Business

Chancellor Rachel Reeves is weighing plans to scrap the windfall tax on North Sea oil and gas producers in a bid to boost investment and revive economic growth.

The energy profits levy (EPL), introduced in 2022 under Rishi Sunak amid soaring global energy prices, currently imposes an effective tax rate of 78 per cent on North Sea operators. The Treasury is now considering whether to end the levy early, over growing fears it is stifling capital investment and threatening the UK’s domestic energy output.

Sources close to the discussions said officials have been consulting with major North Sea operators to gauge how much they would reinvest if the tax were removed. The move would mark a dramatic shift for the Labour government, which had previously supported extending the levy but now faces mounting pressure to prioritise growth.

Industry body Offshore Energies UK (OEUK) has warned that the sector is shedding 1,000 jobs a month as a direct consequence of the levy, with investment and production both falling faster than expected. The group has urged the Chancellor to replace the tax with a more stable, long-term fiscal framework, arguing that uncertainty over the levy is driving companies to shift their investment abroad.

The Office for Budget Responsibility (OBR) previously estimated that Ms Reeves’s decision to raise the levy from 75 to 78 per cent and extend it by a year to 2030 would raise about £1 billion. However, it also warned that the move would result in a 25 per cent drop in investment and up to a 9.2 per cent fall in output compared with projections under the previous Conservative regime.

Oil and gas revenues have also come in lower than forecast. The Treasury’s March consultation acknowledged that, while the EPL was initially expected to generate £19 billion by 2030, weaker energy prices and falling output have reduced returns.

Under current rules, ministers can remove the levy once oil and gas prices fall below $71.40 a barrel and 54 pence per therm for at least six months. While gas prices remain higher than their pre-crisis levels, Brent crude has traded below $70 for much of 2025, potentially triggering the conditions for the levy’s withdrawal.

Labour is also expected to unveil a new North Sea energy strategy alongside the Autumn Budget, setting out how the government will support “homegrown energy” and encourage new exploration. Prime Minister Sir Keir Starmer has pledged to “double down” on domestic oil and gas extraction to protect UK energy security and reduce reliance on imports.

The potential tax cut comes amid a worsening economic backdrop. The OBR recently warned that sluggish productivity growth has left the UK economy unable to expand at its previous pace, blowing a hole of more than £20 billion in the public finances.

Ms Reeves is under growing pressure to outline a credible growth strategy that restores business confidence. The Treasury hopes that signalling a more stable investment environment for energy producers could spur capital spending, safeguard jobs, and demonstrate fiscal pragmatism ahead of the Budget.

Any decision will depend heavily on the OBR’s final analysis of whether abolishing the levy would generate sufficient economic returns to offset the short-term loss in revenue. Treasury officials are also exploring whether a permanent variable tax could replace the levy, applying only when prices exceed certain thresholds — a measure intended to balance revenue stability with investor certainty.

Energy firms have cautiously welcomed the prospect of reform. One senior executive said ending the levy early would be “a game-changer” for investment decisions. “The UK has world-class energy resources, but the fiscal environment has been toxic,” they said. “If Labour follows through, it would send a strong signal that Britain is open for energy investment again.”

The Treasury declined to comment on whether changes to the windfall tax will feature in the Budget.

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Labour considers scrapping North Sea windfall tax in dash for growth

Fawn and India Rose James, the granddaughters of late property and publishing magnate Paul Raymond, have received £23 million in dividends from the family’s billion-pound Soho property empire following another record year of rental income.

The sisters inherited Soho Estates, which owns much of London’s West End, including bars, offices and restaurants, after Raymond’s death in 2008. Their combined wealth was estimated at £718 million in this year’s Sunday Times Rich List. Their mother, Debbie—Raymond’s daughter—died of a heroin overdose in 1992, when India Rose was a baby.

Accounts for the year to March 2025 show rental income rose 8 per cent to £43.84 million, surpassing last year’s record of £40.71 million. The increase was driven by full occupancy at Ilona Rose House, the flagship mixed-use building named after the sisters’ middle names, which houses tenants such as Warner Bros and Skyscanner.

Soho Estates said in its annual report that it had “benefited from stronger trading in Soho” as footfall and spending rebounded across the West End. Vacancies were “re-let quickly, typically on equal or improved terms,” the company added. New tenants during the year included Korean beauty brand Skin Cupid, “luxury” chip shop Frites Atelier, and the upcoming Market Place Food Hall in Leicester Square.

