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Amazon has placed orders for more than 150 electric heavy goods vehicles (HGVs) in a bid to create Britain’s largest zero-emission truck fleet. The online retail and logistics giant is also stepping up its commitment to rail transport, moving packages along the west coast main line for onward distribution.
Amazon confirmed it has ordered over 140 new Mercedes-Benz eActros 600 trucks and eight Volvo FM Electric units, supplementing nine electric tractor units already in its fleet. By the end of this year, it expects to have 160 large zero-emission HGVs in operation.
While the company declined to specify exact costs, with each e-HGV priced at up to £200,000, the outlay could total around £30 million. The trucks boast a range of 310 miles per charge and take about an hour to recharge at high-speed stations.
The orders form part of a wider plan to add 1,500 electric trucks to Amazon’s European fleet by 2027, backed by a £300 million investment. Though Amazon has yet to disclose how many diesel HGVs it still operates, the firm remains committed to achieving net zero emissions by 2040.
It is estimated there are currently only 300 electric HGVs on UK roads. Amazon’s new orders are therefore set to make a sizeable impact, firmly accelerating Britain’s transition to electric transport solutions.
In parallel, the company will expand its use of rail freight, transporting shipping containers on the west coast main line between Scotland, the West Midlands and London. These deliveries will link to local sorting centres for further handling and last-mile service.
Amazon has also revealed plans for on-foot deliveries in central London, using restockable trolleys and working alongside partners who operate electric vans and e-cargo bikes.
“This is a win for our customers, the environment and our business,” said Nicola Fyfe, head of Amazon logistics in Europe. “By deploying the country’s biggest order of eHGVs, making use of the UK’s electric rail network, and launching on-foot deliveries, we are cutting emissions and boosting delivery efficiency.”

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Amazon invests in the UK’s largest e-HGV fleet, expands rail deliveries

Retailers in London’s West End have warned that new business rates reforms could spell store closures and job losses, with the flagship shopping district facing a collective rise of £44.5 million in property bills next year.
The New West End Company, which represents 600 retail, hospitality and leisure businesses in the area, highlighted a potential 20 per cent hike in rates bills following changes announced in the autumn budget.
Dee Corsi, chief executive of the New West End Company, described the rise as “another cost for businesses” on top of rising employers’ national insurance contributions and the minimum wage. “Already faced with a rapidly rising tax bill, it is hard to see how increasing the business rates burden won’t tip the scales towards job losses and store closures,” she warned.
Chancellor Rachel Reeves used her recent budget to unveil a two-tiered business rate for retail, hospitality and leisure properties with rateable values under £500,000 from 2026-27. While the Treasury’s discussion paper notes these measures will capture larger distribution sites used by “online giants”, more than two thirds of New West End members say they will pay “millions more” each year. Prominent retailers in the district, including Marks & Spencer and H&M, are already grappling with squeezed margins and footfall challenges.
The government relies on business rates—forecast to raise £26 billion in England this year—as a stable source of revenue for local authorities, but bricks-and-mortar shops argue that the system places too heavy a burden on property-intensive sectors. The British Retail Consortium has also voiced concerns, stressing that retail and hospitality currently shoulder over a third of total business rate costs despite making up only 9 per cent of the overall economy.
Labour’s manifesto pledges to replace the current structure with a fairer system that “levels the playing field” between physical shops and online behemoths, aiming to combat empty retail units across high streets. While businesses welcome an overhaul, many remain anxious about short-term costs and the impact on already-fragile margins. The government declined to comment on the warnings from West End retailers.
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West End retailers warn of shop closures as business rates surge

