Business

SpaceX has acquired xAI, Elon Musk’s fast-growing artificial intelligence venture, in a move designed to bring the billionaire entrepreneur’s AI, space and communications ambitions under a single corporate structure.

The deal unites the world’s most valuable private aerospace company with the developer of the Grok chatbot, marking one of the most striking corporate combinations to emerge from Silicon Valley in recent years. It also comes ahead of a widely reported blockbuster stock market listing later this year.

In a memo to staff, also published on X, Musk said the acquisition would create “the most ambitious, vertically integrated innovation engine on (and off) Earth”.

“By combining AI, rockets, space-based internet, direct-to-mobile communications and the world’s foremost real-time information platform, we can accelerate innovation across every domain,” he wrote.

The transaction deepens Musk’s strategy of fusing advanced AI with his space and satellite-internet empire, allowing SpaceX to tap into xAI’s computing power, data infrastructure and engineering talent. Industry observers say the integration could support long-term ambitions such as AI-driven satellite networks and even space-based data centres.

Last year, Musk used xAI to acquire X, formerly Twitter, folding the social media platform into his broader AI strategy. The New York Times reported that the combined xAI-X entity was valued at around $113bn at the time.

The latest move brings SpaceX, xAI, X and the Grok chatbot closer together ahead of a mooted initial public offering that would place much of Musk’s private empire under one listed umbrella. According to Bloomberg, the combined group could be valued at around $1.25 trillion, with shares potentially priced at about $527 each.

SpaceX, which designs and launches reusable rockets and operates the Starlink satellite broadband network, is estimated to have generated revenues of about $15.5bn last year. Separately, the company is reported to be exploring a capital raise of up to $50bn at a valuation of roughly $1.5 trillion — a figure that would eclipse Saudi Aramco’s record-breaking 2019 flotation.

Several global investment banks, including Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley, are said to be lining up for leading roles in the IPO, underlining investor appetite for Musk’s increasingly integrated vision of AI, space and communications.

While the scale and ambition of the deal are unprecedented, analysts note that the combination also brings together two capital-intensive businesses, both heavily reliant on advanced chips, data centres and energy. How effectively the merged group balances those costs — and convinces public market investors of its long-term profitability — will be closely watched in the months ahead.

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SpaceX acquires xAI as Elon Musk moves to unite rockets, satellites and artificial intelligence

The way we engage with sports has changed completely. We used to watch matches on TV and talk about them in tea stalls. Now, the action happens in our pockets. Smartphones have become our primary tool for entertainment.

Because of this shift, finding a reliable platform is essential. To ensure you get the best performance, choosing a dedicated sports betting app is the smartest move you can make. It offers freedom. It gives you control. You can place a wager while commuting on a bus or relaxing at home.

The market is flooded with options. However, not every application is worth your time or data. Some are slow or unsafe. A high-quality app must offer more than just odds. It needs to be a secure vault for your money and a fast tool for your strategy.   Here’s a well-researched quick review to help you identify the best betting apps on the market.

Features of top-rated sports betting apps

What separates a good app from a bad one? Speed is the first answer. When you are betting on a live cricket match, every second counts. A lag of five seconds can change everything. The top-rated sports betting apps are optimized for speed. They load instantly. They update scores in real-time.

Another critical factor is operating system compatibility. In our country, both Android and iOS users need a seamless experience. Therefore, a good sports betting app must be lightweight and optimized for both systems, ensuring it doesn’t drain battery or lag on older Android phones or iPhones. Leading platforms understand this need; for example, the Pin Up app offers a user-friendly interface that performs flawlessly on any device. It is intuitive, allowing users to navigate between sections without confusion. Here is a comparison of what to look for:

Feature
Top Tier App (e.g., Pin Up)
Average App

Speed
Instant load times
Frequent lags or loading screens

Payment Methods
Local (bKash, Nagad, Rocket)
International only (Cards/Crypto)

Interface
Clean and easy to navigate
Cluttered and confusing

Live Streaming
Available for major events
Rarely available

This table shows why mobile betting is about more than just placing a bet. It is about the entire user experience.