The company narrowed its pre-tax losses to £5.97 million, down from nearly £20 million the previous year, largely due to a smaller reduction in the value of its property portfolio, now valued at just under £1.1 billion.

Commercial property values have been under pressure since interest rates began to rise in 2022, but falling borrowing costs this year have led to tentative signs of recovery.

“With occupancy strong and cash flow stabilised, the board judged it an appropriate time to make a shareholder return,” Soho Estates said. The resulting £23.18 million dividend—the company’s first in two years—was distributed mainly to Fawn and India Rose James, the principal shareholders.

Paul Raymond, once dubbed “the King of Soho”, built his empire from the Raymond Revuebar, the strip club he opened in 1958 and whose profits he used to acquire freehold buildings across Soho. In the property slump of the 1970s, he bought aggressively—reportedly at one stage acquiring more than one freehold a week.

Today, Soho Estates owns some of the district’s most famous addresses, including Ronnie Scott’s Jazz Club, Kettner’s restaurant and hotel, and the original Soho House private members’ club.

Fawn James, 39, took over as chief executive earlier this year, succeeding her father, John James. Her half-sister, India Rose, 33, is not involved in the business but remains a major shareholder.

“Our financial performance reflects sustained demand for high-quality space across our portfolio,” said Fawn James. “As a family business, our focus is on long-term stewardship—continuing to invest in buildings and public spaces, supporting our tenants, and ensuring Soho can evolve while keeping its character.”

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Paul Raymond’s dranddaughters receive £23m as Soho Estates profits surge

Parliament Street, one of the UK’s leading think tanks has today appointed Steven George-Hilley as its Director of Artificial Intelligence, in a newly created role.

The news comes as the UK government signs a new deal with OpenAI, the firm behind ChatGPT, to use artificial intelligence (AI) to increase productivity in the UK’s public services and key government departments. Areas targeted for improvement include the justice, law and order, national security, defence and education sectors.

George-Hilley, founder of global tech communications firm Centropy PR, will lead the think tank’s cross-party policy development on AI deployment and liaise with businesses to discuss packages for public sector deals and services.

Established in 2012, Parliament Street specialises in connecting businesses with policymakers and operates impartially, organising debates, events and discussions in the Houses of Parliament and the House of Lords. Joining the organisation as Technology Director in 2013, Steven George-Hilley has led key political liaison programmes, working with ministers in both Labour and Conservative party governments to develop the best practice of key technologies such as analytics, AI and quantum computing.

This month, the UK government unveiled a blueprint for artificial intelligence regulation that would allow new AI products to be tested under relaxed rules, in a bid to drive growth and innovation in sectors such as healthcare and housebuilding.

Under the plans, unveiled by the UK’s technology secretary Liz Kendall in London on 21 October, a proposed AI Growth Lab would enable companies and innovators to test AI tools in ‘real-world’ conditions.

The proposed new testing environments would be set up for key economic sectors including healthcare, transport, and in the use of robotics in advanced manufacturing to “accelerate the responsible development and deployment of AI products”, according to the government.

Announcing the appointment, Patrick Sullivan, Chairman said: “Our think has now been in operation for well over a decade, producing agenda-setting research, events and policies. With AI set to shake up the business community beyond all recognition, I’m very proud to appoint Steven to this newly created role.”

Responding to the announcement, Steven George-Hilley, Director of AI, Parliament Street, said: “AI has the potential to transform public services beyond all recognition, saving key services like the NHS billions of pounds. However, the technology brings with it huge challenges in terms of security, privacy and ethical usage. Our organisation will continue to serve as a bridge between private businesses and the public sector, enabling the UK to become the epicentre of ethical and effective AI deployment.

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Steven George-Hilley appointed as AI director for Parliament Street think tank

The Chancellor, Rachel Reeves, must use the Autumn Budget to bolster the UK’s creative industries if she is serious about delivering economic growth, according to leading audit, tax and business advisory firm Blick Rothenberg.

Partner Mandy Girder said the creative industries — from film and music to digital media and design — remain one of the UK’s most dynamic growth engines, contributing around £124 billion to the economy in 2023, according to government data.

