Month: February 2026

Youth unemployment has surged to its highest level in more than a decade, raising fears of a “lost generation” and intensifying expectations that the Bank of England will cut interest rates next month.
Figures from the Office for National Statistics show that in the three months to December 2025, the unemployment rate among 16 to 24-year-olds climbed to 16.1 per cent. That equates to nearly 740,000 young people out of work, an increase of around 120,000 in under a year.
In the first quarter of 2024, before the implementation of higher employer national insurance contributions and minimum wage rises, the youth unemployment rate stood at 14.2 per cent, or roughly 620,000 people.
The rise means young people account for nearly half of the total increase in unemployment across the economy over the same period, despite representing just 13 per cent of the working-age population.
Economists warn that while spikes in youth joblessness were seen during the 2008 financial crisis and the Covid-19 pandemic, the current rise is unusual because it has occurred without a comparable surge in unemployment among older age groups.
Peter Dixon, senior economist at the National Institute of Economic and Social Research, said younger workers were being “priced out of the market”. Louise Murphy of the Resolution Foundation noted that almost one in six young people who want to work cannot find a job.
Some analysts argue that recent fiscal policy changes have disproportionately affected entry-level employment. Increases in employer national insurance contributions and the compression of minimum wage differentials between age bands have raised labour costs for sectors such as hospitality, retail and leisure, industries that traditionally provide first jobs for school leavers and students.
Further pressure is expected in April when additional provisions of the government’s Employment Rights Act, including expanded sick pay entitlements, come into force.
Despite the deteriorating employment figures, there is a positive element within the data: economic inactivity among young people has returned close to pre-pandemic levels, suggesting more are seeking work. However, many are struggling to secure positions.
The softening labour market has reinforced expectations that policymakers will move to support growth. Financial markets are increasingly confident that the Bank of England will cut its base rate from 3.75 per cent to 3.5 per cent when its monetary policy committee meets on 19 March.
Analysts at Bank of America said the rise in unemployment and easing wage growth “keeps us comfortable with our base case of a March cut”, while ING economist James Smith described the latest jobs report as keeping the central bank “firmly on track” for a reduction.
In its most recent forecasts, the Bank of England acknowledged that downturns in employment often emerge first among younger cohorts, warning that current trends may signal broader weakness in labour demand.
With inflation easing and growth subdued, attention now turns to whether rate cuts can help prevent the recent spike in youth unemployment from becoming entrenched.
Read more:
Youth unemployment hits 11-year high as rate cut expectations build

Nearly nine in 10 higher-risk pension funds have failed to match the performance of the FTSE 100 over the past five years, according to new analysis that raises fresh concerns about retirement outcomes for millions of savers.
Research by Investing Insiders examined almost 13,000 personal and workplace pension funds holding more than £1tn in assets between December 31, 2020 and December 31, 2025. Funds in the medium-high and high-risk categories were benchmarked against the FTSE 100 over the same period.
The FTSE 100 delivered cumulative returns of 84.67 per cent over five years, turning £20,000 into £36,934 and £50,000 into £92,335.
By contrast, 89 per cent of pension funds in the higher-risk categories underperformed that benchmark. Of 7,370 funds analysed at these risk levels, 6,540 failed to keep pace with the index.
The worst-performing fund in the study, Zurich Assurance’s Zurich JPM Emerging Europe Equity Pn ZP GTR in GB, lost 98.59 per cent of its value over five years. A £50,000 investment in that fund would now be worth just £705 — more than £91,000 less than if the same sum had tracked the FTSE 100.
Other underperformers included funds linked to the collapsed Woodford Equity Income strategy and several UK property-focused vehicles, many of which suffered heavy losses during periods of market stress.
All of the 10 worst-performing funds were categorised as high risk, and 87.6 per cent of the 1,418 funds in that bracket failed to beat the benchmark.
In contrast, the best-performing fund in the study — Aviva Life & Pensions UK’s Aviva Pen Ninety One Global Gold Pn S6 GTR in GB — delivered returns of 180.28 per cent over five years, growing £50,000 to £140,140.
Investing Insiders estimates that the gap between the best and worst performers could equate to a difference of £139,000 on a £50,000 contribution over the same period.
