Month: February 2025

Lloyds Banking Group has posted a 20 per cent drop in annual pre-tax profits for 2024, missing City forecasts amid rising costs and one-off charges linked to the ongoing motor finance commission scandal.
The FTSE 100 lender recorded profits of £5.97 billion last year, down from £7.5 billion in 2023 and below analyst expectations of £6.4 billion.
Lloyds’ income was dented by a lower net interest margin — essentially the difference between interest income from lending and the costs of funding — in an environment of falling rates. The bank has also taken heavier remediation and impairment charges, including an additional £700 million linked to disputes around undisclosed or “partially disclosed” commissions in car loans.
This latest set-aside brings the lender’s total provision for possible motor finance compensation to £1.15 billion, though Lloyds cautioned there remains “significant uncertainty” over the final outcome. The charge is connected to a Court of Appeal judgment involving three consumers — Wrench, Johnson and Hopcraft — who challenged the liability of lenders when credit brokers such as car dealers arrange a hire-purchase agreement but fail to fully disclose commission details.
Charlie Nunn, chief executive of Lloyds, noted that the £700 million provision was prompted by the appeal court ruling, which goes “beyond the scope of the original FCA motor finance commissions review”.
In spite of these headwinds, Lloyds reported loans and advances to customers rose by £10.2 billion last year to £459.9 billion, with UK mortgages increasing by £6.1 billion. Deposits grew by £11.3 billion to £482.7 billion, reflecting solid customer confidence in the UK’s largest high street bank. Encouragingly, Lloyds also revealed an improved economic outlook, buoyed by recent house price growth and a more favourable assessment of risks such as inflation and interest rate volatility.
According to Matt Britzman, senior equity analyst at Hargreaves Lansdown, the extra £700 million provision has “clouded” what was otherwise a strong fourth quarter. However, Britzman highlighted that “Lloyds has managed to improve its loan quality over the course of the year, defying fears that borrowers would buckle under the pressure of persistent inflation.”
Despite the profit miss, the bank’s share price has climbed more than 40 per cent over the past 12 months, reflecting a generally upbeat sector outlook and consistent performance away from the motor finance charge.
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Lloyds profits shrink by a fifth as car finance saga drives up provisions

UK inflation jumped to 3% in January, up from 2.5% in December, driven by rising food costs, higher air fares and an increase in private school fees.
According to the Office for National Statistics (ONS), this is the fastest pace of price growth in 10 months.
Grocery staples such as meat, eggs, cereals and butter have become noticeably more expensive, with items like olive oil and lamb soaring by 17% and 16% respectively over the past year. Meanwhile, many households are bracing for further increases, as energy, water and council tax bills are all set to rise in April.
Higher wage bills and a forthcoming increase in National Insurance could also prompt some employers to pass on costs to consumers, further stoking inflationary pressures. “Life is a struggle,” one young mother, Gaby Cowley, told the BBC, noting that her weekly shop has nearly doubled over the past three years.
A key factor in January’s inflation jump was the inclusion of VAT on private school fees for the first time, effective from 1 January. The ONS says this “one-off” addition triggered about a 13% increase in fees at the start of the year.
Air fares also contributed to the rise. Although flight prices usually dip in January, the drop was less steep than usual, meaning travel costs remained higher than in previous years.
The higher-than-expected inflation rate has led to fresh speculation about whether the Bank of England will slow its interest rate cuts. With inflation still above the Bank’s 2% target, some economists believe policymakers may reconsider the pace of further reductions, although many expect the gradual downward trend to remain on track.
Professor Jonathan Haskel, a former member of the Bank’s Monetary Policy Committee, says it’s unclear whether the latest spike is a “harbinger of more to come” or simply an outlier that can be discounted when setting monetary policy.
While Treasury Minister James Murray has warned the path back to lower inflation could be “bumpy”, he insists the government’s reforms will “kick-start” growth. The government also points to the state pension triple lock and new minimum wage rates as ways to mitigate the cost-of-living crunch.
However, both the Conservatives and Liberal Democrats have blamed Labour’s tax and spending policies for January’s rise in inflation, with Liberal Democrat Leader Ed Davey warning of a “new era of stagflation” if growth remains weak while prices climb.
Analysts, including Ruth Gregory at Capital Economics, describe the inflation jump as “uncomfortable” for the Bank of England but do not expect it to halt further interest rate cuts altogether. Nevertheless, the persistent threat of rising wages and higher bills for consumers suggests that inflation could remain a pressing issue for the foreseeable future.
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Inflation climbs to 3% as pricier food, flights and private schooling hit households

