Arrests made in crackdown on finfluencers

BBC Business • June 06, 2025 • Business

The Financial Conduct Authority (FCA) has led a global effort to tackle the issue of financial influencers, known as finfluencers, giving unauthorized financial advice online. This operation resulted in three arrests in the UK and the removal of hundreds of related posts and websites.

Key Facts:

• The FCA is taking down social media content and websites run by unauthorized financial influencers.
• Three people were arrested in the UK as part of this international crackdown.
• Finfluencers sometimes offer financial advice without proper authorization, often blending it with lifestyle promotion.
• The FCA issued 650 requests to delete online content and took down 50 websites in the UK.
• Seven cease and desist letters were sent, and four influencers were invited for interviews by the FCA.
• The FCA has no power to force social media platforms to comply with takedown requests but urges them to act quickly.
• The UK Treasury Committee asked Meta about delayed responses to FCA takedown requests.
• The FCA is considering allowing retail investors to invest in crypto exchange traded notes, lifting a ban in place since 2021.

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BBC Business

Charity supports one in 16 babies across the county

BBC Business • June 06, 2025 • Business

Baby Basics, a charity in Wollaston, Northamptonshire, is supporting one in 16 newborns in the area by providing essential items like nappies and clothes. The charity is holding its first sale of donated goods to raise funds because of an increase in families needing help, partly due to the rising cost of living.

Key Facts:

• Baby Basics supports one in 16 newborns in Northamptonshire.
• The charity gives out starter packs with essential baby items.
• There has been a 51% increase in referrals to the charity over the last two years.
• The rise in referrals is partly due to the increased cost of living and reduced benefits.
• Many of the families needing help have two working parents.
• Baby Basics is holding a sale of donated items for the first time to raise money.
• Some donated items can't be given out as they may not be safe for newborns or are for older babies.
• The charity expects to help around 500 babies this year.

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BBC Business

Lululemon shares plunge as Trump tariffs bite

BBC Business • June 06, 2025 • Business

Lululemon's stock dropped over 20% after the company reduced its profit forecast for the year. The company cited tariffs and concerns about the US economy as reasons for reduced sales and plans to raise some prices. Other companies, like Adidas and Skechers, also highlighted similar challenges due to US tariffs and economic uncertainty.

Key Facts:

• Lululemon's shares fell by more than 20% after lowering its profit expectations for the year.
• The company faced lower store visits in the Americas, blaming economic worries and less consumer spending.
• Lululemon plans to raise prices slightly on some products and cut costs.
• Last year, 40% of Lululemon's products were made in Vietnam, and 28% of its materials came from China.
• Clothing and footwear companies are struggling with tariffs because many goods are made in Asia.
• Adidas warned that tariffs, imposed by the Trump administration, would raise US product prices.
• Skechers withdrew its annual financial forecast because of economic uncertainty.
• Nike announced price increases for some US products, starting in June, but did not specifically blame tariffs.

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BBC Business

Should you be eating food products with fewer ingredients?

BBC Business • June 06, 2025 • Business

MaryLou Costa reports on a growing trend where food companies are making products with fewer ingredients, aiming to meet the needs of people with food allergies and those concerned about ultra-processed foods. This movement is partly inspired by increased awareness of ultra-processed foods, with brands responding by offering simpler, less-processed options.

Key Facts:

• Kerry Clayton, who deals with multiple food allergies, finds shopping and cooking a challenge.
• M&S launched a range with products containing six or fewer ingredients, appealing to people like Clayton despite higher costs.
• Increased consumer interest in products with fewer ingredients has been noted over the past year.
• Matthew Hopkins of IND!E observed a 40% rise in retailer interest in low-ingredient products.
• The plant-based brand THIS has introduced a new range focusing on natural ingredients.
• Concerns exist about the assumption that all ultra-processed foods are unhealthy.
• Nutritionist Dr. Laura Wyness stresses the need for nutrient-dense foods and the importance of fortified products.
• The term "ultra-processed food" is debated for its clarity in indicating food healthiness.

