Sunday newspaper round-up: Debt interest, Autumn Budget, RC Fornax
By Alexander Bueso
Date: Sunday 12 Jan 2025
(Sharecast News) - Rachel Reeves has been left facing a £50bn bill as a result of higher debt interest payments following a rout in the bond market. And City exports caution that the bill could keep climbing. Hence, the Chancellor may soon have to choose between either bending her own fiscal rules, enacting tax increases or cutting spending. The rout has seen the tiny £10bn buffer left by Reeves to meet her main fiscal rule, which requires that tax revenues cover day-to-day expenditures, evaporate. - The Financial Mail on Sunday
Private equity outfit TDR Capital has dropped plans to sell BPP Holdings for £2.5bn as no buyer was found who would pay the asking price. Hence, TDR will now look to secure a debt deal in order to refinance the company, a specialist in training courses. The parties which had initially expressed an interest later balked. due to the "political noise" in the aftermath of the autumn budget, three sources close to the talks said. - The Sunday Times
Defence engineering consultancy RC Fornax is looking to raise at least £5m via a flotation in London which would see the outfit fetch a £25m valuation. The listing will give the AIM market a boost on its 30th anniversary. The business rang up annual revenues of £6.5m in 2024 and is now hoping to tap into the expected increase in defence outlays due to the heightened geopolitical tensions. It also stands to benefit from the Ministry of Defence's stated aim of directing a quarter of procurement funds to small and medium-sized enterprises. - The Financial Mail on Sunday
British Steel is set to bin plans to brin steelmaking back to Teesside in what amounts to a big blow to jobs in northeast England. The Chinese-owned group has been planning to construct one "green steel" furnace at Teesside and another at Scunthorpe. Instead, both will now be built at the latter site. - The Sunday Times
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