It’s a momentous day in UK industrial history, in two respects. But what have the closures of the last blast furnace at Port Talbot and the final British coal-fired power station at Ratcliffe-on-Soar got to do with one other?
In one respect the common factor is coal. The blast furnace at Port Talbot is one of the last remaining descendants of the key technology invented in Britain during the early Industrial Revolution.
Abraham Darby pioneered the process of using coal (a baked form of coal called coking coal, to be precise) to refined iron ore – turning it into what is known as pig iron.
That, along with the basic oxygen process devised by Henry Bessemer, was among the foundational inventions which happened in Britain, and helped to kick-start the fossil fuel age that followed.
Blast Furnace No 4 at Port Talbot is not the last remaining such facility in the country – there are also two blast furnaces still operating at British Steel in Scunthorpe – but all of these furnaces will soon be gone, replaced with electric arc furnaces, which produce steel in a far less carbon-intensive way.
All of which sounds like good news – but there’s a catch we’ll come back to in a moment. In the meantime, let’s take a second to ponder another landmark moment: the end of coal power.
Image: Port Talbot in Wales. Pic: PA
Britain was also the first country in the world to have an operational coal-fired power station – the 1882 plant in Holborn. And today it has closed its last remaining coal-fired power station.
In one sense this is only a formalisation of something that has been creeping up on the UK for some time: the gradual switch from coal-fired power to a combination of gas power and renewables.
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Image: Ratcliffe-on-Soar Power Station. Pic: PA
Gas-fired power stations are better than coal plants in at least three respects: they are more efficient at turning fuel into power, they are quicker to switch on and off and they emit about half the amount of carbon.
But this switch is not without its consequences. Coal, like it or not, is still a cheaper form of power than gas – at least before you take into account carbon costs. And unlike gas, coal supplies are not as dependent on Russia.
Also, Britain’s switch from cheap-ish coal towards more expensive gas and renewables (themselves dependent on a rainbow of government subsidies) is part of the explanation for why the country currently has some of the most expensive power costs in the developed world.
Indeed, industrial power prices, which are most directly affected since they absorb most of the subsidies for renewables, are higher than in any other developed country.
And since electric arc furnaces are powered by electricity (as the name suggests), our ability to make steel at a reasonable price will be determined in future by those industrial power costs.
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4:20
From May: The price of going green?
In other words, green steel in the UK is likely to be considerably more expensive, in part because of how quickly the UK is pushing towards green power.
It’s worth saying, that the push towards renewables is not the only reason for high UK power prices. There is also the fact that the grid in this country is short of investment – not to mention the dysfunctionalities of the way wholesale power markets are structured.
But eye-wateringly high power prices are part of the explanation for why industry is shifting away from Britain to cheaper locations. It is part of the explanation for why this country is de-industrialising faster than nearly every other developed nation.
That, in turn, is helping to reduce the amount of carbon emitted in this country. But it’s also helping to diminish the number of people employed in manufacturing and the amount of economic output generated by the sector.
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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0:43
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?