Business

One of the government’s most loyal ministers has warned that a windfall tax on oil and gas companies will not be “economically cost-free”. The tax was announced by Chancellor Rishi Sunak as part of a £21bn support package aimed at helping people cope with the rising cost of living. But Jacob Rees-Mogg, the minister for

Eight million of the poorest UK households will receive a one off “cost of living payment” of £650 – and there will be an effective windfall tax on the profits of oil and gas companies, the chancellor has announced. Rishi Sunak said the package of support for households is worth over £5bn and will come

Chancellor Rishi Sunak is expected to bow to pressure to impose a windfall tax on energy companies when he sets out the government’s latest plan to tackle the cost of living crisis later. Although not confirmed, Treasury sources have also not denied reports that he will scrap the requirement to repay the £200 discount on

Volkswagen (VW) has reached a £193m settlement with UK drivers involved in a class action lawsuit over the so-called dieselgate scandal in 2015. The German carmaker, which had refused to compensate the owners of diesel models affected in the UK citing EU law, faced claims brought on behalf of 91,000 people by several legal firms.

The sale of Chelsea FC has been given approval by the UK government following the proposed takeover by the Todd Boehly / Clearlake Consortium. In a statement the government said it had “reached a position where we could issue a licence that permits the sale” of the club. “We are satisfied the proceeds of the

The UK’s energy price cap is expected to rise in October to around £2,800, Ofgem’s chief executive says. The cap which applies until 31 September is currently £1,971 a year, which was itself a 54% or £693 rise from the previous cap six months earlier. Ofgem chief executive Jonathan Brearley has told the Business, Energy

British Airways’ (BA) parent company is facing a shareholder pay revolt amid criticism of proposals for an “excessive” hike in executives’ share awards despite racking up enormous losses during the pandemic. Sky News has learnt that International Airlines Group (IAG) is braced for a substantial rebellion at its annual meeting next month after Glass Lewis,

The governor of the Bank of England has hit back at criticism that its decisions have contributed to the highest inflation in 40 years. Andrew Bailey said he “rejected” the argument made by a predecessor, in an interview with Sky News, that the Bank of England and other central banks including the Federal Reserve and

The cost of living crisis is causing “anxiety and uncertainty” for millions – but apps to help “feel a bit more in control” amid soaring prices can save you money, a consumer expert has told Sky News. Inflation reached 9% in April – its highest level in 40 years, further pushing up the cost of

Energy companies have been told by the government that “all options are on the table” if they do not reinvest their bumper profits – amid a growing clamour for a windfall tax. Simon Clarke, chief secretary to the Treasury, acknowledged the “extraordinary pressure on family finances” and said imposing such a levy could not be

Europe’s reliance on Russian oil and gas is funding the rape and murder of Ukrainian children, an MP and member of the country’s delegation to the World Economic Forum in Davos has told Sky News. Ivana Kylmpush-Tsintsadze, an MP and former minister, said Western states and companies need to end “business as usual” with Moscow,

The Royal Agricultural University (RAU) is launching a new scholarship scheme to encourage more British students from ethnic minorities to enter the farming sector. The RAU, one of the leading agricultural institutions in the UK, hopes the two undergraduate scholarships will increase diversity and equality in the industry – which is predominately made up of

A senior figure in Donald Trump’s Cabinet is plotting a £700m deal that would see one of Britain’s biggest digital-only banks being listed on the US stock market. Sky News has learnt that a special purpose acquisition company (SPAC) set up by Wilbur Ross, who was President Trump’s commerce secretary between 2017 and 2021, is

Hundreds of staple grocery items had shot up in price by more than a fifth over the two years prior to the surge in food inflation caused by Russia’s war in Ukraine, according to an investigation. As households get to grips with a growing cost of living crisis, the consumer group Which? said that shoppers

Britons must brace themselves for a “very unpleasant period”, with “considerable” interest rate hikes now needed to prevent a re-run of the 1970s, former Bank of England governor Mervyn King has warned. Lord King launched a coruscating attack on central banks including the Bank of England itself, saying they shared responsibility for the cost of

National Grid has seen its annual pre-tax profits increase by 107% to £3.4bn. The energy network operator attributed much of the rise to its £7.8bn purchase of Western Power Distribution (WPD), which was recently fined £14.9m for failing to help vulnerable customers. National Grid, which delivers electricity to households and businesses, previously said profits in

