Month: July 2025

Ocado’s chief executive Tim Steiner has blamed Chancellor Rachel Reeves’s tax rises for pushing up the price of groceries, warning it is “unrealistic” to expect businesses to absorb significant increases in labour costs without passing them on to consumers.
Speaking after the UK’s annual inflation rate rose to 3.6% in June, Steiner said the combination of higher employer National Insurance Contributions and a 6.7% increase in the minimum wage was fuelling price pressures in food retail and distribution.
“Am I surprised to see inflation coming through? Of course not,” he said. “You can’t increase the cost of labour in food production, food distribution and food retailing in the way that we have, with National Insurance increases and the minimum wage increases, and not expect to see prices move. That would have been a wholly unrealistic expectation if anyone had that.”
Food inflation ticked up from 4.4% to 4.5% in June, compounding the impact on households already grappling with rising grocery bills.
Retailers and industry groups have warned that the fiscal measures announced in Reeves’s autumn budget—including a £25 billion hike in employer NICs—would inevitably lead to higher prices on the shelves, as companies pass on increased labour and input costs.
Despite the pressures, Steiner insisted that Ocado Retail—the company’s online grocery joint venture with Marks & Spencer—was working to keep prices in check.
The average customer basket value rose by just 0.7% to £124.19 in the six months to 1 June, which the company said reflected a 1.4% increase in average item prices, far below the national food inflation rate.
“It’s not good to make people more expensive,” Steiner said, referencing the increased costs employers now face.
His comments come as Ocado Group reported a sharp turnaround in its financial results, posting a £612 million profit for the first half of the year, compared with a £153 million loss during the same period in 2024. The swing was largely driven by a revaluation of its stake in Ocado Retail.
Revenues in the group’s technology solutions business, which sells warehouse automation systems to global retailers, climbed 13.2% to £674 million. Sales at Ocado’s UK retail division rose 16.3% to £1.53 billion, although the unit posted a £25 million loss after tax.
Industry experts echoed Steiner’s warning that rising input costs are hitting retailers across the board. Balwinder Dhoot, director of the Food and Drink Federation, said:
“The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef and lamb climbing in price—alongside high energy and labour expenses—these rising costs are gradually making their way into the prices shoppers pay at the tills.”
Steiner also addressed the ongoing £190 million payment dispute with Marks & Spencer, describing the dialogue as “constructive”. M&S has withheld the payment amid a legal row over unmet performance targets related to the joint venture.
“We’ve got a very strong working relationship with them and spent a lot of time with them in the last few weeks,” Steiner said.
He added that Ocado had seen “very minimal, if any” disruption from the cyberattack that recently affected M&S systems.
Investors welcomed the results, sending Ocado shares up more than 12% when markets opened on Thursday.
With inflation, taxation, and wage costs continuing to squeeze margins, the political and economic pressure on the government is mounting—especially as food price hikes directly affect millions of consumers and voters. As speculation grows around further fiscal tightening in the Chancellor’s next Budget, retailers are warning that affordability may become the next crisis on Britain’s high streets.
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Ocado chief blames Reeves’s Budget for rising food prices as inflation climbs

The property boom driven by the remote working revolution appears to be over, with new figures showing house prices rising sharply in London and its commuter belt while once-popular pandemic escape zones are now seeing values fall.
Data analysed by estate agency Purplebricks using the latest House Price Index from the Office for National Statistics reveals that many of the rural and suburban areas that soared in value during the height of lockdown have now lost significant ground.
Areas such as Bath, north-east Somerset, the Cotswolds and South Hams in Devon—popular with city workers seeking gardens, fresh air, and home office space during the height of the work-from-home movement—have seen average property values drop by more than £20,000 over the last year.
These areas were previously among the biggest winners in the post-2020 property surge, with prices climbing by up to 15% between 2019 and 2020 as tens of thousands of Londoners left the capital. But demand has since waned, and the market is adjusting.