MPs have criticised the portrayal of baby boomers as “wealth-hoarding” at the expense of younger generations, warning that such stereotypes risk normalising “ageist attitudes” across the UK media.
A new report from the Commons women and equalities committee highlights the widespread depiction of those born between 1946 and 1964 as either frail or living a life of opulence while their children and grandchildren struggle on lower incomes. The committee points to a 2020 study by the Centre for Ageing Better that examined how older people are shown on TV, in advertising and in magazines, with evidence suggesting these caricatures overlook inequalities within age groups.
Sarah Owen, chairwoman of the committee, is urging regulators such as the Advertising Standards Authority and Ofcom to help put an end to harmful, dismissive representations. She says existing laws prohibiting age discrimination are “failing older people” because they are rarely enforced.
Despite average household wealth rising with age, MPs say too little attention is paid to those in later life who do not own property or who face “digital exclusion”, especially as essential services increasingly move online. About 29 per cent of people over 75 have no home internet access, according to Ofcom – an issue that complicates access to banking, health services and council resources.
The government says the Equality Act already offers robust safeguards and points to the state pension triple lock for boosting incomes in later life. However, Owen wants stronger measures, including a UK-wide commissioner for older people – similar to the role in Wales – and a national strategy to combat ageist stereotypes in public services, healthcare and employment.
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MPs critical of ageist ‘wealth-hoarding’ labels for baby boomers

A Cambridge-based start-up that designs and manufactures folding electric bikes has secured £1.2 million in fresh investment, aiming to ramp up production in a bid to rival market leader Brompton.
Flit, founded in 2016 by cycling enthusiast Alex Murray and former Jaguar Land Rover engineer Dave Henderson, says demand for its models far exceeds current supply, with customers facing a wait of up to four months.
The new funding round was led by ACF Investors and Cambridge Angels, and attracted high-profile backers, including Tony Purnell, former head of technical development at British Cycling and once a team principal for Jaguar’s and Red Bull’s Formula One outfits.
Flit first gained traction with a £214,000 grant from Innovate UK in 2020, money it used to pioneer a new technique for bonding bike frames without welding. According to Murray, this process delivers a lighter and more robust frame by eliminating the distortion risk seen in welded parts. The company’s M2 model weighs just over 14kg and folds easily, making it well-suited for the commuter market.
“Not only did it improve our product, but it also re-imagined how we manufacture,” Murray said, explaining the decision to base production in Cambridge. “We’re hands-on in the factory, which ensures we fully master and control the process. And being in a city that loves bikes puts us close to our core community.”
Although Flit imports the raw aluminium and certain components, the entire assembly process takes place in Cambridge. The aim is to challenge Brompton’s long-established foothold in the market; Brompton recently reported a difficult trading year, forecasting a pre-tax profit of just £4,602 for 2024.
Murray, a passionate cyclist who has ridden across America and China, hopes Flit’s growing order book and new manufacturing approach will help it capture a bigger slice of the urban cycling market. “Our next step is to scale up to meet demand,” he said, highlighting the company’s intention to reduce waiting times and continue expanding its market presence.
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Folding bike pioneer Flit raises £1.2m to challenge Brompton’s dominance

