Business live: Starmer pledges extra £1bn to boost UK tech power
Sir Keir Starmer said this morning that the government would invest an extra £1 billion worth of funding to scale up the UK's computing power by a factor of twenty.
Opening London Tech Week, the prime minister said: 'We are determined to be the best state partner for tech entrepreneurs anywhere in the world.'
In January, the government set out its plan for AI, committing to 'set out, within six months, a long-term plan for the UK's AI infrastructure needs'. Tech companies are hoping for more news in Rachel Reeves's spending review this week, including on so-called AI growth zones, which would speed up planning approval and clean energy for data centres.
Jensen Huang, the chief executive of Nvidia, has called Britain's AI sector 'the envy of the world' but said it is missing one 'surprising' thing: AI infrastructure (Katie Prescott reports).
Speaking to Sir Keir Starmer and Baroness Gustafsson, the minister for investment, at the opening of London Tech Week this morning, Huang said: 'If you're in the world of AI, you do machine-learning. You can't do machine-learning without a machine and so the ability to build these AI supercomputers here in the UK will naturally attract more start-ups.'
China and Britain should maintain sustained, stable and healthy development of economic relations, the Chinese vice-premier He Lifeng has told the chancellor Rachel Reeves in London, according to a report on the state-run broadcaster China Central Television (CCTV).
He is meeting the chancellor while he is in London for a second round of trade talks with top US officials.
The talks come as the Chinese owner of British Steel is in an entrenched stand-off with UK ministers over a compensation claim for more than £1 billion. Jingye, owner of the Victorian steelworks in Scunthorpe, is said to want a nine-figure payout from British taxpayers.
A majority stake in the British skincare brand Medik8 has been sold to L'Oréal, the French cosmetics giant. The deal bolsters the French company's position in the fast-growing dermatological skincare market.
The stake is being sold by the UK-based private equity firm Inflexion. No financial details were disclosed.
L'Oréal said: 'This acquisition further strengthens L'Oréal's luxe portfolio, adding a premium science-backed skincare brand with a proven track record of success, with strong potential for global growth.'
Medik8 was founded in 2009 by the British scientist Elliot Isaacs.
Trade talks in London today between the US and China are expected to attempt to revive a preliminary trade agreement reached in Geneva last month, which broke down after President Trump accused China violating the agreement and threatened to impose triple-digit tariffs on Chinese goods.
Beijing's leverage is its near-stranglehold on rare earth minerals that are critical to many high-tech sectors.
Kevin Hassett, head of the National Economic Council at the White House, said on CBS's Face the Nation on Sunday: 'We want the rare earths, the magnets that are crucial for cell phones and everything else to flow just as they did before the beginning of April and we don't want any technical details slowing that down.'
The UK has retained its lead as Europe's most attractive destination for foreign direct investment (FDI) into financial services, despite a 32 per cent drop in activity.
EY's latest Attractiveness Survey for financial services shows the country recorded 73 projects in 2024. Germany was second with 32 projects, down 16 per cent year-on-year, while France was third with 30 projects, down 23 per cent over the year.
Total financial services FDI projects across Europe fell from 329 in 2023 to 293 in 2024, a year-on-year decrease of 11 per cent.
Shares in the advertising giant WPP are down after news that Mark Read is to step down as chief executive.
The chipmaker Alphawave, which is not in the FTSE 100, has jumped 20 per cent after agreeing to a takeover by Qualcomm. Here are the main risers and fallers on the FTSE 100.
The FTSE 100 has opened largely flat — up just 10 points, or 0.1 per cent, at 8,849.42. The more UK-focused FTSE 250 is unchanged at 21,157.77.
The pound is at $1.3566 against the dollar and €1.1876 against the euro. The ten-year gilt yield is down slightly at 4.62 per cent.
A weaker dollar has lifted the price of gold to $3,323.78 an ounce, up 0.4 per cent.
Revolution Beauty has said that the billionaire retail entrepreneur Mike Ashley's Frasers Group was among several parties conducting due diligence for a potential takeover.
The struggling British company, which sells make-up and cosmetics online and through concessions in stores, put itself up for sale last month. Boohoo, the online retailer which has renamed itself Debenhams, has a 27 per cent stake, according to FactSet. Frasers also has a stake in Boohoo.
Revolution Beauty said: 'There can be no certainty that Frasers' interest will result in a firm offer.'
The London-listed chip designer Alphaware is recommending that shareholders accept a $2.4 billion takeover bid from the US chipmaker Qualcomm.
Alphawave investors will receive 183p per share under the deal, a more than 90 per cent premium to its closing price before Qualcomm disclosed its interest in the company.
Arm Holdings, the US-listed, Cambridge-based chip designer, was also said to have been interested in Alphawave.
Mark Read is to step down as chief executive of WPP at the end of the year. In a brief stock exchange statement the advertising giant said that a search for a successor is under way.
