Month: February 2025

Google has quietly abandoned its long-held promise not to use artificial intelligence for weaponry, declaring that “free countries” should be able to harness the technology for national security purposes.
The policy shift emerged when two senior figures, James Manyika (Google-Alphabet’s senior vice-president) and Sir Demis Hassabis (chief executive of Google DeepMind), co-authored a blog post confirming the technology giant’s commitment to “support national security” in an increasingly tense geopolitical race for AI leadership.
The new stance marks a reversal of Google’s 2018 assurance that it would never use AI tools “whose principal purpose or implementation is to cause or directly facilitate injury to people”. That vow was adopted after staff walked out in protest against a Pentagon drone project. In the wake of the latest announcement, critics argue that Google risks undermining its values, noting that the company also removed its “don’t be evil” motto from its code of conduct when it restructured under parent entity Alphabet in 2015.
Manyika and Hassabis justified the change by highlighting the accelerating pace of AI innovation and pointing to the threat posed by China’s growing military interest in the technology. Beijing has earmarked AI as the future “revolution in military affairs” and is reportedly using the technology to develop advanced autonomous weapons systems. DeepSeek, a Chinese-developed AI chatbot, has already achieved results that in some tests surpass western competitors, fuelling concerns of a “Sputnik moment” in the sector.
Since the onset of generative AI, Google has faced internal strife over its links to the defence sector. In 2018, staff petitioned executives to withdraw from a US military drone initiative. There has also been friction over partnerships with foreign governments, notably in Israel. Adding to the debate, Geoffrey Hinton – dubbed the “godfather of AI” – quit Google in 2023, warning the technology could one day threaten humanity itself.
While critics lament Google’s apparent climbdown, company chiefs maintain that democracies must lead in AI development. They argue that collaboration between companies, governments and organisations that “share these values” will help ensure AI is harnessed responsibly – including for national defence.
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Google reverses pledge against AI-driven weapons to champion ‘free world’ security

Citigroup has confirmed it will press ahead with hybrid working for most of its global workforce, bucking a growing shift among Wall Street rivals towards five days a week in the office.
The US banking giant’s chief executive, Jane Fraser, recently assured managing directors that Citi staff may continue working up to two days a week remotely.
The decision contrasts sharply with other major institutions such as JPMorgan Chase, which last month ordered employees to return to full-time office attendance. Barclays has also followed suit, stipulating three days a week at its London headquarters, up from two.
Despite Citi’s flexible stance, the bank is stepping up scrutiny of staff attendance, using security pass data to ensure they come in at least three days a week. It employs 229,000 people globally, including 14,000 in the UK. Citigroup’s long-term commitment to office space is underscored by a £1bn renovation of its Canary Wharf skyscraper, due for completion in 2026.
The hybrid model stands in stark contrast not only to many peers in finance but also to sectors beyond banking. The Trump administration recently offered redundancy packages to a large share of US government workers refusing a full-time office return, while Amazon chief executive Andy Jassy has insisted on five days in the office for his workforce since January.
Jane Fraser says the hybrid policy gives Citi an edge in recruiting talent and supporting a healthy work-life balance, though critics argue in-office proximity fosters better collaboration and mentorship. Citigroup declined to comment beyond Fraser’s earlier statements.
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Citigroup bucks ‘return to office’ trend by committing to hybrid working

The Sun, Britain’s highest-circulation tabloid, is rolling out a new subscription service—dubbed “Sun Club”—priced at £1.99 a month.
Launching on Tuesday, it will charge readers for selected star columns, including those by Jeremy Clarkson, as well as popular features such as the “Dear Deidre” agony aunt and exclusive investigations.
The move marks the publisher’s return to a paid-content strategy a decade after scrapping its previous paywall in December 2015, when it was deemed to have cut The Sun’s overall digital audience too sharply. This time, the partial paywall aims to capitalise on in-demand content by hosting exclusive videos, alongside contributions from other high-profile columnists like Rod Liddle, Loose Women’s Jane Moore and political editor Harry Cole.
The new Sun Club membership also offers access to long-running deals, such as the “Holidays from £9.50” promotion—until now restricted to print buyers and app subscribers. Editor-in-chief Victoria Newton said: “The Sun has always offered readers more than a paper. Sun Club will help us expand our offer to audiences even further.”
The decision follows similar moves by rival publishers, such as the Daily Mail, which introduced its own paid online service—Mail+—starting at £4.99 a month in early 2024. With increasing downward pressure on print revenues and uncertainty in advertising markets, The Sun is hoping that targeted paid content will help generate a new source of digital income while retaining its core readership.
Previously, The Sun pioneered a full paywall in August 2013, leveraging Premier League football highlights to boost uptake. However, despite attracting around 200,000 paying subscribers, the publication abandoned the model in favour of reaching a wider free audience amid competition from competitors like MailOnline. The reintroduction of subscriptions suggests a recalibration, underlining the continued challenges facing UK newspapers in the search for sustainable business models.
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The Sun introduces monthly membership fee for Clarkson columns and exclusive content

