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The price of gas has rocketed in recent weeks, putting several energy suppliers out of business and prompting warnings of food shortages in UK supermarkets.

Wholesale gas prices have soared by 250% since the beginning of the year, including a 70% rise since August, according to the Oil & Gas UK trade body.

So why is this happening and how is it disrupting the country’s food supplies?

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Wholesale gas prices have soared by 250% since January

How reliant is the UK on gas?

The gas market is crucial to the UK’s energy supply because of its role in heating, industry and power generation.

More than 22 million households are connected to the gas grid, the UK government says.

In 2020, 38% of the country’s gas demand was used for domestic heating, 29% for electricity generation and 11% for industrial and commercial use.

So why have wholesale gas prices increased?

One of the main reasons is an “uptick” in global gas demand as economies reopen after COVID lockdowns, according to the government.

It says this, combined with a cold winter in 2020-21 which prompted higher demand, has led to a “much tighter gas market with less spare capacity”.

Speaking on a visit to New York, Prime Minister Boris Johnson admitted there were “a lot of short-term problems” caused by gas supply shortages, but he added: “This is really a function of the world economy waking up after COVID.

“This will get better as the market starts to sort itself out, as the world economy gets back on its feet.”

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Energy boss: It’s ‘crunch time’ for many small providers

Russia accused of acting to push up gas prices

The European Commission has been asked to investigate the role of Russia’s state-backed gas company Gazprom in soaring gas prices across the continent.

A group of 40 MEPs has said the company’s behaviour had made them suspect market manipulation to push up gas prices.

In a letter, the MEPs said they were suspicious of Gazprom’s “effort to pressure” Europe to agree a fast launch to its Nord Stream 2 gas pipeline, which still has to clear regulatory hurdles that could take months to complete.

Workers at the construction site of the Nord Stream 2 gas pipeline
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Workers at the construction site of the Nord Stream 2 gas pipeline

The MEPs cited incidents including recent shut-ins of some of Gazprom’s production and said the company had refused to book gas transport capacities through existing pipelines.

“All these factors allow to suspect that the record natural gas price surge in Europe in the recent weeks may be a direct result of Gazprom’s deliberate market manipulation,” the letter said.

In response to the accusations, Gazprom said it supplied its customers with gas in full compliance with existing contracts.

The European Commission said it had received the letter and would reply in due course.

UK’s wind power hit by calmer weather

Calm weather over the past two weeks has cut output from the UK’s 11,000 wind turbines, which account for more than 20% of electricity generation, according to Bloomberg.

It has meant that demand for natural gas to produce electricity has increased and Britain has turned to coal-burning stations to fill the energy shortfall.

The UK aims to become a leading provider of wind power
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Calm weather has reduced the UK’s wind power in recent weeks

Are there other reasons behind the gas price rise?

Other factors include high demand in Asia for liquified natural gas which has meant less than expected has reached Europe.

In the UK, several gas platforms in the North Sea have also closed for maintenance that was paused during the pandemic.

Meanwhile, cables that import electricity from France were damaged last week following a fire.

The National Grid said its site at Sellindge in Kent was evacuated following the blaze on Wednesday morning.

The fire and planned maintenance means it will be offline until 25 September and only half of its two gigawatt capacity available until March 2022.

A fire broke out at the National Grid site in Sellindge, Kent
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A fire broke out at the National Grid site in Sellindge, Kent

Why have food suppliers been hit?

The steep rise in gas prices has caused two large fertiliser plants in Teesside and Cheshire which produce carbon dioxide (CO2) as a by-product to shut, hitting supply to the food industry.

CO2 is used in the humane slaughter of livestock and to extend the shelf-life of products. It is also vital to cooling systems for refrigeration purposes, industry leaders have said.

Producers have warned that supplies of meat, poultry and fizzy drinks could all be hit due to the shortage of CO2.

Nick Allen, chief executive of the British Meat Processors Association, has said the country could be two weeks away from British meat disappearing from supermarket shelves.

An empty freezer section at a Sainsbury's supermarket in Durham
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An empty freezer section at a Sainsbury’s supermarket in Durham

He told Sky News: “The meat industry, in particular the pig and poultry industry, use CO2 for humane slaughter. Eighty per cent of pigs and poultry are slaughtered using that process.

“CO2 is a by-product of fertiliser. Those plants closed, and they account for about 60% of the CO2 produced in this country. They closed at very short notice with no warning. It really hit us cold.”

Mr Allen said meat manufacturers have said they have between five and 15 days’ supply left.