'After seven years in the role, and with the foundations in place for WPP's continued success, I feel it is the right time to hand over the leadership of this amazing company,' Read said.
• WPP boss to leave amid industry turmoil created by AI
His departure follows the appointment of Philip Jansen as chairman of WPP at the start of the year.
WPP shares have fallen 32 per cent since the start of the year and are down 56 per cent since Read's appointment in September 2018. The FTSE 100 has risen 18 per cent over the period.
Markets have been buoyed by optimism that the United States and China will ease trade tensions when representatives of both nations meet in London on Monday.
Shares on Asian stock markets bounced, with Tokyo's Nikkei 225 index and Hong Kong's Hang Seng both gaining 1 per cent. Markets in Europe are expected to be more subdued.
Scott Bessent, the US Treasury secretary, and other top Trump aides are expected to meet their Chinese counterparts at an undisclosed venue in London for talks to resolve the trade war between the nations. It comes as data from China showed export growth slowed to a three-month low in May, hit by US tariffs, and amid protests in Los Angeles over President Trump's immigration policies.
• The government will deliver just over half of the 1.5 million new homes it has promised to build by 2029, according to Savills, the property agent, and there are fears the spending review this week could exacerbate the housing crisis.• The pharmaceutical industry has rejected a government offer to cut the cost of a contentious NHS drug pricing scheme as 'falling significantly short'• Nvidia has unveiled a slew of UK partnerships to boost artificial intelligence capabilities as concern increases that Britain is falling behind in the race to develop the technology. The $3.5 trillion multinational chip producer said it would work with the government to help businesses make use of AI.• Economic data released this week is expected to show wage growth moderated and that joblessness rose in the spring while the economy contracted.
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Sky News
22 minutes ago
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Tobacco giant BAT launches quest to smoke out next chairman
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Telegraph
22 minutes ago
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What the winter fuel payment changes mean for you
Will you miss out on winter fuel payment because your income is just above £35,000? Get in touch: money@ Rachel Reeves has U-turned on her controversial winter fuel payment plan, which saw the money removed from all but the poorest pensioners. The Chancellor had restricted the previously universal payments to just those receiving pension credit, removing the money from an estimated 10 million pensioners. From this winter, those over state pension age with an annual income of less than £35,000 will be able to benefit from the payment – the Treasury says this will include more than three quarters of pensioners in England and Wales. Those under the age of 80 can expect £200 per household, while those over the age of 80 can get an extra £100. However, those earning more than £35,000 will pay back the money to HM Revenue and Customs through their tax bills. Mrs Reeves said: 'Targeting winter fuel payments was a tough decision, but the right decision because of the inheritance we had been left by the previous government. It is also right that we continue to means-test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest. 'But we have now acted to expand the eligibility of the winter fuel payment so no pensioner on a lower income will miss out. This will mean over three quarters of pensioners receiving the payment in England and Wales later this winter.' The Government estimates that the new iteration will still save £450m a year, compared to restoring the payment to every pensioner, since there are an estimated two million pensioners with incomes above £35,000. The clawback mechanism is similar to the high income child benefit charge, which sees families on more than £60,000 hand back some, or all, of their child benefit payments. Here, Telegraph Money explains what the new winter fuel payment rules mean for you. What has changed? Rachel Reeves announced last summer that she was removing the £200 winter fuel payment from pensioners who were not in receipt of pension credit, as she looked to fill holes in the public purse. But this proved deeply controversial, as millions of pensioners missed out, with many struggling to cover high energy prices. The change also drove a huge surge in applications for the pension credit, with 285,600 pensioners applying between July last year and the end of May, an increase of 51pc. This saw delays of as long as 87 days for those waiting to be approved for the benefit. Campaign groups said that restricting eligibility to those receiving pension credit made some of the very poorest pensioners worse off, as many were just above the threshold for the benefit. The Government has now changed its mind. According to the latest announcement, this winter will see all pensioners over state pension age paid the £200 or £300 – but those who are not eligible to keep it will pay it back to HMRC. The annual income threshold has been set at £35,000. This means that nine million pensioners will receive the payment this year, compared to approximately 1.5 million last year. It is not clear whether the threshold will be increased annually with inflation, or linked to increases in the so-called 'triple lock', which sees the state pension increased by one of three measures each year. How to claim? Pensioners will not need to actively claim the payment, as it will be made automatically – but it will be possible to opt out. There will be no need to register with HMRC to receive the payment. Pensioners will be eligible if they have reached state pension age – currently 66 – by the qualifying week, which this year will be September 15 to September 21. How will it be paid back if I earn more than £35,000? If you earn more than £35,000, the payment will be clawed back through your tax