The chancellor’s adviser on entrepreneurs has warned that the machinery of government has already been “frozen for six weeks”, and cautioned that the change of prime minister amounts to a “colossal waste of energy” at the very moment British business needs decisions, not delay.

Alex Depledge, the serial entrepreneur appointed by Rachel Reeves as an adviser last June, said she feared Whitehall would remain stalled for many months while a new political leadership beds in.

“We are going to lose six months, at best, probably a year once you start to brief the new ministers coming in. It is just a colossal waste of energy. The British people deserve better,” she told an audience of business leaders at The Times Entrepreneurs Network Live event in London.

Depledge, co-founder and former chief executive of the architecture technology platform Resi, made her comments a day after Sir Keir Starmer resigned as prime minister, clearing the way for Andy Burnham to become the next leader. The future of Reeves as chancellor remains unclear.

The intervention is the latest warning from the business world about the cost of prolonged uncertainty in Westminster, a theme that has dominated boardroom conversation ever since founders and MPs began cautioning that Britain’s tax system is, in effect, telling entrepreneurs to leave.

Depledge said it was now very difficult to make meaningful progress inside government. “It is about carving out what we can get done within the parameters in which we are allowed to operate,” she said. “There is some stuff we can’t do any more, but there are other things you can.

“My biggest fear is that I have to spend another year trying to get new ministers and new people to understand the burning platform and the need to move at speed.”

Separately, Gareth Quarry, a Labour donor, investor and long-standing director of the legal recruitment consultancy SSQ, called for Wes Streeting to become the next chancellor.

Quarry, a former Conservative donor who gave £150,000 to Labour before the general election, said: “Wes would make an excellent chancellor because the City wouldn’t be spooked by him. I’m a businessman with a large number of businesses. I also hold significant assets in gilts.”

He said Streeting would “command the respect” of the City, adding: “And that is going to be fundamental as to what comes next. That’s assuming it’s not going to continue to be Rachel.”

Another Labour donor and business leader, speaking confidentially, said Ed Miliband was “too ideological” and “clearly just doesn’t understand what energy security means”. They added that Reeves, who although had “made mistakes, would not be a bad outcome” if she continued as chancellor.

The succession debate lands against a backdrop of mounting anxiety among wealth creators, with Reeves repeatedly warned against “anti-enterprise tax rises” and growing evidence that Britain is facing one of the largest exoduses of millionaires of any major economy.

Also speaking at the TEN Live event, Harry Stebbings, who has invested more than $550 million in promising young companies across a series of venture capital funds and is founder of the popular tech podcast 20VC, said that, if asked, he would advise Burnham not to raise taxes on investors and entrepreneurs.

“Don’t fing bring in a wealth tax. We’ll all fing go,” he said. “I have looked at Monaco and it is not as good as Dubai. Probably Milan or Athens. Touching a wealth tax would really kill the investor side and the founder side.”

His warning chimes with the Institute for Fiscal Studies, which has cautioned that the more an annual wealth tax is concentrated on the very wealthy, the more it would incentivise them to leave, or simply never come to, the UK in the first place.

Stebbings, who has previously argued the UK should adopt a zero per cent capital gains rate for global talent, said the priority should be attracting and keeping the people who build companies.

“The most important thing is that we get amazing talent-building [companies] in the UK. Let’s give unbelievably easy access to high-talented people to come and build in our country. Income tax free for the first year, why not?

“If you are an amazing entrepreneur and want to build your company in this country we’ll give you no capital gains for the life of your business. We could be so creative, and this is the crime of politicians, that none of them has had a proper job. When it comes to creativity and figuring out a solution that works for the country, it is ‘let’s go back to a think tank’.”

For Britain’s founders, the message from the room was blunt: the country cannot afford to spend another year with its hands tied while Westminster works out who is in charge.

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This article was written by

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Indian stock markets have continued their upward march even as foreign institutional investors remain largely on the sidelines. Investor attention has increasingly shifted towards earnings performance and stock-specific opportunities rather than relying solely on overall market momentum.

