The UK has more than its fair share of looming infrastructure priorities.
There’s a neglected water network that leaks sewage into rivers and clean water into the ground. A rail system in disarray after the last-minute scrapping of HS2. Not to mention roads filled with enough potholes to swallow fleets of electric cars there aren’t enough charging points to run.
All are addressed in the second five-yearly review of the UK’s key strategic priorities by the National Infrastructure Commission (NIC).
But the main priority, it concludes, is to electrify the heating of the UK’s 29 million or so homes.
As Sir John Armitt, chair of the NIC told me with a smile: “It’s literally all hands to the pumps, in this case the heat pumps!”
The main reason, according to the NIC, is one of urgency.
We have just about run out of time to switch away from gas before we miss legally binding targets to cut carbon emissions by 2035.
Image: A heat pump at a German factory
But there’s also the economic opportunity in that heat pumps promise to reduce heating bills almost immediately, and halve them by the time we get to 2050 (the NIC forecasts).
Then there’s the added bonus of not being dependent on gas.
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That doesn’t just avoid climate risks, but also the ridiculous price volatility of gas which, but one estimate, cost the UK economy £50-60bn extra between early 2022 and early 2023.
For infrastructure folks heat pumps are exciting.
Because they just move heat from one place (typically the air outside your home) and concentrate it in another (your radiator/hot water tank) they’re 3-5 times more efficient than a gas boiler. And when powered by wind, solar or nuclear power, they have negligible carbon emissions too.
For the time being at least they are on average (according to the NIC report) £10,000 more than a gas boiler to buy and install, and require a fairly energy efficient home.
But, as the NIC outlines today, with a couple of decades of subsidy for heating – just as subsidy helped the shift to clean energy generation like wind power – the switch can be made.
Consumers benefit from lower bills and a planet their grandchildren can live on.
Not everyone sees it that way of course. Companies that run the gas networks and make traditional boilers hardly welcomed the NIC’s key recommendation.
One thing they liked even less was the conclusion there was no place for hydrogen in heating people’s homes (compared to a heat pump, burning hydrogen is 5-6 times less efficient and far more expensive, the NIC found).
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The possibility of replacing natural gas with hydrogen allowed the existing gas industry to offer “hydrogen ready” boilers and a possible future for their products.
The NIC is urging government to stop flip-flopping around hydrogen (except for industrial uses) and go all in on electric heat.
The big question is of course whether this government, or the next, takes on the NIC’s heat-pump challenge.
Can they afford the billions in annual subsidy costs? Can they afford the political backlash from private homeowners if they feel “forced” to replace their gas boilers (something Rishi Sunak so recently tried to head off)?
But others might argue, given the improvements low carbon heating will make to the economy, and environment long-term, how can they afford not to?
Tens of thousands of Vodafone users are reporting problems with their internet
The outages began on Monday afternoon, according to the monitoring website DownDetector, which reported more than 130,000 issues with Vodafone connections.
A spokeswoman for the company said: “We are aware of a major issue on our network currently affecting broadband, 4G and 5G services.
“We appreciate our customers’ patience while we work to resolve this as soon as possible.”
The company has more than 18 million UK customers, with nearly 700,000 of those using Vodafone’s home broadband connection.
Vodafone users vented their frustration on social media.
“It’s like Vodafone has just been wiped off the earth. Not a single thing works,” said one X user.
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Image: Vodafone users were shown an error message when trying to access the internet provider’s app
The Vodafone app also appeared to be down for users, with the company’s website briefly going down too.
The ‘network status checker’ on the website was also down, and when Sky News tried to test the customer helpline, it did not ring.
“There’s Vodafone down and then there’s Vodafone wiped off the face of the f***ing planet,” posted another X user.
Jake Moore, global cybersecurity advisor at ESET, said the outage shows how reliant we are on modern infrastructure like mobile networks.
“Outages will always naturally raise early suspicions of a potential cyber incident, though current evidence points more towards an internal network failure than a confirmed attack,” said Mr Moore.
“The sudden outage, combined with the inability to access customer service lines, mirrors classic symptoms of a distributed denial-of-service (DDoS) attack, where attackers overwhelm the network so the site or systems collapse.
