Money blog: Spain proposes 100% tax on foreign-owned homes in 'unprecedented' move (2025)

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  • Exclusive: Pound has fallen against 51 out of 54 popular currencies
  • Spain proposes 100% tax on foreign-owned homes in 'unprecedented' move
Essential reads
  • TUI 'sorry' and refunds reader £196 over baggage fee - here's what to do if it happens to you
  • What it's really like to be... a novelist
  • This is the silent war the perfume industry won't tell you about
  • Turmoil in the markets explained - and should we be worried?

11:05:01

Michelin-star chef shuts Edinburgh restaurant

Kora in Edinburgh has become the latest restaurant owned by a Michelin-starred chef to close its doors.

Chef Tom Kitchin, a regular on TV, posted on Instagram to say the restaurant, which he opened with his wife in 2022, was closing at the end of the month due to the "current economic climate".

He wrote: "Our regular diners and our suppliers have been instrumental in KORA's success. Our incredible team has really shown visitors to Edinburgh how incredible Scottish fare is and how proud we are to promote Scottish hospitality.

"Thank you Bruntsfield. The memories will always live on."

Last year high-profile chefs including Marco Pierre White, Michel Roux Jr, Marcus Wareing, Monica Galetti, Simon Rimmer and Tom Brown all announced restaurant closures.

The closures came amid rising costs, staff shortages and a sense the public isn't willing to blow out on high-end food the way they used to.

Mr Kitchin's Michelin-starred The Kitchin - where he became Scotland's youngest winner of the cooking accolade - remains open in Leith.

10:19:42

A reprieve for Reeves?

By Sarah Taaffe-Maguire, business and economics reporter

Chancellor Rachel Reeves may be delivered a brief reprieve if initial market performance continues throughout the day. Things have not got worse.

A week of market turbulence called into question Ms Reeves's political future, but on Tuesday morning the pound recovered some loss and ticked up to $1.22. It's still near the 14-month low hit on Monday.

Government borrowing costs dipped. The interest rate on benchmark 10-year government debt fell but still remains around levels previously seen around the 2008 global financial crisis. Longer-term 30-year borrowing costs are still near the mid-1998 high seen on Monday despite a dip this morning.

It's a similar story on the UK stock market - the FTSE 100 index of the London Stock Exchange's most valuable companies rose 0.08% but has yet to recover from falls at the end of last week.

High street sports retailer JD Sport is the biggest loser of the morning with its share price down a whopping 9.97%. It issued a Christmas trading update saying it "chose not to participate in what was a more promotional environment in the period than we anticipated".

It'll profit less than first thought as "market headwinds were higher than we anticipated" and are expected to continue into 2025. More people shopped in store and shoe sales outperformed clothes, the chain said.

The more domestic-comprised FTSE 250 index was up 0.59%, failing to make up for last week's losses.

It's not an immediate concern for the government but rising oil prices could be visible to motorists in a week or so and could be another force pushing up inflation. A barrel of Brent crude, the leading measure of oil prices, has gone 10% higher in the first weeks of 2025 and is now up to $81.07.

09:51:01

Calls for rent caps within tenancies as landmark bill returns to Commons

Campaigners are calling on the government to allow rents to be capped within tenancies as a key bill returns to the Commons today.

More than 30 MPs have backed an amendment to the Renters' Rights Bill which, if passed, would restrict how much landlords can raise rents on sitting tenants by limiting percentage increases to inflation or average wage growth - whichever is lowest.

The bill, which was first proposed by the Conservatives, promises to abolishSection 21 "no-fault evictions", the legal mechanism that allows landlords to evict tenants without providing a reason.

Section 21 notices have been identified as a key driver of homelessness by housing charities including Shelter, which says about 500 renters receive a no-fault eviction every day.

However, campaigners have expressed concern that if Section 21 notices are banned, landlords will use other means to evict tenants, including by pricing out tenants with rent hikes.

Read the full story here...

08:50:03

Spain proposes 100% tax on foreign-owned homes in 'unprecedented' move

Spain is planning to impose a tax of up to 100% on properties brought by non-residents from countries outside the European Union - including the UK.

The measure was one of many announced by Prime Minister Pedro Sanchez on Monday, and differs to the planned increase in taxes on holiday rentals that the Money team covered yesterday.

Speaking at an economic forum in Madrid, Mr Sanchez said the tax would be "unprecedented" in Spanish history.