“The UK’s creative industry is an important part of the economy,” Girder said. “But to achieve Labour’s growth agenda, there needs to be more targeted support for freelancers in the media industry.”

Freelancers make up the backbone of the UK’s creative workforce — yet many struggle with irregular income, delayed payments, and limited access to financial support between contracts.

Girder said an emergency support fund for freelancers “to stay afloat when between jobs or awaiting late payments” would provide immediate relief and help retain skilled professionals in the sector.

But she added that structural change was just as vital as short-term support.

“Preventing these cashflow issues in the first place would go a long way,” she said. “The government should legislate creative industry-specific prompt payment rules, ensuring freelancers are paid within a reasonable timeframe — similar to the protections already in place for government suppliers.”

Girder called for the reintroduction of tax reliefs for freelancers, similar to those provided during the pandemic, to help independent creatives offset work-related costs such as software, equipment, and studio space.

“This would help small but established freelancers manage expenses and stay productive,” she said. “It should be coupled with increased or more permanent creative industry reliefs.”

She also proposed start-up grants for graduates and emerging professionals to help bridge the gap between university and employment.

“Some young people spend years honing their skills only to find it incredibly difficult to break into paid work,” Girder said. “A start-up grant could give them a lifeline to launch their careers and contribute to the economy.”

Girder said that while regional support schemes in the West Midlands, North East and Wales have proven effective, similar funds should be expanded across the UK to build a “national safety net” for creative freelancers.

She also urged the Treasury to increase the budget for the Global Screen Fund, which helps promote UK film and television exports abroad.

“More regional and national funding streams would unlock creative potential outside London and ensure the UK remains globally competitive,” she said.

Freelancers say slow and inconsistent payments remain one of the biggest challenges facing the industry.

Neil Kerber, an award-winning cartoonist, described how late payments disrupt livelihoods and morale: “It would be very helpful if a freelancer such as me could be paid quickly or at least on time, rather than finding out weeks down the line that my invoice still needs to be authorised — then forgotten about for another eight weeks,” he said.

“I once waited five months for a significant invoice to be paid. Prompt payment rules would encourage businesses to handle invoices efficiently and give creatives much-needed backup when chasing overdue payments.”

The UK’s creative sector is a vital export, a cultural powerhouse, and a proven driver of growth. But as Labour seeks to deliver on its promise of economic expansion, Girder said protecting the sector’s freelancers — who make up a significant proportion of the workforce — must be part of the plan.

“This is an industry that delivers jobs, innovation and global influence,” she said. “But to sustain that success, the people who power it — freelancers and small creative businesses — need stability, fair pay, and tangible government support.”

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Supporting the creative industry in Autumn Budget will increase growth

The Prince Albert II of Monaco Foundation (FPA2) has partnered with Circulate Capital, a leading circular economy investment firm, to scale solutions addressing ocean plastic pollution across South and Southeast Asia.

The collaboration, announced at the Ocean Innovators Platform in Hong Kong — an initiative led by FPA2 to promote sustainable blue economy solutions — marks a significant step in mobilising private capital to fight plastic pollution at its source.

The partnership will combine FPA2’s global environmental influence with Circulate Capital’s investment expertise in circular economy ventures to accelerate funding for businesses that prevent plastic leakage and build sustainable value chains in coastal regions.

“The fight against ocean plastic pollution is one of the Foundation’s highest priorities,” said Olivier Wenden, Vice Chairman and CEO of the Prince Albert II of Monaco Foundation. “Circulate Capital has demonstrated a compelling, market-based approach to solving this crisis in the regions most affected. Our partnership marks an important step in scaling effective, on-the-ground initiatives that protect marine ecosystems and support local livelihoods.”

South and Southeast Asia are responsible for nearly 70% of the plastic entering the world’s oceans each year. Yet, according to the Foundation, the region received just 10% of the US$190 billion invested globally in plastic circularity between 2018 and 2023.

Analysts estimate that improving recycling systems and managing mismanaged plastic waste across the region could reduce greenhouse gas emissions equivalent to shutting down 61 coal plants for a year. Meeting national recycling targets in six key markets could cut global emissions from plastics end-of-life by 10% by 2030.

“We aren’t just getting a partner; we’re getting a champion,” said Rob Kaplan, Founder and CEO of Circulate Capital. “With the Prince Albert II of Monaco Foundation alongside us, we can unlock the networks, capital, and collaboration needed to tackle plastic pollution head-on.”