Antonia Medlicott, founder of Investing Insiders, described the findings as alarming. “Some funds in the same risk category are almost tripling investments, while others are wiping out value,” she said. “Savers often assume their pensions are steadily progressing, but performance can vary dramatically.”
She argued that greater transparency is needed from providers, particularly when funds underperform benchmarks for sustained periods. She also urged individuals to take a more active role in reviewing their pension allocations.
While the FTSE 100 is a widely recognised benchmark, pension portfolios are typically diversified across global equities, bonds and alternative assets. As such, some fund managers argue that direct comparison with a single UK index may not fully reflect investment strategy.
Nevertheless, the scale of underperformance highlighted in the report underscores the impact of asset allocation, fund selection and risk profile on long-term retirement savings.
With retirement outcomes increasingly dependent on defined-contribution schemes, the findings add weight to calls for better default fund design and clearer communication to help savers avoid significant shortfalls in later life.
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Nine in 10 high-risk pension funds fail to beat FTSE 100 over five years

We sit down with James Doyle, Managing Director of Endeavour Group, a building safety consultancy and training provider supporting duty holders responsible for some of the UK’s most complex and high-risk buildings.
Based in the North West and operating nationally, Endeavour Group brings an evidence-led, engineering discipline to the built environment as regulatory scrutiny continues to increase.
With more than two decades of experience spanning offshore oil and gas, process safety and fire engineering, Doyle applies high-hazard industry methodologies to residential and commercial settings, helping organisations work through the requirements of the Building Safety Act with a clearer understanding of their responsibilities.
His team works with clients to strengthen building safety through intrusive assessments, safety case support and accredited training. As an approved ProQual training centre since 2018, the business delivers nationally recognised qualifications across fire safety, passive fire protection and health and safety, and is currently launching three new Fire Risk Assessment qualifications at Levels 3, 4 and 5.
Alongside its UK work, Endeavour has delivered UK-standard training internationally through remote delivery for several years. More recently, this has developed into direct conversations with overseas organisations, including engagement in Dubai, who are seeking to better understand how competence, evidence and decision making translate into live, occupied buildings.
In this interview, Doyle discusses the challenges duty holders face under the Building Safety Act, why evidential rigour matters, and the principles guiding decision making in a sector where the stakes are high.
What is the main problem you solve for your customers?
The single biggest issue our clients face is a lack of reliable information at a time when the expectations placed on duty holders have never been higher.
The Building Safety Act has transformed the regulatory landscape, yet many assessments across the UK are still carried out through visual surveys or templated reports that do not meet the level of evidence the legislation requires. That gap creates legal, financial and operational risk.
At Endeavour Group, our role is to give clients a clear picture. We carry out intrusive compartmentation surveys, fire risk assessments, building risk reviews, safety case reports, resident engagement support, remedial action planning and ongoing compliance management, all underpinned by photographic evidence, technical justification and structured reasoning. Every finding is linked back to fire strategy intent and the statutory definition of a relevant defect so there is no ambiguity about what the issue is or why it matters.
Through our partnership with Riskflag, we also support clients with a digital golden thread that organises their evidence, actions and decision making in an auditable way. When people work with us, they gain confidence and a route to compliance.
What made you start your business?
Endeavour Group began in 2018 after I moved from more than two decades working in offshore oil and gas, process safety and fire engineering. In high-hazard environments, assessment quality, intrusiveness and evidential strength are not optional. You learn very quickly that reassurance means nothing if it is not supported by facts.
When I stepped further into the built environment, I could see an increasing gap between what the legislation would ultimately demand and what was being delivered on the ground. Many reports were non-intrusive. Many conclusions were based on assumptions rather than evidence. Organisations responsible for buildings were making important decisions without the technical understanding to identify risk properly.
I created Endeavour because the sector needed a consultancy that applied engineering discipline, communicated clearly and delivered assessments that could stand up to legal and regulatory challenge. What began as a specialist consultancy has grown into a national capability supporting high-rise residential, supported living, student accommodation, retail, commercial, education and transport.
What are your brand values?
For us, competence, clarity and integrity are not marketing terms. They are the foundations of how we work.
Competence means having the technical depth to interpret fire strategy, identify relevant defects, challenge assumptions and build evidence that supports decisive action. Clarity means presenting findings in a way that duty holders, residents and regulators can understand without ambiguity. Integrity means reporting what the evidence shows rather than what people hope to hear.