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BBC Business

'Rental costs doubled in our 10-month absence'

BBC Business • June 05, 2025 • Business

A family returning to Guernsey after living in Australia found that rental prices had doubled during their 10-month absence. They struggled to find a suitable rental home within their budget, leading them to buy a house that needed fixing. They managed this by working extra hours and making financial sacrifices.

Key Facts:

• Tom Pinsard and his family returned to Guernsey from Australia in June 2023 after his wife was in a car accident.
• The family noticed rental prices had doubled in under a year, from £1,300 to £2,600 per month for a two-bedroom home.
• Their initial rental home upon return was not livable, making it hard to find another affordable place.
• According to a Guernsey government report, average local rental prices rose to £2,068 per month by early 2025.
• This increase is 1.5% more than the last quarter, 8.2% more than a year prior, and 51.7% more over five years.
• The family bought a house that needed repairs by working extra hours; Mrs. Pinsard took on extra hospital shifts, and Mr. Pinsard ran a side business.
• They expressed that balancing extra work with family time was challenging.

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BBC Business

Europe cuts interest rates as Trump's tariffs loom

BBC Business • June 05, 2025 • Business

The European Central Bank (ECB) reduced its main interest rate from 2.25% to 2% due to economic uncertainties, especially from trade policies like tariffs imposed by the US. While the ECB aims to boost spending and economic resilience, it acknowledges ongoing concerns about trade impacts. In response to US tariffs on European goods, the EU has created its own list of tariffs on US imports.

Key Facts:

• The ECB cut its main interest rate to 2%.
• This is the eighth time the ECB has reduced the rate in just over a year.
• The reduction is in response to economic uncertainty from US trade tariffs.
• US President Trump increased tariffs on EU steel and aluminum to 50%.
• Trump paused tariffs on other EU goods until 9 July while discussions continue.
• The EU has prepared tariffs on €21 billion of US goods in response.
• ECB President Christine Lagarde noted higher household incomes could strengthen the economy.
• Inflation in the eurozone dropped below the ECB’s 2% target to 1.9% in April.
• The ECB expects the economy to improve in the medium-term with spending on defense and infrastructure.
• US economic indicators show possible slowing growth and employment concerns amidst tariff tensions.

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BBC Business

Car loan scandal payouts row - what's it about?

BBC Business • June 05, 2025 • Business

Millions of car buyers could get compensation if they were sold finance deals with hidden costs. Investigations focus on whether customers were charged unfairly high interest rates because car dealers got extra payments based on those rates. The Supreme Court will hear a case that could determine how wide the compensation might go.

Key Facts:

• Many new and used cars are bought using finance agreements where the buyer makes payments over time.
• The Financial Conduct Authority (FCA) banned certain deals in 2021 where dealers earned more money by charging higher interest rates.
• The FCA is now deciding if people who had these deals before 2021 should get money back.
• If approved, a central compensation scheme could help affected consumers without going to court.
• A Court of Appeal decision says it is illegal for dealers to get commission without telling the buyer, widening the potential scope for compensation.
• Car dealers and lenders might owe billions in total compensation.
• Lenders have already set aside billions of pounds for potential payouts.
• The exact amount any individual might receive depends on their specific overpayment and additional interest.

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BBC Business

UK inflation number too high after data blunder

BBC Business • June 05, 2025 • Business

The UK's statistics agency, the Office for National Statistics (ONS), reported that the country's inflation rate for April was higher than it should have been due to incorrect data on road tax. The correct inflation rate should have been 3.4% instead of the 3.5% initially reported. The ONS decided not to change the reported figure but plans to improve how it checks data quality from external sources.

