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M&S CEO Warns of Rising Costs, but Vows to Protect Customers from Price Hikes

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Marks & Spencer (M&S) CEO Stuart Machin has acknowledged the company is facing significant cost pressures following recent tax changes, but emphasized that the retailer will “do everything we can” to avoid passing these increased costs onto customers.

M&S expects its tax bill to rise by £60 million next year, bringing its total liability to approximately £520 million. This increase is attributed to the Chancellor’s decision to raise employers’ National Insurance (NI) contributions by 1.2 percentage points to 15% from next April, as well as lowering the threshold at which companies begin paying the contribution.

Machin noted that M&S had anticipated some increase in costs following budget announcements but was caught off guard by what he called a “double whammy” of tax changes. In addition to the NI rise, the retailer expects another £60 million increase in labour costs due to higher minimum wage rates, a cost that had already been factored into its planning.

Despite these increases, Machin reiterated that M&S is committed to keeping prices stable, saying, “We’re going to work incredibly hard to mitigate costs elsewhere and avoid raising prices.” He pointed to the company’s “good track record” of finding savings and efficiency improvements as key to managing rising expenses without burdening customers.

The warning from M&S comes amid broader concerns within the retail sector about escalating costs. Analysts suggest that the National Insurance changes alone could add between £550 million and £600 million to the costs of UK grocers. Primark’s parent company has also indicated it may implement measures, such as introducing self-checkouts, to reduce its labour costs in response to similar pressures.

The Budget has sparked discontent across the business community, with a recent survey by the Institute of Directors revealing that two-thirds of business leaders feel negatively about the new policies. Additionally, many of these leaders believe that Chancellor Rachel Reeves’s measures fail to support long-term economic growth.

However, Machin’s cautious outlook coincided with a positive financial performance for M&S. The company reported a 17% increase in profit before tax and adjusting items to £408 million for the six months ending 30 September, surpassing analysts’ expectations of £360 million. The retailer’s shares surged by as much as 7.4% on Wednesday following the announcement.

The strong results highlight the success of Machin’s turnaround strategy for M&S, with both the food and clothing divisions showing growth. Looking ahead to the Christmas season, Machin expressed optimism, citing research indicating that customers are planning to spend more this year than they did in 2023.

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BAE Systems to Recruit Record 2,400 Apprentices and Graduates in 2024

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BAE Systems, the UK’s largest defense company, has announced plans to recruit a record 2,400 apprentices, undergraduates, and graduates next year, marking a major step in its commitment to workforce development. This new intake will bring the total number of trainees across the FTSE 100 company to 6,500, making up around 15% of its UK workforce.

Known for building the UK’s nuclear submarines and fighter jets, BAE Systems currently employs 100,000 people worldwide. The company has increased its investment in skills development each year since the Covid-19 pandemic, with next year’s £230 million spend on education initiatives pushing its total investment in training to over £1 billion since 2020.

The funding will support a range of programs, including apprenticeships, graduate schemes, and upskilling opportunities for current staff. Additionally, BAE will continue backing outreach efforts, such as its third skills academy, which recently opened in Glasgow.

Charles Woodburn, CEO of BAE Systems, emphasized the importance of investing in talent to maintain the company’s competitive edge. “With thousands of roles open across the country and our exciting high-technology programs, there has never been a better time to embark on a career with us,” he said.

The company’s recruitment drive has garnered praise from government officials, with Defense Secretary John Healey calling BAE’s early careers initiatives crucial for strengthening national security and nurturing future industrial leaders. “This investment is a vote of confidence in the UK as a hub for highly skilled jobs and cutting-edge employment,” Healey remarked.

Diversity continues to be a priority for BAE Systems. Nearly a third of this year’s new apprentices are women, and one in three new graduates comes from an ethnic minority background. Francesca Di Mascio, 27, an electrical engineering apprentice at BAE, shared her experience: “This apprenticeship is a great opportunity to earn while you learn. For the first time, I feel truly valued in a business.”

BAE’s recruitment plans reflect a strong commitment to building a skilled and diverse workforce capable of meeting the evolving demands of the UK’s defense sector and beyond. The company’s investment in training aims to ensure that the next generation of workers is ready to tackle the challenges posed by high-tech defense and engineering fields.

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Young Professionals Leaving UK for Southern Europe, Revolut Co-Founder Warns

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Young professionals are increasingly choosing to leave the UK for sunnier climates and more favorable tax regimes in Southern Europe, according to Vlad Yatsenko, the billionaire co-founder of digital banking giant Revolut. This trend, he warns, could undermine Britain’s position as a global hub for talent, particularly in the competitive fintech sector.

