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Bank of England names first UK fintech cohort for Scale-Up unit

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Firms include neobank unicorn Zopa and Allica Bank for the first cohort of its new Scale-Up unit designed to accelerate fintech growth

Chancellor Rachel Reeves wants to promote the UK's fintech sector

Chancellor Rachel Reeves wants to promote the UK’s fintech sector(Image: Dan Kitwood/Getty Images)

The Bank of England has unveiled the initial selection of UK fintech innovators set to fall under the supervision of its newly established ‘Scale-Up’ regulatory unit.

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Among those admitted to the inaugural group are small business lenders OakNorth and Allica Bank – the latter recognised by Deloitte as the fastest-growing fintech in history. Both have bases in Manchester and London.

Joining them are neobank unicorn Zopa , which last year launched a base in Manchester, banking-as-a-service platform Clearbank, and Monument Bank, which caters to the mass-affluent market and has been the subject of speculation regarding a potential US stock market flotation.

Completing the first intake is Nottingham Building Society, an outspoken opponent of the government’s cash Isa overhaul, which described the Budget’s reduction of the allowance to £12,000 as “deeply disappointing”.

The Scale-Up unit has been championed by the Treasury as a means to “supercharge” the expansion of cutting-edge fintech companies and represents a collaborative initiative between the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), as reported by City AM.

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The initiative was initially previewed at Rachel Reeves’ Financial Services Growth and Competitiveness Summit, where the Chancellor sought to introduce measures bolstering the fintech industry.

Richard Davies, chief executive of Allica Bank, said: “Done well, the Scale-Up Unit can support the government’s objective to make the UK the location of choice for financial services firms to invest, innovate and grow.”

ClearBank’s chief executive Mark Fairless said: “This new Unit will help ClearBank to accelerate progress on critical initiatives that support our clients and the wider financial services sector in the UK.”

Regulation has continued to be a major concern for Britain’s innovators, with the fintech trade body Innovate Finance criticising the banking watchdog, the PRA, last year over “logic defying” rules.

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A report from the organisation claimed the Prudential Regulation Authority’s (PRA) “excessive” requirements have created an “uneven playing field for UK challenger banks, placing heavy burdens on them.”

Reeves has been cultivating relationships with leading fintech companies over the past year in an effort to encourage fintech flotations. Senior figures from ClearBank, Atom, Revolut and Zilch met with the Chancellor last July to push for tax breaks and cautioned the government that it could lose them to international competitors.

Recent data from Innovate Finance revealed the UK strengthened its position as Europe’s fintech leader over the past year but faced mounting pressure from rapidly expanding rivals increasing their clout.

The UK secured $3.6bn (£2.7bn) in investment last year, drawing in more than the following five European nations combined but only narrowly surpassing India at $3.4bn.

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A spike in investment during the second half of 2025 enabled UK fintech to retain its runner-up position for overall investment.

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Where Parents and Teens Can Actually Agree on What to Wear

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Shop price inflation remained subdued in February, confounding forecasts of a dramatic rise, as heavy discounting at fashion and non-food retailers helped keep prices in check.

Finding common ground in fashion between parents and teenagers can feel like navigating a minefield. Teens are exploring their identities, often pushing boundaries, while parents strive to instill values of appropriateness, budget consciousness, and style that lasts beyond a single season.

Despite these differing priorities, there are spaces where both generations can meet in the middle—where style, practicality, and personality converge. The key is understanding the motivations behind clothing choices and creating opportunities for collaboration rather than conflict.

Understanding the Teen Fashion Mindset

Teen fashion is as much about self-expression as it is about trends. Adolescents are experimenting with colors, textures, and silhouettes to communicate identity, social belonging, and mood. Peer influence is particularly strong; clothing choices often reflect what friends and influencers deem stylish. While this can lead to clashes with parental sensibilities, it also opens opportunities for guidance rather than outright restriction.

Parents, meanwhile, can benefit from recognizing that fashion for teens is not superficial. Wearing certain brands or adopting particular styles is part of a social language. Approaching wardrobe decisions with curiosity rather than judgment allows parents to guide teens toward quality choices that align with both personal style and practicality.

