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Britain is determined to compete in the global race for green investment, the chancellor has told Sky News, days before the expected announcement that Jaguar Land Rover owner Tata will build a major new battery factory in the country.

Jeremy Hunt said that he was prepared to deploy subsidy money from the government’s £1bn war chest to help support these big green projects, despite warning only last month about the dangers of new subsidies.

It came as he unveiled a host of new measures, worth a combined £650m, designed to help encourage the life sciences and pharmaceuticals sector in the UK.

The Tata chairman is due to visit Downing Street next week to confirm that the Indian industrial giant has chosen Britain over Spain as the location of its new battery plant, which will serve its car business in the UK, as well as Europe.

The competition between the nations was hotly fought, and the Tata package is understood to be worth around £500m, including support on a range of matters, most notably energy costs.

“I can’t talk about any commercial discussions,” Mr Hunt said.

“But what I can say is that we understand – the prime minister and I – that we’re in a global race to attract investment, and we will always do what it takes to make sure the UK remains competitive.”

Asked about whether that included subsidies, he said: “We have a £1bn automotive transformation fund.

“We know that other countries are supporting companies who make these investments.

“It’s obviously good for the UK – not just to create these jobs, but also to transition to net zero – and the transition to electric cars is a very important part of that.”

Distancing from Boris Johnson-style industrial strategy

The comments underline an important shift in the mood music coming from government, which sought to distance itself from Boris Johnson-style industrial strategy in its early days.

The US Inflation Reduction Act, through which Washington is providing hundreds of billions of dollars of subsidies to green energy producers and battery makers, has changed that dynamic.

But Mr Hunt said the government was determined not to “pick winners”.

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How lithium batteries are made

“What happened in the 1970s was that we picked companies like British Leyland, put money into them, and it didn’t work,” he said.

“And we have learned that we can support sectors, but in the sectors we support we want to foster fierce competition between the players in those sectors.

“But we are completely clear that the sectors we’re backing, the sectors where Britain does really well – technology, life sciences, advanced manufacturing, clean energy – these are the sectors that are going to make us prosperous and successful in the 21st century.”

The chancellor said his Life Sci For Growth package was an illustration of that – bringing together some existing funds for research, alongside some changes to planning rules which will make it easier to build new labs.

The package also confirmed the “preferred route alignment” for the east-west rail route into Cambridge, a long-awaited train link which has provoked a planning backlash from locals living on the route.

He said: “We are finding £650m to support one of our most promising growth industries – something where we’re a European leader, a global leader – and the signal we’re sending to those companies all over the world is that if you want to develop new medicines, we’ve got our fantastic NHS for clinical trials, which we’re now unlocking; we’ve got great infrastructure around Cambridge, but we’ve also got fantastic infrastructure in the rest of the country.

“And we are backing that as a government.”

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Jaguar Land Rover cyberattack pushes overall UK car production down more than a quarter

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 Jaguar Land Rover cyberattack pushes overall UK car production down more than a quarter

UK car production fell by more than a quarter (27.1%) last month as a cyberattack at Jaguar Land Rover halted manufacturing at the plant, industry figures show.

The total number of vehicles coming off assembly lines – including cars and vans – fell an even sharper 35.9%, according to September data from the Society of Motor Manufacturers and Traders (SMMT).

“Largely responsible” for the drop was the five-week pause in production at Jaguar Land Rover (JLR) due to a malicious cyber attack, as other car makers reported growth.

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JLR’s assembly lines in the West Midlands and Halewood on Merseyside were paused from late August to early October as a result.

During this time, not a single vehicle was made. Production has since restarted, but the attack is believed to have been the “most financially damaging” in UK history at an estimated cost of £1.9bn, according to the security body the Cyber Monitoring Centre.

It was the lowest number of cars made in any September in the UK since 1952, including during the COVID-19 lockdown.

More on Cyber Attacks

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Are we in a cyber attack ‘epidemic’?

Despite the restart, the sector remains “under immense pressure”, the SMMT’s chief executive Mike Hawes said.

The phased restart of operations led to a small boost in manufacturing output this month, according to a closely watched survey.

Of the cars that were made, nearly half (47.8%) were battery electric, plug-in hybrid or hybrid.

The vast majority, 76% of the total vehicles output, were made for export.

The top destinations are the European Union, US, Turkey, Japan and South Korea.

