Tuesday 1 July 2023

FAIRY

BANKS FACE ACTION OVER POOR RATES

FCA TELLS UK LENDERS TO OFFER SAVERS BETTER VALUE

CHRIS DORRELL

THE CITY regulator has ramped up the pressure on the UK’s largest banks, warning that it will take “robust action” against lenders that do not offer savers a fair deal.

Under rules announced yesterday, the Financial Conduct Authority (FCA) said firms will be “required to justify” whether their rates offer fair value by the end of August, or face consequences.

“If we see low savings rates –and those rates continue – we will work with the banks and make our views known,” Sheldon Mills, the FCA’s consumer lead, said. Mills stressed that “all our powers are available” to ensure banks are offering fair value, but ruled out a minimum rate saying the FCA is not a “price regulator”. The watchdog will also re-

view the timing of firms’ savings rates changes each time there is a base rate change.

Banks have come under immense pressure from politicians and regulators for failing to pass on base rate increases to the £1.5trn savings market, particularly in easy access accounts which make up 60 per cent of balances across the nine largest banks.

£Data released by the FCA showed that the nine largest banks have passed through just 28 per cent of base rate increases to easy access savings accounts since the beginning of last year.

These banks are Lloyds, Natwest, HSBC, Santander UK, Barclays, Nationwide, TSB Bank, Virgin

Money and the Co-operative Bank. While the rate of pass through had accelerated from August last year, Mills said “it needs to speed up, and we will use the consumer duty to ensure that”.

Many have suggested that in order to ensure rates are passed through, banks should communicate more proactively with savers to ensure they are getting the best deal.

Around £250bn is held in accounts that do not earn any interest, according to the Bank of England.

Harriett Baldwin MP, chair of the Treasury Committee, said “savings earning little interest can be made to work harder, it will help with the cost of living and help to tackle inflation”.

Eric Leenders, managing director of personal finance at UK Finance, said: “Savings rates have increased recently and there are a lot of good accounts on the market – UK banks have passed through a greater proportion of interest rate rises to savers than in other countries.”

CALLED UP BT picks Allison Kirkby as telecoms giant’s next chief exec

TELECOMS giant BT yesterday announced Allison Kirkby as the firm’s next chief executive.

Kirkby, the former chief exec of Nordic telecoms firm Telia, will take the reins from outgoing boss Philip Jansen in January next year “at the latest”, the firm said. Kirkby, who has been a nonexecutive director at BT since 2019, will become the company’s first female boss in its 170-year history.

having transformed businesses,” Adam Crozier, BT’s chairman, said yesterday.

Kirkby said she felt “incredibly honoured” to have been appointed because it is “such an important company for the UK”.

She said she thinks BT will play “an even more important role going forward” due to its heavy investment in digital infrastructure and in the modernisation of its services.

Former top Wandisco executives pressured to return £650,000 in bonuses

JESS JONES

TWO FORMER Wandisco executives have been asked to hand back nearly £650,000 in bonuses they received before the software company became embroiled in an accounting scandal earlier this year.

Wandisco’s board has written to

both David Richards, the firm’s co-founder and former boss, and Erik Miller, the ex-finance chief, demanding they return their last bonus payments worth a total of $832,000 (£647,000).

Richards and Miller both stepped down in April after an internal investigation found that $115m in

sales were completely made up. Their departures were not connected to the investigation.

“In line with shareholder sentiment, and as simply the right thing to do, the board of Wandisco confirms that it has written to former executives of the company requesting that bonuses paid for FY

2022 are returned,” Wandisco said.

It asked for the payouts back because “it is clear that the bonuses paid are significantly at odds with the realities the company has faced”.

City A.M. was unable to reach Richards and Miller for comment. Wandisco’s share price dived 96 per cent on its return to the AIM index

on Tuesday last week, after being suspended back in March.

The next day, Wandisco announced that interim boss and former Sage Group chief Stephen Kelly will stay on as the firm’s chief executive. Before shares were suspended, it was valued at around £880m. Its market value has dropped to £103m.

OUT FOR A SPIN WE TEST THE NEW TWISTED DEFENDER P18

TALE FINISH BROAD TAKES HIS LAST EVER TEST WICKET TO DRAW ASHES P22

STANDING UP FOR THE CITY

The tide is slowly turning against working from home –and so is the evidence

IT’s an open secret. We all work a little less hard when we work from home. Anecdotally, we’ve all heard someone quip, “it’s alright, I’m working from home tomorrow”, as they make a beeline for the bar to order the fourth round of drinks during a midweek evening pub session.

But now there’s a new study which shows that –even if we’re not hungover –we all take our foot off the gas a little whilst working from home.

A new working paper, published in the National Bureau of Economic Research, looked at the productivity of workers in the data entry sector in India. It found that the productivity of those working from home was 18 per cent lower than those in office. Sure, it’s just one study. But more

THE CITY VIEW

and more firms are mandating their staff back into the office for the majority of the week as the tide turns against a setup that for too long has overly favoured working from home. For younger workers, being in the office is particularly important. It was reported in May that Deloitte and PwC were forced to offer more training to those who went through school or university during the lockdowns, after noticing they had worse teamwork and communication skills. This dire problem is not going to be solved by endlessly messaging

PIP PIP HOORAY Peak Wildlife Park in Staffordshire welcomes a new arrival

over Slack for the majority of the week. It’s almost too simple to spell out. Collaboration is best done in person. Confidence is developed outside of comfort zones. And let’s be honest, remote working is very much a privilege afforded to white-collar workers, and something that is impossible for the restaurant workers, cleaners and tradespeople whose professions simply don’t allow it. Of course, working from home has its place. The ability to do so on occasion is a great benefit, especially for those with young children. It’s clear that many firms have taken advantage of this during recent rail strikes – there are almost certainly some productivity gains to be had there. But it should be the exception, not the rule.

Developing wind farms Producing

bp’s wider transformation is underway. Whilst today we’re mostly in oil & gas, we’ve increased global investment into our lower carbon & other transition businesses from around 3% in 2019 to around 30% last year.

PEAK WILDLIFE Park in Staffordshire is celebrating the new arrival of Humboldt penguin chick Pip, pictured here at his three-week weigh in. The chick was named by children at a local nursery school.

Food inflation falls to lowest level this year in positive sign

JACK BARNETT

FOOD INFLATION has slipped to its lowest level this year and has fallen for the third month in a row in a sign that the UK could through the worst of the cost of living crisis, a new survey out today shows.

The cost of groceries climbed 13.4 per cent over the year to July, down from an increase of 14.6 per cent in the previous month, according to the British Retail Consortium (BRC).

Last month’s decline does not mean food prices are falling, just that the pace at which they are rising has slowed. Over the last month, they actually lifted 0.3 per cent.

The BRC’s data tends to be seen as an early guide as to where official numbers from the Office for National Statistics are headed.

New inflation data for July is released in the middle of this month and is likely to slow from June’s 7.9 per cent reading.

“Food price inflation also slowed to its lowest level this year, with falling prices across key staples such as oils, fats, fish, and breakfast cereals,” Helen Dickinson, chief executive of the BRC, said.

Weakening grocery price growth is a boost for the Bank of England, which has been blindsided by higher-than-expected inflation for nearly two years. In the May monetary policy report, the Bank admitted that “almost all of the upside news in CPI inflation data since the February report has been accounted for by developments in food”.

Dickinson urged policymakers not to declare victory over food inflation just yet.

“Further supply chain issues may add to input costs for retailers in the months ahead. Russia’s withdrawal from the Black Sea Grain Initiative and subsequent targeting of Ukrainian grain facilities, as well as rice export restrictions from India are dark clouds on the horizon,” she said.

CMA aims to settle Microsoft-Activision decision

SARAH YOUNG AND SAM TOBIN

THE UK’s competition watchdog has opened up its inquiry into Microsoft’s Activision Blizzard deal for comments, as it aims for a final decision by 29 August on a £55bn takeover it had previously blocked in April.

The Competition and Markets Authority (CMA) also yesterday published Microsoft’s arguments explaining why the deal should be re-evaluated, as the US software giant battles to win UK approval to buy Call of Duty maker Activision.

A court involved in the case had already published

Microsoft’s argument that the binding commitments accepted by the European Union shortly after Britain had blocked the deal had now changed the situation. Any persons wishing to comment on the new version of Microsoft’s takeover should do so by 4 August, the CMA said in its statement. Reuters

Increasing investment in the transition to lower carbon energy and keeping oil and gas flowing where it’s needed. That’s our strategy. Right now, we’re gathering weather data to help us build offshore wind farms that aim to produce enough power for the equivalent of around 6 million homes, and help the UK reach its goal of fivefold growth in wind power by 2030.

And in the North Sea, we’re currently surveying beneath the seabed to hone in on the remaining oil & gas at one of our existing fields – supporting production at a time of critical demand.

Discover more

Coutts offers to reinstate Farage’s accounts amid de-banking debacle

RICHARD WHEELER

NIGEL FARAGE yesterday said Coutts has offered to reinstate his personal and business accounts, with the former Ukip leader also seeking compensation from the private bank. Farage said the “fight goes on” as he outlined his desire for a face-toface meeting with the bank’s bosses in a bid to understand how many other people have been affected by account closures.

The former MEP said his bank

account was unfairly shut down by Coutts, owned by Natwest Group, because it did not agree with his political views.

Natwest has since announced an independent review of the matter.

Farage, speaking on his GB News programme, said: “The new CEO of Coutts, Mo Syed, somebody who has held very senior positions within that bank, is now the boss and he has written to me to say I can keep both my personal and my business accounts. And that’s good and I

Oil sector cheers plans to boost the North Sea

NICHOLAS EARL

THE OIL industry has welcomed the government’s decision to bolster the North Sea’s oil and gas sector.

The government has confirmed 100 new oil and gas development licences in British waters, two new carbon capture clusters and a consultation on the industry’s tax regime.

Prime Minister Rishi Sunak argued that he wanted to “power up Britain from Britain” and invest in crucial industries “such as carbon capture and storage, rather than depend on more carbon intensive gas imports from overseas.”

David Whitehouse, chief executive of Offshore Energies UK, praised the latest announcements and warned that without new licences, the domestic oil and gas sector risked a rapid decline –with 180 of the 283 active oil and gas fields in the North Sea set to cease production by the end of the decade.

“The UK needs the churn of new licences to manage production decline in-line with the maturing basin. If we do not replace maturing oil and gas fields with new ones, the rate of production will decline much faster than we can replace them with low carbon

alternatives,” he argued.

He believed the new announcements could “help to foster much needed confidence” in the UK’s energy sector, with “an unprecedented amount of private investment” required for the government to meet its net zero targets.

Whitehouse said: “OEUK members share the vision and ambition of all parties on delivering a home-grown energy transition and net zero with potential to spend almost £200bn over the decade. The majority of this could be spent in offshore wind, carbon capture and storage and hydrogen in the right investment environment.”

