Your commercial news round-up: UK inflation, ULEZ, Google, plastic packaging ban

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This week, we take a look at an unexpected drop in UK inflation, Transport for London’s (TfL) vehicle seizures for ULEZ fine non-compliance, Google’s deal to use nuclear reactors for AI data centres and Wrap’s call for a ban on plastic packaging for certain fresh produce to reduce waste. Boost your commercial awareness with these weekly articles and head to our Commercial awareness hub, sponsored by Mayer Brown International LLP, for tips and tricks on demonstrating this top skill to your future employers!

• Inflation in the UK has dropped unexpectedly to 1.7% in the year to September, marking the lowest rate in three-and-a-half years. The rate is below the Bank of England's 2% target and opens the door for further interest rate cuts, with a 0.25 percentage point cut expected in November and the possibility of a second cut in December. Official figures revealed that the unexpected slowdown was primarily driven by lower airfares and petrol prices. However, chief economist at KPMG UK Yael Selfin warned that inflation is likely to rise again as household energy bills are set to increase by around 10% this month. While the inflation rate has decreased, it doesn’t mean that the prices of goods and services are falling overall; rather, they’re increasing at a slower rate.
   
• ​Bailiffs working on behalf of TfL have seized more than 1,400 vehicles from drivers who persistently ignored fines relating to London's Ultra Low Emission Zone (ULEZ). In the past year, they’ve recouped £25.6 million from individuals who refused to pay penalty charge notices. This follows Mayor Sadiq Khan’s ULEZ extension to cover all 32 London boroughs, requiring vehicles that fail to meet emissions standards to pay a daily charge of £12.50 or face fines of up to £180. According to TfL, the scheme has successfully reduced harmful air pollutants and emissions in London. However, it’s also faced opposition from some owners of non-compliant vehicles refusing to pay fines and others damaging the cameras that monitor the zone. As it stands, TfL is owed more than £370 million in unpaid ULEZ penalty charge notices since the scheme’s expansion last year, but it believes a significant amount of this debt will be recovered through law enforcement.
   
• Google has signed a deal with Kairos Power to use small nuclear reactors to power its AI data centres. The agreement aims to “accelerate the commercialisation of advanced nuclear energy” and meet the increasing energy needs of AI technologies. The companies are yet to disclose the financial details or the locations of the plants, and the plans are subject to approval from the US Nuclear Regulatory Commission and local agencies. Google's move towards nuclear power reflects the tech industry's efforts to reduce emissions in the face of increasing energy consumption. As data centres are expected to consume more than double the current energy levels by the end of the decade, nuclear power is an attractive choice due to its low carbon emissions and continuous electricity supply. However, critics argue that nuclear power isn’t without risks and produces long-lasting radioactive waste.
   
• Anti-waste charity Wrap is calling for a ban on plastic packaging for 21 fresh produce items sold in supermarkets, including tomatoes, apples, potatoes, bananas and carrots. The charity argues that a ban would be the most effective way to reduce plastic and food waste in the UK. Other countries, such as France, have already implemented similar bans on plastic packaging to address the problem. Wrap's Chief Executive Harriet Lamb acknowledged that this would be a “hard” change for British shoppers who are accustomed to buying plastic-packaged goods. Despite previous efforts to reduce plastic waste, such as UK supermarkets and food companies’ voluntary pledge to reduce plastic packaging in 2018, a progress report published last year showed that only 19.4% of fresh produce sales were loose in 2022. Meanwhile, in mainland Europe the figure was 50%. Wrap's proposed ban could eliminate 100,000 tonnes of fruit and vegetables waste and 13,000 tonnes of single-use plastic film annually.

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