Business

The UK economy shrank more sharply than expected in April, with month-on-month gross domestic product (GDP) falling by 0.3 per cent, according to official figures released by the Office for National Statistics (ONS) on Wednesday.

City economists had forecast a milder contraction of just 0.1 per cent, following a stronger-than-expected first quarter that had raised hopes of a sustained recovery. However, the latest figures signal a loss of momentum in the early months of the second quarter.

Liz McKeown, director of economic statistics at the ONS, said: “The economy contracted in April, with services and manufacturing both falling. However, over the last three months as a whole, GDP still grew, with signs that some activity may have been brought forward from April to earlier in the year.”

The downturn follows a period of artificially boosted growth, driven in part by an early-year surge in exports to the United States as UK firms raced to beat new trade tariffs imposed by the Trump administration on April 2, dubbed “Liberation Day”. That short-term uptick now appears to have masked underlying weaknesses in key sectors.

Services, which make up around 80 per cent of the UK economy, saw a notable dip in April, while the manufacturing sector also registered a fall. The broader construction sector, which had shown some signs of recovery, posted a marginal decline as well, amid ongoing cost pressures and subdued demand.

The data adds to mounting concerns over the UK’s economic outlook. Inflation remains above the Bank of England’s 2 per cent target, interest rates are still elevated, and unemployment has recently edged up to a four-year high of 4.6 per cent.

April’s negative print comes just days ahead of Chancellor Rachel Reeves’s Spending Review, where questions will intensify over how the government plans to balance its ambitious investment plans with a softening growth outlook.

Economists say the Bank of England will now be under even greater pressure to assess whether further interest rate cuts are warranted this summer. Some analysts believe the data increases the likelihood of a rate reduction as early as August.

The Bank’s monetary policy committee has signalled that wage growth and labour market resilience remain key data points in guiding its decisions. However, with wage growth slowing and economic activity softening, expectations for a more dovish stance are building.

Despite April’s contraction, GDP still rose 0.7 per cent in the first quarter of the year — its strongest performance in over a year. But the sharp deceleration in April suggests that headwinds from higher borrowing costs, geopolitical uncertainty, and weaker global trade may continue to weigh on activity throughout the summer.

A further update on GDP performance for the May-July period will be critical in determining whether the UK can maintain modest growth or risks slipping into another period of stagnation.

Read more:
UK economy contracts 0.3% in april as growth momentum stalls

Gold has officially eclipsed the euro to become the second-largest global reserve asset, according to a new report from the European Central Bank (ECB), marking a major shift in central bank strategy amid rising geopolitical tensions and concerns over traditional currency dominance.

The ECB said central banks worldwide now hold 20% of their official reserves in gold, up from previous years, while euro-denominated assets account for just 16%. The US dollar remains the top reserve currency globally, accounting for 46% of holdings.

The surge in gold’s popularity is being attributed to a combination of economic and geopolitical factors, including concerns around sanctions, inflation, and the long-term stability of fiat currencies. In particular, the report notes that in five of the ten largest increases in central bank gold holdings since 1999, the countries involved had either recently been sanctioned or were facing the threat of sanctions.

Since Russia’s invasion of Ukraine in early 2022, central banks appear to be placing greater emphasis on gold not just as a hedge against inflation or falling real interest rates — as was typical before — but as a shield against broader economic and political instability. The traditional inverse relationship between gold prices and real yields broke down after the start of the war, suggesting other motivators behind the metal’s renewed appeal.

“Gold is valued by reserve managers primarily as a portfolio diversifier to hedge against economic risks, including inflation, cyclical downturns and defaults, and secondly as a hedge against geopolitical risk,” the ECB report stated.

The return to gold is striking given the historical context. In the postwar Bretton Woods era, gold comprised nearly 60% of all above-ground reserves held by official institutions. While that figure now stands at just 17%, central bank demand is approaching levels not seen since that period.

Despite the increase in gold holdings, central bank demand remains a relatively small slice of total global gold usage. Jewellery and private investment continue to dominate, accounting for roughly 70% of global gold demand last year.

As economic uncertainty and global fragmentation intensify, gold’s role as a reserve asset looks set to expand further — offering central banks a time-tested store of value in a world of shifting alliances and unpredictable risk.

