Author: AbellMoney

Bentley is to cut 275 jobs as the luxury carmaker grapples with a sharp decline in profits and mounting pressure from a weakening global market, underlining the growing strain even at the very top end of the automotive sector.
The Crewe-based manufacturer confirmed that around 6 per cent of its 4,600-strong workforce will be affected as part of what it described as “organisational efficiency measures”, with roles expected to go across management, agency and non-manufacturing functions. The reductions will now enter a consultation process, with the company stressing it will support affected employees throughout.
The announcement came as Bentley revealed a 42 per cent drop in operating profit to £187 million, down from £322 million the previous year and significantly below its £509 million peak in 2023. The downturn reflects a combination of softer global demand, rising cost pressures and geopolitical uncertainty, all of which are increasingly shaping the outlook for premium automotive brands.
Vehicle sales also slipped, with Bentley delivering 10,131 cars last year, a decline of nearly 5 per cent, driven largely by a contraction in key international markets, particularly China. The slowdown in Chinese demand has become a defining challenge for luxury manufacturers, many of whom have relied heavily on the region for growth over the past decade.
Chief executive Frank-Steffen Walliser acknowledged the scale of the challenge, saying the company was being forced to take “difficult decisions to ensure the long-term competitiveness of the business”. While he emphasised that the cuts were not “panic measures”, he conceded that the operating environment remains volatile, with the possibility of further adjustments if conditions deteriorate.
Bentley sought to contextualise the profit decline, arguing that without external pressures, including increased costs linked to its parent company Volkswagen and the impact of US tariffs, financial performance would have been broadly in line with 2024. Nonetheless, the figures highlight how even high-margin luxury brands are not immune to wider economic headwinds.
The restructuring comes at a pivotal moment for the business as it transitions towards electrification. Bentley is nearing completion of a new assembly line at its Crewe headquarters, which will support production of its first fully electric vehicle, scheduled for launch in early 2027. The investment marks a critical step in its long-term strategy, although the pace and direction of that transition are evolving.
In a notable shift, the company has stepped back from its previous ambition to become an all-electric brand within this decade. Instead, it is pursuing a more “balanced portfolio”, extending the lifespan of internal combustion and hybrid models in response to renewed customer demand and a broader slowdown in the uptake of luxury electric vehicles.
This recalibration mirrors a wider trend across the premium automotive sector. Manufacturers including Lamborghini have also delayed or revised EV-only strategies, reflecting both consumer hesitancy and the practical challenges of delivering high-performance electric models at scale.
Beyond product strategy, Bentley is also navigating an increasingly politicised environment around vehicle size and emissions. Walliser defended the company’s larger models, such as the Bentayga SUV, following criticism from London Mayor Sir Sadiq Khan, who has suggested imposing additional taxes on large vehicles, often labelled “Chelsea tractors”, due to perceived safety risks.
Rejecting those claims, Walliser described the debate as politically driven, arguing that all vehicles must meet strict regulatory standards for pedestrian and cyclist safety regardless of size.
Despite the current pressures, Bentley remains committed to its long-term transformation, positioning electrification, product innovation and operational efficiency as key pillars of its future strategy. However, the latest results and job cuts underscore a more immediate reality: even the most prestigious automotive brands are being forced to adapt quickly in an increasingly uncertain global market.
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Bentley to cut 275 jobs as profits slump amid global headwinds

Individual insolvencies across England and Wales have surged by 18 per cent year-on-year, in what experts are warning is clear evidence of a deepening household financial crisis as rising borrowing costs, persistent inflation and accumulated debt continue to weigh heavily on consumers.
New data from The Insolvency Service shows that 11,609 people entered insolvency in February 2026, marking a 6 per cent increase on January and a significant jump compared with the same month last year. The figures paint a stark picture of mounting financial strain, particularly among vulnerable households and increasingly, middle-income earners.
The total comprised 768 bankruptcies, 4,210 debt relief orders (DROs) and 6,631 individual voluntary arrangements (IVAs), with DROs reaching their highest monthly level since their introduction in 2009. The record number reflects both structural financial pressures and policy changes, including the removal of the application fee in April 2024, which has made the process more accessible.
However, industry observers say the scale of the increase goes far beyond administrative changes. Darryl Dhoffer, founder of The Mortgage Geezer, described the data as a clear signal that many households have reached a tipping point after years of financial pressure. He pointed to what he described as the “lag effect” of higher interest rates, which is now feeding through into household finances after a prolonged period of tightening monetary policy.