Marta Krajewska, director at industry body Energy UK, said carbon capture technology was crucial to the country’s net zero goals.

|These innovative technologies will play an important role for those sectors that will be difficult to decarbonise and there is a genuine opportunity for the UK to lead the world in their development at scale,| she said.

Carbon capture and storage involves obtaining the carbon dioxide produced by power generation and industrial activity, transporting it, and then storing it deep underground, such as in rock formations in the sea bed.

thank him for it.”

But Farage said “enormous harm” has been done to him in the last few months, adding that he still wants a full apology, compensation and a face-to-face meeting with the bank’s bosses.

“I want to find out how many other people in Coutts or Natwest have had accounts closed because of their political opinions, and I want to make sure this never happens to anybody else ever again. So the fight goes on,” he said.

DOWNING Street’s latest energy announcements yesterday will not lead to a reversal in the controversial windfall tax, despite industry hopes of it being softened to make the country’s investment climate more attractive.

Prime Minister Rishi Sunak appeared to pull a rabbit out of the hat with confirmation of a review of the oil and gas sector’s tax regime, with a potential announcement later this year. This will not , however, mean the windfall tax – first introduced by Sunak and toughened under Chancellor Jeremy Hunt – will be removed any time soon.

In its call for evidence from the industry, the government confirmed

that the focus is on the long-term investment climate of the North Sea, and that changes to the Energy Profits Levy will not be considered.

For now, it appears Downing Street considers its recent introduction of a socalled ‘price floor’ – the Energy Security Investment Mechanism – will be sufficient. This withdraws the windfall tax when oil prices decline to $71.40 per barrel and gas prices slide below 54p per therm.

Brent Crude oil is currently priced at $85.10 per barrel, while gas is priced at 67.7p per therm on the UK’s benchmark, well above the thresholds.

In contrast to industry hopes, the consultation will focus on the investment climate beyond March 2028, when the Energy Profits Levy will finally conclude, so the windfall tax should stay until then.

The tax has contributed to North Sea producers pulling out of domestic projects. So far, this includes Total slashing plans to work on an infill well on Elgin this year, Enquest planning to leave its Kraken field in the North Sea to, and Harbour Energy cutting jobs at its Aberdeen base alongside shifting investment to the US and South America.

The country’s fiscal regime for oil producers remains uncompetitive.

Labour slams Rishi Sunak’s plans to boost North Sea oil and gas output

NICHOLAS EARL

RISHI SUNAK’s energy policies are “weak and confused” and will “not take a penny off bills”, shadow climate secretary and Labour frontbencher Ed Miliband has warned.

Reacting to the government’s decision yesterday to support 100 new

oil and gas licences, alongside fresh approvals for carbon capture projects, the Labour frontbencher argued the proposals will do “nothing for our energy security” and “drive a coach and horses” through the UK’s climate commitments.

“Every family and business in Britain has paid the price of the Conservatives’ failed energy policy

which has left Britain as the worst hit country in western Europe during the energy crisis – and Rishi Sunak is making the same mistake all over again,” he said.

Miliband confirmed Labour’s continued ambition to make the UK a “green energy superpower”, with the party planning to scrap new oil and gas licences if it wins power.

The government yesterday committed to 100 new oil and gas licences in British waters

Labour’s Ed Miliband said the PM’s policies will do “nothing for our energy security”

Farage has said he is still seeking compensation and a meeting with the bank’s bosses

NICHOLAS EARL

THE BOTTOM LINE

PA

Higher rates not yet a muzzle on Brits’ borrowing

JACK BARNETT

THE EFFECTS of the Bank of England’s aggressive interest rate rises have yet to fully feed through the UK economy as Brits continue to borrow and look to get on the property ladder, official data has shown.

A clutch of numbers released by the Bank of England yesterday revealed consumers are not yet being deterred by higher interest rates, with credit card spending up £1.7bn in June, above the £1.1bn increase in May.

That was the highest monthly increase since April 2018 and far above City expectations of a £1.3bn jump.

Approvals on home loans for property purchases hit 54,700 in June, up from 51,100 in May, a surprise to markets which thought they would fall to 48,000. Some potential buyers may have rushed to secure a loan ahead of an anticipated spike in mortgage rates.

June’s credit numbers suggest the demand side of the economy is yet to be influenced fully by the Bank’s 13 successive interest rate rises.

“The drag from higher interest rates continues to weigh on the housing market, but other areas of the economy appear to [be] resilient,” Ashley Webb, an economist at Capital Economics, said.

Mortgage rates started to tick back up in June before rocketing higher after a worst-than-expected inflation print of 8.7 per cent. That sent two-year and fiveyear mortgage rates above their post mini-budget levels.

Higher home loan costs have prompted economists to forecast UK house prices could slide around 10 per cent from their peak and that a recession may still hit the country.

Latest numbers showed inflation fell quicker than projected in June to 7.9 per cent. Mortgages rates have receded slightly in response.

Marshalls to cut 250 jobs in savings move

HOLLY WILLIAMS

BUILDING products supplier

Marshalls is axing around another 250 jobs and closing a factory in Scotland after sales dived due to a housing market slowdown.

The group said the cuts are part of plans to save £9m a year, which will see it shut a factory in South Lanarkshire and reducing shifts and production at other sites and restructuring its commercial team.

The role reductions add to about 150 job losses at the end of last year.

Yorkshire-headquartered Marshalls announced the latest cull as it warned over full-year profits, with a result in the final six months set to be “markedly” lower than the first half, dashing hopes of a recovery. The alert sent shares tumbling by as much as 10 per cent.

Marshalls said like-for-like sales slumped by 13 per cent in the six months to June 30, while it expects

to report a 27 per cent slump in interim underlying pretax profits, to around £33m.

It said it has faced “persistent weakness in new build housing and private housing repair maintenance and improvement which are key end markets for the group”.

Activity in Britain’s housebuilding sector has slowed down rapidly, with developers cutting home completions as buyer demand has fallen due to soaring mortgage rates. PA

The building products supplier is axing jobs and closing a factory in Scotland after sales dived due to a housing market slowdown

Sunak: 2030 polluting car ban here to stay

GUY TAYLOR

THE 2030 banon the sale of petrol and diesel vehicles will remain as a government policy, Prime Minister Rishi Sunak has said.

Speaking on BBC Radio Scotland yesterday, Rishi Sunak insisted a ban on the “sale of new cars” has been the policy “for a long time” and “remains the government’s policy”.

“I’m committed... but we will do it in a proportionate and pragmatic way that doesn’t necessarily add burden or cost to families’ bills, particularly at a time when inflation is higher than any of us would have liked,” he added.

The government has faced growing pressure to reaffirm its commitment to what is seen as a key factor in driving the automotive sector to net zero.

Sunak has come under fire in the last few weeks for expressing doubts, with supporters of the policy calling for the

Prime Minister to clarify his position.

Cabinet minister Michael Gove insisted last week that the 2030 goal was “immovable” after Sunak had told national media that he didn’t want to “hassle” consumers with extra costs amid the cost of living crisis and that any net zero push had to be done in a “proportionate and pragmatic way.”

It comes amid fresh calls from some Tories for a rejig of some net zero policies after the Uxbridge by-election.

Former Tory party leader Iain Duncan Smith said the government should have “another look” at the plans. “If we rush to this, what we risk right now is simply becoming even more dependent on China,” he said.

The uncertainty has prompted backlash from electric vehicle leaders and campaigners in the automotive sector, who have doubled down on the necessity of the ban for investment in the green transition and hitting targets.

EV charger rollout slowed by local authorities

GUY TAYLOR

THE ROLL-OUT of electric vehicle (EV) charge points has been slowed by delays at the local authority level and is set to fall short of ministers’ targets, new research has found.

Data obtained by law firm RPC shows 8,000 chargers were installed by UK local authorities over the last year, an increase of seven per cent.

Lime boss Wayne Ting said London is an “incredible market” for e-bikes

Lime boss: London commuters are our ‘most important’ users

GUY TAYLOR

LONDON’s commuters are our “most important” riders, the CEO of the ebike operator Lime has said. Wayne Ting, Lime’s chief executive, told City A.M. “commuting is the most important use case” for the popular vehicles as demand soars in the capital.

Lime has seen a 10 per cent monthly

increase in riders in London since 2019, with the now-distinctive ‘clacking’ noise – made by Lime bikes that have been hacked to avoid paying –being a strong contender for the capital’s song of the summer.

Nearly 39 per cent of Lime riders use the bikes for commuting in London, according to Steer, making it the firm’s most important target market.

The government has set aside £1.6bn to expand the network of chargers to 300,000 by 2030 when a ban on the sale of petrol and diesel vehicles comes into place.

Expenditure disclosed by local authorities fell well below the funds required, the RPC said, down nearly £1m in the last year to £41m.

Elizabeth Alibhai, partner and head of real estate at RPC, described the slow pace of local authority installations as a “a real concern” and said private investment would be essential in plugging the gaps.

A Department for Transport spokesperson said: “The number of public charge points rose by 38 per cent over the last year – a rate that puts us well on the way to the 300,000 figure by 2030.”

UK audit watchdog picks former aviation regulator as new chief

CHRIS DORRELL

RICHARD MORIARTY has been appointed chief executive of the audit regulator, the Financial Reporting Council (FRC), as it undergoes major reforms.

Moriarty, who most recently served as chief of the Civil Aviation Authority, will take up his role at the beginning of October. Sarah

Rapson will take the role of acting chief executive until then.

Moriarty has served for over 20 years across a range of regulated sectors, including as chief executive of the Legal Services Board and deputy chair of the Social Housing Regulator.

He succeeds Sir Jon Thompson, who stepped down to become chair of HS2 having joined the FRC in 2019.

Moriarty said: “The FRC has a critical

role to play in underpinning investor and public confidence in financial reporting and corporate governance.” Moriarty’s appointment comes as ministers push forward with plans to replace the FRC with a new, more powerful regulator called the Audit, Reporting, and Governance Authority, The overhaul comes as part of a wider package of reforms aimed at revamping the UK’s audit sector.

Heathrow boss: Business travel yet to rebound

GUY TAYLOR

THE AVIATION sector should not bank on soaring demand continuing, the boss of Heathrow airport has warned, amid concerns in the sector that airlines could struggle post-summer without a sustained recovery in corporate travel.

“We all want to make the most of the demand while it’s here but we can’t bank on it continuing,” long-time chief John Holland-Kaye told City A.M. While leisure travel bookings have soared ahead of expectations, business demand has recovered much more slowly, which could create issues when the busiest months –traditionally May to October –come to an end.

“What we’re seeing at the moment is leisure demand is ahead of where it was in 2019, business demand is behind where it was in 2019,” Holland-Kaye explained.

“Business was about 34 per cent of our demand in 2019, it’s now down. So it is coming back much more slowly, which is sort of what we would have expected. The surprise is that leisure demand is defying gravity, and... we all think it’s

only a question of time before that starts to slow down,” he said.

Aviation has seen an unprecedented boom over the last few months due to pent-up holiday demand post-pandemic, despite ongoing cost of living concerns and a difficult macroeconomic backdrop.

