Immigration should be used to solve worker shortages in the UK and the government must be “practical” on the issue, the head of the CBI is expected to say.
Tony Danker, director general of the Confederation of British Industry, will urge politicians to allow migrant workers to take up hard-to-fill jobs.
Speaking later at the CBI conference, he will say: “Let’s have economic migration in areas where we aren’t going to get the people and skills at home any time soon. In return, let’s make those visas fixed term.”
Brexit stopped many foreign workers being able to easily work in the UK and companies are struggling to recruit – especially in industries such as hospitality which has relied heavily on European staff in recent years.
Despite four quarterly falls this year, overall vacancies remain high at more than 1.2 million.
In August to October 2022 they were 429,000 (54%) above pre-pandemic levels of early 2020, and 32,000 (2.7%) higher than a year ago, according to the Office for National Staistics.
The CBI boss is also expected to also urge changes to regulations and red tape, saying: “I know that some Conservative politicians today feel that this issue is the fault of Europe.
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“But the biggest regulatory barriers facing businesses today are based on British laws, created by a British parliament, and administered by British regulators.”
Chancellor’s statement ‘incredibly welcome’
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Prime Minister Rishi Sunak is expected to be in attendance at the Birmingham conference and give a speech of his own focusing on innovation, just days after his chancellor unveiled £25bn of tax raises.
Mr Danker is set to praise the chancellor’s autumn statement as “incredibly welcome” – and thank him for “staying the course” on infrastructure projects such as HS2 rail and the Sizewell C nuclear plant.
Image: Tony Danker will also call for action on the Northern Ireland Protocol
However, with the UK looking destined for recession and stagnating growth in recent years, he will say more needs to be done.
“The painful reality about growth is that it can’t be stimulated overnight. That’s what the mini-budget got wrong,” Mr Danker will tell delegates.
“Get round the table, do the deal, unlock the Trade and Co-operation Agreement. I say to Brexiteers, the best guarantor of Brexit is an economy that grows. Its biggest risk is one that doesn’t,” the CBI chief will say.
“Now I know that some of these things will not be popular with politicians.
“But while, I have no problem with government taking tough choices to bring stability, I want them to also take tough choices for growth.”
The call to finally rectify the Protocol issue comes as Downing Street was forced to dent at the weekend that it was considering a more liberal “Swiss-style” deal with the EU in order to boost trade.
The man dubbed “Britain’s most hated boss” for his controversial policy of sacking hundreds of seafarers and replacing them with cheaper agency staff is to quit.
Sky News can exclusively reveal that Peter Hebblethwaite, the chief executive of P&O Ferries, is leaving the company.
Sources said he had decided to resign for personal reasons.
Mr Hebblethwaite joined the ranks of Britain’s most notorious corporate figures in 2022 when P&O Ferries – a subsidiary of the giant Dubai-based ports operator DP World – said it was sacking 800 staff with immediate effect – some of whom learned their fate via a video message.
The policy, which Mr Hebblethwaite defended to MPs during subsequent select committee hearings, erupted into a national scandal, prompting changes in the law to give workers greater protection.
Under the new legislation, the government plans to tighten collective redundancy requirements for operators of foreign vessels.
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In a statement issued in response to a request from Sky News, a P&O Ferries spokesperson said: “Peter Hebblethwaite has communicated his intention to resign from his position as chief executive officer to dedicate more time to family matters.
Image: Peter Hebblethwaite gives evidence to a committee of MPs in 2022. Pic: PA
“P&O Ferries extends its gratitude to Peter Hebblethwaite for his contributions as CEO over the past four years.
“During his tenure the company navigated the challenges of the COVID-19 pandemic, initiated a path towards financial stability, and introduced the world’s first large double-ended hybrid ferries on the Dover-Calais route, thereby enhancing sustainability.
“We extend our best wishes to him for his future endeavours.”
A source close to the company said it anticipated making an announcement on Mr Hebblethwaite’s successor in the near term.
A former executive at J Sainsbury, Greene King and Alliance Unichem, Mr Hebblethwaite joined P&O Ferries in 2019, before taking over as chief executive in November 2021.
Insiders claimed on Friday that he had “transformed” the business following the bitter blows dealt to its finances by the COVID-19 pandemic and – to some degree – by the impact of Britain’s exit from the European Union.
