In April, the annual consumer price inflation in the eurozone was recorded at 1.9 percent, the first instance of falling below the ECB’s target since September 2024. This figure also came in lower than the central bank’s anticipated rate of 2.1 percent.

The ECB is set to reveal its latest decision on interest rates on Thursday, with expectations to decrease borrowing costs to 2 percent amid consistent disinflation trends. Policymakers are likely to feel reassured by a slowdown in services inflation, which has hit a three-year low of 3.2 percent, according to preliminary data from Eurostat.

Earlier in April, the ECB had lowered interest rates to 2.25 percent, citing concerns that tariffs imposed by President Trump had negatively impacted the growth outlook for the euro area. These tariff threats pose a risk to inflation across the 20-member bloc, with significant import duties potentially leading to a global shift of cheaper goods into Europe, thereby strengthening the euro against the dollar and reducing the cost of imports.

Christophe Boucher, chief investment officer at ABN AMRO, commented that the ECB is nearing victory in the inflation battle, partly due to the unpredictable nature of Trump’s tariff policies.

“Overall inflationary pressures are diminishing in the eurozone, wages are slowing down significantly, and a resurgence in imported inflation seems unlikely at this time,” he stated. “Even in the most adverse situation, tariffs affecting 50 percent of the imported inflation will be limited, considering the substitution effect and the euro’s appreciation in value, along with Europe’s somewhat insulated economy.”

A key indicator of underlying inflation, known as core prices, also fell short of projections, standing at 2.3 percent in April, down from 2.7 percent in March and below the 2.5 percent that economists had forecast.

Market analysts are indicating a nearly 100 percent likelihood that the ECB will implement a further 25 basis points reduction in interest rates this week, bringing the main deposit rate down to 2 percent. Financial markets anticipate that inflation will remain under 2 percent until 2027.

Analysts from Nomura, a Japanese financial institution, predict that the ECB may need to lower rates to as low as 1.5 percent this year to address the deflationary threats. They mentioned, “We believe that weak inflation, decreased eurozone GDP growth due to US tariffs, and the potential spillover effects in Europe due to tariffs on China, will compel the ECB to continue rate cuts beyond this Thursday.”

When comparing inflation rates, the eurozone’s 1.9 percent stands in stark contrast to the UK’s 3.5 percent and 2.5 percent in the US, where the economy is also facing the potential for renewed inflation driven by tariffs.

The euro dipped by 0.33 percent against the dollar, trading at $1.14, and fell by 0.15 percent against the pound to £0.84. Meanwhile, the Euro Stoxx 600 index, representing equities across the bloc, saw a decline of 0.2 percent in trading on Tuesday morning.

Harrison, a Cambridge University alumnus from the 1990s, emphasizes a profound sense of gratitude to his country, which he seeks to honor by developing his successful pharmaceutical venture on home soil, even though none of his products are marketed in the UK.

“The taxpayer funded my education all the way through, including university,” he stated. “So if I’m going to build something, I feel a real responsibility to build it here, despite 100 percent of our revenues being in the US. We’re a British company, employing as many individuals as we can here, and we are committed to paying our taxes in the UK,” said Harrison, who is 51 years old.

This dedication to the UK is reflected in his intention to consider a listing on the London Stock Exchange if the company goes public in the future. Harrison remains optimistic about the UK public markets, even amid a slowdown in new listings and the recent announcement from Wise, a London-based fintech firm, about shifting its primary listing to New York. “If we go public, we will go public here,” he asserted.

Based in Cambridge, Cycle Pharmaceuticals specializes in developing treatments for rare pediatric diseases. The company reported sales of £100 million and a pre-tax profit of £32 million last year, with expectations of a sales increase to £148 million by 2025. Harrison noted, “We’ve just sent our first proper corporation tax cheque to [HM Revenue & Customs], and the interim payment was £4.4 million. This marks the beginning of repaying a personal debt to a country that has invested in me,” he explained. The company employs around 200 individuals, with approximately 75 located in the UK.

Harrison’s journey began when he received his acceptance letter from Cambridge in 1992. With both parents having served in the military—his mother as a wren in the navy and his father ascending to the rank of lieutenant commander—Harrison attended a grammar school near a naval base in Kent.

