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Asda Faces Legal Challenge Over Equal Pay Claims from Employees

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Last month, a significant legal development occurred in the ongoing case against supermarket giant Asda, where tens of thousands of employees are suing the company over claims of unequal pay. The lawsuit alleges that shopfloor workers, primarily women, receive lower wages than their warehouse counterparts, who are predominantly men, in violation of equal pay legislation.

This latest hearing follows a recent legal victory for employees at Next, where an employment tribunal ruled that the retailer could not justify the pay disparity between its warehouse staff, primarily men, and its shopfloor workers, who are mostly women. Next has indicated plans to appeal the decision, which could potentially lead to compensation amounting to £30 million for the claimants. The case was represented by law firm Leigh Day and funded by Harbour Litigation Funding.

The legal landscape is evolving, with similar challenges now emerging against other major retailers, including Morrisons, Tesco, Sainsbury’s, and the Co-op. Leigh Day confirmed that all its equal pay cases against supermarkets are being pursued under a damages-based agreement, encompassing over 100,000 retail employees across the UK. Harbour Litigation Funding is also backing claims against Sainsbury’s, Morrisons, and Tesco.

David Williams, an employment partner at the City law firm Fox Williams, highlighted the growing concerns within the retail sector. “There’s quite a degree of concern in the retail industry, coming from various sources. The potential liabilities are enormous due to the large number of people in the sector and a history of businesses not taking equal pay seriously,” he noted. “This serves as a wake-up call for many companies to audit their practices and address salary disparities.”

Another litigation funder, Therium Capital Management, is supporting the case against Tesco. Established in 2008, Therium manages 12 separate litigation funds that collectively support claims valued at $36 billion, with a notable track record of backing high-profile legal actions, including cases against the Post Office and supporting Noel Edmonds in his dispute with Lloyds Bank.

Litigation funders typically raise capital from sources like hedge funds and sovereign wealth funds to finance various claims, with profits from successful cases facilitating further investments in legal actions. While this funding model enhances access to justice, it has drawn criticism for potentially breaching common law principles of champerty and maintenance, which traditionally prohibited third-party funding of legal disputes for profit.

The surge in class action lawsuits and third-party funding has raised alarms within the business community. A recent report by the Adam Smith Institute warned that these legal mechanisms expose many companies to claims worth billions. The US Chamber of Commerce has also been active in lobbying against the proliferation of class action litigation and associated funding models in the UK and Europe, arguing that they reflect contentious practices prevalent in the United States.

In England and Wales, two no-win, no-fee agreements are now common. The traditional model allows lawyers to take an uplift of up to 100% on their standard fees for winning cases, while the newer damages-based agreements permit lawyers and their third-party backers to claim up to 50% of awarded damages, stirring unease among defendant companies facing potential litigation.

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Gary Lineker Places TV Production Company into Voluntary Liquidation Ahead of Tax Rises

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Former England footballer and broadcaster Gary Lineker has placed his television production company, Goalhanger Films, into voluntary liquidation as the UK government prepares to raise capital gains tax rates. The move is seen as a strategic decision to minimize tax liabilities before the upcoming increase in tax rates.

Co-owned with former ITV controller Tony Pastor, Goalhanger Films reported net assets exceeding £440,000 in its last published accounts. The liquidation comes in response to the UK government’s announcement in the recent Budget that capital gains tax rates will rise from 10% to 14% in April, with a further increase to 18% in 2025. By liquidating the company now, Lineker and Pastor will be able to take advantage of the current lower tax rate on distributions from the company’s assets.

Tony Pastor confirmed that Goalhanger Films is being “mothballed,” allowing both he and Lineker to focus on their growing podcast venture, Goalhanger Podcasts. The podcast platform, which hosts popular series such as The Rest Is History and The Rest Is Football, reported net assets of nearly £591,000 earlier this year, reflecting the success and rapid growth of the podcasting business.

The liquidation of Goalhanger Films follows the process of Members’ Voluntary Liquidation (MVL), which allows solvent companies to wind down operations in a tax-efficient way. This process enables business owners to treat distributions from retained earnings as capital gains rather than income, potentially yielding significant tax savings under the Business Asset Disposal Relief framework.

Goalhanger Films, launched in 2014, produced high-profile sports documentaries featuring figures like Mohamed Salah and Serena Williams. However, the shift towards podcasts marks Lineker’s strategic adaptation to the evolving media landscape, where podcasts have become a more lucrative and popular format.

Although Lineker stepped down from hosting Match of the Day after a 26-year tenure, he continues to maintain a strong presence at the BBC. He holds contracts to present coverage for major events, including the FA Cup and the 2026 World Cup.