Nigel Farage has reiterated his belief that Britain’s post-Brexit agreement with the EU is ripe for improvement, although he gave scant detail on what shape those changes might take.
Speaking on BBC Radio 4’s Today programme, the Reform UK leader argued that the UK should remain “friendly” with Brussels, but avoid deepening “industrial collaboration” that he claims would reduce the nation’s flexibility in forging trade deals with partners such as the US.
Farage’s remarks followed a YouGov poll that placed his party narrowly ahead of Labour for the first time. Asked whether closer ties with the EU might serve the national interest, he insisted the Johnson-era Brexit deal was “not very good” and needs refining. Even so, he pushed back against any agreement that would open British waters to further European fishing rights, or, in his words, take “steps … back towards a failing European Union”.
Despite polls suggesting a public appetite for improved EU relations, Farage said the referendum result was “very, very clear”. He maintained that Britain should instead look outwards to secure stronger trade relations around the globe, rather than reorienting towards Brussels.
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Farage insists UK’s Brexit deal can be improved but fails to say how

UK grocery inflation has slowed for the first time in six months, offering a measure of respite to households grappling with persistent cost-of-living pressures.
According to the latest data from Kantar, supermarket prices rose 3.3% in January, down from 3.7% in December. Toilet roll and cat food costs dipped, while chocolate, butter and chilled juices edged higher.
Analysts suggest that intense competition among retailers has helped bring inflation down, as promotions surged to their highest level in four years. More than a quarter of all sales—27.2%—in the four weeks to 26 January were on discounted items, up 9.4% on the wider market. Kantar’s head of retail and consumer insight, Fraser McKevitt, said: “Supermarkets were dishing out the discounts this new year, and consumers responded. Spending on promotions rose year on year by £274m.”
Meanwhile, own-label ranges—particularly premium lines—reached a record high of 52.3% of overall supermarket sales. Consumer demand for budget-conscious and higher-quality alternatives contributed to the shift in buying patterns over the festive period and into the new year.
Official data showed overall UK inflation easing to 2.5% in December, down from 2.6% in November, heightening expectations that the Bank of England could cut its base rate from 4.75%. Grocery sales, however, increased by only 2.8%, lagging behind inflation—a sign that shoppers may be picking up fewer or cheaper items as they balance their budgets.
Among individual supermarkets, Lidl recorded the fastest growth, with sales up 7.4%, while Asda was the only major chain to see its sales decline by 5.2%. Tesco, the UK’s largest supermarket, benefited from rival weakness, increasing its market share to 28.5%. Online grocer Ocado retained its title as the fastest-growing retailer for the ninth consecutive month, up 11.3%, and co-owner Marks & Spencer also put in a robust performance, with store sales rising by 10.5%.
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Grocery inflation eases as supermarkets ramp up promotions for savvy shoppers

A new report suggests that a third of the UK’s small and medium-sized enterprises (SMEs) are relying on research and development (R&D) to power their growth plans for 2025.
Despite difficult economic conditions, the “Geared for Growth 2025” study by alternative finance provider Growth Lending indicates that strategic investments in technology, talent and innovation could help many firms stay competitive.
According to the findings, 33% of SMEs see R&D as central to innovation and long-term success, while 40% anticipate revenue growth of between 5% and 10% over the coming year. Investment in advanced digital tools and processes is also a key priority, with 16% of respondents highlighting technology integration—such as AI, automation and cloud computing—as a significant driver of their expansion plans.
This focus on R&D extends beyond new products. Many firms are harnessing innovation to refine operations and respond to shifting market demands, ensuring they stay relevant in fast-changing sectors. However, challenges remain. With skilled labour in short supply, 12% of SMEs cite talent shortages as a major obstacle, and 16% place talent acquisition at the heart of their strategy to secure future growth.
Commenting on the research, Kimberley Martin, managing director at Growth Lending, said: “The challenges of the current economic environment persist for SMEs. With rising costs and talent shortages creating additional barriers to growth and innovation, businesses must focus on strategic investments to stay competitive.
“R&D is a critical growth driver, allowing businesses to innovate and adapt to shifting market demands. The difficulty is that traditional funding options don’t always meet the needs of high-growth businesses, with rigid criteria and long application processes restricting their eligibility. To bridge this gap, alternative lenders can offer the flexibility and understanding required to support ambitious SMEs, enabling them to overcome these barriers, invest in innovation, and build resilience throughout 2025.”
With technology and talent at the forefront of their plans, UK SMEs appear increasingly confident they can weather economic uncertainties. Whether looking to scale rapidly or simply stand apart from the crowd, many are relying on R&D and digital transformation to secure a competitive edge in the year ahead.
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A third of UK SMEs back R&D for growth in 2025

