A lawsuit filed Wednesday in an Illinois federal court alleges that Costco owes its customers refunds related to tariffs deemed unlawful by the Supreme Court last month. The suit is seeking class-action status on behalf of Costco shoppers nationwide.
Costco increased product prices to offset the cost of tariffs, but it hasn’t promised shoppers a refund, said the lawsuit filed on behalf of Matthew Stockov, a Costco member who lives in Illinois. Shoppers won’t get a government refund directly, because they aren’t the importer of record, said the lawsuit. “The truly injured parties possess no direct avenue for redress,” alleged the lawsuit, which asks Costco for a refund on price increases related to tariffs, plus interest.
A Costco spokesman said the company had no comment on the lawsuit. “Our commitment will be to find the best way to return this value to our members through lower prices and better values,” if the company receives tariff refunds, said Chief Executive Ron Vachris on an earnings call last week. It has taken a similar approach with past legal winnings, he said.
Acuity Inc. (AYI) Q2 2026 Earnings Call April 2, 2026 8:00 AM EDT
Company Participants
Charlotte McLaughlin – Vice President of Investor Relations Neil Ashe – Chairman, President & CEO Karen Holcom – Senior VP & CFO
Conference Call Participants
Advertisement
Joseph O’Dea – Wells Fargo Securities, LLC, Research Division Christopher Snyder – Morgan Stanley, Research Division Ryan Merkel – William Blair & Company L.L.C., Research Division Christopher Glynn – Oppenheimer & Co. Inc., Research Division Tyler Bisset – Goldman Sachs Group, Inc., Research Division Jeffrey Sprague – Vertical Research Partners, LLC Robert Schultz – Robert W. Baird & Co. Incorporated, Research Division
Presentation
Operator
Advertisement
Good morning, and welcome to the Acuity Fiscal 2026 Second Quarter Earnings Call. [Operator Instructions] Please be advised that today’s conference is being recorded.
I would now like to hand the conference over to Charlotte McLaughlin, Vice President of Investor Relations. Charlotte, please go ahead.
Charlotte McLaughlin Vice President of Investor Relations
Advertisement
Thank you, operator. Good morning, and welcome to the Acuity Fiscal 2026 Second Quarter Earnings Call. On the call with me this morning are Neil Ashe, our Chairman, President and Chief Executive Officer; and Karen Holcom, our Senior Vice President and Chief Financial Officer.
Today’s call will include updates on our strategic progress and our fiscal 2026 second quarter performance. There will be an opportunity for Q&A at the end of the call.
As a reminder, some of our comments today may be forward-looking statements. We intend these forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as detailed on Slide 2 of the accompanying presentation.
Reconciliations of certain non-GAAP financial metrics with their corresponding GAAP measures are available in our 2026 second quarter earnings release and supplemental presentation, both of which are available on our Investor Relations website at www.investors.acuityinc.com.
Coca-Cola on Thursday unveiled a new marketing campaign to boost sales of its soda at restaurants as declining traffic and sluggish sales growth challenge both the industry and its top beverage supplier.
The campaign marks the first time Coke has released ads featuring multiple restaurant partners. The commercials flash across different consumers ordering their meals at a medley of chains, all ending their orders with the same phrase, “And a Coke.”
Across the three spots released Thursday, 13 different chains share the spotlight: Arby’s, Culver’s, Domino’s Pizza, Five Guys, Jack in the Box, Jimmy John’s, Panda Express, Popeyes, Sonic, Wendy’s, Whataburger, White Castle and Wingstop.
Advertisement
For restaurants, drinks — even a simple Coke — are high-margin menu items, helping lift profits in an industry known for its razor-thin margins. That sale becomes even more important as consumers cut back on restaurant visits and spend less when they do dine out.
In February, traffic to U.S. restaurants fell 2%, according to data from Black Box Intelligence. And 38% of consumers said they were spending less at restaurants during the first quarter of 2026, based on a survey conducted by Revenue Management Solutions.