Hiring outside London has dropped significantly after Chancellor Rachel Reeves unveiled her first Budget, leaving regional businesses scrambling to contain costs.
The recruitment firm Robert Walters reported a 45pc fall in fee income from operations outside the capital during the final quarter of 2024, while London-based income rose by 3pc.
The company attributed the decline to a hiring slowdown triggered by Ms Reeves’s tax measures, including a £25bn increase in employers’ National Insurance contributions. Toby Fowlston, chief executive of Robert Walters, said the surcharge “has been a dent to employers, and obviously that cost is needing to be absorbed.”
A trading update revealed that the 30 October Budget rattled business confidence and dampened employers’ hiring plans in the closing months of 2024. The Institute of Directors reported that business confidence fell to its lowest level since the first Covid lockdown in December 2024.
Mr Fowlston noted that worker confidence has also taken a hit, as many employees who secured “premium salaries” in the post-pandemic hiring boom are hesitant to switch roles in an uncertain market. “If you put yourselves in the shoes of an employee, they’re thinking: I’m on a good salary, the market is volatile, why would I move?” he explained.
He added that Labour’s plans to overhaul UK employment law could amplify the pressure on Britain’s jobs market. “Further increases in costs” for employers would be “critical” for Labour to address in collaboration with businesses, he warned, cautioning that reforms—especially around zero-hours contracts—could have unintended negative consequences.
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Regional hiring slumps as Labour’s NI rise dents employers’ confidence

Prime Minister Keir Starmer has outlined a sweeping vision for the UK to become the world leader in artificial intelligence, pledging a distinctively British approach to regulation while unleashing AI’s potential to revive the country’s sluggish economy.
Unveiling the government’s “AI Opportunities Action Plan”, Starmer vowed to break from both the US and EU regulatory paths. His aim is to create an environment that encourages innovation and investment, including the creation of dedicated AI growth zones to fast-track approvals for data centres and other key infrastructure.
Among the 50 policy recommendations are measures to expand the UK’s supercomputing capacity twentyfold by 2030, as well as enabling public services to become more efficient through AI-led automation. The government hopes a focus on education and talent development will help transform everything from local councils detecting potholes to schools reducing bureaucracy, freeing people to deliver more “human-centred” services.
The Labour administration also announced that three tech firms have committed £14 billion in AI-related investments, pledging to create over 13,000 new jobs. Yet criticisms remain. The Conservative opposition has questioned Labour’s record on funding after a previous supercomputer project was scrapped, while Shadow Science Secretary Alan Mak accused the government of failing to provide enough resources to genuinely power the UK’s AI leadership ambitions.
In a nod to the technology’s risks, the plan includes a commitment to complete a review of AI’s impact on intellectual property rights. Concerns persist regarding AI-driven misinformation, deepfake content and possible job losses, although senior minister Pat McFadden emphasised the importance of viewing the technology’s potential in a positive light.
Business leaders in AI and HR professionals alike welcomed the action plan. Gordon Baggott of 4most hailed it as a “pivotal moment” for economic growth, while Hayfa Mohdzaini, senior policy and practice adviser for technology for the CIPD, the professional body for HR and people development, said: “We welcome the government’s plans to boost the use of AI across the UK’s public services, which could bring significant productivity gains to the UK economy. Letting AI handle repetitive and administrative tasks can help workers deliver more human public services. Used well, AI can enhance jobs to make them more fulfilling for people.
“However, it will be important for employers to monitor how the technology is used and manage risk. A CIPD poll of over 1,500 people in January 2025 found that six in 10 respondents would trust AI to inform, but not make, important decisions at work. This highlights the importance of human oversight when introducing this technology.
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Starmer sets out new AI action plan to cement Britain’s global tech dominance

