Latest news with #BusinessandTradeCommittee
Scotsman
22-05-2025
- Business
- Scotsman
Political opinion: Gregor Poynton MP: 'Baffling' SNP are against deal backed by NFU Scotland and food industry
Gregor Poynton MP welcomed the new UK-EU agreement announced by the Prime Minister on Monday, calling it a 'huge step forward' for Scottish exporters and hit out at the SNP in a Commons debate today for opposing it. Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... In a statement in Parliament following the Business and Trade Committee's report on strengthening UK-EU relations, Mr Poynton highlighted that the new deal is backed by key Scottish industry voices, including Scottish Salmon and NFU Scotland. 'Our report covered how we could help agri-food businesses export into the EU and I was delighted to see Scottish Salmon and NFU Scotland come out in support of the deal this week. Therefore, does my Right Honourable friend agree with me that it was baffling to see the SNP stand with Reform and the Tories in opposition to the deal?' The new UK-EU agreement includes: Advertisement Hide Ad Advertisement Hide Ad Gregor Poynton MP at a business roundtable. - A permanent SPS agreement, reducing red tape for food exporters and cutting costs for consumers. - A deal to link UK and EU Emissions Trading Systems, protecting British industry from EU carbon taxes and boosting energy security. - New protections for UK steel exports, saving the sector £25 million annually. - A 12-year agreement on fishing access that secures UK rights and delivers £360 million for coastal communities. Advertisement Hide Ad Advertisement Hide Ad - Reintroduction of pet passports and access to EU eGates for British travellers. - Progress on a youth experience scheme, which could reopen work and travel opportunities across Europe. - Enhanced security cooperation, including talks on facial recognition data-sharing. - A commitment to tackle illegal migration, including joint efforts to disrupt Channel crossings. Advertisement Hide Ad Advertisement Hide Ad The deal is forecast to boost the UK economy by nearly £9 billion by 2040 through reduced trade friction and stronger energy cooperation. Responding, Committee Chair Liam Byrne MP said the proposals were 'practical, hard-headed and common sense,' and noted that they had received overwhelming support from business groups across the UK, including Scotland. 'This agreement doesn't just fix what Brexit broke; it delivers a stronger, forward-looking UK-EU partnership that puts growth, jobs and security first,' Mr Poynton added. Read the full Business and Trade Committee report here:
Yahoo
09-05-2025
- Automotive
- Yahoo
US-UK trade announcement: 'this isn't a deal, it's an amuse-bouche'
The morning after the US-UK trade agreement was announced, experts are beginning to wrap their heads around what the deal entails, and reactions are trickling in. The overriding sense is that in the absence of any granular detail on what the deal means for several industries, there is still hope that the UK government can deliver favourable terms. In effect, the past few weeks have been 'talks about talks,' trade experts say, as the real negotiations haven't taken place yet. This is normal in 'Trump world.' However, despite tentative optimism on the UK's end, Trump's posts on Truth Social are selling the deal as a US win at the direct expense of the UK. This scarcity of information on the terms of the deal is not characteristic of usual trade announcements, as seen from the UK-India trade agreement. Even within the government, it's unclear exactly what this deal will look like. Gregor Poynton, Labour MP and member of the Business and Trade Committee, said: 'From the early indications, this looks to be a great deal for the UK, opening up the world's largest economy to our exceptional British products and innovation.' Others are less bullish. Professor Simon Evenett, co-chair of the World Economic Forum's Council on Trade and Investment and former World Bank Economist, said, 'This isn't a deal; it's an amuse-bouche.' Evenett called the deal 'thin' and said it 'falls short of expectations.' For Evenett, the deal was announced before it had much substance because 'the President needed a short-term win to reassure the financial markets,' something that has worked, at least in Europe. The UK automotive industry has been touted as one of the biggest winners, but it remains to be seen which companies are set to benefit. The deal specifies that the first 100,000 UK cars imported into the US will be subjected to a 10 per cent tariff, and every car sold after that will be subjected to a 25 per cent tariff. Either the government will allocate (or auction off) the first 100,000 slots to specific companies, or it will be a 'first come, first served' system, or 'free for all,' wherein UK companies will sell cars in the US with the more favorable tariff rate until they hit the 100,000 mark. Evenett said that fundamentally, the UK is worse off than it was at the start of the year but better off than it was post-Trump Tariffs. While President Donald Trump said yesterday that this is a 'maxed-out deal,' several industries are still unsure where they stand. Karen Betts, Chief Executive of the Food and Drink Federation, said: 'There is obviously still the question of the 10 per cent tariff that continues to apply to food and drink exports.' Betts added that the