Council to consider £4m household support fund

BBC Business • May 11, 2025 • Business

Barnsley Council will meet on Wednesday to discuss allocating over £4 million to help local residents with essential living costs. The money would assist with things like winter heating bills, school meals, energy costs, and financial advice if approved.

Key Facts:

• Barnsley Council plans to discuss over £4 million in aid.
• The money aims to help residents with winter heating, school meals, and energy costs.
• It would also provide debt and budgeting advice.
• The aid comes from the government's Household Support Fund.
• Last year, similar funding helped thousands with fuel payments and claiming benefits.
• Since 2020, Barnsley has received £16.4 million from this fund.
• This is expected to be the last round of such funding, ending in 2026.

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Tips from first-time buyers: 'We bought a £320,000 home aged 26'

BBC Business • May 10, 2025 • Business

First-time buyers in the UK are using various strategies to purchase homes despite housing market challenges. Some of the methods include Lifetime ISAs to save money and income booster mortgages to increase borrowing capacity.

Key Facts:

• Cameron Smith and Georgia Pickford used a Lifetime ISA to save for a deposit on a £320,000 flat in Hertfordshire.
• The Lifetime ISA allows savings of up to £4,000 a year with a 25% government bonus for homes under £450,000.
• The Treasury Committee is reviewing the Lifetime ISA rules, as the £450,000 price cap hasn't changed since 2017.
• Abas Rai used an income booster mortgage, which lets a family member's income be added to his, to buy a £207,000 house.
• An income booster mortgage allows banks to offer larger loans by combining borrower and family member incomes.
• Alex Bonfield moved from Oxfordshire to Manchester to buy a home in a cheaper area after being priced out locally.

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BBC Business

Stats boss quits for health reasons after data controversy

BBC Business • May 09, 2025 • Business

Sir Ian Diamond, the head of the UK Office for National Statistics, resigned because of health problems. This resignation comes at a time when there are concerns about the reliability of the data from the ONS, particularly related to its Labour Force Survey, which tracks unemployment.

Key Facts:

• Sir Ian Diamond resigned from the Office for National Statistics due to health issues.
• The ONS has faced criticism over the reliability of its data, particularly from the Labour Force Survey.
• The Office for Statistics Regulation expressed concerns about the quality of ONS data.
• The ONS has struggled to get enough survey responses, affecting data quality since the pandemic.
• The UK's statistics regulator withdrew its quality mark from some ONS data due to reliability issues.
• There is a delay in replacing the employment survey, originally planned for September 2024.
• An internal report criticized the management of the survey replacement project.
• A rapid review is underway to examine ONS’s delivery of statistics and its organizational culture.

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BBC Business

Greater Anglia to be nationalised in October

BBC Business • May 09, 2025 • Business

Greater Anglia, a train company operating in the East of England, will be nationalised and brought under public ownership on October 12. The change aims to improve service reliability and save money, while the train schedules, services, and employee roles will remain the same.

Key Facts:

• Greater Anglia operates trains throughout Essex, Suffolk, Norfolk, Cambridgeshire, and Hertfordshire, including the Stansted Express.
• The company will be nationalised on October 12, moving into public ownership.
• The Department for Transport aims for a seamless transition, with no changes to train services or employee roles.
• The nationalisation is expected to save up to £150 million and reduce train delays and cancellations.
• A new organization, Great British Railways, will oversee service contracts as they move from private companies to public management.
• Labour’s Passenger Railway Services (Public Ownership) Act 2024 enabled this move.
• Other rail services like South Western Railway and c2c will also be nationalised soon.
• The move is part of a broader government plan to improve train services across Britain.

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BBC Business

UK prepared to pay to access EU defence programmes

BBC Business • May 09, 2025 • Business

The UK government is willing to pay for UK companies to participate in European Union (EU) defense programs. They aim to be involved in these programs and keep UK-made products and ideas secure. The country is also increasing defense spending and supporting Ukraine.

Key Facts:

• The UK wants its companies to access EU defense programs worth hundreds of billions.
• The UK is prepared to pay a fair share to join these programs while keeping its own technology and export opportunities.
• Three-quarters of UK spending to support Ukraine will be with UK companies.
• The EU has suggested the UK might not join defense programs without paying.
• European Commission plans to boost defense spending include raising up to €800 billion.
• BAE Systems, a major UK defense company, is increasing ammunition production.
• The UK government plans to raise defense spending from 2.3% to 2.5% of GDP by 2027.
• An extra £6 billion for defense will be moved from the international aid budget.

