Private equity bosses will defend their lucrative tax breaks on buyout deals when they meet MPs on the powerful Treasury select committee on Wednesday despite weekend reports that they would capitulate to demands for higher taxes, reports The Guardian.
Directors of five of the biggest firms, including Damon Buffini, the head of Permira, which owns the AA and Birds Eye, will tell MPs on the committee that higher taxes will lead to an exodus of firms to rival financial centres which are busy lowering their tax to compete with London. They will also argue the risks they take should be rewarded with a lower tax regime.
Unions and MPs have argued in recent months that private equity firms were profiteering while paying less tax than many low paid workers. Unions have also expressed concern about the sector, arguing that it buys up firms using cheap debt, cuts thousands of jobs and sells off the assets for a short term gain.
MORTGAGE INTEREST PAYMENTS for first-time homebuyers are at their least affordable level for 15 years as a result of the recent interest rate hikes, reports The Independent.
In April, first-timers were paying an average of 18.7% of their income to cover interest payments - the highest level since 1992 and up from 18.3% in March and 16.3% in April last year, reports the Council of Mortgage Lenders (CML).
Home movers are also finding conditions tougher than at any time since the early 1990s, paying an average 16.3% of their income to service mortgage interest costs in April.
BRITAIN’S HEALTHCARE REGULATOR is to examine the growing role of private equity in the hospitals sector after the £1.44 billion sale of 26 BUPA hospitals to Cinven, reports The Times.
The sale, disclosed by The Times on Saturday, means that more than 70% of Britain’s private hospitals – which themselves play an increasingly important role in providing services to the NHS – will be controlled by private equity firms.
Jon Billings, head of independent healthcare at the Healthcare Commission, said: “It’s raised an issue that we need to look at.
” The commission had no preconceptions about the trend, he said, but there were potential implications for the financial stability of hospitals and for how they are run. These could, in turn, have a bearing on public health in Britain."
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