In contrast, London’s outer boroughs and commuter hotspots are now driving price growth, reflecting a reversal of pandemic-era trends. Three Rivers in Hertfordshire, bordering the London Borough of Watford, recorded a 13% annual price increase—equivalent to around £79,000.
Other top performers include Kingston upon Thames and Bromley, where prices have jumped by 8–9% year-on-year, adding nearly £50,000 in value on average. Tunbridge Wells, Waltham Forest, Southwark, and Elmbridge also ranked among the top 10 areas for price growth, all within roughly an hour’s commute to central London.
Although central parts of the capital such as the City of London, Westminster, and Islington saw house prices fall earlier in the year, recent data shows a rebound. In June, values in Camden surged by 9%, the City by 8%, and Kensington and Chelsea by 3% in just one month—adding tens of thousands of pounds in a matter of weeks.
Overall, house prices in England have increased by 3.4% in the past year, while prices in Wales and Scotland rose by 5.1% and 6.4%, respectively. The average house price now stands at £290,000 in England, £210,000 in Wales, and £192,000 in Scotland.
According to Purplebricks, falling interest rates and declining mortgage costs are contributing to renewed optimism in the housing market. The Bank of England base rate now stands at 4.25%, down a full percentage point over the past year, with economists widely expecting a further cut when the Bank’s Monetary Policy Committee meets on 7 August.
Tom Evans, Sales Director at Purplebricks, described the current outlook as “great news” for homeowners and first-time buyers alike.
“The falling interest rates over the last 12 months have helped drive down mortgage rates and drive up property prices—and the forecast base rate cut in August should continue that trend.
We are confident house prices will continue to rise into next year, meaning your home at the start of 2026 will be worth more than it is today.”
Robert Nichols, Managing Director of Purplebricks Mortgages, said the Government’s new ‘Helping Hand’ scheme is also boosting market confidence.
“This is the best time to be a first-time buyer in recent years,” he said, referring to the scheme aimed at improving mortgage access for those struggling to get on the property ladder.
The Centre for Cities think tank reported last year that London was already showing early signs of recovery from the pandemic exodus. That recovery now appears to be in full swing.
The latest population estimates from the Office for National Statistics suggest London had 8.945 million residents as of mid-2023, driven in large part by international migration.
With offices refilling, consumer spending rebounding, and housing demand returning to the capital and its fringes, the era of remote-working-fuelled property growth in rural Britain may be drawing to a close.
The “race for space” is giving way to a new chapter—one where proximity to the capital’s resurgent economy, even in the hybrid work era, is once again king.
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The remote work property boom ends as London and commuter towns see house prices soar

The UK government has dropped a flagship plan to introduce a green taxonomy — a framework designed to standardise carbon emissions calculations and prevent companies from exaggerating their environmental credentials.
The decision comes after a public consultation into the proposed policy, which would have required companies and investment funds to be more transparent and rigorous when making environmental claims. The move was widely seen by campaigners and sustainable investment groups as a critical step in fighting “greenwashing” — the practice of overstating environmental performance to appeal to eco-conscious investors and consumers.
In a statement, the Treasury said: “After careful consideration of the responses, the government has concluded that a UK taxonomy would not be the most effective tool to deliver the green transition and should not be part of our sustainable finance framework.”
It added that other regulatory measures are now a higher priority for accelerating private sector investment into the transition to net zero and that the taxonomy would have offered limited additional benefit over existing frameworks.
The decision has prompted criticism from the sustainable investment community. The UK Sustainable Investment and Finance Association (UKSIF), which represents 300 members managing £19 trillion in assets, described the move as “disappointing”.
According to the Treasury, while 45% of the 150 consultation responses supported the proposal, 55% were mixed or negative. Critics pointed to practical challenges with implementation and questioned whether the taxonomy would add significant value when compared to existing EU and global frameworks.
