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Sainsbury’s is planning to shed more than 3,000 head office positions and shut its remaining in-store cafés in a bid to reduce costs by £1 billion. As Britain’s second-largest grocer, the company employs around 150,000 people across more than 1,400 shops nationwide.

The business said it was contending with “a particularly challenging cost environment” following recent budget tax increases and had been forced to make “tough choices” to boost efficiency. Part of these efforts will see Sainsbury’s reorganise its management structure, including an expected 20 per cent reduction in senior roles over the coming months, subject to consultation.

The cuts follow Sainsbury’s announcement last week that hourly paid workers would receive a two-stage pay rise of 5 per cent, worth more than £1,100 a year on average. They also build on a plan revealed in February to eliminate 1,500 roles, including some at head office, as part of the retailer’s “next level” strategy to restructure and “right-size” the business by reallocating space from general merchandise and clothing to food.

In a move to simplify operations further, Sainsbury’s said it would close its remaining 61 in-store cafés, subject to consultation. It highlighted that most loyal customers rarely visit the cafés and have shown greater interest in outlets run by specialist partners. The chain added it would also discontinue its less-popular patisserie, hot food and pizza counters, replacing them with items in stronger demand.

Simon Roberts, the chief executive, credited Sainsbury’s strategy for generating “real momentum” across the business, pointing to improvements in the retailer’s value proposition, quality and market share. He nevertheless acknowledged “a particularly challenging cost environment”, which had prompted “tough choices about where we can afford to invest and where we need to do things differently”. He pledged to offer full support to colleagues affected by the job cuts.

Roberts had cautioned earlier that he would “look very carefully” at future hiring plans in light of looming wage pressures, despite the business enjoying what it called its “biggest ever” Christmas. The rise in employers’ national insurance contributions from April is expected to add about £140 million to the grocer’s costs.

Clive Black, an analyst at Shore Capital, noted that Sainsbury’s decision to streamline its operations was unavoidable “in the face of very considerable UK government sourced cost expansion”. He also echoed the grocer’s own data, suggesting that most of its loyal shoppers rarely use the cafés.

Sainsbury’s shares, which have fallen 8.5 per cent in the past year, were down a further 0.4 per cent at 256½p in afternoon trading.

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Sainsbury’s to cut 3,000 head office jobs and close cafés in £1bn cost-cutting drive

The government is preparing to soften its proposed tax changes for non-domiciled residents, following concerns over the growing exodus of wealthy individuals from the UK.

Speaking at a fringe event during the World Economic Forum in Davos, Rachel Reeves confirmed that ministers will introduce an amendment to the Finance Bill. In response to reports of 10,800 millionaires having left Britain last year, Reeves said: “We have been listening to the concerns that have been raised by the non-dom community.”

Under the revised scheme, the government will broaden the criteria for its temporary repatriation facility, which allows non-doms to transfer funds swiftly to the UK without incurring substantial tax liabilities. Reeves sought to reassure critics by clarifying that double-taxation agreements will remain unaffected by these changes, specifically highlighting concerns raised by countries such as India. “That’s not the case: we are not going to change those double-taxation conventions,” she added.

A Treasury source underscored the government’s desire to make Britain’s tax regime more appealing to talented entrepreneurs and business leaders, while Business Secretary Jonathan Reynolds echoed support for attracting overseas wealth to the UK: “We welcome people coming to the UK and we’ll have a specific kind of tax treatment that they would expect.”

Nevertheless, tax advisers warn that the amendment may not be enough to prevent further departures of both non-doms and British entrepreneurs, who were unsettled by the hikes outlined in the autumn budget. Rachel De Souza, tax partner at RSM UK, described the move as “woefully inadequate”, saying it fails to address broader issues such as maintaining inheritance tax exemptions for offshore trusts and reversing proposed changes to agricultural and business property relief.

The forthcoming changes aim to simplify how income and gains in trust structures are allocated to beneficiaries and should increase the amount of distributions that qualify under the temporary repatriation facility. However, data from analytics firm New World Wealth and investment advisers Henley & Partners suggests the UK’s stance has already prompted a mass migration, with a net loss of 10,800 millionaires in 2024. This figure represents a 157 per cent rise on the previous year, putting Britain second only to China in the scale of affluent flight.