Key Facts:

• The ONS discovered an error in the data regarding road tax, causing a slight overstatement of inflation.
• The original reported inflation rate for April was 3.5%, but it should have been 3.4%.
• The ONS will not revise the April inflation figure as per its policy only to revise in exceptional situations.
• The agency plans to review its methods for ensuring data quality from other sources.
• Both Consumer Prices Index (CPI) and Retail Prices Index (RPI) figures were 0.1 percentage points too high.
• There have been concerns about the overall quality of data provided by the ONS.
• These concerns affect decision-making for the government and businesses.
• The Office for Statistics Regulation has called for better methods to ensure good data quality and reduce bias.

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BBC Business

Boeing agrees $1.1bn deal over fatal 737 Max crashes

BBC Business • June 05, 2025 • Business

Boeing agreed to pay $1.1 billion to settle with the U.S. Justice Department over two crashes involving its 737 Max jets in 2018 and 2019 that resulted in 346 deaths. This agreement includes payments to victims' families and funds to improve the company's safety measures, allowing Boeing to avoid a criminal trial if approved by a federal judge.

Key Facts:

• Boeing struck a deal with the U.S. Justice Department related to the 737 Max crashes.
• The crashes happened in October 2018 and March 2019, causing 346 deaths.
• Boeing agreed to pay $1.1 billion to avoid prosecution.
• Out of this amount, $444.5 million will go to the families of the crash victims.
• Boeing will allocate $455 million to improve safety and compliance programs.
• The company will pay a criminal penalty of $487.2 million, with half already paid in 2021.
• If a federal judge approves the deal, Boeing will avoid a criminal fraud trial.
• Both crashes were linked to faulty flight control systems in the aircraft.

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BBC Business

Northumbrian Water to pay £15.7m over failings

BBC Business • June 04, 2025 • Business

Northumbrian Water will pay £15.7 million due to failures in maintaining its water and sewage systems, leading to too many spills from storm overflows. This money will go to local environmental projects and improvements, and customers won't see higher bills from this payment.

Key Facts:

• Northumbrian Water is paying £15.7 million because it didn't maintain its sewage and water systems properly.
• This payment is part of an agreement with Ofwat, the regulator for water companies in the UK.
• The money will be used for environmental projects and to improve water infrastructure in the area.
• Customers will not have to pay higher bills to cover this payment.
• The company's failures led to too many spills from storm overflows.
• Ofwat said this agreement was better than a direct fine, as it benefits local improvements.
• Northumbrian Water's shareholders are funding this payment, not its customers.
• The company previously announced plans to raise its average water bills by around 21% over the next five years.

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BBC Business

Scammers stole £47m from HMRC in phishing attack

BBC Business • June 04, 2025 • Business

Scammers took £47 million from the online accounts of 100,000 people by pretending to be taxpayers, according to HMRC. The tax authority is reassuring affected individuals that their money is safe, and steps have been taken to secure their accounts. A criminal investigation is ongoing, and those responsible have been arrested.

Key Facts:

• Scammers stole £47 million from 100,000 online accounts by posing as taxpayers.
• HMRC confirmed no customers lost money, and accounts are now secured.
• The theft involved phishing, where criminals gathered personal information to access accounts.
• This incident is not considered a typical cyber or hacking attack.
• Some criminals set up fake accounts using stolen information.
• HMRC faced criticism for not informing the committee about the scam earlier.
• A criminal investigation has been conducted, and arrests were made.
• HMRC plans to improve its IT systems to prevent future scams.

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BBC Business

Winter fuel payment U-turn in place this year, says chancellor

BBC Business • June 04, 2025 • Business

The UK government plans to change the winter fuel payment rules to allow more people to receive it this year. Although more people will qualify for the payment, specific details about who will be eligible have not been provided yet.

Key Facts:

• The winter fuel payment is intended to help with energy bills during cold months.
• Payments can be up to £300 and go to certain pensioners.
• Last year, only pensioners on pension credit received the payment.
• The policy change may allow more pensioners to qualify, but details are not yet clear.
• Prime Minister Keir Starmer and Chancellor Rachel Reeves have acknowledged the need for updated eligibility criteria.
• The government aims to clarify who can receive payments as soon as possible.
• Changes might be announced just before payments are typically made in November or December.
• Previous plans only allowed fewer pensioners to receive the payment, which was criticized by charities and policymakers.