While the Bank of England’s base rate currently stands at 3.75 per cent, elevated borrowing costs have continued to squeeze mortgage holders and consumers carrying unsecured debt. At the same time, inflation, although easing from its peak, remains above target at around 3 per cent, limiting the extent to which households are seeing meaningful relief in day-to-day costs.
Tony Redondo, founder of Cosmos Currency Exchange, said the figures highlight how cumulative financial pressures are now manifesting in real-world outcomes. He noted that while the removal of fees has contributed to the rise in DROs, the broader trend reflects households “finally collapsing under accumulated debt from previous years”.
He warned that the outlook remains fragile, particularly in light of geopolitical uncertainty and the potential for renewed inflationary pressures linked to energy markets. Any sustained increase in inflation could force the Bank of England to keep interest rates higher for longer, further intensifying the strain on borrowers approaching refinancing deadlines.
Financial planners echoed concerns that the current data may represent the early stages of a wider deterioration. Nouran Moustafa, practice principal at Roxton Wealth, said the figures should not be viewed as a one-off spike but rather as part of a broader pattern of economic fragility.
She emphasised that behind the statistics lies significant human impact, with many households operating without any financial buffer. In such conditions, even relatively small increases in costs or interest rates can push individuals into insolvency.
The pressure is not limited to households. Company insolvencies rose by 7 per cent month-on-month to 1,878 in February, although they remain below levels seen during the peak of business failures between 2022 and 2025. Analysts suggest this reflects a mixed picture, with some businesses stabilising while others continue to face tightening margins and weakening demand.
Anita Wright, chartered financial planner at Ribble Wealth Management, said the data reflects a broader liquidity squeeze across the economy. She noted that rising bond yields are feeding into higher borrowing costs for businesses, while consumers facing higher living costs are cutting back on spending, further compressing margins.
This combination of weak growth and persistent inflation, often described as stagflationary conditions, creates a particularly challenging environment for both households and businesses. While some firms have been able to absorb pressures through cost-cutting or the use of reserves, that resilience is finite, and insolvency rates tend to rise once those buffers are exhausted.
The implications are also being felt in the workplace. Kate Underwood, founder of Kate Underwood HR and Training, warned that financial stress among employees is increasingly spilling over into business operations. She highlighted rising levels of absenteeism, reduced productivity and higher staff turnover as workers struggle to cope with mounting financial pressures.
For small businesses in particular, the challenge is acute. Unlike larger corporates, they often lack the financial flexibility to absorb rising wage demands or offer higher salaries, making them more vulnerable to workforce instability driven by cost-of-living pressures.
The latest figures also come at a time when expectations for interest rate cuts have been significantly scaled back. Prior to the recent escalation in geopolitical tensions, markets had anticipated multiple rate reductions in 2026. However, rising oil and gas prices have shifted expectations, with policymakers now more cautious about easing monetary policy.
This change in outlook could prove critical. As Redondo noted, the combination of higher rates, depleted savings and thin margins leaves both households and businesses exposed to further shocks. Should borrowing costs remain elevated or increase further, the risk of a broader wave of defaults and insolvencies could intensify.
For now, the data underscores a fundamental issue facing the UK economy: a growing number of households and businesses are operating with little to no margin for error. In such an environment, the difference between stability and financial distress can be measured in relatively small shifts in costs or income.
As policymakers weigh the next steps on interest rates and fiscal policy, the sharp rise in insolvencies serves as a clear warning signal that underlying financial pressures are not only persistent but increasingly visible across the economy.
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Individual insolvencies surge 18% as experts warn households are at ‘breaking point’

A landmark tribunal ruling that public electric vehicle (EV) charging should be subject to a reduced 5% VAT rate rather than the standard 20% has sparked renewed debate over fairness in the UK’s charging infrastructure, with potential implications for millions of drivers.
The decision, issued by a First-tier Tribunal, could bring public charging costs into line with those faced by motorists charging at home, addressing what many in the industry have long argued is a structural inequality in the tax system. Currently, drivers with access to off-street parking benefit from the lower VAT rate on domestic electricity, while those reliant on public charging, often urban residents, pay significantly more.
Justin Whitehouse, Managing Director at Alvarez & Marsal Tax, said the ruling reflects “a win for common sense”, highlighting a disparity that has persisted since EV adoption began to scale.
“To most people, it feels inherently unfair that those with a driveway can charge their vehicles at a reduced VAT rate, while those without off-street parking are left paying the full rate,” he said.