Behind the scenes, Coke has also been trying to help boost restaurant sales amid the spending slowdown. As the so-called value wars kicked off among fast-food chains in 2024, Coke executives said that the company had teamed up with restaurant partners to market combo meals with drinks to drive traffic and beverage sales; CNBC previously reported that Coke threw in marketing funds to make a $5 value meal more attractive to McDonald’s U.S. franchisees.
Coke chose the chains in its new campaign based on the different cuisines and the occasions they represent, like late-night pickup or drive-thru, according to Dagmar Boggs, Coke’s North American president of foodservice and on-premise.
Advertisement
The commercials will air in movie theaters starting Friday. By mid April, the campaign will spread to linear TV, digital channels and third-party delivery providers like UberEats and DoorDash.
The chains did not pay Coke to participate in the advertisements. Boggs called it “the perk of being a partner with Coca-Cola.”
Boggs describes Coke as a “business partner” rather than a “beverage supplier” for restaurants, giving insight and marketing suggestions to chains like Burger King or Wendy’s.
Of course, higher Coke sales at restaurants will also benefit the beverage giant. Coke does not publicly disclose how much of its sales come from restaurants. However, executives have previously said that about half of its overall sales come from away-from-home channels, which also include movie theaters, airplanes and amusement parks.
Advertisement
Coke’s food service business also serves a bellwether for consumer sentiment.
“If food service catches a cold in the North America operating unit, North America will catch a cold,” Boggs said. “That’s why we are always looking to grow our partners’ business, because when they grow, we grow.”
In 2025, Coke’s North American organic sales rose 4%, but its domestic unit case volume fell 1%, a signal of weaker demand for its drinks. The company is projecting modest sales growth in 2026, according to the outlook it released in early February.
The Tesco and Sainsbury’s supplier said it has seen only a small impact from higher haulage costs due to fuel price rises but warned ‘these conditions have now started to change’
Alistair Houghton Editor, Business Live and Holly Williams Press Association Business Editor
15:35, 02 Apr 2026
McBride makes products including Oven Pride (Image: srenilson)
Household goods manufacturer McBride, maker of Oven Pride, has announced “temporary” price increases to offset escalating costs stemming from the Iran war and warned it was observing early indicators of supply shortages triggered by the conflict.
The company, which produces branded and own-label household and cleaning products for retailers including Tesco and Sainsbury’s, said that until recently it had only experienced a modest impact from elevated haulage expenses owing to fuel price rises, but noted “these conditions have now started to change”.
Advertisement
It reported that the “most heavily impacted” chemical and packaging suppliers are implementing price rises as they confront mounting costs for petrochemical-derived feedstocks and increased energy expenses in chemical and packaging manufacturing.
“The first signs of possible shortages in supply chains around the world are beginning to emerge,” it added.
Manchester-based McBride indicated its costs are climbing this month and will rise further because of the war, and is preparing to increase prices to counter the impact.
“The group has already informed all customers about temporary price adjustments, or surcharges to current pricing, to recover these higher, beyond our control, cost impacts from the Middle East conflict,” McBride said.
Advertisement
The warnings emerge amid growing concerns over the conflict’s impact on supply and costs, having driven oil prices soaring above 100 US dollars per barrel and causing widespread disruption to global shipping. Supermarket representatives gathered with Chancellor Rachel Reeves and Energy Secretary Ed Miliband at No 11 on Wednesday to examine the difficulties arising from the conflict, agreeing to jointly explore ways to alleviate the cost-of-living burden on consumers.
McBride’s remarks came as part of an update in which the company also unveiled a £34.5 million acquisition of Eurotab – a France-based specialist manufacturer of cleaning tablets, including those designed for dishwashers.
TUCSON, Ariz. — More than two months after 84-year-old Nancy Guthrie vanished from her home in the Catalina Foothills area north of Tucson, authorities say the investigation into her apparent abduction remains active but has yielded no arrests, no confirmed motive and no trace of the mother of NBC “Today” show co-host Savannah Guthrie.