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BBC Business

Food bank manager hits out at two-child benefit cap

BBC Business • June 04, 2025 • Business

A food bank manager in Worcester is speaking out against the UK's two-child benefit cap. He says that many families in the area are struggling to afford basic needs. Eleven charities have asked the government to end this policy, arguing it has worsened child poverty.

Key Facts:

• Graham Lucas is the manager of Worcester Foodbank.
• He criticizes the two-child benefit cap, which limits financial support for families with more than two children.
• Eleven charities, including the Trussell Trust, have written to the government about this cap.
• The charities claim the cap has increased child poverty, affecting 37,000 children.
• The Department of Work and Pensions plans to announce its decision on the cap in the autumn.
• Rising food costs and the cost-of-living crisis have increased demand at the food bank.
• Approximately 40% of those receiving food aid in Worcester are children.

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BBC Business

Spending Review: When is it and what might Rachel Reeves announce?

BBC Business • June 04, 2025 • Business

Rachel Reeves, the Chancellor, will announce the UK Spending Review on June 11. The review will lay out how the government plans to allocate funds across various departments for the next few years, including money for the NHS and public services. The UK faces budget challenges, with rising borrowing costs and limited flexibility to adjust spending without significant changes.

Key Facts:

• Rachel Reeves will deliver the UK Spending Review on June 11.
• The review will set budget plans for the next three to four years.
• There are two types of spending: day-to-day costs (resource spending) and big projects (capital spending).
• Government borrowing increased to £20.2 billion in April, higher than expected.
• In April, tax revenue rose due to higher National Insurance Contributions.
• Government spending has also increased due to pensions, benefits, and pay rises.
• The government aims to pay for daily spending with tax revenue and reduce debt by 2029-30.
• A small budget surplus is forecasted, but it is vulnerable to changes.
• UK economy grew by 0.7% from January to March, slightly better than expected.

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BBC Business

Simon Jack: Tariff relief for UK but new clock ticking on US deal

BBC Business • June 04, 2025 • Business

The United Kingdom has been temporarily exempted from a U.S. tariff increase on imported steel, avoiding a jump from 25% to 50%. However, if a deal is not finalized by July 9, tariffs could still reach 50%. This exemption follows an agreement to reduce tariffs to zero that is not yet active.

Key Facts:

• The U.S. decided not to double tariffs on UK-imported steel, keeping it at 25% instead of raising it to 50%.
• An agreement reached on May 8 aims to reduce steel tariffs to zero but is not yet in effect.
• If the deal is not completed by July 9, UK steel tariffs may increase to 50%.
• The UK found out about the exemption at the same time as the public, avoiding potential diplomatic issues.
• Businesses remain uncertain about future tariffs, affecting planning and operations.
• The exemption might lead to more steel being sent to the UK, possibly harming local steelmakers.
• As part of the deal, the UK agreed to lower tariffs on certain U.S. products like beef and ethanol.
• Concerns exist that this could create market issues for UK ethanol producers and wheat farmers.

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BBC Business

Baby bank needs to raise £60,000 for new premises

BBC Business • June 04, 2025 • Business

Leeds Baby Bank, a charity that provides essential items for families with children, needs to raise £60,000 to equip a new and larger site in Armley. The move aims to meet the high demand for their services, which has led to a temporary closure of their waiting list, and to offer additional support like classes and group sessions.

Key Facts:

• Leeds Baby Bank is a charity helping families with clothes and essential supplies for children.
• The charity needs £60,000 to prepare their new location in Armley.
• The new site will offer more space and easier access for families.
• Over 200 families are currently waiting for help from the charity.
• The move aims to allow the charity to help more families and host community activities.
• Current demand for the charity's services is high, causing their waiting list to close temporarily.
• The new location will have a drive-up loading bay for easier collection of large items.
• Leeds Baby Bank plans to reopen their waiting list and provide more support by mid-July.

