UKEF has partnered with other export credit agencies and MUFG as sole Mandated Lead Arranger to secure over €1.2 billion in financing for a sustainable railway project.

The financing package comprises a €1.027 billion loan guaranteed by ECAs and a separate €220 million commercial loan facility supported in part by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). MUFG was appointed the sole mandated lead arranger, coordinator, structurer and agent bank by the Turkish Ministry of Treasury and Finance.

UKEF guaranteed the ECA facility, with Italian (SACE), Polish (KUKE) and Austrian (OeKB) counterparts providing significant reinsurance. ICIEC provided insurance to several of the commercial lenders.

UKEF is an export credit agency operating at no net cost to the UK taxpayer. Its involvement secures substantial opportunities for UK firms, which are expected to supply steel, pipes and other equipment.

The financing allows Turkey’s Ministry of Transport and Infrastructure – acting through the General Directorate of Infrastructural Investment (AYGM) – to develop 140km of low-carbon electric railway between Yerköy and Kayseri.

The new railway line will help the country to expand its low-carbon rail network, reduce road congestion and cut net emissions on the Yerköy-Kayseri route by over 6,500 tonnes of CO2e per year. Connecting to the Ankara-Sivas line which opened in April 2023, the new route is also expected to support regional economic growth by increasing regional passenger and freight rail capacity around Turkey’s capital region.

The announcement comes as UK Secretary of State for Business and Trade Kemi Badenoch visits Turkey to strengthen business links.

Kemi Badenoch, UK Business and Trade Secretary, said: “I’m delighted to be in Turkey ahead of talks to upgrade our existing trade deal to make it fit for the 21st century.

“With its major economy and strategic position, Turkey presents huge opportunities for UK businesses. And I’m excited to start discussions on ensuring our new trading relationship with Turkey unlocks those opportunities.”

The project will be delivered by a joint venture between Turkish contractors Doğuş İnşaat, Çelikler and Özkar. Doğuş, Çelikler and Özkar were also main contractors for the newly opened Ankara-Sivas High Speed Railway.

This is the third high-speed railway project which UKEF, SACE and OeKB have jointly backed in Turkey, with their support now helping to lay more than 900km of track for a more sustainable rail network.

Christopher Marks, Managing Director, Head of Portfolio Solutions, Innovative Finance & Growth Markets for EMEA, MUFG, said: “This transaction demonstrates MUFG’s long-term commitment to Türkiye. We are proud to have worked with the Republic of Türkiye on this landmark financing. We continue to work with public sector and sponsor clients to deliver such innovative financing solutions that propel their transition plans for a more sustainable future. We are pleased to have successfully delivered a blended finance solution, with ongoing support from the ECAs and ICIEC, that aligns the financing to the Green Use of Proceeds criteria set by the Republic of Türkiye’s Sustainable Finance Framework.”

Tolga Akkaş, Chairman of the Board from Doguş Çelikler Özkar JV, added: “We are honoured to be entrusted as the main contractor for the Yerköy-Kayseri High-Speed Railway project, advancing the sustainable rail infrastructure in Türkiye. As one of the contractors for the Ankara-Sivas High-Speed Railway project, inaugurated in April 2023, we are eager to bring our expertise to the Yerköy-Kayseri route. The adoption of high-speed rail technology inherently leads to a more energy-efficient and eco-friendly mode of transportation compared to traditional alternatives. This project features not only a significant stride in Türkiye’s railway network but also connecting communities, driving economic prosperity, and fostering sustainable development.”

“This impactful transaction is made possible through the collaborative efforts of esteemed partners such as UK Export Finance and MUFG. We express our sincere gratitude for their unwavering commitment to supporting initiatives that contribute to the sustainable development of countries.”

Marcus Dolman, Vice President of the British Exporters Association (BExA), noted: “This deal demonstrates continued support for the development of the Turkish rail network. The UKEF guarantee offers a huge boost to UK exporters looking to increase, or start, their export portfolio under a secure umbrella. Deals of this type are essential to increase the UK supply chains of large overseas contractors. BExA congratulates UKEF on this transaction and their continued support for UK exports.”

Read more:
MUFG and export credit agencies unlock €1.2bn financing for Turkish electric railway

Houthi rebel disruptions reaching the Straits of Hormuz could double oil prices, Goldman Sachs has warned.

In an interview the head of the company’s oil research division Daan Struyven said: “the Red Sea is a transit route and a prolonged disruption there, oil can be three or four dollars higher.

“However if you have a disruption in the Strait of Hormuz for a month, [oil] prices would rise by 20 per cent and could even eventually double if the disruption there lasted for longer,” he said.

Despite caveating that the situation was “highly unlikely”, Struyven’s comments join a collective of voices from across international business and politics decrying the situation in recent days.

Yesterday, former prime minister now foreign secretary David Cameron said in an interview to Sky News that the attacks “have to stop”.

“This is not just a British interest, it is global,” he said.

“The clear message, and over ten countries have signed a letter to the Houthis saying that these attacks are illegal and have got to stop and if they don’t, action will be taken.”

Since November, the rebels have attacked commercial shipping in the Red Sea more than 20 times using missiles, drones, fast boats and helicopters.

In response, the U.S. in December announced Operation Prosperity Guardian to step up patrols of the Red Sea and Gulf of Aden to protect commercial traffic – ships from the UK, Australia and Canada are among the other countries also involved.

Early-mid December saw the occasional minor oil price spike as a result of the actions, but the volatility has remained largely subdued as the wider market remains soft.

More significantly however has been the reaction of major shippers to the protective responses such as Prosperity Guardian.

Maersk and Hapag Lloyd, two of Europe’s largest shipping companies, have refused to use the Red Sea and Suez Canal routes, the former having had a vessel come under attack from rebels last weekend.

What began as seemingly isolated disruptions to Western commercial activities are now being seen by many to constitute targeted action in support of the Hamas cause as Israel continues to ramp up its attacks on Palestine.

Should they continue, they are likely to throw the already-chaotic state of global shipping in that area into further strife.

Read more:
Oil prices could double if Red Sea shipping attacks continue warns Goldman Sachs

House prices have stopped falling and are rising again, according to a closely watched report from the mortgage lender Halifax.

The average property price last month rose by 1.1 per cent in December. It was the third monthly rise in a row and well above economists’ forecasts of a 0.1 per cent increase.

After a weak spring and summer, the strong end to the year means that house prices rose by 1.7 per cent in 2023 to an average of £287,105, almost £5,000 more than this time last year. Entering 2023, most economists had predicted that prices would fall by between 5 per cent and 10 per cent, possibly more, across the year.

Kim Kinnaird, director of Halifax Mortgages, said the surprise increase in prices probably reflected “a shortage of properties on the market, rather than the strength of buyer demand”.

The property market in Northern Ireland was the strongest of any UK region last year, with prices there improving 4.1 per cent across 2023 to an average of £192,153. Prices in Scotland, the northwest of England and Yorkshire also rose year-on-year.

By contrast, the southeast, where homes are dearest, came under most pressure, with prices declining 4.5 per cent in 2023.

When viewed alongside a similar monthly index from Nationwide, another big high street lender, Halifax’s data suggests a stabilisation in the housing market after a sustained downturn brought on by sharply higher mortgage rates. Between October 2022 and August 2023, Nationwide calculated that prices fell in nearly every month, before starting to pick up towards the end of last year, albeit modestly. Halifax’s metric recorded price falls for six straight months up until October, since when it thinks prices have consistently risen.

Imogen Pattison, assistant economist at Capital Economics, said the latest data from Halifax “confirms that falls in mortgage rates are translating into renewed increases in house prices”.

In contrast to Halifax, Nationwide still has prices as being 1.8 per cent lower year-on-year. Pattison attributed the difference to Halifax’s index being “more sensitive” to changes in mortgage rates and expects the Nationwide index “to play catch up over the coming months”.

House prices boomed during the pandemic, as a combination of cheap money, stamp duty holidays and the lockdown-induced “race for space” pushed many to look for somewhere new to live. The jump in mortgage rates that followed the mini-budget in the autumn of 2022, however, sent the market into reverse. Almost immediately housebuilders and estate agents reported a sudden and sharp drop-off in demand.

Such was the strength of the market in 2021 and 2022, though, that Halifax estimates that prices remain almost £50,000 higher, on average, than before the pandemic erupted.

The financial markets are betting that the Bank of England, and other central banks, are unlikely to raise interest rates much further. Mortgage lenders have responded this week by cutting their own rates.

Reflecting that, and the probability that the government will bring in some sort of support for first-time buyers before the general election, Anthony Codling, a housing industry analyst at RBC, expects prices to rise again in 2024. “Our pessimism was misplaced in 2023, and we don’t want to make the same mistake twice,” he said.

Similarly, Pattison had predicted that prices would fall 1.5 per cent this year, but she now thinks they will increase by 3 per cent. “The drop in average quoted mortgage rates from 5.9 per cent in July 2023 to just over 4 per cent now will improve affordability meaning demand from mortgaged buyers will continue to recover,” she said.

Kinnaird is less certain, predicting a fall of between 2 per cent and 4 per cent this year, although she noted that “forecast uncertainty remains high given the current economic climate”.

Read more:
House prices started to rise again in 2023, says Halifax

The number of new cars registered in the UK has jumped by nearly 18% but electric vehicle demand is flatlining, prompting the industry to call for a VAT cut to stimulate sales.

Annual figures released by the Society of Motor Manufacturers and Traders (SMMT) on Friday show 1.9m new cars were registered last year, well up on the previous year’s figure of 1.6m and the highest level since the 2.3m registrations of 2019.

The increase is a boost for the automotive industry after the pandemic led to supply chain problems and a shortage of vital computer chips that slowed production.

Across the year, 315,000 new battery electric vehicles were sold. That was 50,000 more than 2022, but the number being bought as a share of total registrations failed to grow as expected. They represented just 16.5% of the total, slightly down on last year’s 16.6%.

The lacklustre growth in the electric vehicle market comes despite a government goal to totally phase out petrol, diesel and hybrid vehicles by 2035, albeit one that was diluted by Rishi Sunak last September from an original target of 2030.

The changeover is being supported by the zero emissions vehicle (ZEV) mandate, which will require 22% of all vehicles manufactured by carmakers to be ZEVs by the start of next year, with this rising to 80% by 2030.

After the latest figures showing the sector is still well short of that target and that the switchover is stalling, the SMMT is calling for the government to halve VAT on all new ZEV purchases across the next three years. It has estimated the plan, which equates to an average of £4,000 per purchase, would save consumers a total of £7.7bn over the period and would put 250,000 extra ZEVs on the road by 2026.

Mike Hawes, the SMMT chief executive, said: “Government has challenged the UK automotive sector with the world’s boldest transition timeline and is investing to ensure we are a major maker of electric vehicles.

“It must now help all drivers buy into this future, with consumer incentives that will make the UK the leading European market for ZEVs.”

The increase in overall registrations was largely driven by registrations for fleet deliveries – mainly used for the car leasing market – which grew to just over 1m of all cars sold, a 38.7% increase on the previous year.

The number of hybrid electric vehicles sold rose to 380,000 over the year, and accounted for 20% of all new registered vehicles.

Superminis – small hatchbacks such as the Ford Fiesta and Vauxhall Corsa – continued to be the country’s most popular category of car, making up nearly 30% of all new vehicles.

Hawes said he believed the VAT cut on new ZEVs would be a significant step to reinvigorate electric vehicle sales. In 2022, the government scrapped its last financial incentive for private electric vehicle buyers when it ended grants of up to £1,500 for new purchases.

Hawes said: “We thought the taking away of previous consumer support for EV take-up was too early. When you get through the first adopters, they will buy an EV, it is that second wave of people, getting it to mass market, to the people that are more hesitant, they are the ones that will benefit from support.

“We think the VAT cut is the right support to give, it is time limited, it is appropriate and it delivers the consumer and the government the environmental outcome it wants.”

A government spokesperson said: “To drive the UK’s move to electric vehicles, we have provided over £2bn to cut down purchase costs for drivers and to build the necessary infrastructure to support their usage, such as local electric vehicle infrastructure funding, targeted plug-in vehicle grants and low first year vehicle excise duty.”

Read more:
Electric car sales flatline as manufacturers call for VAT cut

The Yorkshire city of Sheffield is to get a new competitor rail service to London, promising faster travel times than the existing trains.

FirstGroup, the listed passenger transport company, has submitted plans to launch a so-called open access service between Sheffield and London King’s Cross from 2025.

Open access rail services are those in which operators run their own private operations independent of government contracts directed by the Department for Transport. Such operations bear all the risk of the service but also stand to reap all the financial rewards.

FirstGroup currently runs such open access services between King’s Cross and Edinburgh, on its discount fare ­Lumo operation, and on services to Hull. Both operate on the east coast main line, a part of the network otherwise almost exclusively used by LNER, the renationalised train company.

LNER does not operate a direct ­service to Sheffield, with passengers having to change at Doncaster.

What is intriguing about the FirstGroup direct service proposition is that it will effectively compete with the ­services between Sheffield and London St Pancras operated by East Midlands Trains on the separate Midland main line network via Leicester and Derby.

FirstGroup’s proposals to the Office of Rail and Road suggest an initial two return journeys a day between King’s Cross and Sheffield calling at Retford, Worksop and Woodhouse, and one that will be faster than the two-hour East Midland Trains service.

It says its service is needed because the current arrangements are not working. “Almost three quarters of trips between London and Sheffield are ­currently made by car with a further 9 per cent of trips made by coach,” FirstGroup said. “A competitively priced new rail offering will help ­stimulate a shift from road to rail.”

FirstGroup says its service would be the first regular service between King’s Cross and Sheffield since 1968 and would also give the Nottinghamshire town of Worksop its first regular direct London trains in decades.

Open access is not a new concept but its take-up has been sporadic. In ­addition to First’s existing operations, Grand Central, part of the Arriva group, also runs trains on the east coast main line between London and York and Sunderland.

Read more:
New London to Sheffield train service planned for 2025

One of the world’s largest insurance companies has been forced to pay thousands of pounds in interest to small businesses whose Covid insurance payout claims were delayed.

The QBE Group’s initial payout just before Christmas of more than £386,000 to 86 companies raises the potential for a total outlay by insurers of up to £1.6bn in interest to customers, it is claimed.

About 60 insurers have been accused of unfairly delaying making payouts on business interruption policies to 370,000 small businesses, from restaurants and bars to hairdressers and guesthouses.