US is the UK's third biggest food and drink export market, worth £2.7bn last year. As many of these exports are produced by smaller or medium sized companies, '[g]overnment can make a real difference here by providing greater practical guidance,' Betts said. Tech has always been a major component of trade discussions with the US. Trump pushed for the UK's two per cent digital services tax (DST), affecting US tech giants like Meta and Apple, conceiving them to be unfair and discriminatory. POLITICO reports the UK government will be gunning for wide-spanning terms on tech, including AI, but that the US will still be pushing for the DST to be cut. A senior Labour MP told City AM that the two per cent was 'chicken feed' for US tech giants, but that it's 'a matter of principle' to them. The Exchequer stood to raise £800m from this tax this year, the loss of which won't constitute 'a black hole' in the budget, the Labour MP says, but which has still been earmarked for public funding. Evenett said the UK government has 'kicked the ball into the long grass. They've said we're going to negotiate on digital trade matters, but they did not say anything about [the digital services] tax being included in their negotiation. But they didn't say it wasn't either.' Julian David, CEO of techUK, remains ambitious. He hopes that that momentum from this deal should be used towards enabling 'trusted data flows, regulatory alignment, and resilient, innovation-led growth,' and '[e]mbedding emerging technologies – from AI to quantum – into this framework.' A trade expert tells City AM that 'the announcement implies that the US and UK will strengthen UK-US cooperation on economic security matters, which likely means tightening regulations to ensure UK technology is not exported to China.' Evenett said: 'A lot of [the deal] has been framed in terms of increasing the economic security of both the US and the UK. And that's seen on US terms [to mean] essentially freezing out China wherever possible.' 'The UK Government is being invited to stand next to the United States in its opposition to China on economic security. London will have to decide how far they want to go on this,' Evenett added. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Daily Mail
24-04-2025
- Automotive
- Daily Mail
Nissan estimates £4BN net loss as it embraces major cost-cutting measures
The Yokohama car firm had originally predicted a net loss of ¥80billion (£426million) for the year ending 31 March 2025. Towards the end of last year, alarm bells were sounded at the company, which was described as being 'on the brink of collapse' with 'just 12 months to survive' amid a company-shaking sales slump in China and the US, its two biggest markets. On Thursday, it revised down its full-year sales volume reported in February by another 3.35million units. The Japanese auto firm, which employs 7,000 people in the UK and 17,000 in the US, has this month drafted in new chief executive Ivan Espinosa, who will spearhead a dramatic cost-cutting programme in an effort to rapidly turnaround its fortunes. Nissan said in November it would axe 9,000 jobs and 20 per cent of its global manufacturing capacity, as it scrambles to reduce costs by £2billion in the current fiscal year. It attributed the enormous rise in losses to the cost of the revival plan set out by Espinosa, including a ¥500billon (£2.6billion) reduction in the value of its production facilities and ¥60billion (£316million) in restructuring costs. It looks certain to be the company's largest ever loss and comes as its new CEO is expected to lower the axe on thousands of global jobs, reduce production capacity and shutter some of its vehicle plants. It has yet to rule out closing its Sunderland factory - Britain's biggest car producer - as part of its restructure. Thursday's report comes days after Alan Johnson, Nissan's senior vice-president for manufacturing, supply chain and purchasing, told MPs that the UK is 'not a competitive place to be building cars', citing energy and labour cost, as well as the lack of a local supply chain. Speaking to the House of Commons' Business and Trade Committee on Tuesday, he said: 'It is energy costs - it is the cost of everything involved in the cost of labour, [and] training. It is the supplier base, or lack of - all sorts of different issues.' Approximately 6,000 people are employed at the Sunderland plant. Last year, 282,124 vehicles - including Jukes, Leaf EVs and Qashqais - were built there. This output represented more than one in three (36.2 per cent) passenger cars made in UK factories in 2024. However, production was down some 13.2 per cent on the year previous. It was confirmed in February that a late shift on one of the factory's assembly lines would be closed, but no jobs were lost after some 400 affected workers were moved other production lines to 'maximise efficiency'. Ivan Espinosa took over as CEO on 1 April. A mechanical engineer who has been with Nissan since 2003 in a variety of strategy and planning jobs, he now has the monumental task of bringing the car maker back from the brink. In the company statement delivered on Thursday, he said: 'We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets. 'We now anticipate a significant net loss for the year, due primarily to a major asset impairment and restructuring costs as we continue to stabilise the company. 'Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turnaround Nissan in the coming period.' The Japanese car company estimates to end the fiscal year with almost ¥1.50trillion (£7.9billion) in its coffers. This is down on the near-¥1.55trillion (£8.2billion) it had at the end of 2023-24. The firm added that it expects to end the year with ¥1.9trillion (£10billion) of debt. Nissan and Honda ended merger talks to forge a £45billion car company in February. The deal broke apart due to Honda's proposal to make Nissan a subsidiary, sources have said. Nissan said it now expects full year operating profit of ¥85billion (£448million), around 30 per cent lower than it previously forecast. The automaker, which said it will forego a dividend for the full year, will report its earnings on 13 May.