Demonstrating academic prowess early in life, he sat for his O-level maths examination at just 12 years old and achieved A grades in his A-levels in math, further math, physics, and chemistry.

Harrison was the second in his family to attend university, following his older brother, who now holds a senior position at the Big Four accountancy firm, KPMG.

Achieving a double first in chemistry at Cambridge allowed him to secure a government-funded PhD position, although he left after a year, opting instead to work in the mergers and acquisitions division at Morgan Stanley in London. Subsequently, he was recruited to work for Soros Fund Management, where he quickly rose to a partner role by the age of 26.

“I enjoyed life in private equity because the outcomes were determined by my decisions,” Harrison reflected. “Initially, we relied solely on one source of funding—George Soros—allowing us to explore diverse strategies for profit. This included large leveraged buyouts as well as venture capital, assisting entrepreneurs from the ground up. One noteworthy venture was JetBlue, a budget airline in the US.”

Harrison and Soros connected through their mutual passion for tennis, often playing doubles together over the years. “He is an incredible person,” Harrison remarked. “I’d sometimes find myself at the wrong court, and he would come over to guide me. He was genuinely humble and kind.”

After spending over eight years at Soros Fund Management, Harrison made a pivotal career shift in 2008 when he took the helm at Archimica, an Italian pharmaceutical firm teetering on the brink of bankruptcy. He faced tough decisions to stabilize the company, including initiating layoffs, which led to significant backlash, including threats to executives.

Three years later, he sold Archimica and returned to Cambridge, where he began conceptualizing Cycle Pharmaceuticals. Recognizing a market gap for medications targeting children with rare diseases, he envisioned a company dedicated to providing lifelong treatments alongside holistic support.

“The goal is to assist some of the most vulnerable members of our society—children—born with rare genetic disorders,” he noted.

The first medication developed under his guidance was nitisinone, used in conjunction with a strict diet to treat tyrosinemia type 1, a rare liver disease that can prove fatal without intervention. Cycle Pharmaceuticals has since launched six additional treatments, primarily for conditions like multiple sclerosis, with eight more currently under development. The cost of treatment can be exorbitant, with some patients facing annual medication expenses exceeding $1 million, often covered by their insurance.

This business model, however, faces challenges in the UK, where the market for such specialized medicines is limited—only about 200 individuals in the UK suffer from tyrosinemia type 1—and the NHS is often cautious about high-cost treatments.

“The approach is to maintain low volume and high unit pricing,” Harrison explained. “High unit pricing is essential for funding the comprehensive support services we provide, like dietary consultations, while still achieving profit margins.”

“Developing these treatments is expensive, so successful development must yield substantial financial returns to justify future endeavors. Unfortunately, there are approximately 7,000 rare diseases, and the number continues to rise,” he added.

Cycle Pharmaceuticals expanded in January by acquiring Banner Life Sciences, a U.S.-based company specializing in multiple sclerosis treatments. “It’s refreshing to see a UK company acquiring a U.S. firm instead of the other way around, which has been the trend as Americans buy up UK businesses, particularly in Cambridge, which frustrates me,” Harrison remarked.

Despite conducting all of his business in the U.S., Harrison is unfazed by the prospect of tariffs, particularly with President Trump signaling potential scrutiny towards British pharmaceutical firms. “Operations continue as usual; it’s challenging to anticipate shifts that can occur daily. Our products have diverse supply chains, and we take ownership at various stages, adding to the complexity,” he said.

With strong profit margins, Harrison can afford to provide his medications free of charge to patients in developing countries. This philanthropic commitment is enshrined in Cycle Pharmaceuticals’ articles of association. “The highlight of my week is receiving photos from families in Bangladesh of their child attending school for the first time—a child who likely would have faced death due to liver failure without our intervention,” Harrison shared. “We have 50 children like that, mostly in Pakistan, India, and Bangladesh. This is the driving force behind my work.”

The £520 million deal not only secured the Savoy but also its prestigious sister establishments, including Claridge’s, the Connaught, and the Berkeley, along with the historic Lygon Arms in the Cotswolds. This purchase heralded the beginning of over 25 years of aggressive expansion in the UK, leading to a diverse portfolio that spans vacation resorts and data centers.

In slightly more than two decades, Blackstone has transitioned from a newcomer to one of the UK’s leading foreign investors, channeling more than $100 billion into local ventures, generating employment for approximately 50,000 individuals. The UK is now identified as Blackstone’s second-largest investment arena globally.

