Thames Water bonuses could be blocked by regulator

BBC Business • May 16, 2025 • Business

Thames Water and other water companies in the UK may not be able to pay bonuses to their executives due to new rules set by the regulator, Ofwat, starting next month. These rules will prevent companies from using money from customers, shareholders, or lenders for bonuses when environmental and financial standards are not met.

Key Facts:

• Ofwat, the water industry regulator, is introducing new rules to block bonuses for water company executives.
• The rules will stop firms from using funds from customers, shareholders, or lenders for executive bonuses.
• Thames Water is the UK’s largest water company and has faced criticism for its debts and environmental record.
• Thames Water recently secured a £3 billion emergency loan to restructure its debts.
• US private equity firm KKR is chosen as a preferred partner to potentially buy Thames Water.
• The new rules are part of the Water (Special Measures) Act, which takes action on undeserved bonuses.
• The ban is retrospective, meaning bonuses paid in the last financial year might be recalled.
• Environment Secretary Steve Reed supports the ban to prevent water companies from profiting amid failure and pollution issues.

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BBC Business

Gatwick strike called off but disruption looms

BBC Business • May 16, 2025 • Business

The planned strike by baggage handlers at Gatwick Airport has been paused, but refueling staff will still strike, possibly affecting flights during half-term. This means flights from Gatwick might face disruptions despite efforts to minimize impact.

Key Facts:

• Baggage handlers from the company Red Handling were planning a strike at Gatwick Airport.
• The strike was meant to address a disagreement about pensions.
• The action has been paused because the company showed proof of pension payments.
• Despite this, refueling staff will strike from today until Tuesday, and again from May 23–27.
• Airlines like EasyJet have plans to handle the situation and continue their flights.
• Gatwick is trying to reduce any problems for passengers caused by the refueling strike.
• The union plans to hold a vote to decide on any further action based on new offers.
• Another potential strike by baggage handlers might happen on June 1, depending on the vote results.

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Nissan says it could share global plants with Chinese state firm

BBC Business • May 16, 2025 • Business

Nissan is considering sharing its global factories with the Chinese company Dongfeng to change its business approach. The carmaker announced job cuts and factory closures as part of cost-saving measures due to weak sales. Nissan is also dealing with leadership changes and reported a financial loss for the year.

Key Facts:

• Nissan plans to share its factories with Dongfeng, a Chinese state-owned company.
• The company announced it will cut 11,000 jobs and close seven factories, but locations were not specified.
• Nissan's job cuts are part of reducing its global production by 20% due to poor sales.
• The total workforce cuts will impact 15% of Nissan's employees worldwide.
• Nissan has worked with Dongfeng for over 20 years and builds cars together in Wuhan, China.
• Leadership changes occurred after failed merger talks with Honda, leading to Mr. Espinosa becoming the new chief.
• Nissan reported an annual financial loss of 670 billion yen, affected by tariffs from the U.S.
• The UK government approved a £1 billion funding for Nissan's battery partner AESC to build a new plant in Sunderland.

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One in 10 have no savings, financial regulator says

BBC Business • May 15, 2025 • Business

A report by the Financial Conduct Authority (FCA) reveals that one in ten UK adults have no savings, leaving them vulnerable to financial shocks and rising bills. The survey also found that many people face high levels of stress over money issues, and a significant number are struggling with debt. Despite these challenges, the FCA notes that the situation hasn't worsened since the cost of living crisis began, and free help is available for those in financial trouble.

Key Facts:

• One in ten UK adults have no savings at all.
• 13 million people in the UK have low financial resilience, meaning they struggle with debt and have minimal savings.
• 40% of adults with credit or loans experience anxiety and stress about their finances.
• Nearly 12 million people feel stressed or overwhelmed by financial issues.
• 2.8 million people have persistent credit card debt.
• Nearly 10 million people find it hard to access a bank branch.
• The use of "buy now, pay later" services has increased, especially among lone parents and young women.
• The average debt for UK adults with debt is £6,300, which increases to £12,500 for 18 to 34-year-olds.

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UK needs more nuclear to power AI, says Amazon boss

BBC Business • May 15, 2025 • Business

Amazon's cloud computing division, AWS, plans to invest £8 billion in UK data centers over the next four years. AWS CEO Matt Garman suggests using nuclear energy to power these centers due to its ability to provide continuous, zero-carbon power. The UK's data centers currently use a significant amount of the country's electricity, and this demand is expected to grow.