In a setback for Prime Minister Sir Keir Starmer, one of Britain’s biggest supermarkets has publicly thrown its support behind farmers opposed to the Government’s planned inheritance tax (IHT) reforms.
Sophie Throup, head of agriculture at Morrisons, posted a video message on X (formerly Twitter) declaring the retailer’s solidarity with farming communities, who are preparing to protest nationwide on Friday over what they call a “devastating” tax raid on family farms.
The new levy, which comes into force in April 2026, will impose a 20 per cent inheritance tax on farming estates valued over £1 million. Although this is half the standard 40 per cent IHT rate, the move has sparked fears that smaller, family-run farms could be forced to sell off land or face crippling financial burdens. Under current rules, individuals can transfer their estates tax-free if they live for another seven years, but the new measure would significantly tighten reliefs for agricultural property.
Ms Throup said Morrisons had raised “concerns at the highest level of government” since the policy was announced last autumn, telling farmers she “understands your anger and frustrations” and inviting them to contact her directly. While many welcomed the supermarket’s intervention, others questioned whether it was more of a public relations gesture than a genuine willingness to fight on farmers’ behalf.
Some farmers questioned the supermarket’s committment to their cause, suggesting it might be a PR opportunity Credit: Jamie Lorriman
Mo Metcalf-Fisher, external affairs director at the Countryside Alliance, hailed the supermarket’s intervention as a “major development” in attempts to convince both Sir Keir Starmer and Chancellor Rachel Reeves to reconsider the proposal. Some farmers remain sceptical, however. Clive Bailye, founder of online platform The Farming Forum, pointed out that supermarkets have traditionally been tough negotiators on prices and questioned their real motives.
The Government insists it has no plans to back down. A spokesperson said that under its “fair and balanced” reforms, farmers still benefit from a reduced IHT rate of 20 per cent, payable interest-free over a decade, while pointing to a £5 billion investment in agriculture over two years. Despite these assurances, tensions remain high, with protests scheduled and the National Farmers’ Union confirming it has lobbied retailers to push for a more favourable outcome. Whether Morrisons’ show of support translates into actual policy change remains to be seen.
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Supermarket giant Morrisons backs farmers as inheritance tax row lands blow to Starmer

Concerns are escalating over the future of Northern Ireland’s largest private employer, with 2,700 jobs at risk at Spirit Aerosystems’ Belfast factory.
The site’s predicament stems from complications in a takeover deal involving Boeing, which agreed to acquire Spirit, and Airbus, which has said it will only purchase the portion of the plant manufacturing A220 aircraft wings.
Spirit, a key supplier to the global aerospace sector, had hoped to sell the remainder of its Belfast operations—spanning six locations including West Belfast—to a new buyer. However, a failure to secure any firm commitments has intensified fears among workers and union representatives. An update just before Christmas offered little clarity, leaving the workforce braced for potential fallout as Boeing’s deal to buy Spirit is set to conclude by mid-year.
Despite Airbus’s chief commercial officer, Christian Scherer, confirming interest in Spirit’s separate site in Prestwick, Scotland, there has been no concrete update on Belfast. George Brash, from the Unite union, warns that the factory could be “collateral damage” if no buyer is found in time. He is urging Airbus—which already runs substantial facilities in France and Germany—to consider taking control of the entire Belfast plant, which employs nearly 3,800 people in total.
The origins of the factory date back to 1936, when it was built by Short Brothers to produce military aircraft during the Second World War. More recently, its capabilities have ranged from crafting Rolls-Royce engine casings to components for Bombardier business jets. However, part of Spirit’s troubles followed an incident in Malaysia, where a faulty door plug on a 737 Max was traced back to a Spirit-owned facility, prompting Boeing to initiate the takeover process.
Union officials fear that if Airbus cherry-picks the A220 wing operations alone, the rest of the complex could be discarded, bringing a devastating blow to Northern Ireland’s aerospace sector. In response, Spirit maintains that it is actively searching for a new investor or owner who can nurture the Belfast business and protect its long-term viability.
While Airbus expresses optimism that a resolution for Prestwick may be near, it remains silent on any parallel rescue plan for Belfast. As the summer deadline looms, tension continues to build among Spirit’s workforce, who feel they are left in limbo and are demanding answers—along with more direct support from political leaders—for the safeguarding of thousands of skilled manufacturing roles in the region.
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Uncertain future for over 2,700 Belfast aerospace jobs as takeover stalls