Nevertheless, campaigners say the abandonment of the plan leaves a gap in the UK’s green finance strategy. Unlike in the EU, where a taxonomy is already in use to determine which economic activities can be labelled as environmentally sustainable, the UK now lacks a unified classification system. As a result, companies and fund managers remain largely free to market investments as “green” or “sustainable” without a consistent set of criteria to verify those claims.
“There was limited evidence of a compelling use case for a specific UK taxonomy that would achieve outcomes which could not be otherwise achieved using existing taxonomies or market frameworks,” the Treasury concluded.
Separate rules from the Financial Conduct Authority (FCA) introduced earlier this year — including tighter rules around the naming and labelling of ESG funds — are already in place to tackle misleading green investment claims. The Competition and Markets Authority (CMA) and Advertising Standards Authority (ASA) have also taken action to challenge misleading sustainability claims by firms.
Some large companies operating in the UK continue to voluntarily use the EU’s taxonomy to guide their reporting and ESG disclosures. However, the lack of a UK-specific framework could now create fragmentation and confusion among investors and consumers.
The move comes at a time when global scrutiny of green finance is intensifying. Critics argue that without a clear and credible taxonomy, the UK risks falling behind in ensuring that sustainable investments deliver real-world environmental impact.
Environmental groups and finance experts are now calling for renewed efforts to ensure that other tools in the sustainable finance framework are sufficiently robust to deter greenwashing and promote transparency.
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Government ditches plan to stop businesses ‘greenwashing’ by scrapping green taxonomy

Unemployment in the UK rose to a four-year high of 4.7% in May, according to new figures from the Office for National Statistics (ONS), fuelling expectations that the Bank of England could cut interest rates again in August.
The increase from 4.6%—which caught economists and the Bank itself by surprise—comes alongside signs of a broader slowdown in the labour market, with wage growth easing and payroll numbers shrinking. The data reinforces concerns that the UK economy is losing momentum, and strengthens the case for further monetary easing to avoid a deeper downturn.
Average weekly earnings (excluding bonuses) fell to 5% from 5.3%, while wages including bonuses also dipped from 5.4% to 5%, broadly in line with forecasts. Meanwhile, the latest payroll estimates show a monthly fall of 41,000 jobs in June, following a revised 25,000 drop in May. Over the past year, payrolls have contracted by 178,000, or 0.6%, with much of the decline concentrated in the months following the government’s hike in national insurance contributions.
Governor Andrew Bailey said earlier this week that the Bank is “ready to act” if the labour market deteriorates further. Since the start of 2025, the Monetary Policy Committee (MPC) has already cut interest rates twice, bringing them down from 5.25% to 4.25%. Financial markets are now pricing in a third cut to 4% at the Bank’s next meeting in August.
However, the MPC faces a delicate balancing act. June’s inflation figures showed consumer prices rising by 3.6%, up from 3.4% the previous month, well above the Bank’s 2% target. Despite this, private sector wage growth on an annualised basis has fallen to 3.7%—a figure rate-setters will take some comfort from, as they aim for a sustainable level of 3% wage growth to align with their inflation target.
Ben Harrison, director of the Work Foundation, said the UK labour market is entering a “challenging transition” period. “More employers are holding back from hiring, the pace of pay growth is easing, but the number of people beginning to look for work is on the rise,” he noted. Despite the recent gains in real wages, Harrison pointed out that the average increase since the 2008 financial crisis equates to just £28 a week.
The rise in national insurance contributions has been cited by economists as a key contributor to the softening labour market, increasing costs for employers and prompting firms to curb hiring. Governor Bailey has acknowledged that the impact of the NICs rise on jobs and wages has been greater than anticipated.
The ONS also reported a notable fall in the economic inactivity rate, down 0.4 percentage points to 21%—its lowest level since 2019—as more people return to the workforce. However, the combination of a growing labour supply and shrinking payrolls has pushed the unemployment rate higher.
