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  • 📈 Thames Water's ÂŁ3bn Lifeline Floats Troubled Waters

📈 Thames Water's £3bn Lifeline Floats Troubled Waters

Starmer: Asset Owners Don’t Count as ‘Workers’!

October 25, 2024

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:

  • Thames Water's ÂŁ3bn Lifeline Floats Troubled Waters

  • Starmer: Asset Owners Don’t Count as ‘Workers’!

  • New Investors Fuel Moneybox’s ÂŁ550M Leap!

The summary: Thames Water’s £3bn cash boost means Britain’s biggest utility dodges a funding drought, but with hefty bills and pollution challenges ahead, the waterworks drama’s far from over!

The details:

  • Thames Water’s received a ÂŁ3bn lifeline, keeping its head above water until October 2025 – just in time to avoid a very dry Christmas.

  • The utility titan, swamped by ÂŁ16bn in debt (soon to hit ÂŁ17.9bn), has managed to win confidence from investors but whispers of a government takeover still linger.

  • Thames' customers may feel the splash as bills could soar up to 59% by 2030 – and that’s on top of already rising charges.

  • With sewage spills doubling and complaints pouring in, the UK water industry is under pressure to clean up its act, one pricey drop at a time.

Why it matters: Thames Water’s financial woes could leave millions of Brits paying dearly just to keep the taps running. With the risk of government intervention looming, investors' confidence wobbles, and talk of skyrocketing bills, the future of UK water supply feels shakier than a British brolly in a storm. Meanwhile, the industry’s struggle with pollution means all this debt isn’t exactly delivering cleaner rivers or seas anytime soon.

The summary: Labour’s budget shake-up could bring tax tweaks for the asset-rich while boosting public investment to tackle Britain’s funding gap and fuel growth in tech, green energy, and infrastructure.

The details:

  • Starmer’s Tax Target: Keir Starmer hinted at tax rises for those earning mainly through shares or assets, stating they don’t fit his idea of “working people” who rely on monthly pay cheques.

  • Budget Jitters: With whispers of potential hikes in inheritance and capital gains tax, Starmer’s government aims to address a growing fiscal gap while sparing ‘traditional’ workers.

  • Reeves’ Dilemma: Chancellor Rachel Reeves prepares for "tough" budget choices to tackle a ÂŁ40bn funding hole, a leap from previous estimates, and she’s staying tight-lipped on specifics until the big day.

  • Fiscal Rule Rewrite: Reeves will change borrowing rules to boost public investment, aiming to bolster Britain’s tech and green sectors and repair crumbling infrastructure, a clear shift from Tory policies.

Why it matters: The government's next budget could mean new taxes for asset-rich investors while trying to shield everyday earners, but let’s not forget: tricky “tough choices” often land right on our wallets. With a mammoth £40bn hole to patch up, Labour’s aiming to keep the economy afloat—without upsetting too many voters. And if Reeves’ fiscal rule rewrite sounds like economic sorcery, it’s because Britain’s infrastructure needs all the magic it can get.

The summary: Moneybox is revolutionising personal finance by attracting top-tier investors, boosting its valuation to ÂŁ550 million, and allowing 35,000 shareholders to cash in, making financial success feel like a delightful afternoon tea!

The details:

  • Big Fintech League Entry: Moneybox has now joined fintech heavyweights Monzo and Revolut by offering secondary share sales, allowing existing shareholders to cash in and new investors to jump on board.

  • Fresh Investors, ÂŁ550M Valuation: With Apis Global Growth Fund III and Amundi now backing Moneybox, the company’s valuation has leapt to ÂŁ550 million, thanks to a ÂŁ70 million investment largely from existing investors offloading 10-15% of shares.

  • 35,000 Shareholders Get Their Slice: Moneybox’s wide shareholder base, including crowdfunding participants, customers, and employees, can now cash out 10% of their shares—a reward for backing the company's impressive rise.

  • Mission-Driven Financial Empowerment: Co-founders Ben Stanway and Charlie Mortimer have crafted a financial super-app, helping over a million users save for homes, retirement, and financial freedom with confidence.

Why it matters: Moneybox is shaking up the fintech scene by making personal finance as accessible as a cuppa in the local cafĂ©, drawing in heavyweight investors who fancy a slice of the action. With a valuation soaring to ÂŁ550 million, they’re proving that a strong growth trajectory can turn a few pennies into pounds, much to the delight of their loyal shareholders. Plus, the ability for 35,000 investors to cash in on their stakes is like a bonus round in a game of Monopoly—everyone’s a winner!