Practical Strategies for Bridging the Style Gap

Collaboration is the most effective strategy when navigating fashion disagreements. One approach is to create a shared “style mission,” where both parents and teens articulate what they value in clothing. Parents may prioritize durability, versatility, or modesty, while teens may emphasize individuality, trendiness, or comfort. By identifying overlapping priorities, both parties can focus on pieces that satisfy multiple criteria.

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Shopping together can also foster compromise. When both generations engage in selecting clothes, it becomes an educational experience. Parents can introduce teens to classic staples that form the backbone of a versatile wardrobe, while teens can demonstrate how to modernize these pieces with accessories, layering, or creative styling. This method not only reduces conflict but also builds essential decision-making and budgeting skills in adolescents.

The Role of Brands and Retailers

Brands play a critical role in facilitating this middle ground. Retailers offering a wide range of styles, quality, and price points can appeal to both parents and teens. Stores that emphasize clean designs, versatile collections, and trend-conscious lines help families discover pieces that satisfy both parties.

One example is Zara https://traffordcentre.co.uk/shop/zara, known for offering contemporary, well-made clothing at accessible price points. Zara’s collections often feature neutral staples, seasonal statement pieces, and items that adapt easily to different styles. This versatility allows parents to feel confident in the durability and appropriateness of a purchase, while teens can enjoy the fashionable edge that makes them feel socially aligned and self-expressive.

Embracing Comfort and Sustainability

Another area of convergence is comfort. Teenagers value clothing that allows them to move freely, engage in sports, or simply relax without restriction. Parents, increasingly aware of long-term health and well-being, appreciate garments that provide comfort and support proper posture. Prioritizing comfort does not mean sacrificing style; well-designed clothing can satisfy both criteria.

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Sustainability is emerging as a shared concern across generations. Many retailers, including Zara, are incorporating sustainable materials and responsible production practices. This focus resonates with parents who prioritize ethical consumption and teens who often view eco-conscious choices as part of a progressive identity. Selecting items that align with sustainability values becomes a unifying factor, making the shopping experience collaborative rather than combative.

Encouraging Personal Expression Within Boundaries

Teens thrive when they have a sense of ownership over their wardrobe choices. Parents can encourage individuality by offering structured flexibility—clear boundaries on appropriateness, cost, or functionality combined with freedom to personalize. This method respects the teen’s developing autonomy while ensuring that purchases are practical and sustainable.

A practical technique is to allow teens to create outfit combinations from a core wardrobe of approved basics. By introducing a range of mix-and-match staples, such as neutral jeans, classic jackets, and versatile tops, parents provide a framework for style that meets household expectations. Teens can then express creativity through layering, accessories, or selective trend-driven pieces, achieving balance and reducing conflict over every shopping trip.

Building Confidence Through Fashion

Clothing is more than fabric; it shapes how individuals are perceived and how they perceive themselves. For teens, mastering personal style boosts confidence, social competence, and self-awareness. Parents benefit when their children feel secure and competent in their choices, fostering positive parent-child interactions around shared activities like shopping, outfit planning, and event preparation.

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By approaching fashion as a collaborative journey rather than a series of disagreements, families reinforce mutual respect. Open communication, shared experiences, and thoughtful selection of retailers help both generations develop an appreciation for aesthetics, quality, and social nuance. Parents learn about current trends and youth culture, while teens gain insights into longevity, budgeting, and versatile wardrobe building.

Making Fashion a Shared Experience

Ultimately, successful intergenerational fashion collaboration relies on empathy, communication, and strategic compromise. Selecting clothing together, exploring versatile brands, and emphasizing comfort, sustainability, and personal expression ensure that both parents and teens feel heard and respected. Fashion becomes a tool for connection rather than conflict.

In practice, families might designate specific shopping trips as joint excursions, using stores like Zara as destinations where everyone can find items that meet shared criteria. Teens can explore trends without overstepping parental comfort zones, and parents can guide choices toward quality, sustainability, and practicality. Over time, these shared experiences build a foundation of trust, understanding, and fun.