Since its acquisition of the Savoy, Blackstone has grown exponentially from an entity worth $400 million to a powerhouse with a market capitalization of $170 billion, capitalizing on the surge in alternative investments.

The firm now oversees more than $1.17 trillion in assets, a remarkable rise from just $8.4 billion in 1998. Its operations are spread across various sectors, including private equity, real estate, hedge funds, and credit, while managing almost 250 companies that employ around 700,000 individuals and lending to an additional 4,900 companies. Blackstone’s UK office also serves as its European headquarters, staffed by 650 employees.

As part of its 25th anniversary celebrations, key figures from the corporate and political landscape gathered at Spencer House in St James’s on Tuesday evening, commemorating the opening of Blackstone’s first London office in 2000.

Jon Gray, who now serves as Blackstone’s president and COO, was involved in the Savoy acquisition back in 1998. Reflecting on his early days, he stated, “I was a kid who hadn’t spent time in Europe, other than my honeymoon to Italy, and I found myself in the midst of this public takeover.”

“It was exhilarating. I learned a great deal and fell in love with London and the UK. My fondness for this place has only deepened since then,” he added.

Lionel Assant, head of European private equity and global co-chief investment officer, was among the initial dealmakers hired for the London operation. After leaving Goldman Sachs in 2003, he faced a skeptical response from his father regarding his career move.

“I had to clarify it a few times, and he asked, ‘Why would you leave Goldman? You were on track to become a partner there’,” Assant recalled.

When Blackstone began its London operations, the team consisted of only about 40 individuals, predominantly focused on private equity.

Assant described the early challenges, noting, “We lacked a debt capital markets team or a general counsel for our deals. Basically, there were only three of us doing everything. We would pack our bags and take the Eurostar or the first British Airways flight to cities like Madrid or Frankfurt, trying to convince management teams that we were the right partner for them.”

Blackstone’s initial ventures in the UK included the £120 million acquisition of Cineworld in 2004, which was publicly listed on the London Stock Exchange three years later with a valuation of £240 million. They also acquired United Biscuits, the manufacturer of McVitie’s and Hula Hoops, in 2006.

Following the Cineworld acquisition, Blackstone also purchased Merlin, the operator of the London Dungeon. Stephen Schwarzman, the co-founder and CEO of Blackstone, once regarded this deal as a small investment and needed some convincing before proceeding.

Despite a value of just £85 million at the time, Schwarzman later acknowledged, “We almost didn’t do it because of the size. Eventually, I relented and said, ‘If that makes you happy, go ahead and buy it.'” Under Varney’s leadership, Blackstone transformed Merlin into the world’s second-largest theme park operator before taking it public in 2013 and later reacquiring it in 2019.

Blackstone has found success within the leisure sector, with Bourne Leisure, parent company to Butlin’s, becoming a priority for Baratta, who spearheaded the firm’s European expansion from London in 2001.

Baratta relentlessly pursued the acquisition of Bourne Leisure, which was founded in 1964 from a single caravan park, but initial attempts to persuade the founding families failed.

Ultimately, during the Covid-19 pandemic, the families reached out to Blackstone to initiate discussions about a deal. Recognizing that the leisure sector would rebound, Blackstone acquired the company while ensuring the founding families retained a minority stake.

Assant outlined, “We secured valuable assets at the ideal moment, especially since the business owned its entire freehold. We increased capital investment threefold, and our expectations proved correct: once the economy reopened, demand surged across leisure, travel, and events.”

“You don’t just stumble upon opportunities. You carefully identify themes and sectors before building relationships. It’s been a journey of strategic commitment, and we wouldn’t have had this opportunity without our long-term engagement with the asset,” he concluded.

In recent years, Blackstone has pursued ambitious property transactions throughout the UK and Europe, expanding its interests in affordable homes, rental properties, and logistics warehouses. Currently, the firm is planning a £10 billion data center project in Northumberland and has established a housing business owning 22,000 properties since 2017.

Initially guided by Kenneth Caplan, the co-chief investment officer, Blackstone made a definitive move into real estate with the £1.1 billion acquisition of the Broadgate office complex in Liverpool Street in 2009, a deal Gray now regards as one of Blackstone’s finest UK investments.