The exodus has largely been to other European hubs such as Italy and Switzerland, as well as the United Arab Emirates, and includes some of Britain’s wealthiest: last year, 78 centi-millionaires and 12 billionaires relocated. Stephen Kenny, head of private client at PKF Littlejohn, criticised the timing of the government’s decision: “Many in the industry raised the likely impact of these changes, and Labour has had the opportunity to reassure the internationally mobile community that the UK is open for business. But they have failed to heed the warning until too late.”

Kenny also cautioned that the government’s apparent U-turn may not stem the flow: “People feel it is impossible to remain in the UK, not only because of changes in the tax regime but because they have no confidence it won’t change further in the future. I doubt this announcement will do much to change people’s opinion.”

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Rachel Reeves to relax non-dom tax rules as millionaire exodus rises

In a move reflecting mounting concerns about disinformation and cyber threats, UK-based venture capital firms Fuel Ventures and Oxford Capital have co-led a $1 million pre-seed funding round in Egregious.

The pioneering company specialises in “Human AI” solutions designed to protect organisations against malicious deployments of artificial intelligence, including superhuman AI deception, disinformation and harmful content.

The funding, which follows warnings in the World Economic Forum’s Global Risks Report that disinformation remains a top global hazard, will bolster the development of Egregious’s advanced platform. Egregious’s solutions target a range of sectors, from national security and defence — with private and secure social media intelligence — to finance, corporate security, marketing, cybersecurity, and insurance.

By focusing on behavioural analysis and digital risk management, the firm seeks to arm enterprises, governments, and insurers with the tools to spot manipulative AI content and reduce systemic vulnerabilities. According to Egregious CEO and founder Rupert Small, PhD, this deal marks a “defence line for humanity,” enabling the company to counter the growing threat of AI-generated disinformation and narrative manipulation on social media platforms.

Mark Pearson, founder of Fuel Ventures, emphasised that Egregious’s expertise and dedication to tackling major societal challenges aligns with Fuel Ventures’ vision of spurring innovation. “Rupert and his team have demonstrated exceptional expertise and have an unwavering commitment to addressing some of the most critical challenges facing society today,” Pearson said.

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Fuel Ventures and Oxford Capital join forces with $1M backing for Egregious to fight AI-driven deception

Renowned for his expertise in plasma physics and aerospace engineering, Dr. Sergey Macheret has carved out a prestigious career across both academic and industrial landscapes.

Originally from Kiev, Ukraine, he acquired his M.S. in Physics from the Moscow Institute of Physics and Technology and later obtained his Ph.D. in Plasma Physics and Plasma Chemistry from the Kurchatov Institute of Atomic Energy. Macheret’s professional journey includes positions at the Ohio State University, Princeton University, and Purdue University, as well as significant contributions to cutting-edge aerospace projects during his time at Lockheed Martin’s Skunk Works. In 2014-2024, he worked at Purdue University as a Professor of Aeronautics and Astronautics, expanding his role in 2022-2024 to include a professorship in Electrical and Computer Engineering. Dr. Macheret further extended his influence into entrepreneurial ventures by founding US Plasma Engineering LLC in 2023, which specializes in pioneering plasma technologies. An elected Fellow of the American Institute of Aeronautics and Astronautics, he has received accolades such as the 2022 AIAA Plasmadynamics and Lasers Award, highlighting his trailblazing contributions to the field. His extensive publication record, featuring over 170 papers, several books and book chapters, and numerous patents, further attests to his profound impact on science and technology.

What inspired you to pursue a career in plasma science?

During my early education, I got interested in fundamental microscopic interactions among atoms, molecules, electrons, and ions, and I was fascinated by the complex macroscopic behaviors of gases and plasmas stemming from those fundamental microscopic interactions. In other words, I was excited about the beautiful science of plasmas and molecular processes. Later on, I learned that plasmas also play a critical role in both natural phenomena and practical technologies, which got me even more excited, and I decided to devote my career to studies of fundamental processes in plasmas and to development of novel plasma-based technologies.