Savannah Guthrie & Nancy Guthrie
Guthrie was last seen late on the night of Jan. 31, 2026, after returning home from dinner with family. She failed to appear the next morning, Feb. 1, at a friend’s house to watch a livestreamed church service — a routine she followed regularly. When she did not answer calls or show up, family members grew concerned and contacted authorities. Pima County Sheriff’s deputies responded and quickly determined the circumstances suggested she had been taken against her will from her residence.
Investigators described signs of a possible forced entry or disturbance at the home, though details have been limited to protect the ongoing probe. No signs of a struggle or assault were immediately apparent inside, but the case was treated as an abduction from the outset. Surveillance footage from the property and nearby areas has been reviewed extensively, with some video released publicly showing limited activity but nothing conclusively identifying a suspect.
As of early April 2026, Guthrie has been missing for more than 60 days. Pima County Sheriff Chris Nanos has stated publicly that he believes the 84-year-old widow was specifically targeted, raising concerns that the perpetrator or perpetrators could strike again. No ransom demand has been confirmed as legitimate by authorities, though multiple ransom notes referencing Bitcoin payments reportedly surfaced in the weeks following the disappearance, adding layers of complexity and speculation to the case.
The FBI joined the investigation early, offering a $100,000 reward that the family later supplemented with a private $1 million offer for information leading to Guthrie’s safe return or the arrest and conviction of those responsible. Savannah Guthrie and her siblings have made emotional public pleas, including video statements urging anyone with information to come forward. “No detail is too small,” the family said in a recent statement, emphasizing that even seemingly insignificant observations could prove vital.
Advertisement
Forensic efforts have included analysis of black gloves discovered roughly two miles from the home, which contained DNA from an unknown male. That profile was entered into national databases but has not produced a match so far. Cadaver dogs were deployed in searches of surrounding desert areas but have been placed on hold as leads have not directed teams to specific sites. Neighbors have been questioned about unusual activity, internet disruptions or unfamiliar vehicles in the days leading up to and following Jan. 31.
The high-profile nature of the case, tied to Savannah Guthrie’s prominent role on the “Today” show, has drawn national and international media attention. Experts have described the disappearance as unusual for several reasons: the victim’s age, the apparent lack of immediate motive such as robbery or random violence, and the targeted nature suggested by investigators. Some retired law enforcement officials have theorized the involvement of multiple people, citing the logistics of removing an elderly woman from her home without immediate detection.
Guthrie, a widow since 1988, lived independently in the Tucson area. She was known in her community for her faith, family connections and regular church involvement. Her children, including Savannah, have described her as vibrant and active despite her age. The family has been cleared of any involvement by the sheriff’s office, which publicly stated that all relatives and spouses cooperated fully and were eliminated as suspects.
The investigation has expanded to examine surveillance footage and tips from dates earlier than the disappearance, including around Jan. 24, as detectives look for patterns or preparatory activity. Tips continue to pour in — more than 1,500 in the first month after the expanded reward — but authorities stress the need for verified, actionable information amid a flood of speculation on social media and true-crime forums.
Advertisement
As the case enters its third month, experts warn that the passage of time complicates efforts. Cold-case specialists note that after the initial 48 to 72 hours, the chances of a quick resolution diminish, and investigations shift toward long-term evidence analysis, digital forensics and behavioral profiling. The desert environment around Tucson adds challenges for physical searches, with vast areas of rugged terrain where evidence could be difficult to locate.
The disappearance has also spotlighted broader issues surrounding missing persons cases, particularly among older adults. Advocates say high-profile cases like Guthrie’s can bring renewed attention and resources to thousands of other unresolved disappearances that receive far less publicity. Some families of long-missing loved ones have reported that the Guthrie coverage has reopened personal wounds while also encouraging more people to report tips in their own cases.
Pima County authorities continue to urge the public to report any information, no matter how minor. A dedicated tip line and online portal have been established. The sheriff’s office has emphasized that the case remains a priority, with multiple agencies collaborating, including the FBI’s Phoenix field office.
Savannah Guthrie has returned intermittently to her “Today” show duties, often off-camera for emotional support from colleagues, while balancing family responsibilities and the search for her mother. In public statements, she has expressed both hope for a miracle and acknowledgment of the painful uncertainty.