He added: “Then they will have to stop. That means animals will have to stay on farms. That will cause farmers huge animal welfare problems and British pork and poultry will stay off the shelves. We’re two weeks away from seeing some real impact on the shelves.”

CO2 is used in the humane slaughter of livestock
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CO2 is used in the humane slaughter of livestock

Ranjit Singh Boparan, the owner of Bernard Matthews and 2 Sisters Food Group, said supply issues, as well as a shortage of workers, will affect the supply of turkeys for Christmas.

He said the supply of turkeys was “already compromised” as he needed to find an extra 1,000 workers to process supplies.

“Now with no CO2 supply, Christmas will be cancelled,” he added.

“The CO2 issue is a massive body blow and puts us at breaking point, it really does – that’s poultry, beef, pork, as well as the wider food industry.”

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Angela Rayner: The working-class mum who went from union rep to Labour big-hitter

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Angela Rayner: The working-class mum who went from union rep to Labour big-hitter

Leaving school aged 16, pregnant and with no qualifications, Angela Rayner has had a meteoric rise to the second-highest office in the UK – and a spectacular fall from grace.

Sir Keir Starmer’s right-hand woman has now resigned after she admitted to Sky News political editor Beth Rigby she had not paid enough stamp duty on a second home she bought in Hove, East Sussex, earlier this year.

Politics latest: Angela Rayner resigns

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Rayner admits she didn’t pay enough tax

Growing up in poverty on a council estate in Stockport, Greater Manchester, Angela Bowen (her maiden name) and her two siblings were brought up by her grandmother, as her mother had bipolar disorder. She has said they had no books because her mother could not read or write.

She left school at the age of 16, without any qualifications, after becoming pregnant and has said her son, Ryan, “saved me from where I could have been, because I had a little person to look after”.

The teenage mother, now 45, studied part-time and gained a qualification in social care, working for Stockport Council as a care worker.

She entered politics when she was elected as a Unison trade union representative and then convenor of Unison North West – the region’s most senior official, becoming a Labour Party member during her time there.

Angela Rayner in 2016, a year after becoming an MP
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Angela Rayner in 2016, a year after becoming an MP

She married Unison official Mark Rayner in 2010 and they had two sons, Charlie and Jimmy. Charlie, now 17, was born at 23 weeks old and is disabled.

In 2017, her eldest son Ryan had a son, making Ms Rayner a grandmother at the age of 37. She gave herself the nickname “Grangela”.

She and her husband separated in 2020 and their divorce was completed in 2023. Since 2022, she has been in a relationship with former Labour MP Sam Tarry, with a break in 2023.

Pic: PA
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Pic: PA

NHS compensation and a trust

Days before her resignation, she revealed compensation was paid to Charlie by the NHS due to the circumstances around his birth, which left him with “life-long disabilities”.

A trust was set up to manage the compensation and to ensure her son was properly looked after, and so that he and his brother could remain living in their family home in Ashton-under-Lyne as part of a “nesting arrangement”, where children of divorced parents live in one house while parents take it in turn to stay there.

She said she sold her stake in that home to the trust in January this year and used that money as a deposit on the Hove flat.

The Labour MP said she was given legal advice that the coastal flat did not have to be considered as a second home for stamp duty but sought further legal counsel after media reports claimed she avoided £40,000 in stamp duty.

Her initial lawyers said they never gave her tax advice and said they were being made “scapegoats”.

Ms Rayner gave a tearful interview to Sky’s Beth Rigby before her resignation, telling the Electoral Dysfunction podcast she had spoken to her family about “packing it all in”.

MP to Labour deputy in five years

Ms Rayner rose up the Labour ranks quickly after becoming an MP for Ashton-under-Lyne in 2015.

She was made deputy Labour Party leader in 2020 and was made deputy prime minister and housing, communities and local government secretary after last summer’s general election.

A self-described socialist, “but not a Corbynite” (in her own words), she became well known for calling the Conservatives “scum”, for which she eventually apologised after initially refusing to.

Pic: Reuters
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Pic: Reuters

Council house and donor controversies

During last summer’s election campaign, Ms Rayner was investigated by Greater Manchester Police over allegations she misled tax officials in the sale of her council house in 2015 under the right to buy scheme.

She was cleared of any wrongdoing and HMRC concluded she did not owe any capital gains tax. She accused the Tories of using “desperate tactics” against her and went on to win her seat with a 19.1% majority.

Not long after becoming deputy PM and housing secretary, she was embroiled in another scandal in which she was accused of failing to properly register her use of Labour peer Lord Waheed Alli’s $2.5m New York apartment and being given clothes worth £3,550 by him.

She later announced she would no longer accept clothes from donors.