These values guide how we approach every survey, every safety case and every piece of advice we give.
Do your values define your decision making process?
Yes, completely. We always ask ourselves: would this stand up to regulatory, legal or third-party scrutiny? If the answer is no, we refine it.
Through years of working with the regulator we understand their role in asking the ‘what if’ question, and we ensure that our reports comprehensively satisfy this requirement with appropriate mitigation. We test our findings and their failure modes adapted from offshore safety case methodology, which ensures every conclusion is traced back to justification.
The same standard applies to our training centre, where evidential discipline underpins everything we deliver.
Is team culture integral to your business?
It is essential. Our team is our strength.
The work we do spans high-rise residential, student living, supported living, care environments, commercial and educational settings. Each brings its own challenges, and our ability to deliver depends on a culture built on openness, technical curiosity and shared accountability.
That collaborative approach also supports our international conversations, where the emphasis is on sharing experience and understanding how similar challenges are managed in different operating environments.
In terms of your messaging, do you communicate clearly with your audience?
Clarity is central to everything we do. Building safety is technical, but communication should not be.
Our reports explain the issue, the evidence, the risk and the action required in straightforward language. We avoid jargon and prioritise giving duty holders information they can use immediately. The same approach shapes our training, where real-world examples help learners understand how legislation applies in practice.
What is your attitude to competitors?
There are organisations in the sector that deliver excellent work, but there is still significant variation in standards.
We regularly see surveys that lack intrusive inspection or fail to link findings back to the definition of a relevant defect. These reports may reassure people in the moment, but they do not provide the level of evidence required under the Act.
What we do is driven by quality, not comparison. We know our methodology is robust because our evidence has already changed outcomes, including cases where developers have accepted responsibility for defects once they reviewed our findings. Strong evidence drives accountability.
What advice would you give to anyone starting a business?
Focus on building deep expertise and do not compromise your standards. Consistency, honesty and high-quality work are far more valuable than volume.
Surround yourself with people who share your approach and invest in their development. If you concentrate on doing things properly, reputation and growth will follow naturally.
What three things do you hope to have in place within the next twelve months?
First, the full launch of our Building Safety Masterclass to help duty holders understand relevant defects, liability pathways and evidential requirements under the Act.
Secondly, increasing the portfolio of higher-risk buildings being managed and achieving successful Building Assessment Certificate approvals.
And third, continuing to explore international conversations, including recent engagement in Dubai, where organisations operating complex, occupied buildings are asking similar questions around competence, accountability and how UK-standard training and assessment translate into real-world decision making.
Read more:
Getting To Know You: James Doyle, Managing Director of Endeavour Group

Small businesses are bracing for what they describe as an “unprecedented cost crunch” in April, with more than a third warning they may shut down or scale back operations as a raft of higher expenses take effect.
The Federation of Small Businesses (FSB) has written to Rachel Reeves warning that the cumulative impact of rising energy bills, business rates, higher employment costs and changes to statutory sick pay risks undermining economic growth.
A survey by the FSB found that 35 per cent of small firms plan either to close or reduce output over the coming year in response to increased energy standing charges, a rise in the national living wage and higher dividend tax rates.
Tina McKenzie, the FSB’s policy and advocacy chair, said the burden of new costs would directly affect firms’ ability to invest. “Running a small business is about to get a lot more expensive,” she wrote. “If profits are squeezed by government policy, businesses cannot grow.”
The FSB estimates that an employer with nine staff paid at the national living wage will see annual employment costs increase by £25,850 between January and April 2026, a 12.9 per cent jump.
It also calculates that a typical small shop or restaurant will see business rates rise from £4,790 to £5,590 this year, while changes to dividend tax, a common way for owner-managers to draw income, will cost an additional £578 annually on earnings of £50,000.
The removal of the lower earnings limit for statutory sick pay is expected to add further pressure. The FSB estimates the change will cost a nine-employee firm around £990 a year.
Jane Wiest, who runs Initially London, a retailer specialising in monogrammed products, said improving sales had been overshadowed by higher taxes and operating costs.
“We had a strong January, but then these taxes started to hit,” she said. “You’re trying to work out how the money coming in will cover the expenses going out. It makes it hard to hire or invest because you’re carrying this constant burden.”
