Your commercial news round-up: tax rises, OpenAI, unhealthy food, Selfridges

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Have you been staying up to date with the commercial news? Rachel Reeves outlined new policies and potential tax rises at the Labour Party Conference, and OpenAI has finalised a secondary share sale. Meanwhile, a new law has banned multi-buy deals for ‘unhealthy’ food and Selfridges has seen a drop in takings due to a reduction in tourist spending. Read on to find out more!

• Rachel Reeves has hinted at potential tax rises in her recent speech at Labour’s annual party conference in Liverpool. While she pledged to keep "taxes, inflation and interest rates as low as possible", she stated that the government’s choices have been made “harder” by international events and “long-term damage” done to the economy, such as Liz Truss’ Conservative government sending mortgage costs “spiralling” with its mini-budget. Reeves explained that “the world has changed” over the past year, referring to wars in Europe and the Middle East, US tariffs and the cost-of-living crisis. Speaking on future policies Reeves pledged that:
  • young people who have been out of a job or education for 18 months will receive a guaranteed work placement;
  • the government will fund a library in every primary school in England;
  • a “hit squad” will aim to target covid-19 fraudsters;
  • new legislation will ensure ships and steel are British made; and
  • the government will “push ahead” with plans for Northern Powerhouse Rail.
     
• AI company OpenAI has finalised a secondary share sale totalling $6.6 billion, with stocks sold at a record $500 billion valuation, up from $300 billion earlier this year. This sale marked OpenAI’s status as the world’s most valuable privately held company, surpassing astronautics company SpaceX. While $10.3 billion in shares were up for sale, only about two thirds of stocks changed hands, which is viewed internally as a vote of confidence in the company’s long-term prospects, according to CNBC. Current and former employees who have held shares for over two years were invited to participate in the sale. This move comes amid intensifying competition for AI talent, with technology company Meta reportedly offering nine-figure salaries to attract top researchers.
   
• Price or multibuy promotions on unhealthy food and drink have been banned in England, as of 1 October. This measure, which has been pushed back previously due to the cost-of-living crisis, aims to tackle childhood obesity. A new classification system will define what is classed as ‘unhealthy’, with drinks like lemonade and cola targeted due to their sugar content. The regulations also include a ban on refills of certain drinks in cafes and restaurants. There are also planned restrictions to follow on advertising unhealthy food and drink on television before 9:00pm. A Department of Health and Social Care spokesman said the restrictions were a "crucial step" in giving children a healthy, happy start in life. President of the Association of Public Health Directors, Greg Fell, said this move should not be seen as a "silver bullet". Fell explained: "Multi-buy promotions do not save people money – in fact, they encourage them to spend more. They are designed to encourage impulsive purchases and to normalise buying more and more frequently."
   
• Selfridges has seen a 7% drop in sales, which its linked to the axing of tax-free shopping for tourists. In the 48 weeks to 4 January 2025, the store made £775 million compared to £835 million recorded over the 53 weeks of its previous year. The group hasn’t made a pre-tax profit since 2019. Retailers have stated that US and Asian shoppers are more likely to spend more in cities like Paris and Milan rather than London since changes to tax-free shopping. Selfridges also said that both the rise in the price of luxury goods and the cost-of-living crisis have impacted sales.

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