Job vacancies also continued to fall, dropping by 56,000 in the three months to June to 727,000—a three-year low.
Sanjay Raja, UK economist at Deutsche Bank, said the data will reinforce the Bank’s cautious stance, though not enough to justify a faster pace of rate cuts. “The labour market is loosening, but perhaps not as fast as the unrevised payroll data suggested. We continue to expect the Bank to proceed with a measured pace of one rate cut every three months.”
With the UK economy walking a tightrope between disinflation and stagnation, all eyes are now on the MPC’s August decision—where the trajectory of interest rates could be shaped as much by employment figures as by inflation data.
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UK unemployment reaches 4.7% as labour market cools, raising pressure for Bank of England rate cut

Trump Media and Technology Group, the parent company behind Truth Social, has announced that it has filed trademark applications for “Truth Social AI” and “Truth Social AI Search” as part of a wider plan to embed artificial intelligence features into its platform.
The company—listed on Nasdaq and NYSE Texas under the ticker DJT—said the new trademarks mark the start of a significant tech upgrade for the Truth Social ecosystem, which also includes streaming platform Truth+ and fintech service Truth.Fi.
According to the company’s CEO and Chairman, Devin Nunes, the AI functionality will be designed to offer users what he called “a one-stop-shop for reliable information, non-woke news, and entertainment.”
“Integrating AI into Truth Social will be a big push forward in our initiative to expand and enhance the platform,” Nunes said.
The new AI tools are expected to roll out across Truth Social’s mobile apps for iOS and Android, as well as the web version of the platform. While details remain limited, the trademark filings suggest the company is planning both generative AI tools and AI-powered search capabilities within the platform.
The move comes amid rising interest in political and alternative-media platforms integrating AI, both to surface content and provide custom user experiences. It also reflects broader industry trends, as social media networks race to incorporate AI-driven features.
Truth Social, which launched in 2022 and is backed by former President Donald Trump, has aimed to position itself as a “free speech” alternative to mainstream platforms like Twitter/X and Facebook.
Further details about the AI rollout and expected timeline have yet to be announced.
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Trump Media applies for AI-related trademarks as it plans AI rollout on Truth Social

Millennials are more likely than Gen Z to turn down a job offer if a company’s ethics and sustainability credentials do not align with their personal values, according to a new global report from the Graduate Management Admission Council (GMAC).
The annual Prospective Students Survey by GMAC—now in its 15th year—found that 27% of millennial respondents strongly agreed that a company’s ethical and sustainability practices would influence their decision to accept a job offer, compared to just 19% of Gen Z candidates.
In total, more than two-thirds (68%) of all prospective business school students surveyed said that corporate ethics and environmental performance would factor into their decision-making when considering employment offers.
“It’s often assumed that Gen Z leads the charge on social values, but our findings suggest a more complex picture,” said Nalisha Patel, Regional Director for the Americas and Europe at GMAC. “Millennials are actually more willing to walk away from job offers that don’t align with their ethics. It’s a clear reminder for companies that strong ethics and sustainability practices aren’t just nice to have – they’re essential if they want to attract and retain value-driven talent.”
The GMAC survey, which included responses from 4,912 prospective students across 147 countries, offers a detailed insight into the evolving motivations of the next generation of business leaders.
While the desire for a salary increase, career advancement and geographic mobility remain key drivers for enrolling in business school, many candidates are increasingly prioritising purpose-led employment.
The report also highlighted that 85% of prospective students believe corporations have a social responsibility to the countries and communities they operate in. However, 37% said they would prefer global companies to avoid getting involved in political events or conflicts—highlighting a nuanced view of corporate activism.
In addition to ethical concerns, the survey also revealed that corporate recruiters are increasingly seeking human-centric skillsets in new graduates. Emotional intelligence, adaptability, and problem-solving ranked among the top desired attributes from business school graduates—reflecting a shift from purely technical skills towards leadership qualities that support resilience and collaboration.