Conclusion

Fashion does not have to be a battleground between parents and teens. By understanding each generation’s motivations, embracing flexibility, and prioritizing collaborative shopping experiences, families can cultivate a wardrobe that satisfies style, comfort, and practicality. Retailers like Zara offer the versatility needed to bridge generational divides, providing pieces that both parents and teens can appreciate.

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Through open dialogue, structured choice, and mutual respect, fashion becomes more than clothing—it evolves into a shared journey of self-expression, confidence, and connection. Parents and teens may not always agree on every detail, but by focusing on common ground, they can create wardrobes and memories that reflect both individuality and harmony. In the end, fashion for everyone is not only possible but a rewarding way to strengthen family bonds.

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Welsh first minister tells public to stop watching Netflix and support pubs

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Welsh first minister tells public to stop watching Netflix and support pubs

The Welsh first minister has sparked controversy after urging the public to stop watching Netflix and instead go to the pub in order to support struggling hospitality businesses.

Speaking in the Senedd, Eluned Morgan said consumers needed to “get out of their homes” and use pubs, restaurants and cafés if they wanted them to survive, following the Welsh Government’s announcement of a one-year business rates discount for the sector.

Her comments came after ministers confirmed a 15 per cent business rate discount for pubs, restaurants, cafés and live music venues in Wales for the 2026–27 financial year. The measure is intended to help around 4,400 businesses facing rising costs, but the scheme will last for just one year.

England, by contrast, has introduced a longer package of support. Under plans announced by the UK Government, pubs and live music venues in England will receive a 15 per cent discount from April, with business rates frozen for a further two years.

During a heated exchange in the Senedd, Plaid Cymru leader Rhun ap Iorwerth warned that the hospitality sector in Wales was facing an “existential crisis” and called for urgent reform of the business rates system.

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In response, Morgan said government support alone could not save the sector.

“If people want to see those businesses succeed, they need to use them,” she said. “They need to stop buying things online. They need to get out of their homes and stop watching Netflix.

“They need to stop buying that bottle of wine at home and go out to the pub. You can’t expect the state to step in and do the work that the public should be doing.”

Opposition parties reacted angrily, accusing the first minister of blaming the public rather than addressing structural pressures on hospitality.

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Ap Iorwerth later said Morgan was “completely out of touch” and had a habit of “blaming others instead of taking responsibility for the government’s own failures”.

Welsh Conservative leader Darren Millar said the first minister had previously blamed Brexit and Donald Trump for economic difficulties in Wales and was now “blaming Welsh citizens and Netflix”.

Welsh Liberal Democrat leader Jane Dodds added: “People are not willingly choosing Netflix over the high street. They are being forced indoors because prices keep rising and wages are not.”

The Welsh Government defended the one-year duration of the scheme, saying decisions for 2027-28 and beyond would be for the next Senedd, with Welsh elections due in three months.

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Finance secretary Mark Drakeford said ministers recognised hospitality and music venues were “facing real pressures, from rising costs to changing consumer habits”, and argued the rate cut would provide meaningful short-term relief.

Trade body UKHospitality Cymru welcomed the inclusion of restaurants and cafés but said it was “notable” that the relief only runs for a single year. It also warned that hotels, which face some of the largest increases, have been excluded entirely.

The Campaign for Real Ale (CAMRA) in Wales also welcomed the discount but cautioned that rising property valuations could still force pubs to close.

Business rates in Wales are set by the Welsh Government and collected by local authorities, with some firms facing sharp increases following revaluations.