Both Easyjet and the British Airways owner IAG reported record profits for their last quarters in July, with IAG netting a colossal €1.25bn (£1.07bn). Ryanair, though slightly more tempered, still flew past pre-pandemic levels on the back of strong demand.

John Grant, senior analyst at aviation analytics firm OAG, said “the great unknown... is corporate recovery, which has been much slower than anticipated”.

“Airlines [are] noting this issue as a factor in their year-end guidance”, Cirium analyst Rob Morris also noted slowing recovery in the sector as high fares in corporate travel drive companies to rein in budgets for business trips.

Capita picks Amazon executive to lead London outsourcing giant

JESS JONES

LONDON-LISTED outsourcing firm

Capita is undergoing a change of leadership as CEO Jon Lewis steps down, passing the baton to Adolfo Hernandez. After five years, Lewis is retiring as chief executive and board director while Hernandez will leave his post as VP of global telecommunications for Amazon Web Services.

Capita, which provides data and IT outsourcing processes, has this year

dealt with two major cyber attacks. Despite the recent cyber challenges, Capita secured two lucrative government contracts worth a combined total of £565m in May.

Chair David Lowden praised Lewis for his determination and decision to postpone retirement due to the March cyber incident.

The firm is preparing to announce its half-year results on Friday, with trading expected to meet company expectations for the first half of the year.

Adolfo Hernandez is a seasoned tech expert who is currently a VP at Amazon Web Services

Heathrow boss John Holland-Kaye thinks demand will slow

Heineken sees sales drop after beer price hikes

BREWING giant Heineken has cuts its earnings guidance after consumer demand was hit by price increases. The Dutch brewer, which also makes Fosters and Amstel, said it made “significant price increases” at the start of the year in an effort to offset “unprecedented levels of commodity and energy inflation”.

In the UK, the Office for National Statistics (ONS) said beer prices were 10.2 per cent higher in June than a year earlier.

The brewer yesterday said the volume of beer it sold over the first half of 2023 was down 5.6 per cent year-on-year.

It told shareholders it saw a sharper 7.6 per cent drop over the second quarter as a result of the “cumulative effect of pricing actions” and tough economic condi-

tions on its customers.

As a result, the firm reduced its predicted earnings for the year, indicating that it expects growth in operating profit before one-off costs to be between zero and a mid single-digit percentage. It had previously pointed towards growth between a mid and high single-digit percentage.

Meanwhile, the firm reported that total revenues grew by 6.3 per cent to €17.4bn (£14.9bn) over the half-year due to the benefit from higher pricing.

It said it also benefitted from customers continuing to buy more premium brands.

Shares took a hit after the disappointing update, closing down almost seven per cent yesterday.

Aarin Chiekrie, equity analyst at Hargreaves Lansdown, cited the firm’s “big miss versus market expectations” for the drop.

simplistic’: BAT boss shuns shareholder calls to leave London

THE BOSS of British American Tobacco (BAT) has rejected calls from a top shareholder to relist in New York, stating that moving across the pond was “not a top priority” and a “very simplistic view”. Tadeu Marroco, who was appointed chief executive following the sudden departure of former CEO Jack Bowles in

Pearson profits rocket as firm embraces AI

JESS JONES

EDUCATION publisher Pearson yesterday posted a strong set of results for the first half of the year as the firm moves to embrace artificial intelligence.

The London-based publisher yesterday reported a 56 per cent increase in headline growth, with an adjusted operating profit of £250m.

The listed firm also reported underlying growth of 44 per cent compared to the first half of 2022, while its operating cash flow mushroomed to £79m, up from £9m in the same period last year.

Chief executive Andy Bird said the firm was “confident” it would achieve its full year expectations.

May, said it is “very simplistic to attribute the valuation gap to the place where we are listed” and emphasised BAT’s “well-established base of investors in the UK”, as reported in The Times. It comes after Rajiv Jain, the founder of investment firm GQG Partners, urged BAT to move its main listing from London, calling the firm an “orphan of Europe” in the Financial Times in March.

Shares in the firm, which saw a huge surge last year, closed flat yesterday.

It comes after the firm’s share price was driven down earlier this year after rival publisher Chegg warned AI platform ChatGPT had driven down revenues.

Pearson, however, has shown it is key to embrace the tech, with the firm in May adding a generative AI tool to its online platform Pearson+.

HENRY SAKER-CLARK

The boss of the Lucky Strike maker said relisting was “not a top priority”

GUY TAYLOR

‘Very

AS WEENTER what looks like the final leg of central banks’ interest rate rising journeys, it’s as good a time as ever to trace why they have been jolted into action after over a decade of ultra-loose policy and whether their response to the inflation crisis has been effective.

Coming out of the worst of the pandemic in the summer of 2021, central banks should have seen that the conditions for inflation to return were lurking in the corners of the global economy.

International supply chains were stretched by a combination of ports suddenly closing at short notice due to virus outbreaks, workers being forced to stay at home and unusually high goods spending overwhelming suppliers.

Once lockdowns ended and citizens gradually returned to normal spending habits, demand for essential items like energy came roaring back, colliding with strained supply.

Judging these trends to be “transitory”, as the Federal Reserve, European Central Bank (ECB) and Bank of England did at the time, can be seen as justifiable. Staff would return from Covid. There was little reason to think spending wouldn’t rebalance. Oil, gas and electricity production would rise in response to higher prices.

The bigger concern for central banks was that they didn’t know what shape their respective economies would be in after two years of being ravaged by the pandemic, delaying the start to their tightening cycles.

That’s not to say interest rate rises weren’t required. Signalling an inflation intolerance to financial markets, households and businesses helps retain credibility. Quantitative easing probably lasted too long and was too generous.

As such, the rate rises (finally) came. The BoE went first in December 2021, lifting

ARE CENTRAL BANKS TO BLAME FOR INFLATION?

borrowing costs to 0.25 per cent from 0.1 per cent. The Fed followed in March 2022, then the ECB fired its gun in July 2022.

Everything changed in February 2022.

Russia’s full-scale invasion of Ukraine could not have been foreseen. Its ramifications in energy and food markets were huge.

CPI in the UK jumped two percentage points in April to nine per cent. That was the biggest month-on-month annual increase since June 1979, according to modelled data from the Office for National Statistics.

In the US and eurozone, prices raced ahead. The dynamics required novel responses from central banks and they delivered. The Fed launched four 75 basis point rises. The ECB’s first increase was a smaller 50 basis points.

Those on Threadneedle Street were spurred into such action not by inflation but by the haphazard tax and spending decisions of Liz Truss during her short premiership.

Kudos must be given to the BoE for its handling of that episode. It launched an emergency short-lived bond-buying programme to hose down a fire in UK debt markets. Its 75 basis point increase went a way to tame higher inflation expectations.

Jerome Powell and co at the Fed have arguably been more aware of stimulative fiscal policy nudging up inflation. They went faster and steeper than their peers, partially to offset Americans pumping the up to $2,800 of parachute payments they received during the pandemic into the economy.

about higher interest rates. Or maybe elevated living costs are steering them towards debt. The overall sentiment of the snapshot though was that the full effects of the Bank’s 13 straight interest rate rises have yet to really crunch the economy. Home loans actually rose to 54,700 despite the initial stages of the mortgage rate surge taking place in June. More pain is coming.

supported spending and inflation. The tension between monetary and fiscal policy was there for all to see.

So how have central banks done? Inflation is three per cent in the US (lower than Japan), 5.3 per cent in the eurozone and 7.9 per cent in the UK –all above target.

Doubtless the Fed, ECB and Bank of England have had some of their credibility knocked. Those on Threadneedle Street should be regretful of their terrible forecasting record over the last 18 months.

Central banks, though, as economist Mohamed El-Erian puts it, aren’t the “only game in town”. They are simply inflationstabilising vehicles navigating the economic conditions handed to them. To prevent future inflation flare ups, politicians and business leaders must be bolder. Investment needs jolting, infrastructure must be renewed and better jobs created. Mere tweaks to interest rates will not cut it.

City A.M.’s economics editor Jack Barnett takes a deep dive into the state of the economy in his weekly column

THE GLOBAL ECOSYSTEM OF INSURANCE

at the start of this year, both on the level of coverage and the price.”

everything you can possibly imagine to underwrite these risks and projects.”

INSURANCEis a 600, 700-year old industry,” Richard Wheeler, Aon’s co-leader of global re speciality reflects. “But the opportunities ahead still significantly outweigh the journey that the market has been on. Because everything requires insurance.”

Wheeler would know. In his role he ranges across global challenges, in the world’s richest and poorest countries.

He leads the property specialty division within Aon’s wider reinsurance business –the products which global reinsurance companies and syndicates used to manage their exposure to catastrophic incidents, from floods to wildfires and everything in between.

Fundamentally his job is to offer solutions that bring risk exposure down to acceptable levels. And

that, he tells me, is becoming more of an issue as the world becomes a more volatile place, at least when it comes to natural disasters.

“Our clients have to be profitable enterprises whilst managing the volatility of catastrophe risk. And catastrophe risk is both a severity and a frequency problem.

“We’re obviously in a period of climate change dialogue, heighted dialogue around the severity of hurricanes, the impact of earthquakes and floods, and secondary perils: floods, hailstorms, freezes, wildfire.

That’s created a significant amount of loss in the marketplace,” he tells me.

Wheeler (pictured) has seen the reinsurance market react as it always does –by resetting. “The whole market took a reset

That’s the adaptability that has been a hallmark of the industry since it first emerged in the alleyways of London centuries ago. Insurance and reinsurance are fundamentally about managing risk at both ends –and these risks have been around since the dawn of the industry. But with more of these events occurring, the importance of managing the risk –and of being able to model that risk –has increased.

But it’s not just frequency –Wheeler tells me there’s a raft of factors pushing up the need for reinsurance solutions. More people live in urban areas, for instance, pushing up the potential for loss if natural catastrophes strike cities. The cost of rebuilding has also increased, with supply chains gummed up post-pandemic. Wheeler is rightly evangelical about the industry’s complexity –and the reward of taking on the challenge.

“Insurance is a mystery to most people. There’s a whole ecosystem behind it,” he tells me, and that ecosystem is the “lubricant” of economic development across the world.

“There is an enormous amount of investment in science, analytics, stochastic modelling, and we invest in a ton of really smart people: engineers, actuaries, mathematicians, geologists,

Those projects can range broadly. Wheeler says what gets him excited is the knowledge that the industry is constantly evolving to ensure –no pun intended –that the challenges of the 21st century come with 21st-century solutions, whether looking at flood defences in the Thames or projects to prevent disastrous drought or flooding in Africa.

“It’s probably not spoken of enough how much investment the insurance industry has made to safeguard the ordinary man on the street in every location across the world, whether it’s building a dam or a bridge and the employment that comes from all the supporting sectors and industries.

“I’ve been very privileged to work with big complex global firms, and the challenges they face are big and complex,” Wheeler explains.

