Business

Virgin Media O2 has celebrated hiring its 1,000th apprentice with the release of a new short film, 1,000 Seconds of Impact, showcasing the transformative power of apprenticeships across the business.

The film features stories from current and former apprentices, highlighting their experiences, ambitions and the opportunities provided by the company’s award-winning early careers programme. The initiative is designed to help people from a wide range of backgrounds develop skills, build confidence and pursue long-term careers in the UK’s tech and telecoms industries.

The company’s 1,000th apprentice, Taylor Allanson, joined earlier this summer as a field technician based in South London.

“It’s amazing to be Virgin Media O2’s 1,000th apprentice – I feel really proud to be part of such an important milestone,” Allanson said. “Since starting, I’ve had the chance to learn new skills on the job, work alongside experienced colleagues, and build confidence in my role. Choosing an apprenticeship has been the right path for me, and I’m excited about the opportunities it will open up for my future.”

The milestone follows the launch of Virgin Media O2’s £1 million Apprenticeship Talent Fund, which allows charities, social enterprises, small businesses and local authorities to access the company’s levy funding. The scheme fully covers training costs for STEM-based apprenticeships, broadening access to opportunities and supporting the development of a diverse future workforce.

Karen Handley, head of future careers at Virgin Media O2, said the milestone demonstrates the power of apprenticeships to change lives: “Our apprentices bring fresh perspectives, ambition and energy to our business, and many have gone on to build inspiring careers with us. This film captures their stories and shines a light on the life-changing impact apprenticeships can have. By investing in early careers and creating opportunities for people from all backgrounds, we’re not only future-proofing our business but also helping to build a more diverse, inclusive and skilled workforce for the years to come.”

Investing in future talent

Virgin Media O2’s commitment to apprenticeships underlines its wider investment in digital skills and inclusion, as the company continues to support the UK’s drive to develop a highly skilled workforce in critical growth sectors.

The company’s early careers programme has won multiple awards for its focus on diversity, inclusion and long-term career development, with apprentices now playing a central role in helping Virgin Media O2 deliver its services across the country.

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Virgin Media O2 marks 1,000th apprentice milestone with new film

Parents and grandparents are shouldering an unprecedented £2.8 billion a year to support students through university, as the soaring cost of higher education leaves families footing the bill.

New research shows that 71 per cent of parents are either contributing, or planning to contribute, financially towards their children’s time at university. The average outlay per family now stands at £8,723 annually. With more than 328,000 students enrolling in UK universities this year, the financial burden on households has reached a record high.

The pressure is being fuelled by a combination of rising tuition fees, which are set to climb by 3.1 per cent this academic year, and living costs that far outpace the uplift in student maintenance loans. As a result, families are being called on to bridge the gap, covering everything from groceries and rent to utilities and academic supplies.

For many, these costs are becoming unsustainable. Meanwhile, graduates themselves are leaving university burdened with debts of around £50,000 on average – the heaviest debt levels faced by any generation. Loan repayments can stretch across decades, casting a long financial shadow over young people’s working lives.

Kevin Mountford, finance expert and co-founder of Raisin UK, warned that the financial strain is not confined to students. “The rising cost of university doesn’t just affect students, it places real financial pressure on parents and grandparents who are stepping in to help,” he said. “At the same time, everyday expenses from groceries to energy bills are climbing, stretching household budgets even further.”

Mountford urged families to prioritise savings despite the pressures of rising costs. “Building up savings wherever possible is so important. It gives families the peace of mind that they can support their loved ones today, while still protecting their own financial freedom for the future.”

The figures highlight how the cost-of-living crisis is reshaping the university experience. Once regarded as a personal investment in a student’s future, higher education is increasingly becoming a collective financial undertaking for entire families, raising questions about how sustainable the current system is for parents, grandparents and students alike.

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Parents fork out £2.8bn a year to plug university funding gap

AI adoption among large enterprises has dipped slightly, even as overall use of the technology continues to rise across the corporate landscape.