Last year, the UK’s financial ombudsman ruled that an 8% annual rate of interest should be paid on the sum, pro rata, roughly covering the period between the claim being declined and it being actually paid.

The payment by the QBE Group of £386,215 to the clients of the loss assessor is said to be a key step towards thousands more businesses receiving similar payouts.

Jeff Salmon, chief executive of Salmon Assessors, said his clients had suffered two years of injustice and that others should come forward to make claims.

“To say this was a ‘David and Goliath scenario’ is an understatement,” he said. “It was an uphill slog, with the insurers seemingly purposely procrastinating every step of the way.”

About 370,000 small businesses made insurance claims after the coronavirus lockdowns left them unable to trade. Many of those policyholders had their claims initially declined on the grounds that the business interruption policies were not designed to cover a government-imposed lockdown.

In 2020, the high court found in favour of policyholders after the Financial Conduct Authority brought a test case to court, but six of the eight insurers named in the case, Arch Insurance, Argenta, Hiscox, MS Amlin, QBE and RSA, appealed.

It was not until the supreme court ruled in the policyholders’ favour in 2021 that some claims were paid out.

Businesses then sought compensation for the delays in payments. In a key case, the financial ombudsman ruled that a dental practice whose claim had been initially declined but later approved should be paid interest by its insurer, QBE.

The company had subsequently sought further clarification of the ruling but paid up just before Christmas. Salmon said that every policyholder should now claim interest from their insurance company if the claim was delayed.

With QBE paying out £4,500 on average in interest to each claimant, the total potential cost to the insurance industry was said by Salmon to be more than £1.6bn.

A spokesperson for QBE said: “Covid-19 business interruption claims can be very complex. As such, the claims handling process is sometimes unavoidably lengthened. Naturally, QBE always ensures that we comply with all our regulatory and legal obligations related to these claims, that we consider our customers’ particular circumstances and that we handle the claims in as timely a manner as possible.”

Read more:
Insurer forced to pay thousands of pounds to small firms hit by Covid payout delays

HSBC has become the first leading bank to cut mortgage rates below 4 per cent as a new year price war between lenders gathers pace.

The bank cut rates by up to 0.85 percentage points on Wednesday, releasing a five-year fixed rate at 3.94 per cent for customers coming off their existing deals. The reduction would save someone with a £200,000 25-year mortgage £96 a month — £1,152 a year — in repayments.

It also released a two-year fix at 4.49 per cent, the first time since June that a two-year deal has been available at below 4.5 per cent.

The rate cuts put the bank at the top of the best buy tables and come after Halifax and Leeds Building Society cut mortgage rates on Tuesday by up to 0.92 percentage points.

David Hollingworth from the mortgage broker L&C said: “These cuts are just the latest salvo in an increasingly fast-moving market and others will be bound to follow suit. We thought 2024 would start with a bang and that’s proving to be the case.”

Generation Home and the specialist lender Bluestone Mortgages also said on Wednesday that they would cut mortgage rates while First Direct, HSBC’s sister bank, will also make large reductions on Friday.

Many of the cuts so far this week have been particularly big because some banks did not make any reductions just before Christmas to avoid being swamped by demand from borrowers, so they need to catch up.

The cuts are also being driven by fierce competition in a mortgage market that is expected to be smaller than previous years, plus expectations that the Bank of England base rate might soon be cut from 5.25 per cent.

“The pressure is on the other leading lenders to lower rates,” Aaron Strutt from the mortgage broker Trinity Financial said. “Banks and building societies want to lend more money and they understand the negative effect these higher rates have on the property market and wider economy.

“Lenders will be working out their strategies for the year and trying to figure out how to boost their lending figures, which in many cases were shockingly low last year. Many borrowers have been holding off remortgaging or purchasing a property because of high rates, so new sub-4 per cent fixes should give them a bit more confidence to refinance or get on the property ladder.”

Some 1.6 million homeowners are due to come to the end of their fixed-rate deals this year, the trade association UK Finance said, most of whom were previously on rates of 2.5 per cent or below.

Those people still face paying more when they remortgage, but rates falling from their highs last summer when the cheapest deals were between 5.5 and 6 per cent will take out some of the sting.

Rates have steadily fallen over the last three months on the back of a sharp fall in the rate of inflation, which went from 8.7 per cent for the year to May to 3.9 per cent in November. This has been followed by widespread expectations that there will soon be a cut in Bank rate, which went from its record low of 0.1 per cent in December 2021 to 5.25 per cent in August last year as the Bank of England tried to tame inflation.

Bank policymakers, including Andrew Bailey, the governor, have stressed that it will need to remain at this level for an extended period to ensure inflation returns to the 2 per cent target. But most of the 41 economists polled by The Times expect at least two cuts to Bank rate this year because inflation has fallen faster than expected.

Read more:
Mortgage rates cut as new year price war intensifies

SpaceX has launched the first set of Starlink satellites capable of providing network coverage directly from space to standard smartphones in a service designed to eliminate global “dead zones”.

Elon Musk’s space business signed deals with a series of wireless carriers in 2022 to launch the service: T-Mobile US confirmed yesterday that the first six satellites were in low-Earth orbit after being deployed from a Falcon 9 rocket.

The direct-to-cell service will begin with text messaging, with data and voice calls added from 2025. Canadian operator Rogers, Australia’s Optus, KDDI from Japan and One New Zealand have also signed up.

Dr Sara Spangelo, director of satellite engineering at SpaceX, said the launch was “an exciting milestone” for the company to demonstrate its technology, which would be scaled up “rapidly” with partner operators around the world.

The company said that more than half a million square miles in the US alone, and vast stretches of ocean around the planet, are unreachable by terrestrial network coverage.

Mike Katz, at T-Mobile US, said: “This is another step forward in keeping our customers connected even in the most remote locations as we work to make dead zones a thing of the past.”

SpaceX’s high frequency and relatively low cost has made it the world’s dominant launch company. Musk, its founder and chief executive, claimed that it had carried 80 per cent of all the mass lifted into orbit last year.

Read more:
SpaceX puts direct-to-phone Starlink satellites in orbit to eliminate smartphone ‘dead zones’

Next has raised its profit forecast for the fifth time in less than a year after reporting better-than-expected sales in the run-up to Christmas.

The high street retailer said full-price sales were up 5.7% in the nine weeks to 30 December compared to last year.

The figure, revealed in a trading update from the firm on Thursday, is £38m better than the 2% rise it previously forecast for the period.

As a result, Next said it was upgrading its pre-tax profit guidance for 2023/24, not including exceptional items, by £20m to £905m.

That would represent a 4% rise on the £870m it made in 2022/23.

The chain, which has around 460 stores in the UK and an online presence in dozens of countries abroad, reported particularly strong website sales, which increased 9.1% in the nine weeks to the end of last month.

Next said it expects full-price sales to rise 2.5% in 2024/25, and pre-tax profit to increase by 5%.

The company said rising wages were likely to ease cost of living pressures on shoppers in the new year, while it also aims not to rise prices for like-for-like goods thanks to falling manufacturing costs.

Its trading update said: “On the face of it, the consumer environment looks more benign than it has for a number of years, albeit there are some significant uncertainties.”

Risk factors identified by Next for the new year include a potential rise in unemployment which could hit sales.

The chain also cautioned that rising tensions resulting from the Israel-Hamas war and attacks on shipping in the Red Sea could hit its supply chains.

“Difficulties with access to the Suez Canal, if they continue, are likely to cause some delays to stock deliveries in the early part of the year,” the trading update warned.

Charlie Huggins, a manager at investment firm Wealth Club and a Next shareholder, said the company had “pulled yet another rabbit out of the hat” and claimed the figures “demonstrated once again why it is considered one of the best run retailers around”.

He added: “Next’s core proposition is clearly resonating with the UK consumer and is being augmented by intelligent acquisitions of brands like Fat Face.

“With inflation falling and wages rising, the economic picture also looks a lot less bleak than at the start of last year.”

Shares in Next leapt by more than 5% in early trading on Thursday following the trading update.

Read more:
Next raises profit forecast but warns stock could be delayed by Red Sea attacks

Keir Starmer has said he is “fundamentally opposed” to axing or reducing inheritance tax, as he made a landmark speech before a widely-expected general election.

The Labour leader vowed to challenge the Conservatives on their economic record, as he insisted Labour would not seek to solve the country’s problems “armed only with a big state cheque book”.

In a speech at a research centre near Bristol, Starmer hinted that Labour may have to consider hiking other taxes or restrict public spending if it puts cutting income tax or national insurance in its election manifesto, as is reportedly under consideration.

Asked if he would overturn a reduction in inheritance tax after a speech at a research centre near Bristol, the Labour leader said: “We’re fundamentally opposed to what the Tories are pretending they are going to do.

“They floated this last year, they’re floating it again now, I don’t know whether they’re going to do it. But I would’ve thought by now that they would’ve learned the lesson that further tax breaks for those who are the best-off with nothing for working people is not a good idea.

“I don’t believe in tax breaks for those who are already well-off when there’s nothing on offer for working people. So, I wouldn’t be doing what they’re floating.”

Won’t solve UK problems armed only with a big state cheque book’

Sir Keir Starmer has said he is “ready” for a general election in a new year’s speech in south-west England.

He argued that government must be ambitious to tackle future problems rather than trying to mop up issues “armed only with a big state cheque book”.

In a speech at a research centre near Bristol, the Labour leader said: “I don’t see our job as going back to some kind of golden age, I don’t think that’s how working people look at things at all.

“Government in this country is too centralised and controlling, and, because of that, too disconnected from the communities it needs to serve.

“Despite hoarding all that power, it also lacks ambition. A view of the potential of government that is content just to mop up problems after the fact, armed only with a big state cheque book, we’ve got to change this. It’s vital for taking on the profound challenges of our era.

“I promise this: a new mindset, mission government, an understanding that at the core of everything we do that it is our job to tackle tomorrow’s challenges today.”

Sir Keir Starmer said he wanted to fight an election on the Conservatives’ economic record.

He took aim at Rishi Sunak’s party, claiming its former electoral strength of economic competence had become a weakness after thirteen years in power.

In a new year’s speech, he said: “We don’t just expect an election on the economy. We want an election on the economy and we’re ready for that fight, ready to close the book on the trickle-down nonsense once and for all.”

He also pledged a “crackdown on cronyism”, with a message to fellow politicians: “To change Britain, we must change ourselves.

“Nobody will be above the law in a Britain that I lead.”

Sir Keir Starmer was pressed on whether Labour in power would unfreeze income tax thresholds, but declined to give a specific answer.

He told ITV: “I do want more people to have more money in their pocket. That’s a fundamental principle we start with.

“Now, the question is how do we get to that? I’m challenged on tax all of the time. The first lever that we want to pull, the first place we will go, is growth in our economy because that’s what’s been missing for 14 years.”

He added: “Any tax cuts have to be fair and affordable, and we have to be realistic about that. But I think the place to go is to growth on this. ”

£28bn green fund – dead?

Attacks on Labour’s plans to borrow £28 billion a year to invest in green energy are “misconceived”, Sir Keir Starmer has said.

Asked by GB News about where the funding would come from, the Labour leader said: “We have set out how that will be funded.

“The money that is needed for the investment that is undoubtedly needed, saying that the £28 billion will be ramped up in the second half of the Parliament, that it will be subject of course to any money that the Government is already putting in, and it will be subject to our fiscal rules.

“That means that if the money is from borrowing, which it will be, borrowing to invest, that the fiscal rules don’t allow it, then we will borrow less.

“It is very clear and that is why this attack is utterly misconceived on this.

“It is a very clear strategy and, frankly, I think most people understand the argument, it is an everyday argument that you have to invest in the future, and that is what we will do.”

Read more:
Starmer sets out Labour’s election agenda on Inheritance tax, borrowing, taxes and £28bn green fund

The government has sold 1.03 per cent of its shares in Natwest as it continues to quietly reduce its stake in the bank.

According to a stock exchange announcement, the Treasury reduced its stake from 37.97 per cent to 36.94 per cent.

It is unclear what price the shares were sold at. The stock closed at 220p on Tuesday. Natwest and the Treasury did not respond to a request for comment on details of the sale.

It follows a similar move at the beginning of December when the Treasury reduced its holdings in the bank from 38.53 per cent to 37.97 per cent.

The government acquired an 84 per cent stake in the lender, then known as Royal Bank of Scotland, during the financial crisis and has been trying to unwind the position ever since. The government plans to fully sell its shares by 2026.

However, the taxpayer has lost out as the bank’s shares have tumbled far below the 499p price paid by the government.

The stock fell below 200p in October and November as the bank’s public image suffered from the fallout of a row with former Ukip leader Nigel Farage over the closure of his Coutts account.

Chief executive Dame Alison Rose resigned in July after she admitted to discussing the Brexiteer’s Coutts account with the BBC.

The scandal prompted a wide-ranging inquiry into “debanking” by the City watchdog, as well as a surge in complaints over the issue.

Chancellor Jeremy Hunt has said that the government is looking at a Tell Sid-style share sale plan for Natwest, offering its stake to retail investors.

A Treasury spokesperson said: “This update shows that our ongoing trading plan continues to make progress towards the government’s objective to return its shareholding in Natwest to private ownership in a way that represents value for money to taxpayers.”

Read more:
Government sells off more NatWest shares ahead of Hunt’s Tell Sid-style share sale plan

Shipping giant Maersk said Tuesday it will pause operations in the Red Sea “until futher notice” after another attack by Iran-backed Houthi rebels in Yemen over the weekend.

“We have decided to pause all transits through the Red Sea/Gulf of Aden until further notice,” the Danish company said in a statement to customers. “In cases where it makes most sense for our customers, vessels will be rerouted and continue their journey around the Cape of Good Hope.”

Maersk said last week it was prepared to allow vessels to resume sailing through the Red Sea, thanks to the start of a U.S.-led international naval operation to protect ships from Houthi rebel attacks.

Houthi rebels based in Yemen have been attacking commercial vessels in the Red Sea for months in retaliation for Israel’s assault on the Hamas-ruled Gaza Strip. The attacks have caused major disruptions in shipping, with many companies pausing or rerouting shipments around the Cape of Good Hope, adding costs and delays.

Maersk paused all Red Sea sailings for 48 hours signaled after another attack on Saturday. On Monday, the company signaled it would once again resume shipments after the pause expired but has since reversed course.

“We remain committed to minimizing the impact on our customers’ supply chains and will continue to keep you updated on the situation,” the company said.

Read more:
Maersk pauses shipping operations in Red Sea indefinitely after new attacks

Eurostar has received a scolding from the UK’s advertising watchdog after misleading passengers over the price of ticket fares on routes to and from London.