Image: A union protest is shown at the height of the mass sackings row in 2022
P&O Ferries carries 4.5 million passengers annually on routes between the UK and continental European ports including Calais and Rotterdam.
It also operates a route between Northern Ireland and Scotland, and is a major freight carrier.
The company’s losses soared during the pandemic, with DP World – its sole shareholder – supporting it through hundreds of millions of pounds in loans.
Its most recent accounts, which were significantly delayed, showed a significant reduction in losses in 2023 to just over £90m.
The reduction from the previous year’s figure of almost £250m was partly attributed to cost reduction exercises.
The accounts also showed that Mr Hebblethwaite received a pay package of £683,000, including a bonus of £183,000.
“I reflected on accepting that payment, but ultimately I did decide to accept it,” he told MPs.
“I do recognise it is not a decision that everybody would have made.”
The row over his pay was especially acute because of his admission that P&O Ferries’ lowest-paid seafarers received hourly pay of just £4.87.
Mr Hebblethwaite had argued since the mass sackings of 2022 that the company would have gone bust without the drastic cost-cutting that it entailed.
The company insisted at the time that those affected by the redundancies had been offered “enhanced” packages to leave.
Last October, the then transport secretary, Louise Haigh, said: “The mass sacking by P&O Ferries was a national scandal which can never be allowed to happen again,” adding that measures to protect seafarers from “rogue employers” would prevent a repetition.
“This issue has been ignored for over 2 years, but this new government is moving fast and bringing forward measures within 100 days,” Ms Haigh added.
“We are closing the legal loophole that P&O Ferries exploited when they sacked almost 800 dedicated seafarers and replaced them with low-paid agency workers and we are requiring operators to pay the equivalent of National Minimum Wage in UK waters.
“Make no mistake – this is good for workers and good for business.”
The minister’s description of P&O Ferries as “rogue”, and suggestion that consumers should boycott the company, sparked a row which threatened to overshadow the government’s International Investment Summit last October.
Sky News’s business and economics correspondent, Paul Kelso, revealed that DP World had withdrawn from participating in the event, and paused a £1bn investment announcement.
The company relented after Sir Keir Starmer publicly distanced the government from Ms Haigh’s characterisation of DP World.
Donald Trump has cancelled a loophole from today that had allowed consumers and businesses to be spared duties for sending low-value goods to the United States.
The so-called de minimis exemption had applied across the world before Trump 2.0 but the president has taken action – and the UK may soon follow suit – as part of his trade war.
The relief had allowed goods worth less than $800 (£595) to enter the US duty-free since 2016.
But now, low-cost packages face the same tariff rate as other, more expensive, goods.
The reasons for the latest bout of protectionism are numerous and the ramifications are country and purpose specific.
What is changing?
It was no accident that China was the first destination to be slapped with this rule change.
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The duty exemption on low-value Chinese goods was ended in May as US retailers, in fact those across the Western world, complained bitterly that they were being undercut by cheap clothing, accessories and household goods shipped by the likes of Shein and Temu.
From today, Mr Trump is expanding the end of the de minimis rule to the rest of the world.
Why is Trump doing this?
Image: Number of de minimis packages imported in to the US since 2018
The president is not acting purely to protect US businesses.
More duties mean more money for his tariff treasure chest, bolstering the goodies already pouring in from his base and reciprocal tariffs imposed on trading partners globally this year.
The Trump administration has also called out “deceptive shipping practices, illegal material and duty circumvention”.
It also believes many parcels claiming to contain low-value goods have been used to fuel the country’s supplies of fentanyl, with the importation of the illegal drug being used by the president as a reason for his wider trade war against allies including Canada.
How will it apply?
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New tariffs threaten fresh trade chaos
Under the new rules, only letters and personal gifts worth less than $100 (£74) will still be free of import duties.
Charges will depend on the tariff regime facing the country from where the goods are sent.
Fox example, a parcel containing products worth $600 would raise $180 in extra duties when sent from a country facing a 30% tariff rate.
It has sparked chaos in many countries, with postal services in places including Japan, Germany and Australia refusing to accept many items for delivery to the US until the practicalities of the new regime become clearer.
What about the UK?
All goods not meeting the £74 exemption criteria now face a 10% charge because that is the baseline tariff the US has slapped on imports from the UK.
