✂️ Pension Cuts Amid Budget Shake-up

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Pension Cuts Amid Budget Shake-up

  • Ted Baker’s Digital Reboot Begins!

  • Eurostar's £10.5 Million Queue Cure!

The summary: Sir Keir Starmer's bold vision for economic recovery focuses on tough but necessary decisions to fix the country’s finances, while holding the previous Conservative government accountable and promising fairness for all.

The details:

  • Sir Keir Starmer warned that the October Budget would involve difficult choices, requiring the public to endure "short-term pain for long-term good," with the wealthiest bearing the greatest burden.

  • He criticised the previous Conservative government for creating a £22bn financial "black hole," accusing them of dishonesty and populism, while pledging not to raise National Insurance, income tax, or VAT.

  • Labour has already introduced cost-cutting measures, including ending universal winter fuel payments for 10 million pensioners, despite some public concerns.

  • Starmer defended Labour against Conservative claims of "cronyism," emphasising his commitment to restoring honesty and integrity in government appointments.

Why it matters: Sir Keir Starmer's speech highlights the Labour government's tough stance on economic recovery, signalling significant changes that will impact public finances and services. By attributing the current financial challenges to Conservative leadership, Starmer aims to distance his party from past mismanagement while positioning Labour as a force for stability. With promises not to raise major taxes but introducing cost-cutting measures, Labour faces the challenge of balancing fiscal responsibility with public discontent, particularly over pensioner benefits.

The summary: Ted Baker is making a stylish comeback online in the UK and Europe, teaming up with its American partner to keep the brand thriving after closing its retail stores.

The details:

  • The owner of Ted Baker, Authentic, has secured a deal with United Legwear and Apparel Co (ULAC) to relaunch the brand's online presence in the UK and Europe, after its UK retail stores recently closed.

  • ULAC, already managing Ted Baker's operations in the US and Canada, will extend its partnership to handle e-commerce in Britain and Europe, with the relaunch planned for autumn.

  • This development follows the permanent closure of 31 Ted Baker stores and the loss of over 500 jobs after failed talks between Authentic and Frasers Group.

  • Ted Baker's challenges began in 2019 following founder Ray Kelvin's departure, compounded by financial difficulties, profit warnings, and the COVID-19 pandemic.

Why it matters: Ted Baker's online revival shows that even after shutting its shops and a spot of financial drama, the brand isn’t done yet – it's just moving to a digital catwalk. With a new American partner in tow, the British favourite is set to strut its stuff online, keeping its presence alive in wardrobes across the UK and Europe. It’s a classic case of a brand dusting off its troubles and slipping into something more digital.

The summary: The UK’s splashing £10.5 million on upgrades to keep queues at bay when the EU’s new Entry-Exit System arrives, so your travels should stay more smooth sailing than soap opera drama!

The details:

  • The UK government is throwing £10.5 million at Eurostar, Eurotunnel, and Dover Port to avoid horrid queues once the EU's new digital Entry-Exit System (EES) launches this November – after some technical hiccups, of course.

  • The EES, requiring digital photos and fingerprints of non-EU visitors (yes, that's us now), is sparking fears of chaotic border checks – hence the extra cash to soothe the looming logistical nightmare.

  • Eurostar's already installed 49 kiosks, but with the government’s funding, they’ll add more, test them rigorously, and train staff to avoid any travel tantrums.

  • Getlink (Eurotunnel's parent) has been upgrading terminals for two years, preparing 106 kiosks to help whisk travellers through, and now plans to bolster staff and tech for peak times.

Why it matters: With the EU’s new Entry-Exit System looming, UK travellers are about to experience a lot more fingerprinting and photo ops than they’d like at borders. Without the extra £10.5 million thrown at ports and rail stations, the chaos could resemble the queues at Wimbledon – but without the strawberries and sunshine. The aim? To keep your holiday more “bon voyage” than “bonkers delay.”

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