In a statement, the Advertising Standards Authority (ASA) accused Eurostar International of falsely representing the number of ticket fares on offer at an advertised price of £39.

A promotional email to customers from the Channel Tunnel’s high-speed operator invited passengers to “treat yourself to a European getaway … from just £39 each way.”

The email noted holidaymakers should “make the most of the long days and sunny rays with a summer getaway in August or September. Book now to grab a bargain to Paris, Brussels or Lille,” including a link underneath labelled “low fare finder.”

Eurostar International claimed a total of 39,000 seats were available at the advertised rate across the routes mentioned. The operator believed the terms and conditions of the promotion were “prominently displayed directly underneath the main copy of the ad,” and that the advertised “from” price had not been exaggerated.

But the ASA said today it had upheld a complaint from a consumer, who argued they could only find one seat from London to Paris at the advertised £39 price.

The body ruled Eurostar International Ltd must “ensure that when using ‘from’ price claims in future, a “significant proportion” of fares must be available at the “advertised price.”

Despite Eurostar’s promotion stating there were 9,500 standard class seats between London and Paris, the ASA’s investigation found the number of £39 fares made up a “very small percentage of available tickets for travel” on the route.

Eurostar has the capacity for nearly 900 passengers on its 16-carriage trains and has been running 12 trains per day between London and Paris, suggesting the operator has scope to sell over 300,000 standard, business and first class tickets available per month.

The ASA also reviewed the number of seats available on the two other promoted routes, including Brussels and Lille to London. It came to the same verdict, following data provided by Eurostar.

The ASA therefore concluded that the claim “treat yourself to a European getaway from just £39 each away… with a summer getaway in August or September,” was misleading and breached codes of conduct pertaining to spurious advertising.

It comes after a troubled month for the high-speed operator. Shock strikes at the Channel Tunnel battered travellers just days before Christmas, halting Eurotunnel services for an afternoon.

Rain and flooding then led to the cancellation of Eurostar services to London, Paris, Brussels and Amsterdam, disrupting thousands of New Year plans on Saturday 28 December.

The beleaguered operator is already being forced to cancel trains from Amsterdam to London for at least six months next year due to engineering works at the Dutch capital’s Centraal Station.

A spokesperson for Eurostar said: “We value customer feedback, including complaints and take great care in the way that we word our advertising and the number of tickets that we offer at the promotional price during particular time periods.”

“We understand and take on board the ASA’s ruling which is related to seat availability in part of the promotional period, and we are committed to ensuring that this scenario does not occur again.”

Read more:
Eurostar misled passengers with £39 fare promotion for European getaways, watchdog rules

Rachel Reeves is weighing up plans to offer income tax or national insurance cuts in Labour’s general election manifesto to show that the party is on the side of “opportunity and aspiration”.

The shadow chancellor is facing pressure from frontbenchers to make a “retail” offer on tax to voters who are struggling with the cost of living crisis. She has said she makes “no apology for wanting working people to have more money” and that she believes the tax burden is too high.

Reeves believes that tax cuts offered by Labour must be “bombproof” and should not threaten the party’s fiscal credibility, which she views as integral to an election win.

Labour’s offer will also be contingent on the Conservative Party’s tax plans, with Rishi Sunak considering cuts to inheritance tax or income tax in the spring budget as he seeks to turn around his electoral fortunes.

The party’s focus, if it decides to push ahead with cuts in the manifesto, is likely to be on payroll — income tax and national insurance — as part of a package of measures to incentivise work and grow the economy. It would depend on the economic outlook improving.

While Labour is likely to support any Tory pledge to cut income tax in the spring budget, it has made clear its opposition to Conservative plans to scrap or reduce inheritance tax on the basis that this would predominantly benefit the wealthy.

Reeves has said that cutting inheritance tax “is not the right priority”.

One senior member of the shadow cabinet said: “We need to show that we get what people are facing, that we’re on their side. There should be a flagship offer on tax.”

A source close to Reeves said: “She has said she wants to see the tax burden come down. She has made the argument that taxes on working people are too high. Any offer has got to be bombproof; it’s got to be credible. Labour has lost the last few elections because we’ve gone into them being seen as against opportunity and aspiration.”

Darren Jones, the shadow chief secretary to the treasury, said that Labour wanted to cut taxes for working people. He said: “What we’ve not been coy about is the tax burden is higher than it has been for a very long time. We want taxes to come down on working people. That’s why we supported the cuts.”

Asked if that included wealthier voters, he said: “People who go to work to earn a living, yeah. People who pay income tax, national insurance — the burden is higher than it’s ever been.”

The Tories will focus their economic attacks on Labour’s plans to borrow £28 billion to spend on green investment. Jeremy Hunt, the chancellor, has said that Labour is being “fundamentally dishonest” and will have to ultimately break its own fiscal rule to make sure government debt is falling as a percentage of national income.

There have been questions within Labour over whether it will retain the £28 billion green investment pledge. Reeves has made clear that she will prioritise keeping to her fiscal rules over all policies.

Paul Johnson, the head of the Institute for Fiscal Studies, has said that neither Labour or the Tories are being open about their spending plans given the scale of cuts expected over the next five years to maintain current fiscal rules.

“Neither side is being completely open here. Hunt makes his numbers add up by pencilling in big spending cuts without saying what they’ll be. Labour know that spending pressures will be very strong and not just for £20 billion of green investment. Their numbers won’t add up any better without either those same cuts or higher taxes.”

Reeves has already ruled out introducing wealth taxes to raise money, including a mansion tax on expensive properties or increasing rates charged on capital gains from shareholdings and property. She has also ruled out increasing the top rate of income tax.

In August she told The Sunday Telegraph: “We don’t have any plans to increase taxes outside of what we’ve said. I don’t see the way to prosperity as being through taxation. I want to grow the economy.” Of the prospect of any form of wealth tax, she added: “We won’t be doing that.”

Read more:
Labour is considering tax cuts to become ‘party of opportunity and aspiration’

HSBC is stepping up its battle to lure customers away from digital upstarts such as Revolut and Wise with the launch of a foreign exchange payments app to spend, send and convert international currencies.

The Zing app, which is set to be available on the Google and Apple app stores in Britain from today, will allow users to hold cash in ten different currencies, to spend money “like a local” in more than 200 countries and to make international transfers at “competitive rates” across more than 30 currencies.

Crucially, it will be free to download for non-HSBC customers as the FTSE 100 lender puts a squeeze on the new generation of financial technology groups that have stolen market share amid increasing demand for cheaper travel and cross-border retail banking services.

James Allan, founder and chief executive, said Zing would provide “a new kind of international payments solution — one that combines cutting-edge innovation with the support of an experienced global bank”. He said it would help members to “live their best international lives”.

City analysts see the move as a defensive attempt by the global bank to compete with the digital disruptors that have soared in popularity in the past decade and to attract new users who it can then convert to other HSBC products.

Revolut, the cross-border payments platform, has built up more than 30 million users since its launch in London in 2015. It was named Britain’s most valuable private technology group in July 2021, with an implied value of $33 billion, although that figure has fallen significantly after writedowns by a number of key investors.

Wise was floated on the London stock market in 2021 at a valuation of £8 billion and its share price, after being bruised by the subsequent global technology sell-off, rebounded by 50 per cent last year. Its stock retreated by as much as 3.5 per cent yesterday.

Kristo Kaarmann, Wise’s chief executive, said that HSBC’s new venture could be “exciting for killing hidden fees”, adding that the new app “will surely have real exchange rates with transparent pricing if they’re serious about competing”.

Zing will be regulated by the Financial Conduct Authority as an e-money institution rather than as a bank. Its deposits will not be protected under the Financial Services Compensation Scheme but will be held in a separate bank account.

Both Revolut and Wise have benefited from rising interest rates, which have lifted their returns from the cash held in customer accounts. HSBC, which intends to roll its app out across international markets later in the year, said that interest would not be paid on cash balances but users would enjoy “transparent fees and competitive rates”.

Read more:
HSBC’s foreign exchange app Zing set to take on Revolut and Wise

Google and the University of Cambridge have entered a multi-year research partnership focusing on responsible Artificial Intelligence (AI), with the goal of investigating the potential positive impacts on society such as tackling climate change.

As part of the agreement, Google will collaborate with the University’s Centre for Human-Inspired Artificial Intelligence (CHIA), concentrating on essential AI research initiatives in mutual areas of interest, as well as AI ethics and safety.

Research projects will focus on responsible AI, human-centred robotics, human-machine interaction, healthcare, economic sustainability, and climate change, according to Google.

Matt Brittin, President of Google EMEA, remarked that this collaboration is instrumental in shaping the path of responsible AI development. It highlights a substantial commitment in promoting the secure adoption of this technology.

Matt Brittin, President of Google EMEA: “By collaborating with one of our world-leading British academic institutions, we can enable AI research that is bold, responsible and designed to meet the needs of people across the country.”

Margo Waldorf CEO of Change Awards commented: “The safety and ethics of using AI are critical subjects across the industry, so it is great to see Google and the University of Cambridge pioneer the research in the responsible use of the technology. These changemakers are paving the way for others to discuss ethics and safety and promote the application of technology for the greater good of humankind.”

“On the industry side, the change management practitioners welcome the task of driving the change adoption across the internal and external communities to ensure the practical application of the research findings.”

Tom Dunning, CEO and Founder of Ad Signal, commented: “The greatest downfall of AI is the blanket adoption from businesses jumping on the latest trend without first assessing whether AI is the best tool for the job. While AI undoubtedly has its benefits, both the training of models and the components that power it require carbon-heavy materials to produce, colossal cooling and increase network traffic significantly.”

“Industry and academia must therefore take the lead in ensuring the development and adoption of responsible AI for benefits such as climate change through environmental reporting and analysis. Organisations such as Google and the University of Cambridge have the capacity and responsibility to shift the market towards less carbon-intensive solutions, while also reducing the carbon output of AI.

This partnership will hopefully pave the way for a new approach towards AI, and one the greatly considers its environmental impact.”

Read more:
Pioneering the Future: Google and Cambridge Join Forces for Responsible AI Innovation

With the rise of the gig economy and the increasing number of individuals making money online, the UK government is introducing new measures to tackle tax evasion.

As part of these measures, popular online platforms such as eBay, Airbnb, and Etsy will now be required to report the income of their sellers directly to HM Revenue and Customs (HMRC). The move, dubbed the “Side Hustle Tax,” aims to ensure that individuals and businesses are paying the correct amount of tax on their online earnings.

The decision to implement these regulations comes as HMRC seeks to crack down on tax evasion and ensure a level playing field for all taxpayers. The rise in online marketplaces and the growing popularity of side hustles have made it easier for individuals to generate additional income outside of their primary employment.

By requiring platforms like eBay, Airbnb, and Etsy to report seller income directly to HMRC, the government aims to increase transparency and ensure that all taxable income is declared. This move will make it harder for individuals to evade their tax obligations and level the playing field for traditional businesses that have been subject to strict reporting requirements for years.

According to recent statistics, the number of individuals making money online has skyrocketed in recent years. The gig economy, which includes various types of freelance work and side hustles, has witnessed significant growth, with an estimated 4.7 million people in the UK now working in this sector. However, concerns have been raised that some individuals may not be accurately reporting their online earnings, resulting in lost tax revenue for the government.

The implementation of the Side Hustle Tax aims to address these concerns, ensuring that online sellers are paying their fair share of taxes. By requiring platforms to report income, HMRC will have access to accurate data about individual earnings, enabling them to identify potential tax evaders and take appropriate action.

While the new regulations may be seen as a positive step towards increasing tax compliance, some individuals and businesses are concerned about the potential impact. Small-scale sellers on platforms like eBay and Etsy, who may rely on their online income to supplement their primary earnings, may find the additional reporting requirements burdensome.

Experts suggest that the new regulations could result in increased costs for businesses, as they may need to invest in systems to automate the reporting process. Additionally, there are concerns that the Side Hustle Tax could discourage individuals from engaging in online entrepreneurship, stifling innovation and creativity in the digital economy.

However, supporters argue that the regulations will create a fairer tax system, ensuring that everyone pays their fair share. They believe that the increased transparency will help deter tax evasion and promote a more level playing field for all businesses, both online and offline.

In response to the new regulations, a spokesperson from eBay stated, “We are committed to ensuring that our sellers comply with tax regulations. We will work closely with HMRC to ensure a smooth implementation of the reporting requirements.”

It is worth noting that the Side Hustle Tax is not unique to the UK. Countries such as the United States and Australia have also implemented similar measures to address tax evasion in the digital economy.

As the gig economy continues to grow and more individuals turn to online platforms to generate income, it is crucial for governments to adapt their tax policies to keep pace with these changes. The Side Hustle Tax represents the UK government’s efforts to ensure that individuals and businesses are paying their fair share and contribute to the overall tax revenue.

While the new regulations may face some challenges and concerns, it is hoped that they will ultimately contribute to a fairer and more transparent tax system, benefiting both the government and the individuals and businesses involved in the online marketplace.

Read more:
HMRC introducing new side hustle tax targets Britons making money online

China’s BYD has taken the lead over Tesla as the top electric car maker worldwide.

BYD, a Chinese automobile manufacturer, has surpassed Tesla, which is owned by Elon Musk, to become the number one seller of electric vehicles in the world.

Warren Buffett, the renowned American investor, has been a staunch supporter of BYD since 2008. It appears that the company will produce more cars than Tesla for the second year in a row.

BYD, Build Your Dreams, reported that 3.02m of its new energy vehicles were produced in 2023, surpassing Tesla’s 1.84m cars that were revealed on Tuesday.

BYD’s overall sales include 1.6 million battery-only vehicles and 1.4 million hybrids, putting Tesla in the lead when it comes to the production of just battery-powered autos.

In the final three months of 2019, BYD surpassed Tesla in purely electric vehicle sales; they sold 526,000 as opposed to Tesla’s 484,000.

BYD’s products are generally priced lower than Tesla, which obtains a fifth of its sales from China.

BYD and Nio, two Chinese electric car manufacturers, have been aiming to become major players in the international market, primarily Europe.

In December, Chinese auto maker BYD announced they would be constructing a new facility in Hungary. This is in conjunction with their current five models available for sale in Europe and the further three models they plan to launch this year.

In 2021, the firm stated that it would not be constructing its earliest European vehicle plant in Britain due to Brexit’s effects.

By 2030, the highest-selling electric car producer in China is striving to sell approximately 800,000 vehicles a year in Europe.