The case has also exposed deeper issues within the UK’s VAT framework, particularly around how electricity is classified depending on where it is consumed. The legislation hinges on the definition of “premises”, distinguishing between residential and commercial supply, a distinction that has proven increasingly difficult to apply in the context of modern EV charging networks.
Whitehouse noted that despite sustained lobbying from the industry, HMRC had not clarified its position, making a legal challenge almost inevitable. “The legislation has always been difficult to apply in practice,” he said, pointing to ambiguity that has left operators and consumers navigating an inconsistent system.
The ruling raises the prospect of refunds for drivers and businesses that may have overpaid VAT on public charging, potentially unlocking significant sums across the sector. However, any immediate impact remains uncertain. As a First-tier Tribunal decision, the ruling does not set a binding precedent and could yet be appealed, prolonging uncertainty for both operators and consumers.
Even if upheld, a key question will be how quickly, and to what extent, any VAT reduction is passed on to drivers. While lower tax rates could reduce charging costs in theory, pricing structures across public networks are influenced by a range of factors, including energy wholesale prices, infrastructure investment and operator margins.
In the short term, the decision is likely to intensify pressure on policymakers to address inconsistencies in EV taxation, particularly as the UK accelerates its transition away from petrol and diesel vehicles. Aligning VAT rates between home and public charging has been a longstanding demand from industry groups, who argue that the current system risks penalising those without access to private driveways — often those in cities where EV adoption is critical to meeting emissions targets.
Over the longer term, the case could act as a catalyst for broader reform of how energy usage is taxed in a decarbonising economy, where traditional distinctions between domestic and commercial consumption are becoming increasingly blurred.
For now, the ruling represents a significant moment in the evolution of the UK’s EV ecosystem, one that highlights both the opportunities and the complexities involved in building a fair, scalable and accessible charging infrastructure for the future.
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Tribunal ruling could cut public EV charging VAT to 5%, raising prospect of cheaper charging

Britain’s largest car park operator, National Car Parks (NCP), has taken the first formal step toward administration, putting more than 1,000 jobs at risk and raising fresh questions about the future of hundreds of parking facilities across the UK.
Documents lodged at the High Court in London show that the company has filed a notice of intention to appoint administrators. The filing, made at 10.01am, provides the business with temporary legal protection from creditor actions while it attempts to stabilise its financial position or explore restructuring options.
The move signals deep financial strain at a company that operates more than 800 parking sites nationwide, serving millions of drivers each year and working with a range of private landowners, councils and commercial clients.
An intention to appoint administrators is typically used by businesses facing mounting financial pressure, granting them a short window, usually around ten days, to negotiate with lenders, explore refinancing options or prepare for a formal administration process.
If the company ultimately enters administration, the outcome could threaten the future of more than 1,000 jobs across its operations and potentially disrupt services at hundreds of car parks across the country.
The development is likely to send shockwaves through local authorities and commercial partners that rely on the operator to manage public and private parking facilities.
Financial pressures have been mounting in recent years. Accounts show the company generated revenues of £187 million in the financial year ending 2023, representing a decline of more than 7 per cent compared with the previous year.
The company has also faced public scrutiny and criticism over its parking enforcement practices. Private parking operators across the UK have dramatically increased the number of penalty notices issued to motorists, with figures showing that drivers are now receiving nearly 40,000 parking charges a day.
Data from the Driver and Vehicle Licensing Agency (DVLA) revealed that private parking firms requested vehicle ownership details a record 14.37 million times during the 2024–25 financial year. That equates to an average of around 39,375 requests per day, allowing companies to issue parking charge notices of up to £100 for alleged violations such as overstaying time limits.
Parking operators must obtain vehicle ownership information from the DVLA in order to send fines by post, paying £2.50 per request for access to the database.
NCP itself has faced several high-profile controversies relating to fines in recent years. In February last year the company apologised after incorrectly issuing a £100 penalty to a grandfather who had parked for just 14 minutes in a car park in Darlington, County Durham, despite signage stating that customers were entitled to 90 minutes of free parking. The fine was later cancelled.
The company has also faced financial disputes with local authorities. In 2024, Bolton Council wrote off nearly £1.5 million in debts owed by the firm dating back to the pandemic period.
Legal representatives from the law firm Reynolds Porter Chamberlain, which is acting for the company, said a statement would be issued later regarding the situation.
Industry observers say the potential collapse of such a large operator reflects broader challenges in the parking sector, including rising operational costs, tighter regulation and increasing scrutiny of private parking enforcement.