“However, malicious or not, this once again highlights our heavy reliance on digital infrastructure, especially in an age where we increasingly depend on mobile networks for everything,” he said.
“Ultimately, resilience is essential, whether the cause is a direct cyberattack, a supply chain issue or a critical internal error.”
Lloyds Banking Group has set aside a further £800m to cover estimated costs associated with the car finance mis-selling scandal.
The bank said the sum took its total provision to £1.95bn.
It had been assessing the impact since the Financial Conduct Authority (FCA) revealed last week it was consulting on a compensation scheme, with up to 14.2 million car finance agreements potentially eligible for payouts.
The regulator had previously found that many lenders failed to disclose commission paid to brokers, which could have led to customers paying more than they should have between April 2007 and November 2024.
Eligible customers could receive an average of £700 each under the proposals.
Lloyds said on Monday that it would be contributing to the consultation to argue a number of points.
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It said: “The Group remains committed to ensuring customers receive appropriate redress where they suffered loss, however the Group does not believe that the proposed redress methodology outlined in the consultation document reflects the actual loss to the customer. Nor does it meet the objective of ensuring that consumers are compensated proportionately and reasonably where harm has been demonstrated.
“In addition, the approach to unfairness in the redress scheme does not align with the legal clarity provided by the recent Supreme Court judgment in Johnson, in which unfairness was assessed on a fact specific basis and against a non-exhaustive list of multiple factors. The Group will make representations to the FCA accordingly.”
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0:58
Car finance: ‘Don’t use a claims firm – here’s why’
Shares in Lloyds, which fell last week when the bank warned of a potential “material” increase in its provisions, gained more than 0.5% on Monday.
The estimated compensation figure came in below the sum some financial analysts had predicted.
The shares remain more 50% up in the year to date.
Another listed lender exposed to car loan mis-selling is also expected to raise the amount it has set aside.
Close Brothers, which has a £165m provision currently, saw its shares tumble 7% when it admitted an increase was likely once its analysis of the compensation consultation documents was completed.
Car finance makes up approximately a quarter of its total loan book.
The budget may still be more than six weeks away, but rumours of U-turns and changes are already in full swing.
Over the last few days, there have been multiple reports that those inside Whitehall are considering tweaks to the controversial inheritance tax (IHT) reforms on farms announced this time last year.
Plans to introduce a 20% tax on estates worth more than £1m drew tens of thousands to protest in London, many fearing huge tax bills that would force small farms to sell up for good.
Now there are reports the tax threshold could be increased from £1m to £5m (£10m for a married couple) – a shift that would remove smaller farms from being liable to pay.
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From February: Farmers continue tax protest
Senior figures in farming have long believed a rise could be the solution to save the smaller farms and it would satisfy most.
However under the proposals, the 50% relief on IHT would be removed for farms above the new threshold.
That means bigger farms, responsible for producing a large amount of produce in our supermarkets, could bear the brunt of the tax burden with the Treasury potentially increasing revenues.
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Two senior farming figures told me today that while a threshold increase is welcome, it does nothing to solve an “insolvable” problem.
Big farms have more land to sell, but then they become smaller farms and either produce less, or even divide up, to avoid the tax entirely.
Richard Cornock runs a small dairy farm in south Gloucestershire, which has been in his family since 1822.
Image: Richard Cornock plans to pass his farm on to his son
He hopes to pass it on to his son Harry, who is now 14 and training to become a farm manager.
“I’ve been under so much stress like most farmers worrying about this tax,” he said. “And I really hope they do push the boundaries on the thresholds, because the million pounds they propose at the moment is ridiculous.
“It’s been on my mind the whole time to be honest. I even looked into getting life insurance to insure my life and I can’t get it because I had a heart condition. And that was one way I thought I might be able to cover my kids…”
We paused our chat as he was too upset to continue – an illustration of the stress farmers like him have been under over the last 12 months.
Image: Tens of thousands from the farming community took part in protests in London. Pic: Reuters
The government says it won’t comment on “speculation” about any possible changes, but it has previously defended the IHT reform, saying most estates would not pay and that those who will be liable can spread payments over a decade.
Labour is under pressure to do something to appease the angry farmers, a rural vote that turned from the Conservatives at the last election.
I ask Richard whether any tweak or row back on IHT will restore faith in Labour?