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Britain has a chance to compete in the green industrial revolution, but only if the government takes rapid steps to help shore up its industry, according to an important new report.

The analysis from The Institute for Public Policy Research (IPPR) thinktank reveals that while the UK has deindustrialised faster than any other comparable nation in the developed world, it still has a chance to rebuild its manufacturing base and compete on the green technologies needed to reach net zero.

The new report comes as countries around the world compete to dominate green technologies such as electric cars, solar panels and wind turbines.

On Tuesday, the White House imposed 100% tariffs on imports of Chinese electric vehicles, as well as 50% tariffs on Chinese solar panels. The US and China have both introduced vast subsidy schemes intended to buoy up their green manufacturing.

In the UK, despite various government pledges to “level up” and introduce “industrial strategy” schemes, there is nothing analogous to the schemes in the US, China or, for that matter, the EU.

An advantage in certain sectors

The new IPPR analysis is among the first attempts to pinpoint which sectors in Britain’s economy have a chance of competing on a global basis. It finds that while the UK has indeed deindustrialised far more quickly than other G7 nations, it still has a comparative advantage in certain sectors.

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These include the manufacture of heat pumps, wind turbines and green transport, including electric cars and trains.

The analysis will be closely watched, as the IPPR is seen as the leading left-leaning thinktank in the UK, with close links to the Labour Party. Although Rachel Reeves has ditched her party’s pledge to increase green investment to £28bn, she and her colleagues are understood to be eagerly awaiting the IPPR report as she builds her own plan for UK industry.

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Biden on Chinese electric vehicle tariffs

George Dibb, IPPR’s associate director for economic policy, said: “We’ve identified over 150 different products that are vital to the net zero transition. The UK already has a competitive edge in various of them compared to other countries. So we need to take those but we need to build on that to need to go further.

“We highlight three areas in particular: heat pumps, green transport, and wind. In those three sectors – that’s where the UK economy is particularly well placed to take advantage of those future facing growth opportunities.

He added: “There’s a race towards net zero. The US, Europe and China are all fighting it out for this investment. Companies need to know the UK is a place to go. So one of the things that we need [from the government] is a real industrial strategy.”

The political reaction

Labour’s shadow secretary for energy security and net zero, Ed Miliband, said: “With our abundant natural resources, Britain can be a world leader in green industries. But we are being let down by a clown car government that is letting jobs go overseas and waving the white flag for British industries.

“Labour says it is time for a new era of industrial policy- we unapologetically care about what Britain makes, where we make it, and how we make it. That is why we will set up GB Energy, a publicly owned energy company, and a National Wealth Fund to invest in rebuilding the strength of our national industries.”

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Indian pharma group readies swoop on anti-smoking aid Nicotinell

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Indian pharma group readies swoop on anti-smoking aid Nicotinell

An Indian pharmaceutical group is closing in on a deal to snap up Nicotinell, the anti-smoking aid, from Haleon, its FTSE-100 parent company.

Sky News has learnt that Hyderabad-based Dr Reddy’s Laboratories could be within days of acquiring the brand and a number of lesser-known European products from Haleon.

Sources said a deal was likely to be announced as soon as this week.

It was unclear on Sunday how much Dr Reddy’s might pay for the Haleon-owned assets, although it is expected to be in the hundreds of millions of pounds.

Should it be completed, it will be the latest in a string of acquisitions for the Indian- and US-listed company.

Dr Reddy’s has a market value in New York of about $11.7bn, having been established in 1984.

In Britain, the company has had a presence since 2002, and includes commercial offices and a research and development centre in Cambridge.

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It also operates an active pharmaceutical ingredient manufacturing site in Mirfield, West Yorkshire.

Dr Reddy’s has been in talks for months about acquiring the Nicotinell brand from Haleon, the over-the-counter products giant spun out of FTSE-100 drug maker GlaxoSmithKline.

Haleon, which has a market capitalisation of close to £29.5bn, is chaired by the former Tesco chief executive Sir Dave Lewis.

GSK sold its remaining stake in Haleon earlier this month.

Haleon owns some of the most recognisable over-the-counter healthcare brands in Britain, including the multivitamin supplement Centrum, Panadol pain relief tablets and Sensodyne toothpaste.

Nicotinell, which is sold in patch, gum and lozenge form, is said to be the second-largest nicotine replacement therapy product globally.

