomics and has significantly advanced the integration of genomics into cancer and rare disease diagnoses within the NHS over the last decade.”