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Hormone-treated beef will not enter UK after US deal, says government

BBC Business • May 09, 2025 • Business

The UK government announced that hormone-treated beef from the United States will not be allowed into the UK following a new trade deal between the two countries. The UK will enforce strict food standards and conduct border checks to prevent hormone-reared beef from entering the market.

Key Facts:

• The UK has a trade deal with the US that increases beef trade between both countries.
• The UK government has reassured that hormone-treated beef will not enter the UK.
• UK food standards, which ban hormone-treated beef since 1989, remain unchanged.
• Certification procedures and border checks will ensure compliance with UK food standards.
• The trade deal permits duty-free import of up to 13,000 tonnes of US beef to the UK.
• UK beef exports to the US will also increase, with lower tariffs.
• Some consumers and farmers have expressed concerns about hormone-treated beef.
• The deal also involves reduced tariffs on UK cars to the US and US ethanol to the UK.

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BBC Business

Trump hints tariffs on China may drop as talks set to begin

BBC Business • May 09, 2025 • Business

President Donald Trump suggested that the United States might reduce tariffs on Chinese goods as officials from both countries prepare to meet for trade talks. These discussions aim to ease tensions in a trade conflict that has affected global markets, although any significant reduction in tariffs may take time and complex negotiations.

Key Facts:

• President Trump indicated a possible reduction in US tariffs on Chinese goods.
• US and Chinese officials are planning to meet in Switzerland to discuss trade issues.
• The US imposed import taxes on Chinese goods, which have reached up to 145%.
• Recent signals suggest both countries are open to reducing tensions in the trade conflict.
• Meetings will initially involve US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng.
• A final trade deal is expected to require involvement from both US and Chinese presidents.
• The new talks follow the US striking a tariffs deal with the UK, reducing import taxes on certain British products.
• China's exports to the US dropped by over 20% in April year-on-year, but its overall exports rose by 8.1%.

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BBC Business

Inside the secretive world of Zara

BBC Business • May 08, 2025 • Business

Zara, owned by Inditex, is a major fashion retailer known for its quick product turnaround. The company sources many clothes close to its Spanish base, which helps it quickly follow fashion trends and ship to stores in 97 countries. Zara is adapting to new competition from online retailers like Shein and Temu but plans to continue expanding, particularly in the US market.

Key Facts:

• Zara is owned by Inditex, the largest fashion retailer in the world.
• The company sources clothes from 1,800 suppliers globally but brings them to Spain for distribution.
• Zara does not use traditional advertising and rarely gives interviews.
• Zara operates in 97 countries and has 350 designers from 40 countries.
• The company frequently updates its clothing lines, adding new items weekly.
• Nearly half of its clothing is made in Spain, Portugal, Morocco, and Turkey.
• Zara has its production sites near its headquarters in Spain.
• The company is expanding in the US, its second-largest market, despite challenges from online competitors and tariff changes.

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BBC Business

UK must 'do everything' to rebuild trade with EU, says Bank boss

BBC Business • May 08, 2025 • Business

The Bank of England Governor, Andrew Bailey, stated that the UK should focus on improving its trade connections with the European Union (EU) after a recent trade agreement with the United States. He emphasized the importance of rebuilding trade relationships, especially since the EU is the UK’s largest trading partner.

Key Facts:

• Andrew Bailey is the Governor of the Bank of England.
• He said the UK needs to improve its trade relationship with the EU.
• The comments followed a new trade deal between the UK and the US.
• The EU is the UK’s biggest trading partner, making these talks important for the UK economy.
• The US agreed to lower import taxes on some British cars and let some steel and aluminium enter without tariffs.
• Most goods from the UK will still have a 10% duty when entering the US.
• The UK plans to discuss a veterinary agreement with the EU to reduce trade rules on food and farm products.
• Mr. Bailey stated that improving trade with the EU can benefit the UK economy and reduce inflation.

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BBC Business

US and UK agree deal slashing Trump tariffs on cars and metals

BBC Business • May 08, 2025 • Business

The US and UK agreed to reduce import taxes on some British cars and allow certain steel and aluminum products into the US without extra charges. The deal keeps a 10% tax on many UK goods and provides limited growth benefits for British exports. No official, detailed agreement was signed.

Key Facts:

• The US will reduce car import taxes from the UK to 10% for up to 100,000 cars each year.
• Tariffs on steel and aluminum, previously increased by Trump to 25%, have been reduced for some products.
• The UK and US plan to have "reciprocal access" for beef exports, but details are unclear.
• The US expects a $5 billion increase in exports due to this deal, including $700 million in ethanol.
• UK Steel praised the deal for easing tariffs on the steel industry.
• Some business groups are cautious, as the deal is less favorable than pre-Trump tariff conditions.
• The US and UK have been negotiating trade improvements since Trump's presidency began, focusing on agriculture and pharmaceutical trade issues.
• The agreement intends not to lower UK food standards for imports.