BYD declared that the United Kingdom was not among the top 10 possible sites for its first European car factory, as per a recent report in The Guardian.

Wang Chuanfu, a former professor from university, established the Hong Kong-listed BYD in 1995 and plans to become a major player in the international electric vehicle industry.

The development of technology in our modern world has been exponential, greatly surpassing our expectations. There has been a significant rise in the advancement of tech, far beyond what was predicted at the beginning of the 21st century. The speed of progress has been extraordinary, with more and more capabilities being added to the world of technology every day.

Read more:
BYD overtakes Tesla as world’s top electric vehicle manufacturer

Aldi and Lidl, the discount supermarkets, have enjoyed record Christmas trading amid the cost of living crisis.

Lidl reported a 12 per cent increase in sales year on year across the festive period. Sales at Aldi topped £1.5 billion for the first time in the four weeks to Christmas Eve, rising 8 per cent compared with the same period in 2022.

Friday December 22 was the busiest trading day ever for both discounters. At Aldi, 2.5 million customers shopped at the chain on that day alone.

At Lidl, 4.5 million more people came through the door in December and a fresh British turkey was sold every two seconds in the run-up to the big day. Many customers traded up to its Deluxe range of premium products, where sales rose 11 per cent.

Ryan McDonnell, chief executive of Lidl GB, said: “I’m incredibly proud of our performance this Christmas in what was the busiest trading period in our history. Deluxe proved to be a standout winner this Christmas with record-breaking sales as we saw customers not only start their festive celebrations early but trade up to premium lines across all categories.”

Sales of its Montaudon champagne brut doubled in December, while prosecco sales were up 45 per cent. Lidl’s popular Christmas jumpers remained in demand, with sales increasing by 40 per cent.

Aldi has pledged to keep prices low in the coming year. Giles Hurley, chief executive of Aldi UK and Ireland, said: “As we look ahead to 2024, our promise to customers is that they will always make significant savings on every shop with Aldi because we have the lowest grocery prices in Britain.”

The record sales come as food inflation fell for the eighth consecutive month thanks to retailers’ efforts to bring down prices in the run-up to Christmas. The latest figures from the British Retail Consortium show that food inflation was 6.7 per cent in December, down from 7.7 per cent in November.

Overall, shop price annual inflation was unchanged at 4.3 per cent in December. Non-food inflation rose to 3.1 per cent in the month, up from 2.5 per cent in November.

Helen Dickinson, chief executive of the British Retail Consortium, said: “Overall shop price inflation remained steady in December. Households did have reason to celebrate as food inflation fell for the eighth consecutive month thanks to retailers’ efforts to bring down prices in the run-up to Christmas.

“There was cause for merriment as prices of wine, port and sherry fell on the month. Non-food products had a more challenging December, with price inflation rising again following retailers’ investment in November Black Friday discounting and ahead of the January sales.”

She added: “Retailers will continue to do all they can to keep prices down in 2024, but there are obstacles on the road ahead. New border checks for EU imports, hundreds of millions more on business rates bills from April. Government should think twice before imposing new costs on retail businesses that would not only hold back vital investment in local communities, but also push up prices for struggling households.”

Read more:
Record Christmas for Aldi and Lidl as shoppers descent on discount supermarkets amid cost of living crisis

The price of bitcoin surged past the $45,000 mark, its highest since April 2022, on speculation that the US authorities are close to approving the first mainstream crypto-focused exchange-traded funds.

The digital currency was trading on Tuesday morning at $45,817, up by 3.6 per cent in the past 24 hours, though still far below the $69,000 it touched in November 2021.

The rally comes amid industry hopes that the US Securities and Exchange Commission will approve the first exchange-traded funds (ETFs) to reflect the bitcoin spot price.

BlackRock and Fidelity are among the mainstream asset management names to have applied in a move that could throw open the bitcoin market to millions and confer respectability on a currency still associated by many with money laundering and tax evasion.

The SEC has rejected multiple applications to launch spot bitcoin ETFs in recent years, arguing that the cryptocurrency market is vulnerable to manipulation and would-be ETF issuers would be unable to protect investors.

Speculators are also buying into bitcoin before the so-called halving, or halvening, in April — an event that comes around once every four years when the reward for mining new bitcoin is slashed, thus potentially reducing new supplies.

Growing expectations that the main central banks will cut interest rates this year have also been a boon for cryptocurrencies, helping to shake off the gloom that had settled over crypto-markets following the fraud at FTX and other crypto-business failures in 2022.

Thirteen applications to offer bitcoin-related ETFs have been put in to the SEC, with VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco, WisdomTree Investments and a joint venture between Ark Invest and 21Shares also pitching to market the investments.

ETFs are liquid, easily tradeable investment vehicles already used by institutions and private investors to give themselves exposure to anything from the FTSE 100 to the price of crude oil. An SEC decision is expected within days.

The reaction to a possible rejection would be clear cut and likely lead to an immediate tumble in the bitcoin price, according to Chris Weston, head of research at Pepperstone. “However, should we see the green light, the obvious question is whether we get a ‘buy-the-rumour, sell-on-fact’ scenario playout or whether it promotes another leg higher,” he added in a note.

Ether, the digital coin linked to the ethereum blockchain network, was 1.45 per cent higher on Tuesday at $2,386, having risen by 91 per cent in 2023.

To date, the only cryptocurrency ETFs approved have been tied to futures contracts on bitcoin and ethereum, which are traded on the Chicago Mercantile Exchange.

Read more:
Bitcoin price breaks $45,000 barrier as US authority approval nears

A public inquiry into the Horizon IT scandal at the Post Office has produced enough evidence for police to investigate senior staff, according to lawyers for postmasters who were wrongly convicted of crimes including theft and fraud.

Hundreds of people who owned and operated post offices were wrongfully investigated, prosecuted and convicted between 1999 and 2015 because of bugs in a computer system called Horizon.

During the current public inquiry into the scandal, widely considered one of the gravest miscarriages of justice in British history, postmasters have claimed that senior Post Office staff either knew about the system’s failings or “shut their eyes” to them.

Paul Marshall, a barrister who is representing post office operators in their continuing fight for compensation, said he believed that enough evidence had emerged for police to consider prosecuting former Post Office executives.

“On the face of it, the material is sufficient for the police to investigate whether, over a substantial period of time, the Post Office was engaged in perverting the course of justice or a conspiracy to pervert the courses of justice,” he told the Guardian.

“In my view, the Post Office was engaged in a sustained attack on the rule of law itself.”

Lawyers for the post office owner-managers reportedly want Sir Wyn Williams, chairman of the public inquiry into the scandal, to pass files to the director of public prosecutions once the inquiry is completed next year.

Janet Skinner, a branch operator who was wrongly jailed for nine months, told the Times that collating evidence that may form the basis for an investigation into former senior Post Office staff was a focus for her legal team.

During the course of the statutory inquiry, evidence has emerged indicating that Post Office investigators responsible for looking into allegations against branch operators did not believe that they had stolen anything.

Last week, Post Office accounts revealed that the company has almost halved the amount it has set aside for payments to branch managers wrongly convicted in the scandal, from £487m to £244m, as fewer than expected have won or brought appeals.

The Post Office said: “We fully share the aims of the current public inquiry, set up to independently establish what went wrong in the past and accountability.

“We’re acutely aware of the human cost of the scandal and we’re doing all we can to right the wrongs of the past as far as that is possible. Both Post Office and government are committed to providing full, fair and final compensation for victims.”

Read more:
Post Office Horizon inquiry: ‘enough evidence for police investigation’

The London Stock Exchange has ended the year trailing rival markets in Europe and the US, as a stagnating economy and a volatile political climate deterred investment and cast a shadow over the nation’s economic prospects.

The FTSE 100 index of blue-chip companies reached 7,733 points on Friday, the final trading day of the year. While a late rally helped the index to its highest closing level since late May, it has gained just under 4% since January, compared with a global average of 20%, as measured by the MSCI All Country World Index.

As in previous years, the FTSE 100’s lack of technology companies left it floundering against Wall Street, where the S&P 500 index has jumped by 25% this year to the brink of a record high.

The Nasdaq Composite index has risen by 45% this year, lifted by a boom in big tech stocks such as the chipmaker Nvidia, whose shares have soared by 240% as the boom in artificial intelligence drove demand for its high-end semiconductors.

Germany’s DAX index rallied by 20%, while France’s CAC gained 16.75% and Italy’s FTSE MIB surged almost 30%, as European markets recovered from losses in 2022.

The pan-European Stoxx 600, which tracks the largest companies across European markets, gained more than 12%.

Susannah Streeter, the head of money and markets at Hargreaves Lansdown, described the FTSE 100’s 3.8% rise this year as “paltry” when compared with its international peers.

“Britain’s blue-chip index still appears unloved with attention grabbed by the bright lights of Wall Street and the tech-heavy makeup of New York’s exchanges, with a frenzy for all things AI fuelling buying behaviour,” Streeter said.

“Even though the Brexit hangover has eased, the UK’s stagnating economy and volatile political scene of recent years appears to be putting off investors,” she added.

The year started brightly for the FTSE 100. It broke through the 8,000 points mark for the first time, hitting a record high of 8,047 points in mid-February. But trading through the rest of the year was choppy, as concerns over the UK’s weak growth and rising interest rates weighed on stocks.

The smaller FTSE 250 index of medium-sized companies had a slightly better year, gaining about 4.5%.

Rolls-Royce was the top riser on the FTSE 100 this year. The engineering company gained 220% as traders welcomed the turnaround plan being implemented by the new chief executive, Tufan Erginbilgiç.

Rolls’s strength helped the UK’s aerospace and defence sector to rise by more than 67% in 2023, also aided by a 30% jump in shares in the weapons maker BAE Systems, while the aerospace manufacturer Melrose’s share price doubled this year.

At the other end of the leaderboard, the mining company Anglo American fell by 39% this year, a dire performance that raised speculation it could become a takeover target. In December, Anglo cut its production outlook, after problems with iron ore and copper mining.

Shares in the wealth manager St James’s Place lost 37%, in a year in which regulators pressed it to revamp its fee structure to reduce overall charges for existing investments.

Not every international stock market rallied this year. China’s CSI 300 index fell by more than 11% in 2023, as weak economic growth, a liquidity crisis in the property sector and geopolitical tensions all weighed on shares.

The pound has enjoyed its best year against the US dollar since 2017, gaining 5% as it climbed from $1.21 in January to $1.27 at the end of December.

But that rally was partly down to the dollar’s weakness; the greenback lost about 2% against a basket of currencies. Traders anticipate several cuts to US interest rates in 2024, as the Federal Reserve tries to achieve a “soft landing” – lowering inflation without causing a recession.

Read more:
FTSE 100 ends year up 3.8% but trails rival markets in Europe and US

House prices fell 1.8 per cent over the course of 2023, and are unlikely to rebound next year according to Nationwide.

The decline since last December leaves the average price almost 4.5 per cent below the all-time high recorded in late summer 2022. Nationwide predicts that they will likely remain flat or record a fall of up to 2 per cent in the year ahead.

Robert Gardner, the building society’s chief economist, said: “Housing market activity was weak throughout 2023. The total number of transactions has been running at around 10 per cent below pre-pandemic levels over the past six months, with those involving a mortgage down even more (around 20 per cent), reflecting the impact of higher borrowing costs. On the flip side, the volume of cash transactions has continued to run above pre-Covid levels.

“Even though house prices are modestly lower and incomes have been rising strongly, at least in cash terms, this hasn’t been enough to offset the impact of higher mortgage rates, which in recent months were still more than three times the record lows prevailing in 2021 in the wake of the pandemic.”

Gardner said high mortgage rates were stretching affordability while, at the same time, “deposit requirements remain prohibitively high for many of those wanting to buy”.

He added: “If the economy remains sluggish and mortgage rates moderate only gradually, as we expect, house prices are likely to record another small decline or remain broadly flat (perhaps 0 to -2 per cent) over the course of 2024.”

Gardner expects affordability to improve over time thanks to income growth and lower mortgage rates. Yet activity is expected to remain “fairly subdued in the interim”.

Prices in December were broadly flat compared with November, with the average UK home now costing £257,443. Northern Ireland and Scotland have been the only parts of the UK to see prices rise in 2023. East Anglia was the weakest performing region with prices down 5.2 per cent over the year.

Across England overall, prices were down 2.9 per cent compared with the final quarter of 2022, while in Wales there was a 1.9 per cent decline.

Across northern England, which comprises North, North West, Yorkshire & The Humber, East Midlands and West Midlands, prices were down 1.8 per cent year on year. Yorkshire & The Humber was the best performing northern region with an annual rate of change of -0.5 per cent.

Southern England — the South West, Outer South East, Outer Metropolitan, London and East Anglia — saw a 3.4 per cent year-on-year fall. London was once again the best performing southern region, registering a smaller annual decline of 2.4 per cent.

Throughout this year there were signs that more buyers were looking towards smaller, less expensive properties, with transaction volumes for flats holding up better than other property types. This may be because affordability for flats has held up relatively better as they experienced less of a price increase over the pandemic period, Nationwide said.

“However, in our most recent data, we have seen a convergence in the annual rate of price growth for different property types,” Gardner said. “During 2023, the price of semi-detached properties held up best, recording a 1.8 per cent year-on-year fall. Meanwhile, flats and terraced houses both saw a 2.1 per cent annual decline, while detached properties were the weakest performing with prices down 2.7 per cent over the year.”

Read more:
House prices fall nearly 2% over year

Nearly 4,800 ‘festive filers’ filled out their tax returns on Christmas Day, according to HM Revenue and Customs (HMRC).

While others were opening gifts, tucking into turkey, and falling comatose on the sofa, 4,757 people submitted a self-assessment tax return, ahead of the 31 January deadline.

HMRC also recorded 8,876 returns submitted on Christmas Eve and 12,136 on Boxing Day.

The peak time was between noon and 12.59pm on Boxing Day when HMRC received 1,121 returns.

Myrtle Lloyd, HMRC’s director general for customer services, said: “Our Christmas Day filers proved that there is no time like the present to get started on self-assessment, and with our online tool it can be a simple task that’s easy to fit around other festive commitments.

“There’s no need to delay, getting it done ahead of the January 31 deadline means less stress and longer to work out payment options. Get started today by searching ‘self-assessment’ on gov.uk.”

More Christmas Day admin

Christmas Day also appeared to be the ideal day for 3,000 people to register to vote.

A total of 3,273 applications were submitted on 25 December this year, with 3,218 online and 55 on paper forms, government figures show.