For motorists, private parking charges have become increasingly common across locations such as supermarkets, shopping centres, business parks, motorway service areas and restaurant sites.
While the notice filed in court does not guarantee that the company will enter administration, it indicates that its financial position has become severe enough to require urgent restructuring discussions.
If a rescue deal cannot be secured during the protection period, administrators could be formally appointed within days, placing the future of Britain’s largest car park operator in doubt.
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NCP faces administration as Britain’s largest car park operator files court notice

Virgin StartUp has announced a new £20 million funding pot to support UK entrepreneurs in the coming financial year, marking the organisation’s largest annual allocation since partnering with the British Business Bank in 2013.
The funding will be made available between 1 April 2026 and 31 March 2027 through the government-backed Start Up Loans programme and is designed to widen access to early-stage finance for aspiring founders across the UK.
The announcement also marks a significant milestone for Virgin StartUp, which has now distributed more than £100 million in Start Up Loans funding since the partnership began more than a decade ago. Over that period the not-for-profit organisation has supported more than 6,500 entrepreneurs to launch and grow businesses across a wide range of sectors.
Businesses that received early backing through the programme include well-known consumer brands and technology ventures such as sportswear label Castore, ethical skincare company Upcircle, drinks brand DASH Water, AI fitness scale-up Magic AI and sustainable food subscription service Oddbox.
According to Virgin StartUp, the loans delivered through its programme have generated an estimated £550 million in economic value for the UK, equating to a return of £5.50 for every £1 invested.
The organisation also reports that 69 per cent of businesses supported through its Start Up Loans funding remain trading after five years, significantly higher than the national average of 43 per cent, suggesting founders who access the programme are around 60 per cent more likely to survive their early years in business.
Andy Fishburn MBE, managing director at Virgin StartUp, said the new funding would allow the organisation to back more founders at a time when early-stage capital has become increasingly difficult to secure.
“With over £20 million in Start Up Loan funding to deploy this year, we’ll be supporting and funding more founders than ever before,” he said. “Early-stage funding has never been harder to come by, so this investment will help entrepreneurs turn bold ideas into sustainable businesses at a critical moment for the UK economy.”
Fishburn added that the programme is open to individuals launching their first business, developing side ventures or growing young companies that have been trading for up to five years.
Beyond financial support, entrepreneurs receiving loans are also paired with dedicated business advisers who guide them through the application process and provide mentoring during the first year after funding.
Participants also gain access to Virgin StartUp’s wider entrepreneurial network, which offers mentoring, peer support, training opportunities and industry events designed to help founders build and scale their businesses.
The programme has also placed a strong emphasis on improving access to entrepreneurship for underrepresented groups. In 2019 Virgin StartUp launched a 50/50 pledge committing to fund equal numbers of male and female founders.
Since that pledge was introduced, women have accounted for 46 per cent of successful funding recipients through the programme. Over the past six months, female founders have made up exactly half of all successful applicants.
Louise McCoy, managing director of Start Up Loans products at the British Business Bank, said the partnership with Virgin StartUp continues to play an important role in supporting the UK’s entrepreneurial ecosystem.
“We are delighted with the success Virgin StartUp continues to achieve as a partner of the Start Up Loans programme,” she said. “Their commitment to supporting an equal number of male and female founders aligns closely with our own objectives.
“Together we are helping thousands of businesses across the UK access the affordable finance they need to start up or grow.”
The new £20 million funding allocation comes at a time when many entrepreneurs face tighter venture capital markets and rising borrowing costs, making government-backed lending schemes an increasingly important source of early-stage finance.
Virgin StartUp said the additional funding would allow it to expand its reach further across the UK, ensuring more founders from diverse backgrounds and communities can access both capital and expert guidance.
Fishburn added that broadening access to entrepreneurship remains central to the organisation’s mission.
“We believe entrepreneurship should be open to everyone with the drive to build something of their own,” he said. “Our goal is to ensure great ideas, wherever they come from, have a genuine opportunity to succeed.”
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Virgin StartUp unveils £20m funding pot for UK founders after passing £100m Start Up Loans milestone

Artificial intelligence could generate more than £105 billion in additional revenue for the UK’s mid-sized companies by the end of the decade, according to new economic modelling that highlights how rapidly AI is reshaping the country’s business landscape.
The research, conducted by the Centre for Economics and Business Research (Cebr) on behalf of HSBC UK, suggests that businesses embedding AI across their operations are beginning to pull away from competitors that are slower to adopt the technology.