Sir Keir Starmer and Angela Rayner during a visit to a construction site in Cambridge. Pic: PA
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Sir Keir Starmer and Angela Rayner during a visit to a construction site in Cambridge. Pic: PA

Building pledge

One of the Labour government’s biggest pledges was to build 1.5m new homes in this parliament and, as housing secretary, this came under Ms Rayner’s remit.

Sir Keir admitted in December the pledge might be “a little too ambitious”.

Ms Rayner was warned by some of the UK’s biggest developers there was not enough skilled labour to get anywhere near that target, but she has insisted it will happen.

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‘House building target is achievable’

She also led the charge to overhaul planning rules, announcing planning officers would be able to rubberstamp development proposals without permission from council committees if they complied with locally agreed plans.

The changes will be made through the planning and infrastructure bill, which was introduced to parliament in March and is making its way through the Commons.

It also promises to unblock 150 infrastructure projects, such as gigafactories, windfarms and railways, while protecting the environment and nature by setting up a fund to help builders meet their environmental obligations faster by pooling contributions to fund larger nature protections

Right to buy

In February, somewhat controversially given she bought the council house she grew up in, Ms Rayner announced it would be harder for tenants to buy their own council homes to help reverse the housing stock shortage.

She also announced “Awaab’s Law” – introduced by the Conservatives in 2023 and named after two-year-old Awaab Ishak, who died from damp and mould – would come into force in October 2025, forcing social housing landlords to fix dangerous damp and mould in a set amount of time and emergency hazards within 24 hours.

In her role as deputy PM, Ms Rayner occasionally stood in for Sir Keir at Prime Minister’s Questions, one time facing Tory Oliver Dowden and saying it was the “battle of the gingers”.

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Katharine, Duchess of Kent, dies aged 92

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Katharine, Duchess of Kent, dies aged 92

The Duchess of Kent has died at the age of 92, Buckingham Palace has said.

Katharine – who became the oldest living member of the Royal Family when Queen Elizabeth II died in 2022 – was known for consoling Wimbledon finalists, notably a tearful Jana Novotna in 1993.

A skilled pianist, organist and singer, she dropped her HRH style, preferring to be known as Mrs Kent, and retreated from royal life to spend 13 years teaching music at a primary school in Hull.

The duchess famously comforted emotional Wimbledon runner-up Novotna after the 1993 final. Pic: AP
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The duchess famously comforted emotional Wimbledon runner-up Novotna after the 1993 final. Pic: AP

The palace said in a statement on Friday: “It is with deep sorrow that Buckingham Palace announces the death of Her Royal Highness The Duchess of Kent.

“Her Royal Highness passed away peacefully last night at Kensington Palace, surrounded by her family.

“The King and Queen and all Members of The Royal Family join The Duke of Kent, his children and grandchildren in mourning their loss and remembering fondly The Duchess’s life-long devotion to all the organisations with which she was associated, her passion for music and her empathy for young people.”

The Union Flag at Buckingham Palace was lowered to half-mast as a mark of respect shortly after the duchess’s death was announced. A formal framed announcement is displayed on the palace railings.

Katharine meeting Nelson Mandela in 1998. Pic: PA
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Katharine meeting Nelson Mandela in 1998. Pic: PA

The duchess, who volunteered for Unicef, is greeted in northern India in 1996. Pic: PA
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The duchess, who volunteered for Unicef, is greeted in northern India in 1996. Pic: PA

An online condolence book will be available in the coming days and funeral details will be announced in due course.

Katharine married Prince Edward, the Duke of Kent – who is the cousin of the late Queen Elizabeth II – in a grand ceremony at York Minster in 1961.

The couple have three surviving children, George, Earl of St Andrews, Lady Helen Windsor, and Lord Nicholas Windsor.

Read more:
Angela Rayner resigns
Three Britons among Lisbon crash fatalities

The Duke and Duchess of Kent at their York Minster wedding. Pic: PA
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The Duke and Duchess of Kent at their York Minster wedding. Pic: PA

The duchess suffered heartbreak when she was forced to have a termination after catching German measles while pregnant in 1975. Two years later, she endured the devastation of giving birth to a stillborn son, Patrick.

She led a separate life from the Duke of Kent for many years but the couple did not divorce – and were said to be closer than ever after Edward suffered a stroke in 2013, which prompted his wife to move back into their Kensington Palace home.

Katharine’s famous Wimbledon moments

Her appearances at Wimbledon, where she presented the winners’ trophies, became a familiar feature of the summer sporting calendar.

