Risk Channel delivers the latest, most relevant and useful business intelligence to key decision makers and influencers, each weekday morning.

The Home Office is consulting on proposals that could ban all public sector bodies - including schools, locals councils and the NHS - from making ransomware payments. The proposals, which also include moves to increase the National Crime Agency's awareness of attacks and to make reporting of attacks mandatory, are intended to make public bodies less appealing targets for criminal gangs. Security minister Dan Jarvis said that with "an estimated $1bn (£800.2m) flowing to ransomware criminals globally in 2023, it is vital we act to protect national security." Richard Horne, chief executive of the National Cyber Security Centre, said the moves mark "a vital step in our efforts to protect the UK from the crippling effects of ransomware attacks and the associated economic and societal costs."

 

The Guardian

The Independent

Prime Minister Sir Keir Starmer has unveiled plans for the development of the UK's artificial intelligence industry. A raft of proposals include new AI "growth zones," where the construction of key infrastructure such as data centres will be prioritised, and the development of a new supercomputer to boost the UK's computing power. The government says the technology could increase productivity by 1.5% a year, worth an extra £47bn annually, over a decade. "Britain will be one of the great AI superpowers," Starmer said on Monday at University College London, noting that the country was already the European leader for AI investment. "We're going to make the breakthroughs, we're going to create the wealth, and we're going to make AI work for everyone in our country."

 

BBC News

Reuters

The Federation of Small Businesses (FSB) has urged the UK’s key regulators to help deliver economic growth, saying sector watchdogs must “put their shoulders to the wheel on growth alongside business and industry." In letters to watchdogs including the Financial Conduct Authority, Financial Reporting Council, and Competition and Markets Authority, the FSB says it “wholeheartedly” agrees with the Prime Minister that “regulators have a duty to take a long hard look at current activities in their sphere for their impact on economic growth - to be 'pro-growth' and 'pro-investment' in their partnerships.” Tina McKenzie, policy chair at the FSB, said: "Regulators must grasp this opportunity to propose small business growth measures within their activities and remits. Regulating for growth doesn't always mean deregulation - sometimes it means better protection for small firms as consumers." The FSB's correspondence comes after ministers wrote to a number of watchdogs in December, saying that regulators must support growth.

 

Sky News

The Times

The first follow-on cartel class action trial in the UK has commenced, targeting major shipping companies accused of overcharging British consumers for car deliveries. Launched in 2020, the action involves five leading shipping firms - MOL, K Line, NYK, WWL/EUKOR, and CSAV - following a European Commission ruling in February 2018 that imposed fines exceeding €395m for competition law violations. The claim alleges that over 17m vehicles sold in the UK were impacted by a price-fixing scheme. Belinda Hollway, lead partner at Scott+Scott, said: “This trial marks a very significant milestone in the case and is the culmination of five years of hard work and dedication.” The trial is expected to last nine weeks at the Competition Appeal Tribunal.

 

City AM

Apple is the first tech giant to face a UK class action over claims it has been charging “excessive and unlawful” fees on its App Store. A case launched to the Competition Appeal Tribunal by law firm Hausfeld on behalf of nearly 20m Apple users alleges that the tech firm deliberately shuts out competition by forcing consumers to use its own payment processing system. Hausfeld estimates that 19.6m UK users are eligible for the claim as it seeks total damages of up to £1.5bn. Apple has previously described the lawsuit as “meritless.” The landmark case is expected to have an impact on other class actions, including a £14bn case against Google and £2.2bn case against Meta.

 

City AM

The proposed Employment Rights Bill has been criticised by Rupert Soames, president of the Confederation of British Industry, who warns it may become "an adventure playground for employment rights lawyers." The legislation, set to be implemented next year, aims to abolish anti-strike laws and introduce new employment rights, including the ability for workers to claim unfair dismissal from their first day and a ban on zero-hour contracts. Soames cautioned that the Bill could lead to job losses and increased unemployment, saying: "Not only will they not employ, I think they will let people go." The government's impact assessment estimates the Bill could cost businesses up to £5bn annually, raising concerns about its potential negative effects on growth and employment.

 

Daily Mail

The Competition and Markets Authority (CMA) has extended its investigation into potential breaches of competition law by seven major housebuilders, including Barratt Redrow, Bellway, The Berkeley Group, Bloor Homes Limited, Persimmon, Taylor Wimpey, and Vistry. Initially launched in February 2023, the probe followed evidence suggesting these firms may have been sharing commercially sensitive information. Originally set to conclude in December, the investigation will now run until May 2025 to allow for additional evidence gathering, analysis, and review. The CMA said that it has not yet determined whether sufficient evidence exists to issue formal objections against any of the parties involved.