Many energy and utility providers are offering great deals for those who make the switch. These providers often include packages containing options for electricity, gas and water.
While you may be happy with the service your current provider has in place, there are some excellent deals out there which can help you to save money. A great skill in this current climate.
However, saving on your bills isn’t just about choosing the right utilities’ provider. There habits you can take to reduce your costs. Not only will you save money, but have a positive impact on the environment too.
Energy-Saving Tips and Their Impact
As mentioned, there are a variety of steps you can take to reduce your energy consumption before you consider which provider you’re moving to. Getting into these habits will save you money. While also reducing your impact on the environment. For instance, you can turn off the standby on appliances as this doesn’t reduce their electricity consumption as much as you might believe.
These days, using energy-efficient lightbulbs is the norm, and this can help you save money even when the lights are on in the winter. This means changing from halogen bulbs to LED, which can lead to potential 90% energy saving while giving you the same amount of light. Additionally, if you change your shower and bath habits, you can save a lot on water too. Opting for a four-minute shower saves you more than if you had a bath. Other ways to save money, especially if you have to heat your house a lot, include professional DIY solutions. For instance, you should invest in more draught-proofing throughout the house, ensuring that there are no gaps around or under doors. You can also add insulation, which will improve your energy efficiency, saving you money when heating and reducing lost heat.
Choosing the Right Utility Provider
Understanding your energy bills and what they offer is essential if you are to accurately evaluate the different providers. Most providers in the UK do stick to the specifics when it comes to standard pricing. However, it is possible to make small savings here and there if you are willing to switch between providers. This is because you can often negotiate a far better contract. Many providers also offer specific deals to those who are switching, giving them great pricing perks for a few months. This can include the provision of smart meters, time-of-use tariffs and the use of renewable energy options. All of these can really help save you money on your bills, while also highlighting, and bringing to the fore, many of the environmental issues surrounding our energy consumption.
Leveraging Discounts and Promotions
Many providers are looking to keep or acquire new customers. To do so, they offer various discounts and promotions. These can be found when searching online or visiting the provider’s actual website. Alternatively, you can look at coupon and code sites such as Discoup.com: this site does the hardwork for you, looking through all the utility providers and the deals they have to offer. These discounts and codes are then listed on Discoup’s website making it easy for you to check all the utility providers and the offers they have in one convenient space. Instead of spending a lot of time searching for offers, you can spend that time determining which one is best instead. There are a great many offers you can find and utilize from this site too. And this includes making use of introductory offers, opting for bundled services, or accepting to use electricity during off-peak hours.
Practical Tools and Smart Technology
Once you’re up and running with your utility provider, make sure you’re keeping on top of your energy usage. Use smart home technology and tools for monitoring your energy usage as this will show you where you can save. Real-time usage tracking provides actionable insights into your energy consumption across specific products. With smart tariffs, you can also get more savings.
In short, thoughtful utility management has a lot of benefits. Not just for you and your purse, but the environment too. Take advantage of great deals, start some energy-saving habits, and stay proactive and informed when managing your utility choices.
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How to Choose the Right Utility Provider and Contract

The number of company insolvencies rose sharply at the start of the year, reaching a level not seen since the financial crisis, according to the latest figures from the Insolvency Service.
More than 1,900 businesses went under in January—10.7 per cent more than a year earlier—meaning nearly 500 firms a week were forced to fold.
Aside from 2009, when the economy reeled from the global credit crunch, last month’s total was the highest recorded for any January since official data collection began in 2000.
Tim Cooper, president of insolvency and restructuring trade body R3, highlighted that many of these cases were voluntary liquidations, suggesting owners were choosing to wind up solvent businesses. “Years of challenging trading conditions are taking a toll,” he said, “and with an increase in the national minimum wage and employers’ National Insurance contributions on the horizon, it appears some directors are stepping away before costs become unmanageable.”
From April, firms must grapple with Chancellor Rachel Reeves’s Budget measures, which include a £25 billion tax raid on employers through higher National Insurance. That same month, they also face a 6.7 per cent rise in the National Living Wage—exceeding most private-sector expectations.
Some analysts say the spectre of additional legislation—such as Deputy Prime Minister Angela Rayner’s Employment Rights Bill, set to cost businesses an estimated £4.5 billion annually—may be accelerating decisions to close up shop. Many of these burdens come on top of persistently high energy bills, fallout from Russia’s invasion of Ukraine and interest rates which, although trimmed recently, remain far higher than their pre-pandemic levels.
“Companies have faced climbing expenses for a prolonged period,” Mr Cooper added, “and consumer confidence has been dented. Meanwhile, creditors have become less tolerant in chasing outstanding debts, including HMRC, which has reverted to a more stringent stance.”
The figures show a fresh blow for businesses that had already endured a subdued Christmas trading season. Retailers and hospitality venues have struggled with low consumer spending, while VAT and PAYE arrears are being pursued more aggressively. Lawyer Gavin Kramer from Collyer Bristow also warned: “Firms continue to struggle, and there are few clear signs of economic growth.”
Before January’s jump, overall insolvencies had been in decline since last June—but these numbers confirm that thousands of directors have now decided the best option is to close before spring’s raft of cost increases bite.
A Treasury spokesman declined to comment on the data.
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Insolvencies soar to 16-year high as tax hike drives bosses to close up shop