Alongside the report, HSBC UK has launched a £5 billion AI & Productivity Financing Initiative aimed at helping businesses invest in the technology, skills and systems required to deploy AI at scale.
The analysis focuses on Britain’s mid-sized businesses, companies with annual revenues between £15 million and £300 million, often described as the “engine room” of the UK economy because of their ability to combine the agility of smaller firms with the investment capacity of larger organisations.
There are around 35,000 such companies operating across the UK. In 2025 they generated 23 per cent more value per employee than the wider economy, highlighting their growing importance as a driver of productivity and growth.
The research indicates that AI is increasingly becoming a dividing line between firms that are accelerating ahead and those at risk of falling behind.
Two years ago, only around 35 per cent of mid-sized companies were using AI in some form. By the end of 2025 that figure had climbed sharply to 55 per cent, reflecting the rapid mainstream adoption of large language models, advanced analytics and workflow automation tools across many industries.
However, the report notes that a clear distinction exists between businesses experimenting with AI and those embedding it deeply within core business functions.
Approximately 24 per cent of mid-sized companies are now classified as “productive adopters”, organisations integrating AI into critical processes such as forecasting, supply chain management, reporting, customer engagement and operational decision-making.
These companies are seeing measurable improvements in both productivity and revenue.
According to the research, firms that integrate AI into their operations experience an average increase of around four per cent in revenue per employee.
For the typical mid-sized business, this could translate into an additional £4.5 million in revenue and roughly £1.3 million in additional economic value within four years compared with companies that have not yet adopted the technology.
If adoption continues at its current pace, the cumulative impact could be significant. The modelling suggests AI-driven productivity gains across the mid-market could add £105 billion in additional revenue and £31 billion in economic output to the UK economy by 2030.
Looking further ahead, the study estimates that AI adoption among mid-sized firms could generate more than £500 billion in additional turnover by 2050, although gains are expected to slow as the technology becomes widely embedded across industries.
James Cundy, managing director and head of corporate and leveraged finance at HSBC UK, said the findings highlight the growing importance of AI investment for business competitiveness.
“Mid-sized businesses play a central role in UK growth,” he said. “Our findings suggest AI adoption could strengthen one of the economy’s most important growth engines.
“The opportunity is significant, but it requires confidence to invest. Our focus is on supporting businesses as they invest in the technology, skills and innovation that will shape the UK’s next phase of growth.”
Through the new financing initiative, HSBC aims to provide businesses with access to funding on commercial terms to support AI investment across areas including digital infrastructure, data systems, workforce training and automation.
Cundy emphasised that the biggest gains are coming from companies that move beyond experimentation and integrate AI into their decision-making and operational processes.
“The distinction between experimentation and integration is critical,” he said. “Businesses that apply AI to operations, workforce processes and strategic decisions are seeing measurable improvements in productivity and revenue.”
Economists say the research underlines the growing role of technology in shaping productivity outcomes across the UK economy.
Nina Skero, chief executive of the Centre for Economics and Business Research, said the findings suggest the mid-market still has considerable room to benefit from AI-driven productivity improvements.
“Our research shows AI is already beginning to influence productivity outcomes among mid-sized firms in a meaningful way,” she said.
“However, productive adopters remain a minority within the mid-market. That indicates there is still significant headroom for growth. If more companies move from early adoption to deeper integration, the combined impact on UK productivity and national output could be substantial by the end of the decade.”
The report concludes that the pace at which companies move from experimentation to full integration will ultimately determine how much of the potential £105 billion opportunity is realised.
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AI adoption could unlock £105bn revenue boost for UK mid-sized firms by 2030

Rising fuel prices could force some drivers to reduce essential journeys, including hospital visits, as the escalating oil price crisis continues to push up costs at the pump, according to new research from campaign group FairFuelUK.
The survey of more than 37,000 motorists found that 11.9 per cent of respondents believe they may have to reduce the frequency of regular hospital treatment or medical visits if petrol and diesel prices continue to rise sharply. Campaigners warn that sustained increases in fuel costs could have serious knock-on effects for both household finances and wider economic activity.
Petrol prices have already risen by nearly 10p per litre on average since the latest oil market turmoil began, while diesel has increased by almost 14p per litre, according to the FairFuelUK Fuel Price Crisis Survey. The increases come amid continued volatility in global energy markets and concerns about disruption to oil supplies.