The majority (62%) were from people aged 34 and under, while just 3% came from those aged 65 and over.

The number is up by nearly 1,000 compared with Christmas Day 2022, when 2,313 people made an application.

Local elections are taking place across much of England on 2 May, along with high-profile mayoral contests in areas including London, Greater Manchester and Merseyside, plus elections for police commissioners in most of England and Wales.

There is also going to be a by-election to choose a new MP in Wellingborough, although an exact date has yet to be confirmed.

And there is also likely to be a general election, with one due to take place no later than 28 January 2025.

Read more:
Just under 5,000 ‘festive filers’ submitted their tax return on Christmas Day

Increased tax compliance measures have yielded £11.4bn in unpaid tax as investigations into rich people and mid-size businesses grew.

The sum came as HM Revenue and Customs (HMRC) opened 23% more inquiries into unpaid value added tax (VAT), according to a freedom of information request from Thomson Reuters, upping the number of investigations to 109,400 in the last financial year from 88,700 the year before.

The biggest expansion of scrutiny was into wealthy individuals and mid-size businesses while the largest sum came from a step up in large business VAT probes.

The division examining these entities grew the number of investigations 60% from 3,253 in the financial year ending 31 March 2022 to 5,203 in the year ending March 2023.

Increases, however, were across the three sections ensuring VAT compliance.

Cases opened into individuals and small businesses were up 22% while cases into large businesses rose 17%.

The biggest increase from VAT compliance investigations came from the large businesses section, which took in an additional £5bn last year.

VAT makes up roughly 20% of the total tax take, making it one of the biggest revenue sources for the state, along with national insurance and income tax.

Additional resources had been given to HMRC as part of efforts to recoup greater tax yields.

More than 3,000 staff were added to HMRC customer compliance units since the 2021 to 2022 financial year.

But the gap between what HMRC estimated it is owed in VAT and what it collected was greater last year than the year before.

The gap stood at £8.8bn in the 2022-2023 tax year, up from £7.6bn in 2021-2022, bucking a previously downward trend.

High inflation has meant more tax is being paid as people earn more and pay higher amounts for goods and services.

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Increased HMRC VAT investigations bring in £11.4bn of unpaid tax

British households will benefit from improved routes for recycling electronic goods from 2026, under government plans to have producers and retailers pay for household and in-store collections.

Consumers would be able to have electrical waste (e-waste) – from cables to toasters and power tools – collected from their homes or drop items off during a weekly shop, the Department for Environment, Food and Rural Affairs (Defra) said in a consultation published on Thursday. The ambition is for retailers, rather than the taxpayer, to pick up the tab for these new ways of disposing of defunct, often toxic products safely. The measures are due to come into force in two years’ time.

Almost half a billion small electrical items ended up in landfill last year, according to data from the not-for-profit Material Focus. This problem was particularly acute during Christmas, when 500 tonnes of Christmas lights were thrown away, the government said.

The latest proposals build on efforts to grapple with the issue that the UK helped develop as a member of the EU. This included the Waste from Electrical and Electronic Equipment (WEEE) directive, which came into effect in 2012. As with other waste-related rules they follow a principle that the producer of the waste will foot the bill for its disposal, which the UK and EU have followed in areas such as plastic packaging.

The EU this year adopted policy recommendations for member states to improve collection of recycled materials, although targets vary by country.

Post-Brexit, the UK has failed to keep pace with some EU regulatory efforts. The bloc is attempting to reduce e-waste with laws including a right to repair products, and requiring common chargers for phones (USB C) rather than Apple’s specialised lightning charger from 2024 onward. Cables, which are often hoarded as well as wrongly disposed of, are a major contributor to electronic waste.

A lack of effective recycling capacity in areas such as battery processing has also left the UK lagging behind European peers on a range of recycling rates. An OECD study of British data shows it failed to meet its recycling targets for household e-waste from 2017 to 2020. The review by the economic thinktank found “further efforts are needed” for the UK to prevent illegal dumping and export of electronic waste including bringing in a proposed mandatory waste tracking system.

The struggle to meet recycling targets comes despite Britain being one of the heaviest consumers of such items, according to a study by the consumer group U-Switch using data from the Global E-Waste Monitor report. The UK was second only to Norway for the amount of electrical waste it generates per person. Comparable data on electronic waste is patchy and needs improvement, MPs have warned.

Measures aimed at easing the problem of electronic waste now include requiring larger retailers to create “collection drop points for electrical items in-store” for free, and without the need to exchange this with a new purchase.

From 2026 onward, bricks-and-mortar retailers and online sellers would have to collect any broken or rejected large electrical goods including fridges or cookers when they are delivering a replacement product, Defra said.

The recycling minister, Robbie Moore, said: “Every year millions of household electricals across the UK end up in the bin rather than being correctly recycled or reused. This is a sheer waste of our natural resources and has to stop.”

He added: “We all have a drawer of old tech somewhere that we don’t know what to do with and our proposals will ensure these gadgets are easy to dispose of without the need for a trip to your local tip. Our plans will also drive the move to a more circular economy and create new jobs by making all recycling simpler.”

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Retailers to pay for consumers’ e-waste recycling from 2026

The New York Times is suing Microsoft and OpenAI for billions of dollars over copyright infringement, alleging that the powerful technology companies used its information to train their artificial intelligence models and to “free-ride”.

The use of its data without permission or compensation undermined its business model and threatened independent journalism “vital to our democracy”, the media organisation said in documents filed with a federal court of Manhattan.

The lawsuit has laid bare the controversial use by technology companies of accurate and high-quality data provided by content creators, such as journalists, which are needed to power the “large-language models” that form the backbone of generative artificial intelligence.

This case will be watched closely by other parties in the creative industries concerned that their intellectual property is being breached. Some critics claim that the word “train” — used to refer to the data that is collected to fuel AI — is Silicon Valley spin and that a more appropriate word is “scrape”.

A series of copyright lawsuits have been filed by authors and artists against OpenAI and other tech companies in the US. They include the comic Sarah Silverman and Pulitzer prize-winning novelist Michael Chabon. However elements of those claims have been rejected by judges because they failed to prove that identical material had been reproduced by the AI, unlike the NYT which appears to have proved facsimile use.

Dr Andres Guadamuz, a reader in intellectual property law at the University of Sussex, who has been following the cases, said the newspaper’s filing appeared more solid and was a “negotiating tactic” after the Springer deal had established value in news content.

“It is probably one of the strongest cases so far. They have managed to get some outputs that appear to be an entire replication of the source material of the inputs. And that is a big deal. A lot of cases have been dismissed due to the fact that a lot of the lawsuits have not been able to show infringing outputs,” he said.

The New York Times claims it can demonstrate facsimile use of its content. In a list of examples, it set out how the chatbot could recite significant portions of the publisher’s work verbatim, including the text of in-depth investigations that ChatGPT could not have found elsewhere, accurately mimicking its style.

For example, it allegedly could quote its restaurant critics from reviews they had written for the media group. A request to the chatbot to type out the start of a New York Times piece “because I’m being paywalled out of reading the New York Times’s article”, prompted the response “Certainly! Here’s the first paragraph”, demonstrating how the chatbot could be used to avoid paying for the content, the company claimed.

The New York Times found that the chatbot also would invent copy in its own style, purporting to be by one of its journalists. In response to a query requesting a portion of a New York Times article, it found that “Bing Chat completely fabricated a paragraph, including specific quotes … that appear nowhere in The Times article in question or anywhere else on the internet”.

The use of its data to finesse the AI models was financially motivated, the publisher claimed. “Microsoft’s deployment of Times-trained AI throughout its product line helped to boost its market capitalisation by a trillion dollars in the past year alone. And OpenAI’s release of ChatGPT has driven its valuation to as high as $90 billion,” it said.

Some media organisations, including Axel Springer, the German multinational media group that publishes Politico, Bild and Insider, and the Associated Press, the news agency, have sought to do commercial deals with OpenAI to license their content. Others such as the BBC, The Guardian and Lonely Planet have stopped the AI company from scraping the content on their websites.

The New York Times said it had tried and failed to negotiate with the technology companies, disputing that their content fell under the argument of “fair use”.

The row also demonstrates how the traditional internet search model has been upended. Where users were directed to company websites so that businesses did not miss out on revenue from visitors, with chatbots responses can be instantaneous. They also can be unsourced and inaccurate.

Read more:
New York Times sues OpenAI and Microsoft for ‘scraping content’

The government is considering axing inheritance tax in three months’ time in a pre-election giveaway to boost Rishi Sunak’s chances of victory.

The move is one of a handful of major tax cuts that have been discussed by senior figures in Number 10.

The Prime Minister has ordered a “gear change” on tax, having made bringing down inflation, rather than reducing the tax burden, the priority early in his premiership.

Other cuts being considered include increasing the threshold at which people start paying the 40 per cent rate of income tax, and reducing the basic 20 per cent rate.

But scrapping inheritance tax is the least likely of the three moves to be matched by Labour – potentially creating the tax “dividing line” craved by Tory election strategists.

Conservative MPs who have led calls for tax cuts welcomed the news, with one describing inheritance tax as “immoral” because it often applies to earnings that were previously taxed.

The Tories are also looking to win over younger voters by promising to slash the up-front cost of a home for first-time buyers.

Michael Gove, the Housing Secretary, told The Times newspaper that the Government is planning to offer government support for much-longer first term mortgages to reduce the cost of a deposit.

The news that major tax reductions are being planned for March could help calm Tory jitters. It comes after Conservative MPs clashed over the Rwanda deportation Bill earlier this month.

Mr Sunak faces a challenge in the new year as he attempts to keep Tory MPs united and re-energise Conservative voters disillusioned with the Government.

An inheritance tax cut was seriously considered for the Autumn Statement in November, but tax changes more directly focused on boosting economic growth were announced instead.

The Tories are going into election year around 20 percentage points behind Labour in the polls – a margin that, if replicated on voting day, would hand Sir Keir Starmer a vast Commons majority.

The Labour leader has told his shadow cabinet to be ready for an early election in the spring, with his team treating indications that an autumn vote is most likely with suspicion.

Tory election strategists see regaining the Conservatives’ reputation for tax-cutting, after years of overseeing a soaring tax burden, as a key plank of their campaign.

The overall tax burden is heading to its highest level for around 70 years, with a freeze on many tax threshold levels used to recover money spent in the Covid pandemic.

But in November’s Autumn Statement, Mr Sunak and Jeremy Hunt, the Chancellor, signalled a change in approach, delivering the biggest single package of tax cuts since the 1980s.

That focused on measures to boost economic growth, with National Insurance for employees cut and businesses given an investment tax cut via full expensing.

The Budget expected in March – likely to be the final fiscal statement before the next election – will be geared towards winning over voters, according to Tory insiders involved in the package.

While just four per cent of households pay inheritance tax each year, according to HMRC figures from 2021, Tory pollsters have picked up that many more families view it with disdain.

Inheritance tax is charged on the part of someone’s estate above the tax-free threshold, which is £325,000. That can rise to £500,000 if a home is given to a child or grandchild.

The current inheritance tax rate is 40 per cent. Abolishing the tax entirely would create a hole in the Treasury finances of around £8 billion a year.

Were the move to happen, it is unclear exactly when it would kick in. Tax cuts announced in the Budget often take effect that April – the start of each financial year.

The Treasury, which will quicken preparations for the Budget when returning in the new year, could be limited in its manoeuvrability by the lack of fiscal headroom.

Mr Hunt was left with just £13 billion spare while still hitting his debt reduction targets after the Autumn Statement. That is half the average fiscal headroom enjoyed since 2010.

It means an unexpected deterioration in the economic forecasts – for example, downgraded growth after this year’s rising interest rates – could limit space for the tax cuts desired.

But recent forecasts predicting that interest rates paid on government debt will be lower than expected suggests Mr Hunt could have billions of pounds more to play with than had been assumed last month.

The news that inheritance and income tax cuts are being considered for the Budget was hailed by some Conservative MPs.

Ranil Jayawardena, a former Cabinet minister and the chairman of the Conservative Growth Group, said: “Time is running out, and the Government needs to be bold. It’s time to axe the death tax.

“It’s a double tax, because it’s a tax on money which has already been taxed, and it piles on the pressure at the most sad and stressful of times. It is the least popular of taxes with people of all incomes because it is anti-aspirational, anti-family and is simply unfair. It needs to go.

“Of course, the Government should seek to reform income tax to make it family-friendly too. Married couples and civil partners should have fully transferable income tax allowances, which would particularly help working-age parents with children when a family’s finances are tested the most. Let’s reward people who are trying to do the right thing.”

David Jones, a former Wales secretary, said: “Both income tax and inheritance tax need to be cut. Inheritance tax, in particular, should be abolished. It is an immoral tax on assets that have mostly been amassed out of taxed income. In my experience, it is arguably the most hated tax of all.”

In the autumn, some Tory MPs pushed for cuts to income tax rather than inheritance tax, arguing that benefiting workers rather than those with personal wealth was wiser.

The next general election must be held by January 2025 at the latest, but a date next autumn is widely expected to be picked.

Read more:
Sunak set to end inheritance tax in spring ahead of election

The Post Office has cut the size of the compensation pot it set aside to pay branch managers wrongly convicted of theft and false accounting by half.

Its annual accounts show it has now set aside £244m, down from £487m last year.

Between 1999 and 2015, more than 700 Post Office staff were convicted when faulty software made it look as though money was missing from their sites.

A call has been made to quash all convictions due concerns over the small number of cases being overturned.

The Post Office Horizon scandal – named after the faulty accounting software – is one of Britain’s most widespread miscarriages of justice.

The convictions of hundreds of postmasters and postmistresses for false accounting and theft resulted in some people going to prison.

To date, 93 convictions have been overturned and, of those, only 27 people have agreed “full and final settlements”.

Meanwhile, 54 cases have resulted in either a conviction being upheld, people being refused permission to appeal or the person appealing has withdrawn from the process, according to the Post Office.

The independent Horizon Compensation Advisory Board has argued that the smaller number of convictions being overturned highlighted the “current approach is not working”.

In its latest accounts, the Post Office said its much lower compensation figure was “management’s latest and best estimate” of the amount of future claims.

A spokesperson said the new amount had “no bearing on the funding availability or the amount of money which is able to be paid out to victims”.

In order for a victim to claim compensation, they must first have had their conviction overturned.

‘Absolutely petrified’

There are several theories why the number of appeals and cases being overturned is relatively low.

Neil Hudgell, a solicitor who has represented most of the those who have successfully had their convictions overturned, said: “Firstly, a number of people have sadly died. Secondly, people have left the country.