Venus Williams receives the women's singles trophy from the duchess in 2001. Pic: Reuters
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Venus Williams receives the women’s singles trophy from the duchess in 2001. Pic: Reuters

In 1993, she put royal formalities and protocol aside to hug tearful runner-up Jana Novotna after she lost the ladies’ singles final to Steffi Graff.

Her relationship with Wimbledon authorities later soured, when she was refused permission to take the young son of murdered headmaster Philip Lawrence into the royal box at the tournament.

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Three British nationals among those who died in Lisbon funicular crash

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Three British nationals among those who died in Lisbon funicular crash

Three British nationals are among the 16 who died after the iconic Gloria funicular in Lisbon derailed and crashed, authorities have said.

The crash, which also left 22 people injured, happened at around 6pm on Wednesday.

Footage showed one of the railway’s two carriages practically destroyed and emergency workers pulling people out of the wreckage.

Read more
Everything we know about the Lisbon crash so far

So far, the nationalities of 11 of the people who died have been released by the authorities. They are: five people from Portugal, including four workers at a charity based near the funicular, three from Great Britain, two from Korea, and one person from Switzerland.

Brakeman Andrew Marques is the only person killed to have been identified so far.

All but one of the victims was declared dead at the scene, with the other dying of their injuries in hospital.

Sky News has contacted the UK Foreign, Commonwealth and Development Office for further information on the three British victims.

A spokesperson for Prime Minister Sir Keir Starmer said he is “deeply saddened” to hear of the British nationals who have died.

“His thoughts are with families and those affected,” they said. “We stand united with Portugal during this time.”

Emergency workers scramble to rescue people at the scene. Pic: Enex
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Emergency workers scramble to rescue people at the scene. Pic: Enex

Majority of dead and injured foreign nationals

Among the injured are 12 women, seven men, and a three-year-old child, according to Portugal’s Civil Protection Authority.

Three who suffered injuries are from Portugal, two from Germany, one from Spain, one from Korea, one from Cape Verde, one from Canada, one from Italy, one from France, one from Switzerland, and one from Morocco.

According to CNN Portugal, the two from Germany were the three-year-old child and his mother, who were both pulled from the wreckage.

The lower carriage in the foreground with the remains of the one that crashed further up the hill in Lisbon. Pic: AP
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The lower carriage in the foreground with the remains of the one that crashed further up the hill in Lisbon. Pic: AP

The Gloria funicular connects Lisbon's Restauradores Square to the Bairro Alto viewpoint
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The Gloria funicular connects Lisbon’s Restauradores Square to the Bairro Alto viewpoint

The Gloria funicular is hugely popular with tourists and classified as a national monument.

Its journey between Restauradores Square in downtown Lisbon and the Bairro Alto neighbourhood is just 265m (870ft) and three minutes long, but climbs up a steep hill, with two carriages travelling in opposite directions.

It was believed to be operating at full capacity as rush hour began in the Portuguese capital on Wednesday evening when the top car hurtled down the hill, left the tracks, and crashed into a building 30m (98ft) from the bottom.

According to the people who were in the lower carriage, a few metres into their ascent, it started going backwards. When they saw the other car speeding towards them, they jumped through the windows to escape.

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Lisbon funicular crash: ‘We felt no brakes anymore’

Preliminary crash report due on Friday

It is not clear what caused the crash.

The Portuguese government office for air and rail accident investigations said it has completed its analysis of the crash site and will release a preliminary report on Friday.

One eyewitness who was in the lower carriage told Sky’s Europe correspondent Alistair Bunkall that the brakes appeared to fail.

Engineer Dave Cooper told Sky News on Thursday that the two carriages may have become detached from one another because of a fault with the cables.

The second carriage is lifted from the crash site to be removed overnight on Thursday. Pic: Reuters
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The second carriage is lifted from the crash site to be removed overnight on Thursday. Pic: Reuters

The funicular tracks empty after both carriages were removed overnight on Thursday. Pic: AP
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The funicular tracks empty after both carriages were removed overnight on Thursday. Pic: AP

Flowers for the victims at the foot of the hill where the funicular is in downtown Lisbon on Friday. Pic: AP
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Flowers for the victims at the foot of the hill where the funicular is in downtown Lisbon on Friday. Pic: AP

Emergency services and engineers worked throughout the night on Thursday to remove both carriages from the site, while the other two funiculars in the city remained closed until the crash investigation concludes.

A mass was held, attended by Portuguese Prime Minister Luis Montenegro and Lisbon mayor Carlos Moedas, in memory of the victims at a nearby church on Thursday evening.

Lisbon declared three days of municipal mourning, while Portugal observed a national day of grief on Thursday.

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