How has the transition from academia to industry and back influenced your approach to research?

The transition has been immensely enriching. The great thing about academia is that you are free to explore any idea (well, provided that you can get some funding for that). However, the “publish or perish” environment results in the majority of publications representing just incremental advances rather than real breakthroughs.

At Skunk Works, I was fortunate to work in a unique environment where incremental advances are viewed as meaningless, and you have to come up with ideas that are real game-changers while also being practical. In addition, in the Skunk Works culture, research and development is done at a truly breakneck speed, and more is done in a few weeks or months than would be done in academia in years.

Returning to academia with this experience and perspective definitely changed the way I approached research and allowed me to guide students accordingly.

Can you discuss a project that significantly impacted your career?

Two projects that started in the late 1990s and continued into the early 2000s, when I worked at Princeton University, have profoundly affected my career.

One project was prompted by the claims made in the literature that weakly ionized plasmas can weaken or even eliminate shock waves and that a combination of plasmas and magnetic field can dramatically increase performance of the so-called scramjet engines for hypersonic airbreathing vehicles. In that project, those claims were debunked, but then a profound insight into the interaction of plasmas with supersonic and hypersonic flows was developed, and new ways of plasma control of such flows were proposed and studied.

The other project was motivated by the extremely high power required to sustain plasma in air, and the goal was to reduce the power budget by orders of magnitude. That project resulted in novel ways of generation and control of plasmas, including the use of electron beams and repetitive high-voltage nanosecond pulses.

Both projects not only changed my career but also affected the entire field of aerospace application of plasmas.

What challenges do you face in your current research?

One major challenge is the integration of emerging plasma technologies with existing systems, both in aerospace and non-aerospace applications. The existing systems have stringent requirements and have already been optimized with established technologies that are not easily displaced or augmented with new methods like plasma-based solutions. Overcoming these challenges requires interdisciplinary collaboration and persistent innovation.

What future developments in plasma technology and its applications do you find most promising?

Since plasmas are powered by electricity and can efficiently stimulate chemical reactions, plasma technology can potentially become a critical element in the global “green transition” for the entire chemical industry so that the primary energy source would change from burning hydrocarbons to the use of renewable electrical energy.

Another class of applications is made possible because plasmas, on one hand, efficiently interact with electromagnetic signals, and on the other hand, can have their properties quickly changed. This can potentially enable plasma-based systems for electromagnetic interactions and control, such as tunable and reconfigurable radio-frequency antennas, filters, limiters, etc.

What advice would you give to students interested in pursuing a career in plasma science and technology?

I would advise students to cultivate a strong foundation in both physics and applied mathematics, as these are crucial for understanding and innovating in plasma science and engineering. The deeper and wider your fundamental knowledge the easier you will adapt to rapidly changing technology and new tasks. Moreover, the students should develop a deep understanding of the underlying physical phenomena and the ability to perform rough, order-of-magnitude, estimates; this cannot be ‘outsourced’ to computers by feeding them long rigorous equations. Equally important is gaining hands-on experience through internships and research projects in diverse settings, including both academia and industry, to understand the practical applications of their knowledge.

Reflecting on your career, what do you consider your greatest achievement?

I discussed two of my principal achievements, i.e. my contributions to plasma aerodynamics and to highly efficient plasma generation and control, in my answer to the question about projects which significantly impacted my career. Those achievements brought me honors and awards. In addition, I am also proud of my work on the theory of chemical reactions, particularly dissociation of molecules and bimolecular exchange reactions, in thermal nonequilibrium where the vibrational temperature of molecules is much higher (as occurs in electric discharge plasmas) or much lower (which occurs in hypersonic shock layers) than the temperature of translational motion.

Read more:
An In-Depth Interview with Dr. Sergey Macheret: Exploring the Frontiers of Plasma Science and Technology

As winter settles in, it’s vital to bolster your immune system and promote overall metabolic health to keep energy levels high and prevent illness.

