Chancellor John Healey has been urged to fix the £100,000 childcare “cliff edge”, after the Centre for the Analysis of Taxation (CenTax) estimated that almost 12,000 families could be holding down their earnings to keep free childcare by the end of this parliament in 2030.

The report warns that the threshold pushes some higher-paid employees to reduce their hours or stop working to avoid losing their entitlement.

Since the latest expansion of taxpayer-funded childcare in 2024, families with young children in which both parents earn less than £100,000 a year can be entitled to 30 hours of care a week. If either parent crosses that threshold, the family receives none.

CenTax, a thinktank based at Warwick University, said that by 2030 the average parent crossing the cliff edge would have to earn £124,000 to be no worse off after losing their free childcare.

Arun Advani, director of CenTax, said: “Our analysis shows the childcare cliff edge stands to grow dramatically by the end of this parliament, but there are solutions available to the government.”

The researchers said “bunching” of incomes just below £100,000 suggested that, even in 2022, about 1,000 families were artificially suppressing their earnings to avoid falling foul of the threshold. That is the latest year for which data is available.

They estimated the number could rise to almost 12,000 by the end of the parliament.

The report also suggested the policy may be encouraging some mothers to leave work. Below the £100,000 threshold, 6 per cent of lower-paid partners, usually the mother, are out of work. Above the threshold, that rises to 9 per cent.

“The jump in non-working mothers at the point where their partner exceeds £100,000 income suggests the loss of childcare entitlement as a cause, with possible long-term consequences for those mothers’ earnings,” the report said.

CenTax also criticised the fact that the threshold is based on how much parents expect to earn in the year ahead. Families are not eligible, according to government guidance, if either parent’s expected adjusted net income is over £100,000 for the current tax year. The researchers pointed out that some families appear to be claiming despite eventually earning more than that.

The report proposes several potential solutions. Restricting families above the £100,000 threshold to 15 hours of free childcare, instead of withdrawing it altogether, would cost £210m by 2030, it said.

Gradually tapering away the entitlement at 28p for each £1 earned above the threshold would be revenue neutral, but less problematic for parents, the report added.

Healey is due to deliver his first budget on 28 October.

Analysts believe higher than expected interest rates on the Treasury’s debt are likely to have wiped out at least half of the £24bn headroom that his predecessor, Rachel Reeves, built up against the government’s fiscal rules.

In his first major speech, in Coventry on Monday, Healey promised to put growth at the heart of his approach. He also warned that Labour must “be honest” about the constraints on public spending in the years ahead.

Since Andy Burnham took over as Labour leader in July, he has announced a VAT cut on electricity bills and capped bus fares. Healey has also suggested the government is keen to do more to give consumers a “breathing space”.

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk

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Store will be in partnership with local retailer Kelper Stores

Supermarket chain Iceland has announced plans to open a new store in the Falkland Islands, marking what it claims will be a historic milestone as it becomes the first UK high street brand to set up shop in the territory.

The standalone Iceland outlet is due to launch in early December on Ross Road East in the capital, Stanley, in partnership with local retailer Kelper Stores, which forms part of the Fortuna group.

Iceland boss Lord Richard Walker pledged last week that he would bring a supermarket to the British overseas territory, writing on LinkedIn: “We’ve been supporting the Great British high street for 50 years.

“As we continue our international expansion programme, we are committed to opening a shop on the Falkland Islands – taking our iconic British frozen quality and value to the Falklanders. Watch this space.”

The retailer confirmed on Thursday that a deal had been struck to honour that commitment.

The Stanley outlet will carry Iceland’s own-label frozen products alongside well-known brands including Cathedral City, MyProtein and TGI Fridays.

Iceland described Fortuna as a family-run business with a long history in the Falkland Islands, adding that Kelper Stores had long been a “trusted retailer for local shoppers and, through its partnership with Iceland Foods, is making a wider selection of affordable frozen food and everyday essentials more accessible to residents”.