Sarah Curtis, who operates a historic boatyard in Ipswich, said rising wages and utility bills were making recruitment increasingly difficult.
“There are so many small increases, utilities, wages, rates, and they all add up,” she said. “Small businesses are very reluctant to take on anyone new.”
The FSB argues that the combined effect of cost increases risks deterring hiring and curtailing expansion plans at a time when policymakers are seeking to boost economic growth.
While ministers have defended the measures as necessary to improve worker protections and fund public services, business leaders warn that smaller firms, often operating on tighter margins and with limited access to affordable finance, are particularly exposed.
With April approaching, small employers say they face a stark choice: absorb higher costs, raise prices or pull back on activity, each with potential consequences for jobs and local economies.
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Small businesses warn of April ‘perfect storm’ as costs surge

The owners of Virgin Media O2 have agreed a £2bn takeover of challenger fibre network Netomnia, marking a significant step towards consolidation in Britain’s crowded broadband market.
Liberty Global and Telefónica, alongside InfraVia Capital through their Nexfibre joint venture, will acquire Netomnia, currently the UK’s second-largest alternative network provider.
The deal will expand Nexfibre’s footprint to around 8 million households by the end of next year. Combined with Virgin Media O2’s existing infrastructure, the enlarged network will cover approximately 20 million premises and serve about 6.2 million customers.
That scale brings it close to Openreach, the network arm of BT Group, which has passed just over 21 million premises with full fibre.
Shares in BT fell 2.5 per cent following news of the acquisition.
Founded in 2019, Netomnia is one of dozens of “altnets” that emerged to challenge the dominance of Openreach and Virgin Media O2. However, many smaller fibre operators have paused expansion amid higher borrowing costs and weaker-than-expected customer take-up.
Rajiv Datta, chief executive of Nexfibre, said the enlarged group would offer greater scale to wholesale partners, including Sky, which recently began using CityFibre’s network in addition to Openreach.
The transaction saw Virgin Media O2 beat CityFibre, backed by Goldman Sachs, which has previously positioned itself as a natural consolidator of the fragmented sector.
Simon Holden, chief executive of CityFibre, criticised the move, warning it risked recreating an “ineffective duopoly” between BT and Virgin Media O2 and calling on the Competition and Markets Authority to scrutinise the overlap.
The acquisition will be financed with £850m in equity from InfraVia and £150m from Liberty Global and Telefónica, alongside a £2.7bn debt facility to fund both the purchase and further network expansion.
The deal comes as Virgin Media O2 continues to face customer losses, shedding 18,000 broadband subscribers and 165,000 mobile customers in the latest quarter.
Separately, Liberty Global has agreed to pay €1bn to Vodafone for its 50 per cent stake in VodafoneZiggo, the Dutch joint venture. Liberty plans to merge VodafoneZiggo with its Belgian unit Telenet and spin off the combined entity, Ziggo Group, via a listing in Amsterdam next year.
The Netomnia acquisition signals that consolidation in the UK fibre market, long expected as funding tightens and competition intensifies, is now gathering pace, potentially reshaping the balance of power in Britain’s broadband industry.
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Virgin Media O2 owners strike £2bn deal for Netomnia in fibre consolidation push

Household energy bills are forecast to fall by around £117 from April, as government policy changes outweigh modest increases in wholesale prices.
Energy consultancy Cornwall Insight predicts that the Ofgem price cap will drop 7 per cent to £1,641 a year for a typical dual-fuel household when it is reset on 1 April.
The forecast reduction is slightly smaller than Cornwall Insight’s previous estimate of an 8 per cent, or £138, cut, reflecting a recent uptick in wholesale energy prices. Ofgem is due to confirm the official cap level by 25 February for the period running to 30 June.
The projected fall follows measures announced in last November’s budget by Rachel Reeves, including the scrapping of the Energy Company Obligation scheme. Cornwall Insight estimates these policy changes will reduce the cap by about £145 a year once VAT and pricing allowances are factored in.
However, higher network charges, linked to the operation and maintenance of Britain’s energy infrastructure, have offset part of the saving.