President Donald Trump’s decision to impose tariffs on imports from neighbouring Canada and Mexico has set off a trade war, sparking warnings about potential cost increases on a host of everyday items in the United States.
The White House maintains the tariffs will protect American industry, but critics argue they will simply inflate prices for US consumers. Here are six areas where tariffs could result in higher costs.
Cars
Car assembly in North America often involves components that cross US, Canadian and Mexican borders multiple times. With tariffs on imported parts, manufacturers are widely expected to pass extra costs on to buyers.
Estimated rise: TD Economics predicts car prices could jump by roughly $3,000 (£2,400). Tariffs disrupt decades of near-seamless trade in the automotive sector, which has previously kept prices relatively low.
Beer and spirits
Popular Mexican beers—such as Corona and Modelo—could become more expensive if importers opt to push increased import duties onto customers instead of scaling back supplies. Modelo became the number one beer brand in the US in 2023 and remains in the top spot, for now. This shift may affect millions of shoppers.
Spirits face a similar threat. Production of Bourbon, Tennessee whiskey, Canadian whisky and tequila is largely tied to their places of origin. If tariffs bite and cross-border costs climb, prices could rise for whiskey enthusiasts—and for anyone partial to a tequila-based tipple.
Houses
US home builders rely heavily on Canadian lumber, and new tariffs could push up the cost of materials. Given that most American homes are constructed with wood frames, higher lumber prices risk slowing construction, driving up home-buying costs and deterring developers from new building projects.
Maple syrup
Canadians produce about three-quarters of the world’s maple syrup, particularly in Quebec. With fresh tariffs looming on Canadian goods, imports may shrink or become costlier. Economists expect that the beloved breakfast staple will see a direct price rise—an unwelcome prospect for anyone who favours Canadian syrup on their pancakes.
Fuel prices
Canada is currently America’s largest foreign supplier of crude oil. While Canada faces a 10% tariff on its energy exports (compared to 25% on many other goods), any retaliatory move by Canada to reduce shipments of thicker “heavy” crude could raise pump prices. Many refineries in the US rely on such heavy crude to produce gasoline, diesel and jet fuel efficiently.
Avocados
Mexico’s warm climate supports large-scale avocado production, with roughly 90% of avocados consumed in the US originating south of the border. If tariffs push up import costs or reduce supply, the resulting avocado shortage could see a spike in prices—particularly noticeable during peak demand times like Super Bowl Sunday, when guacamole is practically compulsory for many American households.
While the US has suspended tariffs on Mexico for a month, taxes on Canadian goods are scheduled to come into force shortly. Both Canada and Mexico have threatened robust retaliation if negotiations fail, leaving consumers facing an uncertain future at the checkout. If price hikes and reduced imports do materialise, it may reveal just how integrated—and fragile—North America’s supply chains really are.
Read more:
Six things that Americans could be paying more for under Trump tariffs

