Two individuals have been convicted for their roles in a £1.5m investment fraud.

Raymondip Bedi, 35, and Patrick Mavanga, 40, pleaded guilty to fraud, money laundering and carrying out regulated activity without authorisation.

Mavanga also pleaded guilty to possession of false identification documents and perverting the course of justice.

The duo was part of a group that defrauded at least 65 investors out of £1,541,799.

Between February 2017 and June 2019, the group cold-called consumers, directing them to a professional-looking website where they were offered high returns for fake investments in crypto.

The jury at Southwark Crown Court were unable to reach a verdict on a third defendant, and they will face a retrial in September 2025.

A fourth defendant, Rowena Bedi, was acquitted of money laundering. A further individual, Minas Filippidis, is wanted in relation to the same offences.

Bedi and Mavanga will be sentenced at a later date.

The criminal proceeding was brought by the Financial Conduct Authority after the defendants were arrested last April.

The Financial Conduct Authority’s joint executive director of enforcement and market oversight, Steve Smart, said: “Bedi and Mavanga lured investors with promises of high returns on crypto investments, but their schemes were nothing but a callous scam.

“If you’re contacted out of the blue about an investment opportunity that sounds too good to be true, then it probably is. If you’re in any doubt – don’t invest.”

A HOST of beers, ciders and wines have been quietly weakened – leaving shoppers demanding a return to their original strength.

Analysis by the Sun has uncovered a raft of booze sold in supermarkets which now have lower alcohol contents – most likely in response to hikes in booze duty by the Government. 

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In many cases the weakened drinks have also risen in price – a phenomenon known as “drinkflation”. 

Bottles of Banks’s Amber Ale were changed from 3.8% to 3.4% in the middle of last year, while the price went up from 89p to £1 in Tesco.

One reviewer wrote on the Tesco website: “Been buying it for years but will stop now. I would also rather pay more for quality.

“There should be a petition to change it back to its original taste and abv.”

A spokesman for the Carlsberg Marston’s Brewing Company Group, which makes Banks’ Ale, said its reduced ABV “supports moderation”, and argued the product still has “great taste and quality”.

Meanwhile Compton Orchard Medium Dry Cider is now 4%, down from 5% last year.

Its manufacturers said the Government’s duty hikes had impacted the firm, but it added that customers also wanted lighter options now so it supplies a range of products with different strengths.

Wines have been impacted – with Sun Online previously revealing how mainstream brands including Blossom Hill and Hardys have lowered their ABVs following tax hikes.

Today we can expose further reductions. Taparoo Valley Australian Shiraz, sold by Tesco, was 14% in July 2022, at a cost of £3.99 for a 75cl bottle, but it has since fallen to 11%, with the same volume costing £4.15.

One reviewer wrote: “This wine has steadily been reduced in alcohol % which has destroyed any value for money that it had . Thin and lacking in any varietal characteristics but what can you expect for the price?”

Caparelli Italian Rose Blush 75Cl, also sold only in Tesco, has fallen from 12% to 11%, but increased from £4.29 to £5.50 in two years.

Meanwhile Tesco Green Ginger Wine has been reduced from 15% in 2022, when it was sold as fortified wine, to its current level of 11.5%. The price has also increased from £3.75 to £4.50.

Tesco said of the changes: “We work with our suppliers to ensure that our own-brand wines offer great taste and value for our customers.”

The UK Government’s alcohol duty reforms introduced in August last year resulted in the biggest increases in booze duty in almost 50 years.

The duty paid on a bottle of still wine was pushed up by 20%, or 44p, based on an average alcohol strength of 12.5% ABV.

Wines that are 11% currently have a £2.35 duty imposed on each bottle, whereas any between 11.5% and 14.5% command a flat tax rate of £2.67. 

For that reason many bottles were pushed down to 11%.

From February, duty rates will change again with a new system of taxation introduced to penalise higher strength drinks, and Labour has pushed through the change in last week’s Budget.

Under the new regime, the single amount of duty paid on wines between 11.5 and 14.5% ABV – £2.67 – will be replaced with increasingly higher payable amounts according to the strength of the wine.

That means a 75cl bottle of wine at 14.5% ABV will see wine duty increase from £2.67 per bottle to £3.21, based on a predicted RPI inflation rate of 3.65%.

But for an 11% bottle the duty payable will be much less at £2.43, an enormous difference of 78p. 

The resulting array of weakened plonks have been dubbed “Rishi wines”, after the former Prime Minister who championed the reforms.

UN-BEER-LIEVABLE

Booze producers are also being incentivised to produce lower strength beers, with 3.4% bevvies falling into a lower tax bracket than 3.5% ones.

As a result Carlsberg Danish Pilsner, Grolsch Premium Pilsner and – as revealed today – Banks’ Amber Ale have been reduced to 3.4%. 

Currently beer with a strength between 1.3% and 3.4% have a duty of £9.27 for each litre of pure alcohol, whereas beer with an alcohol strength of 3.5% to 8.4% carries a duty of £21.01 for each pure litre of alcohol.

The duty payable on each of these brackets are set to rise by inflation (around 3.65%) in February.

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In the recent Autumn Budget, Chancellor Rachel Reeves announced a significant increase in employer National Insurance Contributions (NICs), raising the rate from 13.8% to 15% and lowering the threshold at which employers start paying NICs from £9,100 to £5,000 per year. Set to take effect from April 2025, this dramatic NIC increase is expected to generate around £25 billion annually for the Treasury but could also lead to higher consumer prices as businesses in labour-intensive sectors like retail and hospitality brace for the financial impact.

