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Serbian workers have reported inhuman treatment and hazardous working conditions at local suppliers with ties to German automakers including Mercedes, Audi, Volkswagen and BMW. Media reports and trade unions have uncovered violations of human rights and labour laws, with Chinese company Linglong and the German supplier Leoni among those said to be "exploiting" their workforces in the southeast European country. The German Supply Chain Act, which came into force last year, holds companies responsible for ensuring compliance with human rights and environmental standards throughout their entire supply chains, including the right to workplace health and safety, fair wages, and the right to form unions. But some say the problem with the legislation is that workers often do not know about it or even that their company is part of a supply chain to Germany.

 

Deutsche Welle (EN)

The Financial Conduct Authority (FCA) has softened its ‘name and shame’ plans after a backlash from the City. The financial regulator said it will set out plans for “further engagement” after its initial proposals triggered “significant concerns.” Under new proposals, companies will be given a ten-day notice period that they are facing investigation, rather than the one day previously proposed. They will also be given an extra 48 hours’ notice should the FCA decide to announce an investigation. The FCA also said that should its plans come into effect, they would only lead to public announcements “in a very small number of cases.” Therese Chambers, the FCA’s joint executive director of enforcement and market oversight, said: “We have heard the strength of feedback to our original proposals, and we are making changes as a result.” UK Finance chief executive David Postings said he welcomed the new proposals after “constructive engagement” with the FCA, noting that the City watchdog has “made a number of significant changes, including the increased notice period and the more rigorous approach to assessing the potential impact of an announcement within their public interest test.”

 

Financial Times

The Times

The Daily Telegraph

Social media companies face punishment if they fail to take significant extra steps to prevent children from pretending to be adults online. The threat comes after analysis by media regulator Ofcom found that 22% of those aged between 8 and 17 lie that they are 18 or over on social media apps. With the Online Safety Act (OSA) requiring platforms to improve age verification, a responsibility that will come into force in 2025, Ofcom said its "alarming" findings show that tech firms have a way to go to meet that new legal standard. The watchdog added that firms would face enforcement action if they failed to do so. Ian Macrae, director of market intelligence at Ofcom, said 2025 is set to deliver a "real step change in online safety." He added that Ofcom would "take action" if firms do not comply with the OSA, noting that the legislation allowed for companies to be fined 10% of their global revenue.

 

BBC News

Monzo has been accused of breaching four retail banking rules. The Competition and Markets Authority claims that the digital-only lender published misleading surveys about service quality; failed to disclose the maximum monthly charges for current accounts; did not provide the representative rate for loans on its business banking site; and neglected to inform the regulator of these breaches within the required 14-day period.

 

The Times

German regulator BaFin has reportedly withdrawn its special monitor from Deutsche Bank. The monitor was initially appointed due to the bank's failure to address deficiencies in its money-laundering controls. BaFin had extended the monitor's mandate in February, threatening fines if improvements were not made by October.

 

Reuters

Government departments have failed to register the use of AI systems since officials said it would become mandatory. Details of just nine algorithmic systems have been submitted to a public register, despite the government announcing in February that the use of the AI register would now be “a requirement for all government departments.” Madeleine Stone, chief advocacy officer at Big Brother Watch, a privacy rights campaign group, said “secretive” use of AI and algorithms puts people’s “data rights at risk.” Imogen Parker, an associate director at the Ada Lovelace Institute, a data and AI research body, said: “Lack of transparency isn’t just keeping the public in the dark, it also means the public sector is flying blind in its adoption of AI.” Peter Kyle, the Secretary of State for Science and Technology, admitted the public sector “hasn’t taken seriously enough the need to be transparent in the way that the government uses algorithms.”

 

The Guardian

Net migration to the UK reached a record high of 906,000 in the year to June 2023, significantly exceeding earlier estimates of 740,000, according to the Office for National Statistics (ONS). The revised figure represents an upward adjustment of 166,000. However, the ONS noted a subsequent decline, with net migration falling to 728,000 by June 2024. Prime minister Sir Keir Starmer seized on the figures - which cover a period before Labour took office - to accuse the Conservatives of “running an open borders experiment.” Meanwhile, business leaders have responded angrily to Starmer's proposal to limit the hiring of foreign workers, arguing that immigration is essential to fill job vacancies. Starmer said companies have had an "overreliance on the easy answer of recruiting from abroad" but the prime minister's commitment to reducing net migration has raised concerns among businesses already facing increased hiring costs. Jane Gratton, deputy director of public policy at the British Chambers of Commerce, noted that "three-quarters of firms say they can't find staff they need." She emphasised the need for a more efficient skills system and said that "access to global talent is often the only option" when local recruitment fails. The government is expected to implement a mixed approach, requiring companies to train British people if they are employing foreign workers while also cracking down on abuses of the visa system.

 

BBC News

Daily Mail

The Daily Telegraph

The Guardian

The i

Russia's economy is struggling to find workers as the country's defence sector poaches staff, Reuters reports. Heavy recruitment by the armed forces and defence industries has taken workers away from civilian businesses, as has emigration. Data from the Rosstat statistics service this week showed unemployment at a record low of 2.3%. "The 'personnel famine' has turned into a universal phenomenon, capturing practically all parts of the economic system," Rostislav Kapelyushnikov, deputy director of the labour research centre at Moscow's Higher School of Economics (HSE), wrote in a report.