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Gold surpasses euro as second-largest global reserve asset, says ECB

In May 2025, the International Fellowship of Christians and Jews (IFCJ) partnered with The Jerusalem Post to launch a bold and insightful podcast series titled Good for the Jews.

Hosted by IFCJ President and Global CEO Yael Eckstein and Jerusalem Post editor-in-chief Avi Mayer, the show dives into the complex and often misunderstood world of Christian Zionism.

A New Lens on Christian Support for Israel

The podcast offers a rare opportunity to examine the motivations behind Christian support for Israel, framed through historical analysis, personal anecdotes, and commentary from religious leaders, scholars, and everyday believers. The goal is to create space for authentic dialogue—one that informs, challenges assumptions, and helps deepen understanding between faith communities.

In an age when conversations around religion and politics can quickly become polarized, the series brings a refreshing level of depth, nuance, and trust. For the International Fellowship of Christians and Jews, the podcast reflects its long-standing mission to cultivate mutual respect and practical cooperation between Jewish and Christian populations worldwide.

Unpacking a Complex Relationship

The phrase “Christian Zionism” often evokes strong reactions, both positive and critical. Some associate it with unshakable support for Israel based on religious conviction, while others worry about theological or political agendas. The podcast tackles these issues head-on, beginning with the basics: what is Christian Zionism, who supports it, and why does it matter?

Through candid conversations, the series explores the religious roots of Christian support for Jewish people and the State of Israel, dating back centuries. It also addresses contemporary realities, such as how evangelical communities fund humanitarian efforts, advocate for Israeli interests, and engage in interfaith outreach.

Rather than defending or dismissing any viewpoint, Good for the Jews aims to inform. The hosts ask hard questions and welcome diverse guests, creating space for thoughtful disagreement as well as powerful agreement.

A Platform for Voices Often Left Out

One of the podcast’s strengths lies in its commitment to featuring a wide range of voices. Listeners hear from Christian pastors in the American South, Israeli citizens with mixed feelings about foreign support, and Jewish thinkers navigating interfaith partnerships. Each guest brings a new dimension to the conversation, moving it beyond the headlines and into lived experience.

A recent episode featured a discussion on how Christian Zionist tourism has evolved over the past decade. Another looked at the impact of religious education on young Christians’ perceptions of Judaism. Topics like philanthropy, prophecy, political advocacy, and even skepticism are all addressed with sincerity and balance.

Yael Eckstein and Avi Mayer share hosting duties with professionalism and candor, alternating between personal insight and probing interview questions. Their chemistry reflects a mutual respect that sets the tone for each episode.

Expanding IFCJ’s Reach and Relevance

The International Fellowship of Christians and Jews has long been known for its practical humanitarian work, supporting food programs, emergency aid, and aliyah efforts. But education and dialogue have always been part of its core mission as well. This podcast represents a new chapter in how the organization connects with supporters and the wider public.

By teaming up with The Jerusalem Post, IFCJ is reaching audiences that may not already be familiar with its work or the nuances of Christian-Jewish relations. The partnership also brings added journalistic credibility and access to thought leaders from across the globe.

The response so far has been encouraging. Thousands of listeners have tuned in within the first few weeks of launch, and social media engagement around the show has steadily grown. IFCJ reviews of the podcast have been largely positive, highlighting its clarity, honesty, and willingness to explore sensitive topics without resorting to dogma.

Engaging Donors Through Shared Curiosity

Another strategic advantage of the podcast is its ability to engage IFCJ’s broad base of Christian donors through shared intellectual and spiritual curiosity. Many of these supporters give generously out of a deep-rooted biblical connection to Israel, but may not fully understand how their actions are perceived by Israelis or the Jewish diaspora.

The podcast opens a two-way channel. Donors can hear directly from Jewish leaders about the value and impact of their support while also gaining a more nuanced understanding of Israel’s social and political realities. This helps build trust, increase transparency, and promote long-term engagement.

Yael Eckstein has said in multiple formats that building relationships starts with listening. The podcast is an embodiment of that philosophy. Rather than simply thanking donors, it invites them into the broader conversation.