Osteopathic physician Dr. Mercola is an award-winning Fellow of the American College of Nutrition, and New York Times best-selling author, emphasizes that nutrition and lifestyle adjustments play a critical role in strengthening immunity and supporting metabolic function.

Here are some of Dr. Mercola’s top tips to optimize your health this January.

1. Optimize Vitamin D Levels for Immunity and Metabolic Health

Vitamin D is crucial for immune health and metabolic functions. Less sunlight in the winter can lead to a deficiency in this important nutrient. Dr. Mercola suggests:

Sun Exposure: Get outside whenever possible to boost your body’s natural vitamin D production.

Food Sources: Add vitamin D-rich foods like fatty fish (such as salmon, mackerel, or sardines) and egg yolks from organic, pasture-raised eggs to your meals.

Supplements: Think about taking a high-quality vitamin D3 supplement, particularly if you’re not getting enough sun during the colder months.

2. Prioritize Gut Health to Boost Immunity

The gut is often called the gateway to health. A healthy gut microbiome is essential for a strong immune system, affecting everything from nutrient absorption to hormone regulation. Dr. Mercola recommends:

Fermented Foods: Add fermented foods like kimchi, sauerkraut, and kefir to promote gut health.

Fiber-Rich Vegetables: Include fiber-packed vegetables like spinach, broccoli, and sweet potatoes, which not only provide nutrients but also help nourish your gut microbiome.

Limit Processed Foods: Cut back on processed foods and artificial additives, which can upset the balance of your gut and trigger inflammation.

4. Stay Hydrated to Support Metabolic and Immune Health

Hydration is key for both metabolic health and immunity, helping your body function properly. Drinking enough water is often neglected but is essential for flushing out toxins and supporting cellular processes. Dr. Mercola recommends:

Filtered Water: Make sure to drink plenty of clean, filtered water throughout the day to maintain proper hydration.

Herbal Teas: Green tea, especially, is packed with antioxidants that help boost the immune system while keeping you hydrated.

5. Supplement Smartly to Fill Nutritional Gaps

While food should be your primary source of nutrients, Dr. Mercola acknowledges that modern agricultural practices have depleted the soil of vital minerals, leading many to experience deficiencies. To fill nutritional gaps, consider:

Omega-3 Fatty Acids: These essential fats often found in fish oil help reduce inflammation, support brain health, and boost the immune system.

Magnesium: This mineral is crucial for energy production and helps the body manage stress more effectively.

Probiotics: Maintaining a healthy gut microbiome is essential for immune health, and probiotics can support this.

Incorporating these supplements can enhance your body’s ability to fend off illness and maintain energy levels during the winter.

6. Incorporate Anti-Inflammatory Foods for Immune Support

Inflammation is the body’s natural response to injury or infection, but chronic inflammation can weaken the immune system. Dr. Mercola recommends anti-inflammatory foods like:

Turmeric: With its active compound curcumin, turmeric helps reduce inflammation and supports immune health.

Leafy Greens: Kale, spinach, and other greens are rich in antioxidants that help manage inflammation and protect cells.

Adding these foods to your winter diet can reduce inflammation, providing better immune protection.

7. Adopt a Lifestyle That Supports Immunity

In addition to diet, lifestyle choices play a significant role in immune health. Dr. Mercola emphasizes practices like intermittent fasting, which helps optimize digestion and energy use. By narrowing your eating window, you give your body time to rest and recalibrate its insulin response, aiding fat-burning and reducing inflammation over time.

Prioritizing sleep, managing stress, and exercising regularly will support both your immune system and metabolism during these chilly winter months. For more information on how you can prioritize comprehensive wellness in 2025, visit Dr. Mercola’s website.

Read more:
Winter Wellness: Dr. Mercola’s Top Nutritional Tips to Boost Your Immunity This January

Natural wellness solutions continue to reshape how we think about personal care and daily vitality. As consumers seek alternatives to conventional options, botanical products have gained significant attention for their potential benefits.