 

Construction Enquirer

Construction News

Inside Housing

Commerzbank's supervisory board chairman Jens Weidmann has expressed scepticism about the potential for an amicable merger with UniCredit, saying: "It's like any relationship: if the start is unsuccessful, it will be difficult." Having recently snapped up a sizeable stake in Commerzbank, UniCredit now holds approximately 28% of its shares. Weidmann noted that maintaining two independent banks, Deutsche Bank and Commerzbank, is crucial for Germany's financial landscape, and warned that a loss of independence could diminish Commerzbank's presence in Germany and affect Frankfurt's status as a financial hub.

 

Daily Mail

Wayfair, the online furniture retailer, has announced the layoff of 730 employees as it exits the German market to concentrate on its core businesses. The company is facing challenges due to slower traffic and a decline in demand from cost-conscious consumers. Following the restructuring, Wayfair anticipates incurring charges between $102m and $111m, which will cover employee-related costs and non-cash charges associated with facility closures. These charges are expected to be recorded in the fourth quarter of 2024 and the first quarter of 2025. As of December 31, 2023, Wayfair employed approximately 14,400 individuals globally. Analysts have raised concerns about potential challenges from the implementation of President-elect Donald Trump's import tariffs, given Wayfair's significant exposure to imports.

 

Reuters

Dulux paint maker AkzoNobel is to lay off up to 211 staff in France, or about 16% of the local workforce, under a reorganisation plan. The Dutch paint and coatings maker, which currently employs 1,300 people in France, said the reorganisation would start from May 2025 and last until the end of 2026. The plan also includes the creation of 29 new roles in France, the company said. AkzoNobel has previously announced plant closures in Ireland, the Netherlands and Zambia, and also plans to shed about 2,000 jobs globally by the end of 2025.

 

Reuters

Sir Jim Ratcliffe has issued a stark warning that Britain’s chemicals industry faces "extinction" as high energy costs and carbon taxes force closures. Ineos’ synthetic ethanol plant in Grangemouth, Scotland, shut down this month, ending over 40 years of production. The closure results in the loss of 80 jobs directly and affects over 500 roles indirectly, leaving the UK entirely reliant on imports for synthetic ethanol. The shutdown precedes the scheduled closure of Scotland’s last oil refinery at Grangemouth, a joint venture between Ineos and PetroChina, which will transition into a fuel-import terminal in spring. This change will result in a further 400 job losses. Industry-wide, chemical production in Britain has plummeted 40% since 2021. The Chemical Industries Association has described the situation as a “collapse,” citing uncompetitive policies and falling global demand as key factors exacerbating the crisis.

 

The Times

The International Monetary Fund (IMF) expects to see steady global growth and continuing disinflation in 2025, according to its latest World Economic Outlook. IMF managing director Kristalina Georgieva suggested that governments need to cut fiscal spending and adopt reforms to boost growth. She said: “Countries cannot borrow their way out. They can only grow out of this problem.” In October, the IMF raised its 2024 economic growth forecasts for the US, Brazil and Britain but cut them for China, Japan and the euro zone. It also left its forecast for 2024 global growth unchanged at the 3.2% projected in July. The IMF also lowered its global forecast for 3.2% growth in 2025 and warned that global medium-term growth would slip to 3.1% in five years.

 

Reuters

Laura Barlow, Barclays' group head of sustainability, has retired to pursue other opportunities while remaining a senior advisor. Daniel Hanna, previously head of sustainable finance, has taken on an expanded role overseeing sustainable and transition finance. Barlow's leadership was pivotal in aligning Barclays with global climate goals, including a pledge to facilitate $1trn of sustainable finance by 2030. Despite these efforts, Barclays remains one of the top financiers of the fossil fuel industry, which has drawn criticism from climate campaigners and some US politicians. The change at Barclays follows the recent departure of HSBC's sustainability chief amid growing scrutiny of banks' climate commitments.

 

Reuters

A Conference Board poll suggests that global executives are prioritising supply chain resilience amid trade war fears, with 85% planning significant changes, including supplier localisation, to enhance performance.

 

Financial Times

British Steel was forced to close one of its two blast furnaces at Scunthorpe last year after using the wrong kind of coal, the FT reports.

 

Financial Times

Tulip Siddiq, the anti-corruption minister, is embroiled in a second investigation by Bangladesh's Anti-Corruption Commission (ACC) regarding alleged land procurement for her family. The ACC claims Siddiq "reportedly used her influence and special powers" to secure land allocations. She denies all allegations, asserting that no evidence has been presented against her. Amidst growing pressure, the UK Anti-Corruption Coalition has urged Siddiq to relinquish her responsibilities related to economic crime, citing a "serious conflict of interests."

 

The Times