Daily Mail
24-04-2025
- Automotive
- Daily Mail
Nissan estimates £4bn net loss in revised earnings prediction - nearly TEN TIMES more than it originally forecast
Struggling car giant Nissan has revised its earnings forecast for the financial year, predicting net losses almost 10 times higher than it had originally set out. The Japanese brand is expected to confirm next month a record net loss of ¥700billion to ¥750billion for the 2024-25 year, which is between £3.7billion and £4billion. The Yokohama car firm had originally predicted a net loss of ¥80billion (£426million) for the year ending 31 March 2025. Towards the end of last year, alarm bells were sounded at the company, which was described as being 'on the brink of collapse' with 'just 12 months to survive' amid a company-shaking sales slump in China and the US, its two biggest markets. On Thursday, it revised down its full-year sales volume reported in February by another 3.35million units. The Japanese auto firm, which employs 7,000 people in the UK and 17,000 in the US, has this month drafted in new chief executive Ivan Espinosa, who will spearhead a dramatic cost-cutting programme in an effort to rapidly turnaround its fortunes. Nissan said in November it would axe 9,000 jobs and 20 per cent of its global manufacturing capacity, as it scrambles to reduce costs by £2billion in the current fiscal year. It attributed the enormous rise in losses to the cost of the revival plan set out by Espinosa, including a ¥500billon (£2.6billion) reduction in the value of its production facilities and ¥60billion (£316million) in restructuring costs. It looks certain to be the company's largest ever loss and comes as its new CEO is expected to lower the axe on thousands of global jobs, reduce production capacity and shutter some of its vehicle plants. It has yet to rule out closing its Sunderland factory - Britain's biggest car producer - as part of its restructure. Thursday's report comes days after Alan Johnson, Nissan's senior vice-president for manufacturing, supply chain and purchasing, told MPs that the UK is 'not a competitive place to be building cars', citing energy and labour cost, as well as the lack of a local supply chain. Speaking to the House of Commons' Business and Trade Committee on Tuesday, he said: 'It is energy costs - it is the cost of everything involved in the cost of labour, [and] training. It is the supplier base, or lack of - all sorts of different issues.' Approximately 6,000 people are employed at the Sunderland plant. Last year, 282,124 vehicles - including Juke, Leaf EVs and Qashqais - were built there, representing more than one in three (36.2 per cent) of passenger car output at UK factories in 2024. However, production was down some 13.2 per cent on the year previous. It was confirmed in February that a late shift on one of the factory's assembly lines would be closed, but no jobs were lost after some 400 affected workers were moved other production lines to 'maximise efficiency'. It has yet to rule out closing its Sunderland factory - Britain's biggest car plant producing 280k passenger cars per year - as part of its restructure Ivan Espinosa took over as CEO on 1 April. A mechanical engineer who has been with Nissan since 2003 in a variety of strategy and planning jobs, he now has the monumental task of bringing the car maker back from the brink. In the company statement delivered on Thursday, he said: 'We are taking the prudent step to revise our full-year outlook, reflecting a thorough review of our performance and the carrying value of production assets. 'We now anticipate a significant net loss for the year, due primarily to a major asset impairment and restructuring costs as we continue to stabilise the company. 'Despite these challenges, we have significant financial resources, a strong product pipeline and the determination to turnaround Nissan in the coming period.' Ivan Espinosa took over as CEO on 1 April The Japanese car company estimates to end the fiscal year with almost ¥1.50trillion (£7.9billion) in its coffers. This is down on the near-¥1.55tn (£8.2billion) it had at the end of 2023-24. The firm added that it expects to end the year with ¥1.9tn (£10billion) of debt. Nissan and Honda ended merger talks to forge a £45billion car company in February. The deal broke apart due to Honda's proposal to make Nissan a subsidiary, sources have said. Nissan said it now expects full year operating profit of ¥85billion (£448millio), around 30 per cent lower than it previously forecast. The automaker, which said it will forego a dividend for the full year, will report its earnings on 13 May.
