Thursday newspaper round-up: Energy suppliers, Tesco, S&P

Six of the main energy suppliers are facing losing a quarter of their profits over the next six years, the Guardian reported on Thursday.

According to City financial analysts, if such a high number of customers were to defect, it would knock £500m a year off the companies’ collective profits.

The Independent reported that the Financial Conduct Authority (FCA) has launched an investigation into the £250m overstatement of half-year profit by Tesco.

The retailer said it had been notified that the FCA had launched a “full investigation” and that it would "continue to co-operate fully with the FCA and other relevant authorities considering this matter".

David Cameron has promised £7bn of tax cuts by 2020 if his party wins the general election in May, The Daily Telegraph reported.

The cuts, the prime minister said, were aimed at those on above average incomes and not backed by any new sources of funding. Under Cameron’s plans, the personal tax allowance will rise from £10,500 next year to £12,500 in 2020, while the higher rate tax threshold would increase from £42,265 next year to £50,000 at the same date.

Ratings agency Standard&Poor’s believes Britain would be better served by a Labour victory at next year’s elections, given that it has pledged to remain within the European Union, as opposed to the Tories, who have promised a 2017 referendum on the subject.

S&P also seems indifferent to the fact that Labour has proposed plans for fiscal consolidation which would allow for up to £28bn more in expenditures than their conservative counterparts. “Whether it’s faster or slower, we have no strong opinion — so long as the general direction of travel is sustainable,” an officer from S&P said, according to The Times.

Virgin Money, the banking unit of Sir Richard Branson’s empire, will become the fourth bank to float this year, the company announced on Thursday. The lender is looking to raise £150m in fresh funds via a listing on the London Stock Exchange.

A third of that amount will be funnelled straight back to HM Treasury, as part of the agreed payment for the purchase of the good bit of Northern Rock in 2012. The newly listed Virgin Money may have a market capitalisation of £2bn, The Daily Telegraph reports.