Reflecting on the changing landscape, he noted, “At the time, sentiment around financial services in London was very negative.”

James Seppala, who currently leads Blackstone’s real estate investments in Europe, remarked on the firm’s evolution: “Blackstone was recognized as a private equity firm then, but nowhere near as prominent in real estate within Europe. The team size has significantly grown from about 30 people to around 120 today.”

As the anniversary unfolds, Gray emphasized that it serves as a reminder to celebrate what has been achieved while also highlighting Blackstone’s ongoing commitment to future growth.

A: In previous discussions, I’ve addressed the implications of AI in hiring and the unease surrounding job reductions. The effects on management and office work are only beginning to surface.

Effective managers promote the use of technology to boost productivity, yet it is crucial to establish boundaries. I refer to this concept as “freedom within a framework.” Without a unified policy on AI usage at work, you risk encountering issues related to security and privacy.

Initially, it’s essential to reinforce that no confidential information should be entered into a public AI tool unless there’s clarity on data usage. Everyone must be aware that any data provided to publicly available generative AI tools may be stored and potentially accessed to assist others in the future—possibly even your competitors.

Some AI tools provide “enterprise options” or allow users to disable data retention, making them a safer choice for handling sensitive data. Nevertheless, caution is needed regarding information sharing, particularly in regulated sectors. Regular training on best practices is vital.

Establish Priorities and Enhance Skills

When addressing artificial intelligence, it’s important to acknowledge that numerous use cases exist. To impose some structure, begin by clarifying where AI tools are best utilized—such as summarizing meetings, crafting presentations, or preliminary project research. Engage your executive team in agreeing on these priorities and ensure that all employees receive training on best practices within these contexts.

Exercise Discernment

While a tool like ChatGPT can indeed be valuable for testing ideas and assumptions, it’s important to remember that we hire managers and leaders primarily for their judgment. I expect them to gather information, evaluate it critically, and apply their insights.

A Final Consideration

AI’s influence on office-based roles may be significant, and there’s a legitimate concern that many entry-level jobs could be automated away. As with any transformation initiative, involving everyone is crucial.

To engage younger staff and new graduates, consider forming a small AI innovation taskforce focused on identifying new applications for AI. This team should have backing from an executive sponsor and actively inquire within the organization about the value AI provides and its current usage. They should document successful examples and share them across the organization.

Ultimately, like any tool, AI requires human guidance to function effectively.

Ann Francke is the Chief Executive Officer of the Chartered Management Institute.

This cutting-edge site spans 94,000 square feet, marking the revival of M777 howitzer production in the UK. Weighing 4.2 tonnes, these artillery pieces are capable of firing 155mm shells over a distance of 25 kilometers and are utilized by forces from the US, Canada, Australia, and India.

Originally designed with logistics in mind, this facility is being repurposed to support the manufacture and distribution of advanced weaponry, with some units destined for Ukraine.

The government has invested £25 million into this initiative, creating approximately 200 jobs, boosting employment opportunities in the supply chain. Defence Secretary John Healey attended the launch and emphasized the factory’s role in enhancing the UK’s military readiness.

Healey remarked, “The narrative for this region has shifted from industrial decline to a resurgence, signifying a ‘defence dividend’ for job creation.”

The launch of the facility coincides with the UK’s push towards increased military preparedness, as outlined in the recent defence strategic review. The ongoing conflicts in Ukraine and the Middle East have underscored the need for heightened security measures. NATO Secretary-General Mark Rutte recently warned of potential threats from Russia within the next five years.

BAE Systems’ new facility is still under construction, with only a portion equipped for howitzer production. The remainder of the site is being developed, with plans for completion by the year’s end.

The decision to establish the facility followed a hiatus in domestic howitzer production due to dwindling orders nearly a decade prior. With the escalation of the Ukraine conflict, demand for artillery surged, prompting BAE to scout for suitable sites across the UK. The rich combination of local universities, research institutions, and manufacturing heritage ultimately drew BAE to Sheffield, as explained by John Borton, managing director of BAE Systems Weapons Systems UK.

Sheffield boasts a robust network of manufacturers, with over 60 partners supporting the new gun assembly process. Noteworthy among these is Sheffield Forgemasters, which received government funding to ensure its continued production of high-quality steel for defense applications.