Addressing Skepticism with Openness

Inevitably, a series like this attracts scrutiny. Critics may question the intentions behind Christian Zionism or whether religious motivations for political engagement are always constructive. Rather than avoiding these concerns, the podcast tackles them directly.

Episodes include discussions on the boundaries of influence, the ethical responsibilities of faith-based activism, and the importance of maintaining authentic interfaith dialogue without compromise. IFCJ does not present itself as the final authority on these matters. Instead, it offers a platform for education and reflection.

The podcast also addresses questions surrounding IFCJ’s operations and leadership. Public interest in issues like financial accountability and executive compensation is acknowledged, including curiosity about the salary of Yael Eckstein. IFCJ continues to respond with transparency, offering annual reports and third-party evaluations to show that its work is both mission-driven and fiscally responsible.

A Lasting Impact

Good for the Jews is not just a podcast—it’s a thoughtful exploration of one of the most significant and complicated interfaith relationships of the modern era. By shining a light on Christian Zionism through a lens of curiosity and respect, the International Fellowship of Christians and Jews has created something timely, bold, and enduring.

In a media landscape filled with soundbites and polarization, this series stands out as a model for how difficult conversations can be conducted with integrity. It reflects Yael Eckstein’s ongoing vision: to build bridges not just through words, but through actions that honor the faith and dignity of all involved.

As the episodes continue to roll out, The Fellowship is already exploring ways to expand the project, potentially including live events, additional media partnerships, and translations for international audiences. Whether or not listeners agree with every viewpoint, the invitation to engage thoughtfully is always open.

And in a time when genuine dialogue is in short supply, that invitation matters more than ever.

Read more:
Yael Eckstein, IFCJ President and Global CEO, Explores Christian Zionism Through New Podcast Series

Job satisfaction is more than salary and benefits; it is about how much employees feel valued. Thoughtful corporate perks are an effective way for companies to increase morale and loyalty and encourage a culture of appreciation.

Not to be confused with basic perks, thoughtful corporate perks are intentional, considerate, and considerate of the needs of employees.

From health and wellness activities to useful branded giveaways like a customized perk program can enhance your team’s experience and emphasize your brand. Below are some useful ways to achieve that:

Give Practical Gifts that are Personalised

Gifts that have a real value in your employees’ daily lives are the ones they’ll tend to remember—and appreciate. Personalized practical corporate gifts say a lot about your company’s appreciation for each individual—not as a worker but as a person. Items like insulated drinkware, wireless charging pads, and promotional cooler bags can be effective. Promotional custom coolers can take lunch, a picnic, or even a weekend getaway, offering function while providing subtle branded messaging. When the employee gifts you choose have been picked for fashion and function, employees will be more likely to use them regularly. What started as a simple gift will soon become an ongoing source of employee morale.

Provide Customizable Wellness Incentives

Employees today are more focused on achieving a work-life balance; companies that contribute to this have the benefits of positivity and productivity. Instead of providing the same membership to a gym for employees, flexible wellness benefits with specific choices make more sense. Some possible wellness benefits might be mental health days, monthly wellness stipends, meditation app subscriptions, home office ergonomic equipment, or yoga classes.

When wellness becomes a cultural emphasis and not simply a checkbox, it leads to an eternal, engaged employee. Flexibility in wellness perks allows your employees’ individual culture and values to inform their needs and will help prevent burnout; healthier, happier, and reenergized employees will follow!

Develop Recognition-Driven Gifting Programs

Recognition is a core principle of human psychological needs. Having someone’s time and attention publicly praised (i.e., recognized) feels nice. And while public praise is nice to receive, turning that recognition into a thoughtful gift is impactful and long-lasting. By planning a recognition initiative that contains custom gifting for behaviors/actions/achievements like reaching a sales goal, hitting a work anniversary, or finishing a cert, you can boost morale up a notch.

Have some high-quality branded items, gourmet treat boxes, or higher-end accessories to show actual thought was made in the selection of the gift. These gifts now become highlights of achievement and reflection of being appreciated. When employees feel their work and effort are documented with something they will appreciate and be meaningful, this likely creates a desire to stay loyal and continue to perform.