 

Reuters

US president-elect Donald Trump’s plan to impose new tariffs on goods entering the US risks higher prices for shoppers, Ikea has said. Ingka Group, the main Ikea retailer that runs 90% of the group’s stores, said the new trade tariffs would make selling furniture and homeware at low prices “more difficult.” Ingka Group chief executive Jesper Brodin said the company had “never experienced a period of benefit” when high tariffs had been imposed, telling CNN “In general, we don’t believe tariffs will support international companies and international trade. At the end of the day, that risks ending up on the bills of customers . . . Tariffs make it more difficult for us to maintain the low prices and be affordable for many people, which in the end is our goal.” He said “We will need to understand and adapt.” Ingka said profits fell to €806m in the year to September, compared to €1.5bn a year earlier.

 

Financial Times

The Daily Telegraph

The Independent

Uber Eats has said it will no longer use freelancers as meal deliverers in the Netherlands. From spring next year, the platform will only work with temporary workers locally. Uber Eats interim director Nick Hilhorst told the Telegraaf: “We have had discussions with the unions and with experts in the field of social security . . . We have negotiated, that is new to us.” The main reason for the switch to temporary workers is the changing laws and regulations, he said. “The court rulings in several cases about hiring freelancers also play a role . . . If you had asked me personally, I would have liked to continue working with self-employed workers. But if the rules change, we at Uber will adapt to that.” The decision does not apply to Uber taxi drivers, Hilhorst added.

 

NL Times

The chief executive of HMRC has attributed a decline in customer service to a surge in queries from pensioners. Facing questions on HMRC's poor call handling times from the Public Accounts Committee, Sir Jim Harra highlighted that there had been a rise in enquiries from taxpayers owing to frozen thresholds as well as state pensioners paying tax for the first time. He added that the increase has placed "upward pressure" on HMRC's services, which have struggled to meet customer service targets. Sir Jim noted: "The state pension has always been a taxable source of income but obviously a combination of the frozen tax allowances and the triple lock mean that more and more state pensioners find that their total income is large enough to be subject to income tax." MPs on the committee also admonished HMRC for automatically hanging up on taxpayers after 70 minutes. Data shows that last year, the the tax office cut off 55,922 taxpayers after leaving them waiting on the phone for more than one hour and 10 minutes. Myrtle Lloyd, director general of customer services at HMRC, said: "The 70-minute limiter is a technological limiter because at very busy times if you've got loads of people waiting in excess of 70 minutes, then it brings the system down."

 

The Daily Telegraph

Highland Council is working to recover over £614,092 in payroll overpayments. A report presented at an audit committee highlighted "late notification" of changes as a key issue. Councillor Jan McEwan said: “At the end of the day . . . it is fraud and it should be recovered.” Concerns have been raised about the collection process, with Councillor Ruraidh Stewart noting that some staff had felt intimidated. Chief Executive Officer for Communities and Place, Allan Gunn, assured that 99.89% of payments are accurate and that the recovery process does not involve intimidation. An additional report is expected in June next year to update on the situation.

 

STV

Data from Panmure Liberum suggests that UK companies are failing to keep up with international peers on sustained growth. The report shows that the US outperforms the UK and EU, with 137 (9.1%) of its stocks growing more than 10% for 10 consecutive years. This compares to just 4% of European and British stocks. Britain’s best performing firm is AIM-listed fintech Alpha Group, which has grown revenue by more than 10% every year for the last nine years. Second place in the UK goes to AJ Bell and JTC, with eight years of consecutive growth. The best American performer, Lululemon, has had 19 years of strong consecutive growth, while Europe’s Fortnox has seen 16 years of growth. The longest recorded streak of 10% revenue growth was Amazon, which managed 24 years before it fell short in 2022.

 

City AM

Typhoo Tea has fallen into administration amid a decline in sales, a spike in losses and an increase in debts. Kroll has been appointed to handle the administration and find a buyer, with vape and battery maker Supreme the front runner. Kroll said Typhoo has been exploring a sale of the business and assets “which is in the process of concluding," adding that the administration process provides the tea company with protection, allowing administrators to finalise a sale and rescue the business. Typhoo's revenues fell from £34m in 2022 to £25m last year, with losses soaring to £38m.

 

BBC News

The Daily Telegraph

Morrisons has announced it will gradually cease deliveries from Ocado's automated warehouse in Erith, London, marking a significant shift in its online grocery strategy. Instead, the supermarket will rely on its own network of shops and a single Ocado warehouse in Dordon in Warwickshire. Despite the change, Morrisons will continue to use Ocado's technology for online orders. The decision has raised concerns among investors, leading to a 2% drop in Ocado's share price. Ocado has faced challenges recently, including a 47.1% decline in shares this year, as customers return to in-person shopping post-pandemic.

 

The Times

City A.M.

Daily Mail

The Daily Telegraph

THG is moving forward with plans to spin off its Ingenuity ecommerce platform, valued at £90m, following investor calls for a restructuring. The company aims to raise approximately £95.4m through a capital raise and has secured a £55m debt facility to support the transaction. THG said the demerger would "simplify THG's business model" and enhance shareholder value.

 

The Times

EasyJet is set to reduce its domestic flight schedule in response to the Government's increase in air passenger duty (APD). The airline anticipates a decline in demand for domestic routes, particularly those connecting London with Scotland and Northern Ireland. Kenton Jarvis, EasyJet's finance chief, said the rise in APD, which will increase the standard rate by £2 to £16 per flight, is "at loggerheads with being pro-growth" and is expected to "dampen demand." Additionally, EasyJet will face a £13m annual impact from the rise in National Insurance contributions for employers.

 

The Daily Telegraph