Your commercial news round-up: government plans, trains, interest rates, Vodafone and Three, Guinness

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Kier Starmer has announced his “plan for change” and the Labour government has revealed that it's nationalising South Western Railway. Meanwhile, interest rates are projected to stay higher for longer, Vodafone and Three are set to merge and high demand for Guinness in the lead up to Christmas has resulted in order limits being placed.

• UK Prime Minister Keir Starmer has outlined his “plan for change” in a speech today, laying out six key milestones that the government aims to meet by 2029. These are to:
  • raise living standards in every part of the UK to deliver the highest sustained economic growth in the G7 group of rich nations;
  • build 1.5 million homes in England and fast-track planning decisions on at least 150 major infrastructure projects;
  • end hospital backlogs to meet the NHS target that 92% of patients in England wait no longer than 18 weeks for planned treatment;
  • recruit 13,000 police officers, police community support officers and special constables, and introduce a named police officer for every neighbourhood in England and Wales;
  • increase the proportion of children in England who are "ready to learn" when they start school at the age of five to 75%; and
  • put the country on track for at least 95% clean power by 2030.

​The Law Society President Richard Atkinson has commented on the increased police funding: “The Prime Minister’s focus on crime and justice is a welcome one. However, the crisis in the criminal justice system can only be dealt with holistically and it will be essential that the increased funding for more police officers is matched by investment in legal aid, the Crown Prosecution Service and courts.” He emphasised that more arrests will have a knock-on effect on the justice system, meaning that more lawyers are also needed to provide legal advice.

• This week, the government also announced that it’s nationalising South Western Railway (SWR). SWR was one of the most profitable services before covid-19 accelerated a fall in daily commuting, which meant fewer people were buying season tickets. Currently, SWR is run by First Group and Hong Kong rail operator MTR. Following the change, it’ll be brought under the Department for Transport’s operator of last report, DfT Operator Limited. The government also plans to renationalise two other commuter services, C2C and Greater Anglia. It’s anticipated that all passenger train services will be nationalised within the next three years. Transport Secretary Heidi Alexander said: “For too long, the British public have had to put up with rail services which simply don’t work. A complex system of private train operators has too often failed its users. Starting with journeys on South Western Railway, we’re switching tracks by bringing services back under public control to create a reliable rail network that puts customers first.”
   
• Meanwhile, UK interest rates are projected to stay higher for longer due to October’s budget, according to the Organisation for Economic Cooperation and Development (OECD). The think tank highlighted that, while budget measures will boost the economy, changes to tax and spending mean that the economy will grow more slowly than it had previously forecasted three months ago. The OECD expects inflation to grow by 0.9% this year, down from 1.1%, before accelerating to 1.7% in 2025 and then slowing to 1.3% in 2026.
   
• Vodafone and Three are set to merge in a £16.5 billion deal, which will create the UK’s biggest mobile network with 27 million customers. The Competition and Markets Authority (CMA) previously expressed concerns that the merger could drive up bills but concluded that the consolidation would “likely […] boost competition” and should be allowed to proceed. However, the networks need to agree to measures suggested by the CMA, which require them to invest billions in the UK’s 5G network and cap mobile tariffs and data for a least three years. Both networks have claimed the merger will create thousands of jobs. However, the union Unite has warned that the deal could cost “up to 1,600 jobs” and add an extra £300 a year to customer bills.
   
• In the build up to Christmas, there’s been an “exceptional demand” for Guinness in pubs, which has led to order limits being placed by maker Diageo. According to food and drinks industry research firm CGA, sales of Guinness have increased, despite a slight decrease in overall beer drinking between July and October. This success follows increased marketing efforts from the beverage company, which has been working with influencers and celebrities like singer Lewis Capaldi and actor Jason Momoa. In particular, the drink has been rising in popularity with women and young people.

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