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BBC Business

Food waste charity celebrates one-year milestone

BBC Business • June 04, 2025 • Business

FareShare Sussex & Surrey, a charity that collects extra food and gives it to those in need, is celebrating one year since it opened a warehouse in Guildford, Surrey. The charity, which has been running for 23 years, helps about 17,000 people every week with food deliveries.

Key Facts:

• FareShare Sussex & Surrey operates from a warehouse in Guildford, Surrey.
• The charity celebrated one year of its Guildford facility being open.
• FareShare Sussex & Surrey has been in operation for 23 years.
• It delivers about 2.14 million meals each year.
• Approximately 17,000 people benefit from the charity's food deliveries weekly.
• The Guildford warehouse was opened to meet increasing demands in Surrey.
• The charity's operations involve 170 volunteers.
• A volunteer named Carolyn Turner helps at the Guildford warehouse, doing tasks like sorting food.

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BBC Business

UK temporarily spared from Trump's 50% metal tariffs

BBC Business • June 03, 2025 • Business

The UK is temporarily not affected by the recent US decision to increase tariffs on steel and aluminum from 25% to 50%. This exemption is due to a trade agreement made between the UK and the US in May, which is not yet in effect. If the agreement falls through, UK steel exporters might face higher tariffs in the future.

Key Facts:

• The US planned to double tariffs on steel and aluminum imports, raising them to 50%.
• The UK remains temporarily exempt from this increase, continuing with a 25% tariff.
• The exemption relies on a tariff agreement between the UK and US signed in May, which is not yet activated.
• The US can still raise UK's tariffs if the UK does not meet certain agreement conditions by July 9, 2025.
• About 7% of UK steel exports go to the US, making these tariffs significant to the UK steel industry.
• UK officials stated they will continue efforts to implement the tariff agreement with the US.
• The decision follows a meeting between UK Business Secretary Jonathan Reynolds and US Trade Representative Jamieson Greer.

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BBC Business

Train firms must stop criminalising 'innocent errors', report says

BBC Business • June 03, 2025 • Business

An inquiry by the Office of Rail and Road (ORR) discovered that train passengers in the UK are facing unfair penalties for minor ticketing mistakes. The rail ticketing system is complex, leading to disproportionate actions against travelers for small errors, although rail companies are urged to improve consistency and fairness.

Key Facts:

• The ORR found that train passengers experience unfair penalties for small ticketing errors.
• Britain's fare system is described as complex by the ORR.
• The investigation revealed that some passengers faced potential legal action over minor mistakes.
• Fare evasion costs the rail industry about £400 million annually.
• The inquiry highlighted challenges in distinguishing genuine mistakes from intentional fare evasion.
• The government is working on simplifying ticketing and plans for a state-owned rail operator called Great British Railway.
• The Rail Delivery Group acknowledged the need to be more consistent and clearer in handling fare issues.
• Some accidental errors, such as using the wrong rail card, have led to threats of prosecution.

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BBC Business

Baby bank reports 'disturbing' rise in demand

BBC Business • June 03, 2025 • Business

Organizations called baby banks, which give essential items to families with babies, have seen a big rise in the number of people who need their help. One baby bank in Lincolnshire, called Market Rasen Baby Bank, reported that the number of families they help has increased significantly over the past six months. Across the UK, more families are using these services, and many are struggling with basic costs.

Key Facts:

• Baby banks provide items like nappies, cots, and clothes to families in need.
• The Market Rasen Baby Bank in Lincolnshire saw demand increase from 19 to 76 families in six months.
• Many families using baby banks are working but still struggling with costs.
• The Baby Bank Alliance reported that 220,000 families in the UK used baby banks in 2024, up from 163,000 the previous year.
• Over 3.5 million items were given out by baby banks last year, 143% more than the year before.
• Little Treasures Baby Bank in Horncastle has also seen double the number of referrals this year.
• Items like cots and prams are especially needed, leading to urgent appeals for donations.

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BBC Business