Since its launch, Circulate Capital has invested in 23 companies across Asia and Latin America, financing projects that reduce plastic pollution while creating social and climate impact.

The firm’s portfolio has added 455,000 tonnes of annual recycling capacity, avoided 627,000 tonnes of CO₂ emissions, and improved the livelihoods of more than 6,600 workers throughout the recycling value chain.

The new partnership aims to extend that reach further, channelling more capital to local innovators tackling waste collection, recycling infrastructure, and alternative materials.

The alliance underscores a growing movement to align environmental philanthropy with market-driven investment strategies. By connecting impact investors with scalable solutions, FPA2 and Circulate Capital hope to redefine how plastic pollution is tackled — turning waste into opportunity and sustainability into growth.

“This partnership exemplifies how collaboration between foundations and private capital can deliver measurable, lasting change,” Wenden said. “The ocean connects us all — and protecting it demands that kind of shared responsibility.”

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Prince Albert II Foundation and Circulate Capital join forces to tackle ocean plastic in Asia

Sophisticated criminal networks are dumping millions of tonnes of waste in the British countryside every year, costing the UK an estimated £1 billion annually, according to a House of Lords inquiry.

The Environment and Climate Change Committee found that large-scale fly-tipping operations are increasingly linked to organised crime groups involved in money laundering, drug trafficking and modern slavery.

The inquiry estimated that around 38 million tonnes of waste are illegally dumped each year — enough to fill Wembley Stadium 35 times — but warned that the true figure may be far higher due to widespread under-reporting.

Committee chair Baroness Sheehan said waste crime had become a “low-risk, high-reward” activity for organised criminals, who operate with “complete impunity” amid weak enforcement and limited resources at the Environment Agency.

One of the worst cases cited in the inquiry involved 15ft-high piles of waste dumped in a Kent woodland, home to endangered nightingales. Despite public reports dating back to 2020, it took four years for regulators to take action.

Residents told peers they feared reprisals for speaking out. Les Bashford, a gamekeeper on the Surrey-Kent border who faces fly-tipping “almost weekly”, said confronting offenders often leads to violence.

“At least 75 per cent of people dumping here are known to the police,” he said. “If you catch them and they’ve already tipped, they’ll do whatever they can to escape.”

The Lords inquiry concluded that the £1bn annual cost of waste crime combines both the public cost of cleaning up sites and the tax revenue lost through unpaid landfill levies and unlicensed disposal operations.

Legitimate waste firms are also losing millions to criminal competitors undercutting them with illegal dumping, the committee said.

Dan Cooke, of the Chartered Institute of Waste Managers, called for tougher enforcement and more consistent national leadership.

“The negative impact this crime imposes on legitimate operators and local economies, alongside the environmental damage it causes, means tackling waste crime must become a government priority,” he said.

Peers urged ministers to launch a dedicated waste crime hotline, a digital tracking system to monitor waste from origin to disposal, and quarterly targets and progress reports for the Department for Environment, Food and Rural Affairs (Defra).

The committee also recommended a review into whether the landfill tax system was inadvertently fuelling illegal dumping by making lawful disposal prohibitively expensive.

Baroness Sheehan said: “Waste crime is critically under-prioritised despite its significant environmental, economic and social costs. The government must act now — there is no time to waste.”

A Defra spokesperson said the government was already “tightening the net” on waste gangs as part of its Plan for Change.

“We are helping councils to crush fly-tippers’ vans, funding more Environment Agency enforcement officers, and imposing tougher sentences for those who transport waste illegally,” the spokesperson said. “We will carefully consider the recommendations of this report and respond in due course.”

The Lords’ findings add to growing concern about the UK’s waste system, where gaps in enforcement have allowed criminals to profit from illegal dumping while damaging the environment and local communities.

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Organised crime gangs dumping millions of tonnes of waste in British countryside

AI and Web3 startup PoobahAI has raised $2 million in seed funding from FourTwoAlpha Ltd, the early Ethereum and Cosmos investor, in a move designed to make AI-powered blockchain creation accessible to anyone, regardless of technical expertise.