Top apps to find the best bookmaking offers online

You might be wondering, “Where do I actually find these deals?” Most players use mobile apps because they are faster and safer. Here is a short review of the best options where you can find reliable offers:

Pin-Up: This is currently a top favorite. Why? Because the Pin-Up bonus terms are usually very clear. They don’t hide the rules. Plus, if you have a Pin Up promo code, the app makes it super easy to enter it and claim your extra funds instantly. It is great for both beginners and pros.
Parimatch: A solid choice if you like simplicity. Their bonuses are often smaller but have fair wagering requirements. The app is clean, and they support local payments like bKash, which makes depositing to claim your bonus very easy.
1xBet: This app is famous for having huge They offer massive welcome packages. However, be careful. Their wagering rules can be a bit complicated. It is a good app if you are an experienced player who knows how to read the fine print.

Using these apps gives you a massive advantage over desktop users. Why? Because of push notifications. Apps can alert you the second a “flash sale” or limited-time Pin-Up bonus drops. While website users might miss a 24-hour offer, app users get a buzz in their pocket instantly. Also, many platforms now offer exclusive “mobile-only” rewards to encourage you to download their software. This means you could be missing out on free spins simply by playing on your browser instead of the app.

Conclusion

Finding the right software can upgrade your game. Sports betting is no longer about finding a physical shop. It is about having the world of sports in your pocket. Whether you are looking for a Pin Up app or another top platform, always prioritize security and speed. Check the reviews. Test the interface. And most importantly, always play responsibly. The right app makes the game fun, safe, and exciting.

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Review of the best sports betting app options

Timber has always occupied an awkward position in modern construction. It is familiar, widely used, and generally well understood, yet it has also carried long-standing concerns around movement, durability, and maintenance.

Over the past decade, those concerns have not disappeared, but the way the industry responds to them has changed. One of the clearest examples of that shift is the growing use of thermally modified timber.

Thermal modification is not a new invention, but its relevance has increased as expectations around performance, sustainability, and predictability have tightened. Developers, architects, and contractors are no longer just asking whether timber looks good or performs well initially. They want to know how it behaves after ten, twenty, or thirty years, and how much risk it introduces into a project once the scaffolding is gone.

What Changes When Timber Is Thermally Modified

At its core, thermal modification is a relatively simple idea. Timber is heated to high temperatures in a controlled environment, altering its internal structure. Sugars and other compounds that attract moisture and decay organisms are reduced, leaving a material that absorbs less water and behaves more consistently as conditions change.

This matters because moisture is at the heart of most timber problems. Swelling, shrinkage, surface checking, and distortion are all symptoms of timber responding to water. By limiting how much moisture the wood can take on, thermal modification addresses those issues at source rather than trying to manage them after installation.

The result is not a completely different material, but one that behaves in a more predictable way. That distinction is important, particularly when claims around performance start to sound too good to be true.

A clearer understanding of thermally modified timber cladding explained has helped move discussion away from marketing language and toward how the material actually performs on site.

Stability as a Commercial Advantage

Dimensional stability may not sound exciting, but in construction it often determines whether a material succeeds or quietly causes problems. Uneven movement across a façade can lead to visible defects, accelerated weathering, or disputes about workmanship and responsibility. On larger buildings, even small inconsistencies become obvious very quickly.

Thermally modified timber tends to move less across the grain than untreated alternatives. Boards remain straighter, gaps behave more predictably, and fixings are placed under less stress over time. For contractors, this can reduce call-backs. For developers and asset owners, it lowers the risk of long-term appearance issues that are difficult to rectify once a building is occupied.

In that sense, thermal modification is as much about risk reduction as it is about performance improvement.

Durability Without Heavy Chemical Reliance

Another reason thermally modified timber has gained traction is its approach to durability. Rather than relying on chemical preservatives, the process alters the timber itself. This has obvious appeal at a time when material transparency and environmental impact are under closer scrutiny.

That does not mean thermally modified timber is maintenance-free or immune to poor detailing. Moisture can still cause problems if it is trapped, and surface weathering still occurs. What changes is the margin for error. The timber is less reactive, and decay mechanisms are slowed significantly when the material is used as intended.

For projects where long-term performance matters more than minimum upfront cost, this balance is increasingly attractive.

Installation Still Matters More Than the Material

One of the quieter truths about thermally modified timber is that it does not compensate for bad installation. In some ways, it demands more care. The process slightly increases brittleness, which means fixings must be selected carefully and pre-drilling is often required.

Ventilation behind the cladding remains critical. Reduced moisture absorption does not eliminate the need for airflow, and failures still tend to trace back to insufficient cavities, blocked drainage paths, or inappropriate membranes. When these fundamentals are ignored, even the best material will disappoint.

