The regulator introduced the scheme in March to compensate motorists who were treated unfairly under motor finance arrangements between 2007 and 2024

International News via Reuters:

Britain’s Financial Conduct Authority said on Thursday parts of its motor finance consumer redress scheme had been suspended pending legal challenges brought by four parties.

The regulator introduced the scheme in March to compensate motorists who were treated unfairly under motor finance arrangements between 2007 and 2024. It previously estimated firms would pay around 7.5 billion pounds in compensation.

“The partial suspension enables firms to keep preparing for the scheme and progress complaints as far as possible, while avoiding work that may need to be repeated if the challenges succeed,” the FCA said in a statement.

The decision means compensation payments to consumers who may be owed money under the programme will be delayed until the legal process concludes.

The challenge is due to be heard either in December or in February next year, with a judgment expected in the following months, the FCA said.

If the scheme is upheld, and barring any appeal, the FCA said it expects payments under the scheme to begin in 2027. But if the scheme is overturned in whole or part, the regulator said it would need to decide its next steps.

A revised scheme, assuming further legal challenges, would mean compensation could be delayed until 2028 or beyond.

Reporting by Muvija M, writing by Sam Tabahriti; editing by William James

Chief Executive Alex Baldock said AI and data centres were eating up the world’s supply of silicon

International News via Reuters:

Higher prices for smartphones, laptops and other electronics are inevitable later this year due to a global memory chip shortage, the boss of Currys, Britain’s biggest consumer electricals retailer, warned on Thursday.

Chief Executive Alex Baldock said AI and data centres were eating up the world’s supply of silicon.

“Less (is) left over for the likes of mobile phones and laptops and that inevitably will cause availability challenges and some cost price inflation coming through later this year,” he told reporters after Currys published annual results.

His comments came as an EU-funded report warned that Chinese export controls, reliance on U.S. technology and structural weaknesses could leave Europe’s chip industry facing a bleak future unless it rapidly strengthens domestic supplies.

Baldock said it was too early to estimate the scale of the price rises. However, he said Currys would use its buying power as market leader to limit increases and secure supplies.

“We’ve seen this coming for some time, we’ve made sure that we’ve bought forward, so we’ve got good security of supply in computing and mobile phones until at least September.”

Currys shares were down 3.3%, trimming 2026 gains to 25.6%.

‘VERY SOLID’ TRADING

Currys said trading at the start of its new financial year, which began on May 3, had been “very solid” as it reported an 18% rise in profit for 2025/26, helped by sales growth in both its UK & Ireland and Nordics businesses.

Baldock said the soccer World Cup had spurred demand for televisions, with sales of 90-inch and over TVs trebling, home beer pumps and hot tubs. The recent heatwave caused a spike in demand for fans and air conditioning products.

Currys reported an adjusted profit before tax of £191 million ($254 million) for the year ended May 2, on revenue up 6% to £9.25 billion.

Like-for-like revenue in the UK & Ireland division rose 3%, outperforming a generally subdued retail sector. Nordics revenue increased 6% on the same basis.

Last month, Currys named Fredrik Tønnesen, the head of its Nordics business, as group CEO, succeeding Baldock.

Baldock, CEO for eight years and the architect of Currys’ turnaround, will leave on August 31 and become CEO of health and beauty retailer Boots in the autumn.

Currys said that despite continuing economic uncertainty, it was comfortable with analysts’ average forecast for adjusted pretax profit of £198 million in 2026/27.

($1 = 0.7520 pounds)

Reporting by James Davey. Editing by Kate Holton and Mark Potter

An estimated 185,000 children were separated from their mothers in Britain

International News via Reuters:

British Prime Minister Keir Starmer on Thursday apologised to women forced to give up their babies and to those separated from their mothers at birth by a system of forced adoptions that targeted unmarried women in the decades after World War Two.

An estimated 185,000 children were separated from their mothers in Britain. Starmer apologised on behalf of the state for the lifelong trauma it had caused.

“On behalf of the whole country, I say it to every single person impacted: we are deeply and profoundly sorry,” Starmer told parliament.

Between 1949 and 1976, the British state and Christian churches created a system in which young women with children outside of marriage were shamed and coerced into giving up their babies to comply with the social norms of the time.

The Church of England apologised for its role last month, acknowledging its involvement in running so-called “mother and baby homes” where unmarried women were sent, often ⁠against their will, during pregnancy or after giving birth and separated from their babies.

The state’s apology — which follows similar apologies by Ireland and Australia — comes four years after Britain’s human rights committee concluded that the government was “ultimately responsible” for the lack of protection for unmarried mothers and their babies.

Before making his apology to parliament, Starmer met a group of affected mothers and children at his Downing Street residence, telling them:

“There never was any shame for you. The shame actually is ours. The shame is on the state and all those that were responsible for this.”

Reporting by Muvija M; editing by William James

House prices rose by an annual 2.2% in June, below a 2.4% rise forecast in a Reuters poll of economists

International News via Reuters:

British annual house prices rose by less than expected in June, but softening expectations for interest rate hikes by the Bank of England are likely to improve affordability, mortgage lender Nationwide said on Wednesday.

House prices rose by an annual 2.2% in June, below a 2.4% rise forecast in a Reuters poll of economists. Prices were flat month-on-month, as expected, after a surprise 0.6% fall in May.

Mortgage costs have risen since the start of the Iran war at the end of February, tempering a strong start to 2026 for house price growth, and pushing up expectations the BoE would need to hike interest rates to curb inflation.

“It is not surprising that the market has softened a little in recent months, given the uncertainty caused by developments in the Middle East and the subsequent rise in energy prices and market interest rates,” Robert Gardner, Nationwide’s chief economist, said.

“If the energy shock continues to subside, the Bank of England may not need to raise interest rates, or at least by less than had previously been anticipated.”

The Bank of England said on Monday the number of mortgages approved by British lenders for house purchase fell by the most since December 2023 in May.

The central bank kept interest rates at 3.75% in June and investors are pricing in the first quarter-point increase in the main Bank Rate in early 2027.

“If maintained, these trends will help to restore household confidence and ease affordability constraints, paving the way for a recovery in housing market activity in the coming quarters, providing that domestic political uncertainty does not adversely impact sentiment,” Gardner added.

Prime Minister Keir Starmer, who said last week he would resign, has sought to speed up the construction of new homes, but a shortage of properties for sale is likely to keep upward pressure on prices.

Andy Burnham, Britain’s likely next prime minister to replace Starmer, on Monday pledged to oversee the biggest local authority-led social house-building programme since the years following World War Two.

Reporting by Suban Abdulla; editing by Sarah Young and Andrew Heavens

Teachers’ pay will increase by 3.5% from September, and by 3% from September 2027, representing a cumulative 17% rise since the country’s Labour government took power in 2024

International News via Reuters:

British teachers will receive pay increases that should outpace inflation over the coming two years, with the first rise coming in September, the government said on Wednesday.

Teachers’ pay will increase by 3.5% from September, and by 3% from September 2027, representing a cumulative 17% rise since the country’s Labour government took power in 2024.

• The increases are above the most recent rate of inflation which stood at 2.8% in May. Last month the Bank of England said inflation could be under the 3% mark in September

• Britain will provide £1.8 billion ($2.4 billion) to schools over two years to support pay rises, with schools expected to provide the first 1% of each pay award

• Additional £485 million to be given to colleges and other further education providers over next two years to use towards recruiting and retaining staff, and courses

• Curbs will be placed on academy trust executive pay

($1 = 0.7553 pounds)

Reporting by Suban Abdulla; editing by Andy Bruce