Agreements worth £600 million, potentially adding £1 billion in value to the UK economy, have been secured following Chancellor Rachel Reeves’ trip to Beijing.
Winnie Cao, Head of Blick Rothenberg’s China Desk and China Business Group, described the productive discussions between Reeves and Vice Premier He Lifeng as a positive sign for both Chinese and British businesses. “Another outcome of this visit is the opening up of the legal services market, allowing more UK law firms to operate in China,” Cao said. “This will be welcome, as Chinese companies often need professional guidance in the same time zone, yet local Chinese law firms can lack in-house UK expertise.”
Cao also highlighted a new understanding between the Chinese Institute of Certified Public Accountants (CICPA) and the Institute of Chartered Accountants in England and Wales (ICAEW) to explore “expanding the scope of mutual examination exemptions”. This, she said, could encourage more Chinese accountancy students to earn a UK ICAEW qualification — and vice versa — benefiting firms in both countries. “The UK accountancy sector has struggled for talent in recent years, and having more UK-qualified accountants in China may open up cost-effective outsourcing opportunities,” she noted. “At the same time, Chinese accountants who are UK-qualified will be of great help to Chinese businesses wishing to expand into the UK.”
One particular hurdle for Chinese firms investing abroad is the cultural gap in tax and accounting rules, but Cao believes that if these firms have access to more UK-qualified finance professionals, initial misunderstandings will be bridged more easily.
Although the progress made during Reeves’ China visit marks a step forward, Cao urged the UK government to seize the momentum and negotiate a social security reciprocal agreement. “Similar arrangements exist with South Korea and Japan,” she said. “Such an agreement would reduce both costs and paperwork for expatriates moving between the two countries, encouraging deeper mutual investment.”
Overall, Reeves’ visit appears to have laid the groundwork for renewed bilateral cooperation, with significant opportunities for British professionals in China, Chinese firms in the UK, and potential progress on regulatory reforms that ease cross-border trade and investment.
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Rachel Reeves’ China visit restores crucial links with world’s second-largest economy

Britons and overseas visitors may soon find themselves paying a “hotel tax” on every overnight stay, under Treasury proposals designed to shore up the public purse as borrowing costs continue to climb.
The potential levy, part of “modelling exercises” carried out by officials, mirrors the tourist taxes in countries such as France, where the nightly charge ranges from less than £1 at a campsite to more than £12 in five-star accommodation.
Chancellor Rachel Reeves, who introduced £40 billion in tax increases at last autumn’s Budget, has repeatedly insisted there will be no repeat of those hikes. However, tumbling bond prices and the highest government borrowing rates since 2008 mean she may soon be forced to find new revenue streams. Analysts say that unless taxes rise or spending falls, Reeves risks breaching her self-imposed fiscal rules — a scenario that could further erode market confidence in the UK’s economic stability.
Under the prospective nationwide scheme, both domestic travellers and foreign visitors would pay an added charge on their nightly stay. This comes as several parts of the UK explore local tourism levies. Wales is proposing a nightly fee of £1.25 for visitors, while Edinburgh will introduce a 5 per cent tax on accommodation from July 2026. According to the TaxPayers’ Alliance, rolling out the Welsh model across England would net about £560 million a year. Adopting something closer to the French system, however, could yield more than £1 billion.
Hoteliers warn of detrimental consequences. Sir Rocco Forte, whose eponymous hotel group has a global footprint, argues the measure would be a “pernicious new tax” coming on top of increases in employers’ national insurance, rising air travel levies, and the scrapping of VAT refunds for foreign tourists. He believes it would hit the entire tourism supply chain — from restaurants and museums to taxi drivers and shops — as visitors rein in spending to offset the higher cost of accommodation.
Reeves, currently on a high-profile visit to China aimed at attracting inward investment, has come under fire over the timing of her trip. Gilt yields have soared in recent days as so-called “bond market vigilantes” demand higher returns for holding UK debt, pushing up government borrowing costs. Meanwhile, the pound fell below $1.22, a decline that does make Britain cheaper for overseas travellers but also raises concerns over import-driven inflation.
If borrowing costs remain elevated, the Treasury could look beyond a hotel tax to keep the chancellor’s fiscal pledges intact. More substantial measures might include an increase in corporation tax or cuts to welfare and disability benefits. Observers note that the spring statement, scheduled for 26 March, could become a de facto emergency budget if market conditions fail to improve.
Sir Rocco Forte’s condemnation of the hotel levy reflects mounting exasperation in the tourism sector, which contends that hospitality already shoulders heavy taxes and regulatory costs. He points out that several other countries that impose a tourist tax ring-fence the proceeds to enhance visitor facilities. By contrast, the UK’s plan, he fears, would simply funnel the proceeds into filling “the black hole” in public finances.
Despite the outcry, Treasury insiders remain tight-lipped, calling talk of a new hotel tax “speculation.” A spokesperson has insisted the chancellor will stick to her fiscal rules and continue to pursue spending restraint. Ministers plan to review expenditures in June to “root out waste,” but industry observers argue that a new tourism levy risks undermining one of the UK’s most vibrant sectors.
In the end, whether the chancellor can balance the books without a fresh round of tax hikes will largely depend on market sentiment. As the cost of government debt climbs, so does the political imperative to find revenue sources that avoid repeating the hefty tax rises enacted last autumn. The final decision could hinge on whether an increasingly value-conscious travel market is willing to pay an extra nightly charge for the privilege of visiting Britain’s shores.
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Rachel Reeves weighs a ‘hotel tax’ as treasury battles to fill funding gap