Where thermally modified timber performs well is in rewarding good practice. When detailing is correct, the material tends to stay within predictable limits, rather than amplifying small errors over time.

Fire Performance and Practical Reality

Fire safety continues to shape how timber products are specified. Thermal modification does not change the fact that wood is combustible, and it does not remove the need for fire performance assessment at system level.

In practice, this means thermally modified timber must still be considered alongside insulation choice, cavity barriers, fixings, and overall wall build-up. Fire retardant treatments may be applied where required, but they need to be assessed as part of a complete solution rather than assumed to solve the issue in isolation.

For commercial projects in particular, clarity matters. Ambiguity around compliance introduces risk, delays approvals, and complicates insurance discussions. Thermally modified timber fits within regulatory frameworks, but only when its limitations are understood as clearly as its benefits.

Longevity, Maintenance, and Whole-Life Thinking

Much of the value proposition around thermally modified timber sits in the long term. Reduced movement and improved resistance to decay can translate into longer service life and fewer maintenance interventions, provided expectations are realistic.

Surface appearance still changes over time. Some projects embrace this, allowing façades to weather naturally. Others apply coatings to control colour and consistency. In either case, maintenance intervals tend to be more predictable, which is often more important than extending them indefinitely.

This is where discussion around ThermoWood durability and lifespan becomes meaningful. Durability is not just about how long timber lasts, but how reliably it behaves during that period.

Sustainability Beyond the Headline Claims

Thermally modified timber often features prominently in sustainability narratives, and not without reason. Reduced chemical use, extended service life, and renewable sourcing all contribute positively to lifecycle assessments.

That said, sustainability claims need context. Thermal modification requires energy, and not all sourcing is equal. The environmental case is strongest when durability gains genuinely reduce replacement and maintenance over time, rather than simply adding another processing step to a short-lived installation.

For businesses reporting on environmental performance, this nuance matters. Overstated claims are increasingly scrutinised, and credibility depends on aligning material choice with realistic use scenarios.

A Material That Rewards Clarity

Thermally modified timber has found a place in mainstream construction not because it is fashionable, but because it addresses some of the most persistent weaknesses of traditional timber use. It does not remove the need for good design, careful installation, or long-term planning. What it offers is a narrower range of outcomes.

For developers, designers, and contractors willing to engage with its characteristics honestly, that predictability can be a genuine advantage. For those expecting it to behave like a different material altogether, disappointment is almost guaranteed.

Used with intent rather than assumption, thermally modified timber earns its place through performance rather than promise.

Read more:
Why Thermally Modified Timber Has Moved Into the Construction Mainstream

Greater adoption of agentic artificial intelligence could help rejuvenate Britain’s sluggish economy, according to business and technology leaders speaking at an AI summit held at the House of Lords.

The event, chaired by Steven George-Hilley, founder of Centropy PR, brought together senior figures from the technology, legal, financial services and cybersecurity sectors to examine how AI is reshaping economic growth, jobs and boardroom decision-making.

A central theme of the summit was the role of agentic AI systems, autonomous tools capable of acting on goals with minimal human intervention, in helping small and medium-sized enterprises access advanced capabilities that were previously out of reach. Speakers argued that AI-driven sales, customer management and decision-support systems could level the playing field for SMEs and unlock productivity gains across the economy.

Participants also warned of a looming “skills cliff edge” as AI adoption accelerates, particularly among smaller businesses that lack the resources to retrain staff at pace. Without targeted support, the UK risks widening the gap between large enterprises and the SME sector that underpins much of the economy, the summit heard.

Rupert Osborne, UK chief executive of Capital.com, said AI could play a crucial role in improving financial decision-making by making complex market data easier to understand.

“Used responsibly, AI can organise data, explain market movements and make uncertainty more visible, so decisions are informed by context and risk, not just price,” he said. “Many people default to traditional savings products because investing feels opaque or intimidating. AI can help form the building blocks of a more practical approach to financial literacy in the UK.”

Cybersecurity was also high on the agenda, with speakers stressing that AI-led transformation must be matched by robust safeguards.

Graeme Stewart, head of public sector at Check Point Software, said AI had the potential to transform public services such as healthcare and local government, but warned that security could not be an afterthought.

“We’ve already seen how ruthless hackers can be when it comes to targeting vulnerable organisations,” he said. “Cyber resilience must be built into AI strategies from the outset to ensure public trust and protect sensitive data as adoption accelerates.”