Among these, kratom-based products have emerged as a notable category, with companies like VIVAZEN® leading the way through their commitment to quality and innovation. Their approach combines time-tested botanical wisdom with modern manufacturing practices, creating products that meet contemporary wellness needs.

The Science Behind Botanical Blends

The effectiveness of botanical products lies in their active compounds and how they interact with the body’s systems. Kratom contains natural compounds that can produce different effects depending on serving size – smaller amounts typically provide energizing effects, while larger amounts tend to promote minor pain relief from physical activity. When combined with other botanical ingredients, these effects may work together to create specific desired outcomes.*

Research shows that the primary compound in kratom, mitragynine, interacts with certain receptors in the brain. This interaction explains why users report various positive effects, from increased energy to minor pain relief from physical activity. VIVAZEN®’s product development team has carefully studied these interactions to create optimal botanical combinations.*

Quality Control and Manufacturing Excellence

Manufacturing excellence stands as a cornerstone of premium botanical products. Modern facilities operating under Good Manufacturing Practices (GMP) guidelines ensure consistent quality across every batch. These facilities maintain strict controls over temperature, humidity, and other environmental factors that could affect product quality.

Third-party laboratory testing represents another critical quality control measure. These independent analyses verify the purity and potency of ingredients while screening for potential contaminants. This testing protocol helps ensure that products meet established safety standards and contain the stated amounts of active ingredients.

Product Forms and Applications

Different delivery methods suit different needs and preferences. Shot formats offer quick convenience for busy professionals, while gummies provide an easy way to incorporate botanicals into daily routines. Powder forms allow for more precise serving size control, and capsules offer straightforward portability.

Each format serves specific purposes:

– Shots: Perfect for immediate consumption without preparation

– Gummies: Ideal for consistent serving sizes and portable use

– Powders: Suitable for those who prefer to customize their serving sizes

– Capsules: Convenient for travel and precise serving measurement

Understanding Serving Sizes and Effects

Proper serving size awareness helps users achieve their desired results. Different formats contain specific amounts of active compounds, typically measured in milligrams. For example, some products might contain 40mg of active compounds per container, while others may provide 130mg, allowing users to choose based on their individual needs.

The timing of use also matters. Many users find morning use helpful for energy and focus, while others prefer other times of day for minor pain-relieving qualities associated with physical exertion. Personal experimentation within recommended guidelines helps determine optimal timing for individual needs.*

Ethical Sourcing Practices

Responsible sourcing practices matter increasingly to consumers and companies alike. This includes ensuring fair labor practices and sustainable harvesting methods. These practices help maintain consistent supply while protecting natural resources and supporting local communities.

Quality botanical products require careful attention to:

– Harvest timing and techniques

– Processing methods

– Storage conditions

– Transportation practices

Integration Into Daily Wellness Routines

Successfully incorporating botanical products into daily routines requires thoughtful planning. Morning users might start with an energizing serving, while others might prefer afternoon use for maintaining focus during busy workdays.

Consider these factors when planning usage:

– Daily schedule and commitments

– Individual response patterns

– Specific wellness goals

– Activity levels and timing

The Role of Innovation in Botanical Products

Product innovation continues driving improvements in botanical supplements. Advanced extraction techniques help maintain compound stability while improving product consistency. New delivery methods make products more convenient and effective, meeting evolving consumer preferences.

Research and development efforts focus on:

– Extraction efficiency

– Compound stability

– Product bioavailability

– User experience enhancement

Natural wellness solutions continue evolving as science advances our understanding of botanical compounds and their effects. Companies committed to quality, like VIVAZEN®, demonstrate how traditional botanical wisdom can merge with modern science to create effective products. For those interested in exploring botanical supplements, starting with reputable manufacturers who prioritize quality control and transparent testing practices provides the best foundation for success. Consider your personal wellness goals, daily routine, and preferred product formats when selecting products, and remember that individual experiences may vary. Taking time to understand proper usage guidelines and paying attention to your body’s response will help you make the most of these natural wellness options.

*These statements have not been evaluated by the FDA and these products are not intended to diagnose, treat, cure, or prevent any disease.