JLR was just the latest business to be the subject of a cyberattack.

Harrods, the Co-Op, and Marks and Spencer, are among the companies that have struggled in the past year with such attacks.

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English Championship side Sheffield Wednesday file for administration

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English Championship side Sheffield Wednesday file for administration

Championship club Sheffield Wednesday have filed for administration, according to a court filing, which will result in the already struggling side being hit with a 12-point deduction.

The South Yorkshire club currently sit bottom of the Championship, the second tier of English football, with just six points from 11 games.

Known as The Owls, Wednesday are one of the oldest surviving clubs in world football, with more than 150 years of history.

Court records confirm the club have filed for administration. A notice was filed at a specialist court at 10.01am.

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Sky’s Rob Harris reports on the news that Sheffield Wednesday have filed for administration

What has happened?

The Owls, who host Oxford United on Saturday, have been in turmoil for a long time.

On 3 June, owner Dejphon Chansiri, a Thai canned fish magnate who took over the club in 2015, was charged with breaching EFL regulations regarding payment obligations.

Sheffield Wednesday fans protest the ownership at a game away to Leeds United in January. Pic: Reuters
Image:
Sheffield Wednesday fans protest the ownership at a game away to Leeds United in January. Pic: Reuters

Weeks later, Mr Chansiri said he was willing to sell the club in a statement on their official website.

Sheffield Wednesday's troubles have sparked furious protests from fans. Pic: PA
Image:
Sheffield Wednesday’s troubles have sparked furious protests from fans. Pic: PA

Their crisis deepened just days later when another embargo was imposed on the club relating to payments owed to HMRC, before players and staff were not paid on time on 30 June.

In the months that followed, forwards Josh Windass and Michael Smith left the club by mutual consent. Manager Danny Rohl, now at Rangers, also left by mutual consent.

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Frustrated Sheffield Wednesday supporters have targeted their embattled club’s owner in a highly-visible protest during their opening match of the season.

The Owls were forced to close the 9,255-capacity North Stand at Hillsborough after a Prohibition Notice was issued by Sheffield City Council.

‘Current uncertainty’

On 6 August, the EFL released a statement, saying: “We are clear that the current owner needs either to fund the club to meet its obligations or make good on his commitment to sell to a well-funded party, for fair market value – ending the current uncertainty and impasse.”

On 13 August, the Prohibition Notice was lifted, but a month later, news emerged of a winding-up petition over £1m owed to HMRC.

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Last season, Wednesday finished 12th. They had already been placed under registration embargoes in the last two seasons after being hit by a six-point deduction during the 2020/21 campaign, for breaching profit and sustainability rules.

With a 12-point deduction, the Owls would be 15 points away from safety in the Championship.

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Retail sales the highest in three years in a surprise to economists

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Retail sales the highest in three years in a surprise to economists

Retail sales are at the highest level in more than three years, in the latest measure of the UK economy to confound economists.

The amounts bought in shops rose 0.5% in September, far above the 0.2% contraction anticipated by economists polled by Reuters.

It was the fourth monthly rise in a row and brought volumes to their highest level since July 2022.

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Doing well were computer and telecommunications retailers as the iPhone 17 launched in the month, while online jewellers reported strong demand for gold despite the price hovering around record highs.

Gold has been in demand, and in recent days reached a record high, as some investors moved money out of the US dollar and government bonds amid the ongoing government shutdown.

It came despite a rainy month – which typically keeps shoppers at home – and a five-day tube strike in London.

The impact of the rain could be seen, however, in the boost to online spending, which rose to one of the highest levels since the end of the pandemic.

A fall was recorded in food shop sales from August to September, signalling a response to high food price inflation.

A good week for the economy?

Retail sales figures are significant as they measure household consumption, the largest expenditure in the UK economy.

Growing retail sales can mean economic growth, which the government has repeatedly said is its top priority.

Earlier this week, another key economic measure came in better than expected.

Inflation remained at 3.8% rather than rising to the widely expected 4% – double the target rate set by the interest rate-setters at the Bank of England.

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Consumers were feeling better about their finances, a closely watched measure of consumer confidence showed on Friday.

Buying sentiment is up from last month, according to market research company GFK, as intentions to buy big-ticket items like electrical goods and furniture rose.

Combined, it suggests people are not feeling too gloomy in the run-up to the November budget.

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