Lord Walker said: “Iceland Foods has a proud history of firsts and we are proud to be backing Britain by becoming the first UK high street retailer to open in the Falkland Islands.

” The Falklands are a special part of the British family and it’s always been an ambition of mine to support it, so being able to bring Iceland to Stanley is a huge moment for us. We’ve built our business around giving customers great quality and value, and we’re proud to bring the power of frozen to the Islands.

“This is an important moment for the business and our international aspirations. I will personally be visiting the Falklands to officially open the store and I looking forward to welcoming our new customers through the door.”

Fortuna managing director James Wallace said: “Fortuna as a local, family-owned business is committed to investing in the community.

“We are delighted to be working with Iceland in delivering a partnership that will directly benefit the people of the Falkland Islands.”

Sarah Clarke, the general manager of Kelper Stores, said: “This is a major milestone for the Falklands, and we’re excited to be working with Iceland to bring the first ever franchise store to Stanley.

“Our customers will enjoy a wide product range and better value for money as a result.”

The store opening comes amid renewed tensions over the territory’s sovereignty, after Argentinian President Javier Milei reignited the long-running dispute last week, declaring “we need to recover” the islands.

In a televised address, Milei stated: “The Falklands are Argentinian. Historically and legally. There can be no argument. They are part of the Argentine territory.

“The islanders on their usurped territory do not have a legitimate right to self-determination and any argument on any such self-determination is invalid.”

In response, Foreign Secretary Ed Miliband wrote: “The Islands are British and will remain so because that is the overwhelming position of the islanders.”

Defence Secretary Wes Streeting described Britain’s commitment to the territory as “absolute and unshakeable”.

The Institute of Directors has set out five priorities for the Autumn Budget on 28 October, calling on Chancellor John Healey to restore business confidence and encourage private investment. In its submission, the IoD warns against further increases in taxes on business, investment and employment.

The IoD says the UK economy has delivered stronger growth than many comparable advanced economies in recent years, but argues that persistent weaknesses in investment, productivity and business confidence risk undermining future prosperity.

The five areas are creating a competitive and predictable tax environment, mitigating the employment and investment consequences of the Employment Rights Act, sequencing devolution to support productivity across the UK, protecting and delivering economically productive infrastructure, and accelerating responsible AI adoption across the business population.

Anna Leach, chief economist at the IoD, said: “The UK has achieved respectable headline growth in recent years, but the fundamental challenge facing the economy remains unchanged: we do not invest enough. Business leaders consistently tell us that uncertainty, rising costs and doubts about policy delivery are holding back investment decisions.”

She added: “This Budget must restore confidence and provide a clear signal that the UK is committed to being one of the most attractive places in the world to invest, grow a business and create jobs. With fiscal headroom limited, the UK’s growth challenge cannot be solved by public spending alone: government must create the conditions for businesses to invest. That means no further increases to the overall tax burden on businesses, investors and employment, alongside greater policy stability, proportionate regulation, effective infrastructure delivery, well-sequenced devolution and wider responsible adoption of AI, all focused on raising productivity, crowding in private capital and improving living standards.”

Leach said: “The overriding test for this Budget is whether it helps move businesses from postponing investment to pursuing growth. If the government can rebuild confidence and demonstrate clear delivery, the private sector can play its full role in driving the next phase of economic growth.”

Tax and employment rules

The submission highlights concerns that confidence has remained subdued since 2024 amid uncertainty over taxation, rising employment costs and questions around policy coherence. The IoD argues that a successful Budget should restore predictability, reduce the risks associated with investing and hiring, and demonstrate a stronger focus on growth across government decision-making.

The IoD is urging the government to expand its existing corporate tax roadmap into a broader long-term framework covering the entire business tax system. It says firms and investors need greater certainty about the future direction of tax policy.

The roadmap, published by the Treasury in October 2024, set out a commitment to cap the headline rate of corporation tax at 25 per cent for the duration of the parliament.

