Displaying items by tag: Business

Energy giant Shell has reported its highest-ever quarterly profits (£7.3bn) as oil and gas prices surge around the world. But Shell said pulling out of Russian oil and gas due to Ukraine’s conflict had cost them £3.1bn. BP also reported a sharp rise in profit, and Norway's Equinor, which supplies a quarter of the UK's gas, also posted record earnings this quarter. Oil prices were already rising before the Ukraine war as economies started to recover from the Covid pandemic. The public is now asking what these companies will do with all their extra profits. The Government has so far ruled out a windfall tax.

Joe Biden has declared New Mexico a disaster area. A wildfire has torched 250 square miles (647 square kilometres) over recent weeks. Firefighters slowed the advance of the largest wildfire in the USA as heavy winds relented on 4 May. Biden approved a disaster declaration that brings new financial resources to remote stretches of New Mexico devastated by fire since early April. Representative Teresa Fernandez announced this declaration during a briefing by the Forest Service about containing the sprawling wildfire in high alpine forest and grasslands at the southern tip of the Rocky Mountains. Aeroplanes and helicopters are dropping fire retardant as ground crews clear timber and brush to starve the fire along crucial fronts such as the small New Mexico city of Las Vegas and other villages scattered along the fire’s shifting fronts.

Governing includes difficult choices, confronting seemingly conflicting demands - and making a decision. So, should the government say yes to a new coal mine in Cumbria that will provide a domestic source of coking coal for the steel industry? Currently 40% of our coking coal comes from Russia. Now  the government faces a deadline to decide. The office of the Planning Inspectorate has sent its completed report to Housing, Communities and Levelling Up Secretary Michael Gove with a 7th July deadline for him to issue his decision. If it goes ahead, it would be the first deep coal mine to open in the UK for over 30 years. There are many opponents to Whitehaven and they have previously protested outside the Home Office in London as well as at the site in Whitehaven.

Figures show that very little has changed when it comes to addressing the gender pay gap in Great Britain. Women in the UK were paid just 90p for every £1 earned by a man, according to the latest figures released through the government’s gender pay gap reporting mechanism. Among those high-profile companies reporting particularly large gender gaps was EasyJet. According to data filed by the company’s larger arm, Easyjet Airline Company, women’s median wage stood at just 36p for every £1 that men earned last year. Other companies reporting that median male earnings were at least double that of female employees include HSBC Bank along with several academy trusts. A spokesperson for EasyJet said its ‘gender pay submission does not represent a complete picture because the data in April 2021 included pilots, while the majority of our predominantly female UK cabin crew community remained on furlough’.

Rishi Sunak delivered his mini-Budget against a backdrop of rising fuel, energy and food costs. He cut fuel duty by 5p but resisted calls to scrap April's National Insurance rise of 1.25p in the pound; instead the start threshold will rise from £9,600 to £12,570. He warned the UK's post-pandemic recovery has been blown off course by the war in Ukraine, but he promised an income tax cut in 2024 when the economy would be in better shape. The Office for Budget Responsibility painted a bleak picture of the immediate prospects, saying that living standards are set to take the biggest hit since records began in the 1950s. It said inflation was set to peak at 8.7% at the end of this year and this - combined with rising taxes - will ‘weigh heavily on living standards in the coming twelve months’. The UK's tax burden will be the highest level since the 1940s.

800 P&O ferry staff were sacked over Zoom recently. The Government said it was told the night before but assumed a redundancy consultation was being announced. Three P&O ships were moored at Dover when the company suspended sailings ahead of a ‘major announcement’ but insisted it was ‘not going into liquidation’. Then the staff were sacked without warning, with the aim of replacing them with overseas agency staff from India on as little as £1.80 an hour - well below the UK's minimum wage. Frances O'Grady, head of the TUC, said the move was illegal and ‘one of the most shameful incidents in British industrial relations’. He called for them to have their jobs reinstated. The workers were 'forced to sign gagging orders in return for redundancy pay’.

The department of transport has blocked yachts from leaving Britain over suspected links to oligarchs, and ships linked to Russia have been turned away or redirected when attempting to enter British shores. Grant Shapps told the House of Commons, ‘I can confirm that we are investigating yachts moored in this country we suspect are linked to Russian oligarchs. I have taken steps to ensure that they are unable to depart, and investigations are ongoing. Ten Russian-linked ships have been turned away or redirected on their course. Eight ships or their companies have severed their Russian ties.’ Data from Marine Traffic, a global intelligence group, shows yachts owned by oligarchs are on the move, and sailing out to sea. Anti-corruption activist Bill Browder said, ‘No self-respecting oligarchy exists without a yacht. What we're seeing now is an escape on the high seas.'

On 17 March Interest rates rose again for the third time in four months to counter higher prices and calm the rise in the cost of living. It means interest rates are now at their highest level since March 2020, when the Covid pandemic began. Energy bills and food costs are increasing and there is concern the war in Ukraine will push prices up further. Inflation, the rate at which prices rise, is currently 5.5%, well above the Bank of England's 2% target. The Bank expects inflation to reach 8%, possibly higher, in coming months, and cited rising prices and strong employment as the reasons for the latest rise. About two million households will see an immediate increase of about £26 a month to a typical tracker mortgage, and £16 to a typical standard variable rate mortgage.

Former government energy minister, Lord Barker, has resigned as chairman of EN+, the aluminium giant founded by Russian oligarch Oleg Deripaska. The Conservative peer's resignation came as he faced pressure to cut ties with Russia. Mr Deripaska has close ties to Vladimir Putin and is now sanctioned by the UK. Lord Barker earned £3m in 2020 from EN+. Although he has resigned, he plans to restructure the business to distance the company from Russia. Mr Deripaska is one of the richest associates of Putin having billions from Russia's aluminium industries, and 45% ownership of EN+.

The Government is failing to tackle an alarming growth in fraud nationwide. An updated draft of the Online Safety Bill will address laws covering harmful user-generated posts, adverts, and promotions. Images of celebrities are regularly used to advertise fraudulent scams, and a consultation is being launched over rules for online advertising to end the increase of consumer harm; there could be a new online advertising regulator to block and ban advertisers that repeatedly break the rules. The Government will leave it to Ofcom to decide whether the systems and processes are proportionate. Search engines may have to pay compensation to people duped by scams advertised through their platforms.