Key Facts:

• Amazon Web Services (AWS) plans to invest £8 billion in UK data centers over the next four years.
• Data centers are facilities filled with computers that power services like AI and streaming.
• AWS is interested in nuclear energy because it provides constant, zero-carbon power.
• AWS is the largest corporate buyer of renewable energy and has invested in over 40 renewable projects in the UK.
• The UK's 500 data centers consume about 2.5% of the country's electricity, which could rise to 6% by 2030.
• Small modular reactors (SMRs) are being developed and may serve data center power needs in the future.
• Traditional nuclear power takes a long time to build and is costly.
• Regulatory and infrastructure challenges exist for expanding nuclear power options.

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BBC Business

UK business group calls for 'reset' with EU

BBC Business • May 15, 2025 • Business

A UK business group, the Confederation of British Industry (CBI), is calling for improved relations with the European Union to make it easier for people to travel and work across borders. They suggest simplifying regulations and working together on energy, climate, and defense issues. The UK government also wants better ties but hasn't agreed to any changes yet.

Key Facts:

• The CBI wants to ease travel restrictions and reduce bureaucratic hurdles between the UK and EU.
• They suggest restoring recognition of professional qualifications and youth mobility schemes.
• The UK government is interested in resetting relations but hasn't committed to specific plans.
• The EU is the UK's largest trading partner, making improved relations economically important.
• The CBI highlighted potential business costs in Northern Ireland due to new trade rules and carbon taxes.
• Airbus and Energy UK support stronger UK-EU ties, citing business and climate benefits.
• The UK government does not plan to rejoin the EU or its single market.
• Youth mobility schemes could offer more job opportunities for young people in both regions.

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BBC Business

BA fined £3m after luggage handlers hurt in falls

BBC Business • May 15, 2025 • Business

British Airways was fined over £3.2 million after two workers were injured in similar accidents while working at Heathrow Airport. The workers fell from machines used to load luggage onto planes, leading to serious injuries, and the court found BA guilty of safety regulation breaches.

Key Facts:

• British Airways was fined £3,208,333.
• The incidents happened at Heathrow Airport with luggage handlers.
• The injuries occurred when the workers fell from machines called televators.
• Televators are used to load luggage into planes.
• Ravinder Teji and Shahjahan Malik were the two injured workers.
• Mr. Teji suffered back injuries and a head cut in August 2022.
• Mr. Malik had a brain bleed and facial fractures in March 2023.
• The court ruled that protection, such as guardrails, was missing on the machines.
• BA pleaded guilty to two breaches of safety regulations.
• The court also ordered BA to pay £20,935 in costs.

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BBC Business

More pupils auto-enrolled for free school meals

BBC Business • May 15, 2025 • Business

More children in Newcastle now get free school meals because the city council made them automatically available to eligible families. This change means schools get more funding, even though the number of new enrollments isn't as high as in other areas.

Key Facts:

• Newcastle City Council started automatic enrollment for free school meals last December.
• An extra 153 children in Newcastle now get free school meals due to this change.
• Schools in Newcastle receive an extra £195,250 in funding each year from this increase.
• Around 40% of children in Newcastle qualify for free school meals.
• Across England, about 24.6% of children are eligible for free school meals, but 10% of those eligible do not register.
• Barriers to enrollment include paperwork, language issues, and feelings of shame.
• The council noted that for some kids, a school lunch might be their only hot meal of the day.
• Free school meals can save families as much as £450 each year.

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BBC Business

Faisal Islam: The UK's surprise resilience may not be temporary

BBC Business • May 15, 2025 • Business

Recent economic data shows the UK economy grew by 0.7% in the first three months of the year, which is better than many predicted. While challenges remain, such as cost of living pressures and business struggles, the economy appears to be more stable than expected.

Key Facts:

• The UK economy grew by 0.7% in the first quarter of the year.
• This growth rate exceeded expectations and indicated the UK was not in a recession.
• The UK could be the fastest-growing economy among the G7, subject to confirmation from Japan and Canada.
• Tariffs and tax increases may slow future growth.
• Real incomes have increased, improving consumer spending for some.
• Interest rate cuts and political stability might have supported this growth.
• Businesses, especially in retail and hospitality, face pressures from increased costs.
• The government focuses on economic growth despite challenges like an immigration crackdown affecting some sectors.

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BBC Business

Welsh Water fined £1.3m for 'negligent' monitoring

BBC Business • May 15, 2025 • Business

Welsh Water was fined £1.35 million for not properly monitoring water quality at 300 sites. The company admitted to 15 charges involving over 800 offenses, blaming the issues on changes made during the COVID-19 pandemic.

Key Facts:

• Welsh Water was fined £1.35 million.
• The fine was for failing to monitor water quality properly at 300 sites.
• The company pleaded guilty to 15 charges related to more than 800 offenses.
• Welsh Water said problems happened due to a reorganization and a new system during the COVID-19 pandemic.
• Since 2010, water companies must monitor their sewage and water treatment works.
• Natural Resources Wales found over 600 breaches in Welsh Water's 2020 annual report.
• Welsh Water was also ordered to pay over £70,000 in costs.

