Connect with us

Published

on

The World Health Organisation (WHO) wants government action over escalating baby formula prices that are “exploiting” British families.

In an interview with Sky News, WHO called out the “profit-driven” multinational manufacturers for “manipulating the price” of their baby formulas.

The most recent research shows prices in the UK have risen 24% over the past two years, while the cheapest brand has jumped by 45% in that time.

WHO has urged governments to intervene on behalf of struggling families and find a way of reducing the prices in the shops.

In May, Sky News uncovered the desperate measures many parents are taking to feed their babies including stealing formula, buying on the black market, watering down bottles or substituting formula for condensed milk.

WHO technical officer, Laurence Grummer-Strawn, told Sky News: “It is shocking to be seeing a high income country like the UK facing these kinds of problems where mothers can’t afford to feed their babies.”

When asked if it amounted to exploitation, Mr Grummer-Strawn said: “Yes, I think we can say that when you see that these prices are being driven down to the consumers and having to pay extremely high prices.

More from UK

“They’re in a very vulnerable situation, that they have infants that have to be fed and there aren’t many alternatives out there for them and there aren’t really other companies they can turn to.

“You’re exploiting them to increase the profits of these companies, and they have huge profit margins.”

Please use Chrome browser for a more accessible video player

‘Are families being exploited? Yes’

Speaking about solutions, Mr Grummer-Strawn explained: “We really need government action to address either on the price end or in ways to help those families directly.”

“Lowering the prices can help these families, but it needs to be in a sustainable way,” he added.

“We have to have government action. To be setting up a situation where people are dependent on these baby banks and food banks to be providing this, that’s not a sustainable way for families to get what they need.”

Baby formula
Image:
Baby formula prices have surged

Baby banks and food banks across the UK have reported a surge in families in need of help – often parents who are in work but are still struggling to afford formula milk and other essentials.

Last month Sky News reported on the rationing that many baby banks said they are now having to introduce because they don’t have enough donated formula to distribute to all those who need it.

Many of the charities have said they are worried the workload is unsustainable.

Please use Chrome browser for a more accessible video player

Open baby formula sold on Facebook

WHO technical officer, Laurence Grummer-Strawn, speaks to Sky News' national correspondent, Tom Parmenter
Image:
WHO technical officer, Laurence Grummer-Strawn, speaks to Sky News’ national correspondent, Tom Parmenter

Mr Grummer-Strawn added: “I think that what we’re seeing here is largely companies taking advantage of opportunities that other things are getting more expensive, so let’s make ours more expensive as well.

“Our concern is that they’re out to maximise their profits.

“And from a business perspective, and their shareholders, maybe that’s what their shareholders want. They want the highest profit.

“We’re certainly trying to find ways to reach out to investors and say, ‘you know, where’s the ethics in this?’, and try to get investors to think about investing in an ethical way and therefore either don’t invest it in these companies, or choose the companies that are making the most ethical decisions and tell them about the harms of the way that these products are being marketed, the way the prices are being manipulated.”

Read more:
Baby formula theft raised in Commons after Sky News investigation
What can you do if you’re struggling to buy baby formula?

Mr Grummer-Strawn added: “At the heart of this are families simply trying to keep their babies fed when, for whatever reason, their child relies on bottle feeding.

“We really want to make sure we’re not making mothers feel guilty. This is not their fault.”

The problem is, he added, “that the government hasn’t stepped up and supported them in ways that they need to”.

Click to subscribe to the Sky News Daily wherever you get your podcasts

While most of the main manufacturers did not respond directly when Sky News put WHO’s comments to them, they have all told us higher production costs are the reason for the price rises.

Danone, which makes the Aptamil and Cow & Gate brands, did respond to say it is facing “unprecedented increases in the cost of ingredients, manufacturing, storage and transport”.

A spokesperson said: “Where possible we have always tried to absorb as many of these cost increases as possible.”

Danone added that it does try to help parents but added: “Ultimately, individual retailers set the selling price in their stores for all products.”

Westminster officials have consistently told Sky News that the government is helping with the cost of living but did not respond to WHO’s concerns.

Continue Reading

Business

Getir quits UK with multimillion pound Tottenham Hotspur debt

Published

on

By

Getir quits UK with multimillion pound Tottenham Hotspur debt

Getir, the grocery delivery app which this month confirmed plans to exit the UK, has an outstanding debt to Tottenham Hotspur Football Club running to millions of pounds.

Sky News understands that Turkey-based Getir, whose three-year training kit sponsorship deal with Spurs expired at the end of the Premier League season on Sunday, owes close to £5m to the club.

News of the outstanding debt comes as Getir tries to access a tranche of agreed funding from major investors Mubadala and G Squared to help facilitate its withdrawal from the UK, Germany and the Netherlands.

It was unclear this weekend whether the delivery app, which means “to bring” in Turkish, has the means to settle its financial obligations to Spurs.

The company once attained a valuation of almost £10bn, but has been forced by its deteriorating finances to retrench back to its home market, in the process axing thousands of jobs.

Its withdrawal from the UK has put about 1,500 jobs at risk, Sky News revealed earlier this month.

Companies such as Getir were big winners during the pandemic, attracting funding at astronomical valuations.

More from Business

Its decline highlights the slumping valuations of technology companies once-hailed as the new titans of food retailing.

Many of its rivals have already gone bust, while others have been swallowed up as part of a desperate wave of consolidation.

Getir itself bought Gorillas in a $1.2bn stock-based deal that closed in December 2022.