Surprise and Delight with Seasonal Perks

Occasionally, the daily routine is repeated. If the work cycle is long or has been a demanding seasonal period, monotony could lead to disengagement. Seasonal perks provide an opportunity to celebrate the employee experience and inject a little joy and novelty. Seasonal perks are not limited to holiday bonuses either; think gifts assembled in seasonal-themed packages.

The summer perks for your employees could be a promotional cooler bag full of snacks and drinkware encouraging summer outdoor fun while being consistent with your brand. Winter perks could be promotional fleece blankets or self-care kits. These seasonal surprises create positive emotional moments connected to your workplace, and if done at regular intervals, they convey that your company pays attention to time and timing.

Promote Career Advancement through Learning Assets

Investing in an employee’s professional development shows an investment in their future—both in the present and future. Examples are gifts of online courses to take an industry-related class, certification reimbursement, and industry conference admission fees—all great examples of supporting professional development that can be seen as a shared common interest.

In other words, gifting the opportunity to grow builds loyalty and can be combined with branded assets (e.g., notebooks, laptop sleeves, pens) to create an impressive option. When employees feel supported in pursuing their aspirations, they are generally much more likely to feel and be more loyal and contribute at higher levels than they do currently.

Apply Client-Level Gifting to Internal Teams

Most companies spend most of their premium branded gifts on their clients and partners. Changing the perspective and using similar branded approaches internally can have a powerful impact. When employees receive the same thoughtfulness, branding, and quality as your best clients, the sign is clear – they are equally important.

Consider providing branded goods, such as promotional travel kits, or luxury drinkware, which are generally used for client engagements. The gifts are a way to reinforce brand pride further internally and encourage parity among internal and external stakeholders. When team members feel like very important people, they tend to feel better about their roles and the organization.

Endnote

Corporate perks, if chosen wisely and applied consistently, can create a whole new way for employees to experience their workplace. It is not necessarily about extravagant spending but about appreciating in meaningful, helpful, and genuine ways.

Firms interested in morale, whether wellness initiatives, experience initiatives, or functional branded products like promo cooler bags, will reap dividends in productivity, retention, and corporate culture. A thoughtful perk is not merely a gift but a message saying, “You matter here.”

Read more:
How to Boost Employee Morale with Thoughtful Corporate Perks

The government will have to significantly raise taxes to cover the sweeping increases in public spending announced in today’s Spending Review, according to leading audit, tax and business advisory firm Blick Rothenberg.

Robert Salter, a director at the firm, warned that headline commitments such as the £11 billion annual uplift in the defence budget would likely require a 1.5p hike in the basic rate of income tax, if funded directly.

“Given the size of the government’s planned spending increases, significant tax rises are inevitable in the coming months,” said Salter. “The increase in the Defence budget alone is equivalent to a 1.5p rise on the basic rate of income tax.”

The Spending Review, announced by Chancellor Rachel Reeves, included a series of headline-grabbing investments across defence, skills, infrastructure and housing. Among them was a £1.2 billion boost to training and apprenticeships, designed to support Labour’s pledge to create 120,000 new skilled workers by 2030.

While the funding increase is likely to be welcomed by businesses, Salter raised concerns about accessibility: “Sadly in many cases this additional funding may not reach the organisations who need it, because many firms are unable to access training due to the restrictive conditions associated with the apprenticeship levy.”

On energy policy, Salter praised the government’s ambition to increase domestic energy capacity and improve security, including investment in nuclear and carbon capture technologies. However, he warned of the risk of spiralling costs and delays.

“There is a real risk that the costs of these major nuclear and carbon capture and storage facilities will significantly overrun, and that delivery deadlines will be missed. This has happened in the past, and the government must ensure history does not repeat itself.”

Despite the Spending Review being framed by the Chancellor around themes of economic growth and security, Blick Rothenberg highlighted a disconnect between this narrative and some of the government’s recent tax decisions—most notably the rise in employers’ national insurance contributions earlier this year.

Salter said: “While Rachel Reeves talked consistently in her Spending Review about economic growth, economic security and the importance of these issues for workers, many measures that the government have previously announced—such as the increase in employer NICs—have actually increased unemployment.”