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BBC Business

India disputes Trump claim it is ready to charge US 'no tariffs'

BBC Business • May 15, 2025 • Business

President Trump's claim that India has agreed to eliminate all tariffs on US imports is disputed by India. Indian Foreign Minister S Jaishankar stated that trade talks are ongoing, and there is no final agreement yet.

Key Facts:

• President Trump claimed that India offered to remove all tariffs on US goods.
• India's Foreign Minister S Jaishankar stated talks are still in progress and nothing is finalized.
• Trump mentioned these comments during an event in Doha with business leaders.
• India and the US are currently negotiating a trade agreement.
• Trump previously set tariffs on Indian goods, which India is seeking to address before the 90-day pause on higher tariffs ends.
• India has already lowered tariffs on some US products such as Bourbon whiskey and motorcycles.
• Trade between the US and India recently reached $190 billion.
• India is more open to trade deals and signed agreements with the UK and European Free Trade Association.

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BBC Business

How optimistic should you be about the UK economy?

BBC Business • May 15, 2025 • Business

The UK economy grew by 0.7% in the early months of the year, slightly more than the forecasted 0.6%. This growth was mainly due to increased spending on services like retail and hospitality. However, the introduction of new tariffs by the US and rising domestic costs might affect future growth.

Key Facts:

• The UK economy grew by 0.7% at the start of the year.
• This growth was higher than the expected 0.6%.
• Spending on retail, hospitality, and finance contributed to this growth.
• In March 2025, the economy grew by 0.2%, contrary to predictions of no growth.
• The UK had the highest growth rate in the G7 group of countries, which includes the US, France, and Germany.
• New US tariffs may reduce UK's exports to the US.
• Some increases in bills and taxes began in April, affecting household expenses.
• An increase in National Insurance and the minimum wage impacted businesses' hiring capabilities.

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BBC Business

Ben & Jerry's co-founder arrested after Senate Gaza protest

BBC Business • May 15, 2025 • Business

Ben Cohen, co-founder of Ben & Jerry's, was arrested during a protest at the US Senate against military aid to Israel and the situation in Gaza. He was charged with a minor legal offense, while six other protesters were also arrested with more severe charges. Ben & Jerry's, known for its social and political activism, has had ongoing disagreements with its parent company, Unilever.

Key Facts:

• Ben Cohen was arrested during a protest in the US Senate about military aid to Israel and conditions in Gaza.
• Cohen was charged with a misdemeanour, often related to civil disobedience.
• Six other protesters were arrested with charges including assaulting a police officer.
• The protest took place during a hearing where Robert F Kennedy Jr was testifying.
• Ben & Jerry's is known for supporting social and political causes, such as LGBTQ+ rights and climate change.
• Ben & Jerry's was bought by Unilever in 2000 but retains an independent board to uphold its values.
• There are ongoing legal disputes between Ben & Jerry's and Unilever, partly due to political disagreements.
• Unilever stated that Ben Cohen's activism is his own and not on behalf of Ben & Jerry's or Unilever.

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BBC Business

UK economy grew more than expected in first three months of year

BBC Business • May 15, 2025 • Business

The UK economy grew by 0.7% in the first three months of the year, beating predictions of 0.6% growth. This rise was mainly due to the services sector and happened before new US tariffs and higher UK business taxes in April.

Key Facts:

• The UK's economy expanded by 0.7% from January to March.
• Original growth forecasts had predicted a growth of 0.6%.
• The services sector was the main driver of this growth.
• March saw a 0.2% increase in economic growth.
• Growth occurred before US import tariffs and an increase in UK employer taxes in April.
• UK economic growth in that period outpaced the US, Canada, France, Italy, and Germany.
• Despite recent growth, forecasts for the UK's annual economic growth have been downgraded by some institutions.
• Business investment also increased nearly 6% during this period.

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BBC Business

What has happened to the closed Debenhams stores?

BBC Business • May 15, 2025 • Business

The former Debenhams stores, which closed in May 2021, have had mixed outcomes. Some locations are being repurposed into student housing and retail spaces, while others remain vacant and a concern for local communities.

Key Facts:

• Debenhams closed its last physical stores in May 2021 after over 200 years in business.
• The stores closed due to falling profits and rising debt as more shopping moved online, worsened by the COVID-19 pandemic.
• In Northampton, a former Debenhams site is now student housing after the building was demolished.
• In Ipswich, the store remains empty despite interest from potential new retailers.
• The Ipswich location's owner has rejected offers, citing the need for surrounding pedestrian-friendly developments.
• In Bury St Edmunds, the former Debenhams space is now occupied by Primark.