Wholesale gas prices have been volatile in recent weeks due to geopolitical tensions, but remain below the levels seen when the January price cap was set. Cornwall Insight expects bills to remain “relatively steady” through the rest of 2026, with only a modest increase forecast in July.
Craig Lowrey, principal consultant at Cornwall Insight, said: “Any reduction in bills is positive, especially at a time when affordability matters. The fall in policy costs is doing most of the heavy lifting, and while wholesale prices have been in the headlines, their impact on April’s bills is limited.”
He cautioned that keeping bills down would be challenging as the UK invests in modernising its energy networks and reducing reliance on imported gas. “There needs to be an honest conversation that the transition to a more secure energy system won’t be cost free,” he said.
A spokesperson for the Department for Energy Security and Net Zero said the government was delivering on its promise to cut average household costs by £150 from April.
Comparison site Uswitch said all households would see adjustments to bills regardless of supplier or tariff type. However, it stressed that savings would depend on individual consumption levels, with higher-usage households seeing larger reductions.
Simon Francis of the End Fuel Poverty Coalition urged consumers to look beyond the headline average figure and examine unit rates and standing charges when the final cap is announced.
While the projected drop offers short-term relief, analysts warn that structural pressures on the energy system mean long-term stability remains far from guaranteed.
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Household energy bills set to fall by £117 from April

Octopus Energy Generation is investing nearly $1bn in Californian clean technology projects, deepening its exposure to the US energy transition and accelerating plans to deploy $2bn across the country by 2030.
The funding, channelled through Octopus-managed funds, spans carbon removal, heat battery technology and solar-plus-storage infrastructure, reinforcing the company’s strategy of backing next-generation decarbonisation assets in advanced markets.
Octopus will support two California-based carbon removal companies focused on grassland restoration and reforestation, converting degraded land into high-quality carbon-absorbing assets. Several large technology firms have already agreed to purchase carbon credits from the projects, providing long-term revenue visibility.
The investor will also back heat battery technology developed in the Bay Area, aimed at decarbonising hard-to-electrify industrial processes. The systems are designed to replace fossil-fuel boilers with renewable-powered thermal storage, cutting emissions in sectors that have proven difficult to transition.
As part of the investment drive, Octopus is acquiring a solar and battery storage project in California. The site is expected to be fully operational by July 2026, helping convert the state’s abundant solar resource into dispatchable, low-cost electricity.
The announcement builds on earlier North American investments, including backing floating offshore wind developer Ocergy and solar projects in Ohio and Pennsylvania.
The move comes as Octopus expands its international footprint while maintaining close ties to the UK market. Britain’s clean energy economy grew three times faster than the wider economy in 2024, according to CBI data, and Octopus said overseas investments would ultimately support UK returns and expertise.
Zoisa North-Bond, chief executive of Octopus Energy Generation, said California’s policy environment and technology ecosystem made it an attractive long-term partner.
“Octopus and California are both leading the way in clean energy innovation,” she said. “With supportive policy and world-class entrepreneurship in and around Silicon Valley, it’s an ideal place to back investments that will benefit the UK economy.”
California currently generates more than two-thirds of its electricity from clean sources and aims to reach 100 per cent by 2045, positioning it as one of the world’s most ambitious energy transition markets.
The announcement was made during a visit by the Governor of California to Octopus’s London headquarters, underscoring the growing transatlantic collaboration in clean technology and infrastructure investment.
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Octopus Energy Generation to invest $1bn in California clean tech

Profit margins at the world’s largest luxury goods companies have almost halved in just three years, prompting calls for more disciplined cost management that preserves brand equity while restoring profitability.
Research from supply chain consultancy Inverto, part of Boston Consulting Group, shows that the average operating margin across the 20 biggest luxury groups has fallen from 24 per cent in 2022 to 13 per cent today.
Half of those companies have seen margins decline over the period, while five are now operating at a loss.
Analysts say the slowdown in global demand, particularly in key markets such as China and the US, has combined with rising input and operational costs to squeeze profitability in a sector long associated with premium pricing power.
Traditionally, luxury houses have adopted high-cost approaches across their entire business, including areas not directly tied to product craftsmanship or customer experience, such as IT, logistics and back-office functions.
Daniela Klotz, managing director at Inverto, argues that meaningful savings can be achieved in these “indirect categories” without diluting brand identity.