Britain has “no choice at all” but to engage with China, Rachel Reeves has argued, as she seeks to shore up economic growth against a backdrop of soaring borrowing costs and uneasy financial markets.
The chancellor arrived in Beijing to finalise new trade and investment commitments worth £600 million over five years, the first trip by a UK chancellor to China in over half a decade.
Her visit comes as the UK grapples with stubbornly high inflation and renewed doubts over how quickly the Bank of England can cut interest rates. The yield on 30-year government debt remains at a 27-year high, while the pound has lost ground against the dollar — both unwelcome echoes of last year’s market turmoil.
Reeves reaffirmed her “non-negotiable” fiscal rules, emphasising that economic stability is vital to restoring confidence. The Treasury’s upcoming spending review is already expected to demand efficiency savings of at least 5 per cent across Whitehall, and the spike in debt-servicing costs could see that figure rise further. Reeves has vowed not to repeat the tax hikes of last autumn, though her options have narrowed as inflationary pressures remain persistent.
Paul Johnson, director of the Institute for Fiscal Studies, warned that any breach of the chancellor’s self-imposed borrowing limits would rattle the markets and send yields higher still. That scenario looms larger with the cost of servicing the government’s debt surging and subdued economic growth undermining tax receipts.
To help counter these pressures, the chancellor aims to increase trade and inward investment ties with China. She argues that the UK’s former, more isolationist stance put the country at a disadvantage when France and Germany were expanding their own commercial relationships with Beijing. China is the world’s second-largest economy and the UK’s fourth-largest trading partner, supporting nearly half a million British jobs through exports.
Agreements reached with Vice Premier He Lifeng include further cooperation in areas such as financial services, cross-border investment, climate initiatives, and agriculture. “Choosing not to engage with China is therefore no choice at all,” Reeves said, insisting that relations should remain “respectful and consistent” despite sharp ideological differences.
Investors have become warier of UK assets in recent weeks, spooked by inflation lingering stubbornly above the Bank of England’s 2 per cent target. Markets had anticipated two quarter-point rate cuts this year, trimming the Bank’s key interest rate from 4.75 per cent down to 4.25 per cent. Analysts now question whether the second cut will materialise, a setback for the 1.8 million households on fixed-rate mortgages due to expire in 2025.
That doubt spells trouble for borrowers hoping two-year fixed mortgage rates would drop beneath 4 per cent. Economists at Pantheon Macroeconomics predict that high inflation could persist, lifting price expectations and dampening the Bank’s appetite for monetary easing. But others, including George Buckley of Nomura, believe rising gilt yields themselves will act as a brake on inflation, allowing more cuts over the coming year.
Beyond the UK, uncertainty hangs over the global economy as Donald Trump’s White House transition adds volatility to currency markets. The dollar has benefited from his pledges on corporate tax reform and deregulation, reinforcing a strong greenback at the pound’s expense. Mortgage brokers say any softening in expectations for British rate cuts will prolong elevated mortgage costs, weighing on the housing market and consumer spending.
For the chancellor, the challenge now is to leverage new trade deals abroad without jeopardising her hard line on fiscal discipline at home. With the Treasury acknowledging that further public spending cuts may be inevitable if debt servicing costs keep climbing, Reeves’s mission in Beijing underlines her broader economic strategy: to stabilise markets, foster growth, and forge alliances — even in politically delicate terrain — to keep Britain on a sustainable path.
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Chancellor heads to China in search of growth amid surging borrowing costs