“That allows you to get really stuck into the depths of it, but also see the strategy of how they deal with risk, and some of it is done at 10,000 feet and some of it at 10 feet,” he continues.

Wheeler, who is still some way from veteran status, has nonetheless seen plenty of change in the industry.

“It used to be about school badges and football badges, but it’s changed completely,” he says.

insurance industry is the lubricant of economic development worldwide

The insurance industry has made so much investment just to safeguard the ordinary man on the street

SWOOP FOR SNOOP Vanquis Banking Group acquires Dame Jane-Anne Ghadia’s AI-assisted money saving app Snoop

VANQUIS Banking Group has announced the acquisition of the fintech firm Snoop for an undisclosed sum. Snoop, founded by Dame JayneAnne Gadhia in 2019, provides its customers with “personalised insights” by using AI and open banking data to help them manage their finances. The deal will provide Snoop with access to Vanquis’s 1.7m customers. Vanquis said the deal marks an “important step” by bringing a moneymanagement app into its customer proposition.

Interest rates drag on business confidence in UK

HIGHER interest rates and elevated prices has thrown a wet blanket over UK business optimism, according to surveys out today.

Confidence as measured by the lobby group the Institute of Directors (IoD) was largely unchanged last month at minus 30 points, up marginally from June’s minus 31 point reading.

ANNOUNCEMENTS

LEGAL AND PUBLIC NOTICES

CITY of LONDON

This notice gives details of applications registered by the Department of The Built Environment Code: FULL/FULMAJ/FULEIA/FULLR3 – Planning Permission; LBC – Listed Building Consent; TPO – Tree Preservation Order; OUTL – Outline Planning Permission

52 - 56 Leadenhall Street, London, EC3A 2BJ 23/00609/DPAR

1 Threadneedle Street, London, EC2R 8AY 23/00716/FULL

It solidifies signs that pessimism is setting in among firms, as first indicated by the IoD’s June index, which fell from just minus six in May.

“With inflation proving more persistent than was previously expected, and more firms starting to experience the negative impact of rising interest rates, there is a greater sense of caution in the air than in the spring,” Kitty Ussher, chief economist at the IoD, said.

Prices have climbed 7.9 per cent over the last year to June, down from a largerthan-expected increase of 8.7 per cent in May.

Although inflation is expected to keep falling throughout this year to around

The Aldgate School, St James’s Passage, London, EC3A 5DE 23/00662/LBC

3 Queen Victoria Street, London, EC4N 4TQ 23/00686/FULL

1 Cornhill, London, EC3V 3ND 23/00691/FULL

1 Cornhill, London, EC3V 3ND 23/00692/LBC

1 Lombard Street, London, EC3V 9AA 23/00699/LBC

1 Fleet Street, London, EC4Y 1BD 23/00701/LBC

23 Great Winchester Street, London, EC2P 2AX 23/00709/LBC reinstating original facade conditions.

entrance doors to Threadneedle Street. Livery Hall, Stationers Hall, Stationers Hall Court, London, EC4M 7DD 23/00730/LBC

15 Old Bailey, London, EC4M 7EF 23/00744/LBC

five per cent by Christmas, core inflation – which removes volatile food and energy prices and is seen as a more accurate measure of underlying price pressures – may prove harder to tackle.

The Bank of England has already lifted interest rates 13 times in a row, which is reining in business exuberance.

A separate survey from Lloyds Bank out today shows “UK business confidence dipped by six

Persistent price pressures have seen UK business optimism take a dip

points to 31 per cent in July, with nine out of 11 regions and nations reporting a lower confidence reading month-on-month”.

Optimism is poised to slip further in the coming months as the Bank continues to pump up borrowing costs, starting this Thursday with an expected 25 basis point lift to a fresh 15-year high of 5.25 per cent.

The UK’s official interest rate is projected by money markets to reach a peak of 5.75 per cent. Cuts are not expected until late next year.

81 Newgate Street, London, EC1A 7AJ 23/00752/FULMAJ

New Street Archway To Devonshire Square 23/00781/LBC

of lighting.

You may inspect copies of the application, the plans and any other documents submitted with it on-line at any representations made about the application will be passed to the Secretary of State and there will be no

JACK BARNETT

Flip phone comeback set to grip market

UK’s 5G rollout given £40m funding boost

SOPHIE WINGATE

LOCAL authorities have been invited to apply for a share of a £40m government fund to help them roll out 5G wireless technology.

The funding is designed to help towns, cities and rural areas use advanced wireless connectivity to drive innovation in sectors including healthcare, agriculture and transport, the Department for Science, Innovation and Technology said.

The technology could for example be used for sensors that improve air quality by better managing traffic, or 5G-enabled drones that can scan fields to help farmers check the condition of crops.

expected to soar to $60bn by 2028.

Global foldable smartphone shipments are projected to hit 101.5m in 2027, up from 18.6m in 2023, with Samsung and Apple leading the market, according to Counterpoint’s Global Foldable Smartphone Tracker and Forecast.

and convenience, with foldable phones making it easier to carry bigger screens. However, analysts say technology needs to advance and prices must fall before the sector can really take off.

Apple's potential entry into the foldable market next year “will undoubtedly deliver a polished version” but with a high price tag, said Joseph Teasdale, head of tech at Enders Analysis.

the foldable smartphone market reached almost $16.5bn (£12.8bn) in 2022 and is

Media analyst Ian Whittaker said the comeback was influenced by both fashion

The market is heating up as Google joined with its £1,749 Pixel Fold in May this year, while Apple is rumoured to be introducing a contender in 2025.

“Once we get a foldable phone that is both high quality and not too expensive, the category is bound to grow,” Teasdale added.

Data and digital infrastructure minister Sir John Whittingdale said: “Greater adoption of 5Gpowered technologies will help deliver more efficient public services, new opportunities for residents and businesses, and a boost for economic growth.”

The deadline for local authorities to apply is 10 September, with the funding period due to kick off in November and run until March 2025.

THE NOTE BOOK

THEQ2 RESULTS season is in full swing and, so far, it is fair to describe the season as better than expected. The tech companies have beaten expectations, especially Meta. The consumer goods companies such as Unilever and Coca-Cola have pushed through betterthan-expected price increases to customers. Even ITV’s 1H results saw some love from investors.

Yet the agency side has been more mixed, with Publicis outperforming but others pulling back full year estimates. That was no more evident than in the results of S4 Capital, which pulled back its full year guidance after a weak Q2.

The pullback was another blow to S4, which has lost more than 85 per cent of its share value since its peak less than two years ago. Yet, unlike its previous issues where there was an element of ‘too much, too soon’, this one is more just an issue of serious bad luck.

There are three things about S4 that help explain the latest warning. One is its reliance on digital. The second is the lack of a legacy media business to

provide at least some protection.

The third is a high concentration of revenues from a small number of clients.

Spending in tech and by tech clients have been impacted as clients absorb previous high levels of spend and tech companies look to hold off on spend (Meta stated Q2 marketing expenses fell 12 per cent year on year). This is not agency specific but a feature across the whole space (Interpublic mentioned it in its profit warning). For S4, this is extremely problematic as in 2022 digital platforms accounted for 90 per cent of its net revenues. Moreover, other agencies have benefitted from strength in their legacy media units, which plan and buy ad slots for clients. The problem for S4 –as a new agency group –is it does not have the media business to help. There is a rationale for S4 not to have a legacy media unit – if only because scale is critical – but it proved a factor in the latest warning.

Thirdly, because of its concentration, if one or two

Where the City’s movers and shakers get some things off their chest. Today it’s Ian Whittaker, founder of Liberty Sky Advisors

THE BEST IN THE BIZ ON BAIRNS’ TECH

clients pull back spending, this has a disproportionate impact compared with other agencies, which are more diversified and have a long tail of clients. The ‘Whopper’ strategy (clients who spend over £20m p/a) has pros and cons, the latter the case if a few clients decide to hold off on spending.

It might be argued S4 should have invested in traditional agency businesses, but that wasn’t the market reaction when S4 launched five years ago and people praised its digital focus. Hindsight is a wonderful thing.

The key question now is whether this will reverse. My own view is yes. You never underestimate Sir Martin Sorrell. However, more to the point, the conditions for a recovery are building –falling inflation should lead to lower interest rates while better results should mean clients are more willing to spend.

Clients are likely to also return to spend more as market sentiment improves. You would imagine S4 should benefit significantly from these trends. As usual, this is not investment advice.

Dull activity data from China stokes stimulus pleas

JOE CASH

CHINESE authorities released additional policy guidelines yesterday but no concrete measures to boost the sputtering economy and domestic consumption, leaving investors wanting as dull activity data heightened the pressure for action. Manufacturing activity in the world’s second-largest economy fell for a fourth straight month in July while the services and construction sectors teetered on the brink of contraction, official surveys showed, threatening

THE BENEFITS OF ADVERTISING

£ A few columns back, I mentioned that the next general election was not in fact a foregone conclusion (one of my side-hobbies is political betting). The Uxbridge by-election, where the Conservatives held the seat despite expectations, suggest this may be the case.

Unlike all the other recent byelections which have been free hits with little consequence, this one was fought on a real-life issue –and the Tories won. As we get closer to the election, and Labour’s policies come under more scrutiny, the polls will narrow sharply.

There are many excellent podcasts and newsletters out there on the media and tech sector but if you want to know more about what is happening in the kids’ arena –which is a very valuable area –then I would recommend two people: Jo Redfern and Emily Horgan, both of whom give incredibly valuable insight into the space on both their newsletters and their Kids Media Club podcast. And check out Joel Silverman, who went from being a Mayfair stylist to the CEO of the excellent Kidsknowbest company.

growth prospects for the third quarter.

But officials at a news conference called by the state planner gave only vague promises to “study and formulate policies”, disappointing hopes that more stimulus was imminent after positive hints from a Politburo meeting this month –and a stock market rally that followed.

“Policy support is needed to prevent China’s economy slipping into recession, not least because external headwinds look set to persist,” Julian Evans-Pritchard, head of China economics at Capital Economics, said.

ANNOUNCEMENTS LEGAL AND PUBLIC NOTICES

SEARCH NOTICE

Re: Lau Kwok Leung Tso (“the Tso”)

We, the undersigned have instructions to represent the Tso in dealing with the Tso’s property and would like to invite Mr Lau Kwai Fong, the issue / son of the late Mr. Lau Shu Sang (deceased) to contact our Mr. Peter Yeung / Ms Peggie Ho at (852) 25861881 or peteryeung@hlly.com.hk so to arrange for a meeting of the Tso to resolve the matter regarding the disposal of the Tso’s property.

Hau, Lau, Li & Yeung

Solicitors

Unit 1720, 17th Floor Tower 1, Admiralty Centre, 18 Harcourt Road, Admiralty, Hong Kong

Tel: (852) 2586 1881

Fax: (852) 2596 0909

PREVIEW

PAGE 22

Growth across the 20 countries that use the euro hit 0.3 per cent in the three months to June, according to Eurostat

EU pulling away from recession, data shows

JACK BARNETT

THE EUROPEAN economy is outperforming expectations and pulling away from recession as inflation continues to descend, official data has shown.