New figures from the US Census Bureau show that uptake among companies with more than 250 employees fell from a peak of around 14 per cent to 12 per cent in recent summer surveys.

The decline, though modest, points to hesitancy among larger businesses that have already committed billions to AI infrastructure, including data centres and rollout support. Analysts suggest the slowdown reflects frustration with unclear returns on investment.

Across all companies surveyed, however, adoption remains on an upward trajectory. The Bureau’s biweekly survey of 1.2 million US businesses found that 9.7 per cent of respondents had used AI in the past two weeks, up from 8.8 per cent previously. Forward-looking sentiment is also strengthening, with 13.7 per cent of companies expecting to adopt AI for producing goods or services within six months. Yet nearly two-thirds still report no plans to use AI at all, underscoring that mainstream adoption is still emerging.

Industry leaders caution that the figures do not mean companies are walking away from AI altogether. Sheila Flavell CBE, chief operating officer of FDM Group, said the dip demonstrates the limits of deploying AI without adequate training and strategy. “AI can only deliver value when people know how to use it effectively,” she explained. “When organisations implement practical, hands-on training, it builds confidence and helps employees understand how AI can support their roles.”

Others argue that security and governance remain pressing concerns. Andy Ward, senior vice-president international at Absolute Security, noted that over a third of chief information security officers have already banned tools such as DeepSeek, citing privacy and control risks. “AI can transform detection and response, but if it’s deployed without robust resilience strategies, real-time visibility and clear governance, it risks adding more vulnerabilities than it solves,” he said.

Some experts argue the Census Bureau’s methodology may understate true AI adoption because it counts only use in producing goods and services, excluding applications in marketing, administration and customer service. Analysts at UBS point out that, despite the recent dip, AI adoption overall is progressing more quickly than US e-commerce did in its first two decades.

But scepticism is growing around whether the scale of corporate investment is justified. Torsten Sløk, chief economist at Apollo Academy, has warned that the slowdown highlights caution among big corporates, while Arpit Gupta, associate professor at NYU Stern, suggested “trillions in AI capex should probably be reconsidered.”

A recent MIT report adds to the uncertainty, finding that 95 per cent of companies struggle to generate financial returns from AI. Together, these signals have fuelled speculation that an AI bubble could be inflating — with large enterprises pausing to reassess before committing to further rollouts.

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AI adoption stalls in large enterprises as doubts grow over returns

A UK startup has unveiled a new platform designed to transform how IT consultancies use and share talent, amid rising concerns about wasted skills and soaring recruitment costs.

BenchBee, launched today in London, describes itself as the first talent sharing economy for IT consultancies. The platform enables firms to monetise idle consultants, cut recruitment fees and respond more quickly to project demands by subcontracting skills within a trusted, member-driven network.

Founder and chief executive Hassen Hattab said the initiative was designed to disrupt traditional recruitment models. “This isn’t just another job board – it’s an entirely new category of talent sharing,” he explained. “We’ve created a member-driven ecosystem where consultancies can match available talent to project needs in real time and access hidden talent pools that traditional recruitment can’t reach.”

According to IDC, IT skills shortages will affect 90 per cent of organisations by 2026, costing the global economy an estimated $5.5 trillion (£4.18 trillion). In the UK alone, consultants spend on average 15–20 per cent of their time ‘on the bench’ – employed but not generating revenue.

For a consultancy with 500 consultants, this equates to £15.3 million a year in lost revenue, while across the industry the total climbs to £3.06 billion annually.

Traditional recruitment, meanwhile, is proving increasingly inadequate. Agencies typically charge 15–20 per cent placement fees on inflated salaries, but often fail to deliver the specialist skills required at speed. As a result, companies face a choice between paying steep fees, gambling on unvetted freelancers, or leaving projects under-resourced while skilled consultants sit idle elsewhere.