Drivers responding to the survey indicated that if fuel prices climb by more than 20p per litre on average, many households will begin significantly reducing everyday spending in order to cope with rising transport costs. FairFuelUK warns that such behavioural changes could have wider economic consequences, potentially slowing consumer spending and increasing the risk of recession.
The findings suggest that rising pump prices would quickly feed through into household budgeting decisions. More than 70 per cent of drivers said they would cut back on hobbies, eating out and entertainment if prices increased further, while nearly 60 per cent said they would reduce spending on branded food products.
More than half of respondents said they would switch to filling up at supermarket forecourts in search of cheaper fuel, while just over half indicated they would reduce the size of their regular grocery shop. Around 41 per cent said they would work from home more often to avoid commuting costs, and nearly 38 per cent would consider using public transport more frequently.
However, the research also highlights the potential impact on social and essential travel. Nearly a quarter of motorists said they would cut back on visits to family and friends, while the proportion who indicated they may reduce hospital visits has raised particular concern among campaigners.
Howard Cox, founder of FairFuelUK, said the government should take immediate action to relieve pressure on motorists and prevent rising fuel costs from feeding through into inflation and weaker economic growth.
He argued that cutting fuel duty could help stabilise prices and protect both consumers and businesses from further economic strain.
“Rachel Reeves could calm inflationary pressure and protect the economy from recession by cutting fuel duty now and promising to scrap any increase in this regressive tax in the lifetime of this Parliament,” Cox said.
He added that UK drivers face some of the highest fuel taxes in the world and argued that reducing the burden would help boost consumer spending and lower operating costs for small businesses.
“The world’s highest taxed drivers deserve relief from the high costs of an essential resource, and the economy needs a boost by increasing consumer spending and lowering costs for small businesses,” he said.
Cox also called for wider reforms to fuel pricing, including removing VAT on fuel duty, which campaigners describe as a form of double taxation, and introducing stricter monitoring of pump prices through a strengthened regulatory framework.
The FairFuelUK survey also explored motorists’ perceptions of how fuel retailers have responded to recent wholesale price movements. When asked whether they had observed pump prices rising significantly before wholesale costs increased, 43.1 per cent of respondents said they had noticed increases at their usual forecourt, while more than half said they were unsure.
Among those who believed prices had risen prematurely, 83.7 per cent identified major oil companies including Shell, BP, Esso and Texaco as having the highest pump prices and increasing them on existing fuel stocks.
Supermarket petrol stations were widely perceived as offering the lowest prices overall, although some respondents reported that supermarkets such as Asda and Tesco had implemented some of the fastest price increases.
Campaigners say the findings underline growing concern among motorists about transparency in the fuel supply chain and the speed at which retail prices respond to fluctuations in wholesale costs.
FairFuelUK is urging ministers to introduce what it calls a robust “PumpWatch” system to monitor pricing across the fuel supply chain and impose significant fines if companies are found to be profiteering.
With global energy markets remaining volatile and geopolitical tensions continuing to disrupt oil supplies, motorists and businesses alike are bracing for further uncertainty at the pump in the months ahead.
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Fuel price surge could force one in ten drivers to cut hospital visits, survey warns

The UK and Ireland have strengthened their economic partnership as leaders gathered in Cork for the second UK-Ireland Summit, where Prime Minister Sir Keir Starmer announced £937 million in new Irish investment expected to create around 850 jobs across the United Kingdom.
The investment comes from 15 Irish companies operating in sectors ranging from artificial intelligence and renewable energy to telecommunications and corporate services. The projects will support economic growth in communities across the UK, including London, Doncaster, South Wales and Scotland, and form part of a broader push to deepen economic and strategic cooperation between the two countries.
Speaking ahead of the summit, Starmer said closer collaboration between the UK and Ireland was essential at a time of global economic uncertainty and rising cost-of-living pressures.
“As people on both sides of the Irish Sea feel the cost-of-living squeeze, we are investing in partnerships that make us better off and more secure,” he said. “The UK’s close friendship with Ireland is going from strength to strength, and this new investment is part of a much bigger picture of flourishing cultural, commercial and security ties.”
The Prime Minister added that strengthening relationships with key partners would help the UK navigate global challenges while supporting economic stability for families and businesses.
The new investment is also being framed by the government as a vote of confidence in the UK’s Modern Industrial Strategy, which aims to attract high-value international investment and drive productivity and sustainability across key industries.