The Hyde Group in Manchester, a family-run enterprise specializing in precision parts and testing equipment, also plays a critical role in the supply chain. Matthew Smallman, joint managing director of Hyde, underscored the importance of large firms like BAE partnering with smaller businesses, which constitute a significant part of the manufacturing ecosystem.

Despite the overall optimism regarding growth in the UK defense sector, not all local residents are supportive of the new manufacturing initiative. Some suppliers cited concerns about protests targeting defense contractors, particularly those linked to high-profile military projects.

Amid public debate, young workers at BAE expressed enthusiasm for careers in defense. Many feel that their work could contribute positively to national security. Jodie Crane, an undergraduate participating in a year-long placement at BAE, shared her newfound understanding of the industry’s significance.

Oliver Coppard, the Labour mayor for South Yorkshire, praised BAE’s presence, which he believes strengthens the city’s reputation in advanced manufacturing, honed over decades.

While the increased defense budget announced last week marks progress, critics point out that military spending remains below NATO’s target, highlighting ongoing challenges. Additionally, the future of some UK defense initiatives could be uncertain due to potential shifts in US policy concerning international military agreements.

Nevertheless, the atmosphere at the Sheffield facility’s opening was filled with optimism. BAE representatives indicated that the site could expand to manufacture various types of weapons, and the government’s funding plans include support for six new munitions factories across the UK, signifying a trend towards localized defense production.

As John Healey remarked, “Recent conflicts have reiterated the crucial link between robust armed forces and the industrial capacity that supports them. Our commitment to defense investment not only aims to bolster military strength but also to revitalize our industrial base.”

Concerns about the London stock exchange’s viability are intensifying, especially following Wise’s announcement last week regarding its relocation of primary listing from London to New York, which represents just one of several companies to make a similar transition.

To enhance London’s appeal as a financial hub, the FCA has relaxed its listing directives.

Nikhil Rathi, FCA’s CEO, informed the Commons Treasury Committee, stating, “The listing regulations have not been highlighted as an issue by our discussions.”

Rathi attributed the challenges facing the UK exchange to various factors, including pension funds’ investment strategies in UK shares, the UK corporate governance stance on executive compensation, recent fluctuations in the pound, taxation policies, and the expansive size of the US market.

At midday, the FTSE 100 index rose by 39.53 points, or 0.45%, reaching 8,871.53, buoyed by encouraging remarks from US Commerce Secretary Howard Lutnick about the positive progress of the ongoing US-China trade discussions in London.

Additionally, the FTSE 250 index witnessed an increase of 154 points, or 0.72%, to reach 21,439.16.

In currency news, the pound experienced a decline of 0.39% against the dollar, trading at $1.35, as market participants anticipated further reduction in interest rates from the Bank of England. Recent Office for National Statistics (ONS) data indicated a sharp slowdown in wage growth and an uptick in unemployment, which reached its highest levels in nearly four years during the January to March period.

Should the FTSE 100 maintain its current position at the day’s end, it will surpass March’s closing figure of 8,871.31.

In other news, beverage conglomerate Diageo is contemplating liquidating its stake in the Royal Challengers Bengaluru (RCB) cricket team for an estimated $2 billion.

Reports suggest that Diageo is weighing the options for a full or partial sale of its investment in RCB, which recently secured its first Indian Premier League (IPL) championship victory, according to Bloomberg.

RCB, previously known as Royal Challengers Bangalore, is owned by the Bangalore-headquartered United Spirits, where Diageo holds a controlling interest of 55.9%.

Diageo initially entered United Spirits in 2012 following Vijay Mallya’s relinquishment of control due to his financial struggles with Kingfisher Airlines.

This sale consideration arises concurrently with calls from India’s health ministry advocating for an IPL ban on alcohol and tobacco marketing.

Meanwhile, the FCA has revised minimum disclosure standards for private companies wishing to trade shares on emerging mini stock exchange venues.

New FCA regulations specify that these platforms will be dubbed Pisces, which stands for Private Intermittent Securities and Capital Exchange Systems.

Officials from the FCA anticipate the launch of one or two Pisces exchanges within a few months, with trading expected to commence by year-end. The London Stock Exchange is among those planning to offer a Pisces platform, alongside several firms expressing interest.

