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The impacts of higher prices are being felt in the Tesco boardroom as profits have fallen despite an increase in sales.

High energy and labour costs, along with food inflation at 17.5%, have hurt the company’s earning power.

But the retailer also announced a reduction in the price of milk for the first time since May 2020. The cost has dropped from 95p to 90p a pint and from £1.30 to £1.25 for two pints. Prices on more than 1,000 everyday items will be frozen until early July.

The chain also announced it will buy back another £750m worth of shares in addition to the £1bn it has already bought back.

It reported profits of £2.63bn, down from £2.82bn the year before despite revenues rising to £65.7bn over the year, an increase from £61.3bn a year ago.

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“Our results reflect our continued investment in delivering great value and quality for our customers, whilst at the same time looking after our colleagues,” chief executive Ken Murphy said.

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“This is despite unprecedented levels of inflation in the prices we have paid our suppliers for their products, and the cost of running our own operations.”

At the same time Tesco’s preliminary full-year results said it is “at the most competitive we have ever been” and Tesco prices were “meaningfully lower” than 17.5% food inflation rate.

Mr Murphy also said inflation would fall later this year, as oil and grain prices fall, but the price of rice and protein would stay high.

The retailer is pushing suppliers for price cuts and has a team to closely monitor the costs facing suppliers, The Sunday Times reported on Sunday.

In an effort to save £1bn by February 2024 hundreds of manager roles across shops have been cut and all remaining food counters and hot delis have been closed.

Increases in delivery costs are to be introduced. Both the minimum spend and the fee for ordering groceries online will rise from 2 May.

A £4 charge is applied when the £40 home delivery minimum spend threshold isn’t reached. The minimum spend will rise to £50 next month and the fee for not meeting it will top £5.

Tesco still enjoys a 27% market share, the largest of any supermarket, despite increasing competition from low-cost German retailers Aldi and Lidl.

The billions of profits made by Tesco in a cost of living crisis have come in for criticism.

Unite general secretary Sharon Graham said they are “another example of excessive profiteering fired up by astonishing corporate greed”.

“It’s this rampant profiteering which is driving inflation, and cranking up the cost of living crisis for workers and their families,” she said.

“How can it be that at a time when millions are struggling to feed their families Britain’s biggest supermarket is profiteering as never before.”

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Ukraine presses Russia for 30-day ceasefire as Starmer among leaders in Kyiv for talks

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Ukraine presses Russia for 30-day ceasefire as Starmer among leaders in Kyiv for talks

Sir Keir Starmer has joined other European leaders in Kyiv to press Russia to agree an unconditional 30-day ceasefire.

The prime minister is attending the summit alongside French President Emmanuel Macron, recently-elected German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk.

It is the first time the leaders of the four countries have travelled to Ukraine at the same time – arriving in the capital by train – with their meeting hosted by President Volodymyr Zelenskyy.

Britain's Prime Minister Keir Starmer meets with French President Emanuel Macron and German Chancellor Friedrich Merz on board a train to the Ukrainian capital Kyiv where all three will hold meetings with Ukrainian President Volodymyr Zelensky, May 9, 2025. Stefan Rousseau/Pool via REUTERS
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Sir Keir Starmer, Emmanuel Macron and Friedrich Merz travelling in the saloon car of a special train to Kyiv. Pic: Reuters

Leaders arrive in Kyiv by train. Pic: PA
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Leaders arrive in Kyiv by train. Pic: PA

It comes after Donald Trump called for “ideally” a 30-day ceasefire between Kyiv and Moscow, and warned that if any pause in the fighting is not respected “the US and its partners will impose further sanctions”.

Security and defence analyst Michael Clarke told Sky News presenter Samantha Washington the European leaders are “rowing in behind” the US president, who referred to his “European allies” for the first time in this context in a post on his Truth Social platform.

“So this meeting is all about heaping pressure on the Russians to go along with the American proposal,” he said.

“It’s the closest the Europeans and the US have been for about three months on this issue.”

Sir Keir Starmer, Volodymyr Zelenskyy and Emmanuel Macron among world leaders in Kyiv. Pic: AP
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Sir Keir Starmer, Volodymyr Zelenskyy and Emmanuel Macron among world leaders in Kyiv. Pic: AP

Trump calls for ceasefire. Pic: Truth Social
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Trump calls for ceasefire. Pic: Truth Social

Ukraine’s foreign minister Andrii Sybiha said Ukraine and its allies are ready for a “full, unconditional ceasefire” for at least 30 days starting on Monday.

Ahead of the meeting on Saturday, Sir Keir, Mr Macron, Mr Tusk and Mr Merz released a joint statement.

European leaders show solidarity – but await Trump’s backing


Dominic Waghorn - Diplomatic editor

Dominic Waghorn

International affairs editor

@DominicWaghorn

The hope is Russia’s unilateral ceasefire, such as it’s worth, can be extended for a month to give peace a chance.

But ahead of the meeting, Ukrainian sources told Sky News they are still waiting for President Donald Trump to put his full weight behind the idea.

The US leader has said a 30-day ceasefire would be ideal, but has shown no willingness yet for putting pressure on Russian president Vladimir Putin to agree.

The Russians say a ceasefire can only come after a peace deal can be reached.

European allies are still putting their hopes in a negotiated end to the war despite Moscow’s intransigence and President Trump’s apparent one-sided approach favouring Russia.