Lineker’s financial move offers valuable lessons for business owners and entrepreneurs, particularly in anticipating tax changes and making timely decisions to maximize financial benefits. Business owners looking to close solvent companies may also find the MVL process an effective way to unlock value efficiently. Additionally, Lineker’s pivot to podcasting highlights the importance of adapting to emerging markets and shifting focus to the most successful ventures.

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UK Technology Secretary Considers Social Media Ban for Under-16s Amid Growing Concerns Over Child Safety

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UK Technology Secretary Peter Kyle has announced plans for new research into the effects of social media and smartphone use on children, hinting that the UK may follow Australia’s lead in considering a social media ban for those under 16. This move comes amid increasing concern over the impact of technology on children’s mental health.

Australia has already set its sights on prohibiting social media access for under-16s, with Prime Minister Anthony Albanese declaring that “social media is doing harm to our kids” earlier this month. Kyle has expressed his interest in this proposal, stating he is “looking very closely” at the Australian model and remains “open-minded” about implementing similar measures in the UK.

In 2019, a review by the Chief Medical Officer of the UK concluded there was insufficient evidence to draw definitive conclusions about the links between social media, smartphones, and mental health in children. However, Kyle believes that technology companies may hold crucial research on the issue, prompting his department to initiate a six-month study, as well as a multiyear project, to guide future government action.

The debate has been reignited by campaigns from parents and advocacy groups, particularly following the release of The Anxious Generation by American social psychologist Jonathan Haidt. The book suggests a link between rising childhood anxiety and depression and the increased use of smartphones, though some experts have questioned its findings.

The call for stronger regulation is gaining momentum, with the Safer Phones Bill, proposed by Labour MP Josh MacAlister, set to be debated in March. The bill includes provisions for banning social media use for under-16s. Additionally, Kyle has urged Ofcom, the UK’s communications regulator, to report on its progress with the Online Safety Act. New laws, set to come into force in the spring, will require tech companies to protect children online and remove illegal content.

However, civil society groups argue that Ofcom has not been stringent enough in holding tech companies accountable. They claim that current regulations may not go far enough to protect children from harm, and that companies are not doing enough to comply.

Kyle has issued a “statement of strategic priorities” for Ofcom, calling for greater integration of safety features on digital platforms, a more agile response to emerging issues like generative artificial intelligence, and stronger measures against disinformation.

Ian Russell, chair of the Molly Rose Foundation, welcomed the announcement, describing it as “a much-needed course correction” and urging Ofcom to take a bolder stance on child safety.

An Ofcom spokesperson responded positively to the draft priorities, noting that the final version will help shape future regulatory actions to protect children online.

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Gin and Tonic Overtakes Tea as Britain’s Favourite Drink

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Gin and tonic has overtaken tea as the nation’s favourite drink, marking a dramatic shift in British consumer habits, according to the latest findings in the Bacardi Cocktail Trends Report. The survey reveals that 44% of Britons now choose a G&T when meeting friends, narrowly surpassing the 41% who still prefer a traditional cup of tea. A further 15% of respondents were undecided between the two beverages, which have long been staples of British culture.

The rise in gin’s popularity comes as the UK gin market continues to thrive, maintaining its position as the largest in the world. Last year, gin sales reached £750 million, underlining the enduring appeal of the spirit that dates back to the 17th century. In contrast, tea consumption is on the decline. Sales of everyday black tea brands like PG Tips and Yorkshire Tea fell by 6% in 2022, amounting to £341 million. Research firm Mintel forecasts a further 8% decline in the tea market from 2023 to 2028.

The change in beverage preferences is reflected in the challenges facing Britain’s oldest tea brand, Typhoo Tea. The company recently entered administration, burdened with over £70 million in debt and struggling with diminishing demand. Meanwhile, the cocktail culture is flourishing, particularly among younger consumers. Nearly half of Gen Z respondents—aged 18 to 29—prefer celebrating special occasions with a cocktail instead of Champagne. Additionally, 35% of Gen Z consumers are more likely to choose a cocktail over beer, and 29% prefer it over wine, compared to last year.

Davide Zanardo, of Bacardi UK & Ireland, commented, “The G&T tops our poll for 2025, so it’s not surprising that it’s now rivalling tea as the country’s national drink.” This shift in consumer habits reflects a growing trend toward cocktails, such as piña coladas and mojitos, as part of an evolving drinking culture in the UK.

The transformation in British drink preferences presents both challenges and opportunities for businesses in the beverage sector. While traditional tea brands face declining sales, the spirits market is well-positioned for growth. As consumer tastes evolve, companies in the industry will need to adapt to this new landscape, embracing the rise of cocktails and changing expectations around beverage consumption.

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