Based in Fort Worth, PoobahAI has built an artificial intelligence-driven, no-code platform that allows creators, entrepreneurs and businesses to launch decentralized Web3 applications, tokenized ecosystems and autonomous AI agents without writing a single line of code. The new capital will be used to accelerate the rollout of its flagship product, the MCP Server, and to support go-to-market expansion as the company works through a 4,000-strong global waitlist spanning North America, Europe and Asia.

The MCP Server, unveiled ahead of the funding announcement, is the first infrastructure layer designed to connect AI agents directly to blockchains. The technology allows for seamless multi-chain operations, transforming traditional static networks into dynamic, self-sustaining ecosystems capable of adapting and evolving in real time. By pairing this with PoobahAI’s intuitive platform, the company says builders can develop decentralized systems up to 60 per cent faster and at 90 per cent lower cost than traditional methods.

“Web3 holds the keys to a truly open internet, yet it’s trapped in a cage of code and complexity,” said Dr. Dana Love, President and Chairman of PoobahAI. “We’re blasting those doors wide open, arming builders with AI that doesn’t just automate — it innovates. Backed by FourTwoAlpha, we’re turbocharging this revolution and proving that the future of decentralized infrastructure can be as intuitive as drag-and-drop and as powerful as the blockchain itself.”

Founded by a team of AI and Web3 veterans, PoobahAI is part of a new generation of companies working to democratize the intersection of artificial intelligence and decentralized technology. The startup’s mission is to remove the complexity that has long hindered adoption, creating what it calls a “creator economy for Web3” — a space where individuals and organizations can build tokenized, autonomous systems as easily as they might design a website.

Investor FourTwoAlpha Ltd, based in the British Virgin Islands, said it views PoobahAI’s technology as the next logical step in the evolution of decentralized systems. The firm’s portfolio includes early investments in some of the world’s most transformative blockchain networks, and it believes PoobahAI’s AI-native approach could help unlock mainstream adoption of decentralized infrastructure.

The funding will also fuel PoobahAI’s efforts to expand its community of builders through university partnerships and global developer initiatives, as well as deepen its collaborations with major blockchain ecosystems. The company is already piloting its “chain-licensing” model with several leading Layer 1 networks, aiming to embed its AI infrastructure at the heart of the decentralized internet.

With additional AI tools entering public beta later this year, PoobahAI is positioning itself as a bridge between the AI and blockchain worlds — a convergence that many industry observers see as the next major frontier in tech innovation. “The next wave of progress will come from those who don’t just use AI or blockchain but combine them,” said Dr. Love. “PoobahAI is here to make that fusion simple, scalable and unstoppable.”

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PoobahAI raises $2M to mainstream AI-built blockchains

British businesses are wasting more than £13 billion a year in lost productivity as middle managers spend weeks dealing with avoidable, low-value work, according to new research by YouGov.

The findings — published in the fifth annual Feedback from the Field report by workplace operations platform SafetyCulture — reveal that middle managers lose an average of 7.3 weeks a year to unnecessary or repetitive tasks, including unproductive meetings, email overload, and correcting others’ mistakes.

The cost of that inefficiency is staggering: when managers’ wages are combined with the scale of the UK’s frontline workforce, the total wasted time amounts to £13.2 billion annually, the report estimates.

Of the five sectors surveyed, manufacturing is the hardest hit, with around £4 billion in wasted managers’ time every year. It is followed by retail (£3.3bn), construction (£2.4bn), transport and logistics (£1.9bn), and hospitality (£1.5bn).

Ronan Kirby, SafetyCulture’s Managing Director for EMEA, said the results highlight a chronic underuse of management talent across frontline industries: “Middle managers are the backbone of operational success, yet too often they’re held back by inefficiencies and admin overload. When equipped with the right tools and visibility, they can be the catalysts for real, sustainable improvement.

“The reality is they’re one of the most underused sources of insight in any business. They’re close enough to see where things break down and experienced enough to understand how those issues hit the bottom line.”

The study also exposes a disconnect between middle managers and senior leadership. Nearly nine in ten managers (88%) said they had ideas to improve their organisation, but fewer than half (43%) said their ideas were ever implemented.

More than a third (37%) blamed senior leadership for being “unreceptive” to suggestions from below. Many described company-wide improvement initiatives as “tick-box exercises” driven by people “who don’t understand how the work is done.”