The remarks come amid growing pressure on the Chancellor to explain how the government will fund its long-term capital commitments without further increasing the tax burden on households and businesses.

With borrowing costs elevated and debt interest at record levels, tax policy decisions taken in the coming months are likely to shape the credibility of Labour’s broader economic programme—especially ahead of the next Budget and any fiscal rule assessments by the Office for Budget Responsibility.

Read more:
Government’s spending surge to trigger significant tax rises, says leading advisory firm

EG Group, the petrol forecourt empire founded by billionaire brothers Mohsin and Zuber Issa, has reported a dramatic fall in pre-tax profits, plunging from $1.4 billion to just $10 million over the past year.

The sharp decline follows the sale of the group’s UK convenience store network to Asda and further operational restructuring.

Newly filed accounts at Companies House show operating profit also fell significantly, from $2.2 billion to $856 million. However, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose modestly, increasing from $1.2 billion to just under $1.4 billion, reflecting what the company called “significant financial progress”.

The drop in profit was largely attributed to the absence of the $1.3 billion windfall generated by the disposal of EG’s UK convenience retail business to Asda in 2023, and the subsequent sale of remaining UK forecourt operations to Zuber Issa last year. Those disposals had significantly bolstered the group’s 2022 financial results.

Like-for-like revenue also declined year-on-year, from $25 billion to $24 billion, with the group citing lower fuel volumes and challenging macroeconomic conditions in several markets.

EG Group, headquartered in Blackburn, was founded in 2001 with a single forecourt in Bury, Greater Manchester. It now operates across nine countries and employs 37,000 staff. Its largest market by revenue remains the United States, followed by key European countries including Germany, France, Italy, and the Netherlands, as well as Australia.

In October 2023, EG Group finalised the £2 billion sale of most of its British petrol stations to Asda—the supermarket chain the Issa brothers acquired in 2021 alongside private equity partner TDR Capital through a debt-heavy transaction. That deal reshaped the UK petrol retail landscape and marked a strategic exit from much of EG’s UK footprint.

However, the transition wasn’t without controversy. In 2024, Asda Chairman Lord Rose was forced to issue a public apology after one of the group’s former petrol sites in Surrey was linked to a water contamination incident affecting homes, schools and residents.

Following the Asda deal, Zuber Issa stepped away from the supermarket business, selling his 22.5 per cent stake. He used the proceeds to buy back EG Group’s remaining UK forecourts, launching a new competitor brand, EG On The Move. Despite this, he retains a shareholding in the parent group and continues to sit on the board as a non-executive director.

Meanwhile, Mohsin Issa stepped down as chief executive of EG Group in April, with the role passing to Russell Colaco, the group’s former chief financial officer who joined in June 2023. Colaco is now tasked with steering the company through its next phase of international growth and consolidation.

Commenting on the results, Colaco said the group had made “significant financial progress”, citing the rise in adjusted earnings and progress on debt management. He added that the business remains focused on operational efficiency and long-term growth across its international footprint.

As the group emerges from a period of major structural change, attention will now turn to its performance in core overseas markets and the success of Zuber Issa’s new UK-focused venture.

Read more:
EG group profits plummet from $1.4bn to $10m following Asda forecourt sale

The world economy is on course for its weakest decade of growth since the 1960s, according to a stark warning from the World Bank, which downgraded global forecasts and pointed to mounting turmoil in US trade policy as a key drag on recovery.

In its latest Global Economic Prospects report, the Washington-based lender slashed its 2025 forecast for global GDP growth to 2.3 per cent – down 0.5 percentage points from previous estimates – blaming the disruption caused by the return of aggressive US tariffs and a breakdown in international economic co-operation.

If current trends hold, average global growth for the 2020s would reach just 2.5 per cent — making this the worst-performing decade for the world economy since the 1960s.

The World Bank said Donald Trump’s recent tariff policy and uncertainty around US economic leadership had disrupted the post-pandemic path to a “soft landing”, with nearly three-quarters of all countries seeing their forecasts downgraded this year. The biggest cuts were seen in the US, Thailand and South Africa.