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Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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Automakers in China roll-out longer-term financing plans to spur demand

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Automakers in China roll-out longer-term financing plans to spur demand


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Holiday park wifi specialist Infinium planning UK expansion after ‘seven figure’ River Capital investment

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Lancashire business plans national rollout of tech that is ‘fundamental evolution’ of its work

River Capital has backed Infinium Group in Preston.  Picture shows L-R:  Andrew Peters, Ben Gregory (River Capital) Peter Mills, Mark Borzomato (River Capital) & Mark Evans.   Picture:  Jon Super/UNP

River Capital has backed Infinium Group in Preston. Picture shows L-R: Andrew Peters, Ben Gregory (River Capital) Peter Mills, Mark Borzomato (River Capital) & Mark Evans(Image: Jon Super/UNP)

A wifi and IT provider to holiday parks and leisure venues has won a “seven-figure” investment to continue its UK expansion. Preston-based Infinium Group will use the backing from North West fund manager River Capital to scale up its EDGE platform and to “accelerate nationwide growth”.

Infinium was founded in 2002 by CEO Peter Miles and CTO Dan Massey and today designs, installs and operates wifi networks for holiday home and lodge parks. The River Capital investment will support the national rollout of Infinium EDGE, which Infinium says is a “fundamental evolution” of its business model.

EDGE lets park operators take wifi services to individual lodges and cabins. It says the systems allows small and mid–size operators to offer “robust, future proof connectivity to access enterprise grade wifi infrastructure without the burden of capital intensive installations”.

The Lancashire firm says there is a “substantial opportunity” for its to win new business at more of the UK’s 5,000 holiday and lodge parks, which encompass 438,000 pitches.

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River Capital’s investment is a combined package of equity funding from River Capital’s North West Equity Fund, alongside mezzanine debt from the new River Capital Mezzanine Fund. The investment will see Andrew Peters, former chief executive of Telefonica UK, join the board as chair, while leisure sector finance specialist Mark Evans will also join the board.

Mark Borzomato, CEO of River Capital, said: “Infinium is exactly the type of established, sector-specialist business we seek to support. Under the direction of Peter and Dan, the company has built a solid reputation over more than two decades, demonstrating deep technical expertise and strong customer relationships in a niche market – customer feedback as part of our commercial due diligence was exceptional. The EDGE solution addresses a clear market opportunity and positions Infinium to capture growth across a broader segment of holiday park operators. We are excited and look forward to working with Peter, Dan and the team.”

John Gray, investment director for the River Capital Mezzanine Fund, said: “This investment demonstrates the complementary nature of River Capital’s debt and equity suite of products. We view the core business as a solid foundation, with the EDGE opportunity representing a highly attractive growth driver—an outlook supported by due diligence confirming strong market appetite and a highly capable management team.”

Paul Billingham and Greg Rawsthorne of Knight Corporate Finance advised Infinium management on the transaction and also provided commercial due diligence support. Mike Murphy (Weightmans) provided legal support for River Capital Private Equity and Denise Walker and Joanna Sproson (Glenville Walker) for River Capital Mezzanine.

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Financial and tax due diligence was led by Rowan Porter and Michael Spencer (MHA), and management due diligence was led by Paul Quinn (Quinn Partnership). Legal support for management was provided by Richard Robertson of Napthens.

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Earnings call transcript: Borouge Q4 2025 sees strong revenue growth

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Earnings call transcript: Borouge Q4 2025 sees strong revenue growth

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At Close of Business podcast February 4 2026

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At Close of Business podcast February 4 2026

Isabel Vieira and Elisha Newell discuss Business News’ recent corporate finance feature.

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Massive Parkside scheme approved for 1.6m sq ft of logistics and manufacturing space in ‘manufacturing heartland’

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Second phase of former colliery site transformation praised as ‘truly transformational’

Aerial view showing how the whole Parkside development will look once completed, including the second phase on the left

Aerial view showing how the whole Parkside development will look once completed, including the second phase on the left(Image: Local Democracy Reporting Service)

Councillors have approved the second and larger phase of the regeneration of Parkside Colliery in Newton-le-Willows.

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Parkside Regeneration, the joint venture tasked with delivering the redevelopment of Parkside Colliery, has welcomed approval of the company’s hybrid application for the scheme’s larger second phase.

At its meeting on Tuesday night, St Helens Council’s planning committee resolved to grant detailed consent for enabling and infrastructure works, with building designs to be dealt with under a future reserved matters application. A further 1.6m square feet of logistics and manufacturing space can now be developed – subject to the discharge of a Section 106 agreement and planning conditions – alongside more than 800,000 square feet already consented for the scheme’s first phase.