Under the finalized rules, private companies trading shares on these platforms will no longer be required to furnish forward-looking financial disclosures.

In commitment to job creation, Rolls-Royce has pledged to oversee the establishment of thousands of new jobs after securing government approval to construct three small nuclear reactors aimed at supplying energy to three million homes (Robert Lea reporting).

Rolls-Royce SMR, a subsidiary, has harnessed technology derived from decades-long experience supporting the Royal Navy’s nuclear submarine fleet. The UK government has allocated £2.5 billion for the small modular reactor (SMR) initiative over the forthcoming four years,

Rolls-Royce’s CEO, Tufan Erginbilgic, framed this collaboration as a validation of the company’s exceptional nuclear capabilities.

The company’s shares surged to a record high this morning, climbing 2%, or 19p, to reach 907p. Rolls-Royce’s shares have appreciated by 54% this year, driven by reforms under Erginbilgic’s leadership and increased defense expenditure.

Bellway’s affirmation of a thriving spring sales season has mitigated sector concerns, according to property correspondent Tom Howard.

“Panic had begun to surface regarding the market’s strength during April and May due to the upheaval caused by Donald Trump’s trade dispute, which affected financial markets and consumer confidence,” he noted.

“Those concerns intensified recently when MJ Gleeson indicated it had to offer more incentives to sell homes while lamenting rising construction costs and stagnant prices.”

Bellway’s positive outlook led to a share price jump of 120p, or 4.5%, reaching £27.94 this morning.

Larger competitors also reported gains, with Vistry ascending 29p, or 4.9%, to 627p, and Persimmon increasing by 49.5p, or 3.8%, to £13.52.

Marks & Spencer has resumed taking online orders nearly two months post a significant cyberattack.

The retailer announced that “a range of our leading fashion products will be available for delivery across England, Scotland, and Wales,” with Northern Ireland scheduled to see delivery options return soon.

“In the following days, we will add more fashion, home, and beauty items, and plans are underway to restore click-and-collect, next-day, nominated-day delivery, and international orders.”

Despite ongoing recovery efforts, the fallout from the cyberattack is substantial, with M&S estimating a £300 million hit to annual operating profits. The company acknowledged that online sales have been “seriously affected and are still on the path to recovery.”

Meanwhile, housebuilders emerged as the top gainers in the FTSE 100 after Bellway revised upward its target for new home constructions this year.

Marks & Spencer benefitted from news of its website’s revival, after its shutdown following a cyber-attack six weeks prior.

WPP remains under pressure, registering the largest declines after announcing CEO Mark Read’s departure yesterday.

The FTSE 100 commenced trading 0.4% up, or 34 points, reaching 8,865.35, as the second day of trade talks between the US and China unfolds in London amidst signs of a potential thaw in relations.

Commerce Secretary Howard Lutnick described the discussions as “fruitful.”

The pound dipped against the dollar, now at $1.3477, amid indications of a cooling labor market and a strengthening US currency, which rebounded after its decline on Monday. Gold prices saw a slight uptick, reaching $3,327.47 per ounce.

With payrolls declining, unemployment rates rising, and wage growth faltering, the latest labor market data reinforces beliefs that the Bank of England may cut interest rates more aggressively than currently anticipated, potentially reaching 3.5% by next year, according to Ruth Gregory of Capital Economics.

“Feedback from our vacancy survey indicates hesitation among companies concerning new hiring or filling positions left by departing workers,” noted Liz McKeown from the ONS.

“Six months post the launch of Get Britain Working, we are observing positive trends with economic activity hitting record levels, alongside a rise of 500,000 people in employment since our administration began, and real wage growth exceeding that witnessed in the decade after 2010,” stated Alison McGovern, employment minister.

Data released by the tax authority alongside the ONS labor market summary portrayed a rapid erosion of payroll employment, the quickest since the early pandemic days in May, with over 109,000 positions lost in that month—the steepest one-month drop since May 2020. On an annual basis, payrolls have seen a reduction of 274,000.

The diminishing payroll figures follow the increased national insurance contributions that took effect in early April, amounting to £25 billion.

Private sector surveys had previously indicated that businesses are cutting back on personnel and hiring due to the tax increase.

Bellway has reported stable performance throughout the spring selling season, highlighting heightened customer confidence and rising reservation rates.