We were spared, if you remember, higher reciprocal tariffs under the so-called “trade deal”.
How will the process work?
All shipping and delivery companies will be wading through the changes, with the big international operators such as DHL, FedEx and the like all promising to navigate the challenge.
Royal Mail said on Thursday that it would be the first international postal service to have a dedicated operation.
It said consumers could use its new postal delivery duties paid (PDDP) services both online and at Post Offices.
But it explained that business customers faced different restrictions to individuals.
Businesses would be charged a handling fee per parcel to cover additional costs and duties would be calculated based on where items were originally manufactured.
While business account customers could be handed an invoice for the duties, it explained that consumers would have to pay at the point of buying postage.
No customs declaration would be required, it concluded, for personal correspondence.
Is the US alone in doing this?
The answer is no, but it remains a fairly widespread relief globally.
The European Union, for example, removed de minimis breaks back in 2021, making all e-commerce imports to the bloc subject to VAT.
It is also now planning to introduce a fee of €2 on goods worth €150 or less to cover the costs of customs processing.
Should the UK do the same?
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July: The value of ‘de minimis’ imports into Britain
The UK has been under pressure for many years to follow suit and drop its own £135 duty-free threshold as retailers battle the cheap e-commerce competition from China we mentioned earlier.
A review was announced by the chancellor in April.
Sky News revealed in July how the total declared trade value of de minimis imports into the UK in the 2024-25 financial year was £5.9bn – a 53% increase on the previous 12-month period.
Any rise in revenue would be welcomed, not only by UK retailers, but by Rachel Reeves too as she looks to fill a renewed black hole in the public finances.
Sanjeev Gupta, the metals tycoon whose main British business was forced into compulsory liquidation last week, is facing a deepening probe by Australian regulators into his operations in the country.
Sky News has learnt that officials from the Australian Securities & Investment Commission (ASIC) last week served Mr Gupta’s Liberty Steel group with a new demand for information about its activities.
Sources said the regulator had also taken possession of a mobile phone belonging to Mr Gupta as part of the probe.
One insider said that other senior executives at the company may also have had electronic devices confiscated, although the accuracy of this claim could not be verified on Thursday morning.
Both ASIC and a spokesman for Mr Gupta’s GFG conglomerate refused to comment on the suggestion that a search warrant had been produced by the watchdog.
ASIC’s deepening investigation comes a month after it said that three of GFG Alliance’s companies had been ordered by the Supreme Court of New South Wales to lodge outstanding annual reports with it.
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It is the latest headache to hit Mr Gupta, whose companies remain under investigation by the Serious Fraud Office in the UK.
Last week, the Official Receiver took control of Speciality Steels UK following a winding-up petition from creditors led by Greensill Capital, the collapsed finance firm.
Mr Gupta remains intent on buying SSUK back, and has assembled financing from BlackRock, the world’s largest asset manager, Sky News revealed last week.
SSUK employs nearly 1,500 people at steel plants in South Yorkshire, and makes highly engineered steel products for use in sectors such as aerospace, automotive and oil and gas.
“[Gupta Family Group] will now continue to advance its bid for the business in collaboration with prospective debt and equity partners and will present its plan to the official receiver,” Jeffrey Kabel, chief transformation officer, at Liberty Steel, said after SSUK’s collapse.
“GFG continues to believe it has the ideas, management expertise and commitment to lead SSUK into the future and attract major investment.”
“The plan that GFG presented to the court would have secured new investment in the UK steel industry, protecting jobs and establishing a sustainable operational platform under a new governance structure with independent oversight,” Mr Kabel added.
“Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution.”
Mr Gupta wants to hand control of SSUK to his family in a bid to alleviate concerns about his influence.
One source close to the situation claimed that the ownership structure devised by Mr Gupta would be independent, ring-fenced from him and have “robust standards of governance”.
Behind Tata Steel and British Steel, SSUK is the third-largest steel producer in the country.
Other parts of Mr Gupta’s empire have been showing signs of financial stress for years.
Mr Gupta is said to have explored whether he could persuade the government to step in and support SSUK using the legislation enacted to take control of British Steel’s operations.
His overtures were dismissed by Whitehall officials.
He had previously sought government aid during the pandemic but that plea was also rejected by ministers.