Speaking to ET Now, Shreyash Devalkar, Head-Equity, Axis MF said the June-quarter earnings season has so far been more resilient than initially feared, with listed companies reporting only limited impact from geopolitical tensions and inflationary pressures.

Earnings resilience despite macro concerns
Devalkar believes the focus has shifted back to corporate earnings after the results season. While smaller companies have faced some challenges, the broader listed universe has remained relatively insulated.”We looked at the internals of the market. They are always driven by earnings growth, and that is what, at the end of the day, the market has come back to after the results season. Earlier, it was expected that the June quarter would see a significant impact from the war and inflation. While it definitely affected smaller companies, the commentary from listed companies has largely suggested that the impact has been benign,” he said.

He added that higher nominal GDP growth and inflation could actually support revenue growth across several sectors.
“Higher nominal GDP growth and inflation would actually help revenue growth this quarter in many segments. There have been price increases, which are reflected in improving credit growth. We are looking at companies where higher pricing and higher revenue growth will come with minimal impact on margins. In some segments, the price increase may more than compensate for higher raw material costs, allowing margins to remain broadly intact,” he added.
Largecaps may finally catch up
Midcap companies have consistently delivered stronger earnings growth than largecaps over the past several quarters. However, Devalkar believes improving nominal GDP growth could help narrow that gap.

“That has been the case for many quarters now. Midcaps have consistently delivered stronger growth, while largecap growth has remained subdued. In my judgment, largecap companies generally cannot grow too far away from nominal GDP growth. With nominal GDP growth improving because of inflation, there is a case for largecaps to see an uptick in headline revenue growth,” he said.

IT still lacks growth triggers
Despite attractive valuations, Devalkar believes the IT sector needs stronger revenue growth before becoming compelling again.

“When the growth for any sector is below 5%, it becomes difficult to generate meaningful equity returns. Even after combining low dollar revenue growth with rupee depreciation, free cash flow yields, dividends and buybacks, the overall return is only reasonable, not exciting. Unless dollar revenue growth improves beyond 5%, it becomes difficult to build a strong investment case,” he said.

He also pointed out that some global IT peers benefiting from the AI wave are trading at lower valuation multiples.

“One should not only look at valuation. Since growth is below 5% so far, returns need to be evaluated more holistically,” he said.

Auto ancillaries preferred over OEMs
Within automobiles, Devalkar said his preference remains firmly tilted towards auto ancillary companies rather than vehicle manufacturers.

“Broadly, we are more positive on auto ancillaries than auto OEMs. Traditionally, auto ancillary companies depended heavily on the domestic auto cycle. Today, many of them have diversified into non-auto businesses and exports, making them an attractive play on India’s manufacturing story. That is why we continue to have meaningful exposure to this space,” he said.

Pharma and healthcare remain portfolio favourites
Devalkar said the investment case for pharmaceuticals has evolved, with domestic businesses driving consistent growth while international operations have stabilised.

“There are two parts to pharma—domestic and international. The international business is broadly getting into a base and is reasonably priced. On the domestic front, growth remains strong and is comparable to, or even better than, many FMCG companies. That is why pharma continues to fit well within our portfolio,” he said.

He added that the firm’s healthcare exposure extends beyond pharmaceuticals.

“Our exposure is not only to pharma but also to healthcare, including hospitals and diagnostics. We remain positive on the entire healthcare space,” he said.

Defence remains a structural story, but valuations need caution
While maintaining a positive long-term view on defence, Devalkar advised investors to be selective as valuations have become richer.

“Defence is a long-term structural story, and there is no doubt about that. However, unlike three years ago, these structural themes are no longer in the early stages. Whether it is power or defence, these sectors have now been discovered. Investors need to be cautious because of valuations,” he said.

Crude oil remains the biggest risk
On market risks, Devalkar believes recent developments have largely been supportive for equities, though crude oil prices continue to warrant close monitoring.

“There have been more incremental positives than negatives. Cooling crude prices and the measures taken by the government and the central bank have been supportive. The biggest risk continues to be crude oil because it remains highly unpredictable. The monsoon is also a risk, but it is broadly known and largely priced in,” he said.