From a financial services perspective, Jan Tlaskal, chief data engineer at Galytix, argued that domain-specific, high-trust AI systems were becoming a strategic necessity.

“With geopolitical fragmentation, rising regulatory complexity and mounting compliance demands, agentic AI is not something to shy away from,” he said. “It is a strategic risk-management advantage that can improve data accuracy, enable faster investment decisions and support sustainable growth.”

The summit concluded that while AI will inevitably reshape jobs and workflows, agentic AI offers a significant opportunity to boost productivity and competitiveness, provided skills, security and responsible deployment are treated as core priorities rather than secondary concerns.

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House of Lords AI summit urges agentic AI to ‘rejuvenate’ UK economy

The UK Government is facing renewed pressure to freeze hotel business rate revaluations, after Northern Ireland moved to halt the process following an outcry from hospitality operators.

Hotel owners and advisers warn that without similar action in England, Scotland and Wales, many operators will be hit with unsustainable cost increases from April 2026, on top of higher employment taxes and rising operating expenses.

Frazer Callingham, managing director of Starboard Hotels, said the contrast with Northern Ireland could not be starker.

“After an outcry from hotels and pubs in Northern Ireland, there has been a halt in the rate revaluation process,” he said. “The UK Government must follow suit, as many hotels can ill afford a further increase in costs.”

Callingham pointed to the impact on one of Starboard’s hotels, where the rateable value is set to rise sharply under the current UK revaluation timetable.

“From 1 April 2026, the rateable value of one of our hotels will increase from £250,000 to £780,000,” he said. “That translates into a rise in rates payable of nearly £300,000 a year. In Northern Ireland, 2027 business rates will be calculated using current valuations, meaning any increases will be far smaller.”

He added that the valuation freeze in Northern Ireland gives hospitality businesses time to challenge assessments properly, while in the rest of the UK transitional relief merely forces operators to adjust to what he described as a “new normal” of permanently higher rates and taxes.

“If the UK Government will not halt the revaluation process, then it should at the very least extend business rates relief across the whole hospitality industry, not just pubs and live music venues,” Callingham said. “Hotels and other hospitality businesses have been explicitly excluded, even though they face the same pressures.”

Tax experts have echoed those concerns. Darsh Shah, partner at Blick Rothenberg, said recent government comments suggesting pubs faced a different situation to the rest of hospitality were deeply flawed.

“The comment by Rachel Reeves that ‘the situation the pubs face is different from other parts of the hospitality sector’ is beyond ridiculous,” Shah said. “Hotels are facing the steepest average increases in business rates across the sector.”

Shah argued that a comprehensive rates relief package covering all of hospitality should be considered, warning that the industry risks long-term contraction if policy does not change.

“The hospitality sector is the seventh largest in the UK by number of registered businesses,” he said. “At this rate, this government will be responsible for its long-term decline. I would not be surprised if it falls out of the top ten sectors altogether in future.”

While pubs are set to benefit from a £100 million annual support package until 2029, Shah said that assistance alone would not be enough to stabilise the sector and predicted further policy reversals following last autumn’s Budget.

The calls come as hotels continue to warn that rising business rates, employer national insurance contributions and wage costs are converging into a severe financial squeeze, threatening investment, jobs and the viability of properties across the UK.

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Calls grow for UK to freeze hotel business rate revaluations as costs soar

The government has announced a £150 million cash injection for struggling high streets across the UK, but small business owners and industry leaders have warned the funding risks being little more than a “trivial sticking plaster on a gaping economic wound”.

The funding, unveiled as part of a forthcoming High Streets Strategy, will be targeted at town centres hit hardest by years of shop closures, rising costs and declining footfall. Ministers said the money would help revive high streets blighted by boarded-up units and the loss of essential local retailers such as butchers, grocers and bakers.

Further details on how the £150 million will be allocated and which areas will benefit are expected to be announced in the coming months.

Steve Reed, the communities secretary, said the investment marked an important step in reversing the decline of town centres.

“Our high streets are the beating heart of Britain, where communities come together and local businesses can grow,” Reed said. “Town centres have suffered from high streets falling into decline, and that is why we’re taking action to turn the tide with this crucial investment and more to come.

“We have listened to what people are telling us and that’s why we’re giving them the power and control to breathe new life back into our high streets and restore the sense of pride communities feel.”

