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Something has changed dramatically in your home in a way you won’t have even noticed.

The electricity in your plug socket no longer comes from coal, the workhorse of the industrial revolution that powered our economy for decades but which is also the most polluting fossil fuel.

Now it is generated by cleaner gas, renewable and nuclear power.

That shift has helped the UK cut greenhouse gas emissions by 50% since 1990 – a world-leading feat – and you won’t have batted an eyelid.

That’s about to change.

The country’s climate advisers, the Climate Change Committee (CCC), say in new advice today that emissions of greenhouse gases need to fall 87% by 2040.

Emissions need to fall by 87% by 2040, during the period covered by the "seventh carbon budget", published today by the CCC
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Emissions need to fall by 87% by 2040, during the period covered by the ‘seventh carbon budget’, published today by the CCC

One third of those emissions cuts will come from decisions made by households.

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While the first stage of the country’s national climate action has “gone largely unnoticed”, the next phase will be “a lot more difficult”, said Adam Berman from Energy UK, which represents energy suppliers.

“It’s going to be technically more difficult, it is going to be much more visceral and tangible to people in their everyday lives. It affects how they get to work, what they use to heat their homes and even diet.”

Experts say if we get it right, it will make our lives better with cleaner air and better public transport.

It would also shave hundreds of pounds off annual household bills.

But it depends on what the government does next to help people.

The way we travel

The two “most impactful” things households can do are replacing their car with an electric one and a gas boiler with a heat pump (only when they pack up, and not before), the advice said.

By 2040, the share of electric cars on the road needs to jump from 2.8% in 2023 to 80% in order to meet net zero, according to the recommendations, which the government is not obliged to accept.

They are already cheaper to run than petrol or diesel cars, while the falling cost of batteries means EVs should finally cost the same upfront in the next three years.

The committee’s chief executive Emma Pinchbeck said: “Frankly, by the time a lot of people are going to be choosing a new car, the electric vehicle is just going to be the cheapest [option].”

The share of heat pumps must jump to 52%, while electric cars need to reach 80% by 2040, the CCC said
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The share of heat pumps must jump to 52%, while electric cars need to reach 80% by 2040, the CCC said

How we heat our homes

But while the switch to electric vehicles is powering ahead, the move to greener home heating has barely left the starting blocks.

Homes are currently the second highest-emitting sector in the UK economy, and much of that comes from the way we heat them.

The CCC today put to bed calls to keep gas boilers but run them on hydrogen, recommending there be “no role for hydrogen heating in residential buildings”.

Hydrogen is hard to produce in a green way, and so would be reserved for other sectors that have no other viable alternatives.

The government is yet to confirm this decision, which would dismay the gas networks and boiler manufacturers.

Instead, the advisers said people should eventually replace boilers with heat pumps, which run on electricity and work a bit like a fridge in reverse: grabbing and compressing warmth from the outside air and using it to heat your home.

Amid a political row over the costs of net zero, the analysis concluded these two switches could save households around £700 a year on heating bills and a further £700 on motoring costs.

Cutting down on meat and on excessive flying will also play an important, but smaller role they said.

The upfront investment will cost the equivalent of 0.2% of GDP, most of which would come from the private sector.

Overcoming the costs

But at the moment the benefits of these green switches are not spread fairly, and some people can’t access them at all.

The upfront costs of a heat pump – and home upgrades needed alongside – are “sizeable” and price out poorer households, even with current government subsidies, campaigners and the CCC said.

Zachary Leather, an economist at the Resolution Foundation thinktank, said: “While politicians fret and argue about the cost of net zero, today’s report shows that there are long-term benefits for consumers and the environment.”

But the government needs to “get serious” about helping lower-income households to adopt heat pumps and EVs so they can save money too, he said.

Meanwhile, it is still cheaper for someone with a driveway to charge their EV than someone who charges theirs on the street – and electricity prices overall should be made cheaper to help people reap the benefits.

Mr Berman from Energy UK said: “All through the energy system there are these small examples that tend to mean working class households find it more expensive to take up low carbon alternatives.”

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Climate protesters confront Bill Gates

The energy transition is ‘not fair yet’

It also comes at a time of wavering support for climate action. While Labour was elected on a mandate to go faster on climate action, the Conservatives have retreated from green issues, and Reform UK wants to dismantle net zero altogether.

Mr Berman said a way to “resolve that question of public consent is to ensure we’re rolling out that infrastructure in a really, really fair and inclusive way. And we’re not there yet”.

The public are also confused about if, when and how to switch to these green technologies, and which government should tackle this with clearer guidance, the CCC said.

Energy Secretary Ed Miliband said: “This advice is independent of government policy, and we will now consider it and respond in due course.

“It is clear that the best route to making Britain energy secure, bringing down bills and creating jobs is by embracing the clean energy transition. This government’s clean energy superpower mission is about doing so in a way that grows our economy and makes working people better off.

“We owe it to current generations to seize the opportunities for energy security and lower bills, and we owe it to future generations to tackle the existential climate crisis.”

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Health and beauty chain Bodycare in race to avert collapse

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Health and beauty chain Bodycare in race to avert collapse

A health and beauty retailer founded on a Lancashire market stall more than half a century ago is facing collapse amid a race to find a rescue deal.

Sky News has learnt that Bodycare, which employs about 1,500 people, could fall into administration as soon as next week unless a buyer is found.

City sources said that Interpath, the advisory firm which has been working with Bodycare and its owners for several months, was continuing to explore options for the business.

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The company is owned by Baaj Capital, a family office run by Jas Singh.

Its other investments have included In The Style, which underwent a pre-pack administration earlier this year, and party products supplier Amscan International.

Baaj also attempted to take over The Original Factory Shop earlier this year before its offer was trumped by Modella Capital, another specialist retail investor.