“In indirect spend areas, systematic management can unlock savings of 8 to 10 per cent, or more, within six to twelve months,” she said.
One example is software licence optimisation. Many global brands overpay for unused or over-specified licences. “One client reduced software spending by 15 per cent through a rightsizing strategy,” Klotz noted.
Similarly, marketing and visual merchandising often incur heavy centralised production and international shipping costs to maintain brand consistency. By enabling approved regional suppliers to produce materials to centrally defined specifications, companies can preserve visual standards while reducing logistics and production costs.
“With the right strategy, spend in this category can fall by up to 30 per cent,” Klotz said.
Klotz said luxury brands need a clear, data-driven assessment of which elements of their supply chains are truly essential to maintaining brand equity and which can be streamlined.
Once that framework is established, artificial intelligence can help identify operational inefficiencies. AI tools can optimise transportation routes and shipping schedules, cutting freight costs while maintaining delivery standards.
In fashion, AI forecasting models can also help reduce overproduction, a persistent challenge when balancing sizes, colours and seasonal demand. Improved forecasting can limit discounting and wastage, directly protecting margins.
The luxury sector’s long-standing reliance on premium pricing and brand prestige is now being tested by softer consumer sentiment and more cautious spending.
Klotz argues that protecting margins in the current environment requires sharper focus. “With a clear cost management strategy and a disciplined approach to what is essential and what is not, fashion and luxury brands can significantly improve their margins,” she said.
As investor scrutiny intensifies and growth moderates, the sector’s next phase may depend less on headline price increases and more on operational excellence behind the scenes.
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Luxury brands urged to protect margins as profits slide

UK space technology firm SatVu has secured £30m ($40m) in fresh funding, including a strategic investment from the NATO Innovation Fund, as it accelerates plans to deploy a multi-satellite thermal imaging constellation.
The round brings SatVu’s total equity funding to £60m ($80m) and marks a shift from single-satellite demonstration to scaled execution of its space-based “Activity Intelligence” capability.
The investment also includes participation from the British Business Bank, Space Frontiers Fund II, managed by SPARX Asset Management, and Presto Tech Horizons, alongside existing backers including Molten Ventures and Lockheed Martin.
SatVu’s technology uses high-resolution thermal imaging from space to detect heat signatures associated with activity inside and around buildings, industrial facilities and critical infrastructure, day and night. The company says this enables governments and institutions to monitor mobilisation, operational readiness and infrastructure performance in ways that traditional commercial sensors cannot.
Two satellites, HotSat-2 and HotSat-3, are scheduled for launch in 2026, with additional satellites, HotSat-4, HotSat-5 and long-lead components of HotSat-6, already under contract. While a single satellite can observe any point on Earth, a constellation increases revisit frequency, allowing persistent monitoring of patterns of life and operational change.
Anthony Baker, co-founder and chief executive of SatVu, said the funding would allow the business to scale a sovereign thermal capability built in the UK. “High-resolution thermal imagery from space reveals activity that is otherwise invisible,” he said. “From monitoring military supply chains to detecting covert activity, thermal intelligence is essential to modern ISR.”
The investment aligns with NATO’s mission to support advanced technologies that enhance allied security. Trisha Saxena of the NATO Innovation Fund said SatVu’s platform offers “a level of detailed data that was simply not available before”.
SatVu has also received backing through UK defence innovation programmes, including a Defence Innovation Loan awarded via the Defence and Security Accelerator, now part of UK Defence Innovation.
Luke Pollard said the government was committed to scaling British defence SMEs. “Our support for firms like SatVu is building sovereign capabilities while driving economic growth,” he said.
Camilla Taylor, chief financial officer at SatVu, described the raise as a pivotal step. “We now have a clear path to a multi-satellite constellation and sustained delivery,” she said, adding that the company is moving from capability demonstration to commercial scaling.
As allied governments place greater emphasis on resilience, independent intelligence and infrastructure monitoring, SatVu’s backers argue that persistent thermal Earth observation could become a critical new data layer in defence, security and economic decision-making.
The funding positions SatVu to expand its constellation rapidly and establish itself as a key supplier of sovereign thermal intelligence across NATO nations and beyond.
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NATO Innovation Fund backs SatVu with £30m investment to scale thermal intelligence