"In 2023 non-European Union residents bought around 27,000 houses and flats in Spain," Mr Sanchez said.

"And they didn't do it to live in them, they didn't do it for their families to have a place to live, they did it to speculate, to make money from them, which we – in the context of shortage that we are in – obviously cannot allow."

The prime minster stopped short of explaining how the plan would work or when it would be sent to parliament for approval.

Read more on this story here...

08:36:19

Why are Britain's economic vibes so bad?

As oureconomics and data editor Ed Conwayexplains on ourDaily podcast, confidence appears to have been shaken "without a piece of news that's pushed them there".

"Which suggests it's vibes," says Conway. "The vibes have gone against the UK."

From Brexit to the budget - it's all contributing

It's not as if Britain is a massive outlier, he notes, with the cost of government borrowing also heading up in Europe and the US.

There are global factors having an impact everywhere - such as the imminent Trump presidency and what that might mean for trade.

So quite why the UK's "vibes" feel particularly troubling right now is "hard to put your finger on".

"To some extent it's things like Brexit," says Conway, and the mini-budget of 2022 also casts a long shadow.

But it's also Labour's October budget - "it did not help".

'People are nervous about the UK'

Even the run-up to the big day was "making people feel a bit depressed" about the UK's economic prospects, "with all this language about the economy being in a terrible place and this enormous black hole".

"They overdid that," Conway says of Labour.

For different reasons (in 2022 it was to fund tax cuts, in 2024 it's for public spending), the UK government wants to borrow more money and investors aren't totally convinced.

"You build up credibility over a long time, as a nation," says Conway - and for the time being it's not been rebuilt.

"People still nervous when they look at the UK."

Listen to the full episode here...

07:29:10

Pound has fallen against 51 out of 54 popular currencies

There are many consequences when sterling falls - but one that many Britons will notice is they'll get less holiday money for their pound.

Research supplied to the Money blog by travel money specialists No1 Currency shows the pound has fallen against 51 out of 54 popular currencies since the end of October.

This, of course, is when Rachel Reeves delivered her first budget - but while there is correlation, we're not suggesting complete causation.

Other factors are in play - notably Donald Trump's election victory and promise of tariffs, which along with positive jobs data has pushed back expectations for US interest rate cuts. That has had the effect of strengthening the dollar, as investors like high interest rates.

Sterling has slumped 6.8% against the US dollar, and is down sharply against the currencies of winter sun hotspots Jamaica, Barbados and Sri Lanka.

The sharpest drop has been against the Costa Rican colon - with the pound now worth 8.3% less. Meanwhile, skiers heading to Switzerland will also feel an extra chill from sterling's slump, as the pound is currently worth 1.11 Swiss francs, down 1.3% from the 1.13 it stood at on budget day.

Against the euro, the pound has slipped 1%.

Simon Phillips, managing director of No1 Currency, told Money:"Labour's post-election honeymoon, and the brief surge in sterling that accompanied it, all seems a very long time ago.

"The pound is now worth less against nearly all of the most popular holiday currencies than it was on budget day, meaning the thousands of British travellers planning a trip this winter will find their pounds won't stretch as far as they did last summer."

There are just three destinations where the pound is currently up: it has inched up 0.3% against the New Zealand dollar, 1% against South Africa's rand and 1.1% against the Hungarian forint.

06:51:30

TUI 'sorry' and refunds reader £196 over baggage fee - here's what to do if it happens to you

Every Tuesday we answer your financial problems or consumer disputes.WhatsApp us yourshere.

Today's Money Problem is...

We booked a holiday with TUI and the night before we tried to increase our luggage allowance (we were travelling with our one-year-old and only managed to finish packing at 6pm). TUI wouldn't let us upgrade the baggage on the app (it should have cost us £8 to do so) and we spent hours on hold to customer services who weren't able to increase our baggage allowance. When we turned up at the airport the next day, they charged us £196 for overweight luggage. They won't refund us as they say it's our fault. What can we do?
Hannah

Megan Harwood-Baynes, cost of living specialist, says…

This was certainly an unusual one - having recently flown myself (albeit with another airline), I was under the impression you should be able to add additional luggage right up until you check in. However, you told me there was no option to do this either before, during or after the check in process.

You were, fortunately, able to upgrade your luggage on your return journey, which means you were saved another £196 fee for the 14 extra kilograms you had packed (which was largely stuff for your young son).