Many of the investments have been supported by Enterprise Ireland, the Irish government’s trade and innovation agency, which recently published data showing that the UK remains Ireland’s most important export market. According to the agency, almost two-thirds of Irish companies already maintain a physical presence in the UK and the majority plan to increase their investment over the next 12 months.
A business roundtable held in Cork ahead of the summit brought together senior figures from UK and Irish companies across energy, infrastructure and technology sectors to discuss investment opportunities and economic collaboration.
Robert Adams, president of FOCUS Capital Partners, said London’s position as a global financial centre made it a natural base for international investment firms expanding into the UK.
“The UK is a highly attractive market for investment,” Adams said. “Expanding our presence in London allows us to work more closely with ambitious UK companies and support Irish and international investors seeking opportunities in the market.”
Irish engineering services firm Ayrton Group also confirmed plans to expand its UK operations, citing the size and diversity of the British market as key reasons for its investment strategy.
Managing director Kieran Linehan said the company had long viewed the UK as its most strategic expansion destination.
“The UK market has always been a natural fit for us,” he said. “Its scale, the strong cultural and business relationships between our countries and the shared language make it easier for Irish companies to grow here compared with many other international markets.”
Alongside economic investment, energy security has emerged as a key focus of the summit. Both governments welcomed progress toward the development of two major energy interconnectors linking the UK and Ireland.
One project will connect Wales and Ireland, delivering enough electricity to power around 570,000 homes and representing at least £740 million in private investment across both countries. A second interconnector between Northern Ireland and the Republic of Ireland is expected to help reduce electricity costs and strengthen energy resilience on both sides of the border.
Interconnectors allow countries to share electricity across national grids, helping balance supply and demand. They can enable the UK to export surplus renewable energy to European markets while importing lower-cost electricity when needed.
The projects are also part of broader efforts to strengthen energy cooperation across the Irish Sea as governments seek to accelerate the transition to cleaner power sources while maintaining stable energy supplies.
Beyond energy, the summit also addressed growing security concerns around critical infrastructure. The UK and Ireland agreed to enhance cooperation on protecting subsea fibre optic cables, which carry vast volumes of digital communications and underpin economic activity and national security for both nations.
Both countries will conduct joint exercises to test responses to potential incidents affecting these cables, reflecting concerns about the vulnerability of underwater infrastructure to sabotage or disruption.
In addition, the two governments have refreshed their defence memorandum of understanding to strengthen collaboration on maritime security, cyber threats and defence procurement.
The updated agreement includes measures to improve information-sharing and coordination in response to hostile activity in the Irish and Celtic Seas, including threats posed by Russian vessels and so-called “shadow fleet” shipping networks used to evade sanctions.
The investments announced at the summit span a wide range of sectors and regions across the UK. Irish technology firm Version 1 plans to create around 400 new roles in Northern Ireland in fields such as artificial intelligence, engineering and digital transformation. Aviation technology specialist Amach has announced a £45 million investment to create 150 high-skilled jobs across the UK over the next three years.
Telecommunications infrastructure company Step Telecoms will invest £25 million in a new 200-kilometre fibre optic cable linking the Welsh coast to major data centre hubs in Newport.
Meanwhile, Irish investment firm Elkstone has launched a €200 million venture capital fund, with around 20 per cent of the capital earmarked for startups and scale-ups in Northern Ireland.
Several companies are also expanding in the property and infrastructure sectors. The O’Flynn Group is continuing its investment in the UK’s student accommodation market, including a £35 million development in Manchester that will deliver 173 new student beds.
Other projects include Johnston Fitout Group’s new showroom and office expansion in Doncaster and a £170 million investment by Gas Networks Ireland to decarbonise compressor stations in Scotland.
Together, the projects reflect deepening economic ties between the UK and Ireland, with both governments seeking to strengthen collaboration across industries critical to long-term growth, energy security and digital infrastructure.
Starmer said the strengthening partnership between the two countries was delivering tangible benefits for workers and businesses on both sides of the Irish Sea.
“The action this government has taken to reset relationships and deepen partnerships with our closest allies is paying off,” he said. “It will help us withstand global challenges and protect money in the pockets of families up and down the country.”
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UK and Ireland strengthen economic partnership as £937m investment set to create 850 jobs

The UK economy stalled at the start of the year as households cut back on discretionary spending, with restaurants and food services experiencing a sharp decline in activity.
New figures from the Office for National Statistics (ONS) show that gross domestic product (GDP) recorded zero growth in January, falling short of economists’ expectations and marking a slowdown from the modest 0.1% growth recorded in December. Analysts had forecast that output would expand by around 0.2% over the month.