However, many business owners say the scale of the funding is dwarfed by the pressures facing high street firms, particularly rising business rates, higher wages and weak consumer spending.

Jess Magill, co-founder of Powderkeg Brewery, said the government was acknowledging the problem but failing to address its root causes.

“While it’s great that the government is recognising the problem, the level of funding is nowhere near enough,” she said. “With business rate hikes, the government is taking away with one hand and throwing crumbs back with the other.

“Many towns are stuck with run-down retail centres owned by private property firms happy to leave units empty. Add to that the squeeze on household budgets and it’s clear we need far more than this to stop shops, pubs and restaurants closing.”

Others questioned how far the money would stretch once divided across the country.

Clive Bonny, managing director of Strategic Management Partners, said the numbers did not stack up.

“The UK has around 325,000 small independent high street retailers,” he said. “£150 million spread across them works out at only a few hundred pounds per business. We need transparency on who gets this money, how it will be spent and what return on investment the government expects.”

The most scathing criticism focused on the broader economic context facing high streets.

Rohit Parmar-Mistry, founder of Pattrn Data, said the funding failed to address the underlying causes of decline.

“This initiative is a trivial sticking plaster on a gaping economic wound,” he said. “You can repaint shop fronts and open community hubs, but if local people have no disposable income, businesses will still fail.

“The decline of the high street isn’t cosmetic – it’s systemic. Real regeneration comes when people have money in their pockets to spend. Until that’s addressed, this is just managing decline with a smile.”

The criticism comes amid mounting pressure on the government from retailers and hospitality firms warning that rising taxes and the withdrawal of pandemic-era support risk accelerating closures in town centres. While ministers insist the £150 million is only the start of a wider strategy, business groups are calling for deeper reform on business rates, rents and consumer affordability if high streets are to recover sustainably.

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High streets to receive £150m boost – but business leaders warn it is “a sticking plaster on a gaping wound”

The billionaire brothers behind Betfred have topped the Sunday Times 2026 Tax List, after paying an estimated £400.1 million to the UK Treasury, making them the country’s biggest individual taxpayers.

Fred and Peter Done, founders of the betting empire, took the top spot in the annual rankings, with around half of their contribution linked to gambling duties generated by Betfred’s nationwide chain of betting shops.

The list, now in its eighth year, highlights the scale of tax paid by Britain’s wealthiest business figures and celebrities, even as concerns grow over a steady migration of high-net-worth individuals overseas.

Pub tycoon Tim Martin ranked eighth, with a personal tax contribution just under £200 million. His company, JD Wetherspoon, operates 794 pubs and paid a total of £837.1 million in taxes last year, averaging more than £1 million per pub across corporation tax, VAT, business rates and gaming duties.

Martin, who owns 26.7% of the group, said he had no complaints about his personal tax bill, describing taxation as a political choice for voters rather than a personal grievance.

Other leading contributors in the top ten included financiers Alex Gerko, Chris Rokos and Peter Hargreaves, alongside retail figures such as Mike Ashley of Sports Direct, Tom Morris of Home Bargains, the Perkins family behind Specsavers, and Stephen Rubin, a major shareholder in JD Sports and owner of Speedo.

Among public figures, Harry Styles emerged as the highest-contributing celebrity, ranked 54th overall, with an estimated £24.7 million tax bill. Most of his contribution stems from touring and merchandise income generated through his company, Erskine Records.

He finished ahead of fellow singer Ed Sheeran, who paid just under £20 million in tax after receiving a £41 million dividend last year.

At 72nd on the list, Erling Haaland became the youngest entrant. The Manchester City striker, whose earnings exceed £500,000 a week before bonuses and image rights, is estimated to have paid £16.9 million in UK tax.

Other notable names included JK Rowling, the Timpson family, Dyson founder James Dyson, and Douglas and Iain Anderson of the GAP Group, which supplies infrastructure for festivals and major events.

The 2026 list coincides with what the Sunday Times describes as an ongoing exodus of wealthy individuals from the UK. Fourteen of those featured are now resident overseas, with several based in Monaco, Jersey, Guernsey, Portugal, Cyprus, Dubai and the United States.

Despite the trend, Peter Done, 78, said he had no intention of leaving Britain. “We owe this country,” he told the newspaper, adding that successful entrepreneurs have a responsibility to pay tax where their wealth was created.