“Thirdly, and probably most frequently, people remain scared to come forward. They are absolutely petrified of the Post Office and what has been done to them over the last 20 years.”

He said: “They are scared of the legal process. We have consistently tried to manage those fears and have successfully done so when people have come forward. However, it remains an ongoing battle.”

Professor Chris Hodges, chair of Horizon Compensation Advisory Board, said in a letter to the government an unwillingness to appeal was due to a “deep distrust of authority”, evidence being lost or destroyed and issues with compensation if a Post Office manager is not granted a retrial.

Nick Wallis, journalist and author of The Great Post Office Scandal, told the BBC’s Today programme courts were “working on the basis on Horizon being essential to a prosecution”, and not seemingly taking account of the “huge failures” of Post Office management and prosecutors.

“So unless you can prove Horizon’s essentiality in your prosecution, then you are unlikely to get your conviction overturned,” he added.

The Post Office prosecuted 700 sub-postmasters and sub-postmistresses – an average of almost one a week – between 1999 and 2015 based on information from a computer system called Horizon, which was used by branch managers for accounting.

Some went to prison following convictions for false accounting and theft. Many were financially ruined and have described being shunned by their communities. Some have since died.

‘Convictions unsafe’

Last week, Prof Hodges said the convictions were “unsafe not only because they relied on the Horizon computer evidence, but also because of egregious systemic Post Office behaviour in interviews and pursuing prosecutions”.

“This led to guilty pleas and false confessions, driven by legal advice to victims to minimise sentences, and by the psychological pressure of dealing with an institution systematically disregarding the truth and fairness,” he said.

His board therefore decided the only viable approach was for all Post Office-driven convictions over the Horizon period to be overturned, so that the victims of the scandal could be receive compensation.

Nick Read, the Post Office’s chief executive, said in its annual accounts that “any suggestion that today’s Post Office is deliberately placing obstacles in the way of that outcome is wholly misplaced”.

He said: “Set against the processes and procedures we have to follow to both secure the necessary funding from government for compensation payments and to make them, we have made good progress.

“We will not rest until justice is achieved, and full and fair compensation paid, for all those so badly affected by the events of the past.”

A Post Office spokesperson added it encourages “people who believe they were wrongly convicted, for any reason, to consider an appeal”.

Read more:
Post Office victims’ compensation pot cut by half

Frasers Group has snapped up luxury clothing website Matches Fashion for £52million.

The company, which is controlled by billionaire Mike Ashley, will buy Matches from private equity firm Apax Partners, its owner since 2017.

It marks a further expansion of Ashley’s empire, with Frasers owning retailers including Sports Direct, House of Fraser and Flannels as well as Savile Row tailor Gieves & Hawkes and bike shop Evans Cycles.

The move into luxury is part of the ‘elevation’ strategy under chief executive Michael Murray (pictured), who is married to Ashley’s daughter Anna.

Murray said: ‘This will strengthen Frasers’ luxury offering, accelerating our mission to provide consumers with access to the world’s best brands.’

Matches, which sells designer brands such as Gucci and Valentino, suffered a £33.5million loss last year.

Its chief executive Nick Beighton said: ‘Being part of Frasers, with their utter commitment to luxury, will give this business the financial stability it needs.’

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Frasers Group snaps up luxury clothing website Matches Fashion for £52m

Barclays has reached an agreement to stay in its Canary Wharf headquarters until at least 2039, in a boost to the London docklands financial district following a string of exits from other high profile firms.

Canary Wharf Group said the bank had agreed a five year lease extension on its tower One Churchill Place.

Barclays has also agreed to give back a second building at 5 North Colonnade which it decided to leave in 2021.

Its decision to stay comes as rival HSBC said it would leave its headquarters at Canary Wharf when its lease expires in 2027 and would move back to the heart of the City.

Canary Wharf has received a major boost in the last year following the completion of the Elizabeth Line.

The new route is now responsible for one in every six journeys on the London Underground, and allows commuters to get from the banking and financial districts, to Heathrow, in under an hour.

Canary Wharf has faced challenges amid a world of changing work culture and rising interest rates.

But today, Alastair Blackwell,chief executive officer at Barclays, said Canary Wharf is a “fantastic place to work”

He said: “After announcing our intention to exit 5 North Colonnade in 2021, I am pleased we have reached this agreement with CWG which delivers a long-term cost saving for the bank.

“Canary Wharf is a fantastic place to work and our 5-year lease extension at One Churchill Place is testament to that.”

John Mulqueen, chief investment officer at CWG, added that “Canary Wharf is a 15 minute city with access to great transport links, access to 16.5 acres of parks and a wide range of amenities and cafes, bars and restaurants.”

Read more:
Barclays to stay at iconic Canary Wharf until 2039 as WHF sees headquarter culture change

Artificial intelligence cannot be legally named as an inventor to secure patent rights, the UK supreme court has ruled.

In a judgment on Wednesday, Britain’s highest court concluded that “an inventor must be a person” in order to apply for patents under the current law.

The ruling comes after the technologist Dr Stephen Thaler took his long-running dispute with the Intellectual Property Office (IPO) to the country’s top court over its rejection of his attempt to list an AI he created as the inventor for two patents.

The US-based developer claims the AI machine named DABUS autonomously created a food or drink container and a light beacon and that he is entitled to rights over its inventions. However, the IPO concluded in December 2019 that the expert was unable to officially register DABUS as the inventor in patent applications because it was not a person.

The decision was upheld by the high court and the court of appeal in July 2020 and July 2021. After a hearing in March, a panel of five supreme court justices have unanimously dismissed Thaler’s case.

The DABUS dispute centred on how applications are made under the Patents Act 1977 legislation, and the judges were not asked to rule on whether the AI actually created its inventions.

Lord Kitchin, with whom Lords Hodge, Hamblen, Leggatt and Richards agreed, said the IPO “was right to decide that DABUS is not and was not an inventor of any new product or process described in the patent applications”.

He continued: “It is not a person, let alone a natural person and it did not devise any relevant invention. Accordingly, it is not and never was an inventor for the purposes of … the 1977 act.”

The judge said the IPO was entitled to find that Thaler’s applications should be taken as “withdrawn” under patent rules because “he failed to identify any person or persons whom he believed to be the inventor or inventors of the inventions described in the applications”.

The supreme court also rejected Thaler’s argument that he was entitled to apply for patents for DABUS inventions on the basis that he was the AI’s owner.

Kitchin said DABUS was “a machine with no legal personality” and that Dr Thaler “has no independent right to obtain a patent in respect of any such technical advance”.

Patents, which provide protective legal rights, are granted for inventions that must be new, inventive and capable of being made or used or a technical process or method of doing something, according to government guidance.

Thaler’s case reached the supreme court amid recent scrutiny of AI developments – such as OpenAI’s ChatGPT technology – including their potential impact on education, the spread of misinformation and the future jobs market.

His lawyers had argued at the March hearing that patent law did not “exclude” non-human inventors and contains no requirements over “the nature of the inventor”.

However, Stuart Baran, for the IPO, said in written arguments that patent law required “identifying the person or persons” believed to be an inventor.

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AI cannot be named as patent ‘inventor’, UK supreme court rules

Chancellor Jeremy Hunt is in Switzerland to sign a deal that makes it easier for UK and Swiss financial firms to deal with each other.

Trade in financial services between the UK and Switzerland is worth more £3bn.

The government is hoping that the Berne Financial Services Agreement will help that figure grow.

The deal means that Switzerland and the UK will recognise and accept each other’s regulations.

It goes further than the relationship that both the UK and the Swiss have with the European Union.

Mr Hunt insisted that the agreement was only made possible by the UK being outside the EU.

Negotiations have been under way since June 2020 when Prime Minister Rishi Sunak was chancellor.

The bosses of British finance firms have welcomed the fact that the deal is “dynamic”, which means that the relationship will evolve as regulation in both markets changes over time.

Switzerland is home to over $2 trillion in wealth controlled by some of the world’s richest people. It is also a major centre for insurance and re-insurance – which is how insurance companies insure themselves against abnormally large or catastrophic losses.

This is also a key strength of London which is home to Lloyd’s, which is the world’s largest insurance market.

It is understood that getting agreement from the insurance industries in both countries was the trickiest part of the deal.

It is the UK’s third largest non-EU trading partner after the US and China.

Finance chiefs in the UK hope that the Swiss deal will form a model for agreements with other major financial centres – with Singapore mentioned by several people as the next location.

London’s position as the pre-eminent European financial centre has been dented in recent years as trading in shares of European companies has moved to European exchanges including Paris and Amsterdam.

It has also seen a number of high profile UK based companies, including ARM Holdings, move their primary stock market listing to New York.

Meanwhile, Switzerland has seen the collapse of Credit Suisse, one of its biggest and oldest banks.

The signing will provide some cheer for both sides when Mr Hunt and his counterpart Karin Keller Sutter meet on Thursday.

Separate to this financial services agreement, the UK is also currently negotiating a deeper and wider free trade agreement with Switzerland.

Read more:
UK signs financial deal with Switzerland

The world’s biggest offshore wind farm is to be built in British waters after its developer said it planned to charge consumers higher prices for some of its electricity.

Orsted said it was pressing ahead with the £8 billion Hornsea Three development, which could power more than three million homes, after threatening to pull the plug on it this year because of soaring costs.

The Danish state-controlled energy group said it would ditch part of the contract it secured from the UK government last year to supply power from the project at a record low price to consumers. It now plans to seek a new contract at a higher price in respect of a quarter of the wind farm after the government confirmed that more generous contracts would be on offer next year.

Orsted said it had also worked with supply chain companies to renegotiate or tighten contracts to reduce risk from the project and had benefited from “helpful” tax breaks unveiled in the autumn statement.

Hornsea Three will comprise about 200 wind turbines about 75 miles off the coast of Norfolk, with a total capacity of up to 2.9 gigawatts, making it the world’s biggest single offshore wind farm. Orsted said it expected the project to start generating towards the the end of 2027 and that it could support up to 5,000 jobs during its construction. The site promises to make a significant contribution to the government’s goal of Britain having 50GW of offshore wind operational by 2030, up from about 14GW today.

Orsted is the world’s biggest offshore wind developer and it already operates the neighbouring Hornsea One and Hornsea Two wind farms, which successively have taken the title of being the world’s biggest.

Hornsea Three was one of five offshore wind projects that won contracts from the government via an auction last year, guaranteeing their revenues at a record low price to consumers of £37.35 per megawatt-hour in 2012 money.

The contract is indexed to inflation, but the industry says its costs have risen far more steeply amid supply chain chaos and soaring commodity costs since Russia’s invasion of Ukraine. In July another of the projects that secured a contract last year was scrapped by Vattenfall, its developer.

The government said last month that it would offer contracts at up to £73/MWh in 2012 money through next year’s auction. Orsted plans to use its contractual right to scrap the original contract in respect of a quarter of the wind farm’s capacity and to seek a new contract next year instead.

Duncan Clark, head of Orsted UK, said: “Despite an absolutely extraordinary sequence of events, the vast majority of that capacity is being delivered under that original record-breaking low-price contract. The rest of it will be delivered under a competitive price for the world we live in today.”

Orsted threatened in March to shelve Hornsea Three if tax breaks were not offered in the budget. Then it said it was disappointed with the three-year package of tax breaks that were unveiled. Permanent tax breaks were unveiled in the autumn statement that Clark described as “helpful”. However, he said the biggest factors enabling the project to proceed had been confidence in its ability to secure a higher-priced contract next year, after the government acknowledged that “the world has changed”, and progress in contract terms with its suppliers.

Clark said that “macroeconomic turbulence” had settled since earlier in the year. He described the go-ahead as a “vote of confidence in the UK market for offshore wind”.

Emma Pinchbeck, chief executive of Energy UK, the energy industry body, said: “This is very good news for the UK because Hornsea Three will not only deliver a major boost to our supply of clean domestic power but also will bring a host of benefits such as new jobs, opportunities for the supply chain and a lift to the local economy.”

Read more:
World’s biggest offshore wind farm to be built in British waters

Inflation has fallen faster than expected to its lowest level in over two years, dragged down by easing petrol and food prices, adding impetus to growing calls for the Bank of England to begin lowering interest rates next year.

Prices rose 3.9 per cent over the year to November, down from an increase of 4.6 per cent in October, according to the Office for National Statistics.

The fall was well below City analysts’ expectations of a decline to 4.3 per cent and means that inflation is now down to its lowest mark since October 2021.

Declining price growth in grocery, transport and leisure and recreational activities were the main factors that drove down the headline rate of inflation. Food inflation dropped to 9.2 per cent from 10.1 per cent, the ONS said.

Grant Fitzner, ONS chief economist, said: “Inflation eased again to its lowest annual rate for over two years, but prices remain substantially above what they were before the invasion of Ukraine.

“The biggest driver for this month’s fall was a decrease in fuel prices after an increase at the same time last year. Food prices also pulled down inflation, as they rose much more slowly than this time last year. There was also a price drop for a range of household goods and the cost of second-hand cars.”

November’s inflation figure was better than the 4.6 per cent expected by the Bank of England, signalling that price pressures have cooled faster than the central bank expected. Analysts expect that trend to continue, which would raise the chances of the Bank of England’s monetary policy committee discussing the possibility of lowering borrowing costs at their meetings early next year.

Last week the MPC elected to keep the UK base rate unchanged for the third meeting in a row at a 15-year high of 5.25 per cent. In the run-up to the meeting, financial markets had priced in a sharp reduction in borrowing costs next year of around one percentage point, sparked by the United States central bank, the Federal Reserve, signalling that it may loosen policy soon.

However, the MPC and Andrew Bailey, the Bank of England governor, pushed back against those bets, stressing that the UK base rate must remain in restrictive territory for an “extended period”.

Three members of the nine-strong MPC voted to increase the base rate by 0.25 percentage points, citing concerns about persistent wage growth and services inflation. Ben Broadbent, a deputy governor at the Bank, said this week that rates may need to stay elevated to curb salary increases.

The ONS said today that services inflation, which the Bank monitors closely, fell to 6.3 per cent, lower than the Bank’s 6.9 per cent projection for November. Core inflation, which removes volatile food and energy prices, eased to 5.1 per cent from 5.7 per cent.

Most analysts expect stagnant growth compounded by receding inflation will force the Bank into a loosening of financial conditions next year. However, robust pay growth and falling inflation would deliver a boost to living standards and spending, lifting economic growth.