Britain has emerged as the most unpopular market worldwide among leading fund managers, as growth stalls and inflation lingers following Chancellor Rachel Reeves’s Budget.
A monthly survey by Bank of America reveals the UK is the least attractive country for investors, ranking below bonds, cash, energy and utilities in terms of appeal.
The findings come amid signs of a fragile domestic economy. Recent data showed GDP inching up just 0.1% in the final quarter of 2024, driven predominantly by a rise in government spending. The private sector, by contrast, contracted over the same period, and business investment has plunged since the Budget’s £25bn raid on employers’ National Insurance contributions.
Elyas Galou at Bank of America says the data illustrate a textbook case of “stagflation” in the UK: subdued growth coupled with stubbornly high inflation. “When I speak to investors, I often ask when they last heard positive news about the UK. They typically struggle to answer. It’s fundamentally a growth problem,” he notes.
Global investors are increasingly drawn to the US and the eurozone, with the UK experiencing outflows of $129bn since the Brexit vote in 2016, nearly half of the total assets managed by UK equity funds. Over the same period, US equity funds attracted $1.1 trillion in fresh money, underscoring a massive pivot away from Europe—particularly Britain.
While the Government aims to court foreign investment to spark long-term economic expansion, sentiment remains entrenched in negativity. The Chancellor’s recent visit to China and rekindled trade talks with India highlight Whitehall’s push to draw international capital, yet renewed faith in Britain’s growth story remains elusive.
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Investors pull back from UK as economic gloom deepens

Fuel Ventures, a leading UK venture capital fund, has co-led a £300,000 funding round in PlanningHub, a cutting-edge PropTech platform using AI to transform access to planning information for property development.
Designed to eliminate the inefficiencies of the UK’s complex planning system, PlanningHub provides instant, data-driven insights to developers, investors, and local authorities, helping to streamline decision-making and reduce planning risk.
As the first scalable AI solution of its kind, PlanningHub replaces time-consuming manual research with an automated, accurate, and efficient approach to planning data. The investment will enable the company to accelerate its mission to modernise the planning system, a move that could save the UK economy an estimated £1.2 billion annually and play a significant role in tackling the housing crisis.
Founded by graduates of the Antler accelerator programme, PlanningHub has rapidly gained recognition in the PropTech sector. The company has secured two prestigious UK Research and Innovation (UKRI) grants, including the highly competitive Smart Grant, awarded to top innovators across industries, and the Bridge AI Grant, which supports the adoption of artificial intelligence in key sectors. In 2024, PlanningHub was also selected from 150 applicants to join the Geovation PropTech accelerator, further cementing its position as a leader in the UK’s rapidly expanding PlanTechindustry.
Leading the company is CEO Ewa Moskwiak, who brings over 18 years of experience in planning and architecture, while CTO Professor Dr. Harald Braun, an expert in artificial intelligence, has a track record of founding seven successful tech startups. Together, they are spearheading PlanningHub’s mission to modernise and digitise the planning sector, making essential information more accessible, accurate, and actionable.
Commenting on the investment, Moskwiak stated: “This funding will allow us to further transform access to planning information, making the process faster, more accurate, and more efficient while expanding our impact across the public and private sectors. By enabling better decision-making and driving meaningful progress, we are bringing much-needed innovation to the planning industry and remain committed to empowering under-resourced public sector bodies, developers, property investors, and real estate professionals.”
Mark Pearson, Founder of Fuel Ventures, expressed his enthusiasm for the project, adding: “PlanningHub brings a fresh perspective to the challenges of the planning system, offering automation tools that streamline processes and reduce inefficiencies. Their focus on resolving issues like planning delays and development uncertainties is driving meaningful progress. We’re delighted to back their vision and are eager to see the benefits they will bring to local authorities and developers alike.”
With this latest investment, PlanningHub is set to revolutionise how planning data is accessed and utilised, driving greater efficiency, reducing uncertainty in property development, and helping unlock much-needed housing and infrastructure projects across the UK.
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Fuel Ventures backs PlanningHub’s AI-powered solution to modernise UK property planning