Related:Labour’s Tax Bombshell Leaves Brits £300 Poorer: Record-Breaking Tax Burden Slams Wages, Soars Inflation, and Pummels UK Businesses

The rise in employer NICs has sent shockwaves through sectors heavily reliant on large workforces. Industry leaders warn that this added burden could force businesses to pass on increased costs to consumers, compounding the cost-of-living crisis.

Hospitality Sector Response to Employer NIC Increase

Tim Martin, chairman of JD Wetherspoon, has highlighted that the NIC hike will add an estimated £60 million to the company’s annual costs. He warned that such a significant financial impact would likely lead to price increases for customers, mirroring the broader concerns expressed by many hospitality businesses already grappling with economic pressures.

Retail Sector Impact: M&S, Sainsbury’s, and Primark React

Marks & Spencer (M&S) projects annual costs rising by £180 million due to the NIC increase combined with other recent budget measures, such as a minimum wage hike. While M&S aims to absorb some costs, they have warned that consumers will likely see higher prices.

Sainsbury’s, one of the UK’s largest supermarket chains, echoed similar concerns, indicating that the NIC hike will lead to unavoidable cost increases. To offset these additional expenses, Sainsbury’s may need to raise prices on goods and services, which will directly impact shoppers.

Primark has voiced similar challenges, noting that while it strives to avoid price hikes, the NIC increase and mounting financial pressures mean redirecting investment to key growth areas. Primark’s approach underlines the strain the NIC rise places on even the largest retail players.

Economic Consequences of NIC Hike and Consumer Costs

The increase in employer NICs, while intended to bolster public services, raises serious concerns about inflation and higher consumer prices. Businesses across the hospitality and retail sectors warn of potentially severe economic implications, including job cuts, reduced growth, and increased costs for everyday goods and services.

How Consumers Can Prepare for Price Increases

As companies grapple with the financial impact of the NIC hike, consumers can take practical steps to mitigate higher costs:

Review Your Budget: Adjust monthly budgets to accommodate potential price increases in essential goods and services.

Utilise Discounts and Loyalty Schemes: Seek out special offers, promotions, and loyalty programs to maximize savings at supermarkets and retail stores.

Compare Prices: Use apps and websites to compare prices and find the best deals.

Bulk Buying: Purchase non-perishable items in bulk to take advantage of lower per-unit costs.

Explore Alternatives: Consider substitute products or lower-cost brands without compromising on value.

Dine In More: Reduce dining-out expenses by preparing meals at home to save on hospitality-related costs.

Cashback and Rewards: Use cashback programs and credit card rewards to minimise the impact of rising prices.

Related:Cheapest UK supermarket to shop in 2024

FAQ: Understanding the Impact of the NIC Increase on Prices

What is the new employer NIC rate?
The rate has been increased from 13.8% to 15%, starting from April 2025.

Why is the NIC rate rising?
The increase aims to raise additional revenue for public services but poses challenges for businesses and could lead to higher consumer costs.

Which sectors are most affected?
Retail and hospitality, which rely on large workforces, are particularly impacted, with companies like JD Wetherspoon, Marks & Spencer, Sainsbury’s, and Primark voicing concerns.

Will consumer prices rise?
Many businesses anticipate that the added NIC costs will lead to higher prices for consumers, though the extent may vary by sector.

How can consumers cope with higher costs?
Consumers can budget carefully, shop for deals, use loyalty programs, and consider alternative products to manage rising expenses.

The Verdict: A Difficult Balancing Act for Businesses and Consumers

The rise in employer NICs presents a formidable challenge for businesses, especially in labour-heavy sectors like retail and hospitality. While companies such as JD Wetherspoon, Marks & Spencer, Sainsbury’s, and Primark explore ways to absorb costs, passing some of the burden onto consumers seems inevitable. As these changes approach consumers must prepare for a shifting economic landscape, with increased prices and new financial strategies to cope.

Schroders has appointed Phil Middleton as head of UK business.

Middleton, who is currently the firm’s CEO, Americas, will take on the role from 1 January 2025.

He replaces James Rainbow, who will be leaving Schroders to pursue opportunities outside of the business. Rainbow has been with the wealth manager for 17 years.

Middleton, who joined Schroders in 1992, has a track record of working in the UK market.

He said: “It’s fantastic to be returning to the UK market, where I have spent so much of my career.

“Schroders has an award-winning UK business, with a compelling investment proposition, dedicated to solving the complex investment needs of our clients.

“I look forward to leading our UK business to drive further success and growth.”

During his 32-year tenure at Schroder, Middleton has held senior roles across the business in distribution and marketing.

In 2020, he moved to New York after he was appointed head of institutional distribution, North America, overseeing direct sales, relationship management and consultant relations.

He became CEO of North America in January 2022 and was subsequently appointed in June 2023 as CEO Americas.

Meanwhile, Tom Darnowski has been promoted to CEO Americas.

Darnowski has been with Schroders since 2013 leading product development across the Americas and most recently held the role of global head of product strategy, where he oversaw Schroders’ global product range.

Both roles will continue to report to Karine Szenberg, global head of client group at Schroders.

Szenberg said: “We are excited to welcome Phil back to the UK, a market that he knows extensively and where he already has a well-established track record.

“The UK is an important and valued market for Schroders and we believe now is the right time for Phil to return to lead this part of our business.”

Schroders provides active asset management, wealth management and investment solutions, with £773.7bn of assets under management at 30 June 2024.