Growth across the 20 countries that use the euro hit 0.3 per cent in the three months to June, according to the bloc’s statistics agency Eurostat.

That topped analysts’ expectations of a 0.2 per cent expansion rate and returned the continent to growth after gross domestic product (GDP) flatlined in the first three months of the year.

Inflation is also dropping across the common currency bloc, down to 5.3 per

cent, according to initial estimates by Eurostat, in line with forecasts.

July’s inflation drop will have been noted by members of the European Central Bank’s (ECB) governing council, who last week said another interest rate rise at their next meeting in September would depend on incoming data showing price pressures cooling.

However there are signs in Eurostat’s numbers that price pressures are withstanding the monetary authority’s tightening efforts. Core inflation held steady at 5.5 per cent.

The ECB last week backed its ninth straight rate rise, lifting its deposit rate to 3.75 per cent, the joint highest level

since the monetary authority was created at the turn of the millennium.

Eurozone growth was powered by bloc powerhouse France expanding 0.5 per cent in the second quarter of this year. Spain lifted 0.4 per cent, while Ireland, often volatile, surged 3.3 per cent.

All the eurozone’s major economies notched a decline in inflation.

However some analysts noted removing France and Ireland from the calculations paints a bleaker picture.

“If we exclude these effects, the increase in eurozone GDP in [Q2] almost disappears,” Jack Allen-Reynolds, deputy chief eurozone economist at Capital Economics, said.

SPORT England’s Lionesses take on China this morning hoping for a spot in the last 16 of the World Cup

ENGLAND VS CHINA FOOTBALL

S4’s latest woes are down to bad luck, not bad judgement

others have all pointed to this, leading several to upgrade full year guidance. On many of the calls, the strength of their brands has been highlighted as the key driver of this. Maybe it is time to recognise advertising adds real shareholder value.

Reuters

CITY DASHBOARD

YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

LONDON REPORT BEST OF THE BROKERS

FTSE 100 closes higher but investors cautious before BoE rate hike

THE FTSE 100 closed slightly higher yesterday, after a tempered start to a week in which the Bank of England is expected to hike interest rates to their highest level since 2008.

The capital’s premier index kicked off down 0.26 per cent, before bouncing back by close to 0.17 per cent on stronger-than-expected eurozone GDP figures.

The domestically-focused mid-cap FTSE 250 index followed a similar trajectory, sliding 0.23 per cent on the open before a recovery before close to finish up 0.2 per cent.

The BoE is expected to raise rates on Thursday by 25 basis points to 5.25 per cent, a 14th consecutive hike and marking the highest levels seen since 2008. That rise would mark a slowdown from June’s 50 basis point jump. Yet investors were still cautious yesterday,

with a higher hike not off the cards.

The biggest faller was Rolls-Royce.

Ocado Group closed down 3.99 per cent while BT Group shares were down 1.65 per cent after the appointment of new CEO Allison Kirby.

Airline conglomerate IAG was the FTSE’s biggest riser, continuing a share price boost on the back of a record £1.1bn profit reported in its half year results last week amid booming consumer spending on travel.

On the FTSE-250, manufacturing group Marshalls closed down 2.24 per cent.

A major pledge from Prime Minister Rishi Sunak to expand oil drilling in the North Sea sent shares in Ithaca Energy and Harbour Energy up 8.03 and 5.81 per cent respectively.

Dr Martens was also up strongly after a report that activist fund manager Sparta Capital had acquired stock worth tens of millions of pounds.

Hydrogen specialist AFC Energy has seen “strong commercial progress” in 2023, Peel Hunt analysts said. The firm’s strategy of deploying its ‘Power Tower’ hydrogen generators in trials on construction company sites has “borne fruit” and “provides a solid pathway to UK mass market commercialisation of its hydrogen generators”. They say ‘buy’ with a 125p target price.

THE CHINESE TAKEAWAY

Marshalls has had a difficult year on the back of a slowdown in the UK housing market. Shares in the building and roofing products supplier tumbled after it announced plans to cut 250 jobs and lowered its annual forecast. Peel Hunt lowered its target price from 380p to 310p but retained its ‘buy’ rating, arguing that management is taking “the right actions” and a strong brand will solidify appeal.

“The momentum behind European markets’ positive session appears to have been driven by strong gains in Chinese equity markets against a backdrop of strong indications from Chinese policymakers that they are looking at moves to boost the economy in the coming weeks.”

MICHAEL HEWSON, CHIEF MARKET ANALYST AT CMC MARKETS

OPINION

EDITED BY SASCHA O’SULLIVAN

Can the Tories reclaim Britain’s towns again? The Red Wall vote is riding on it

mitory. But in an era of hybrid working, public attitudes are shifting to become more accepting of a commute into a city office two or three days a week.

That is, as long as public transport is reliable or roads aren’t heavily congested.

THE Conservatives seem to have discovered a new love for cities. Last week Michael Gove announced a new urban quarter for Cambridge, a revamped city centre for Leeds and accelerated development in East London dubbed “Docklands 2.0”. The logic is obvious: boosting growth, building homes, and decarbonising our economy means backing cities.

But something was missing from this vision. Apart from a brief mention of Barrow in Cumbria, the Levelling Up Secretary’s speech was curiously quiet (for once) on the future of Britain’s towns.

Just a few years ago towns were at the heart of political debate. The 2019 election might have been all about getting Brexit done on the surface, but the deeper trend was the backlash of Britain’s towns. “Workington Man”, an archetypical swing voter identified by Onward, became a symbol of the heart of the new Tory coalition; on the left Lisa Nandy argued that Labour needed to move away from its metropolitan fanbase. Ultimately, towns turned out to be the red wall’s unstable foundation.

Britain’s towns are key to our national economic success. In too many parts of the country, people with talent can’t deploy it and high potential businesses

can’t recruit. Technological shifts and capital flows are widening the gap between towns and the rest of the economy, and young people are voting with their feet. These trends are self-reinforcing, but they are not inevitable.

The last few years have seen a flurry of policies designed to support towns. Investment was channelled through the towns fund and future high streets fund. Treasury officials were shuffled to a new Darlington civil service campus. Railway stations closed as part of the 1960s Beeching cuts were re-examined and restored.

But these piecemeal policies don’t add up to a proper vision. Britain’s towns are not, as some orthodox economists have argued, doomed to eco-

nomic failure and decline. But neither will they restore their historic role as major centres of employment and industry. The future lies instead in a new compromise for our towns, with three elements.

First, every town needs a focussed local economy that can bring in investment. In recent decades too many towns have lazily adopted a “foundational economy” approach, accepting ever increasing employment in the public sector or low value-added services. But it is a town’s tradeable economy - companies that export products and services - that attract investment and create jobs.

Many towns have a comparative advantage already, often in sectors like

manufacturing or logistics that are illsuited to cramped urban cores. And the best towns plug in to the growth plans of nearby big cities. The key is being clear-eyed about what successful local industry looks like: South Shields will not be the green manufacturing capital of the UK, but it could be a thriving hub for maintaining offshore wind turbines. Even if this local tradeable economy contributes a decent chunk of economic output, it will never employ as many people as the collieries, shipyards, or factories of the past.

So second, more people will need to commute from towns to cities. This is the truth that many politicians don’t want to admit, fearful of charges that they are turning their patch into a dor-

Want to find freedom? It’s in net zero and low traffic zones, not Thatcher’s old car

WHEN the Tories managed to cling onto power in the Uxbridge by-election it was interpreted by the leaders of both the Conservative and Labour parties that green policies are unpopular with voters. As such, there has been lots of talk – especially among Conservatives – about rowing back on the UK net zero commitments and removing government funding for schemes such as Low Traffic Neighbourhoods (LTNs). Such an approach would be a mistake.

First and foremost, it is wrong to say that green measures are unpopular. There is huge public support for climate-friendly policies with a significant proportion of Brits thinking the government should be doing even more to protect the environment. The UK is somewhat of an outlier (for once in a good way) and there is a broad consensus among all the main political parties on the need to implement environmentally friendly policies to tackle climate change. However, just because some-

Ben Ramanauskas

thing is popular does not make it right. There are many reasons why net zero schemes to reduce traffic are good ideas, including freedom. Opponents of net zero often claim green policies diminish freedom. In reality, the opposite is true. Meeting our net zero target by transitioning to green energies will mean that the UK can become self-reliant in energy. We will never again be at risk of being blackmailed by hostile powers such as Putin’s Russia, meaning that the UK can continue to defend freedom both at home and abroad.

Climate change is already leading to an increase in extreme weather such as droughts and wildfires. This can be in-

credibly damaging for economies, especially for those of less developed nations. Not only is this a disaster for the people there, it also plays into the hands of the hostile states that do not share our values. It risks these countries coming under malign influence under the guise of “economic aid” and their people being weaponised just as the Belarusian government has done by using refugees to place pressure on countries in Eastern Europe and try to divide the Western coalition.

Although industrialisation driven by fossil fuels has brought economic growth and the freedoms we all enjoy in the UK, they have also imposed costs on people in less economically developed countries which future generations will have to deal with. Reaching our net zero targets may impose some restrictions on us now in the short term, but it will remove the burden on potentially hundreds of billions of people in the future by ensuring that they live on a safe planet with abundant and clean energy. Turning our attention to schemes

such as LTNs in particular, I can appreciate the argument made by those that a car enhances the freedoms of people. This is true in many ways; it allows people to travel and take up opportunities which they may otherwise not have been able to. In many ways cars are great, but there are negative externalities associated with driving.

For example, cars take up space on the road which creates congestion meaning that people spend less time earning money and living their lives as they would like. Moreover, cars – especially the way they are often parked – create barriers for people with mobility issues, thereby curtailing their freedom.

Obviously it’s important to build a consensus and support the most vulnerable with the transition. However, far from diminishing freedom, sticking with net zero will enhance freedom in the UK and around the world for generations to come.

£ Ben Ramanauskas is an economist at Oxford University and ex-trade adviser

Cultural attitudes to commuting differ. In Jarrow, I spoke to people frustrated that jobs are going to Newcastle; others in Barry, South Wales, are pleased about opportunities in nearby Cardiff. Whether town and city dwellers see their fates as tied will be key to the success of both tribes.

Third, we need to make our towns nicer places to live. More people will be drawn to towns because they are safe, beautiful, and fun - not purely the jobs on offer. To many, towns offer a greater sense of security and belonging than big cities. Local leaders need to tackle antisocial behaviour, increase the supply of attractive homes, and ensure the pubs, bars, and restaurants that give an area character can keep their doors open. And they need to nurture the community groups, cultural activities, and heritage assets that make local areas unique.

The only way to steward these three ingredients in the long-term is through devolution and local leadership - not just from councillors or mayors, but through the combined efforts of businesses, charities, headteachers and volunteers. There is a bright future for our towns, but it won’t be delivered topdown or ad hoc. We don’t need yet another competitive bid or funding potwe need our towns to be given the tools to get on with the job.