A new model for sharing expertise

BenchBee’s platform offers an alternative by enabling vetted consultancies to subcontract available consultants within a secure network. A flat membership fee replaces commission-based recruitment costs, while members gain real-time access to pre-qualified, industry-experienced professionals.

By creating what it calls a “talent sharing economy”, BenchBee aims to address three of the industry’s biggest challenges: monetising underused consultants, accessing hidden talent pools, and eliminating recruitment inefficiencies.

Hattab said the model reflects the realities of the modern IT consultancy sector. “After more than a decade in the industry, I kept seeing the same problem. One organisation has brilliant people on the bench. Another is losing work because of a lack of skills. BenchBee directly connects those dots.”

With hiring freezes, budget cuts and skills shortages squeezing consultancies, BenchBee argues its approach offers firms a way to protect margins and accelerate delivery.

“This isn’t better recruitment, it’s a completely different approach,” Hattab added. “It’s a smarter way for companies to collaborate, share expertise and uncover underused talent. This is talent sharing for the real world: faster, leaner and built around how consultancies actually operate.”

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UK startup set to tackle £3bn IT skills gap

Dragons’ Den investor Touker Suleyman has emerged as one of the leading contenders to acquire the UK arm of Claire’s out of administration, with a proposal understood to preserve the Birmingham head office and a significant proportion of the store estate.

The bid is being weighed against rival interest from Modella Capital and Doug Putman, the Sunrise Records owner who rescued HMV in 2019.

Claire’s entered administration on 13 August 2025, placing 2,150 jobs and 306 stores (278 in the UK, 28 in Ireland) at risk. Interpath Advisory is keeping shops open while a buyer is sought, though online sales have been suspended during the process.

Modella Capital, which has tabled an offer for Claire’s UK according to Sky News, has been one of the most active retail investors of the past two years. It bought Hobbycraft from Bridgepoint in 2024 and this year acquired WH Smith’s UK high‑street business, now being rebranded TG Jones.

Modella also worked with fellow Dragon Sara Davies to rescue Crafter’s Companion in January via a pre‑pack deal handled by Interpath. In August, Maven Capital Partners became majority owner, with Davies increasing her stake after Modella exited.

The UK sale process is unfolding as Claire’s North American assets and intellectual property are set to transfer to Ames Watson under a deal announced on 20 August and now before the US and Canadian courts. Any UK transaction is therefore expected to require coordination with Ames Watson as IP owner.

Administrators at Interpath are running a competitive auction. Hilco Capital has re‑entered the frame after initially stepping back, adding to a crowded field of suitors.

The UK business recorded a pre‑tax loss of £4m on £137m of sales in the year to 3 February 2024. Globally, Claire’s operates in 17 countries with a store base previously cited at roughly 2,750. The group attributes its difficulties to intensified competition, shifting consumer spending and the migration away from pure bricks‑and‑mortar retail.

What happens next: Interpath is expected to prioritise bids that preserve the most jobs and stores while aligning with Ames Watson’s North American carve‑out. Any winning bidder would also need to negotiate the inherited lease liabilities across the UK and Ireland—an area likely to dictate how many shops ultimately survive.

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Touker Suleyman joins race to rescue Claire’s UK as Modella and HMV owner circle

The UK must do more to attract Chinese foreign direct investment (FDI) if it is to support business growth and maintain global competitiveness, according to leading audit and advisory firm Blick Rothenberg.

Partner Winnie Cao pointed to fresh data from China’s Ministry of Commerce showing that, by the end of 2024, Britain accounted for just 9 per cent of China’s existing investment in developed economies. This places the UK behind the European Union, the United States and Australia. She said the figures underlined the urgent need for Britain to align its policy and regulatory framework with China’s appetite for long-term investment.

Cao argued that the UK must focus on making its tax system more attractive to global investors, easing barriers in its visa regime, and ensuring its infrastructure is fit for purpose. She suggested that lowering corporation tax and extending the Foreign Income and Gains regime for expats from four to ten years would send a strong signal to international businesses. At the same time, she warned that rising salary thresholds in the visa system risk deterring global companies from setting up in Britain, while unreliable transport infrastructure continues to undermine confidence in the business environment.