Yatsenko, who co-founded Revolut in 2015, noted that many of the company’s employees are now using remote work options to relocate abroad. “The UK competes with Southern Europe now,” he said, adding that younger professionals who once flocked to London for career opportunities are now drawn to countries like Portugal and Italy, attracted by lower taxes, better financial incentives, and a desirable lifestyle.

Portugal, in particular, has become a hotspot for start-ups, with tax breaks designed to attract foreign talent and retain its own young workforce. Italy, meanwhile, has seen a surge in early-stage tech investments, with funding reaching $2 billion (£1.8 billion) in 2023. These developments have made Southern Europe an increasingly attractive alternative to the UK.

Yatsenko, originally from Ukraine and now based in London, urged the UK government to take proactive steps to retain talent. He pointed out that rival countries are creating environments that make it easier for professionals to thrive, warning that the UK could lose its competitive edge if it doesn’t respond to these challenges.

Despite his concerns, Yatsenko acknowledged that the UK remains an important market for fintech businesses. Revolut, headquartered in Canary Wharf, employs over 10,000 people globally and allows staff to work remotely or in a hybrid capacity, making it easier for employees to consider relocating without sacrificing their careers.

The exodus of talent is not limited to Revolut but reflects broader trends in the UK’s tech and finance sectors. Start-up founders have expressed concern that policy changes, such as the recent increase in capital gains tax, could discourage entrepreneurship and exacerbate the talent drain.

Revolut itself has been thriving, with plans to expand its offerings by introducing fully digital mortgages. The company’s growth, including a recent $45 billion valuation and over 50 million customers worldwide, underscores its success in adapting to the changing work environment.

However, as more professionals seek out opportunities abroad, the UK faces an urgent need to reassess its policies. Tax incentives in Portugal and Italy, along with their attractive lifestyles, are drawing young professionals away from the UK. The government’s ability to create a competitive environment will be key in retaining the talent needed to maintain the country’s status as a leader in innovation.

Yatsenko’s comments highlight the broader challenges facing the UK’s future as a talent hub, emphasizing the need for the government to act to ensure the UK remains a top destination for professionals and entrepreneurs.

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Sexism Row Erupts After Construction Awards Event Features Female Performers in Skimpy Outfits

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A construction industry awards ceremony has sparked controversy and widespread criticism following the appearance of female performers dressed in skin-tight, builder-themed outfits, leading to calls for change within the sector.

The event, organized by On The Tools, a prominent online community for builders, came under fire after photos circulated showing women dressed in tight-fitting costumes inspired by personal protective equipment (PPE) and performing on stilts. The display, intended to entertain the audience, quickly became the subject of heated debate.

Faye Allen, a diversity campaigner and former director at construction company Arcadis, expressed her frustration with the event. She was contacted by “horrified” attendees, including one woman who felt uncomfortable when she “literally walked into a crotch.” Allen, who has worked in the industry for 30 years, voiced her concerns about the ongoing struggles women face in construction, particularly regarding proper-fitting PPE. “To have people put on hi-vis colours and dress like that is frustrating,” she said. “We’ve been fighting really hard for PPE that fits women and other diverse groups. It has to change.”

Harriet Waley-Cohen, another advocate for diversity, took to LinkedIn to condemn the event, calling it a “regressive, sexist” display. She argued that those involved in organizing the event “decided that it’s OK to sexualise and devalue women in the industry.” Waley-Cohen pointed out that women in construction already face significant challenges, including shorter careers than their male counterparts. “What happened at the awards absolutely reinforces all of this,” she said, noting that incidents like this contribute to the unsafe and sexualized environment many women face in the field.

The controversy deepened after a photo from the event circulated on social media, showing a sign featuring a loading bar at 69% progress, with the caption “Getting drunk, please wait…” This further fueled outrage, with many critics arguing that it perpetuated toxic behavior within the industry. Allen remarked, “The industry will never be inclusive if this messaging carries on. Women don’t want tacky events or people getting drunk for the sake of it; we just want respect and to be able to do our jobs.”

In response to the backlash, Lee Wilcox, the chief executive of On The Tools, issued a public apology on LinkedIn. He acknowledged that the company had used an external contractor to plan the event but had failed to review the performers’ outfits beforehand. “This was a mess-up, and we’re sorry,” Wilcox wrote, adding that the company’s goal was always to empower women. He personally reached out to both Allen and Waley-Cohen to apologize for the incident.

The fallout from the awards ceremony comes at a time when research reveals the ongoing struggles women face in construction. According to Allen’s forthcoming book, Building Women: How Everyone in Construction Can Win, one in four women in the industry were sexually assaulted at work in 2023, equating to around 74,000 women in British construction.

The incident has highlighted the need for further reform in the construction sector, with many calling for a more inclusive and respectful culture for women in the industry.

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