You said you had exhausted the complaints process with TUI, as they said it was an error on your end for turning up with bags that were too heavy.

I asked TUI if they had experienced an issue with their app that meant this option was unavailable.

We had a bit of back and forth as I pointed out to them that you received an email two days before the flight that suggested you could add luggage right up until check-in, but this had not been possible.

After about a week, the team at TUI concluded they had made an error with the fee they charged you because you should have been able to add on additional luggage right up until check in.

They have said they will send you a refund for £196. You told me you were delighted with this outcome.

In a statement, the team told me they wanted to apologise after you were "unfortunately overcharged" and said it arose due to "a human error".

"We are very sorry for the inconvenience caused," TUI said, adding that they hope to see you "on a TUI holiday again soon".

What the TUI website says about excess luggage

TUI warns that if your luggage is heavier than your allowance, you will get charged if you don't sort it before the airport.

Excess luggage chargesare

  • Short and mid-haul flights (less than seven hours): £55 per 15kg bag and £14 per kilogram
  • Long-haul flights (over seven hours): £75 per 15kg bag and £18 per kilogram
  • For bookings that do include a checked-in luggage allowance, if you exceed this you'll be charged per kilogram as above

However, if you add the baggage before you check in, you will be offered a cheaper price. TUI confirmed to me the only deadline to do this is before online check-in.

What you could have done next

If you complain to an airline but do not feel your complaint has been adequately resolved, the next step would be to take your issue to the Alternate Dispute Resolution (ADR) body.

There are a few different ones depending on the airline, you can view themhere.

If the airline or airport does not have an agreement with an ADR, you canrefer your complaint to the Civil Aviation Authority.

Always keep as much proof as possible (screenshots, receipts, emails) to help make your case.

This featureis not intended as financial advice - the aim is to give an overview of the things you should think about.Submit your dilemma or consumer dispute via:

  • WhatsApp ushere
  • Email news@skynews.com with the subject line "Money blog"

19:20:01

Poundland investing in security after £44m of stock lost

Poundland is investing more money than ever into new security measures after more than £44m of stock was lost last year.

The bargain retailer, which sells a large proportion of its products for £1 or less, said it had been a particular target of theft and abuse.

In a bid to tackle that issue, Poundland is kitting out staff with anti-theft technology, such as body-worn cameras. Cameras decreased violence against staff by 11% in a trial and reduced shoplifting.

It's also working more closely with police to crack down on offenders and recruiting more undercover security guards.

Official figures released in October showed that shoplifting in England and Wales had hit a new 20-year high, with Poundland's stock shrinkage - which can include theft and shoplighting - up 30% in the past two years.

Nearly 470,000 offences were logged by police forces in the year to June 2024, up 29% on the previous year.

18:34:01

Asda cuts jobs after worst Christmas in nine years

Asda has confirmed its first set of job cuts after recording its worst Christmas sales since 2015.

The supermarket's chairman, Allan Leighton, cut 13 regional manager positions in a shake-up designed to reduce staff and improve performance, according to The Telegraph.

Four of the roles are in the retail sector of the company and nine are from its Express stores.

During the 12 weeks to 29 December, sales fell by 5.8%, data from Kantar showed.

Workers were sent a memo explaining the restructuring would mean its stores would be managed across 22 "sub-regions," down from 30.

"Change is never easy and unfortunately we have had to say goodbye to a number of colleagues," the memo read.

An Asda spokesperson told Money: "We made changes to our field-based retail team regions to reflect the scale of our business across large stores and convenience.

"These changes set us up to serve our customers in the best way for 2025 as we deliver Asda price and other exciting propositions."

17:24:01

Rick Stein rolls back menu prices to 1975

Rick Stein will be rolling back prices at his restaurants to 1975 levels to celebrate 50 years since the opening of his first restaurant.

The celebrity chef will mark the golden anniversary of the Seafood Restaurant in Padstow by offering classic seafood dishes at 1975 prices from 6-9 February.

The menu will include shellfish soup for 50p, grilled lobster for £2.80, seafood thermidor for £2.20 and Cornish bouillabaisse for £2.60.

And on the dessert menu will be treacle tart for 35p and apple pancakes with Calvados sauce for 40p.

The offer will be available at the chef's restaurant in Padstow as well as Stein's restaurants in Winchester, Marlborough, Sandbanks and London's Barnes.

Money blog: Spain proposes 100% tax on foreign-owned homes in 'unprecedented' move (2025)
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