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Business Group Calls for Slashed Corporation Tax to Boost Green Investment in the UK

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A leading business organization is advocating for a significant reduction in the corporation tax rate for companies involved in green technologies, proposing a cut to 10% from the current rate of 25%. The Confederation of British Industry (CBI) argues that this reduction will attract more investment in environmentally friendly sectors amid ongoing economic challenges.

In addition to the tax cut, the CBI is urging the government to implement several measures to support green investment. These include a “green innovation credit,” which would provide a 40% tax relief for companies investing in low-carbon technology research and development, and an “enhanced green super-deduction” of at least 120% for businesses constructing factories focused on electric vehicles (EVs) and battery manufacturing.

Rain Newton-Smith, the CBI’s chief executive, stated that these initiatives would position the UK as an appealing destination for investments in green technologies. “The Budget can provide a tone-setting moment in the Government’s growth mission,” she said, emphasizing that these measures would help stimulate growth while maintaining economic stability.

The CBI estimates that the proposed 10% corporation tax rate for green technology manufacturers would cost the government approximately £238 million annually. Meanwhile, the super-deduction initiative is projected to have a £389 million price tag. The organization is also advocating for a reduction in VAT on public EV charging from 20% to 5%, costing the Treasury an estimated £33 million. Furthermore, the CBI supports eliminating VAT on home improvements aimed at enhancing energy efficiency, such as double-glazing.

These proposals align with calls from the Institute for Public Policy Research (IPPR), which has urged for changes to borrowing rules. The IPPR suggests that by focusing on the UK’s net worth rather than solely its debt, the government could unlock an additional £50 billion in borrowing capacity. This funding could be invested in infrastructure, energy, and healthcare to enhance productivity.

Carsten Jung, an economist at the IPPR, remarked that the UK is trapped in a “low growth trap” due to years of underinvestment. He called for the new Labour government to prioritize long-term investment strategies.

Shadow Chancellor Rachel Reeves has indicated a willingness to revisit the government’s borrowing rules, emphasizing the importance of fostering both public and private investment in green technologies. She expressed hope that the Office for Budget Responsibility would consider the long-term effects of capital investment at the upcoming Budget announcement.

These proposals highlight the urgent need for the UK government to provide the necessary fiscal and policy support to facilitate a transition to a low-carbon economy and achieve its ambitious net-zero targets.

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Amazon MGM Takes Creative Reins of James Bond Franchise Amid Casting Buzz

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In a landmark shift for the James Bond franchise, Amazon MGM has partnered with long-time producers Michael G. Wilson and Barbara Broccoli to oversee the future of 007. While all three entities retain co-ownership of the Bond intellectual property, Amazon MGM will now lead creative decisions, marking a significant departure from its previously limited role.

The move follows Amazon’s $8.5 billion acquisition of MGM in 2021, which granted it partial ownership but little say in the franchise’s artistic direction. With Daniel Craig’s departure after 2021’s No Time to Die, speculation about the next James Bond has intensified. Jeff Bezos, Amazon’s founder and executive chairman, fueled the debate by asking his followers on social media platform X, “Who’d you pick as the next Bond?” The overwhelming response highlighted British actor Henry Cavill as a fan favorite. Known for roles in Superman, The Witcher, and Mission: Impossible – Fallout, Cavill previously auditioned for the role in 2006’s Casino Royale but lost to Daniel Craig. Director Martin Campbell praised Cavill’s audition but deemed him too young at the time. Now in his early forties, Cavill’s age could be a factor if long-term commitments are considered.

Daniel Craig acknowledged Wilson and Broccoli’s contributions, telling Variety, “My respect, admiration, and love for Barbara and Michael remain constant and undiminished.” With Wilson stepping back and Broccoli expected to reduce her involvement, Amazon MGM gains greater creative control, raising questions about the franchise’s future direction.

Fan speculation continues to swirl around Cavill, alongside other contenders like Taron Egerton, Tom Hardy, and Idris Elba. While Amazon MGM has yet to announce a timeline or reveal casting decisions, industry watchers anticipate a new era that may extend beyond traditional films, potentially including spin-offs, series, and streaming exclusives. As the studio reshapes Bond’s future, audiences worldwide eagerly await the next chapter in the iconic spy saga.

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Global Hiring Slump Marks Longest Downturn in Decades, Says Hays CEO

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The global job market is experiencing its longest downturn in over 20 years, according to Dirk Hahn, CEO of Hays, Britain’s largest listed recruitment firm. Hahn attributes the slump to ongoing macroeconomic uncertainty, which is deterring both employers and job seekers from making moves.

Hays, which employs nearly 7,000 consultants worldwide, reported weaker demand for temporary workers in early 2025, while demand for permanent roles—particularly in Europe—remains sluggish following a pre-Christmas dip. Countries such as France, the UK, Ireland, and Germany, Hays’s largest market, are feeling the pressure most acutely.

In the six months leading up to December, Hays reported a 15% drop in group net fees, falling to £496 million from £583.3 million the previous year. Pre-tax profits fell sharply by 67% to £9.1 million, compared to £27.6 million during the same period the prior year. Hays’s share price, already down 25% over the past year, dipped a further 1.8% on Thursday, closing at 71¾p and placing the company’s market value just below £1.2 billion. Despite declining profits, the company will maintain its interim dividend at 0.95p per share.

While the broader UK labor market has shown resilience with limited mass layoffs, businesses remain cautious about expanding their workforce. “Most companies have enough work to retain their current staff, but they’re not looking to increase headcount,” said James Hilton, Hays’s chief financial officer. “Many employees who received pay increases in recent years are not seeking new roles, creating a stalemate. However, over time, people will seek promotions or fresh challenges.”

Recruiters had anticipated a market recovery earlier this year, but Hahn now warns that the rebound may not materialize until 2026. In the meantime, Hays is focusing on its technology recruitment division—its most profitable segment—as it navigates the prolonged global hiring slowdown.

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UK Government Reports Lower-Than-Expected Budget Surplus in January

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The UK government reported a budget surplus of £15.4 billion in January, falling short of economists’ forecasts of £21 billion and the £19 billion predicted by the Office for Budget Responsibility (OBR). Despite January typically seeing a boost from self-assessment tax payments, the lower-than-expected figure has increased total borrowing for the financial year to £118.2 billion—over £11 billion more than the previous year.

The government’s debt-to-GDP ratio now stands at 95.3 per cent, a level last observed in the 1960s. With the OBR set to release updated forecasts on March 26, there are concerns that the government may struggle to meet its goal of reducing the debt ratio by 2029. This could lead to potential spending cuts or tax hikes in the autumn budget.

Reduced debt-servicing costs helped boost January’s surplus, dropping from £9 billion in December to £6.5 billion. However, this was partially offset by a £6 billion one-off expense related to the government’s repurchase of military housing from private firm Annington.

Darren Jones, chief secretary to the Treasury, emphasized the government’s commitment to “economic stability and meeting our non-negotiable fiscal rules.” He also noted that a comprehensive spending review—the first of its kind in 17 years—is underway to ensure that public funds are used efficiently and aligned with national priorities.

 

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