London-based startup IMPOSSIBREW has successfully closed its latest Crowdcube fundraising round, securing £1,575,390—more than three times its original £500,000 target.
Founded by Mark Wong, the company is redefining alcohol-free drinking with its patent-pending Social Blend technology, which naturally enhances relaxation while delivering an authentic beer experience.
The funding round, which valued IMPOSSIBREW at £12 million pre-money, attracted 1,204 investors, including high-profile backers such as Frazer Thompson, founder of Chapel Down, a former Global Brand Director of Heineken, and Jacopo Di Vonzo, founder of Remeo Gelato. With this investment, the company plans to accelerate strategic growth, expand retail partnerships, and drive further innovation.
Dry January 2025 saw record-breaking sales for IMPOSSIBREW, reflecting the growing demand for high-quality alcohol-free alternatives. The company generated over £500,000 in total sales for the month, nearly doubling the previous year’s figures, and recorded its first-ever six-figure revenue week in early January. Over the past 12 months, IMPOSSIBREW has sold more than one million cans, with a beer now being sold every 15 seconds via its website. The brand’s reach has grown significantly, with 18 million people engaged during Dry January alone, and its dominance in the alcohol-free category was evident as it captured 85.3% of all ‘alcohol-free beer’ searches in the UK at the peak of the month. Google Trends data also showed a 200% surge in searches for IMPOSSIBREW between late December and mid-January.
The alcohol-free market continues to thrive, with the sector expected to surpass alcoholic drinks by 2026, according to Statista. Consumer habits are changing rapidly, with 32% of Brits reducing their alcohol intake in the past year, according to Mintel. Research has shown that 51% of drinkers primarily miss the ‘buzz’ of alcohol—an experience IMPOSSIBREW directly addresses through its functional beer. Recent consumer surveys reveal that 70.6% of customers report feeling relaxation effects, while 87.7% have reduced their alcohol consumption since discovering IMPOSSIBREW.
Mark Wong’s journey to creating IMPOSSIBREW was deeply personal. Having developed a passion for beer and wine at a young age, he became one of the highest-scoring French Wine Scholars by the age of 18. However, in 2019, a serious health diagnosis forced him to give up alcohol entirely. Frustrated with the lack of satisfying alcohol-free alternatives, Wong came across the Kissa Yojoki, a 1211 AD Japanese text detailing the relaxation benefits of natural herbs. Inspired by this discovery, he partnered with Dr. Paul Chazot at Durham University to develop Social Blend, a revolutionary formula that combines ancient wisdom with modern science. The result was a completely new category of functional drinking—an alcohol-free beer designed not just to taste good, but to help consumers unwind naturally.
IMPOSSIBREW’s success comes despite being rejected on Dragons’ Den in 2022, just six months after launching. The Dragons raised concerns about pricing, market penetration, and early-stage revenue, with turnover at the time sitting at just £10,000. However, since then, the company has defied expectations, achieving a remarkable 299% three-year compound annual growth rate between 2021 and 2024. Following its rejection, IMPOSSIBREW turned to Crowdcube, raising £750,000 in 2022—far surpassing its original £400,000 target within just 10 minutes of launch. Today, that £45,000 investment the Dragons declined would be worth over £1 million.
Reflecting on the company’s growth, Wong sees the Dragons’ Den experience as a turning point. While the show did not secure them funding, it provided invaluable validation that there was a real demand for a third choice beyond drinking and not drinking. The response following the appearance was overwhelming, proving that consumers wanted more than just alcohol-free beer—they wanted an alternative that delivered the full experience of drinking, without the alcohol. Three years later, IMPOSSIBREW has established itself as the leading alcohol-free beer brand in the UK, with sustained year-round growth and an expanding consumer base.
Looking ahead, IMPOSSIBREW is focused on scaling production to reduce costs and enhance savings for customers, while expanding its retail and trade partnerships to improve accessibility. The company is also working to enhance the at-home drinking experience, making alcohol-free weeknight enjoyment more seamless. Wong sees the next phase of IMPOSSIBREW’s journey as a transition from a research-driven phase to a more public presence, ensuring that the brand meets consumers where they are.
Speaking about the future, Wong remains optimistic, stating, “We’re moving from a research phase into a more public phase, meeting consumers where they are. Our mission is to make the future of drinking accessible to everyone, and this latest funding round brings us closer to that vision.” As the alcohol-free market continues its rapid growth, IMPOSSIBREW is well positioned to become a global leader in alcohol alternatives, proving that sometimes the biggest opportunities come from turning ‘no’ into a powerful ‘yes.’
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Impossibrew raises £1.57M in record-breaking crowdfunding round as demand for alcohol-free beer surges