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Weekly News 16th Sep
Latest updates to UK Immigration Rules
On 10th September 2024, the UK government announced the latest amendments to its immigration laws. The changes mainly include adjustments to the minimum salary requirements for certain skilled worker visa roles, an increase in the maintenance funds required for student visas, and clarification of the requirements for the Electronic Travel Authorisation (ETA).
Minimum Salary Thresholds for Certain Skilled Worker Roles Reduced
One of the key aspects of the amendments, which has garnered significant attention, is the revision of the minimum salary thresholds (known as the “going rate”) for hundreds of job roles under the Skilled Worker Visa.
It is important to note that to be eligible to apply for a Skilled Worker visa, the applicant’s salary can not less than the general skilled worker visa minimum salary of £38,700 per year or the specific going rate. The only expectations are for applicants under the age of 26, or hold a valid student or graduate visa.
Increase in Maintenance Funds for UK Student Visas
Effective from 2nd January 2025, the maintenance fund requirements for student visas will increase for the first time since 2020. The new maintenance requirements are as follows:
For students living in London, the monthly living cost requirement will rise from £1,334 to £1,483, an increase of £149 per month. For students outside London, the monthly living cost will increase from £1,023 to £1,136, an increase of £113 per month.
Updates to the Electronic Travel Authorisation (ETA)
Under the new measures, passport holders from visa-exempt countries will be required to apply for ETA approval before entering the UK.
From 27th November 2024, non-European citizens who are eligible can begin applying for an ETA, and from 8th January 2025, an ETA will be mandatory for entry into the UK. By 2nd April 2025, all travellers (non-visa holders) entering the UK, except UK and Irish citizens, will need to obtain ETA authorisation before arrival.
The ETA application will cost £10 per application and will allow multiple visits to the UK within its validity, with a maximum stay of six months per visit.
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UK economy flatlines for a second month in a row
According to the Office for National Statistics (ONS), the UK economy unexpectedly recorded zero growth in July, falling short of the anticipated 0.3% month-on-month growth. This marks the second consecutive month of stagnation. In July, the services sector grew by 0.1%, but manufacturing and construction saw declines of 0.8% and 0.4%, respectively.
Data released last month showed that the UK economy grew by 0.6% in the second quarter, following a 0.7% increase in the first three months of the year.
Hailey Low, Associate Economist at the National Institute of Economic and Social Research (NIESR), commented that although the economic growth figures are weak, the strong start to 2024 could carry through to the second half of the year, albeit with a slower growth momentum.
Lindsay James, an Investment Strategist at Quilter Investors, added: “The UK economy was expected to continue to show modest momentum, but signs suggest that the growth from the first half of the year is now stuttering.”
The Bank of England (BoE) is set to hold a meeting next week to announce its latest interest rate decision. Markets have widely anticipated that rates will remain unchanged in September, but the Bank is expected to gradually ease policy, with two rate cuts forecast by the end of the year.
Inflation remains above the 2% target. Wage growth in the three months to July continued to slow, with annual pay, excluding bonuses, rising by 5.1% during this period. Meanwhile, the unemployment rate fell from 4.2% in the three months to June to 4.1%.
>>Read More ….
Amazon to invest £8 billion in UK, continuing AWS expansion Venues
Amazon Web Services (AWS) has announced plans to invest £8 billion over the next five years in the UK to expand its cloud computing operations, with the funds going towards the construction, operation, and maintenance of data centres. This move is part of a series of recent expansion efforts by the company across Europe and provides a significant boost to the UK’s new Labour government in terms of investment.
The investment is estimated to create up to 14,000 jobs and contribute £14 billion to the UK’s GDP between 2024 and 2028.
AWS, the world’s largest provider of cloud computing services and data storage, operates through vast networks of servers. Customers like AstraZeneca, Cancer Research UK, Deliveroo, easyJet, EDF, Genomics England, Just Eat, Monzo, Natural History Museum, NatWest Group, Sainsbury’s, Swindon Borough Council, The Very Group, UK Biobank, and Zilch are using AWS to lower costs, become more agile, and innovate faster. Earlier this year, AWS announced its plans to invest tens of billions in similar long-term projects in Germany, Mexico, the United States, Saudi Arabia, and Singapore.
>>Read More ….
PwC fined and banned for six month in China
After completing its inspection of PwC’s Chinese auditing arm regarding the audit of Evergrande Group, the Chinese Ministry of Finance issued a massive fine to PwC, one of the Big Four accounting firms.
For violations related to PwC’s audit of Evergrande Group, a Chinese property group, in 2018, the firm was fined a total of £47m, which includes confiscation of illegal earnings. In addition, PwC received a warning, a six-month suspension of operations, and administrative penalties that included the revocation of the business license of PwC’s auditing business PwC ZhongTian.
China’s Ministry of Finance stated that PwC committed financial fraud and audit malpractice in auditing Evergrande Group, despite being fully aware that the company’s financial statements contained “major misstatements.”
Evergrande Group, burdened with heavy debt, was declared bankrupt and ordered into liquidation by the court in January. PwC’s involvement in this matter severely undermined the foundations of law and integrity, harming investors’ interests.
PwC China acknowledged their work done on the case work had fallen significantly below the firm’s standards and has since implemented a series of accountability and corrective actions. These include the dismissal of six partners and the initiation of fines against the team leaders responsible. Additionally, five other involved employees have also left the firm.
It has been reported that PwC’s Global Head of Risk and Regulatory, Hemione Hudson, has been temporarily appointed to manage the China division. PwC’s Global Chairman, Mohamed Kande, stated, “It is not representative of what we stand for as a network and there is no room for this at PwC. Following a thorough investigation, we ensured that actions were taken to hold those responsible to account.”
During PwC China’s six-month suspension from audit services, the company’s other non-audit services will not be affected.
>>Read More ….
Vodafone-Three to merge could affect telecom market
The UK’s Competition and Markets Authority (CMA) has announced the preliminary findings of its investigation into the proposed merger between telecom companies Vodafone and Three. The report states that the deal could “significantly reduce” the number of UK network operators, potentially leading to higher mobile bills for millions of users.
While the CMA acknowledges in its report that the merger could improve mobile network quality and accelerate the rollout of 5G services in the UK, it remains concerned that the merged group may not have sufficient incentive to complete the necessary investments.
Vodafone and Three are requested to issue assurances before the merger can be approved. The final decision is expected to be announced on 7th of December.
In response, Vodafone and Three issued a joint statement challenging the regulator’s findings, claiming that the merger would fix the UK’s “dysfunctional mobile market” and “unleash more competition and investment.”
If successful, the merger would result in the UK’s largest mobile operator, with over 27 million customers, surpassing BT’s EE, as well as Virgin Media O2.
>>Read More ….