According to HMRC data, the top 1% of earners in the UK — those earning more than £219,000 before tax — currently contribute around 26.6% of all income tax receipts. While still significant, that share has fallen from 30.7% in 2021–22, partly due to frozen income tax thresholds and the relocation of some high earners abroad.

The Sunday Times Tax List is compiled using the most recent company accounts filed up to 10 January and includes a broad range of levies, from corporation and dividend tax to capital gains, income tax and sector-specific duties such as gambling and alcohol taxes.

Read more:
Betfred brothers top Sunday Times tax list with £400m bill as stars and entrepreneurs pay record sums

Rising taxes and operating costs forced more than one in five UK small and medium-sized enterprises (SMEs) to make redundancies last year, underlining the growing strain on business owners as financial pressures mount.

A survey commissioned by Rathbones, one of the UK’s largest wealth and asset management groups, found that 21 per cent of SME leaders were compelled to cut staff in response to higher costs and tax burdens. The poll of more than 1,000 founders, owners and senior executives paints a picture of businesses being squeezed at both the corporate and personal level.

Overall rising costs were cited as the biggest threat to business by 70 per cent of respondents, while 58 per cent said rising taxation and regulatory burdens were among their most significant challenges. Business rates and employer national insurance contributions were singled out as particular pressure points.

The survey also highlights how closely intertwined business and personal finances are for many entrepreneurs. More than a quarter of SME leaders said over 25 per cent of their personal wealth is tied up in their business, meaning higher operating costs are increasingly spilling over into household finances.

This strain is being compounded by a rising personal tax burden. Frozen income tax thresholds continue to push business owners into higher tax bands, while cuts to capital gains and dividend allowances, alongside higher CGT and dividend tax rates, are eroding post-tax income. For many SME owners who extract profits via dividends, these changes are forcing a reassessment of long-established financial strategies.

Faye Church, senior financial planning director at Rathbones, said entrepreneurs were facing a “double whammy”.

“We consistently hear from business owner clients that they are determined to grow, hire and contribute to the wider economy,” she said. “But heightened tax pressures are increasingly stifling those ambitions. Entrepreneurs are being squeezed from both sides, higher taxes at the business level and rising personal tax bills, making it extremely difficult to plan, invest and build for the future.”

Church added that for most entrepreneurs the boundary between business and personal finances is thin, making it essential to consider both together in an increasingly complex and unpredictable tax environment.

Despite the pressure, some SMEs are adapting by reshaping their workforce. The research found that 9 per cent have increased their use of freelancers or contractors, while another 9 per cent have shifted towards more part-time or flexible roles to manage costs.

Confidence in government support remains low. Nearly two-thirds (62 per cent) of SME leaders said they believe the government does not understand the needs of entrepreneurs. More than half (51 per cent) said targeted measures such as business rates relief or changes to employer national insurance contributions would directly support growth and investment.

The impact is particularly severe in hospitality. More than 35 per cent of hospitality SMEs reported making redundancies last year, well above the SME average, and 69 per cent said increased taxation or regulation is now one of the biggest threats they face.

The findings come as pandemic-era business rates relief has been scaled back from 75 per cent to 40 per cent and is due to expire entirely in April. While ministers have announced further support for pubs, hospitality groups warn that restaurants, hotels and other venues risk being left out.

“Calls from the hospitality sector for targeted relief highlight the increasingly painful pressures facing these businesses,” Church said. “Without action, the mounting tax and cost burden risks stifling the very growth, innovation and local regeneration the UK economy urgently needs.”

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One in five SMEs cut staff as tax and cost pressures intensify, survey finds

British manufacturers are scaling back exports to the United States as uncertainty caused by President Donald Trump’s shifting tariff policies disrupt trade and supply chains, according to new industry research.

A joint study by Make UK and DHL Express found that 20 per cent of UK factories have already stopped or reduced exports to the US in response to tariff uncertainty. A further 16 per cent said they plan to reduce their reliance on the American market, meaning more than a third of manufacturers now view US tariffs as having a negative impact on their business.

The report also found that many British factories rushed shipments into the US in early 2025 to beat a potential rise in import levies, highlighting the stop-start nature of trade policy over the past year.

Trump has imposed a blanket 10 per cent tariff on UK imports, one of the lowest rates applied to any country. However, Britain was among a group of nations threatened with tariffs as high as 25 per cent if they opposed Trump’s stance over Greenland, a move he later rowed back after discussions with Nato allies at the World Economic Forum in January.