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Shares of Tata Motors (Commercial Vehicles) rallied as much as 5% to their day’s high of Rs 420 on the BSE on Wednesday after the company outlined an ambitious roadmap for the next two years, targeting double-digit EBITDA margins, free cash flow of 7-9% of revenue, and annual investment spending of 2-4% of revenue by FY2028 as it pursues global expansion, electrification and higher-margin digital businesses.

At its Investor Day 2026, the company said it had already achieved several of its FY2027 targets ahead of schedule, including margin improvement, cash generation and strengthening its leadership position in heavy commercial vehicles.

Here’s what brokerages are saying:

JM Financial: With a buy call and target price of Rs 475, the brokerage implies an upside of 19% from current levels. Analysts said Tata Motors’ management remains optimistic on the long-term outlook for the commercial vehicle business, backed by healthy GDP growth, sustained infrastructure spending, and rising e-commerce penetration.

The brokerage also noted that GST-driven freight efficiencies continue to support demand for multi-axle trucks. While elevated diesel prices, commodity inflation, geopolitical uncertainties and the possibility of interest rate hikes remain near-term challenges, management believes these headwinds are manageable and do not materially alter the sector’s long-term growth prospects.

Also read: Tata Motors CV bets on global expansion, EVs and digital businesses for next phase of growth

Nomura:

The foreign brokerage has maintained its Neutral rating on Tata Motors with a target price of Rs 400. It said medium and heavy commercial vehicle demand has improved in June as concerns related to the recent war have eased.Following a plant visit, Nomura highlighted several initiatives undertaken by the company to enhance products and services through technology and digital integration. According to the brokerage, these efforts should strengthen Tata Motors’ long-term competitiveness and improve customer economics.

However, Nomura remains cautious on Iveco, citing weak performance over the past six months. It said it is awaiting greater clarity on the integration process and the realisation of synergies before turning more constructive on the stock.
For its forecasts, Nomura expects MHCV volumes to grow 5% each in FY27 and FY28, while EBITDA margins are estimated at 12.6% and 13.3%, respectively. The brokerage noted that volumes could see an upside if Tata Motors gains market share. It also expects Iveco’s EBIT margins to improve to 2.4% in FY27 and 5.5% in FY28.

Motilal Oswal: The brokerage has a Neutral rating and a target of Rs 416, implying 4% upside. It has turned cautious on the near-term outlook for Tata Motors’ commercial vehicle business, citing recent geopolitical tensions and their potential impact on the Indian economy. It also expects margins to remain under pressure in the near term. Read more: Tata Motors PV eyes over Rs 6 lakh crore revenue by FY31

Factoring in a more measured demand environment, Motilal Oswal now expects Tata Motors’ commercial vehicle volumes to grow at a CAGR of 6% over FY26-28. Based on this, it estimates revenue, EBITDA and profit after tax to grow at a CAGR of 8%, 8% and 10%, respectively, during the same period.

The brokerage said the stock appears fairly valued at 21.7 times FY27 estimated earnings and 18.6 times FY28 estimated earnings. The valuation is based on 12 times FY28 estimated EV/EBITDA for the core business, in line with peers, along with an additional value of Rs 12 per share for Tata Motors’ stake in Tata Capital.

South East Water (SEW) has announced a new chief executive designate after its previous boss resigned.

The heavily criticised water company said that John Halsall will take over from David Hinton, pending regulatory approval.

Halsall has previously worked for Thames Water, South West Water and Network Rail.

The announcement comes as SEW remains under fire for repeated water supply failures in Kent and Sussex and grapples with major infrastructure issues.

Halsall said that his priorities were “responding to customers’ immediate concerns” and delivering on short term improvements.

In the longer term, Halsall said that he would deliver the company’s largest ever investment programme of £2.1bn to “improve reliability and resilience”.

He added: “I look forward to working with our customers, community partners, regulators and colleagues to rebuild trust in South East Water, drive the improvements the business needs to deliver and make the changes people want to see.”