An estimated 1.1 million people in the UK missed the 31 January cut-off for submitting their annual self-assessment tax returns, according to HM Revenue and Customs (HMRC).
Each late filer now faces a penalty of at least £100, unless they can prove they had a valid reason for their delay.
HMRC revealed that more than 11.5 million taxpayers did manage to complete the process on time, with a flurry of last-minute activity on deadline day. Over 31,000 filed in the final hour before midnight. Self-assessment typically applies to those who are self-employed or have multiple sources of income, ensuring both their tax returns and any associated payments are processed.
While the official deadline for paying any owed tax was also 31 January, HMRC does not impose late payment penalties until 1 March. However, customers of Barclays were left scrambling at the last minute due to the bank’s IT problems, which delayed some tax payments on Friday. Barclays has since assured customers that no one will be left out of pocket as a result of its technical issues.
Penalties for missing the deadline
Those who did not file on time should submit their return promptly to avoid escalating fines. The penalty regime includes:
• An initial £100 penalty, even if no tax is due
• Additional daily penalties of £10 after three months, up to £900
• A further penalty of 5% of the tax due (or £300, whichever is greater) after six months
• Another 5% of the tax due (or £300) after 12 months
Late taxpayers also face further charges if they fail to settle any outstanding amounts, with penalties of 5% of the unpaid tax levied at 30 days, six months and 12 months, as well as interest on late payments.
Myrtle Lloyd, HMRC’s Director General for Customer Services, thanked those who managed to meet the deadline and urged late filers to submit returns swiftly to minimise the impact of penalties.
Anyone planning to challenge a fine must complete their return first, before submitting an appeal in writing or via a designated HMRC form. However, the tax authority has faced criticism from MPs over its customer service telephone lines—claims that HMRC chief executive Jim Harra vehemently denies, describing allegations of a “deliberately poor” phone service as “completely baseless”.
Online platforms such as eBay and Vinted are now obliged to disclose sales data for individuals who have sold 30 items or more, or earned at least £1,700. The change does not introduce any new taxes on these transactions; instead, it simply shares information to help HMRC cross-check individuals’ returns and ensure correct tax compliance.
With the self-assessment window now closed, HMRC’s message is clear: if you missed the deadline, file as soon as possible. Not only could you reduce the mounting penalties, but you can also start any formal appeal process should you believe you have grounds to contest the fine.
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Over one million taxpayers face fines after missing self-assessment deadline

Mark Stewart, chief executive of Gloucester-based Stewart Golf, has resigned from his role as one of the government’s “export champions,” citing frustration with what he calls Labour’s “anti-business policies” under Sir Keir Starmer and Rachel Reeves.
Stewart’s company, which manufactures electric golf buggies, exports half of its £7 million turnover to the United States.
His departure comes after the speech from the chancellor on Wednesday, where announcements on airport expansions, updated regulations, and investment in technology clusters were made  to bolster the UK’s growth prospects.
Having just returned from a trip to America, Stewart, 45, says the contrast in attitudes to business could not be starker. “I can’t be part of this,” he told The Times. “Every turn, there’s something that makes life more difficult for people trying to run small businesses like mine. I don’t feel we’re being supported or encouraged even to try and be better.”
He pointed specifically to Labour’s rhetoric as undermining British optimism, referencing the shadow chancellor’s comments about aspiring to “American-style optimism” during a trip on China’s bullet train. “Between you and the boss [Starmer], all you’ve done is talk down the UK,” he said.
Stewart also expressed dismay at government plans for stricter employment rights and what he sees as punitive taxes on business assets passed between family members, echoing widespread disquiet among SMEs. “We are good at what we do,” he said. “I don’t want to be worrying about day-one employment rights. I want to be making great golf trolleys and trying to sell them.”
The entrepreneur was one of about 400 “export champions” appointed by the Department for Business and Trade to share insights on growing overseas sales. While he praised the scheme’s intentions, he said burdensome policy measures had tipped him towards quitting.
Not all export champions share Stewart’s stance. Adam Sopher, co-founder of luxury popcorn producer Joe & Seph’s, chooses to remain. “It is better to represent as an export champion and have some influence than not be able to,” he said, noting that 30 per cent of his business comes from export sales. “The government can do more to help small companies expand into Europe, and I am keen to help.”
Sopher acknowledged that rising national insurance contributions and increased costs are hurting margins across the sector, but views the role of export champion as a chance to push for constructive policy solutions.
A Department for Business and Trade spokesperson thanked Stewart for his work but argued that “driving economic growth is our number one mission. Britain is back, open for business, and we’re focused on widening opportunities for businesses to export and break into new markets.”
Stewart’s resignation, however, underscores the mounting tension between smaller exporters and policy decisions that they feel hamper competitiveness—at a time when the government is making high-profile announcements aimed at spurring growth. Whether these new initiatives can quell dissatisfaction among key SME figures remains to be seen.
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Export champion quits over ‘anti-business’ stance, claiming Starmer and Reeves ‘talk down the UK’