Stephen Phipson, chief executive of Make UK, said the constant shifts in trade policy were forcing manufacturers to rethink long-established relationships.

“Tariffs and trade friction in global markets are creating uncertainty and disrupting longstanding customer and supply chains,” he said. “Many businesses are responding by diversifying exports, adjusting supply chains or scaling back activity to manage rising costs and delays.”

John Cornish, chief executive of DHL Express UK, said manufacturers were adapting rather than abandoning international trade altogether.

“The research shows that UK manufacturers aren’t retreating from global trade, they are recalibrating,” he said. “After years of disruption, businesses are taking a more deliberate and strategic approach to where and how they export, balancing risk while still pursuing growth overseas.”

Despite the pullback, the US remains a critical market for British industry. The study found that 60 per cent of manufacturers continue to trade with America, underlining its importance as an export destination.

However, the uncertainty is accelerating a shift towards sourcing closer to home. So-called “friendshoring” and “nearshoring” are gaining momentum, with 63 per cent of manufacturers saying they expect to buy more UK-produced inputs over the next five years, up from 49 per cent in 2020.

The findings suggest that while US trade remains vital, tariff volatility is reshaping how and where British manufacturers sell and source, with long-term implications for export strategy and domestic supply chains.

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British factories cut US exports as Trump tariff uncertainty bites

HM Revenue & Customs is preparing to embark on a technology spending programme worth more than £2 billion over the next two years, as long-running efforts to modernise its ageing IT estate continue to run into delays and rising costs.

According to HMRC’s latest procurement pipeline, the tax authority will begin with a large-scale data warehouse transformation programme, expected to be worth around £410 million. The contract will combine the running and modification of existing systems with the migration and eventual decommissioning of legacy data warehouse platforms.

Procurement documents state that HMRC intends to award a single contract to deliver the transformation of its legacy data warehouses, replacing no existing agreement. The legacy technology is widely understood to include SAP’s ECC Business Warehouse, which sits at the centre of HMRC’s wider enterprise resource planning overhaul.

SAP has already secured major uncontested contracts with HMRC, including a £246 million ERP modernisation deal and a separate £275 million upgrade to core tax systems, both awarded without a competitive tender.

One of the largest upcoming procurements is a £350 million contract for public cloud computing services with Amazon Web Services, replacing an existing AWS agreement of the same value. The pipeline also highlights a £306 million contract for “Digital Platforms Run and Change Products”, covering IT services to support live application services, including legacy platforms. This would replace a contract awarded to Accenture in May 2024, also valued at £306 million.

Beyond these headline projects, HMRC has a further series of large procurements planned, each exceeding £200 million. These include a £250 million mobility and workplace services contract to support staff devices and helpdesk functions; a £250 million deal for digital platforms supporting systems such as the Government Gateway and customer insight tools; and a £220 million data centre services contract.

Another significant agreement is the £214 million “Legacy – Retained HMRC Services Contract”, which HMRC has flagged as a direct award. This will replace the existing Core Business Platform Support and Maintenance Services contract, previously awarded to Capgemini for £214.5 million without a competitive process. That deal was later extended, again without competition, by a further £107 million.

In the 2024–25 financial year, HMRC spent £1.16 billion on IT and telecommunications while collecting £858.9 billion in tax revenues. Under the government’s most recent Spending Review, departments were required to undertake a Zero-Based Review of budgets, with a strong emphasis on digital transformation. As a result, HMRC has been allocated an additional £1.6 billion between 2026–27 and 2028–29 specifically to modernise its IT and data infrastructure.

However, the National Audit Office has warned that progress has been slower and more expensive than anticipated. In a report published in November 2025, the NAO said HMRC was taking longer than planned to exit legacy systems and had yet to realise the expected efficiency gains from its digital services programme.

“HMRC has not yet achieved the anticipated efficiencies from its digital services,” the watchdog said, raising questions about value for money as spending continues to escalate.

A spokesperson for HMRC said: “We’re investing in new technology so we can provide better services for our customers. We follow government procurement rules when awarding these contracts to ensure value for money for taxpayers.”

With billions more set to be spent on technology modernisation, pressure is mounting on HMRC to demonstrate tangible improvements in efficiency, service quality and system resilience as it attempts to finally move away from decades-old infrastructure.

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HMRC plans £2bn technology spending spree as legacy systems prove stubborn