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News of Bodycare’s travails comes just weeks after the retailer secured a £7m debt facility to buy it short-term breathing space.

The facility was secured against Bodycare’s retail inventory, according to a statement last month.

Bodycare was established by Graham and Margaret Blackledge in Skelmersdale in 1970, and sells branded products made by the likes of L’Oreal, Nivea and Elizabeth Arden.

The chain was profitable before the pandemic, but like many retailers lost millions of pounds in the financial years immediately after it hit.

Bodycare received financial support from the taxpayer in the form of a multimillion pound loan issued under one of the Treasury’s pandemic funding schemes.

The chain is run by retail veteran Tony Brown, who held senior roles at BHS and Beales, the now-defunct department store groups.

If Bodycare does fall into insolvency proceedings, it would be the latest high street chain to face collapse this year, amid intensifying complaints from the industry about tax increases announced in last autumn’s budget.

In recent weeks, River Island narrowly avoided administration after winning creditor approval for a restructuring involving store closures and job losses.

Later this week, the struggling discount giant Poundland will seek similar approval from the courts for a radical overhaul that will entail dozens of shop closures.

Bodycare could not be reached for comment on Tuesday, while Baaj has been contacted for comment and Interpath declined to comment.

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Trump seeks to fire Fed governor, triggering fresh independence crisis

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Trump seeks to fire Fed governor, triggering fresh independence crisis

President Trump says he is firing a governor of the US central bank, a move seen as intensifying his bid for control over the setting of interest rates.

He posted a letter on his Truth Social platform on Monday night declaring that Lisa Cook – the first black woman to be appointed a Federal Reserve governor – was to be removed from her post on alleged mortgage fraud grounds.

She has responded, insisting he has no authority over her job and vowed to continue in the role, threatening a legal battle that could potentially go all the way to the Supreme Court.

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The president‘s threat is significant as he has consistently demanded that the central bank cut interest rates to help boost the US economy. Growth has sagged since he returned to office on the back of US trade war gloom and hiring has slowed sharply in more recent months.

Mr Trump has previously directed his ire over rates at Jay Powell, the chair of the Federal Reserve, blaming him for the economic jitters and has repeatedly called for him to be fired.

The Fed, as it is known, has long been considered an institution independent from politics and question marks over that independence has previously shaken financial markets.

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The dollar was hit overnight while US futures indicate a negative opening for stock markets.

Mr Powell’s term is due to end next spring and the president is expected to soon nominate his replacement.

Fed chair Jay Powell is seen in discussion with board member Lisa Cook. Pic: AP
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Fed chair Jay Powell is seen in discussion with board member Lisa Cook. Pic: AP

The Fed has 12 people with a right to vote on monetary policy, which includes the setting of interest rates and some regulatory powers.

Those 12 include the seven members of the Board of Governors, of which Ms Cook is one.

Replacing her would give Trump appointees a 4-3 majority on the board.

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July: Fed chair has ‘done a bad job’, says Trump

He has previously said he would only appoint Fed officials who support lower borrowing costs.

Ms Cook was appointed to the Fed’s board by then-president Joe Biden in 2022 and is the first black woman to serve as a governor.

Her nomination was opposed by most Senate Republicans at the time and was only approved, on a 50-50 vote, with the tie broken by then-vice president Kamala Harris.

It was alleged last week by a Trump appointed regulator that Ms Cook had claimed two primary residences in 2021 to get better mortgage terms.

Mortgage rates are often higher on second homes or those purchased to rent.

She responded to the president’s letter: “President Trump purported to fire me ‘for cause’ when no cause exists under the law, and he has no authority to do so,” she said in an emailed statement.

“I will not resign.”

Legal experts said it was for the White House to argue its case.

But Lev Menand, a law professor at Columbia law school, said of the situation: “This is a procedurally invalid removal under the statute.

“This is not someone convicted of a crime. This is not someone who is not carrying out their duties.”

The Fed was yet to comment.

It has held off from interest rate cuts this year, largely over fears that the president’s trade war will result in a surge of inflation due to higher import duties being passed on in the world’s largest economy.

However, Mr Powell hinted last week that a cut could now be justified due to risks of rising unemployment.

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New Look owners pick bankers to fashion sale process

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New Look owners pick bankers to fashion sale process

The owners of New Look, the high street fashion retailer, have picked bankers to oversee a strategic review which is expected to see the company change hands next year.

Sky News has learnt that Rothschild has been appointed in recent days to advise New Look and its shareholders on a potential exit.

The investment bank’s appointment follows a number of unsolicited approaches for the business from unidentified suitors.

New Look, which trades from almost 340 stores and employs about 10,000 people across the UK, is the country’s second-largest womenswear retailer in the 18-to-44 year-old age group.

It has been owned by its current shareholders – Alcentra and Brait – since October 2020.

In April, Sky News reported that the investors were injecting £30m of fresh equity into the business to aid its digital transformation.

Last year, the chain reported sales of £769m, with an improvement in gross margins and a statutory loss before tax of £21.7m – down from £88m the previous year.

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Like most high street retailers, it endured a torrid Covid-19 and engaged in a formal financial restructuring through a company voluntary arrangement.

In the autumn of 2023, it completed a £100m refinancing deal with Blazehill Capital and Wells Fargo.

A spokesperson for New Look declined to comment specifically on the appointment of Rothschild, but said: “Management are focused on running the business and executing the strategy for long-term growth.

“The company is performing well, with strong momentum driven by a successful summer trading period and notable online market share gains.”

Roughly 40% of New Look’s sales are now generated through digital channels, while recent data from the market intelligence firm Kantar showed it had moved into second place in the online 18-44 category, overtaking Shein and ASOS.

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