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UK Edition
13th July 2026
 
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THE HOT STORY

Disciplinary investigations costing UK £28.5bn

Poorly managed disciplinary investigations are causing widespread burnout, sickness absence and staff departures, costing the UK economy an estimated £28.5bn annually. The Faculty of Public Health says formal proceedings are often prioritised over employee wellbeing, creating harm for accused workers, colleagues, managers and organisations. President Prof Tracy Daszkiewicz warned that the effects include “damage to individual wellbeing, loss of trust in systems, avoidable sickness absence and the undermining of staff morale and retention”. The faculty recommends treating investigations as a last resort and resolving concerns informally where possible. An approach used by Aneurin Bevan University Health Board reduced investigations by 71%, prevented more than 3,000 sick days and saved at least £700,000 each year. Acas and the TUC also support earlier, less adversarial intervention and stronger union involvement.
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WORKFORCE

MPs call for benefits boost for older workers

MPs have urged the Government to increase benefits for older workers as the state pension age rises from 66 to 67. The Work and Pensions Committee has warned that many retirees could face financial hardship and suggested raising Universal Credit for those approaching pension age. However, it is noted that this could cost the Treasury £600m. Estimates from the Office for Budget Responsibility show that Britain's welfare spending is forecast to rise to £406.9bn by 2030/31 from £332.9bn in 2025/26.

Workers halt pension payments

Research from Moneybox reveals that 13% of Britons have stopped contributing to their pensions due to the cost-of-living crisis. An additional 4% plan to halt payments within six months, while 3% expect to do so later. The rising costs of essentials are forcing households to cut expenses, with pension contributions often being the first to go. Workers who pause their payments miss out on employer contributions and tax relief. Moneybox highlighted that a 30-year-old woman could lose £30,000 from her pension pot if she takes a two-year break from contributions.

Construction sector faces worker shortage

The National Audit Office (NAO) reports that the UK construction industry will require an additional 750,000 workers by 2030 to meet government targets. Economic challenges are hindering employers' confidence in hiring staff and apprentices. The NAO highlights the need for stronger employer involvement to achieve the goal of building 1.5m homes and upgrading infrastructure. Gareth Davies, NAO boss, said: "Success will depend on employers having confidence and capability to offer apprenticeships and jobs." The government stated that house-building will increase as reforms take effect.

Reform UK’s net zero stance threatens jobs

Reform UK's opposition to net zero could jeopardise £44bn in private investment and 20,000 jobs in the Humber region, The i Paper reports. The area, a major industrial hub, faces challenges from high energy costs and emissions targets. The Humber Energy Board believes decarbonisation could save jobs and attract new investment. However, Reform leaders, including Richard Tice, advocate for scrapping net zero policies. Local mayors Luke Campbell and Dame Andrea Jenkyns struggle to balance national policy with local job support, leading to uncertainty among business leaders about future investments.

Asda security cuts spark safety concerns

More than 320 security guards working at Asda face redundancy after outsourcing firm Mitie launched a consultation to reduce security hours across around 100 stores. The proposals have sparked criticism from the GMB union, which warned the cuts could leave staff and customers more vulnerable at a time when shoplifting and violence against retail workers remain at record levels. The union is demanding the consultation be suspended until detailed risk assessments and safety measures are shared, questioning why security roles transferred to Mitie only three months ago are already under threat. Mitie said it is introducing a more intelligence-led security model that will deploy guards where they are most needed. The plans come as debt-laden Asda continues wider cost-cutting efforts while the retail sector grapples with rising crime and abuse.
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STRATEGY

BoE maintains Leeds expansion goal

The Bank of England still plans to employ 500 staff in Leeds by the end of 2027, although its latest projections suggest only about 300 will be based there by the end of 2026. The expansion relies on voluntary relocations and local recruitment, with limited staff interest despite relocation support of up to £8,000. Executive directors have now been told to allocate 50% of new appointments to Leeds. Governor Andrew Bailey said the regional hub would help the Bank “represent the public, build stronger links with the local business community” and reach more talented workers. The Bank is also seeking a permanent Leeds base, expanding the range of functions conducted there and strengthening operational resilience. The move forms part of a broader transformation involving lower overall headcount, refurbishment of Threadneedle Street and reforms following Ben Bernanke’s review of forecasting.
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WORKPLACE

New bill aims for maximum workplace temperature

Hannah Spencer, a Green MP, is introducing a bill to establish maximum workplace temperatures in the UK amid rising heatwaves. The proposed legislation aims to create an independent body to recommend safe temperature limits. Unions, including Unison and the Trade Union Congress, advocate for a maximum of 30°C, or 27°C for strenuous work. Spencer highlighted the "unfair" conditions faced by workers, stating: "The unsafe temperatures we're seeing now should be a huge wake-up call." The bill is expected to gain cross-party support, following a recommendation from the Climate Change Committee for temperature regulations.
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CORPORATE GOVERNANCE

Dame Jayne-Anne Gadhia to be named chair of FRC

Dame Jayne-Anne Gadhia is set to be named the next chair of the Financial Reporting Council (FRC), according to Sky News. The former Virgin Money boss is understood to be the preferred choice to replace Sir Jan du Plessis with the appointment said to be announced today, with a pre-appointment hearing on Tuesday lined up with MPs on Tuesday. Sky’s Mark Kleinman contends that one of Dame Jayne-Anne’s priorities will be retaining CEO Richard Moriarty, who may be seeking new challenges after the Government decided not to proceed with plans to establish ARGA - a new statutory audit regulator.