Its prospective sale will come days after Rishi Sunak’s administration failed to pass his flagship anti-smoking bill after he called a surprise summer general election.

Haleon declined to comment.

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FTSE-100 housebuilder Persimmon weighs £1bn bid for rival Cala

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FTSE-100 housebuilder Persimmon weighs £1bn bid for rival Cala

One of Britain’s biggest housebuilders is exploring a £1bn takeover bid for Cala Group, a rival player in the sector which has been put up for sale.

Sky News has learned that Persimmon, which has a market value of £4.74bn, is leaning towards submitting an offer for Cala ahead of a bid deadline next week.

City sources said it would be a strong contender to buy Cala, whose homes have a significantly higher average sale price than those of Persimmon.

Insiders expect Cala, which is being auctioned by Legal & General (L&G), to command a price tag of about £1bn.

If Persimmon is successful in the auction, it would mark the York-based company’s biggest acquisition for years.

Under Roger Devlin, its chairman, and chief executive Dean Finch, the company’s share price has rallied by over 20% in the last year.

In a trading update last month, Persimmon said it was on track to deliver growth in new home completions this year to up to 10,500.

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The Cala auction comes amid a general election campaign in which new home provision is expected to figure prominently.

Both main parties are likely to set out new policies to stimulate housebuilding growth, according to sources.

Analysts said this weekend that other housebuilders were also expected to consider bids for the L&G-owned company.

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These could include, they said, Persimmon’s larger rival, Taylor Wimpey, and Avant Homes, which is owned by Elliott Advisors and Berkeley DeVeer.

Persimmon is the UK’s third-largest housebuilder by market capitalisation, behind Taylor Wimpey and Barratt Developments.

Both Persimmon and Taylor Wimpey were among eight housebuilders named by the Competition and Markets Authority in February over suspicions they had exchanged commercially sensitive information.

A takeover of Cala by another major housebuilder would underline fresh momentum in the industry’s consolidation, after Barratt Developments unveiled a £2.5bn deal to acquire rival Redrow.

The prospective sale of Cala represents the first significant strategic move by its new chief executive, Antonio Simoes.

Bankers at Rothschild are overseeing the auction.

Mr Simoes described Cala as “a very strong business” during an earnings call earlier this year on which he was quizzed about the housebuilder’s future ownership.

L&G took full control of the business in 2018.

Cala reported a slide in half-year profits last autumn, citing a “challenging market”.

The company has a long-term goal to build 3,000 homes annually.

Persimmon and L&G declined to comment on Saturday.

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Ex-Post Office boss Paula Vennells admits removing reference to Horizon IT system from Royal Mail prospectus

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Ex-Post Office boss Paula Vennells admits removing reference to Horizon IT system from Royal Mail prospectus

Former Post Office boss Paula Vennells has admitted to amending the legal document Royal Mail issued to would-be investors before it became publicly owned to remove mention of the flawed Horizon IT system.

Data from the accounting software created by Fujitsu was used to prosecute more than 700 sub-postmasters for theft and false accounting.

Many more victims lost their homes, livelihoods and good reputation to repay non-existent shortfalls.

Now the inquiry set up to establish a clear account of the introduction and failure of Horizon has heard during Ms Vennells’s third and final day of questioning that she removed “at the very last minute” reference to Horizon from the prospectus Royal Mail issued before it was listed on the London Stock Exchange.

A prospectus is a legal and financial document detailing key information for potential company investors.

It was the first time the issue was raised with Ms Vennells.

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Paula Vennells breaks down in tears again

She said: “It was flagged to me that in the IT section of the Royal Mail prospectus, there was reference to – I can’t remember the words now – but risks related to the Horizon IT system… the line that was put in said that no systemic issues had been found with the Horizon system.”

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Ms Vennells wanted the reference removed as, “the Horizon system was no longer anything to do with the Royal Mail group” she said, and contacted the company secretary to have the reference removed.

Based on this action Ms Vennells wrote to a colleague “I have earned my keep on this”.

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She was at the top of Post Office for 12 years and served as its chief executive for seven of those, from 2012 to 2019.

In at times emotional testimony, Ms Vennells said she “loved the Post Office” and worked “as hard as I possibly could to deliver the best Post Office for the UK”.

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