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The UK will rejoin the European Union’s flagship Horizon science programme after two years of absence post-Brexit, the government has confirmed.

Number 10 said the move would happen “through a bespoke new agreement with the EU”.

A spokesperson added Prime Minister Rishi Sunak secured “improved financial terms of association that are right for the UK and protect the taxpayer”.

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Mr Sunak said: “We have worked with our EU partners to make sure that this is right deal for the UK, unlocking unparalleled research opportunities, and also the right deal for British taxpayers.”

Scientists called the announcement “tremendous news”.

Horizon is a collaboration involving Europe’s leading research institutes and technology companies which sees EU member states contribute funds that are then allocated to individuals or organisations on merit.

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The UK was negotiating a deal to remain in the €95.5bn programme, but talks stalled over Brexit-related disagreements such as Northern Ireland.

In the two years since the UK was removed, Downing Street has stepped in to match EU grant money lost.

However, scientists warned that UK researchers have been missing out on collaboration with colleagues in Europe.

Professor Paul Stewart, from the Academy of Medical Sciences said the return “marks a pivotal moment for UK science”.

“After a hiatus, the scientific community is celebrating the tremendous news that we are once more part of the EU’s flagship funding programme,” he said.

“Health research is an international endeavour, it relies on supporting the best ideas, but also on creating cross-border networks which is good news for the UK, Europe and the rest of the world.

“Association sends a very strong message that the UK is open for business and remains a prime destination to work on health research and innovation to improve lives.”

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Donelan: Horizon ‘great deal for taxpayers’

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The government said UK researchers can apply for grants and bid to take part in projects under the Horizon programme from today.

As well as Horizon the UK will join the EU’s space programme, Copernicus, but it will not take part in the bloc’s nuclear technology scheme, Euratom.

Deal ‘not mission creep back into EU’

The breakthrough comes after months of talks between London and Brussels.

It had been hoped that a British return to Horizon would follow in the wake of the Windsor Framework deal, agreed in February and designed to address concerns over post-Brexit arrangements in Northern Ireland.

Whitehall sources said in July a draft deal was with the prime minister – but Downing Street said a UK-based alternative known as Pioneer also remained an option because Mr Sunak was concerned about “value for money”.

Michelle Donelan, the secretary of state for science, denied the move was “mission creep back into the EU”.

She told Sky News: “This is fantastic news, not just for British scientists and researchers but also the British taxpayer.

“What we’re announcing today is a great deal, a deal that many said we won’t be able to get.”

Under the terms of the deal, the UK will not need to pay into the scheme for the two years it was absent with costs under the programme beginning again in January 2024.

The government also pointed to the inclusion of a so-called “clawback” mechanism, which will mean that the UK will be compensated if British scientists receive significantly less money than the UK puts into the programme.

Ms Donelan said the deal also includes an overperformance indicator, which means the UK won’t be penalised for overperforming “so we can really back our British scientists to achieve”.

Newly-appointed shadow science secretary Peter Kyle told broadcasters that ministers now need to “get on with it”.

“What we’re missing out on is two years’ worth of innovation,” the Labour MP said.

“Two years of global companies looking around the world for where to base their research centres and choosing other countries than Britain, because we are not part of Horizon… This is two years of wasted opportunity for us as a country.”

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FCA to give companies extra 48 hours in ‘name and shame’ compromise

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FCA to give companies extra 48 hours in 'name and shame' compromise

The City watchdog is to give companies it is investigating an additional window to contest allegations as it seeks to defuse the months-long row over its so-called ‘name and shame’ proposals.

Sky News has learnt that the Financial Conduct Authority (FCA) plans to disclose on Thursday that it will allow the subjects of enforcement probes a 48-hour window to assess the contents of its announcements before they are made public.

Under the proposals, the FCA would give companies ten days’ notice that they were being investigated, at the end of which it could decide to proceed with the announcement, triggering the extra 48-hour window.

The revised plan represents a climbdown from the regulator after a fierce backlash from the City and politicians which started earlier this year.

Jeremy Hunt, the then chancellor, was among those who criticised the FCA’s stance.

In recent weeks, the watchdog’s chair, Ashley Alder, and chief executive Nikhil Rathi, have acknowledged flaws in the original plan and signalled that they would water it down.

They have argued that the principle of naming and shaming will act as an effective regulatory deterrent.

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The Treasury and Sir Keir Starmer have put Britain’s economic regulators on notice that they need to adopt a pro-growth approach to their mandates.

Mr Rathi, who threw his hat into the ring for the soon-to-be-vacant cabinet secretary’s post, is expected to step down when his first five-year term expires next autumn.

The FCA declined to comment.

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Supermarket loyalty prices offer genuine savings, regulator rules

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Supermarket loyalty prices offer genuine savings, regulator rules

Supermarket loyalty schemes offer genuine savings for shoppers, according to the competition regulator following an investigation into claims of price manipulation.

The Competition and Markets Authority (CMA) said its review of 50,000 loyalty priced products showed that 92% offered genuine savings against the usual price.

That was despite 55% of shoppers thinking “usual” prices were raised to make loyalty deals more appealing, it said.

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The watchdog’s report found “very little evidence” of supermarkets inflating their ‘usual’ prices to make loyalty promotions seem like a better deal but it did call on firms to bolster access to their schemes.

It was asked to investigate by the consumer group Which?.