Nationwide member fights for democracy

James Sherwin-Smith, a Nationwide member, has urged Andy Burnham to reform the Building Societies Act of 1986 to enhance member democracy. In an open letter, he highlighted that current governance practices are outdated and do not meet modern expectations. Sherwin-Smith, the first member-nominated candidate in over 20 years, has raised concerns about the election process, particularly the "quick vote" system. He commented: "No board should be able to exercise disproportionate influence over who ultimately joins it." The letter is timed before Nationwide's annual meeting, where his campaign will be discussed.

Burberry faces shareholder vote over executive pay

Burberry faces a shareholder backlash at its annual meeting after proxy adviser ISS urged investors to oppose a new executive pay plan for chief executive Joshua Schulman. The proposal could see his maximum payout rise to £12.2m if performance targets and share price goals are met. ISS argued the package offers insufficient downside risk despite Burberry's justification that pay should match global luxury rivals. Burberry shares have fallen 15% this year, although they remain above levels seen before Schulman joined the business.
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TECHNOLOGY

AI tutors 'make more work' for teachers

MPs have heard that AI tutoring tools can create more work for teachers. Referring to AI tutoring tools already being used in the United States, Professor Neil Selwyn, of Monash University in Australia, told the Commons Education Select Committee that “teachers are having to do a huge amount of behind-the-scenes work to keep the technology working . . . It’s quite clunky, the maintenance and repair work to keep the technology going can’t be overestimated.” He said this has led to teachers becoming “bogged down” and investing “a lot of time filling in the gaps about the student that the technology doesn’t know,” adding “It’s certainly putting a strain on teachers, I think, and it’s not making for less work, but possibly making for more work for teachers.”

 
Tes
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ECONOMY

UK retail footfall falls as June heatwave keeps shoppers away

The number of visits to UK shops fell 3.4% year-on-year in June as record temperatures discouraged shoppers, with high streets suffering the steepest decline while retail parks and shopping centres proved more resilient, according to data from the British Retail Consortium (BRC). High-street footfall dropped 6.2% in the five weeks to 5 July, compared with declines of 2.5% at shopping centres and 0.3% at retail parks. The figures come after England recorded its warmest June on record, with the BRC also warning that higher taxes and regulatory costs are making it harder for retailers to invest, create jobs and grow, as it calls for reforms to business rates and energy costs.
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INTERNATIONAL

Volkswagen labour leaders vow to fight plans for large-scale job cuts

Volkswagen's labour leaders have vowed to fight plans for large-scale job cuts, as Europe's largest automaker considers a wide-ranging overhaul that sources say could cost around 100,000 jobs. “Us workers didn’t cause this crisis,” Daniela Cavallo, head of VW’s works council, said at a protest at the German company’s headquarters in Wolfsburg. “Management must do its homework, politicians as well, while we’ve already stood ready to do our part.” Reuters reports that Volkswagen is under unprecedented pressure to restructure ‌its business model as it battles with high costs and excess capacity at home. "The global situation has continued to deteriorate over the past twelve months," Volkswagen CEO Oliver Blume said. "That is why we are ​acting now."

Costco's high-pay strategy creates millionaire frontline workers

US retail giant Costco's long-standing policy of paying above-average wages and offering generous benefits has helped create a highly experienced workforce, with the retailer saying "many thousands" of its US hourly employees now have more than $1m in their 401(k) retirement accounts. The strategy is designed to reduce staff turnover, improve customer service and lower long-term recruitment and training costs. The approach is exemplified by Tony Barzar, a cashier with almost 40 years at Costco who earns $32.90 an hour and has accumulated more than $1m in retirement savings. Costco said its annual employee turnover after one year is around 7%, well below the retail industry average, as it continues to invest in higher pay, enhanced healthcare, larger bonuses and additional leave to retain experienced staff.
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OTHER

Squirrel causes chaos in Meta office

A squirrel caused a stir at Meta's Bangkok office, creating chaos for about 20 minutes after being delivered in a package. The reason for the squirrel's delivery remains unclear. New York Times journalist Mike Isaac tweeted that the squirrel scratched a janitor who was attempting to capture it, leading to the janitor receiving first aid. Employees reportedly had a "field day" with the incident, with one creating an AI-generated video on squirrel-related office best practices. The squirrel was eventually caught, but its fate is still unknown. Meta has not commented on the event.
 
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