When it comes to career ambitions, consulting, financial services, and technology remain the most popular industries among business school candidates. These sectors are seen as offering not only higher earning potential, but also greater opportunities for influence, innovation and global mobility.
The findings present a dual challenge and opportunity for companies: the growing importance of values-driven employment means businesses must ensure that their sustainability and ethical credentials are not just performative, but embedded into their core operations and visibly communicated to prospective talent.
For business schools, the report reinforces the need to integrate ethics, ESG, and responsible leadership into management education curricula, particularly as candidates weigh not just where to study, but who they will work for after graduation.
As Patel concluded: “For today’s business school candidates, career decisions are not just about compensation—they’re about contribution. Employers who understand this shift and authentically align with these values will be the ones to watch.”
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Millennials outpace Gen Z in rejecting jobs over ethics and environmental concerns

HM Revenue and Customs (HMRC) has been heavily criticised by MPs for not knowing how many billionaires pay tax in the UK, despite the limited number of individuals involved and the potentially vast sums at stake.
In a new report published by the Public Accounts Committee (PAC), MPs warned that HMRC must do more to understand and ensure how much the wealthiest are contributing to the public purse.
The report revealed that HMRC currently has no reliable method of tracking billionaire taxpayers, even though public interest in how much the ultra-wealthy contribute has never been higher.
“There is much public interest in the amount of tax the wealthy pay,” the report noted. “People need to know everyone pays their fair share.”
PAC member Lloyd Hatton said the issue was not about political arguments over wealth redistribution but about making sure HMRC is fit for purpose.
“This is about ensuring wealthy people pay the correct tax,” said Hatton. “While HMRC deserves some credit for increasing the tax take from the wealthiest in recent years, there’s still a very long way to go.”
The committee expressed disappointment that HMRC could not provide data on billionaire tax arrangements from its own systems, suggesting that “any single one of these individuals’ contributions could make a significant difference to the overall picture”.
MPs recommended that HMRC draw on sources like artificial intelligence and The Sunday Times Rich List to create a clearer understanding—citing the US Internal Revenue Service, which uses the Forbes 400 to track high-net-worth individuals.
At present, around 1,000 HMRC staff are dedicated to the tax affairs of the UK’s wealthiest individuals, though an additional 400 roles are being funded to step up this work, with a particular focus on increasing the number of tax evasion prosecutions.
A government spokesperson said: “The government is determined to make sure everyone pays the tax they owe. Extra resources were announced in the recent spending review which allows us to significantly step up our work on closing the tax gap among the wealthiest.”
The report comes amid growing scrutiny of offshore wealth, tax planning schemes and perceived inequality in the tax system. With the public finances under strain and a heightened focus on fairness, MPs are urging HMRC to be more ambitious in monitoring and collecting tax from the ultra-wealthy.
While recent years have seen a notable rise in HMRC’s enforcement efforts, the PAC says the department still lacks the tools, technology, and strategy to provide a full accounting of what billionaires owe—and what they are actually paying.
As pressure mounts on the Treasury to boost revenues without raising taxes on the general population, increasing transparency and compliance at the very top of the wealth ladder is becoming a political and economic imperative.
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MPs slam HMRC over lack of data on billionaire taxpayers in the UK

Tennis champions Jannik Sinner and Iga Swiatek may have lifted Wimbledon trophies this summer—but their victories come with a costly UK tax bill of more than £1 million each, according to leading tax experts.
Audit, tax and business advisory firm Blick Rothenberg has warned that despite not being UK tax residents, both the Italian men’s singles champion and the Polish women’s winner will face substantial tax liabilities on their UK earnings.
Robert Salter, Director at Blick Rothenberg, explained that while the players may not live in the UK, their £3 million Wimbledon prize money is still taxable under HMRC rules, alongside elements of their commercial income.