£ Adam Hawksbee is deputy director of the think tank Onward

The PM

Keir

Adam Hawksbee

Michael Gove announced new plans for urban centres like Cambridge and Leeds last week

‘PROTECTING PUTIN’S PALS’ Rishi Sunak has accused the Labour party of ‘protecting Russian jobs’ over their opposition to new oil and gas licenses in the North Sea.

accused

Starmer of putting UK jobs in jeopardy and make Britain more reliant on Russia for our energy supplies.

WE WANT TO HEAR YOUR VIEWS

LETTERS TO THE EDITOR

Owning your own health

[Re:From creche to healthcare, companies have renewed a social contract to staff]

Improving public health has for generations been a primary duty of the British state, and the pandemic placed health benefits as a luxury perk in the market for talent.

With the recent Health Foundation forecast putting the issue bluntly, there is a collective need to maximise access to personal health information. Education plays a key role in this

process, and many people and companies are oblivious to the many ways that they can take control of it. For one, there has been a real boom in wearable devices over the past 6 years among the British public, with many offering medical-grade vitals sensors ready to surface health insights right from your wrist.

However, as much as 54% of people are unsure what these monitors mean for them to make well-informed and actionable lifestyle adjustments. While employers and the state play a custodial role in healthcare provision, there needs to be greater awareness about personal health across the board.

Sylvia Smit

SCHOOL’S BACK IN CLASS Teacher’s agree on pay deal and end to strikes

Something is truly rotten at the heart of Ofgem and it is time for a complete overhaul

Greg Marsh

BRITISH Gas – a private company, remember, that exists solely in order to make money – posted record profits last week. The UK’s largest household energy supplier raked in £969m in the first half of 2023, compared to £98m in the same period last year.

Terrific news for Centrica shareholders who got roughly half a billion quid richer. Less palatable for its 12 million customers. A typical family has seen its bills double in the last three years, and 1 in 5 households are in fuel poverty –meaning they literally can’t afford energy bills without giving up other essentials.

Therapeutic though it may be to decry British Gas, most of their bumper profits were not down to corporate avarice but rather to the actions of Ofgem. By focusing on the easy target, we risk overlooking the true culprit lurking in the shadows.

EXPLAINER-IN-BRIEF: UNITED ARAB EMIRATES OIL GIANT GOES GREEN

Just as the UK government came under fire for announcing new plans for oil and gas licenses in the North Sea, the state energy company for the United Arab Emirates brought forward its net zero target.

Adnoc, which is one of the biggest oil producers in the world, said it would plan to be “net zero” by 2045 rather than 2050. The energy supplier also said it would cut methane emissions to zero by 2030.

The UEA, which is hosting the Cop28 climate summit in

October, has faced criticism for its continual reliance on heavily emitting industries - like oilwhile showboating about its green promises.

The chief executive of Adnoc, Sultan al-Jaber, will also chair the meetings in Dubai.

The firm will inject US$15bn into “decarbonisation initiatives” like carbon capture and storage, electrification and energy efficiency between 2023 and 2027. It promised further investments ‘in the coming months’ to meet the new targets.

No sooner had Covid-19 ended than the war in Ukraine caused wholesale unit costs to soar. Ofgem’s price cap meant energy suppliers operated at a loss. Many minnows failed as a result, and those that survived lobbied hard for support, threatening to leave the pitch altogether. Ofgem’s response was to increase the energy price cap on a “one-off” basis. British Gas by its own admission pocketed £500m as a result. But when does seeking to ensure market stability tip over into pandering? Suppliers will naturally posture when times are tough. A wise regulator, acting in consumers’ interests, must decide when to call their bluff. Ofgem’s inadequacies aren’t news. During the energy crisis we learned it had failed to police cowboys. Some, like Avro, were using customer deposits as working capital. Others, like Bulb, were woefully under-hedged and under-capitalised. When wholesale prices spiked, the tide went out and many suppliers were indeed swimming naked.

MPs acknowledged as much in a damning select committee report last year. “Ofgem has proved incompetent… over the last decade. It allowed suppliers to enter the market without ensuring they had access to sufficient capital, acceptable business plans, and were run by individuals with relevant expertise.” According to parliament’s Public Accounts Committee, Ofgem’s

poor oversight added an extra £94 to every household’s fuel bill.

We saw more of Ofgem’s true colours in May this year. Alongside its announcement of the July price cap, Ofgem revealed it had capitulated to industry lobbying by permitting energy companies to make even more money at households’ expense.

Under the plans, the element of the price cap that covers profit margin (EBIT) will increase from October from 1.9 per cent to 2.4 per cent. Knowing full well how bad this looks (and possibly how misguided it was), Ofgem tried to hide it. The fact this will add £227m to UK household bills was buried on page 88 of an obscure consultation document. Were it not for my colleague’s eagle eyes, we might have missed it altogether. It shouldn’t depend on attentive activists to police a regulator whose core mission it is to look out for consumers’ interests.

Then in March, when The Times exposed how British Gas was forcibly installing pre-payment meters, Ofgem tried to compel the journalist to reveal his sources rather than going after the baddie. It all adds up to a picture of a craven regulator, cowed by criticism, far too close to the industry it’s meant to regulate.

When 6 million UK households simply cannot afford to pay their energy bills, when complaints to the energy ombudsman are at a record high, and when price competition – the muchvaunted reason for privatising the market in the first place – has all-but evaporated, we need a competent regulator with teeth. We need one that robustly acts in the interests of hard-up householders. Instead, Ofgem is quietly lining the pockets of suppliers.

£ Greg Marsh is a cost-of-living analyst and the chief executive of Nous

Ofgem’s price cap has come under heavy fire after record energy profits

The National Education Union, the UK’s largest teaching union, said a majority - 86 per cent - of its members had voted in favour of the 6.5 per cent rise offered by the government, putting an end to the strikes of the last year.

MOTORING

TWIST AND SHOUT

Born in Birmingham, modified in Yorkshire, the Twisted Defender T110 TVS is a leftfield alternative to a Mercedes-AMG G63. John Redfern drives it

Iand noisy, it felt like a constant physical battle. At the time, I hated it.

Since then, I have developed a much greater appreciation for the classic Defender, warts and all. It remains like little else on (or off) the road, and I appreciate why it has such a dedicated following.

Thirsk-based Twisted Automotive understands this enthusiasm, and has spent two decades striving to improve the classic Defender without eroding its charm. This includes the option of a (London ULEZ-compliant) 2.3-litre four-cylinder turbocharged petrol engine, typically found under the bonnet of a Ford Mustang.

With 308hp and 350lb ft of torque, the new motor has a dramatic and hilarious effect on the Defender’s per-

PORSCHE

a standard Defender, the pace takes some adjusting to.

A six-speed manual gearbox is fitted, with the traditionally lengthy Defender gear shift and accompanying heavy clutch. Twisted is currently developing an automatic gearbox, but there is a real pleasure in the physical nature of using the manual.

As with the heavy steering, this is where Twisted has kept the quirks of the original Defender intact. Compared with a modern SUV, the TVS demands real effort and concentration to drive.

Twisted fits its own upgraded suspension kit to the T110. There are also huge six-calliper brakes at the front, with four-calliper stoppers at the rear. Like everything else, the brakes de-

PRICE: £186,000

ENGINE: 2.3 TURBO PETROL

POWER: 308HP

TORQUE: 350LB FT

GEARBOX: SIX-SPEED MANUAL

FUEL ECONOMY: N/A mand a physical effort, but they stop the Land Rover with ease. Such performance has not impacted upon the Defender’s off-road ability. Chunky BF Goodrich all-terrain rubber will work whatever the conditions, and the low-ratio transmission and differential lock are still fitted. This particular Twisted T110 is currently for sale, with a starting price of £155,000 plus VAT (£186,000). A lot of money for a classic Defender, you might rightly think, but the spec sheet for is as extensive as you would expect

seats. There is extensive sound deadening and a touchscreen multimedia system with a reversing camera, plus Apple CarPlay smartphone compatibility. Oh, and this Defender comes with a lockable gun safe that also has space for champagne flutes.

Twisted can offer a TVS engine conversion for an existing Land Rover more cheaply. Prices to add the 2.3-litre Ford engine to your own vehicle start at £46,500. Provided you can resist the temptation to dive further into the extensive range of tailored Twisted upgrades, that is.

Alternatively, there is also the potential to slot Twisted’s flagship TV8 General Motors-sourced 6.2-litre V8 engine under the bonnet, or go for a full electric conversion. For those with a

to £190,000 on an old Land Rover is impossible to justify. A new MercedesAMG G63 costs around the same, and delivers even more ferocious performance.

That misses the point of what Twisted is doing, though. The company prides itself on being ‘anti-ordinary’, catering to those who don’t want to follow the obvious route and are committed to the classic Defender.

With the Defender TVS, Twisted has managed to retain the spirit and character of the original, but with a morethan-healthy dose of extra performance. There’s certainly no more hate from me here.

John

Redfern

writes for motoringresearch.com

REVEALS ULTIMATE MODIFIED CAYMAN GT4 RS

THEPorsche 718 Cayman GT4 RS is already a pint-sized supercarslayer. Now an optional Manthey Kit, with enhanced aero and better brakes, stretches its potential still further.

The upgraded GT4 RS was developed by the 'Nordschleife specialists' at Manthey. Never heard of them? The German racing team has seven Nürburgring 24 Hours victories to its name, and has been majority-owned by Porsche AG since 2013.

As the top rung on the 718 Cayman ladder, the GT4 RS starts from £123,000, although we've seen 'flipped' cars advertised for twice that amount. The price for the Manthey Kit is still to be confirmed, but it will be sold

through UK Porsche dealers from December.

The first thing to note is that the Manthey Kit doesn't include any extra power. Its 4.0-litre naturally aspirated flat-six engine still develops 500hp at a heady 8,400rpm: good for 0-62mph in 3.4 seconds and a top speed of 194mph.

Instead, the improvements are mainly focused on aerodynamics. The front of the car incorporates new air curtains, wheelarch Gurney flaps and a carbon fibre undertray with built-in diffusers. At the rear, aerodisc wheels help reduce turbulence, while an 85mm wider spoiler can almost double downforce to 169kg at 124mph.

Further modifications by Manthey include 20 percent stiffer springs for

the coilover suspension and optional racing brake pads. You can also specify front and rear towing loops, in case it all ends in the crash barrier.

Inevitably, all this obsessive attention to detail leads to a Nürburgring lap-time. Wearing supersticky Michelin Cup 2 R tyres, the Manthey GT4 RS lapped the 'Green Hell' in 7min 3.12sec. That's 6.18 seconds quicker than the standard car, albeit still behind the latest Porsche 911 GT3 RS (6min 49.33sec).

Lastly, if you're less concerned about lap times and want even more emotional appeal, Porsche recently revealed the drop-top 718 Spyder RS. We'll be reviewing it right here next week.

