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A top figure in the haulage industry has told Sky News that deploying army personnel to help tackle the HGV driver shortage “will not scratch the surface” of the UK’s delivery crisis.

A Government spokesperson said:

“The recent pandemic has proven that the UK has a large, diverse and highly resilient food supply chain that has coped well in responding to unprecedented challenges.

“We are working closely with the haulage industry to understand and address recent pressures. There is no suggestion of using military support at this time and no requests have been made.”

Richard Burnett, who heads the Road Haulage Association (RHA), was responding to reports the government was set to call on HGV specialists from the military, including the Royal Logistics Corps, in an effort to tackle a deteriorating backlog of goods that has seen some supermarket shelves run bare in recent weeks.

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There are potentially 2,000 drivers who could take up some of the slack but both the Department for Transport (DfT) and Ministry of Defence (MoD) have signalled that no official request had yet been made.

Army trucks will be used to distribute protective equipment to NHS staff as the supply chain struggles to cope
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The drivers of Army trucks, such as this one, are trained to full industry standards

Mr Burnett said that 40% of the number were part of the Territorial Army – reservists – and suggested that even the military could do little to alleviate the scale of the industry’s immediate challenges which had been made more difficult by the summer holidays.

The RHA has blamed the COVID crisis for the bulk of its problems – with many drivers returning home to European countries at the start of the pandemic never to return because of Brexit and disruption to driver tests during the pandemic holding back replacements.

The body RHA estimates the shortfall of drivers at 100,000 and has demanded the government relax Brexit immigration rules to allow foreign talent to return on a temporary basis.

It is a plea that has, so far, fallen on deaf ears in Whitehall – with government assistance to date including a relaxation of rules governing drivers’ working hours and promises of a more streamlined testing system to aid recruitment.

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Hauliers warn against extending working hours

The job has become more attractive salary-wise in recent months as a growing number of firms offer up-front bonuses and wage uplifts in an effort to attract and retain staff respectively.

But Mr Burnett warned that even with any military assistance, the UK was still heading for a winter of worsening disruption as the busy Christmas season loomed.

He said: “This really isn’t going to scratch the surface at all or give any reassurance that as things get worse during the summer, as drivers take more holidays and we’ve got no drivers to backfill, that this is really a resolution to the problem at all.”

He added: “We’re seeing the impact in the supermarkets, drivers that drive refuse vehicles are being attracted away by higher wages in many sectors, that’s going to mean difficulties in terms of collecting waste.”

Mr Burnett pointed to containers “stacking up” at ports as evidence the backlog was getting worse.

“We really need government to wake up and realise that the only short term solution here is to address this through the Home Office shortage occupation list and with temporary visas to allow us in the short-term additional labour in while we train a UK based workforce which is going to take at least 18 months to tackle.”

A government spokesperson responded: “The recent pandemic has proven that the UK has a large, diverse and highly resilient food supply chain that has coped well in responding to unprecedented challenges.

“We are working closely with the haulage industry to understand and address recent pressures.

“There is no suggestion of using military support at this time and no requests have been made.”

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Daily Mail owner lines up NatWest to help fund £500m Telegraph bid

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Daily Mail owner lines up NatWest to help fund £500m Telegraph bid

The owner of the Daily Mail is lining up one of Britain’s biggest high street lenders to help bankroll its £500m deal to buy The Daily Telegraph.

Sky News has learnt that DMGT has turned to its long-standing bank, NatWest Group, to lend a substantial chunk of the Telegraph purchase price.

City sources said on Thursday that discussions between the two were still in progress.

It was unclear how much of the consideration NatWest might finance, or how much equity DMGT intended to put up as part of the deal.

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Last month’s announcement that DMGT was in exclusive talks to buy Telegraph Media Group achieved a long-standing ambition of the Mail proprietor, Lord Rothermere, to own the rival right-leaning newspaper.

However, the transaction still needs to be formally submitted to the culture secretary, Lisa Nandy, who has effectively asked for details of the proposed deal by early next week.

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Lengthy inquiries by the Competition and Markets Authority and Ofcom are also expected to follow.

DMGT’s exclusivity period came within days of a consortium led by RedBird Capital Partners abandoning its own deal amid opposition from within the Telegraph newsroom.

NatWest’s position as a principal lender would, in theory, be advantageous to Lord Rothermere, who will not want to be reliant on overseas financing for the deal.