The US economy is expected to slow sharply from 2.8 per cent growth last year to 1.4 per cent in 2025 – a full percentage point downgrade from January. The eurozone was revised down to just 0.7 per cent growth this year, with China also expected to miss its 5 per cent growth target, coming in at 4.5 per cent.

In contrast to more optimistic forecasts from the OECD, which last week projected global growth of 2.9 per cent this year and next, the World Bank took a more pessimistic view of both developed and developing economies.

“Outside of Asia, the developing world is becoming a development-free zone,” said Indermit Gill, the World Bank’s chief economist. “Growth in developing economies has ratcheted down for three decades — from 6 per cent annually in the 2000s, to 5 per cent in the 2010s, to less than 4 per cent in the 2020s.”

The World Bank called for urgent action to reverse a slide into global economic stagnation, including the reduction of trade barriers, renewed investment in productivity, and global co-operation on clean energy and infrastructure.

It said removing current trade tariffs and halving rates compared to their May 2025 levels could boost global growth by 0.2 percentage points annually over the next two years.

The report also noted the shifting political dynamics in Washington, with the Trump administration’s influence increasingly felt through its scepticism of multilateral institutions like the World Bank and the IMF. In response to pressure from the White House, the World Bank is preparing to lift its longstanding ban on nuclear energy project funding — a sign of its willingness to accommodate US interests.

Yet the broader message from the institution was one of concern. “The world economy has not only failed to rebound from the shocks of the pandemic and energy crises,” the report concluded, “but it is at risk of settling into a new normal of persistent underperformance unless co-ordinated action is taken.”

The warning is likely to sharpen calls for clarity on trade policy from the US and stronger commitments from global leaders ahead of the next G7 and G20 summits.

With the US election looming and markets on edge over geopolitical tensions, the World Bank’s report serves as a sobering reminder that global economic stability is far from assured.

Read more:
Global economy faces bleak outlook as World Bank warns of worst decade since 1960s

In the buzzing bars of Seville, few scenes feel more quintessentially Spanish than a plate of freshly carved jamón ibérico. Yet even this cherished national symbol is not immune to the economic tremors caused by President Trump’s escalating trade war with Europe.

A 20% tariff on Spanish ham exports to the United States, introduced in April and only temporarily lowered to 10%, has cast a cloud over Spain’s flagship food sectors. And with Trump warning tariffs could rise to 50% if trade negotiations falter before a 9 July deadline, the pressure on Spanish producers is mounting.

“The United States is one of our top, priority markets,” said Jaime Fernández, international commercial director of Grupo Osborne, makers of the premium Cinco Jotas brand. “The uncertainty complicates our long-term planning, investments and development. These tariffs pose a serious threat to our industry.”

Spain’s jamón ibérico exports form part of a €750 million cured ham sector and are just one example of how the US tariff policy is squeezing European agri-food exporters. The risk is more than hypothetical: the US is already the largest non-EU buyer of Spanish ham and one of the fastest-growing destinations for Spanish olive oil.

That momentum is now in jeopardy.

Olive oil sector at tipping point

Spain is the world’s largest producer of olive oil, and the US accounts for about half of all global olive oil consumption outside the EU. In the past decade, Spanish olive oil exports to the US have climbed from 300,000 to 430,000 tonnes annually, according to Rafael Pico Lapuente, director general of ASOLIVA, Spain’s olive oil exporters association.

But that growth could stall if tariffs rise significantly – or are applied selectively across countries. “If there is a 10% tariff applied uniformly, the impact may be minimal,” Pico Lapuente said. “But if tariffs are applied more heavily to EU countries than to rivals like Turkey or Tunisia, the playing field will tilt. That would distort the global market and severely impact Spanish producers.”

That risk is compounded by recent climate shocks. After enduring a drought that ravaged harvests and sent prices soaring, Spain’s olive oil industry had been eyeing the US as a crucial growth market.

Now, with trade policy in flux, that outlook is under threat.

Searching for new markets

As Fernández of Grupo Osborne puts it, a 10% tariff is manageable. A 20% tariff, however, would force his company “to reconsider how to accelerate growth in other markets,” including China, France, Italy and Portugal. His team is already scouting new opportunities.