Read more:
Exploring VIVAZEN’s Unique Blend of Ancient Botanicals and Modern Science

HMRC has come under renewed scrutiny after figures showed that over 44,000 callers were abruptly cut off while on hold last year, with some facing wait times of up to 70 minutes.

The revelation arrives just as millions of taxpayers prepare to file their returns before the current tax year ends, sparking concerns that phone lines could become even more congested.

The tax authority rejected suggestions that it was providing a “deliberately poor” phone service. However, as consumers become increasingly frustrated by long waits and abrupt disconnections, many businesses are looking at how to improve the customer experience and mitigate bottlenecks — especially during high-demand periods.

Ben Booth, chief executive and founder at MaxContact, a contact centre software specialist, has outlined several strategies that organisations can employ to trim waiting times and improve caller satisfaction:

Intelligent call routing via IVRs

Interactive Voice Response (IVR) systems can prioritise and direct callers to the most suitable agent based on urgency and expertise. This ensures issues are resolved more swiftly and keeps callers from being transferred multiple times. IVRs can also calculate estimated wait times, offer callbacks, and distribute calls evenly among agents to prevent lines from becoming overwhelmed.

Omnichannel options

By giving customers the choice to contact you via live chat, email, social media, or self-service portals, you can lessen call volumes for straightforward issues. More complex queries can still be handled over the phone, while simpler matters are resolved on alternative channels. This approach relieves pressure on phone lines and gives customers flexibility in how they engage with your business.

Speech analytics

Incorporating a speech analytics tool, like Spokn AI, can provide post-call summaries and real-time insights into customer sentiment, helping to identify stress points or frequently asked questions that prolong call times. By spotting potential issues quickly, managers can intervene to de-escalate calls and ensure agents have the training and resources they need to resolve problems efficiently.

Coaching and monitoring

Ongoing coaching enables agents to develop faster and more effective call-handling skills. Meanwhile, live monitoring allows managers to offer immediate support if calls head in a difficult direction. Better agent performance and guidance translate directly to lower call durations, reduced wait times, and a better overall customer experience.

Workforce management

Intelligent workforce management tools help contact centres match staffing levels to demand, ensuring that peak times are properly staffed while avoiding employee burnout. These platforms can also facilitate real-time adjustments — such as calling in extra help or rescheduling breaks if an unexpected spike in calls occurs.

Commenting on the potential for HMRC and other large organisations to reduce hold times, Booth said: “It’s about putting the right technology in place and giving customers options. Adopting these strategies not only cuts waiting times but also builds trust and loyalty among consumers.”

Yet, despite such industry advice, HMRC’s phone lines remain under intense scrutiny as the tax deadline looms. With calls expected to ramp up in the coming weeks, many will be watching closely to see if the department can address mounting frustrations over long queues and abrupt disconnections.

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HMRC phone lines under fire as callers face 70-minute waits

Rachel Reeves has pledged a root-and-branch review of the UK’s immigration framework, including potential new visa routes for high-skilled workers in AI and life sciences, as part of a wider push to stimulate economic growth.

The chancellor revealed that a white paper will be published later this year, announcing the Government’s vision for “Britain to be open for business and open for talent”.

Speaking at a breakfast event during the World Economic Forum in Davos, Reeves said: “We are going to look again at routes for the highest skilled people, visas particularly in the areas of AI and life sciences. Britain is open for business, we are open for talent, we’ve got some of the best universities, some of the best entrepreneurs in the world, but we also want to bring in global talent.”

While Labour has long emphasised the need to bring overall migration down, Reeves pointedly signalled a desire to reassure international firms and investors that the UK remains an attractive destination for skilled professionals. Ministers intend to engage with businesses on how best to reform current visa pathways, including empowering British diplomats overseas to promote the UK as an appealing place to live and work.

Asked whether she was as comfortable with wealth creation as Tony Blair’s government once declared, Reeves responded emphatically: “Absolutely.” She and Jonathan Reynolds, the business secretary, spent the summit underlining the Government’s “pro-growth” ethos, insisting key infrastructure projects such as airport expansions must not be thwarted by entrenched local opposition.