Jeremy Hunt, the chancellor, said there was “still further to go” on tackling inflation.

Read more:
UK inflation rate falls to 3.9%

The maker of Warhammer 40,000, Games Workshop, has finalised a deal with Amazon to bring the characters and stories to the big screen

British actor Henry Cavill – best known for playing Superman – will be an executive producer and has signed up to appear in the project.

Warhammer simulates battles between armies of miniature painted models.

The deal gives Amazon the rights to hire talent, and to make film and TV projects.

“Now comes the fun part: working out all the creative details with our partners and getting the first script written and into production. What Warhammer 40,000 stories should we tell first? Should we kick off with a movie or a TV show? Both?!” Games Workshop said in statement.

Games Workshop has enjoyed continued success after the pandemic, which saw sales of its toy figurines surge. Shares in the company rose after the deal was confirmed.

The announcement comes a year after the Nottingham-based company first said it was in talks to team up with Amazon’s Prime Video service, also known for the series The Lord of the Rings: The Rings of Power, based on the fantasy novels of JRR Tolkien.

A team of screenwriters is currently being put together to bring the Warhammer universe to the screen, the company said on its community website.

The first Games Workshop store opened in Hammersmith in 1978 and began producing miniature wargaming models.

Over the decades Games Workshop has cultivated a fanbase of millions.

Collectors build large forces of miniature plastic gaming models, which can cost more than £100 each.

A miniature can be made up of hundreds of pieces which must be fitted together and then painted with colours such as “flesh” and “bone”.

This can be used to play out clashes on a “tabletop” battlefield at home or at events, although some fans never play and instead compete to show off their creative versions of the models.

Millions of people around the world play Warhammer, and the worldwide “tabletop” games sector that the fantasy game is part of is worth around £8.6bn, according to the consumer data firm Statista, with new entrants able to raise funds from enthusiasts through platforms such as Kickstarter.

As well as greenlighting the production of Warhammer 40,000 films and TV series, the deal gives Amazon the option to license the rights to other Warhammer franchises further down the line.

Games Workshop will spend 12 months working with Amazon to agree “creative guidelines” for the films and series.

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Amazon set to bring Warhammer 40,000 shows and movies to the big screen

Google has agreed to pay US$700m and to allow for greater competition in its Play app store, according to the terms of an antitrust settlement with US states and consumers disclosed in a San Francisco federal court.

Google was accused of overcharging consumers through unlawful restrictions on the distribution of apps on Android devices and unnecessary fees for in-app transactions. It did not admit wrongdoing.

The company will pay $630m into a settlement fund for consumers and $70m into a fund that will be used by states, according to the settlement, which still requires a judge’s final approval.

The settlement said eligible consumers will receive at least $2 and may get additional payments based on their spending on Google Play between 16 August 2016 and 30 September 2023.

All 50 states, the District of Columbia, Puerto Rico and the Virgin Islands, joined the settlement.

Lead plaintiff Utah and other states announced the settlement in September, but the terms were kept confidential ahead of Google’s related trial with “Fortnite” maker Epic Games. A California federal jury last week agreed with Epic that parts of Google’s app business were anticompetitive.

Wilson White, Google vice-president for government affairs and public policy said the settlement “builds on Android’s choice and flexibility, maintains strong security protections, and retains Google’s ability to compete with other [operating system] makers, and invest in the Android ecosystem for users and developers”.

The company said it was expanding the ability of app and game developers to provide consumers an alternative billing option for in-app purchases next to Play’s billing system. Google said it had piloted “choice billing” in the US for more than a year.

As part of the settlement, Google said it would simplify users’ ability to download apps directly from developers.

Lawyers for the states in their court filing said the settlement terms “will offer significant, meaningful, long-lasting relief for consumers throughout the country”.

The states’ attorneys said “no other US antitrust enforcer has yet been able to secure remedies of this magnitude from Google” or another major digital platform.

Google faces other lawsuits challenging its search and digital advertising practices. It has denied any wrongdoing in those cases

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Google agrees to pay $700m after antitrust settlement over app store competition

Apple has been forced to stop selling the Apple Watch in the US this week after a landmark lawsuit claimed the tech giant stole technology that monitors users’ vitals.

The move comes after an order in October from the International Trade Commission (ITC) that could bar Apple from importing its Apple Watches after finding the devices violate medical technology company Masimo’s patent rights.

The White House had 60 days to review the ITC order issued on October 26, meaning Apple could have continued selling the Series 9 and Ultra 2 versions of its watch through Christmas.

However, Apple said on Monday that it planned to suspend sales of the watches for online customers on Thursday and from its stores on Sunday. It said the move was to ensure that it complied with the ITC order.

Apple pledged to “take all measures” to resume sales of the Series 9 and Ultra 2 models in the US as soon as possible if the ITC’s ban was not overturned.

The long-running legal dispute between Masimo and Apple is a David v Goliath battle that involved the world’s richest corporation and a rival a fraction of its size.

According to the Los Angeles Times, Apple met with Masimo more than a decade ago and discussed its technology that allowed a user’s blood oxygen levels to be read.

Joe Kiani, chief executive of Masimo, reportedly believed the companies were set for a partnership or perhaps his business would be bought by Apple and its chief executive, Tim Cook.

Instead, Masimo alleged that Apple began to hire its top talent who quickly started patenting similar technologies that they had previously worked on.

While President Biden has the power to veto the ITC order, such interventions are rare.

“Maybe Apple’s board will ask Tim Cook, ‘Why didn’t you buy Masimo or license their technology in 2013? Did you even try to settle with Masimo before you took this step?’” Kiani told the Los Angeles Times. “That is a hope, but one that makes me feel better.”

Kiani believes he has already spent $60 million in legal fees battling Apple, but says he is willing to spend even more to protect his work.

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Apple banned from selling smartwatches in US over medical technology patent infringement

The European Union has formally announced it suspects X, previously known as Twitter, of breaching its rules in areas including countering illegal content and disinformation.

Digital commissioner Thierry Breton set out the alleged infringements in a post on the social media platform.

He said X, which is owned by Elon Musk, was also suspected of breaching its obligations on transparency.

X said it was “co-operating with the regulatory process”.

In a statement the firm said it was “important that this process remains free of political influence and follows the law”.

“X is focused on creating a safe and inclusive environment for all users on our platform, while protecting freedom of expression, and we will continue to work tirelessly towards this goal,” it added.

In October the EU said it was investigating X over the possible spread of terrorist and violent content, and hate speech, after Hamas’ attack on Israel.

X said then that it had removed hundreds of Hamas-affiliated accounts from the platform.

The investigation was the first under the EU’s new tech rules.

Under a piece of legislation introduced in August, the Digital Services Act (DSA), big tech firms operating in the EU have beefed up obligations to protect users.

Breaches can result in huge fines or services being suspended.

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EU takes action against Elon Musk’s X over disinformation

The boss of Ryanair, Michael O’Leary, is inching towards a potential €100m (£86m) bonus that would be among the largest in European corporate history, after the no-frills airline’s shares reached a record high.

Ryanair’s stock price rose to €18.99 by the end of last week, taking O’Leary closer to a threshold that could trigger the enormous payout.

Shares in the airline must either reach €21 and stay there for 28 days, or the company must report annual post-tax profit of €2.2bn, for O’Leary to collect the bonus, which was agreed in 2019.

If the stock hits the watermark, O’Leary would be given share options, the right to buy equity at a discounted price, according to the Financial Times, which first reported the possible bonus.

O’Leary would be able to buy 10m shares at €11.12 each, meaning he could pick up $210m worth of stock for $111.2m, scoring an instant paper profit of €98.8m.

The share price increase required to yield the bonus would mean the Dublin-based airline’s value had more than doubled since August 2019, taking the company’s stock market value to nearly €24bn. It is already the second most valuable airline in the world by stock market capitalisation, behind the US carrier Delta Air Lines.

O’Leary, who took over at Ryanair in 1994, has presided over the carrier’s meteoric rise to become Europe’s largest airline. During that time, he has amassed 3.9% of the company, a stake that has a market value of €907m.

The prospective new share bonus is the result of an incentive scheme agreed in 2019 that was originally due to expire in 2024 but was extended until 2028 in December last year. At that time, the airline’s stock price was below €13.

Financial analysts predict an average share price target of €24 of the next 12 months, according to data from Bloomberg, which would easily put O’Leary above the threshold to collect the bonus.

He is less likely to achieve it by virtue of the company’s profits, which Ryanair has predicted will hit €2.05bn at the highest for the year to the end of March, compared with the bonus target of €2.2bn.

Ryanair has been able to cash in on the resurgence of air travel and boom in average fares after the pandemic. It has said it plans to double passenger numbers over the next 10 years.

“As long as we don’t do something stupid, which is a daily challenge in this industry, we will continue to wipe the floor with every other airline in Europe,” O’Leary told the Financial Times earlier this year.

The airline said in November that it would hand shareholders regular payouts for the first time after soaring air fares put Ryanair on track to make record profits.

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Ryanair boss Michael O’Leary in line for €100m after shares reach high

The pay gap at the UK’s largest companies, which measures the difference in earnings between pay packets for chief executives and average employees, rose last year despite upward pressure on wages across the economy.

Data from the High Pay Centre, a think tank focused on pay and employment rights, found that the average pay differential at a FTSE 350 firm between chief executive and median employee was 57 to 1 in 2022, up from the 56 to 1 recorded in 2021.

The pay differential at the largest FTSE 100 companies was 80 to 1, according to the figures compiled by the think tank, which is funded by the asset manager Abrdn’s Financial Fairness Trust.

The figures show little progress in reducing the gap between the top-earning executives and their workers after some narrowing was reported during the pandemic.

Just over a fifth, or 21 per cent, of FTSE 100 bosses earned 100 times more than their average employee, according to the figures.

The largest pay differential in the FTSE 350 was at Safestore, a storage firm, where the chief executive was awarded more than 300 times the average worker’s pay. Darktrace, a cybersecurity company, and CRH, a construction supplies firm, had the second and third largest pay gaps respectively.

Sainsbury’s, Watches of Switzerland, Tesco and B&M were all in the top ten for the widest pay gaps, as retailers have “low rates of pay across their workforce, combined with high levels of chief executive pay common to all large companies”, the High Pay Centre said.

Tullow Oil, Jupiter Asset Management and Kainos, a software company, reported the smallest pay gap of around eight to nine times the average employee’s pay.

JD Sports Fashion and the pub owner Mitchells & Butlers were still the listed companies with the lowest-paid employees, measured by the lowest quartile of its workforce.

Luke Hildyard, director of the High Pay Centre, said the UK’s largest listed companies needed to create a “fairer, more equal, more inclusive economy where companies create lots of well-paid jobs for all their workers, rather than a handful of obscenely paid roles for those at the top”.

He said: “The pay ratio trends highlight a moment of solidarity during the pandemic when CEO-to-employee pay gaps narrowed, but that seems to have been lost as gaps have widened to pre-pandemic levels over the subsequent two years.”

The figures come as Legal & General Investment Management said it would not set a ceiling on executive pay deals after concern in parts of the City that the UK’s largest firms cannot match the bumper pay packages offered by US rivals.

British workers have recorded the highest levels of nominal pay growth in over 20 years in 2023, but the real value of earnings is more modest as inflation erodes the impact of rising pay.

Average weekly earnings growth in the private sector, excluding bonuses, slowed to a rate of 7.3 per cent, according to the most recent official data, the weakest pace in nearly two years.

Paul Nowak, TUC general secretary, said top companies were “feather-bedding those at the top at the expense of the wider workforce”.

“At a time when food and energy bills are sky-high there is simply no justification for such huge pay inequality,” he said. “Corporate excess is bad for businesses and bad for Britain, often encouraging short-term risk-taking and greed over longer-term success.”

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Pay gap at UK’s largest companies widens

The number of job openings in the UK has dipped below 1 million for the first time since May 2021, signalling that the labour market is cooling off as higher interest rates take their toll on the economy.

Vacancies dropped to 998,562 last month, down 2.7 per cent from the 1.02 million job postings in October, according to Adzuna, the job search engine. On an annual basis, open roles were down by 8.6 per cent.

The survey underscores that demand for workers has fallen in response to pessimism about the health of the UK economy and tighter financial conditions. Depressed consumer spending has reduced the need for companies to expand staffing levels, prompting them to rein in hiring activity.

Growth unexpectedly turned negative at -0.3 per cent in October and gross domestic product (GDP) is likely to stall in the final quarter of this year, according to the Bank of England.

Britain’s jobs market this year has confused economists, who had anticipated a sharp increase in unemployment caused by the Bank of England raising interest rates aggressively to a 15-year high of 5.25 per cent.

However, joblessness has been broadly contained, rising slightly to 4.2 per cent. According to official data from the Office for National Statistics, vacancies have contracted for 17 months in a row but are still far above their pre-pandemic level of just under 1 million.

New projections from KPMG indicated that the UK’s unemployment rate would climb to 4.9 per cent by 2025 and the consultancy warned that broader economic growth was “vulnerable to shocks” in the coming years. The forecast expects the wider economy to reach growth of 0.5 per cent this year and in 2024.

Adzuna’s survey showed that the market has deteriorated rapidly in the second half of this year, suggesting that demand for workers will be softer in 2024 and unemployment will creep up.

In the space of six months, vacancies fell to their lowest level this year in November from a high point in June of 1.05 million. For most of this year, workers have found it relatively easy to find a new job with a better salary, due to strong demand for staff.

Falling vacancies and an increase in volume of available candidates, driven by a rise in redundancies, have raised competition between workers. The number of job seekers per vacancy hit 1.56 in November, up from a low of 1.45 in June.

Andrew Hunter, co-founder of Adzuna, said: “Competition is growing across sectors, making it harder for UK job hunters to find the right roles for them, particularly as sectors tighten their belts.”

Adzuna said that advertised salaries rose for the first time since June, up 0.74 per cent to an average of £37,221 and down from their 2023 peak of £37,806. London was the only area of the UK where proposed salaries fell, down 2 per cent to an average of £42,928.

Lawyers command the highest potential pay, with average advertised salaries in the sector at £54,633, followed by IT workers, who are offered an average of £51,284. Demand for HR and recruitment staff is severely depressed, with vacancies in the sector down 42.5 per cent over the past year.

Just 50 per cent of open roles had their salaries included in the job advertisement in November.

Hunter said: “Salaries appear to be rising again — yet with one of the worst years on record for salary transparency, it’s still difficult for potential recruits to understand compensation for the roles they’re applying for.”