The IoD is also calling on ministers to use the implementation process for the Employment Rights Act to reduce risks to hiring, particularly for smaller firms and those offering entry-level opportunities.

Its recommendations include proportionate adjustments to trade union access provisions, guaranteed-hours rules, shift notification requirements and unfair dismissal reforms, alongside additional resources for Acas and employment tribunals.

Devolution, infrastructure and AI

On devolution, the IoD says it supports the government’s ambition to devolve power but argues that responsibilities should only be transferred where there is sufficient institutional capacity, stable funding and robust accountability. It is calling for a cross-government Devolution Data and Statistics Delivery Plan and a shared performance dashboard to support effective local growth policy.

The submission urges ministers to protect high-productivity infrastructure investment and maintain momentum towards the delivery of a third runway at Heathrow. The IoD argues that major infrastructure programmes need clear milestones, accountable leadership and transparent measures of success to improve delivery and attract private investment.

The IoD also says the government should simplify support for technology adoption by bringing existing AI and digital-adoption initiatives together into a single national offer for SMEs through the Business Growth Service.

It recommends a new ‘Responsible AI Essentials’ programme to help smaller businesses adopt artificial intelligence securely and effectively.

The full submission includes further supply-side proposals on skills, sustainability and energy, international trade and the devolved nations.

Jamie Young

Jamie Young is Senior Reporter at Business Matters, covering SME finance, employment law and Westminster policy since 2016. He has reported on every Budget and Autumn Statement since 2018, helped make sense of the ‘covid era’ and the bounce-back loan scheme from launch through the fraud investigations, and broke the magazine’s coverage of the 2024 late-payment reforms. He joined Business Matters straight from completing his BA in Administration from Exeter University and is NCTJ-qualified. Reach him at jyoung@cbmeg.co.uk

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Last week, the BSE benchmark Sensex climbed 404.53 points, or 0.51 per cent, and the NSE Nifty went up by 187.05 points, or 0.76 per cent.

“Markets ended the week with modest gains despite heightened volatility, as investors navigated the roll-out of the new Closing Auction Session (CAS) framework for F&O stocks, the Reserve Bank of India’s monetary policy decision, and lingering geopolitical uncertainties,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

From the top-10 pack, Reliance Industries, State Bank of India, Tata Consultancy Services (TCS) and Larsen & Toubro were the gainers, while Bharti Airtel, HDFC Bank, ICICI Bank, Bajaj Finance, Life Insurance Corporation of India (LIC) and Hindustan Unilever faced a combined erosion of Rs 1.23 lakh crore from their valuation.

State Bank of India added Rs 63,922.03 crore, taking its market valuation to Rs 10,11,721.84 crore.

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The valuation of Reliance Industries jumped Rs 32,816.4 crore to Rs 18,01,925.19 crore, and that of TCS surged Rs 31,875.35 crore to Rs 8,87,770.13 crore.
The market capitalisation (mcap) of Larsen & Toubro climbed Rs 14,637.76 crore to Rs 5,56,482.45 crore.However, the valuation of LIC tumbled Rs 40,543.23 crore to Rs 4,96,891.82 crore.

The mcap of Bajaj Finance eroded by Rs 37,168.96 crore to Rs 6,73,648.55 crore, and that of HDFC Bank dropped Rs 24,183.16 crore to Rs 11,27,967.47 crore.

The valuation of ICICI Bank declined by Rs 9,507.67 crore to Rs 10,20,370.63 crore, and that of Bharti Airtel eroded by Rs 7,581.65 crore to Rs 12,22,423.98 crore.

The mcap of Hindustan Unilever dipped by Rs 4,793.16 crore to Rs 4,88,808.97 crore.

Reliance Industries remained the most valued firm, followed by Bharti Airtel, HDFC Bank, ICICI Bank, State Bank of India, TCS, Bajaj Finance, Larsen & Toubro, LIC and Hindustan Unilever.