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BBC Business

Jaguar says it has no plans to build cars in the US

BBC Business • May 15, 2025 • Business

Jaguar Land Rover, a UK carmaker, announced that it will not build cars in the US. This decision comes amid ongoing tariffs placed by the US government, which are affecting many companies, including those in the car industry. Jaguar paused car shipments to the US but has now resumed them.

Key Facts:

• Jaguar Land Rover is a car company based in the UK.
• The company said it will not make cars in the United States.
• US tariffs have affected the car industry, leading many companies to change their strategies.
• Jaguar stopped shipping cars to the US in April due to tariff announcements.
• The US announced a 10% tariff on UK goods, affecting cars, steel, and aluminum.
• Some tariffs have been reduced, allowing limited British cars into the US tariff-free.
• Rival carmakers like Mercedes-Benz and Stellantis have also held back on giving profit forecasts.
• Other companies, such as Intel and Adidas, have spoken out about the impact of tariffs on their businesses.

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BBC Business

UK to allow foreign states 15% stake in newspapers

BBC Business • May 15, 2025 • Business

The UK will now allow foreign governments to take up to a 15% stake in British newspapers and magazines. This change aims to help newspapers get necessary funding while still protecting them from too much foreign influence.

Key Facts:

• Foreign states can own up to 15% of shares or voting rights in UK newspapers.
• This decision comes after a previous ban following a takeover bid backed by Abu Dhabi's ruling family.
• State Owned Investors include sovereign wealth funds, public pensions, or social security schemes.
• Culture Secretary Lisa Nandy said the new rule protects media variety and helps publishers financially.
• The previous complete ban was seen as too strict by some newspaper groups.
• The government set the 15% threshold as a balanced and straightforward approach.
• The ban began after Lloyds Bank seized ownership of the Telegraph and Spectator due to debt issues.
• The UK passed a law to prevent foreign states from gaining control or influence over its newspapers.

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Letting off steam: How Dominica's volcanoes will boost its green energy

BBC Business • May 14, 2025 • Business

Dominica is building a geothermal power plant to produce clean electricity using steam from underground. This plant aims to reduce reliance on diesel fuel and will help lower electricity bills. The project involves collaboration between the Dominican government and a US-Israeli company and is expected to be operational by the end of the year.

Key Facts:

• Dominica's new geothermal power plant uses steam from underground hot water sources.
• The plant is under construction near the village of Laudat and should be ready by the year's end.
• It aims to replace diesel generators, which currently power the island's electricity.
• The project involves both public and private funding from countries like the US, UK, and Japan.
• Ormat Technologies, a company with extensive experience in renewable energy, is building the plant.
• The geothermal plant is expected to reduce electricity bills and create jobs in Dominica.
• The plant plans to send extra electricity to nearby islands through undersea cables.

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Trump touts 'record' Boeing-Qatar Airways deal

BBC Business • May 14, 2025 • Business

Qatar Airways has agreed to buy up to 210 airplanes from Boeing, in a deal valued at $96 billion. This agreement is expected to create 154,000 jobs annually in the U.S. during production and is part of several economic deals between the U.S. and Qatar announced during President Trump's Middle East tour.

Key Facts:

• Qatar Airways plans to purchase up to 210 jets from Boeing.
• The deal is worth $96 billion and will support 154,000 U.S. jobs each year during production.
• This is the largest-ever order for Boeing's 787 Dreamliners, which are used for long flights.
• Boeing has faced production slowdowns and financial losses recently but is starting to recover.
• Boeing shares have increased by about 20% since January, signaling improved prospects.
• The order is part of over $240 billion in economic deals between the U.S. and Qatar.
• Boeing also secured commitments for plane purchases from Saudi Arabia's Avilease and British Airways' owner IAG.
• Boeing's main challenge has been meeting production deadlines, not a lack of demand for its planes.

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BBC Business

More people needing city foodbank than ever before

BBC Business • May 14, 2025 • Business

An emergency food service in Cambridge, called the Cambridge City Foodbank, reports a record number of people needing help, distributing over 17,000 food parcels last year, a 20% increase from the previous year. The increase is mainly due to income issues, forcing some parents to skip meals so their children can eat. The foodbank, supported by donations, provides parcels with three days' worth of food to those in need, but more people are seeking help due to financial pressure.

Key Facts:

• Cambridge City Foodbank provided 17,666 emergency food parcels last year.
• This number represents a 20% increase from 2023.
• Some parents are skipping meals so their children can eat.
• The foodbank attributes the rise in demand to income problems rather than food availability.
• People need a voucher to access foodbank services, which they can get through referrals from places like community groups and doctors.
• The foodbank gives parcels with food for three days to those in need.
• Nationally, 86% of people facing food insecurity do not seek assistance.
• Many who go to the foodbank have not been eating properly for some time due to financial difficulties.

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BBC Business