Despite these challenges, Cao noted that relations between London and Beijing appear to be improving. The UK has been chosen as Guest Country of Honour at the 25th China International Fair for Investment and Trade (CIFIT) in Xiamen, which takes place from 8 to 11 September. Britain will use the event to showcase its strengths in high technology, healthcare and life sciences, financial and professional services, creative industries and clean energy.

The Government is also stepping up engagement at the highest levels. On 10 September, the new Business Secretary, Peter Kyle, will travel to Beijing for trade talks. His visit will coincide with the China International Fair for Trade in Services (CIFTIS), one of the largest global trade fairs of its kind, where the UK is expected to highlight its world-leading services sector.

Cao said it was time to reshape and transform the UK’s relationship with China into something “meaningful and beneficial” for people and businesses in both countries. Without decisive action on tax, visas and infrastructure, however, Britain risks falling further behind its rivals in the race to secure Chinese investment.

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UK must attract more Chinese investment to support growth

The UK is set to get its first-ever “super-university” as the Universities of Kent and Greenwich prepare to merge from autumn 2026.

The new institution, to be called the London and South East University Group, will be led by a single vice-chancellor and operate across all existing campuses. This includes Medway, where both universities already share facilities such as the library, as well as Kent’s Canterbury base and Greenwich’s campuses on the Thames and in Avery Hill, south-east London.

The move has been welcomed by the Office for Students (OfS), which regulates higher education in England. It said the merger could provide a template for other universities as they grapple with mounting economic pressures. With 40% of English universities now in financial deficit, the OfS suggested more institutions may follow suit to safeguard their futures.

Both universities stressed this was not a takeover, nor prompted by an immediate financial crisis. Instead, they argue the new model will make them more resilient and financially viable in the long run.

Professor Karen Cox Harrington of Greenwich said the two institutions had already worked together for 20 years in Medway and now wanted to go further: “This is about taking the best of both universities and asking what we want to offer our communities.”

Professor Catherine Randsley de Moura of Kent described it as a “trailblazing model”, insisting that both Kent and Greenwich would retain their names, identities, and campuses under the new structure.

For students, the merger will mean no immediate changes: applications will continue as normal to each university, and degrees will still be awarded in the name of Kent or Greenwich. Students enrolling this autumn have been reassured they will complete their chosen course as planned.

However, staff may feel anxious. Both universities have already faced job cuts in recent years: Greenwich confirmed in May it would reduce the equivalent of 15 full-time posts, while Kent has started phasing out some courses after posting a deficit in 2024. While leaders said there were no immediate plans for job losses, they acknowledged that savings would come through reducing senior roles.

The University and College Union (UCU) estimates around 5,000 higher education posts have already been lost across England in the last couple of years as institutions struggle to balance the books.

Mergers, once unusual, are becoming more common. Last year, City St George’s was created from two University of London colleges. But the Kent-Greenwich merger is on a far larger scale, involving two full-spectrum universities across a wide geographical area.

The merger comes at a turbulent time for UK higher education. Tuition fees rose to £9,535 this academic year, but their real value has eroded due to inflation and rising costs. International student numbers have also fallen short by 16% after the government introduced visa restrictions in 2024 limiting family dependents.

Universities UK chief executive Vivienne Stern called the merger “significant”, saying it reflected the urgent need for innovation: “The slow erosion of university finances must be stopped, and the government needs to step in with long-term solutions.”

Ministers are expected to set out proposals for university funding later this autumn, with reports that a 6% tax on international student income is being considered.

The Department for Education welcomed the merger, calling it an “innovative approach” to maintaining world-class teaching and research while protecting students.

A spokesperson for the OfS said: “In any merger, effective communication with students will be crucial. Current students will continue to study for the courses they signed up for, and should continue to expect excellent teaching and support.”