THE PUNTER

Bill Esdaile previews day one of the Qatar Goodwood Festival

Emily Dickinson set to brighten up damp Goodwood

THERE aren’t many more exciting horses in training than Courage Mon Ami, who managed to win the Group One Gold Cup at Royal Ascot on only his fourth ever racecourse appearance.

The son of Frankel took the huge step up in trip in his stride and made it a perfect four from four, sparking memorable scenes in the winners’ enclosure with jockey Frankie Dettori riding at the meeting for the last time.

He will once again be partnered by Dettori who will be looking to the land the Al Shaqab Goodwood Cup (4.35pm) for a sixth and final time.

This is a well-trodden path for trainer John Gosden who managed to complete the Gold Cup-Goodwood Cup double in

the same season three times between 2018 and 2020 with Stradivarius.

There is no doubt that Courage Mon Ami is the one to beat, with his course win back in May and proven stamina both big ticks against his name.

The question mark surrounds his ability to handle the slower conditions with both his turf successes coming on a pretty quick surface.

There is no reason to suggest he won’t be equally as effective with some dig in the ground, it’s just a question of whether there is any value in his price at around 2/1 with his devastating finishing speed likely to be blunted.

His most obvious danger on paper looks sure to be Andrew Balding’s Coltrane who made him work hardest

of all to land the Gold Cup.

The six-year-old has unquestionably improved since finishing fourth here 12 months ago and looks set to run his race again.

He’s a best-priced 3/1 with William Hill and has at least proved himself effective with some dig in the ground.

However, there may just be a bit of value in taking the top pair on with the Aidan O’Brien-trained EMILY DICKINSON who will relish any more rain that falls.

O’Brien has won this prize three times in the past, most recently with Kyprios 12 months ago.

Despite her disappointment in the Group Three Levmoss Stakes at Leopardstown back in May, she got her season back on track with a promising

fourth behind the big two in the Gold Cup at Royal Ascot.

The ground would definitely have been too fast for her that day and the trip may just have stretched her a little too.

She then followed up with an easy victory earlier this month in the Group Two International Curragh Cup back on her favoured soft ground.

She can be backed each-way at 6/1 and that looks the value call with such an unsettled forecast.

If more rain does hit, another horse who will relish conditions is LONE EAGLE

Ralph Beckett’s five-year-old always saves his best runs for slower ground, as shown by his second at Chester in the Ormonde Stakes this season and success in the Cocked Hat Stakes here

a few years back.

fourth in the Gold Cup behind winner Courage Mon Ami

He was still in front at the two-furlong pole in the Gold Cup before his stamina gave way and the drop in trip and return to this ground will play to his strengths. There is every chance he will go forward again from his wide draw, and he looks the value play in the World Pool exotics with Emily Dickinson and Courage Mon Ami.

POINTERS

Emily Dickinson e/w 4.35pm Goodwood Lone Eagle e/w 4.35pm Goodwood Courage Mon Ami, Emily Dickinson, Lone Eagle (World Pool Quinella) 4.35pm Goodwood

Trust experienced Haatem in not-so Vintage renewal

JUVENILE races at this time of the year are difficult puzzles to work out as highly raced two-year-olds meet promising, unexposed types for what could be the very first time.

This year’s slightly underwhelming Group Two Vintage Stakes (3.25pm) is no different to the norm, but it looks like the experienced HAATEM is the one to side with at 3/1 with William Hill.

The Phoenix Of Spain colt has raced five times for trainer Richard Hannon, winning one and finishing second on his last start behind Aidan O’Brien’s future Guineas horse, City Of Troy, in the Group Two Superlative Stakes at Newmarket’s July Festival. Furthermore, the Bath maiden victor has good form at the track having powered through the line to finish third on debut in good-to-

soft conditions, similar to the ground they are expecting on day one of the Glorious meeting.

With the World Pool in operation for the first three days of Goodwood, playing him alongside Tom Clover’s WITNESS STAND in a Quinella looks like an interesting bet as the colt by Expert Eye was an impressive winner at Chester in late June and should handle any give in the ground.

Another who should appreciate any rain that falls at the West Sussex track is ALASKAN GOLD at around 8/1 in the British EBF 40th Anniversary Maiden Stakes (2.15pm).

By Kodiac, he was an expensive purchase at £200,000 from the Breeze-Up sales in April and made a promising debut at Nottingham on rain-softened ground 11 days ago.

Trained by Karl Burke, who has

fired out plenty of juvenile winners this year, he looks like a typical improver at double-figure odds.

POINTERS Alaskan Gold e/w

Goodwood Haatem 3.25pm Goodwood Haatem, Witness Stand (World Pool Quinella) 3.25pm Goodwood

Emily Dickinson (dark blue silks) finished

Bill Esdaile previews the rest of Tuesday’s action

HORSES for courses is a term often bandied around in racing, but it certainly rings true when it comes to John Quinn’s LORD RIDDIFORD

The eight-year-old, who takes his chance in the opening Coral Handicap (1.40pm), will be bidding to win this race for a third straight year and at the Qatar Goodwood Festival for a fourth time, all over the minimum distance of five furlongs.

His winning run on the Sussex Downs started back in 2018 when he took a Class Three handicap, but he couldn’t follow up 12 months later when stepped up to this Class Two level.

An impressive win on soft ground in 2021 off a mark of 88 was repeated off a pound lower mark 12 months ago and he arrives today lower still on 84.

Andrea Atzeni gets the leg up on the old boy for the first time and he will hope his draw in stall 15 against the stands rail is advantageous.

When the ground gets soft at Goodwood the stands side tends to be the place to be, but Lord Riddiford is a holdup horse, so he’ll need a bit of luck.

At around the 6/1 mark he looks a very fair each-way bet, but I’m also going to back EXISTENT who completely blew the start at Ascot on Saturday.

Stuart Williams’ five-year-old son of Kingman was narrowly beaten in the Group Three Palace House Stakes at Newmarket in April 2022 and was a good fourth in the Group Two Temple Stakes at Haydock just a

RIDDIFORD TO LORD IT OVER GOODWOOD RIVALS ONCE AGAIN

couple of months ago.

He is a on a fair handicap mark, handles soft ground well and can outrun his odds of 14/1.

I would put both those selections in a World Pool Quinella along with the likely favourite RAASEL who, like Lord Riddiford, is another Goodwood specialist.

In three visits to the picturesque track, he has won two and finished a neck second to Khaadem in last year’s Group Two King George Qatar Stakes. Mick Appleby’s six-year-old has yet

to get his head in front so far this season, but he hasn’t been running badly and he’s come down in the weights. Now on a handicap mark of 101, he shouldn’t be too far away under James Doyle. There are plenty of others with chances, but the three mentioned should give you a decent run for your money.

Charlie Johnston will be hoping to keep up the family tradition of saddling plenty of winners at this meeting and he looks to have a particularly strong chance in the closing six-furlong World Pool

British EBF Fillies' Handicap (5.35pm).

KITAI, a daughter of No Nay Never, is on a roll having won impressively at Carlisle on soft over seven furlongs two starts back, and then following up over six at Pontefract last month. That last victory moved her mark up to 92 and meant she could then be targeted at this 0-95 event.

Stable jockey Joe Fanning takes the ride and I expect him to have her well positioned at the front of the field and, as we all know, these Johnston horses can be very difficult to

pass, particularly at Goodwood. Funny Story has some decent form and is an obvious danger for the inform Ralph Beckett team, but he has to prove he can go on the ground.

POINTERS

Lord Riddiford e/w 1.40pm Goodwood

Existent e/w 1.40pm Goodwood

Lord Riddiford, Existent, Raasel (World Pool Quinella) 1.40pm Goodwood

Kitai 5.35pm Goodwood

Kinross can make up for last year’s lack of Lennox luck

GOODWOOD is a course well known for its hard luck stories, with horses often finding trouble as they attempt to come from the back of the field.

And so it proved in last year’s Lennox Stakes (4.00pm) when Frankie Dettori was caught against the rail aboard KINROSS and short of racing room while the eventual winner, Sandrine, quickened down the outside.

Had he had more luck, Kinross would

be aiming for his third successive win in this race, after landing the 2021 edition under Rossa Ryan.

He’s hard to oppose this year, with the wet weather meaning he will have the soft ground conditions he thrives on, while he now returns to his optimum trip of seven furlongs.

His close third in the July Cup when last seen looks the best form on offer and at around 11/8 he should go one better than last year.

St James’s Palace fourth ISAAC SHELBY is the obvious danger, as a horse with winning form over this trip on soft ground.

While he gets the three-year-old allowance, he will need to improve to beat Ralph Beckett’s runner under his optimum conditions, but he looks worth including in a World Pool Quinella with the favourite.

The Chesterfield Cup Handicap (2.50pm) looks a typically competitive

event but I’m keen to throw a few in another Quinella.

If there is a handicap snip in here it could be MILLEBOSC on the basis of his third in the French Derby two years ago. He should strip fitter for his recent reappearance at York and will handle the ground.

HAUNTED DREAM finished ahead of Millebosc last time and looks well drawn to go forward which should see him stay out of trouble.

Finally, throw in MOKTASAAB, who finished third in this race last year off a five-pound lower mark.

POINTERS

Millebosc, Haunted Dream, Moktasaab (World Pool Quinella) 2.50pm Goodwood Kinross 4.00pm Goodwood Kinross, Isaac Shelby (World Pool Quinella) 4.00pm Goodwood

Lord Riddiford (grey) will be aiming for a hattrick in today’s opening five furlong handicap

SPORT

RUGBY UNION

Ospreys to host URC fixture in London this year

MATT HARDY

WELSH United Rugby Championship

side Ospreys will play one of their domestic home fixtures in London next season, the club confirmed yesterday.

The Welsh region has not said where in the capital they will stage the URC fixture but they’re expected to announce the venue in the coming weeks.

It is understood that the side based out of Swansea would get the biggest financial return on staging a game in England by playing one of the league’s four South African sides – the Bulls, Stormers, Sharks or Lions.

Attendances have not been a strong point for the four Welsh regions across the last decade and, since the development of regions from local clubs, the move will be one which is hoped to kickstart a more regular event for the Ospreys.

OVAL AND ALL OUT

Broad gets fairy tale final wicket as England deny Australia win in superb Ashes

MATT HARDY

RETIRING Stuart Broad took a wicket with his final ever delivery in cricket as England took seven wickets in the last session to draw the Ashes.

Australia will return to the southern hemisphere with the famous urn but the 2-2 Ashes draw ensures they continue a run in England without a series victory which dates back to 2001.

Australia went 2-0 up after Test matches at Edgbaston and Lord’s before England halved the deficit at Headingley.

The fourth Test at Old Trafford was drawn to ensure Australia retained the Ashes but England levelled the series yesterday at the Oval.

With rain dampening the odds of a

result on the final day in south London, Australia needed 146 runs with seven wickets in hand after a rain delay to claim an historic series victory in England.