Reflecting on the improved trading conditions, Bellway elevated its full-year output forecast to between 8,600 and 8,700 homes, up from 8,500.

Additionally, FirstGroup—the transport company—has returned to profit.

The firm disclosed pre-tax earnings of £169.6 million for the fiscal year up to March 29, rebounding from a loss of £24.4 million the prior year. Revenue during this time increased to £5.06 billion, compared to £4.71 billion in the preceding year.

Rolls-Royce has been appointed as the preferred partner by Great British Energy for the development of the nation’s inaugural small modular nuclear reactors.

The initiative is projected to support approximately 3,000 jobs at peak construction, providing energy to about three million homes.

Recent data reveals a slowdown in wage growth in the UK for the three months ending in April, alongside an increase in unemployment to levels not seen since the conclusion of pandemic lockdowns in 2021.

Average wage increases, excluding bonuses, stood at 5.2% for the period, decreasing from 5.5% in the previous month, according to the Office for National Statistics. Expectations had projected a moderation to 5.3%.

The unemployment rate rose to 4.6%, compared to 4.5%, marking the highest joblessness rate since July 2021.

Bank of England Governor Andrew Bailey indicated to MPs last week that further reductions in wage growth would be essential before the central bank considers additional interest rate cuts.

Credit Suisse has initiated legal action against the Japanese technology investment firm Softbank, seeking compensation for losses associated with Greensill’s finance company, which collapsed in 2021 amid a financial and lobbying scandal.

The fall of Greensill Capital has led to numerous lawsuits and investigations. Its failure prompted Credit Suisse to close $10 billion worth of funds related to the firm, which also contributed to a state-backed bailout of the Swiss bank by UBS Group in 2023.

This intricate civil case where Lex Greensill is testifying involves funds that Greensill had lent to Katerra, a construction company backed by Softbank.

Credit Suisse alleges that Greensill, at Softbank’s request, relinquished rights to Katerra’s debts in exchange for equity, consequently putting Credit Suisse at a financial disadvantage. This arrangement occurred in 2020, prior to Greensill’s downfall in 2021. UBS is pursuing the recovery of funds for former clients of Credit Suisse.

During his first public court statement since the collapse of his company, the 48-year-old Greensill described the restructuring of the relationship with Katerra as “painful,” indicating it aimed to allow Softbank to structure the deal in a way that would not be reflected on the profit and loss statement.

Softbank contends that the lawsuit is baseless and represents an effort by Credit Suisse to redirect the responsibility for losses caused by their own mismanagement and risk-taking.

Greensill Capital’s downfall occurred after insurers withdrew their coverage. Although positioned in the supply chain finance sector, the company solicited investments for what were supposed to be low-risk, short-term loans. However, many of these loans turned out to be high-risk, long-term commitments, with billions still owed.

During David Cameron’s administration, Greensill received office space in Downing Street, and the business benefited from government pandemic financing schemes. Recent reports indicated that the Insolvency Service plans to seek Lex Greensill’s disqualification from managing UK businesses, a claim he rejects as he fights against the government’s efforts to bar him from corporate governance.

While serving as a witness in a two-day testimony within a month-long trial in London, Greensill mentioned that senior executives at Softbank “felt threatened” by his connections with Masayoshi Son, the founder of the investment firm, which had invested heavily in Greensill Capital.

Greensill noted he frequently traveled to Tokyo—”often weekly”—for personal mentoring sessions with Son, whom he referred to as “Son-san”.

Recently, allegations surfaced that Greensill had expressed that his company had been severely mistreated by Softbank. Rajeev Misra, formerly leading a Softbank fund, characterized Greensill as “slippery and prone to lying” in correspondence revealed during the proceedings.

In addition, Lex Greensill is pursuing legal action against the government over its management of the inquiries into his conduct, while Greensill’s UK administrators are litigating against him and other executives for purported breaches of fiduciary duty.

The trial is ongoing.

A. Let’s address the straightforward aspect first. You cannot reclaim any VAT unless you are a VAT-registered business buying the vehicle specifically for business purposes.

The VAT rules for second-hand vehicles are influenced by the VAT status of previous owners. VAT-registered purchasers can reclaim VAT but must add VAT to the sale price when they sell the vehicle. Once the vehicle transitions to a non-VAT-registered buyer, the VAT is collected by HMRC, making it impossible for any future buyers to reclaim it.