“This has been a complex process and I’m grateful to all the parties who have helped shape a compelling application, particularly the St Helens Borough Council planning service, whose guidance and support has been invaluable,” explained John Downes, executive chair of developer Langtree, one half of the project joint venture with St Helens Council.

“We’re on site with the clearance works for the project’s first phase and this consent will give added momentum to our work on local supply chain engagement, labour recruitment and schools engagement. It’s particularly pleasing to see our extensive investment in public open space and landscaped trails given detailed consent.

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“Phase two will give the project a different complexion, with the addition of manufacturing space. This will boost the variety, type and earnings potential of jobs on site and enable occupiers to tap into another facet of the area’s skills-base. St Helens, and Newton-le-Willows in particular, is a manufacturing heartland and the perfect place to bring advanced manufacturing and engineering jobs.”

The scheme’s second phase is expected to add around £70 million per annum to the borough’s economic output.

Cllr Richard McCauley, cabinet member for regeneration at St Helens Council, said: “The Parkside Regeneration is a truly transformational development that has been decades in the making and it will generate lasting opportunities for the people of Newton-le-Willows, St Helens borough, and for the wider Liverpool City Region as its forms a core part of the LCR Freeport.

“The phase two development shows a continued commitment to social value, ensuring residents and businesses in our borough will directly benefit for generations to come, alongside the inclusion of measures to protect local communities and the environment. Approval of the Parkside Regeneration phase two application is a major step forward in our support for a strong, thriving, inclusive and well-connected local economy, as outlined in our borough strategy and inclusive growth strategy, and I am excited to see the development progress.”

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Parkside sits within Liverpool City Region Freeport, which offers occupiers a wide range of tax benefits, of particular attraction to manufacturing companies with capital-intensive fit-out requirements. The new Parkside Link Road takes vehicles efficiently onto the national motorway network and to the port of Liverpool via Junction 22 of the M6 and via the M62.

The first of a planned series of ‘meet the buyer’ events was held in the autumn for local sub-contractors keen to supply the site as building work ramps up. More than 80 interview sessions were conducted at the event, which was held at the Brewdog Stadium, for work relating to the forthcoming groundworks for phase one development at Parkside. The successful bidder is expected to be announced imminently.

Almost 200 firms are registered with the project, with support provided to applicants with regards to main contractors’ pre-qualification requirements. Any business still wishing to register can do so via https://parksidem6.com/local-suppliers/

Spawforths is the planning consultant for the scheme, with Curtins advising on highways, Chroma as project managers, Fletcher Rae the architects and TPM Landscape the landscape architects. Cundall are the structural and civil engineers.

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New water regulator plans for Wales

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A new regulator to replace Ofwat in Wales would require UK Government approval

(Image: PA)

The Welsh Government has published major long-term plans for stronger regulation of the water industry. The plans would mean setting up a new dedicated Welsh economic regulator for water in Wales, which would replace Ofwat.

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It would require legislation and an updated framework designed to encourage investment, protect the environment, and deliver a water system that works for Wales.

It comes after a catalogue of sewage scandals and mounting public anger over water companies’ performance led to a major review which called for oversight of the industry in Wales and England to be completely overhauled.

The government consultation document makes clear that for its plans to happen it would need the UK Government to agree to devolve further powers to Wales – something which the current administration has come under fire for refusing in other areas such as justice.

READ MORE: More business rate relief for hospitality firms in WalesREAD MORE: It’s wrong to caricature Welsh firms as being too cautious when it comes to growth finance

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There needs, it says, to be “hard decisions”, including investment and changes to infrastructure which will “exceed what customers can reasonably afford”.

The long-term strategy to deliver the plans forecasts legislative change would happen between 2026 and 2028-29.

There would then be a new Welsh economic regulator and system planning function for water from 2028 until the early 2030s with an economic regulator for water set up and operating from the mid 2030s onwards.