Travis Head fell to one of Moeen Ali’s three wickets in the session before Steve Smith was caught by Zak Crawley off England’s player of the series Chris Woakes’ bowling.

Mitchell Marsh was dismissed by Ali, who came out of retirement for this series, before Woakes disposed of Mitchell Starc.

Captain Pat Cummins was caught by

United agree record £900m 10-year deal with Adidas

MATT HARDY

MANCHESTER United have agreed a record extension with kit maker Adidas worth £900m through to 2035.

The brand will pay nearly £1bn to the club across a 10-year period, beating Chelsea’s 15-year deal worth £900m signed with Nike in 2017, subject to “certain adjustments”.

Manchester United’s last deal with the German brand was worth £750m over a decade.

“The relationship between Manchester United and Adidas is one of the most iconic in world sport,” said Manchester United’s chief executive Richard Arnold. “With its roots in the

1980s, our partnership has been reinvented over the past decade with some of the most innovative designs and technology in sportswear.”

Adidas chief executive Bjorn Gulden said: “Adidas and Manchester United are two of the most important brands in international football and it is very natural for us to continue our cooperation.”

Manchester United, who finished third in last season’s Premier League and qualified for the Champions League, could still be under new ownership at some point within this year with current owners, the Glazer Family, still in talks with various parties to sell the club.

England skipper Ben Stokes off the bowling of Ali before Broad came into play. The 37-year-old swapped the bails in Australia’s first innings and proceeded to get batter Marnus Labuschagne out next ball. Yesterday evening he did the same before dismissing Todd Murphy next ball. The perfect script crescendo was being written. And Broad –who hit the last ball he faced with the bat for six – got his 604th and final wicket with his last ever delivery in Test cricket, against Alex

Carey, to earn England a 49-run victory.

It was a fairy tale ending for Broad, England and an Ashes series that has delighted for six weeks –albeit neither side managed to win the series.

“Coming into this series, if you looked back 14 months ago, to bounce back from 2-0 would have been tough for any team,” Stokes said. “What a series to be part off, it’s what test cricket needed.

“I know we’ve been vocal about it but this series has captivated so many new fans and attracted new fans to the game.” And on the appetite for the next Ashes in 2025? “It’s hard to lose an appetite when you love Test cricket as much as I do,” he said.

Ali confirmed a second retirement from Test cricket at stumps yesterday.

There have been talks in the past over a merger between the region and London’s leading Championship club Ealing Trailfinders.

City A.M. approached the Ospreys over the venue but they did not wish to comment on the location.

The two Premiership sides in London – champions Saracens and Twickenham side Harlequins – have stadiums with capacities of 10,000 and 14,800 respectively.

The Ospreys could also play at the 17,250 capacity Brentford Community Stadium, former home to London Irish, or Ealing’s smaller ground in west London.

“Today we’re also confirming that Ospreys will take one game on the road to London in our 202-24 season,” the club said in a statement confirming the financial make-up of their season tickets on Monday.

“When fixture and venue details are announced, Season Members will get 50 per cent off tickets and an exclusive priority window to purchase.”

Interestingly, season ticket holders will still need to purchase tickets for what organisers will list as a home United Rugby Championship match.

Leicester City fined £880k by competition watchdog

THE Competition and Markets Authority has confirmed the sanctions it has imposed on Championship club Leicester City and JD Sports as part of a case relating to shirt restrictions.

A fine of £880,000 has been imposed on the 2015-16 Premier League champions while JD’s decision to report the conduct to the CMA sees them benefit from immunity.

The investigation was launched in autumn 2021 with a later CMA report stating that the two organisations “colluded to restrict

competition in the sales of Leicester City-branded clothing, including replica kit in the UK”.

“A fine of £880,000 has been imposed on Leicester City Football Club Limited...,” the CMA said on Monday. “The penalty includes a discount to reflect the fact that these parties have settled the case with the CMA.

“JD Sports reported the conduct to the CMA and benefits from immunity to any fine under the CMA’s Leniency programme.”

Leicester begin their Championship campaign at home to Coventry having been relegated from the Premier League last year.

FOOTBALL

MATT HARDY

FOOTBALL

CRICKET

Hundred has future if it finds place in game

YOU thought it was all over… well it isn’t. Sure the Ashes concluded yesterday in sublime fashion in south London but already eyes have turned to the reason the iconic series was shifted forward and away from the peak of British summer: The Hundred.

Back again, some had hoped the cricket format – which consists of 100 balls per side and only played in England and Wales – would fade away into oblivion but cricket chiefs on these shores have backed their radical idea and its existence goes on.

Eight teams in seven cities, each with a male and female outfit, compete across this month ahead of finals day at Lord’s.

This year will be the competition’s third with Oval Invincibles women –based at Surrey – looking for a tat-trick of titles – and Southern Brave or Trent Rockets’ men aiming for a second title.

FOOTBALL

England must bring ruthlessness to World Cup if they reach last 16, says Matt Hardy

ENGLAND’S Lionesses are on the brink of qualifying for the last 16 at the Fifa Women’s World Cup but they’re not there yet, and today’s opponents China can be their undoing.

But Sarina Wiegman’s side are currently unbeaten in the tournament –which is being staged in Australia and New Zealand – after 1-0 victories against both Haiti and then Denmark and they are overwhelming favourites to beat China at noon today.

Having travelled Down Under without the likes of Beth Mead and Leah Williamson, and losing Barcelona playmaker Keira Walsh for at least two games, though, it’s not necessarily a case of firing five goals past the Steel Roses and waltzing into the knockouts.

Should England top Group D, they’ll take on Nigeria in Brisbane’s Suncorp Stadium. If they finish behind Denmark or China but still qualify, they’ll line up against Australia in the last 16 in Sydney.

A YEAR ON

Yesterday marked a year since England claimed the European Championships against Germany, and Wiegman’s record in major championships speaks for itself.

She took the job in 2020 having won the Euros in 2017 with the Netherlands and reaching the World Cup final with the same team in 2019.

The Dutchwoman is unbeaten in major tournaments with the Lionesses and has been known to be a tactical master of the game.

But we have seen shocks in this tournament; the dumping of New Zealand in the group stages came as a surprise to the co-hosts, Nigeria securing a last16 spot ahead of Canada, and Colombia beating Germany on Sunday.

This World Cup has shown that blips can happen, and Wiegman will be conscious of China and their ability to stay in a match until the very final minute this afternoon.

The Lionesses needed a retaken Georgia Stanway penalty to beat a stubborn Haiti side and an absolute stunner from Lauren James to topple a defiant

London Spirit, Birmingham Phoenix, Manchester Originals, Northern Superchargers and Welsh Fire are all aiming for a first title in one of the two competitions.

It’s an interesting concept, that’s for certain. And though it was in the pipework for a number of years, few can deny it earned its spot in the cricketing calendar as the noisy neighbour of the existing three formats when England and Wales Cricket Board chiefs saw the barmy stands of Lord’s during the 2019 one-day World Cup final.

Here you had the Home of Cricket, often looked down upon by the casual England fan for being out of reach, fenced off, for the few – some would

argue that hasn’t changed – instead rowdy and raucous, with chanting, cheering and the occasional painful broadcast of Neil Diamond’s adopted British sporting anthem Sweet Caroline.

If a party game was possible there –disco cricket as it were – it was possible anywhere.

And so it has been proven. There are record numbers of families, women and new fans watching cricket because of The Hundred; enough to outnumber the traditionalists who have boycotted the competition.

And the format, with men’s and women’s matches back-to-back, has undoubtedly exposed fans to more names and experiences.

For the players, too, it has developed a huge level of exposure.

Issy Wong, a 21-year-old English bowler, lit up the tournament last year and earned a huge contract in the inaugural Women’s Premier League –India’s sister competition to the IPL – where she got an iconic hat-trick.

And India will be watching this time around with the subcontinent showing the competition on television.

It’s a weird format, and no one says it is perfect, but it is at least a point of difference from other competitions.

TIME TO BRING

And while there are a number of Twenty20 leagues popping up around the world, notably in South Africa, the UAE and the United States, none do it quite like The Hundred.

But maybe that’s The Hundred’s issue, it’s too unique to entice the world. Maybe that’s the point of The Hundred too.

Despite past statements suggesting the plan would be to export this competition around the world, what if it simply became a vehicle to drive kids and families into existing formats of the sport?

The Hundred can be a gateway for thousands into cricket so as it gets underway today, after a pulsating summer of Test matches, that must not be forgotten.

Issy Wong has been a star born from The Hundred

WHAT COACH WIEGMAN SAYS PRE-MATCH

ON KEIRA WALSH

FEAR FACTOR

“Keira is OK. We know as not an ACL. We cannot give you anymore information. We have a strong enough team. Every game we want to be at our best. We will find solutions.”

ON MAKING MOST OF POSSESSION

“We had moments in both games where we played really well and moments where we lost the ball too much. We want to keep the passing game in a good place and try to create chances to score goals. That’s the main thing – to keep control of the game as much as possible.”

ON CHINA

“I think it’s a different team than it was two years ago [when Wiegman faced them as manager of the Netherlands]. It’s a different team, a different coach. They can play a direct style of play. I think they are very well-organised.”

Denmark outfit. Results matter more than goals scored but should this group somehow come down to goal difference, England could find themselves in a muddle.

And if in later stages of the tournament

down in Australia and New Zealand they need penalties or a late score, their ability so far to convert chances into goals won’t offer too much confidence.

MUST SHOW RUTHLESSNESS

The mood around England at the moment seems to be one of stability; they’re winning so there’s little end of days worry but they’re not winning by the margins some

That is, in part, down to the quality of the opposition; there have been two score lines of 6-0 in this competition, Norway and Germany achieved the

POTENTIAL ROUTE TO THE FINAL

IF THEY WIN GROUP D

Last 16: Nigeria, 7 August, Brisbane

QF: 12 August, Sydney

SF: 16 August, Sydney*

F: 20 August, Sydney

IF GROUP D RUNNER-UP

Last 16: Australia, 7 August, Sydney

QF: 12 August, Brisbane

SF: 16 August, Sydney*

F: 20 August, Sydney

*The winners of the other semi-final, in the other half of the draw, will need to travel from Auckland to Sydney for the final.

feat, but nothing close to the 13-0 win by the eventual winners United States in 2019.

But they’ll be conscious of showing that they can grow into the tournament, otherwise the aura they earned from winning the Euros will hold little value going forwards.

Due to the segregated draw used in this World Cup – decided due to the two co-hosts being a fair distance apart – England will not leave the eastern coast of Australia between now and any potential final, unless they get dumped out.

So it’s a combination of Brisbane and Sydney awaiting England after today’s clash in Adelaide. But before they and Sarina Wiegman even think about progressing through the knockouts, they’ve got to be ruthless today against China.

And that’s no easy feat.

It has been great for new fans but competition must find new point of difference after Test resurrection, writes Matt Hardy

has tactical nous

They’ll be conscious of showing that they can grow into the tournament