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BBC Business

US agreement leaves the UK open to do a much more significant EU deal

BBC Business • May 08, 2025 • Business

The US and the UK have reached a trade agreement that reduces tariffs on UK car exports to the US and opens opportunities for a larger trade deal between the UK and the European Union. The agreement involves specific quotas and does not address digital services taxes or tariffs on US cars.

Key Facts:

• The US-UK trade agreement lowers tariffs on UK car exports from 27.5% to 10%.
• This agreement could save UK car exporters over £1 billion.
• The trade deal sets a limit of 100,000 cars for the tariff reduction.
• The agreement includes US access to UK agricultural markets, such as beef, but with quotas.
• The agreement does not cover digital service tax issues or US car tariffs.
• The UK reduced its tariffs on US goods from 5.1% to 1.8%.
• Possible future trade deals with the EU could remove some trading barriers.
• The Bank of England sees this agreement as a calming influence on global trade tensions.

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BBC Business

UK inflation rate: How quickly are prices rising?

BBC Business • May 08, 2025 • Business

Prices in the UK rose by 2.6% in the 12 months to March 2025, less than the previous month but still above the Bank of England's 2% target. The Bank of England has lowered interest rates to 4.25% throughout 2025 to address inflation, which had peaked at 11.1% in 2022. Inflation is driven by various factors, including energy prices and global events, and the Bank uses interest rates to try to manage it.

Key Facts:

• UK inflation was 2.6% in March 2025, down from 2.8% in February.
• The Bank of England aims to keep inflation at 2% by adjusting interest rates.
• Inflation soared to 11.1% in October 2022, partly due to high energy prices.
• The Office for National Statistics measures inflation with the Consumer Prices Index (CPI).
• Interest rates have been reduced to 4.25% by the Bank of England in 2025.
• Core inflation, which excludes food and energy, was 3.4% in March 2025.
• Inflation reduction involves making borrowing more expensive to decrease spending.
• Regular pay growth in Great Britain was 5.9% between December and February, outpacing inflation.

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Heathrow shutdown cause still unknown, report says

BBC Business • May 08, 2025 • Business

The cause of a fire that led to a massive shutdown at Heathrow Airport is still unknown, according to an interim report. The fire at an electrical substation caused a power outage, affecting over 270,000 journeys. Investigations continue, with a final report expected by June.

Key Facts:

• A fire at an electrical substation near Heathrow Airport caused a power outage.
• The incident occurred on 20 March, affecting over 270,000 travel journeys.
• Heathrow Airport was closed to all flights for most of 21 March.
• The National Energy System Operator (Neso) is investigating the cause.
• The Metropolitan Police found no evidence that the fire was suspicious.
• Power was restored to the airport seven hours before flights resumed.
• Heathrow used emergency backup systems to keep safety operations running.
• The final findings from the investigation are expected to be reported by June.

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BBC Business

What could be in the UK-US tariff deal?

BBC Business • May 08, 2025 • Business

The US and the UK are expected to announce a new deal to reduce tariffs, which are taxes on imported goods. This deal will likely lower the tariffs on certain UK exports to the US, like cars, steel, and aluminum, but it is not a full trade agreement. Some tariffs, particularly the 10% on most imports, will stay the same for now.

Key Facts:

• The deal is expected to reduce tariffs on certain UK exports but not eliminate them entirely.
• The UK exports cars to the US, worth about £9 billion annually, and the deal might lower the current 25% tariff on cars or introduce a quota system.
• Steel and aluminum exports from the UK face a 25% tariff in the US, which could be adjusted by the new deal.
• Pharmaceutical exports are a major part of UK trade with the US, valued at £6.6 billion, but changes to tariffs on these products are not clear yet.
• Unlike a full trade agreement, this deal mainly focuses on reducing specific tariffs and requires further negotiations.
• Both countries still face tariffs of 10% on most goods exchanged between them.
• Any significant trade agreement requires approval from the US Congress, which is not part of this announcement.

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BBC Business

US and UK to announce deal to reduce tariffs

BBC Business • May 08, 2025 • Business

The US and UK are expected to announce a deal to lower tariffs. This follows the US imposing tariffs on many countries, including the UK, though discussions for trade agreements are ongoing with several nations.

Key Facts:

• The US and UK are set to announce a deal to reduce tariffs.
• President Trump imposed tariffs on many countries, including a 10% global tariff.
• The UK faces a 25% US import tax on steel, aluminum, and cars.
• President Trump plans to reshape global trade by encouraging new deals.
• The US is negotiating trade deals with countries like India, Israel, Japan, South Korea, and Vietnam.
• US and Chinese officials are set to meet for trade discussions in Switzerland.
• UK and India recently agreed on a trade deal easing trade and cutting some taxes.