Consider Alice and Bob, who each purchase new Tourneos for their respective businesses. Both pay VAT at the point of sale, which is forwarded to HMRC by the dealer. Alice operates a fleet and is VAT-registered, enabling her to reclaim the VAT. Consequently, when she sells, she is required to charge an additional 20 percent VAT on the selling price.

Conversely, Bob is a sole trader, not VAT-registered, and thus cannot reclaim VAT. When he sells his vehicle, HMRC has already received their share, so he can market his Tourneo as a “no VAT” sale, allowing him to offer it without the added 20 percent.

This raises the question: will Bob’s Tourneo be less expensive for the next buyer? Not automatically. Alice, with her fleet, likely secured a discounted rate. For instance, if the list price was £36,000 including VAT, Bob paid the full amount alongside £6,000 VAT. Meanwhile, Alice negotiated a £1,000 discount, resulting in a sale price of £35,000. The VAT refund for Alice amounted to £5,833, which meant her actual cost was £29,167.

After three years, both Alice and Bob decide that a depreciation of 50 percent is acceptable. Bob lists his Tourneo for £18,000, with no VAT. Alice sets her price at £14,583 plus 20 percent VAT, totaling £17,500, which is slightly less than Bob’s.

However, Alice, being astute in business, thinks she can get £15,500 plus VAT, totaling £18,600. This price may appear less competitive, leading Chris, a private buyer, to view Bob’s £18,000 vehicle as a better deal.

Yet, another buyer, Dave, who is VAT-registered, can reclaim the VAT on Alice’s Tourneo, which means his net cost will be £15,500, making it a better deal than Bob’s vehicle where he cannot recover any VAT.

Furthermore, complications may arise if Alice and Bob opt for part-exchange with a dealer, who may re-sell the vehicles. Dealers generally apply the VAT second-hand margin scheme, paying VAT only on the profit made on each vehicle, and VAT cannot be reclaimed by any buyer, even those who are VAT-registered.

In summary, it is crucial to compare different options and consider the final price you will end up paying, acknowledging that VAT will not be recoverable. Evaluate factors such as mileage, service history, and the condition of comparable vehicles to secure the best deal. Tim Shallcross, independent expert

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In his latest effort to reform the pension fund sector, King has contacted the chief executives of FTSE 100 companies and significant employers to garner support for an “employer pension pledge.”

King, who serves as a ceremonial leader within the City of London Corporation, is advocating for pension funds to assess the “value for money” of their investments rather than solely focusing on investment costs. This shift could prompt funds to reconsider their reliance on inexpensive index-tracking options, potentially leading to increased investments in infrastructure initiatives and entities on London’s junior market.

This initiative builds on the recent Mansion House Accord, which was endorsed by 17 prominent pension fund providers last month, committing them to invest 10 percent of their assets in private markets by 2030, with half allocated to the UK. King aims to secure sufficient support for his new proposal in advance of the Chancellor’s upcoming speech at the Mansion House, where Rachel Reeves will present her vision for the City.

A representative from the City of London Corporation noted: “The Lord Mayor is actively engaging with major employers to garner their backing for improved retirement outcomes for workers across the UK.”

The backdrop to this call to action includes governmental efforts to reform the pensions sector, highlighted by a bill released last week that lays out various measures designed to encourage increased investment in infrastructure projects.

Concerns have emerged regarding the proposal that would allow sponsors of defined benefit pension schemes—many of which no longer accept new members and are linked to final salaries—to withdraw their surplus funds.

The Pension Security Alliance, a coalition of businesses, advocacy groups, and pension experts, has expressed alarm, citing the government’s own impact assessment which cautions that members may not receive their full pension upon retirement. The group, which includes organizations like the Pension Insurance Corporation and Just Group, remarked on the troubling revelation that civil servants informed ministers that if the plans proceed, certain pension schemes may not fulfill their obligations to provide retirement benefits.

A government spokesperson stated: “There are substantial surpluses currently available in private-sector defined-benefit pension schemes, with three-quarters of these schemes in their most robust funding position in decades. Our proposed changes aim to unlock resources to foster economic growth and remove obstacles to progress, benefiting both workers and businesses through the potential of these assets.”