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  • Today's business and finance round up 12th July 2022

Today's business and finance round up 12th July 2022

Tory leadership contenders tussle over tax

July 12, 2022

12th July 2022

Bite-sized business news from the UK and beyond

Good morning Imagine working at a company for decades and all you get is a backpack, cinema ticket and Starbucks cup? Well that’s what happened to a Burger King employee recently given a stingy giftbag in recognition of 27 years of loyal service. His daughter thought he deserved more and, with the internet’s help, she’s raised over $300,000.

Today's stories

  • Tory leadership contenders tussle over tax

  • Sri Lankan leaders vow to stand down as economic crisis deepens

POLITICSTory leadership contenders tussle over tax

  • Foreign Secretary Liz Truss – start cutting taxes from day one and cancel a recent increase in National Insurance

  • Former Health Secretary Sajid Javid - cuts to income tax, National Insurance and fuel duty

  • Chancellor Nadhim Zahawi - cut income tax by 2p within two years funded by a reduction in government spending

  • Former Health Secretary Jeremy Hunt - reduce corporation tax and a business rates holiday in the most deprived parts of the country

Other stories to keep you in the loop

GLOBALSri Lankan leaders vow to stand down as economic crisis deepens

What happened?Sri Lanka’s top two leaders pledged to resign over the weekend amid mass protests, which saw demonstrators storm and occupy the presidential residence.  How did we get here?The country of 22m people has been gripped by an economic crisis driven by a series of policy blunders like unfunded tax cuts, significant public spending and a pandemic-induced drop in tourism revenue. Sri Lankans have faced severe shortages of food, medicine and fuel among other necessities and inflation is running at 50%.The drop in government revenue ultimately meant that the national debt couldn’t be servicedSri Lanka owes $51bn and doesn’t have the money to make interest payments. The country has to make $7bn in debt payments this year to avoid default, and is seeking $3bn in emergency loans from the International Monetary Fund. The IMF wants tax and interest rate hikes and cuts to public spending for that to happen. Sri Lanka is also negotiating debt relief measures with the G7 and China.Sri Lanka is not alone. The number of developing countries with unsustainable debt levels has more than doubled this year to 19, according to Bloomberg data. That leaves $237bn due to foreign debt investors in uncertain territory.

Stat of the day

India is set to become the world's most populous country next year, overtaking China with its 1.4bn people, according to UN figures. By this November, the planet will be home to 8bn

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