The creation of the London and South East University Group will be closely watched by other institutions considering whether collaboration—or even consolidation—could be the answer to the growing financial storm facing higher education in England.

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UK’s first ‘super-university’ to launch in 2026 as Kent and Greenwich merge

The separate tax controversies involving Premier League footballers and former deputy prime minister Angela Rayner should serve as a “wake-up call” about the importance of taking sound, professional advice, a senior tax expert has warned.

Steven Martin, senior tax manager at Hampshire-based accountancy and business advisory firm HWB, said the two cases – though very different in scope – highlight the serious financial, legal and reputational consequences of inadequate or incomplete guidance.

“While they differ, as one concerns Stamp Duty only and the other is about wider tax planning and investment strategy, they both underline why trusted, reliable guidance is more crucial than ever,” Martin said.

He added: “Missteps, even unintentional, can have serious consequences. Sound advice isn’t just about minimising tax; it’s about ensuring compliance, protecting assets and making informed, ethical decisions in an increasingly scrutinised financial environment.”

The so-called V11 case saw a group of former Premier League players lose fortunes after investing in tax-avoidance schemes dressed up as film funds and US property ventures. Many of the ventures collapsed, leaving players saddled with significant tax liabilities. Some were pushed into bankruptcy, while others faced lengthy legal battles with HMRC.

“These were persuasive, high-risk investments presented by advisors without the appropriate expertise,” Martin said. “The players relied on assurances without fully understanding the risks.”

By contrast, the Angela Rayner case involved a much narrower issue – Stamp Duty Land Tax (SDLT). Following legal review, she was found liable for the higher, second-home rate of SDLT on her Hove property, resulting in an underpayment of around £40,000. The fallout from the case ultimately led to her resignation from government last week.

“This was a case of insufficient or inappropriate guidance on a specific area of tax law, particularly around trusts,” Martin said. “It illustrates how even a seemingly straightforward transaction can carry risks if advice lacks depth or understanding of the client’s full circumstances.”

While the two controversies differ in context, Martin said they both point to the same conclusion: “unqualified or incomplete advice in areas of complex tax or investments can be perilous.”

He stressed that individuals should always work with regulated, qualified professionals – and seek multiple perspectives when dealing with complex matters.

“Trusted advisors not only save money by ensuring correct decisions upfront, they also protect reputations,” Martin said. “Misplaced trust can mean the difference between a secure retirement and financial ruin.”

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Rayner and footballers’ tax troubles are a ‘wake-up call’, adviser warns

Five years after Britain’s departure from the European Union, the UK’s automotive sector continues to prove its global weight, generating £115 billion in imports and exports last year, according to the Society of Motor Manufacturers and Traders (SMMT).

The industry is on track to deliver more than £110 billion in trade for the third year running, despite grappling with new tariff barriers, customs costs, protectionism and geopolitical tensions. Yet the trade body warns that unresolved Brexit complications, combined with looming rules of origin requirements for electric vehicle (EV) batteries, could put this growth at risk.

While global trading patterns have shifted since 2020, the UK remains deeply intertwined with Europe. Last year, £68.4 billion in automotive trade flowed across the Channel, representing almost 60% of the UK sector’s total trade value. More than half of all UK-built cars are still exported to the EU, while the vast majority of new cars sold in Britain come from European factories.

EVs are increasingly driving this activity. Cross-border trade in electrified vehicles has surged by 424% since 2019, climbing from £4.6 billion pre-pandemic to nearly £24 billion in the 12 months to June 2025. Exports of UK-made hybrids and EVs to the EU now outweigh internal combustion engine (ICE) models by two-to-one, while EU shipments of electric cars to the UK – worth £17.6 billion – have overtaken ICE exports for the first time.

That growth, however, faces a cliff edge. Under the terms of the EU–UK Trade and Cooperation Agreement (TCA), tougher rules of origin for EV batteries are due to come into effect from January 2027.