Getir and Tottenham Hotspur both declined to comment.

Continue Reading

Business

Sir Jim Ratcliffe scolds Tories over handling of economy and immigration after Brexit

Published

on

By

Sir Jim Ratcliffe scolds Tories over handling of economy and immigration after Brexit

Billionaire Sir Jim Ratcliffe has told Sky News that Britain is ready for a change of government after scolding the Conservatives over their handling of the economy and immigration after Brexit.

While insisting his petrochemicals conglomerate INEOS is apolitical, Sir Jim backed Brexit and spent last weekend with Labour leader Sir Keir Starmer at Manchester United – the football club he now runs as minority owner.

“I’m sure Keir will do a very good job at running the country – I have no questions about that,” Sir Jim said in an exclusive interview.

“There’s no question that the Conservatives have had a good run,” he added. “I think most of the country probably feels it’s time for a change. And I sort of get that, really.”

Politics live: ‘We are in existential battle’ over world order, defence secretary warns

Sir Jim was a prominent backer of leaving the European Union in the 2016 referendum but now has issues with how Brexit was delivered by Tory prime ministers.

“Brexit sort of unfortunately didn’t turn out as people anticipated because… Brexit was largely about immigration,” Sir Jim said.

More from Politics

“That was the biggest component of that vote. People were getting fed up with the influx of the city of Southampton coming in every year. I think last year it was two times Southampton.

“I mean, no small island like the UK could cope with vast numbers of people coming into the UK.

“I mean, it just overburdens the National Health Service, the traffic service, the police, everybody.

“The country was designed for 55 or 60 million people and we’ve got 70 million people and all the services break down as a consequence.

“That’s what Brexit was all about and nobody’s implemented that. They just keep talking about it. But nothing’s been done, which is why I think we’ll finish up with the change of government.”

Read more:
Sir Jim’s mission to succeed at ‘the one challenge the UK has never brought home’

UK needs to get ‘sharper on the business front’

Prime Minister Rishi Sunak has indicated an election is due this year but Monaco-based Sir Jim is unimpressed by the Conservatives’ handling of the economy.

“The UK does need to get a bit sharper on the business front,” he said. “I think the biggest objective for the government is to create growth in the economy.

“There’s two parts of the economy, there’s the services side of the economy and there’s the manufacturing side. And the manufacturing, unfortunately, has been sliding away now for the last 25 years.

“We were very similar in scale to Germany probably 25 years ago.

“But today we’re just a fraction of where Germany is and I think that isn’t healthy for the British economy… particularly when you think the north of England is very manufacturing based, and that talks to things like energy competitiveness, it talks to things like, why do you put an immensely high tax on the North Sea?

“That just disincentivises people from finding hydrocarbons in the North Sea, in energy.

“And what we need is competitive energy. So I mean, in America, in the energy world, in the oil and gas world, they just apply a corporation tax to the oil and gas companies, which is about 30%. And in the UK we’ve got this tax of 75% because we want to kill off the oil and gas companies.

“But if we don’t have competitive energy, we’re not going to have a healthy manufacturing industry. And that just makes no sense to me at all. No.”

‘We’re apolitical’

Asked about INEOS donating to Labour, Sir Jim replied: “We’re apolitical, INEOS.

“We just want a successful manufacturing sector in the UK and we’ve talked to the government about that. It’s pretty clear about our views.”

Sir Jim was keener to talk about the economy and politics than his role at struggling Manchester United, which he bought a 27.7% stake in from the American Glazer family in February – giving him an even higher business profile.

Old Trafford stadium in Manchester. Pic: AP
Image:
Old Trafford stadium in Manchester. Pic: AP

Push for stadium of the North

He is continuing to push for public funds to regenerate Old Trafford and the surrounding areas despite no apparent political support being forthcoming. Sir Keir was hosted at the stadium for a Premier League match last weekend just as heavy rain exposed the fragility of the ageing venue.

“There’s a very good case, in my view, for having a stadium of the North, which would serve the northern part of the country in that arena of football,” Sir Jim said. “If you look at the number of Champions League the North West has won, it’s 10. London has won two.

“And yet everybody from the North has to get down to London to watch a big football match. And there should be one [a large stadium] in the North, in my view.

“But it’s also important for the southern side of Manchester, you know, to regenerate.

“It’s the sort of second capital of the country where the Industrial Revolution began.

“But if you have a regeneration project, you need a nucleus or a regeneration project and having that world-class stadium there, I think would provide the impetus to regenerate that region.”

Continue Reading

Business

Marks & Spencer’s website and app go down

Published

on

By

Marks & Spencer's website and app go down

Marks & Spencer’s website and app has not been working for several hours, with a message telling shoppers “you can’t shop with us right now”.

“We’re working hard to be back online as soon as possible,” it adds.

All the menus and images have disappeared apart from one showing a model in a green jacket.

Customers trying to use the app got the message: “Sorry you can’t shop through the app right now. We’re busy making some planned changes, but will be back soon.”

The site is understood to have been down for several hours.

Replying to one customer on X, the retailer said: “We’re experiencing some technical issues but we are working on it.”

M&S is the latest high street name to have technical issues – last month some Sainsbury’s shoppers had problems with their online orders.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

The outage comes a few days before M&S is expected to reveal a big jump in annual profits.

It’s been a successful year for the brand, with strong sales across the business following a turnaround plan that has included store closures and cost cutting.

Continue Reading

Trending