Good morning,
The latest round of levelling up largesse continues to leave a sour taste in the mouths of many, with even the winners of funding critical of the process. Four in five bids for the £2.1bn were rejected, with West Midlands mayor Andy Street saying it is time to end the “begging bowl culture”. Meanwhile, the prime minister has rejected claims that more money has been given to wealthy areas in the South than to poorer areas in the North.
KKR has become the latest investment manager to limit withdrawals from a property fund. It has followed Blackstone’s lead by limiting redemptions from its Krest vehicle. Analysts have warned of a “broadening contagion”.
In this week’s EG Interview, we talk to Marie-Julie Gheysens about Ghelamco’s plans for London. “Imagine being tasked with growing a property business in London and across Western Europe in one of the most unique economic environments at just 28 years old.”
In times of economic turbulence, businesses typically stick to what they know best, writes Investec’s Ed Boughton. That’s why the lenders are leaning in to London.
But Britain is losing its reputation as a hub and home for the wealthy, as hundreds more millionaires left last year.
And the chancellor has warned Conservative MPs that there will be no tax cuts in the March Budget, despite strategists saying it would be the best time for a pre-election giveaway.
Inflation is leading to more hospitality casualties than Covid, according to new figures. More than 18 premises a day closed in the last quarter.
But there is some good news, especially for chocolate lovers. Hotel Chocolat says it plans to open 50 new shops in the UK after enjoying its best ever Christmas.
But Pollock’s, the country’s oldest toy museum, is looking for a new home after abruptly closing its doors after 70 years.
Premier Foods has announced that it will close its custard factory in Knighton, Staffordshire.
And Lloyds Pharmacy will close 237 of its outlets in Sainsbury’s this year.
The FT (£) looks at how Britishvolt went from darling of the new green economy to spectacular failure, and asks what will happen to the 92-hectare site of its planned gigafactory in Blyth.
And finally, the government has been at great pains to point out its commitment to levelling up, after reports earlier in the week that it was telling MPs to avoid using the phrase. Business secretary Grant Shapps appears to be sticking to the earlier plan, though, eagerly telling everyone of his plans to “scale up Britain”. But the prime minister has been racing across the country to talk about projects at such speed that he hasn’t even had time to do up his seatbelt. It was supposed to have been a victory lap, but it is fast turning into a car crash, and a pile up. Even Conservative West Midlands mayor Andy Street has been echoing Labour’s “Hunger Games” attack line, saying that levelling up was “begging bowl” politics, and powers and funding should just be handed to, well, mayors. But it is perhaps unsurprising that Sunak is taking so much flak. There is only one round left of the funding. So far 200 projects have been successful, while more than 700 have not. A lot of people are worried that levelling up is just a phrase, and one that should be dropped. Or perhaps the PM should just belt up?