Which? had complained that deals were “not all they were cracked up to be” but chains declared that the group’s own report on the issue had failed to take the effects of inflation into account.

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The CMA’s report was published at a time of year when supermarket chains tend to scrap for market share by offering discounts to lock in customers for their Christmas grocery shopping.

There is a chance, however, that stretched consumer budgets will benefit to only a limited extent this year as the retail sector faces pressure to save money and protect profits through looming leaps in costs arising from the budget.

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Inflation rises beyond forecast

Major employers, such as grocers, have warned that hikes to employer National Insurance contributions from April will hurt jobs and investment while the rate of inflation has risen again above the Bank of England’s target.

Retail industry body the BRC warned earlier this week that food inflation could soon be on the rise due to rising costs, with the pace of increases for fresh produce already accelerating.

George Lusty, interim executive director of consumer protection at the CMA, said of its price probe: “We know many people don’t trust loyalty card prices, which is why we did a deep dive to get to the bottom of whether supermarkets were treating shoppers fairly.

“After analysing tens of thousands of products, we found that almost all the loyalty prices reviewed offered genuine savings against the usual price – a fact we hope reassures shoppers throughout the UK.

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“While these discounts are legitimate, our review has shown that loyalty prices aren’t always the cheapest option, so shopping around is still key. By checking a few shops, you can continue to stretch your hard-earned cash.”

The regulator said that while loyalty prices were generally some of the cheapest available, people could make an average saving of 17-25% buying loyalty priced products at the five supermarkets examined: Tesco, Sainsbury’s, Waitrose, Co-op and Morrisons.

A Tesco spokesperson said of the findings: “Clubcard Prices has always been about offering genuine savings and rewards to our customers, and we are pleased that this has been evidenced by the CMA.

“We are always working to find the best possible deals for our customers, and with around 8,000 products included in Clubcard Prices every week, we’re helping customers to save up to £385 a year off their groceries.”

As part of its review, the CMA said it also found no evidence that consumer laws were being breached by the way supermarkets collect and use people’s data when they sign up to a loyalty scheme.

Sue Davies, Which? head of food policy, responded: “Two-tier loyalty pricing has become a common practice across retailers. It’s therefore reassuring that the CMA has found that most of the prices it looked at across supermarkets offered genuine savings against the usual price.

“However, it stresses that it is worth shopping around as they aren’t always the cheapest option.”

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Airports join budget backlash with warning of business rates ‘catastrophe’

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Airports join budget backlash with warning of business rates 'catastrophe'

Britain’s biggest airports are joining the growing private sector backlash against Rachel Reeves’s budget, warning that a £1bn business rates bill for the industry will trigger the cancellation of routes to and from the UK and higher costs for passengers.

Sky News has obtained a draft letter from Airports UK, which represents more than 50 airports across the country, which claims that business rates revaluations will result in the industry being forced to pay more than £1bn – a fivefold increase from the current level.

It describes the impact as “catastrophic”, and demands an urgent meeting with the chancellor to discuss the measures, which would affect the sector from April 2026.

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“Airports are already some of the largest rates payers in the country,” it said.

“These revaluations will increase average rates bills for airports in England by more than 450%, with some airports facing multiples of 12 times.”

The draft letter, which is addressed to Ms Reeves and intended to be copied to Sir Keir Starmer and other cabinet ministers, is understood to be close to being finalised.

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One industry source said it could be sent in the coming days.

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In the version seen by Sky News, the industry body says the soaring rates bill “is equivalent to doubling the corporation tax levied on the sector, at a time when the government has committed to stable tax and policy regimes to drive business confidence and stimulate private sector investment”.

“These increases in rates, however, would destroy any chance of this and cause huge damage to the economy,” it said.

“Investment in airport assets will decrease, routes to and from the UK will be lost (as can already be seen in Germany where taxes are rising), trade will be hurt, and British travellers will be hit with higher costs and less choice.”

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Airports UK also said that the tax changes announced in the budget would jeopardise the government’s entire growth agenda.

“Without our sector as a major partner, the government’s ambition to secure the highest growth rate in the G7 and unlock an investment-led approach to transforming the economy will be materially damaged,” it said.

“The [Valuation Office Agency’s] revaluation [to determine future business rates liabilities] will threaten the UK’s status as a leader in aviation and a hub for global connectivity and trade.

“Airports cannot be expected to sustain increases of this magnitude without having to scale back investment or to cut routes.

“These increases are punitive against all sizes of airports and threaten the very viability of several airports, without which critical regional connectivity would be lost.”

“This would imperil your growth mission before it even gets started, and we request an urgent meeting in December to resolve this matter.”

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The letter makes airports the latest in a string of industries to deliver stark warnings to the Treasury about the Budget’s likely impact.

In recent weeks, Sky News has revealed similar letters from the hospitality and retail sectors, in which they have told the chancellor that job losses, business closures and price rises will be unavoidable when rises to employers’ national insurance come into effect next April.

The warning from the airports industry comes amid a slew of corporate activity in the sector, with The Sunday Times reporting last weekend that London City and Bristol airports could soon change hands in a £10bn deal.

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Heathrow’s shareholder base has also changed in recent months, with Paris-based investor Ardian and Saudi Arabia’s sovereign wealth fund swooping for a 38% stake.

A spokesman for Airports UK declined to comment on the letter.

The trade association is run by Karen Dee and chaired by Baroness McGregor-Smith, a prominent businesswoman.

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