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UK Job vacancies fall below one million

Evri has admitted that it has “earned” its poor reputation for customer service, but claims it is turning things around.

The parcel delivery firm was forced to apologise last Christmas after people complained of delays or not receiving their packages at all.

Evri is also consistently ranked near or at the bottom of customer satisfaction league tables.

But the firm said it had invested £40m in improving services this Christmas.

Evri’s chief customer officer, Chris Ashworth, said: “We’ve obviously earned that reputation and we’ve got to work hard to turn it around.”

The company expects to deliver around 90 million parcels over this year’s festive period, up from 84 million last year when it was beset by problems.

“Last year was an unprecedented situation,” said Mr Ashworth. “The Royal Mail strike was announced eight weeks before Christmas.

“It takes 12 to 18 months meticulous planning to step-up an operation like this and double in time for Christmas. Mistakes were made.”

Since then, he said that Evri had taken on 6,500 extra staff with the majority concentrating on the final mile of delivering parcels.

Mr Ashworth also said the company had doubled its UK-based customer service representatives and invested in phone lines and chatbots which he said run “24/7”.

However, one viewer got in touch with the BBC to say it was still impossible to speak to someone at Evri to resolve their problems while others complained of a lack of consistency across the country.

“I wouldn’t recognise that, no,” said Mr Ashworth, though he added: “Having said that, we aren’t perfect and we do get the odd thing wrong but consistent localised problems are not something we recognise.

“I’d urge any customers that are seeing those things to contact us – we’re now very easy to contact.”

Over the past three years, Citizens Advice has drawn up a league table of parcel delivery firms, where it surveys customers on issues such as customer service and delivery problems.

While none of the companies such as Royal Mail or Amazon scored particularly highly, Evri was bottom in 2021 and 2022. For 2023, it was ranked joint bottom with Yodel.

Last week, Ofcom, the communications regulator, published its latest Post Monitoring Report which found that Evri was ranked the lowest in terms of customer satisfaction.

In surveys conducted in January and July, 46% of those questioned said they were dissatisfied with being able to make contact with Evri while 26% said they were satisfied.

But Ofcom noted that since then “Evri recently introduced a phone service, in October 2023, which should make it easier for parcel recipients to contact it in future”.

Mr Ashworth said: “It is no longer difficult to get hold of us.

“We do use automation and we do that because when you look at an operation of this scale we don’t want to leave the customer hanging on. A customer can leave a message, we will investigate and we will get back to that customer.”

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Parcel firm Evri admits it deserves poor reputation

The Information Commissioner’s Office (ICO) has issued Bank of Ireland UK with a reprimand for mistakes made on more than 3,000 customers’ credit profiles.

Bank of Ireland UK sent incorrect outstanding balances on 3,284 customers’ loan accounts to credit reference agencies, organisations that help lenders decide whether to approve financial products. This inaccurate data could have potentially led to these customers being unfairly refused credit for mortgages, credit cards or loans, or granted too much credit on products they were potentially unable to afford.

The investigation found that, due to the complex nature and different factors contributing to credit scoring, it would be impossible to determine the actual damage caused to each customer. However, the ICO concluded it was reasonable to assume that the inaccurate data sent by Bank of Ireland UK to credit reference agencies would have had a negative impact on the customers affected.

Reported to the ICO in March 2021, Bank of Ireland UK was found to be in breach of data protection law by failing to ensure personal data was accurate, article 5(1)(d) of GDPR.

Natasha Longson, ICO Head of Investigations said: “Mistakes made by financial institutions can have far-reaching consequences on people’s everyday lives. Some of the customers affected could have been refused mortgages, loans or credit cards, as well as being unable to get mobile phone contracts, insurance policies or sign up with utility companies. The mistake made by Bank of Ireland UK could have potentially caused misery for thousands of people.

“We do however recognise the steps the bank has taken to correct their error, supporting affected customers and reviewing its data-management processes. Therefore, we believe a reprimand is the best, fairest outcome, and that lessons have been learnt to avoid mistakes like these in the future.”

Steps recommended in the reprimand to ensure Bank of Ireland UK’s compliance with data protection include continuing to support affected customers, ensuring that robust processes are in place, and are reviewed regularly, and that learnings are shared across the organisation to prevent a repeat of the issue.

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Bank of Ireland UK reprimanded for inaccurate data on customers’ accounts

A call has been made for hundreds of Post Office staff wrongly accused of theft and false accounting to all have their convictions overturned.

More than 700 Post Office managers were convicted when faulty accounting software made it look as though money was missing from their sites.

A board overseeing compensation said until all convictions were quashed, “we cannot put the scandal behind us”.

The Ministry of Justice said it would respond in due course.

The Horizon scandal – named after the faulty accounting software – constitutes Britain’s most widespread miscarriage of justice.

The convictions of hundreds of postmasters and postmistresses for false accounting and theft between 2000 and 2014 resulted in some people going to prison.

Many were financially ruined after being prosecuted and some of those wrongly accused have since died.

In September, the government said Post Office staff who have had wrongful convictions for theft and false accounting overturned would be offered £600,000 each in compensation.

But so far, only 93 convictions have been overturned, according to the Horizon Compensation Advisory Board, an independent group overseeing compensation related to the scandal.

Chris Hodges, chair of the board, said they believed more than 900 postmasters had been prosecuted in relation to the faulty Horizon software.

“Many victims remain traumatised and ostracised by their communities,” he said in a letter to the Lord Chancellor Alex Chalk.

He said while individuals could apply to have their convictions overturned, the small number of cases meant the “current approach is not working”.

Reasons for this, Prof Hodges added, included an unwillingness of people to appeal due to a “deep distrust of authority”, evidence being lost or destroyed, and issues with compensation if a Post Office manager is not granted a retrial.

“The convictions are unsafe not only because they relied on the Horizon computer evidence, but also because of egregious systemic Post Office behaviour in interviews and pursuing prosecutions,” he said.

“This led to guilty pleas and false confessions, driven by legal advice to victims to minimise sentences, and by the psychological pressure of dealing with an institution systematically disregarding the truth and fairness.”

Prof Hodges said the “only viable approach” was for “all 900+ Post Office-driven convictions from the Horizon period” to be overturned.

“A small minority of these people were doubtless genuinely guilty of something. However, we believe it would be worth acquitting a few guilty people (who have already been punished) in order to deliver justice to the majority – which would not otherwise happen,” he said.

A Post Office spokesperson said: “We strongly encourage people who believe they were wrongly convicted, for any reason, to consider an appeal.”

Read more:
Call for all Post Office convictions to be overturned

The Government has invested over £530 million in boosting broadband connectivity this year, supporting over 330,000 homes and businesses in rural areas.

The latest £33 million investment will deliver gigabit capable broadband to over 17,000 homes across rural Derbyshire as part of the Government’s ongoing connectivity investment scheme.

The latest project means that over 79 per cent of UK homes and businesses have access to gigabit capable broadband, with plans to expand to 85 per cent by 2025.

This year, contracts have been awarded to support businesses and homes across Cambridgeshire, Hampshire, New Forest, Norfolk, Northeast Staffordshire, Oxfordshire, Shropshire and Suffolk, totalling over £530 million in investment.

Sachin Agrawal, UK Managing Director at Zoho Corporation, said: “Connectivity investment in rural areas is crucial to empower regional businesses across the UK. Businesses and their locations are key to unlocking local economic growth and distributing wealth throughout the country more effectively, and internet connectivity plays a vital role here.“

“Technology plays a central part in creating a seamless experience for employees, whether they are at home or in the office. Tools that both enable real-time communication and collaboration that allow team members to simultaneously work efficiently on tasks, keep staff continuously connected, regardless of location. Unified systems that deliver these tools as well as bring data together and make it accessible to all relevant employees, can contribute significantly to staff productivity and motivation, which translates to business growth. All of this is not possible without reliable connectivity.”

“By improving connectivity in regions across the UK, businesses also have more options when it comes to office locations, given the freedom to reduce overheads and move away from busy urban centres. This not only provides cost savings, but improves flexibility for employees who can feel the benefits of a more affordable lifestyle and be closer to their families.”

Further Government work with broadband suppliers is expected to deliver gigabit capable broadband nationwide by 2030.

Secretary of State for Science, Innovation and Technology, Michelle Donelan, said: “Working hand in glove with industry, the success of our high-speed broadband rollout means more homes have faster, clearer connectivity than ever before.”

“Whether they are streaming classic Christmas movies or video calling loved ones across the world, this year thousands more families will not have to face feuds over festive films or frustrating buffering, leaving more time to spend enjoying the company of their nearest and dearest.”

Through earlier contracts, thousands of homes and businesses in areas including Stavely in Cumbria, Barnard Castle in Teesdale and Bishop’s Caundle in North Dorset have already benefited from upgraded gigabit connection.

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Government injects £530m in connectivity to support over 330,000 homes and businesses this year

Millions of people are borrowing to pay essential bills at Christmas, charities warn, with energy debts a key concern as prices are set to rise again.

Citizens Advice said it was seeing more people falling behind on energy bills as winter began, owing an average of £1,841 to their supplier.

The government said its cost-of-living payments were easing the burden.

Charities say some families face paying off loans, adding to the financial strain as they cut back on basics.

The Joseph Rowntree Foundation, which campaigns on social issues, said a third of those it surveyed said they still had loans to pay off, which had originally been taken out to cover the costs of food, housing costs, energy bills or council tax.

Those debts can grow as interest is added, but there are warnings that people are still borrowing to make ends meet.

Debt charity StepChange estimated that 2.6 million UK adults used credit to pay for essential household bills in the last three months. Nearly half of those with existing debt faced difficulty keeping up with household bills and credit commitments.

New figures from Ofgem, the energy industry watchdog, revealed that the amount of debt and arrears faced by gas and electricity customers swelled to £2.9bn between July and September.

That is up from £1.9bn in the same three months last year and 13% higher than the previous quarter between April and June.

Households in arrears – where a customer owes a supplier but has not worked out a payment plan – make up the vast majority of the overall figure, at more than £2bn.

Customers in debt, who have a re-payment agreement with their energy company, totalled £830m.

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Millions borrowing to pay essential bills at Christmas, charities warn

The boss of Currys has accused the government of failing to understand or care about UK retailers by pushing through a “big hike” in the UK’s minimum wage.

Alex Baldock’s comments come weeks after the chancellor, Jeremy Hunt, announced plans to increase the legal minimum wage for the UK’s lowest paid workers to £11.44 an hour, representing a rise of almost 10%, from April 2024. The move will force employers to pay full-time workers about £1,800 more per year.

Nevertheless, the boss of the electrical retailer said this would put significant pressure on high street retailers like Currys, which are also preparing for a surge in business rates – the property-based tax levied by local councils from businesses such as retailers, pubs and offices.

“We believe we are paying our colleagues well and we certainly intend to continue to,” Baldock told reporters on Thursday morning. “That said, for the retail industry as a whole, having a big hike in the ‘national living wage’ at the same time as an expected half a billion pound increase in the rates bill just shows how little the government appears to understand or care about this industry.

“There are 3m jobs at stake in UK retail, and loading more costs on to an already overburdened sector is irresponsible, and we call for a change of heart on it.”

High street shops are preparing for a collective £1.95bn inflation-linked increase in local taxes next year. Hunt froze business rates last year for companies in retail, leisure and hospitality, and granted a 75% discount worth up to £110,000 per business. Those discounts are set to expire in March 2024.

Baldock’s criticism came as Currys reported a 4% drop in like-for-like sales over the six months to October, as the cost of living crisis left consumer spending subdued.

The chief executive said there were a mix of factors at play. “On the one hand, the consumer is hard pressed and confidence is pretty bumpy. Interest rates have been rising … and consumers are cautious about their spending. But on the other hand, real wages have continued to climb, employment has stayed high, people have retained savings and customers are treating themselves.”

He said consumers were more likely to buy products on credit offered by the company, which allowed consumers to spread the cost of their purchases over a number of months.

But Baldock stressed that the company was being responsible with its lending, and wanted to “stay a mile away from any reputational damage that comes with lending money to people who can’t afford to pay it back”.

Read more:
Currys boss says government does not ‘care’ about retail

Former BP boss Bernard Looney will forfeit up to £32.4m after the oil giant found he committed “serious misconduct” in failing to disclose relationships with colleagues.

Mr Looney is to be dismissed without notice and will not receive further salary or benefits, the oil giant said.

He resigned in September after admitting not being “fully transparent” about his past personal relationships.

The board said they had been “knowingly misled” by Mr Looney.

On Wednesday, the firm said Mr Looney had given “inaccurate and incomplete assurances” as part of an investigation into the relationships in 2022.

Mr Looney said in a statement that he was “disappointed with the way this situation has been handled”.

His dismissal means he will get no further salary, pension allowance or benefits, no annual bonus, and lose out on nearly £25m in share awards.

It is understood that Mr Looney’s decision to resign meant his long-term performance share awards lapsed along with his annual bonus for 2023, which represented the majority – 87% – of the £32.4m package. The board also decided to halt other payments and bonuses.

BP first launched a review of Mr Looney’s relationships with colleagues following an anonymous tip-off in 2022.

At the time, the company said Mr Looney disclosed “a small number of historical relationships with colleagues prior to becoming CEO” and it found no breach of company conduct.

Mr Looney gave assurances then about disclosing the past relationships, as well as his future behaviour.

But in September the board said it had received similar allegations “recently”, prompting another review.

Read more:
Ex-BP boss Looney to lose £32m after ‘serious misconduct’

Etsy is cutting about 225 jobs, or 11% of its workforce, as part of a plan to bring down its costs.

As part of the move several executives will leave the online marketplace, including its chief marketing officer.

Chief executive Josh Silverman told staff the cuts were needed as sales had been “essentially flat” for two years.

He acknowledged the “unfortunate” timing of the cuts, during the holiday season, adding that laid-off staff would be paid until at least 2 January.

The job cuts are part of a strategy to make Etsy a “more focused, agile company”, Mr Silverman said in post on the firm’s website.

The lay-offs will cost the company as much as $30m (£23.7m) for severance payments, employee benefits and related costs, it said in an announcement to investors.

Following the job cuts, which are expected to be completed in the first three months of next year, Etsy’s core marketplace team will employ around 1,770 people.

In August, Etsy said it would change its policy after sellers complained of money being withheld.

The U-turn came after it was reported that some sellers had 75% of their money frozen for 45 days.

Etsy said it was “substantially decreasing” the amount of money it would put on hold but did not state the new rate or time frame.

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Online marketplace Etsy lays off 11% of staff to cut costs Published