Reeves was also pressed on the possible approval of Heathrow’s third runway. She avoided direct confirmation but emphasised that the answer to major national projects “can’t always be no”. Her stance suggests a willingness to back large-scale developments to drive growth, reflecting concerns that delays to major infrastructure have hampered the economy.

The chancellor confirmed that Marcus Bokkerink’s abrupt departure as chair of the Competition and Markets Authority was linked to ministers’ calls for regulators to support economic growth more proactively. Bokkerink will be succeeded by Doug Gurr, a former Amazon UK boss, after officials raised concerns that the CMA’s approach had been impeding growth opportunities in crucial sectors, including tech and financial services.

“Growth is our number one mission,” Reeves explained. “We want our regulators to be part of that mission … He [Bokkerink] recognised it was time for him to move on and make way for somebody who does share the mission and strategic direction this Government is taking.”

Commenting on the proposed visa overhaul, Karendeep Kaur, Legal Director at immigration law firm Migrate UK, welcomed the prospect of more straightforward routes for businesses that depend on specialist skills. However, she warned that many firms remain wary of complex sponsor licence obligations and escalating visa-related costs.

“For this to be successful, businesses will need reassurance that gaining specialist talent will outweigh the demands placed on them as sponsor licence holders,” Kaur said. “Since 31 December 2024 UKVI announced that businesses will face instant revocation of their licence should they be found to be ‘clawing back’ certain sponsorship-associated costs. … The increased pressure for compliance may deter businesses from applying for a sponsor licence.”

Kaur also highlighted impending visa fee increases, including a proposal to raise the certificate of sponsorship fee from £239 to £525. When combined with sponsor licence fees, skills charges, and immigration health surcharges – especially for family members – the cost to employers and employees can easily mount to tens of thousands of pounds.

“As enticing as it may be to work and live in the UK,” she added, “there is still demand for the government to reduce overall migration. That places them in a precarious position over how lenient these routes can be.”

Despite these concerns, the Treasury aims to underscore the UK’s strong suit of world-class universities, thriving entrepreneurship and “pro-growth” agenda, hoping a revamped visa strategy will help tackle post-pandemic challenges and bolster the country’s position as a global innovation hub.

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UK to review visa system to entice top AI and science talent, says Reeves

Britain’s soaring sickness bill has left policymakers and economists scratching their heads, with near-record numbers of workers absent on long-term health grounds costing the public purse more than £65.7 billion a year.

Some 2.8 million people now claim incapacity and disability benefits, far above pre-pandemic levels, and the House of Lords’ economic affairs committee has warned that the problem cannot be attributed solely to deteriorating health or NHS delays. Instead, evidence suggests the benefits system itself may be contributing to a surge in claimants, at a time when overall sickness support already eclipses the entire national defence budget.

A rise in mental health conditions and back problems has partly fuelled the sharp jump. Official survey data from the Office for National Statistics (ONS) indicates that around 700,000 more people are out of work with long-term sickness than in early 2020. Despite the global nature of the pandemic, the UK’s incapacity rate appears to have increased more rapidly than in many other countries.

Even so, the Lords committee, after questioning leading experts, concluded: “We received no convincing evidence that the main driver of the rise in benefits is deteriorating health or high NHS waiting lists.” In fact, other government data suggests that overall health in the population has remained relatively stable over the past decade. While concerns linger over stagnant life expectancy and a growing number of Britons self-reporting as disabled, the committee believes deeper structural issues are at play.

Senior researchers highlight a mounting incentive within the benefits system that could be prompting more people to list health issues as their reason for leaving the labour market. Stephen Evans, from the Learning and Work Institute, points to tightened rules and sanctions for unemployment benefit, combined with a lower weekly payment, which can be a fraction of the top-level incapacity payout.

Eduin Latimer from the Institute for Fiscal Studies (IFS) agrees, noting that shifting from unemployment to the highest-rated incapacity benefit could roughly double a single person’s income. Though these rules are not new, the economic shock of the pandemic and cost-of-living pressures may be accelerating the trend, leaving more people in a category that offers neither financial disincentives nor strong support mechanisms for returning to work.