bills. The Government says this will be done through the PAYE system, or via self-assessment. Sir Steve Webb said that for those with large company pensions, which are taxed through PAYE, this should be relatively easy for the Government to administer. If you earn over the threshold, the entire payment will be claimed back through your tax bills, with no taper. Is winter fuel allowance per person or household? Confusingly, the winter fuel payment is paid per household, but the earnings clawback is calculated individually. This means that a household will receive no more than £300 (for those over the age of 80), but each person's income is used to determine whether their half of the payment is removed via tax. I live alone. What happens if I earn just over £35,000? While someone who lives alone will be paid the full £200, or £300 if they're over 80, having an income of over £35,000 would mean the full winter fuel payment is taken back via tax. For those earning just over the threshold of £35,000, it might be worth considering reducing what you're taking from a pension pot. Alice Haine, of Bestinvest, said: 'Ultimately, for pensioners earning just above the £35,000 threshold, the latest news will be disappointing. Some may even choose to reduce their income from private pensions if it means they can just skim under the threshold to receive the payment.' What happens if I earn more than £35,000 but my spouse doesn't? If one pensioner in a household earns more than the threshold and the other doesn't, then £100 will be clawed back by HMRC from the higher earner. This is because the allowance is paid on a household level, so if there are two pensioners living in the same home, then it is split equally between them. This means that households where one pensioner earns £100,000 and the other earns £34,000, would receive £100 in winter fuel payment. The other £100 would be paid back through the tax system. Can I get the winter fuel payment if I am a millionaire? You could technically be a millionaire and keep the winter fuel payment if your income is less than £35,000. Even if a pensioner is asset rich, with a large home or pension pot, if their annual income for tax purposes is below the threshold, they will still be permitted to keep the payment. Sarah Coles, of Hargreaves Lansdown, said: 'The balance of property assets and pension income for older people can leave them wealthy on paper, and yet seriously strapped for cash on a daily basis. In the short term, things like the winter fuel payment can help.' Some millionaires don't believe they should receive the payments at all. Digby Harper, 79, a retired manufacturing company owner, said that he would not have the winter fuel payment restored, having sold his business for several million pounds when he retired. He said: 'As far as I am concerned, it's perfectly ok. I can't see why they gave me that money in the first place. I just don't need it. 'My wife used to describe it as her 'wine allowance'. I think it's a trivial issue. It's a big political issue but it's a nonsense.' How much do I get if I am over 80? Those over the age of 80 receive an additional £100 in winter fuel payment. For single pensioners, or households where both people are over 80, this would mean a payment of £300. In households with one pensioner under the age of 80 and one over, payments will be made of £100 and £150 respectively, sources at the DWP confirmed. This means that a total of £250 will be paid to mixed-age households. If either pensioner is over the income threshold, then their share would be clawed back. If both pensioners earn over the threshold, all £250 would be clawed back. Can I opt out? Pensioners will be able to opt out of receiving the payment at all, if they so choose. For those earning more than £35,000, this means that no additional money will be claimed by HMRC. More details about how pensioners can opt out will be announced by the Government at a later date. This is similar to how parents can opt out of receiving child benefit payments, if they earn over the threshold and would have to repay it. Opting out of child benefit can be done using an online form on the Government website, or by phone or post. As of August last year, more than 712,000 families had opted out of receiving child benefit payments.
The Sun
23 minutes ago
- The Sun
Reeves' toxic snatching of Winter Fuel cash from millions of pensioners will haunt Labour for years to come
AS POLITICAL u-turns go, Rachel Reeves' retreat on winter fuel payments will surely go down as one of the biggest - and messiest - in history. Her first act as Chancellor to snatch the cold weather cash from 10million pensioners has today been spectacularly dumped. 1 Nine million OAPs will now get the benefit, meaning all but the richest will claw back the £200-£300 sum. With a price tag of £1.25billion, this whole palaver has only saved the Treasury £450million. It's chicken feed in the grand scheme of things, and a tenth of the annual migrant hotel bill. But the political cost has been devastating. Labour insiders trace their spanking at last month's local elections back to Ms Reeves' toxic decision in the weeks after the election. That the winter fuel policy was still coming up on doorsteps 10 months later was a sign it was destined for the shredder. Yet rather than ripping off the plaster cleanly, the past few weeks have seen an agonising u-turn mired in chaos and confusion. And the Government is still not clear how the softening will be paid for, sparking inevitable fears of more tax rises. Speculation continues to swirl around Ms Reeves' own political fate and whether she is in line for the chop. We know Sir Keir Starmer can be ruthless in wielding the knife, but it is unclear this nuclear option would actually help. Just ask Liz Truss about the perils of a PM sacking a Chancellor with whom they are ideologically joined at the hip. Four years is a long time until the next general election, and Sir Keir and Ms Reeves will be hoping voters would have since moved on. But - even with today's backing down - the winter fuel debacle is likely to live long in the memory of the electorate and haunt Labour for a very long time.