“Wimbledon will be obliged to operate withholding tax, at a flat rate of 20%, on the prize money that they pay to these stars,” said Salter. “However, Jannik Sinner and Iga Swiatek will ultimately be taxed in the UK at the top rate of 45% on their winnings—less any allowable business expenses they can deduct.”
In addition to their prize earnings, a portion of each player’s image rights income may also fall under the UK tax net, as HMRC considers this to be partly sourced from their presence and publicity during the tournament.
Salter added that while international tax law gives HMRC a clear legal basis to tax non-resident athletes on UK-sourced earnings, the UK’s system remains one of the least favourable for global sports stars.
“Many countries—including Germany—offer far more generous tax treatment to travelling athletes,” he said. “The UK’s relatively punitive regime has previously deterred stars like Usain Bolt and Rafael Nadal from participating in certain UK events, due to the financial impact.”
That said, Wimbledon remains one of the most prestigious events in the global sporting calendar, and its profile continues to attract top-tier athletes despite the associated tax burden.
While the organisers benefit from unparalleled visibility and global recognition, the players are left to weigh the cost of glory against their HMRC bill. For champions like Sinner and Swiatek, a Grand Slam title may be priceless—but the taxman still takes a significant share.
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Wimbledon winners face £1m UK tax bills despite non-resident status

A sharp decline in demand from pension funds for long-term UK government bonds could drive up the country’s borrowing costs by at least £20 billion over the coming decades, according to the Office for Budget Responsibility (OBR).
The government’s independent fiscal watchdog warned that the shrinking appetite for gilts among defined benefit (DB) pension schemes—once a reliable cornerstone of long-term bond ownership—will have major implications for public finances.
David Miles, a member of the OBR’s budget responsibility committee, described the outlook as “worrisome”, telling MPs that the UK is entering a new era in which one of the most dependable buyers of government debt is disappearing.
“You’ve got to find people and induce them to hold bonds,” said Miles. “That means you’ve got to offer them a better deal.”
The OBR estimates that this shift could add 0.8 percentage points to long-term gilt yields, increasing debt servicing costs by £22 billion. That figure may be conservative, given that public debt—currently at 100% of GDP—is expected to rise significantly in the decades ahead.
Tom Josephs, another OBR committee member, echoed the warning: “If debt is rising and you need to attract even more buyers, then likely there will be a bigger fiscal effect.”
Defined benefit schemes have traditionally held gilts to hedge long-term liabilities, but most are now closed to new entrants. The pensions market has moved toward defined contribution (DC) schemes, which tend to hold fewer government bonds. As a result, the OBR expects demand for gilts from DB schemes to fall from around £1 trillion—30% of GDP—to just 11% by 2050, with the bulk of that shift occurring before the end of this decade.
The change is forcing the UK Debt Management Office to pivot towards issuing more short-term debt, which tends to be more costly and volatile. It also increases reliance on more “price-elastic” buyers such as foreign investors and hedge funds, who typically demand higher yields than domestic pension funds.
Richard Hughes, chairman of the OBR, explained: “Defined benefit pension funds used to be a source of safe demand, and we think that demand is going to wane—and already has. This means the government has to lure in more price-elastic buyers. That has implications for the cost of debt.”
The shift in bondholder composition could also heighten volatility. Patient, long-term investors are being replaced by speculative actors, leading to greater sensitivity to market movements. The International Monetary Fund has similarly raised concerns about the fiscal risks tied to this structural change in gilt ownership.
The Bank of England is also under pressure to moderate the pace of its quantitative tightening and bond sales, which some economists argue are exacerbating instability in the gilts market.
With the OBR projecting that UK public debt could rise to around 270% of GDP over the next 50 years, securing reliable sources of bond demand is becoming more critical—and more expensive.
Unless new long-term investors can be found, the government may face higher borrowing costs just as fiscal pressures from ageing demographics, healthcare, and defence continue to rise.
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Decline in pension fund demand for UK bonds could drive £20bn surge in borrowing costs, OBR warns