By contrast, where managers’ ideas were adopted, the impact was significant: 57% reported more efficient operations and 46% saw cost reductions.

Kirby said the findings revealed a “two-way gap” between operational insight and executive decision-making.

“Managers’ ideas often struggle to gain traction, and leadership strategies don’t always reflect day-to-day challenges. The opportunity lies in closing that gap with systems and visibility that turn good ideas into lasting improvement.”

The report highlights examples of middle management-led innovation already paying dividends. Mowi Consumer Products UK, which operates the UK’s largest fish processing site with nearly 1,000 employees, cut its paper-based records by 90% and more than doubled its product and quality audits after introducing SafetyCulture technology.

Senior quality manager David Bett and then-production operator Anna Giusti spearheaded the project, which has since helped digitise operations across the site.

“The company is full of passionate people who invest their time and careers in improving processes, and we’re reaping the benefits of that,” Giusti said. “The digitisation programme has also enabled me to progress in my career to become a business data analyst.”

The report concludes that empowering managers to lead change is the key to improving operational efficiency across the UK’s frontline sectors.

“The most effective organisations empower everyone to contribute to change,” Kirby added. “With the right systems in place, managers can stop fighting the same fires every day and start driving the next opportunity forward.”

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UK businesses losing £13bn a year to wasted managers’ time – YouGov

Viral jacket potato brand SpudBros has come under fire after being accused of “bullying” a small business owner over a name dispute.

The Preston-based duo, Jacob and Harley Nelson, who became social media sensations for serving up gourmet potatoes from a tram and have since expanded to London and Liverpool, were accused of threatening legal action against a Portsmouth trader, Rumen Islam, owner of The Spud Father.

Islam, 27, opened his stand last month, offering his own take on the viral potato trend. But he says he has since been contacted by SpudBros’ legal team, who claim the name infringes their trademark.

“After months of graft — long days, late nights — we’ve now been threatened with legal action from SpudBros over the use of our name,” Islam wrote on social media. “We’ve poured our heart and soul into this. It’s gutting to think we might lose it because a bigger company wants to throw their weight around.”

The Portsmouth business owner told followers he will be changing the name after the dispute took a mental and emotional toll. “It’s been really hard,” he said in a TikTok video viewed thousands of times. “We’re a really small business — I’m born and bred in Pompey — and this was for the locals. It’s disheartening.”

Supporters online have flooded to defend Islam, accusing SpudBros of “corporate bullying” and calling for the brothers to drop the matter.

Comments on SpudBros’ recent TikTok posts include: “Stop bullying The Spud Father — there’s enough business for everyone.”
“Bit strange to go after a shop 260 miles away. Justice for Spud Father!”

The backlash led SpudBros to issue a public statement on Instagram, insisting they were not suing anyone.

“There are rumours we’ve sued a small business called The Spud Father. We are not suing anyone. Not now. Not ever,” wrote Jacob Nelson.

He said the company trademarked The Spudfather after launching a dish of the same name — in tribute to their father — which became their best-seller.

“As we grew, we developed merch, expanded franchises and had discussions with major retailers,” he said. “We trademarked the name in June, and it was approved before any other business applied for it. Our legal team simply responded to a notification from the Intellectual Property Office — it’s not a lawsuit.”

Nelson added that his family had received threats online since the story went viral, including towards his young daughter, and urged followers to stop the “hate”.

“We’d never want anyone to feel attacked. That’s not who we are,” he said. “We love small businesses — we were one. There’s room for everyone to succeed.”

Intellectual property lawyer Stephanie Davies, senior associate at Withers & Rogers, said the dispute highlights a common pitfall for startups.

“It’s often wrongly assumed that only big companies need to trademark their names,” Davies said. “Small businesses can build a following quickly, and if they don’t secure a registration early, they risk infringing on someone else’s rights — or losing their own brand identity.”

With a valid registration in place, she added, SpudBros may have a strong legal position, and The Spud Father could be forced to rebrand.

“Trademark searches should always be done before launch,” Davies said. “It’s far less painful than a rebrand once the business is up and running.”

The dispute marks the latest clash in the fast-growing world of viral potato vendors.

The Nelson brothers’ success has paralleled that of Ben Newman, better known as Spud Man, whose Tamworth-based jacket potato stall has 4.2 million TikTok followers and even drew the attention of Hollywood stars Ryan Reynolds and Hugh Jackman.