Scottish Sun
23-04-2025
- Automotive
- Scottish Sun
Iconic car brand's boss sparks fears over future of huge UK factory as he slams huge ‘costs of everything'
It comes after the car giant faced slumping sales and fears surrounding its future in the UK HIT THE BRAKES Iconic car brand's boss sparks fears over future of huge UK factory as he slams huge 'costs of everything' Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) A TOP boss of an iconic car brand has slammed Britain as "not a competitive place" to build motors. Alan Johnson blasted soaring costs and highlighted that his firm's Sunderland plant forks out more for electricity than any of their other ones. 7 A top boss has slammed Britain as 'not a competitive place' to build motors Credit: Supplied 7 The Sunderland plant faces high electricity costs Credit: Getty 7 Soaring prices have led caused the top boss to slam UK car production Credit: Getty The Nissan official told MPs that the car giant's high UK costs trump those in factories as far as India, the Middle East and Africa. Speaking to the Business and Trade Committee, the senior vice president for manufacturing at Nissan warned that the UK car industry was on the back foot. He said: "It is energy costs, it is the cost of everything involved in the cost of labour, training. "It is the supplier base or lack of. All sorts of different issues." The top boss added: "Ultimately, the UK is not a competitive place to be building cars today." It comes after an ex-boss of the iconic car brand said it would be "mad" to close down its huge UK factory. The Sunderland site - one of Britain's biggest car factories - employs around 6,000 workers. But back in February, the plant scrapped a late shift on one of its production lines. Around 400 staff were affected, but no jobs were axed — with workers shifted to other lines in a bid to "maximise efficiency". Nissan's gloomy future The Japanese manufacturer revealed last year it would cut 9,000 jobs globally, after profits plummeted by a whopping £1.59billion in just six months. Despite the grim outlook, Johnson praised moves to boost electric vehicle sales in the UK. He also welcomed Labour's move to ease up on strict Zero Emission Vehicle targets, which carmakers had warned could throttle production. The Nissan boss also reassured MPs that Donald Trump's tariffs only had a "small" impact on the plant. He did however say that the company as a whole had been "impacted significantly" due to The Don's new rules. Exports from the UK to the US now face a 10% tariff, with a hefty special rate of 25% slapped on cars, steel and aluminium. 7 Nissan's Sunderland plant faces higher costs and soaring prices Credit: Reuters 7 The Sunderland plant is one of the UK's biggest car manufacturers Credit: Alamy However, England's North East could avoid the worst consequences of the tariffs. A North East Combined Authority meeting last week heard that just 6 per cent of the region's car exports go to the States. This compares to a third of them going worldwide - meaning the Sunderland plant is "less exposed" than other regions in the UK. It comes after brewing fears over the future of the Sunderland plant after discussions over a merger with Honda collapsed. Plans were in the works for the two car giants to use each other's plants to build vehicles and create manufacturing capabilities that would rival Tesla. 7 It comes after recent fears for the car giant's future in the UK Credit: Getty
