Connect with us

Published

on

Siemens, the German-based industrial technology giant, is this weekend leading a last-ditch rallying cry to save the CBI, the ailing business lobbying group.

Sky News has learnt that Siemens, which employs 11,000 people in Britain, is coordinating a letter among a group of CBI members to urge them to publicly endorse its survival.

The letter, which is to be sent to a national newspaper later on Sunday and which has been seen by Sky News, is understood to have been signed by Microsoft.

A small number of companies ranging in size from start-ups to giant corporate names have been asked to put their names to it, sources said on Sunday.

It has been written two days before a vote of CBI members will determine the Royal Charter-bearing organisation’s future as it grapples with a sexual misconduct scandal which has cut it adrift from government.

The Siemens-coordinated letter acknowledges its signatories’ revulsion at the allegations which have rocked the CBI, saying “it is clear the culture of the organisation fell far below expectations”.

This is at odds with the CBI’s own conclusion outlined in a prospectus published ahead of Tuesday’s extraordinary general meeting.

More from Business

The draft letter goes on to say: “At a time when the UK economy is facing strong economic headwinds and anaemia growth, and with a general election expected before the end of next year, it is vital that there is a credible voice representing all sectors and sizes of UK business.

“The CBI can do this. The next 18 months will be vital for the UK and as a group, we feel it is essential that a refocused, effective CBI re-establishes its ties with government and provides the voice that British business needs.”

Ministers and the Labour Party have refused to engage with the CBI while a police investigation into rape allegations is ongoing, a period which could last many months.

Jeremy Hunt, the chancellor, has said there is “no point” interacting with it after it was deserted in droves by leading corporate members such as Aviva and the John Lewis Partnership.

Public shows of corporate support have been conspicuously absent since the CBI was plunged into crisis.

However, in their joint letter, Siemens, Microsoft and their fellow signatories say they “believe that the CBI has recognised its failings and has a robust action plan in place to be delivered by a new leadership”.

Since the scandal engulfed the CBI in March, it has ousted its director-general, Tony Danker, and said it would accelerate a search for a new president.

“Of critical importance to us is that the CBI recognises that the necessary change will take a significant, ongoing and concerted effort to repair their culture and rebuild confidence,” the letter says.

“We see encouraging signs that this is recognised, the learnings as to what went wrong and why are being understood, and that a new culture is beginning to become embedded in the organisation.

“This is why we’re backing the CBI to change and move forward, and this group will vote to give the organisation a mandate to continue.

“This is not a blank cheque and we will hold the CBI to account in delivering on its action plans.”

A number of other members have expressed dissatisfaction with the CBI’s reform document, saying it had left them underwhelmed and that it had no financial or strategic plan for the CBI’s future.

To illustrate the apathy felt by many corporate members, PricewaterhouseCoopers, the UK’s biggest accountancy firm, does not plan to register a vote in next week’s ballot, according to insiders.

Sky News revealed last week that the board of the CBI had drafted in lawyers to prepare for a prospective insolvency filing ahead of the crunch vote.

An adverse outcome from a vote at next week’s extraordinary general meeting would leave directors with little choice but to begin a process to wind it up.

Next week’s EGM will take place on a ‘one member, one vote’ basis, with the CBI requiring a majority of votes cast in favour of a resolution expressing confidence in its ability to continue.

“Without a mandate from you, we have no future,” Rain Newton-Smith, the new director-general, has told members.

Siemens and Microsoft declined to comment, while the CBI has been contacted for comment.

Continue Reading

Business

US-listed Ulta Beauty swoops on high street chain Space NK

Published

on

By

US-listed Ulta Beauty swoops on high street chain Space NK

A New York-listed company with a valuation of more than $21bn is to snap up Space NK, the British high street beauty chain.

Sky News has learnt that Ulta Beauty, which operates close to 1,500 stores, is on the verge of a deal to buy Space NK from existing owner Manzanita Capital.

Ulta Beauty is understood to have registered an acquisition vehicle at Companies House in recent weeks.

Money blog: Top chef reveals thing he hates about customers

The exact price being paid by Ulta was unclear on Thursday morning, although one source said it was likely to be well in excess of £300m.

Manzanita Capital, a private investment firm, engaged bankers at Raymond James to oversee an auction in April 2024.

The firm has owned Space NK for more than 20 years.

More on Retail

Manzanita has also owned the French perfume house Diptyque and Susanne Kaufmann, an Austrian luxury skincare brand.

Read more from Sky News:
Royal Mail to scrap second-class post on some days
Warning a pub a day to close this year

Founded in 1993 by Nicky Kinnaird, Space NK – which is named after her initials – trades from dozens of stores and employs more than 1,000 people.