Ukrainians would prefer to be given enough economic and military support to secure victory.

But in over three years, despite its massive economic superiority to Russia and its access to more advanced military technology, Europe has not found the political will to give Kyiv the means to win.

Until they do, Vladimir Putin may decide it is still worth pursuing this war despite its massive cost in men and materiel on both sides.

“We reiterate our backing for President Trump’s calls for a peace deal and call on Russia to stop obstructing efforts to secure an enduring peace,” they said.

“Alongside the US, we call on Russia to agree a full and unconditional 30-day ceasefire to create the space for talks on a just and lasting peace.”

Sir Keir Starmer and Volodymyr Zelenskyy during a meeting in March. Pic: AP
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Sir Keir and Volodymyr Zelenskyy during a meeting in March. Pic: AP

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The leaders said they were “ready to support peace talks as soon as possible”.

But they warned that they would continue to “ratchet up pressure on Russia’s war machine” until Moscow agrees to a lasting ceasefire.

“We are clear the bloodshed must end, Russia must stop its illegal invasion, and Ukraine must be able to prosper as a safe, secure and sovereign nation within its internationally recognised borders for generations to come,” their statement added.

“We will continue to increase our support for Ukraine.”

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The European leaders are set to visit the Maidan, a central square in Ukraine’s capital where flags represent those who died in the war.

They are also expected to host a virtual meeting for other leaders in the “coalition of the willing” to update them on progress towards a peacekeeping force.

Military officers from around 30 countries have been involved in drawing up plans for a coalition, which would provide a peacekeeping force in the event of a ceasefire being agreed between Russia and Ukraine.

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This force “would help regenerate Ukraine’s armed forces after any peace deal and strengthen confidence in any future peace”, according to Number 10.

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Special constable jailed after taking pictures of dying man from bodycam footage

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Special constable jailed after taking pictures of dying man from bodycam footage

A special constable has been jailed after taking pictures on his phone from bodycam footage showing a dying man.

Former police volunteer William Heggs, 23, was sentenced to 12 months’ imprisonment at Leicester Crown Court on Friday after showing the photos of victim William Harty, 28, to a female colleague and storing them on his Snapchat account.

Mr Harty was found seriously injured in a residential street in Leicester on 25 October 2021 and Heggs had attended the scene, helping with CPR before paramedics arrived.

Mr Harty died in hospital a day later and the man responsible for his injuries, his brother-in-law Martin Casey, was subsequently convicted of his manslaughter.

Heggs showed the pictures he had taken of bodycam footage of Mr Harty’s body to a Leicestershire Police constable, who reported Heggs and said she did not like seeing blood.

His phone was seized and officers discovered other photographs and video clips of bodyworn footage of incidents Heggs had attended on duty, including of a knife seizure, use of baton and pepper spray, and a man with an injured hand receiving first aid.

He also took pictures of a police computer screen, showing details of crimes and suspects, without consent.

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Heggs stored the materials in a Snapchat folder and disclosed graphic details – most of which were not in the public domain – about the injuries to a woman who was killed in a road traffic collision he had attended, to a friend on the social media platform.

Heggs was suspended from the force in November 2021 and resigned in October 2024 before pleading guilty to 11 computer misuse and data protection offences this March.

Widow Mandy Casey. Pic: PA
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William Harty’s widow Mandy Casey. Pic: PA

‘He has traumatised me’

Mr Harty’s widow, Mandy Casey, said in a victim impact statement read to the court that Heggs “took (her) husband’s dignity when he was most vulnerable”.

“You don’t take someone’s dignity and pride from them on their deathbed.”

She continued: “When I found out special constable Heggs had done this, I just wanted to ask why. He has traumatised me. I feel I will never know if he showed them to others.”

Ms Casey said she was still scared that photos of her husband’s body might appear on social media.

She added that she had lost trust in the police.

Public trust in police ‘significantly undermined’

Judge Timothy Spencer told Heggs, who has autism and ADHD, that he was “probably too immature to be working as a police officer” as he handed down the sentence.

He said Heggs had received “extensive training”, including on the importance of data protection, and knew he should only share materials for “a genuine policing purpose”.

Heggs’s actions had “significantly undermined” public trust and confidence in police, according to the judge.

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Malcolm McHaffie, from the Crown Prosecution Service, added: “William Heggs abused the public’s trust in the office he held as a special police constable.

“He violated the dignity of the deceased victims for no apparent reason other than what could be considered personal fascination and to gain credibility among his peers.”

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Man charged with murder after 87-year-old dies following alleged robbery

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Man charged with murder after 87-year-old dies following alleged robbery

A man has been charged with the murder of an 87-year-old after an alleged robbery in north London, police say.

Peter Augustine, 58, of Hornsey, is accused of killing pensioner John Mackey in Manor House.

Augustine appeared at Willesden Magistrates’ Court on Saturday charged with murder and robbery.

He was remanded in custody to appear at the Old Bailey next week.

The Metropolitan Police said officers were called to a report of a robbery on Goodchild Road just before 6pm on Tuesday.

The London Ambulance Service attended the scene and an 87-year-old man was taken to hospital, where he died on Thursday.

The victim’s family have been informed and are being supported by specialist officers.

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Speaking at the scene on Friday, neighbour Sandra Murphy, 65, described Mr Mackey as a “beautiful, kind man”, who “would do anything for anyone”.

“He was so loved around here. No-one would have a bad word to say about John,” she said.

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