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BBC Business

Sports kits 'drive up' school uniform costs says retailer

BBC Business • May 08, 2025 • Business

Rising costs of branded school sports kits are increasing the overall expense of school uniforms, according to retailers. This issue is being discussed by the Education Committee in Northern Ireland, which is considering laws to control uniform prices and limit branded items. Parents find managing these costs difficult, with some paying more for a child's PE kit than the main uniform.

Key Facts:

• Branded sports kits are increasing the cost of school uniforms.
• The Education Committee in Northern Ireland is examining laws to control uniform prices.
• Some parents are paying more for branded PE kits than for other parts of the uniform.
• Education Minister Paul Givan is considering limits on the number of branded items schools can require.
• A new law proposal, the School Uniforms (Guidelines and Allowances) Bill, is currently under review.
• Retailers have requested a three-year period before any new law is enacted to avoid financial strain.
• Northern Ireland's current school uniform grant is smaller than those in Wales or Scotland.
• A consultation about the proposed law received 7,500 responses, with many parents against compulsory branded PE kits.

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BBC Business

Watch: US and China are ready to talk tariffs - who will blink first?

BBC Business • May 07, 2025 • Business

US and Chinese officials are meeting in Switzerland this weekend to discuss trade tariffs. The talks follow high tariffs that the US and China imposed on each other earlier this year, leading to a big drop in trade between the two countries.

Key Facts:

• US and Chinese officials are starting trade talks in Switzerland this weekend.
• Earlier in April, the US imposed a 145% tariff on Chinese goods.
• In response, China set a 125% tariff on US goods.
• The tariffs have caused a significant decline in trade between the US and China.
• Discussions aim to address and potentially resolve these trade barriers.

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BBC Business

Interest rates expected to be cut by Bank of England

BBC Business • May 07, 2025 • Business

The Bank of England is expected to announce a cut in interest rates to 4.25% from 4.5% on Thursday, with the possibility of additional cuts later this year. This move, if confirmed, would make borrowing cheaper for both businesses and individuals but may reduce savings interest returns.

Key Facts:

• The expected interest rate cut by the Bank of England is from 4.5% to 4.25%.
• This would be the fourth rate reduction from last year's high of 5.25%.
• Interventions aim to align inflation with the target rate of 2%, currently slightly higher at 2.6%.
• Global economic factors, like US tariff policies, may influence further rate cuts.
• Most homeowners have fixed-rate mortgages not immediately influenced by rate cuts.
• Some mortgage holders, like those with tracker mortgages, will see immediate payment reductions.
• Savings interest rates might decrease, impacting people relying on returns from savings accounts.

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BBC Business

British Steel creates 180 jobs in production drive

BBC Business • May 07, 2025 • Business

British Steel plans to hire more than 180 workers as it increases production. Most of these new jobs will be at the company's plant in Scunthorpe, with others in Teesside and Skinningrove. This hiring follows the UK government's recent takeover of the company to prevent major job cuts.

Key Facts:

• British Steel will hire 182 new workers.
• Most jobs will be in Scunthorpe, with 165 positions there.
• The remaining 17 jobs will be at the Teesside and Skinningrove plants.
• Job roles include engineering, cleaning, workplace safety, and legal positions.
• The UK government recently took control of British Steel from its Chinese owner, Jingye.
• An open day for job applicants will be held on May 17 at the Scunthorpe Conference Centre.
• The government intervened to prevent the shutdown of two blast furnaces, which are essential for making new steel.
• The company aims to meet customer demand and boost production.

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BBC Business

Disney to open theme park in the Middle East

BBC Business • May 07, 2025 • Business

Walt Disney Company has announced plans to open a new theme park in Abu Dhabi, UAE, marking its first park in the Middle East. The park will be built on Yas Island with local company Miral, adding to Disney's existing theme parks around the world.

Key Facts:

• Disney is opening its first theme park in the Middle East in Abu Dhabi, UAE.
• The park will be located on Yas Island, a key tourist destination.
• Miral, a UAE company, is collaborating with Disney and already manages other attractions on Yas Island.
• Abu Dhabi is seen as a major travel hub due to its proximity to a large portion of the global population.
• The new park aims to blend Disney's signature style with local Emirati culture.
• This development follows Disney's existing theme parks in the US, Europe, and Asia.
• Disney is also reporting increased revenues and more subscribers for its streaming service, Disney+.

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BBC Business