The disappointing performance highlights the fragile state of the UK economy even before the latest geopolitical shock from the escalating US-Israeli conflict with Iran, which economists warn could further dampen growth by pushing energy prices higher and fuelling inflation.
The ONS said the overall economic picture remained “subdued”, with consumer-facing sectors particularly weak. Within the dominant services sector, which accounts for around 80% of UK economic activity, there was a notable 2.7% drop in food and drink service activity as households curtailed spending on eating out.
This contraction in hospitality suggests that the pressure on household finances continues to weigh heavily on consumer behaviour. Restaurants and pubs are often among the first sectors to feel the impact when consumers begin tightening their budgets.
More broadly, the services sector showed no growth overall during the month, underscoring the cautious spending environment facing businesses.
Other parts of the economy also delivered mixed results. Industrial production slipped by 0.1% during January, while construction activity provided one of the few bright spots, expanding by 0.2% over the month.
The flat reading follows a period of slowing economic momentum during the second half of 2025, when uncertainty over tax changes, rising unemployment and lingering cost-of-living pressures led many consumers to reduce spending.
Although the monthly GDP figure showed stagnation, the three-month measure of economic activity, which is typically less volatile, indicated modest growth. In the three months to January, the UK economy expanded by 0.2%, slightly stronger than the 0.1% recorded in the previous three-month period.
However, economists say the underlying picture remains weak, particularly as global developments threaten to worsen inflation and slow economic activity further.
The latest data was compiled before the outbreak of hostilities involving the United States, Israel and Iran, which has sent global energy prices sharply higher. Oil prices have surged and wholesale gas markets have become increasingly volatile, raising concerns about a renewed cost-of-living squeeze for British households.
Prime Minister Sir Keir Starmer warned earlier this week that the longer the Middle East conflict continues, the more likely it is to have a tangible impact on the UK economy.
Higher energy prices are already feeding through to petrol and diesel costs, while households covered by Ofgem’s energy price cap will remain shielded from immediate increases until the next adjustment period in July.
Nonetheless, economists warn that sustained energy price rises could quickly push inflation higher again. Before the conflict erupted, inflation had been expected to fall to the Bank of England’s 2% target by the spring. A renewed surge in energy costs could derail that trajectory.
The shift in the inflation outlook has already affected financial markets. Expectations that the Bank of England would begin cutting interest rates as early as March have largely evaporated, with economists now widely anticipating that policymakers will hold rates steady when they meet next week.
This change in interest rate expectations has had an immediate impact on the mortgage market. Hundreds of mortgage deals have been withdrawn by lenders in recent days, while average mortgage rates have climbed back to levels not seen since last spring.
If the geopolitical tensions persist, analysts say higher borrowing costs and weaker consumer confidence could undermine Labour’s central economic priority of accelerating growth.
Chancellor Rachel Reeves acknowledged the challenges facing the economy, saying the government remained committed to its long-term economic strategy.
“Our economic plan is the right one, but I know there is more to do,” she said.
“In an uncertain world, we are building a stronger and more secure economy by cutting the cost of living, reducing national debt and creating the conditions for growth so that all parts of the country can prosper.”
Opposition figures were quick to criticise the government’s economic performance. Shadow chancellor Sir Mel Stride said Labour had left the economy exposed to external shocks.
“Labour’s economic mismanagement has left the UK vulnerable to the potential consequences of the Iran conflict,” he said.
“They must now take urgent action, including cutting fuel duty, supporting North Sea oil and gas production and putting forward a credible plan to reduce the deficit and bring down the benefits bill.”
Looking ahead, economists believe growth is likely to remain subdued throughout much of the year.
The Office for Budget Responsibility recently downgraded its forecast for UK economic growth in 2026 to 1.1%, down from its earlier estimate of 1.4%.
Yael Selfin, chief economist at KPMG UK, said the latest GDP figures suggested the economy had begun the year on weak footing and could struggle to regain momentum.
“The UK economy started the year on the back foot and activity is expected to weaken further amid sharply rising energy prices,” she said.
Selfin added that government borrowing costs have increased in recent weeks as financial markets reassess the outlook for interest rates. Higher borrowing costs could act as a headwind for businesses and households alike.
“With expectations for weaker growth combined with rising costs, businesses are likely to scale back investment plans,” she said.
For policymakers, the challenge now lies in navigating a fragile domestic economy while responding to external shocks that threaten to push inflation higher and delay any relief from elevated interest rates.
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