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Tourism bosses have formed an alliance to help market the county to visitors

A new tourist organisation has been established to help champion Cornwall’s visitor economy. The creation of Cornwall Visitor Alliance follows the the liquidation of Visit Cornwall – the county’s official tourist board – last year.

The alliance is a not-for-profit that was developed by bosses from Cornwall’s tourism and hospitality hospitality sector, and will be an “influential voice” for tourism in the Duchy, according to those behind it.

The organisation will focus on business-to-business activities including destination marketing and management, business representation, research and insight, strategic partnerships and advocacy, it said.

It is understood the organisation will use the term ‘Visit Cornwall’ for consumer-facing marketing. But the licence of the Visit Cornwall brand, and its respective assets, including the website, reverted back to owner Cornwall Council when the organisation collapsed in 2025.

Councillor Sarah Preece, Cornwall Council’s cabinet member for tourism, said: “We have reached an important milestone following months of productive collaboration between the council, private sector partners, and key stakeholders across our visitor economy.

“The Cornwall Visitor Alliance company can now begin its journey as a private organisation, leading the delivery of a sustainable and thriving visitor economy for Cornwall.”

Five Cornwall-based volunteer founding directors have been appointed to help launch Cornwall Visitor Alliance including: chair Katie Warren, founder of Fixer Property and Management; vice chair Laura Plum, marketing and communications director of St Austell Brewery; Veryan Palmer, family director of Headland Hotel; Andy Jasper, chief executive of Eden Project; and Patrick Langmaid, managing director of Mother Ivey’s Bay Holiday Park.

Tim Fryer, who has headed up the project since April, has also been appointed as commercial director.

“Our ambition is to build an organisation that businesses genuinely feel belongs to them, one that listens, represents their interests and brings the sector together around a shared vision for Cornwall,” said Ms Warren.

“By working collaboratively, we can help ensure Cornwall remains a brilliant place to visit, while also being a great place to live, work and build a business. Our role will be to unite businesses and partners, strengthen Cornwall’s destination offer and ensure the visitor economy is represented in the decisions that shape its future.”

Cornwall Visitor Alliance is funded through membership, partnerships and commercial activity, with no reliance on the public sector, it said.

“Cornwall Visitor Alliance will be a constructive but independent voice,” added Mr Fryer. “We want decisions affecting the visitor economy to be based on evidence, with businesses and stakeholders widely consulted and genuinely listened to and with a clear understanding of the impact those decisions may have on businesses, employees, communities and visitors.

“Immediately following a launch event in the early autumn, we will set out details of membership options and strategic partnerships, alongside our plans and initial programme of marketing campaign activity.”

Thailand’s new visa framework, effective 15 September 2026, reduces the 60-day visa exemption to 30-day and 15-day categories, affecting 60 countries, with specific rules for Seychelles, Mauritius, Azerbaijan, Belarus, and Serbia.

Introduction of New Visa Framework

Starting from 15 September 2026, Thailand will implement a revised visa policy that introduces significant changes. This new framework modifies the current visa exemption duration, replacing the 60-day exemption period with two new categories: 30-day and 15-day stays. The updated visa rules are designed to streamline the entry process while adapting to the evolving needs of travelers and the tourism industry.

Changes in Visa Categories

The modified visa exemptions will affect travelers from 60 countries and territories who will now be eligible for a 30-day stay in Thailand. Additionally, visitors from Seychelles and Mauritius can benefit from a 15-day visa exemption period. These changes reflect Thailand’s effort to foster tourism by providing more flexible options that cater to diverse travel needs while maintaining regulatory standards.

Visa on Arrival Updates

Under this new framework, specific updates have been made regarding the Visa on Arrival (VOA) eligibility. Citizens from Azerbaijan, Belarus, and Serbia will now be able to take advantage of the VOA option. This initiative is expected to enhance travel convenience and boost international visits by accommodating more varied visitor origins, aligning with Thailand’s strategic tourism development goals.

Source : Thailand introduces new 30-day and 15-day visa exemption rules from 15 September