The 88-page paper says despite investment improvements need to happen.

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“Wales now faces a new reality. Climate and nature emergencies, alongside persistent challenges, demand urgent action,” says the report.

“The water system designed for a different time no longer meets the needs of our people, our environment, or our economy.

“We have made good progress but people across Wales are rightly concerned about sewage discharges, outdated infrastructure, and the condition of water in their communities. We cannot stand still. It is time for fundamental reset.

“Improving the health of our rivers will require action across the whole water environment.

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“Pressures from land use, agriculture, and the way organic materials are managed once applied to land all contribute to the condition of our catchments.

“We are therefore taking a whole-system approach, ensuring work to change water governance in Wales is aligned with wider action to address nutrient pollution, strengthen accountability, and restore trust that the system works in the public interest.”

The report says the following measure need to happen:

  • A separate regulator for Wales. This would “strengthen public confidence and support long-term investment in infrastructure and environmental protection”;
  • a clear, long-term strategic direction that articulates national priorities, sets interim targets, and provides a framework for delivery across sectors;
  • a change from a “fragmented and process-heavy planning towards a coherent, outcome-focused system”;
  • a longer-term integrated plan covering water resources and water supply, drainage and wastewater, and environmental water quality to inform investment priorities and to provide clarity to the wider system, for example land use planning; and
  • working with the water industry to reduce inappropriate materials entering their network such as wipes, sanitary products, cotton buds, fats, oils, and greases by preventing these items from being flushed or poured away. Reducing this burden on water systems protects the environment, lowers maintenance costs, and strengthens resilience, helping communities enjoy cleaner, safer, and more reliable water while supporting more stable and potentially lower bills.

The report says any reforming governance, enforcement and monitoring in Wales will be a “complex and interdependent process”.

“It will begin with a comprehensive review of existing frameworks to identify gaps, overlaps, and areas of weakness. This will be followed by engagement across government, regulators, industry and civil society to design a system that reflects Welsh values and priorities.

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“Throughout effective engagement with the UK Government will be essential, particularly during the period when regulation of Welsh water companies continues through the new UK Government water regulator, until the Welsh regulator is established.

“The process will then move forward through legislative and operational change, coordinated with the establishment of the new Welsh regulator, with regulation of Welsh water companies continuing through the new English regulator until the Welsh regulator is in place,” it says.

It however says that changes could lead to “confusion, resistance, or unintended consequences” and the reforms could be seen as “punitive or overly centralised”.

Afonydd Cymru, which represents river trusts in Wales, told the BBC the proposals provided “a beacon of hope” but urged the government to act quickly.

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Chief executive Gail Davies-Walsh said: “It must be remembered that it is just a consultation at this stage and nothing yet is set in stone”.

She added that the “thorny question of funding was not resolved either”.

Interim chief executive of water regulator Ofwat Chris Walters said: “This Green Paper sets the framework for the future of the water sector in Wales, which we welcome. The creation of a dedicated regulator for Wales will strengthen scrutiny and accountability within a framework designed specifically for Wales, marking an important evolution in how companies will be overseen going forward.

“As the Welsh Government develops the regulatory new body, we remain committed to the delivery of our core functions and are already working closely with Welsh Government, Defra, Natural Resources Wales and other regulators to ensure that the sector moves towards a more integrated and resilient future.

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“Our 2024 Price Review approved record investment in Wales- more than £6.3bn- which will enable major improvements for customers and the environment by 2030.”

Derek Walker, Future Generations Commissioner for Wales, said: “This needs to be a wake-up for the water industry and is an overdue opportunity to fix the problems of the past and become a clean water abundant nation. Welsh Government has acted decisively, and we now need to make sure that securing healthy waters for Wales is a priority for the UK Government and the next Welsh Government.

“Everything must be done to ensure the transition to a new body happens without delay to deliver long-term environmental recovery and affordability, alongside strengthened compliance and regulation.

“Any investment in the water system must work urgently to restore nature, support food production, improve climate resilience and deliver new housing and infrastructure as we protect the long-term health of our rivers, seas and the water that’s essential to life.”