The rules require higher levels of local production of batteries and their components – but the industry says supply chains are not yet ready. Despite recent gigafactory investments in Somerset and Sunderland, and new capacity planned across Europe, battery production is lagging far behind demand.

If the UK and EU fail to adapt the rules, electrified cars, buses and commercial vehicles could face tariffs of between 10% and 22% when traded across the Channel. That would make EVs uncompetitive compared with petrol and diesel vehicles, which continue to enjoy 0% tariffs – precisely when manufacturers are legally required to sell increasing volumes of zero-emission models.

The SMMT has urged the government to work immediately with Brussels to agree a clearer definition for cathode active materials (CAMs), a key battery component whose status under the rules remains uncertain.

It also wants ministers to consult with business and push to re-join the Pan-Euro Mediterranean (PEM) Convention on rules of origin, which would expand flexibility by opening up preferential trade with 14 other countries while easing pressure on the EU–UK system.

Mike Hawes, chief executive of the SMMT, said the UK must strengthen its trading relationships if it is to stay competitive: “Despite the most difficult environment in decades, UK Automotive remains a powerhouse of global trade. But the global trading environment is getting tougher; more competition, more protectionism and more geopolitical tension. Forging closer trading relationships, notably with the EU, and implementing industrial and trade strategies with automotive at their heart will enable us to grow our economy, create thousands of highly skilled jobs, and lead the charge toward net zero.”

Brexit is no longer the only challenge facing the sector, but it has fundamentally altered conditions. Customs requirements, regulatory divergence and uncertainty about future rules have added costs at a time when manufacturers must commit billions to electrification.

With less than 16 months until the 2027 deadline, the industry warns that without urgent political action, the UK risks undermining one of its largest trading industries – and with it, the country’s ability to meet its net-zero ambitions.

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UK automotive sector drives £115bn trade five years after Brexit

Cefinn, the womenswear brand founded by Samantha Cameron, is to be wound down after years of losses, bringing an end to a label once worn by the Princess of Wales and Queen Camilla.

Launched in 2017 as “an urban uniform for busy women”, Cefinn never turned a profit and has struggled in recent years with wholesale upheaval, fragile consumer confidence and post-Brexit tariffs. The collapse of key stockist Matches—put into administration by Frasers Group last year—dealt a further blow, forcing Cefinn to pivot more heavily to direct-to-consumer sales.

In a statement, Cameron, 54, said closing the brand was a “very hard decision”, despite “recently strong trading figures”, citing “turbulence in the fashion wholesale sector, ongoing cost pressures and international trading restrictions”. She added: “I have found it increasingly difficult to be certain that Cefinn can achieve the level of growth needed to reach a stable and profitable position.”

Cefinn’s two London stores on King’s Road and Elizabeth Street will remain open in the short term to sell autumn and winter collections, and are expected to close before spring. The company’s 24 employees are set to receive redundancy packages and paid notice.

Sales fell 5% to £4.2m in the year to October, while pre-tax losses narrowed only marginally to £354,000 from £357,000. The brand—named after the initials of the Camerons’ children (Ivan, Elwen, Florence and Nancy)—produced around 30 collections and was worn by celebrities including Gillian Anderson, Gabby Logan and Holly Willoughby. A former creative director at Smythson, Cameron had positioned Cefinn as a designer label offering luxury-level cut and quality at mid-market prices, expanding into more casualwear during the pandemic.

Cameron has previously said Brexit made survival “challenging and difficult”, pointing to trading friction and costs on international sales. Reports suggest she was owed more than £100,000 following the Matches administration. Cefinn had earlier received a significant cash injection from Conservative donor Lord Brownlow in 2018; it is understood Cameron chose not to seek further outside investment.

“Our amazing customers have made every year rewarding; their styling of Cefinn, loyalty and lovely feedback has been a constant source of inspiration,” she said.

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Samantha Cameron to wind down Cefinn after years of losses