It specialises in high-end skincare and cosmetics products.

Manzanita previously explored a sale of Space NK in 2018, hiring Goldman Sachs to handle a strategic review, but opted not to proceed with a deal.

None of Ulta, Manzanita, Space NK and Raymond James could be reached for comment.

Continue Reading

Business

Royal Mail to scrap second-class post on Saturdays and some weekdays

Published

on

By

Royal Mail to scrap second-class post on Saturdays and some weekdays

Royal Mail is to be allowed to scrap Saturday second-class stamp deliveries, under a series of reforms proposed by the communications regulator.

From 28 July, Royal Mail will also be allowed to deliver second-class letters on alternate weekdays, Ofcom said.

The post will still be delivered within three working days of collection from Monday to Friday.

Money blog: Top chef reveals thing he hates about customers

The proposals had already been raised by Ofcom after a consultation was announced in 2024, and the scale back was proposed early this year.

Royal Mail had repeatedly failed to meet the so-called universal service obligation to deliver post within set periods of time.

Those delivery targets are now being revised downwards.

More from Money

Rather than having to have 93% of first-class mail delivered the next day, 90% will be legally allowed.

Please use Chrome browser for a more accessible video player

The sale of Royal Mail was approved in December

The target for second-class mail deliveries will be lowered from 98.5% to arrive within three working days to 95%.

A review of stamp prices has also been announced by Ofcom amid concerns over affordability, with a consultation set to be launched next year.

It’s good news for Royal Mail and its new owner, the Czech billionaire Daniel Kretinsky. Ofcom estimates the changes will bring savings of between £250m and £425m.

A welcome change?

Unsurprisingly, the company welcomed the announcement.

“It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service,” said Martin Seidenberg, the group chief executive of Royal Mail’s parent company, International Distribution Services.

“It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today.”

Citizens Advice, however, doubted whether services would improve as a result of the changes.

“Today, Ofcom missed a major opportunity to bring about meaningful change,” said Tom MacInnes, the director of policy at Citizens Advice.

“Pushing ahead with plans to slash services and relax delivery targets in the name of savings won’t automatically make letter deliveries more reliable or improve standards.”

Acknowledging long delays “where letters have taken weeks to arrive”, Ofcom said it set Royal Mail new enforceable targets so 99% of mail has to be delivered no more than two days late.

Changing habits

Less than a third of letters are sent now than 20 years ago, and it is forecast to fall to about a fifth of the letters previously sent.

According to Ofcom research, people want reliability and affordability more than speedy delivery.

Royal Mail has been loss-making in recent years as revenues fell.

Read more from Sky News:
Greater risk to UK economy from Trump tariffs, BoE warns
What is a wealth tax and how would it work?

In response to Ofcom’s changes, a government spokesperson said: “The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth. With the way people use postal services having changed, it’s right the regulator has looked at this.

“We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK”.

Ofcom said it has told Royal Mail to hold regular meetings with consumer bodies and industry groups to hear their experiences implementing the changes.

Continue Reading

Business

A pub a day to close this year, industry body warns as it calls for cut to tax burden

Published

on

By

A pub a day to close this year, industry body warns as it calls for cut to tax burden

An industry body has warned that the equivalent of more than one pub a day is set to close across Great Britain this year.

According to the British Beer and Pub Association (BBPA), an estimated 378 venues will shut down across England, Wales and Scotland.

This would amount to more than 5,600 direct job losses, the industry body warns. It has called for a reduction in the cumulative tax and regulatory burden for the hospitality sector – including cutting business rates and beer duty.

The body – representing members that brew 90% of British beer and own more than 20,000 pubs – said such measures would slow the rate at which bars are closing.

BBPA chief executive Emma McClarkin said that while pubs are trading well, “most of the money that goes into the till goes straight back out in bills and taxes”.

“For many, it’s impossible to make a profit, which all too often leads to pubs turning off the lights for the last time,” she said.

“When a pub closes, it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy.”

She urged the government to “proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR (extended producer responsibility) costs, and cut beer duty”.

“We’re not asking for special treatment, we just want the sector’s rich potential unleashed,” she added.

Read more:
What is a wealth tax and how would it work in the UK?

Is a comeback on for the British pub?
Horner: Red Bull sacking came as a ‘shock’

The government has said it plans to reform the current business rates system, saying in March that an interim report on the measure would be published this summer.

From April, relief on property tax – that came in following the COVID-19 pandemic – was cut from 75% to 40%, leading to higher bills for hospitality, retail and leisure businesses.

The rate of employer National Insurance Contributions also rose from 13.8% to 15% that month, and the wage threshold was lowered from £9,100 to £5,000, under measures announced by Rachel Reeves in the October budget.

Continue Reading

Trending