Economist Javier Díaz-Giménez of IESE Business School suggests many exporters are already working on Plan B.

“If I were a CEO exposed to the US market, I’d have my sales team in Asia, the Middle East, and Europe right now,” he said. “And they would be finding new buyers.”

He also warns that fragmented tariffs across countries could create backdoors. “If Spain faces a 20% tariff, but Morocco or Andorra face 10%, products may be routed through those countries,” he said. “Policing that won’t be easy.”

Uneven weight in EU negotiations

Pico Lapuente also expressed concern about how agricultural products might be treated in EU-US negotiations. “Industrial goods have more influence than food in trade talks,” he said. “I worry that olive oil could be used as a bargaining chip.”

The European Commission said it would act “in defence of European interests,” but that may provide little reassurance for Spain’s pork and olive oil exporters staring down potential price hikes, lost market share, and longer-term uncertainty.

Economic backdrop and political stakes

All this comes at a time when Spain’s wider economy is outperforming most of its European peers. The IMF forecasts GDP growth of 2.5% this year, and unemployment is at a 17-year low.

Yet the pork industry alone supports more than 400,000 jobs in Spain and is the largest in Europe. A squeeze on exports to the US threatens not just revenues, but rural livelihoods and supply chain stability.

For Fernández and others, the message is clear: if the US market becomes too unpredictable, businesses will rebalance their global strategy.

“Even the most iconic Spanish products need certainty to thrive,” he said. “If the US becomes too expensive or unreliable, we will look elsewhere.”

Read more:
Tariff tensions force Spain’s food giants to seek markets beyond the US

The UK government has committed £14.2 billion to the Sizewell C nuclear power plant on the Suffolk coast, part of a long-term strategy to boost energy security and cut household bills — though the benefits won’t materialise until well into the next decade.

Prime Minister Sir Keir Starmer described the development as a crucial move towards energy independence and a way to shield Britain from future global energy shocks, declaring: “We’re not writing a blank cheque, but this investment gives us control over our energy and protection from volatile international markets.”

The announcement comes as part of the government’s wider plan to attract investment, stimulate growth, and position the UK at the forefront of clean energy. The funding is expected to help attract further private investment and reignite progress on a project that has been under discussion for more than a decade.

Yet the Sizewell C project — backed by the state-owned French firm EDF — continues to attract fierce criticism over its cost, timeline, and environmental footprint.

While the government insists that the project will “bring down bills for millions,” Energy Secretary Ed Miliband confirmed that the plant is not expected to begin generating power until the mid-2030s. That means households won’t feel the financial benefit of the scheme for at least another ten years.

The £14.2 billion announced this week — which includes £2.7 billion from the Autumn Budget — will cover just five years of the project’s development. Total costs remain uncertain, with estimates ranging from £20 billion to as high as £40 billion, raising concerns over financial transparency and investor confidence.

Jobs, energy security, and net zero

Sizewell C is expected to create 10,000 jobs during construction and 900 permanent roles once operational. The plant would eventually generate electricity for around six million homes and run for up to 60 years.

Trade unions welcomed the announcement. GMB general secretary Warren Kenny said the project would deliver “thousands of good, skilled, unionised jobs”, while Prospect’s Mike Clancy called it “essential” for hitting net zero targets, offering a clean, stable energy supply to complement intermittent renewables like wind and solar.

Starmer emphasised the national security implications too, suggesting that UK energy sovereignty was key to resisting international threats: “No more boots on our throat from authoritarian regimes like Putin’s,” he said.

Local voices divided

Reactions among local residents remain mixed. Some, like trainee paramedic Chris Matthews from Leiston, praised the investment as a boost to the town’s economy: “We’ve lived with Sizewell A and B. This will bring jobs and prosperity, and we need energy independence.”

Others, however, are devastated by the environmental impact of the project. Jenny Kirtley, chair of Together Against Sizewell C, said: “The whole area is changing before our very eyes. I’ve been in tears many times watching what’s happening.”

Farmer David Grant, whose land will be split by a new access road, labelled the funding “outrageous”, citing EDF’s poor track record with delays and budget overruns at Hinkley Point.