The DMGT owner had originally intended to acquire a minority stake of just under 10% in the Telegraph titles as part of the RedBird-led transaction.

A previous deal proposed by a consortium including RedBird and the Abu Dhabi state-owned investment firm IMI collapsed after the government changed the law regarding foreign state ownership of national newspapers.

“I have long admired the Daily Telegraph,” Lord Rothermere said last month.

“My family and I have an enduring love of newspapers and for the journalists who make them.

“The Daily Telegraph is Britain’s largest and best quality broadsheet newspaper, and I have grown up respecting it.

“It has a remarkable history and has played a vital role in shaping Britain’s national debate over many decades.”

If the deal is completed, it would bring the Telegraph newspapers under the same stable of ownership as titles including Metro, The i Paper and New Scientist.

DMGT said in November that it planned “to invest substantially in TMG with the aim of accelerating its international expansion”.

“It will focus particularly on the USA, where the Daily Mail is already successful, with established editorial and commercial operations.”

NatWest declined to comment.

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OpenAI bags Disney characters for Sora short video app

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OpenAI bags Disney characters for Sora short video app

OpenAI has signed its first major licensing deal to bring well-known characters to life on its Sora video generation tool.

The company said the agreement with Walt Disney was part of a push to ensure the rights of creators in the generative artificial intelligence (AI) space amid growing concerns over copyright, fakes and misinformation.

It forms part of a $1bn Disney investment in OpenAI, that will see the entertainment firm roll out ChatGPT to its staff and grow its AI capabilities.

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The initial three-year licensing deal will allow Sora users to generate and share videos based on more than 200 Disney, Marvel, Pixar and Star Wars characters.

These include Mickey Mouse, Cinderella and Luke Skywalker.

Sora allows people to quickly create realistic clips based merely on text prompts.

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Disney and OpenAI said they were committed to responsible use of AI amid the backlash from critics who have pointed to widespread misuse of generative AI in the social media space – a practice known as AI slop.

Some have depicted fake messages from celebrities and even used the dead.

OpenAI CEO Sam Altman said: “This agreement shows how AI companies and creative leaders can work together responsibly to promote innovation that benefits society, respect the importance of creativity, and help works reach vast new audiences.

His counterpart at Disney, Bob Iger, added that the partnership would “extend the reach of our storytelling through generative AI, while respecting and protecting creators and their works”.

As part of the deal, some user-generated Sora videos will be made available on the Disney+ streaming service.

Dan Coatsworth, head of markets at AJ Bell, said of the tie-up: “It’s a win-win situation for Disney and OpenAI. Disney gets to deploy its beloved brands in the world of AI while keeping control of the intellectual property.

“Fans can use Disney characters to make videos and take social media content to another level. That could drive significant traffic to OpenAI’s Sora social media platform, turning a relatively unknown entity into a household name in a flash.

“As part owner of the business, Disney will be able to use the equity stake in OpenAI to ensure its characters are used in a controlled environment.

“It’s a significant step forward for the concept of fan fiction”, he concluded.

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Burger King UK lands new backing from buyout firm Bridgepoint

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Burger King UK lands new backing from buyout firm Bridgepoint

The private equity backer of Burger King UK has injected millions of pounds of new funding as part of a deal which paves the way for their partnership to be extended into the 2040s.

Sky News understands that Bridgepoint has invested a further £15m into the fast food giant in recent days, with a further sum – thought to be up to £20m – to be deployed over the next 18 months.

The new funding has been committed as Burger King UK’s Master Franchise Agreement with a subsidiary of Restaurant Brands International has been extended to 2044 in a deal which is said to align the interests of its various financial stakeholders more closely.

Burger King’s British operations comprise roughly 575 outlets, and employ approximately 12,000 people.

In results released this week, Burger King UK said it had delivered a “solid performance…amid sector headwinds” in 2024.

Revenue increased by 7% to £408.3m, with underlying earnings before interest, tax, depreciation and amortisation up 12% to £26m.

The company also said it had completed a refinancing process, with the maturity of its bank facilities pushed out to March 2028.

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Under the leadership of Alasdair Murdoch, its long-serving chief executive, Burger King plans to open roughly 30 new sites next year.

It comes at a challenging time for the UK hospitality sector, with casual dining chains TGI Fridays and Leon both filing to appoint administrators in the last few days.

Industry bosses say that last month’s Budget has piled fresh cost pressures on them.

Bridgepoint declined to comment on the injection of new capital into Burger King UK.

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