British consumer confidence has plunged to its lowest level since records began nearly 50 years ago, a survey has suggested, adding to fears that the economy will soon be hit by a slowdown in consumer spending.  Market research firm GfK said its consumer confidence gauge sunk to a score of -40 in May, down from

Royal Mail has said it will need to rise prices and cut costs in the face of soaring inflation. The company warned that it sees “significant headwinds” from rising costs including wages, energy and fuel. Royal Mail revealed that it aimed to make cost savings of £350m over the course of its current financial year

Britain’s biggest dairy producer has admitted the price of milk will continue to increase due to sky high energy costs that have already risen by 200%. Arla Foods’ chief commercial officer Peter Giortz-Carlson told Sky News that input costs, driven higher by the war in Ukraine, will have to be passed on to customers. His

Business Secretary Kwasi Kwarteng has written to the leading petrol retailers “to remind them of their responsibilities” to pass on tax cuts to motorists. The letter, sent to fuel giants on Tuesday, follows claims some retailers hiked profits following the 5p per litre fuel duty cut implemented by Chancellor Rishi Sunak in March to help

Inflation has hit its highest level in 40 years amid the deteriorating cost of living crisis. The rate shot up to 9% last month – its highest level since comparable readings in 1982. Data released by the Office for National Statistics (ONS) showed a broad-based hike in prices for everyday goods and services during April

Real wages have dropped by 1.2% as regular pay growth fails to keep up with soaring inflation, according to the latest official figures. The Office for National Statistics (ONS) reported that the fall in regular pay, which excludes bonus payments, intensified when the effects of inflation were included in the three months to March compared

The £4.25bn takeover of Chelsea Football Club has been thrown into fresh doubt amid a renewed impasse between owner Roman Abramovich and Whitehall over the deal’s terms. Sky News understands that government officials have doubts about whether a special licence needed to approve the sale will be issued before a deadline at the end of

The energy price cap, the mechanism that determines gas and electricity bills for 22 million households, could soon be reviewed every three months under plans announced by the industry regulator. Ofgem revealed that it was putting the idea out to consultation amid criticism that the current twice-yearly adjustment arrangement – in April and October –

Oil giant Saudi Aramco has revealed its profits skyrocketed by more than 80% in the first three months of the year, with prices buoyed by post-pandemic global demand and the Ukraine war. The bumper first-quarter earnings by the state-owned firm, which overtook Apple as the world’s most valuable company last week, showed a record net

Business leaders in the fish and chip industry are calling on the government to offer a “long-term strategy” to their food shortages crisis – or face a third of chippies closing. The National Federation of Fish Friers (NFFF) has warned the four key ingredients that make up a traditional fish and chip meal are deeply

The Premier League is considering a formal ban on debt-fuelled club takeovers as part of a far-reaching  overhaul of its ownership rules. Sky News has learnt that the 20 top-flight clubs are being canvassed by Premier League executives for their views on the merits of a block on so-called leveraged buyouts. The consultation process, which

What is Elon Musk up to? Not for the first time that’s the question on the minds of Twitter executives, global investors and many of his 92 million followers, after the world’s richest man announced, in a tweet, naturally, that his purchase of the social media platform is “temporarily on hold”. The impact was instant,

Billionaire Elon Musk has said his Twitter deal is “temporarily on hold” over the company’s spam and fake user accounts. Mr Musk, who last week secured $7bn from new investors for his $44bn takeover, tweeted: “Twitter deal temporarily on hold pending details supporting calculation that spam/fake accounts do indeed represent less than 5% of users.”

Boris Johnson has ordered ministers to come up with plans to cut more than 90,000 civil service jobs in order to free up billions of pounds for tax cuts. During an away-day with cabinet ministers in Stoke-on-Trent, the prime minister asked them to report back within a month on how they can reduce the size

Be in no doubt, today’s GDP figures are bad news indeed. Bad news as they show the economy is shrinking sooner than expected, down 0.1% in March. But bad news too, in terms of what it heralds for the rest of the year. All the signs and predictions were already that the worst is set

The UK economy contracted by 0.1% in March, as surging inflation took a toll on demand to offset the boost that had been expected from the end of COVID restrictions. The monthly figure compares to no growth in February and 0.7% growth in January, while the quarterly figure (between January and March) showed a growth

Chelsea FC is close to unveiling a £20m-a-year sponsorship deal with a fast-growing cryptocurrency group – despite a temporary ban on the club striking lucrative new partnerships while it operates under government supervision. Sky News can reveal that the Blues have agreed a shirt-sleeve contract with WhaleFin, a digital asset platform owned by Singapore-based Amber