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Deputy first minister Huw Irranca-Davies said: “Our ambition is clear and bold: clean and thriving rivers, safe and high-quality drinking water, fair and affordable services, and modern infrastructure ready for the future. We will strengthen accountability, rebuild trust, and create a system that is simpler, stronger and more transparent.

“Wales now faces an urgent reality. Climate and nature emergencies, ageing infrastructure, and public concerns about water quality demand decisive action. The system we have today was designed for a different era. It is time for a fundamental reset.”

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EU ‘open-minded’ on UK customs union talks, commissioner says

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EU ‘open-minded’ on UK customs union talks, commissioner says

Brussels would be willing to discuss closer trade ties with the UK, including the possibility of cooperation on a customs union, a senior European commissioner has said, signalling the clearest openness yet from the EU to re-engage with Britain.Speaking to the BBC

after high-level talks in London, Valdis Dombrovskis, the European Commissioner for Economy, said the EU was “ready to engage with an open mind” if the UK wanted to explore deeper economic alignment.

His comments come amid growing pressure on Labour to reconsider its stance on a customs union with the EU, as businesses and some MPs argue closer ties could help offset global trade uncertainty.

Dombrovskis also said the EU and UK could remove “most” food checks between Britain and the bloc if agreement is reached on aligning sanitary and phytosanitary rules, potentially easing one of the biggest sources of friction for exporters since Brexit.

The commissioner was speaking following meetings with senior UK ministers, including Chancellor Rachel Reeves, European trade commissioner Maroš Šefčovič, and cabinet ministers Peter Kyle and Nick Thomas-Symonds.

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The group, informally dubbed the “Quint” by diplomats, is intended to meet regularly to coordinate responses to a rapidly shifting global trade and security environment. While it is not formally tasked with renegotiating Brexit arrangements, its creation signals a renewed willingness on both sides to cooperate.

At a public event alongside Dombrovskis, Reeves said stronger UK-EU ties were becoming increasingly important as “we are sliding towards a world where the rules are less clear”, pointing to heightened geopolitical and trade tensions.

A customs union would eliminate tariffs on goods traded between the UK and the EU and significantly reduce border bureaucracy. However, critics argue it would restrict the UK’s ability to strike independent trade deals, as Britain would be required to align with the EU’s common external tariff and trade policy.

Labour’s election manifesto ruled out rejoining the EU customs union or the single market, and also rejected freedom of movement. However, senior figures have increasingly acknowledged the economic case for closer alignment, with Foreign Secretary David Lammy previously suggesting a customs union could support growth.

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Asked directly whether the EU would welcome talks on a customs union, Dombrovskis stopped short of a commitment but said: “We are ready to engage with an open mind and seek those areas of cooperation.”

He added that the EU was also open to discussing alignment in specific single-market areas, while stressing that full single-market membership would require acceptance of the four freedoms, including freedom of movement.

On defence, Dombrovskis said the EU remained open to further discussions on UK participation in the bloc’s €150bn Security Action for Europe (SAFE) defence loans programme, after talks stalled last year over limits on British firms’ involvement.

“We know the prime minister has expressed interest in returning to this issue, and there is certainly openness from the EU side,” he said.

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Progress has been stronger in other areas. Dombrovskis confirmed talks on a youth mobility scheme were “very advanced”, and said a forthcoming food standards agreement could eliminate most border checks, provided the UK aligns with EU rules.

The Liberal Democrats, who have long backed a customs union, welcomed the comments as a turning point. Treasury spokesperson Daisy Cooper said the EU’s stance was “a significant moment the government simply cannot afford to ignore”.

The developments come against the backdrop of escalating global tensions, including US tariff threats and renewed uncertainty over international trade rules, which both London and Brussels see as strengthening the case for closer cooperation.


Amy Ingham

Amy is a newly qualified journalist specialising in business journalism at Business Matters with responsibility for news content for what is now the UK’s largest print and online source of current business news.

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Citizens upgrades Airbnb stock rating to Market Outperform on hotel expansion

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