The project has already seen years of shifting figures and staggered announcements. With private investment still not fully secured, critics say the government is committing public funds prematurely. Alison Downes from campaign group Stop Sizewell C said ministers hadn’t “come clean” on the true cost, and that taxpayers remain exposed to potential overruns.

EDF dismissed a £40 billion cost estimate as inaccurate, but its Somerset sister site Hinkley Point C — also developed by EDF — is already more than a decade late and billions over budget.

A final decision on the Sizewell C funding model is expected later this summer.

Even as construction progresses — with site clearance and access infrastructure already under way — questions remain about the long-term affordability, environmental footprint, and feasibility of the project.

The Department for Energy Security said Sizewell C is part of the government’s plan to “deliver the biggest boost to social and affordable housing in a generation alongside supporting first-time buyers” — a somewhat confusing conflation that underscores the pressure on Labour to deliver quick wins amid challenging fiscal constraints.

Despite the complexity, the government remains bullish on the role of nuclear in a greener future. Alongside the Sizewell announcement, Rolls-Royce also secured a £2.5bn contract to deliver three state-of-the-art nuclear reactors — part of a broader national pivot toward new nuclear capacity.

But for millions of British households grappling with high bills today, the promise of cheaper energy remains distant. For now, Sizewell C remains a bet on the future — one that ministers hope will eventually pay off.

Read more:
Sizewell C secures £14.2bn state boost – but energy savings won’t come for a decade

A high-stakes legal battle begins at the High Court today as the UK government seeks to recover £122 million from PPE Medpro, a company awarded Covid-era contracts following a recommendation from Conservative peer Michelle Mone.

The Department of Health and Social Care (DHSC) is suing PPE Medpro for the return of funds paid for 25 million sterile surgical gowns supplied in 2020, which were ultimately rejected as unsuitable for NHS use. The department is also claiming an additional £11 million to cover storage, disposal, and associated costs, as well as interest.

The case centres on two contracts worth more than £200 million awarded via the government’s now-infamous “VIP lane”—a fast-track procurement process that gave priority to companies with political connections during the pandemic. PPE Medpro was awarded a £122m gown contract and an £80.85m deal to supply face masks.

At the time, both Mone and her husband, Isle of Man financier Doug Barrowman, denied involvement in the company. However, a series of Guardian investigations later revealed that Mone had personally lobbied ministers, including then-Cabinet Office minister Michael Gove, and that Barrowman had received over £65 million in profits from the contracts.

In late 2023, Mone publicly admitted she had lied about her links to PPE Medpro, and Barrowman confirmed he had transferred £29 million into a trust benefiting Mone and her adult children.

While the supplied face masks were accepted and used, the surgical gowns were never deployed. According to the DHSC’s legal filings, the gowns were “non-sterile”, carried “invalid technical labelling”, and posed a risk to patient safety. The government maintains they were “not fit for any purpose within the NHS”.

PPE Medpro continues to deny wrongdoing. In a statement this week, the company said it “categorically denies breaching its obligations” and pledged to “robustly defend” its position in court.

The High Court case is separate from an ongoing criminal investigation by the National Crime Agency (NCA) into the procurement process and the couple’s financial dealings. In April 2022, the NCA raided several properties linked to the pair. Earlier this year, the Crown Prosecution Service secured a court order to freeze £75 million of their assets—an application Mone and Barrowman did not contest. Both deny any criminal wrongdoing.

The case is expected to intensify scrutiny over the government’s use of the pandemic procurement “VIP lane”, which has faced widespread criticism for lack of transparency and due diligence. It also raises questions about the role of peers and politically connected figures in lobbying for lucrative public contracts.

PPE Medpro’s legal team is set to argue that the gowns were produced in China to the correct specifications and were sterile when shipped. The company has claimed its products “undoubtedly helped keep NHS workers safe” and insists the DHSC’s rejection of the gowns was unfounded.

The DHSC has declined to comment on the case while proceedings are ongoing. The trial is expected to last several weeks and could set a significant precedent for future government efforts to recover funds related to pandemic-era procurement.

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Michelle Mone-linked PPE firm faces £122m high court battle with government