Once labelled too ill to work, claimants typically no longer receive substantial help from job centres, and there is little requirement to search for employment. Less than one in ten people in that category receive job-hunting support, according to Evans, and a mere 1pc of those deemed inactive through ill-health are back in work after six months.

The Lords’ economic affairs committee worries that “once in receipt of [health-related benefits], there is neither the incentive nor support to find and accept a job”. This pattern undermines not only the public finances but also the long-term prospects of individuals who may recover sufficiently to work again, yet never receive the guidance or confidence to attempt re-entry to the labour market.

Forecasters project that the annual price tag of the UK’s long-term sickness bill could exceed £100 billion by 2030, piling pressure on the Prime Minister to tackle the crisis. Experts agree there is no single explanation: some health indicators are deteriorating, but evidence linking waiting lists directly to the benefits surge is slim. The design of incapacity benefits, coupled with external shocks and personal motivations, appears to have created a perfect storm.

Stephen Evans offers a stark conclusion: “We’re writing far too many people off.” Resolving Britain’s sickness puzzle will likely require more nuanced reforms to the benefits system, improved mental health support, and a robust set of back-to-work programmes that offer real hope for those grappling with genuine illness — and genuine financial pressures.

Read more:
Record surge in long-term sickness claims baffles experts amid mounting benefits costs

Rachel Reeves, the Chancellor, has signalled that economic growth must take precedence over net zero goals, creating a likely rift with Energy Secretary Ed Miliband and senior Labour figures who remain opposed to expanding the UK’s biggest airports.

Speaking at the World Economic Forum in Davos, Reeves insisted that “the answer can’t always be no” to major infrastructure projects, as she outlined Treasury support for controversial plans to build a third runway at Heathrow and extend facilities at Gatwick and Luton. She argued that, after years of sluggish growth, “when we say growth is the number one mission of this Government, we mean it. That means it trumps other things.”

Her stance risks alienating party heavyweights such as Sir Sadiq Khan, Mayor of London, and Andy Burnham, Mayor of Greater Manchester, who are firmly against airport expansion. Miliband, who has long championed climate initiatives and previously opposed a new runway at Heathrow, has indicated that net zero is “unstoppable” but is moving “not fast enough.”

Reeves acknowledged the potential tension but criticised the approach of past administrations, which she said often allowed important economic opportunities to be derailed by local resistance and policy hesitancy. “Of course there are other things that matter,” she said, “but growth has to trump other considerations.”

Having already imposed £42 billion in tax rises last October to bring the public finances “under control,” Reeves sought to reassure businesses that she would not come back “for more” at the next fiscal statement. Emphasising her instinct “to have lower taxes, less regulation,” she was careful not to make firm promises on future tax cuts but stressed: “We’re never going to have to come back again and do a budget like that.”

Reeves also highlighted the departure of Marcus Bokkerink, chairman of the Competition and Markets Authority, as evidence of the Government’s determination to align regulators with a “pro-growth” agenda. Bokkerink’s successor, Douglas Gurr, the former UK boss of Amazon, is expected to reflect this priority.

To bolster innovation and attract talent in artificial intelligence, biotechnology and other high-growth sectors, Reeves revealed that ministers are “looking again” at the UK’s immigration rules. “Britain is open for business. We are open for talent,” she said, underlining the goal of making it easier for skilled workers to secure visas.

The Chancellor’s robust endorsement of growth over net zero arrives amid heightened pressure on the Government following a surge in gilt yields and renewed concerns about Britain’s economic outlook. Reeves is holding a series of meetings with business leaders and investors in Davos to rally support and promote the UK as a competitive global destination.

While her comments could energise the business community by promising a less onerous regulatory environment and fewer tax surprises, they may also deepen divisions within Labour and prompt environmental groups to mount fresh opposition to large-scale developments such as an expanded Heathrow.

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Reeves puts growth first in clash over net zero and Heathrow expansion