New rivals, including Spud Hut, Spud Life, and Spud Factory, have since popped up nationwide, each hoping to carve out a slice of the viral food trend.

For now, The Spud Father says it will continue trading — but under a new name.

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SpudBros blasted for ‘bullying’ small UK business in name dispute

The new home secretary Shabana Mahmood has admitted that the Home Office is “not yet fit for purpose” and has repeatedly failed to rise to the scale of multiple crises — from illegal migration to asylum accommodation and internal leadership churn.

In an interview with the BBC during a police operation in south London targeting illegal workers, Mahmood acknowledged deep-rooted problems in the department she inherited last month, including contract mismanagement, staff retention, and an overstretched enforcement system.

“The Home Office obviously deals with emergency and crises issues on a regular basis, and over a long period of time has been found not to be able to rise to the scale of the challenge,” Mahmood said. “We’ve got a range of problems — but I’m determined to deliver.”

Her comments come amid mounting pressure on the government to tackle both illegal working and the spiralling cost of asylum hotels, which a recent parliamentary report said had wasted “billions” of pounds.

Mahmood insisted that the government’s crackdown on illegal employment was beginning to show results, with 8,232 arrests made over the past year — a 63% increase on the previous 12 months.

“The enforcement of our rules has been lacking — it wasn’t good enough or strong enough under the last government,” she said. “The law hasn’t kept pace with the changes in the way people get work. The numbers are still not where I want them to be, but they’re moving in the right direction.”

Despite the improved figures, BBC cameras following enforcement officers in London found no illegal workers during two hours of spot checks — a reminder, critics say, of the scale of the enforcement challenge in sectors such as food delivery and logistics.

Ministers believe tougher workplace checks will reduce “pull factors” for people entering the UK illegally, particularly through small boat crossings.

The Home Office’s use of hotels to house asylum seekers has become one of its most politically and financially toxic issues. Mahmood described them as “a blight on our communities” and confirmed she intends to move some migrants into military sites in Inverness and East Sussex by the end of the year.

“We are working at pace to deliver new sites,” she said. “I hope to be within two new military sites by the end of the year. Discussions are well advanced in terms of planning for those moves.”

Pressed on whether the new accommodation plan would save taxpayers money, Mahmood would not commit — but said she was reviewing “all options” in existing hotel contracts, including possible break clauses next spring.

“I will need to look very carefully at the legal arrangements in those contracts,” she said, “and act in the best interests of our country and our taxpayers.”

Mahmood’s comments came just days after the mistaken release of Hadush Kebatu, an asylum seeker convicted of multiple sexual assaults, who was later deported to Ethiopia. The case has reignited anger over the Home Office’s handling of asylum accommodation and offender management.

Neil Hudson, Conservative MP for Epping Forest, said the community was “relieved” by Kebatu’s deportation but condemned the government’s decision to reopen the Bell Hotel — where Kebatu had been housed — as “incredibly frustrating”.

“The hotel needs to be closed — it’s the wrong place, near the forest and two schools,” he said.

The opposition has also faced renewed attacks over its immigration stance. Conservative leader Kemi Badenoch said Labour’s decision to scrap the Rwanda deportation scheme had “removed deterrence” and claimed that small boat crossings have risen 40% since the policy was dropped.

Mahmood did not directly respond to those figures but said enforcement reform and international cooperation — including a “one in, one out” arrangement with France — would be central to her migration strategy.

The home secretary’s frank admission that the department is “not yet fit for purpose” is the clearest signal yet that the new government intends to restructure the Home Office’s culture and systems. She confirmed she is working closely with Antonia Romeo, the department’s newly appointed permanent secretary, to tackle inefficiencies and stabilise senior leadership turnover.

Analysts say Mahmood’s challenge mirrors that faced by her predecessors: a department burdened by crisis management, political volatility, and a patchwork of overlapping responsibilities spanning immigration, policing, counter-terrorism and national security.

The question now is whether the new home secretary can succeed where others have stumbled — turning an embattled bureaucracy into a department capable of both strategic reform and operational delivery.

“This department has to be able to meet the moment,” Mahmood said. “I’m not under any illusions about how hard that will be — but we have to get this right.”

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Mahmood admits Home Office ‘not fit for purpose’ amid crises and staff exodus