Advertisement
No persons of interest have been publicly named, and no arrests have been made. Speculation about motives — ranging from targeted retaliation to opportunistic crime — remains unconfirmed. Theories involving accomplices or prior surveillance of the home have circulated among analysts, but officials have declined to comment on specifics.
The case continues to captivate the public, with daily updates on local Arizona news outlets and national coverage on networks where Savannah Guthrie is a familiar face. True-crime podcasts and YouTube channels have dissected timelines, released footage and expert opinions, though authorities caution against unverified claims that could hinder the probe.
As April 2026 progresses, the family and investigators persist in their efforts. Search operations, forensic testing and tip evaluation continue without a clear resolution in sight. For the Guthrie family and the Tucson community, the agonizing wait for answers stretches on, with hopes pinned on a breakthrough that has so far remained elusive.
Anyone with information about Nancy Guthrie’s disappearance is urged to contact the Pima County Sheriff’s Department or the FBI tip line. Rewards remain available for credible leads that advance the case.
Boston Celtics Hall of Famer Robert Parish has named his all-time NBA starting five, selecting Michael Jordan, Magic Johnson, Larry Bird, Tim Duncan and Kareem Abdul-Jabbar in a lineup that blends supreme athleticism, elite playmaking, championship pedigree and timeless greatness.
The “Chief,” a four-time NBA champion and nine-time All-Star who anchored the Celtics’ frontcourt alongside Larry Bird and Kevin McHale during the 1980s dynasty, shared his picks in a recent interview that quickly sparked debate among fans and analysts. Parish’s selection places the game’s most iconic figures in positions that highlight their versatility and impact across eras.
At point guard, Parish chose Magic Johnson, the Lakers legend whose 6-foot-9 frame revolutionized the position with unmatched vision and size. Johnson’s five NBA titles, three Finals MVPs and career 11.2 assists per game made him an easy choice for the floor general role, according to Parish. The two faced off in intense Celtics-Lakers rivalries that defined the 1980s, giving Parish firsthand appreciation for Magic’s ability to elevate teammates.
Shooting guard goes to Michael Jordan, whose six championships with the Chicago Bulls, five MVP awards and unmatched scoring prowess need little introduction. Parish, who briefly played with Jordan on the 1996-97 Bulls at age 43, has long spoken respectfully of Jordan’s competitiveness while maintaining his own perspective on the era. Jordan’s defensive intensity and clutch performances sealed his spot in Parish’s lineup.
For small forward, Parish selected his longtime Celtics teammate Larry Bird, the three-time MVP and three-time champion whose shooting, passing and trash-talking leadership helped Boston win titles in 1981, 1984 and 1986. Bird’s placement reflects not only personal loyalty but also Parish’s belief in Bird’s status among the greatest forwards ever, citing his basketball IQ and ability to make everyone around him better.
Advertisement
Power forward belongs to Tim Duncan, the San Antonio Spurs cornerstone whose quiet excellence produced five titles, two MVPs and a reputation as one of the most fundamentally sound players in league history. Parish praised Duncan’s consistency, defense and leadership over two decades, noting how the “Big Fundamental” embodied the professional standard every big man should aspire to.
At center, Parish tabbed Kareem Abdul-Jabbar, the NBA’s all-time leading scorer until LeBron James passed him and a six-time MVP with six championships. Abdul-Jabbar’s skyhook, longevity and defensive presence made him the clear choice at the five spot for Parish, who competed against the Lakers legend during his prime.
The lineup — Johnson, Jordan, Bird, Duncan, Abdul-Jabbar — features three MVPs, multiple champions and players who dominated their respective positions for years. It notably omits modern stars such as LeBron James, Stephen Curry and Nikola Jokic, as well as other historical giants like Wilt Chamberlain, Bill Russell and Shaquille O’Neal, prompting lively discussion online.
Parish’s perspective carries weight as one of the NBA’s iron men. He played 1,611 regular-season games, a record that stood until LeBron James surpassed it in March 2026. Drafted eighth overall by the Golden State Warriors in 1976, Parish was traded to Boston in 1980 in one of the most lopsided deals in league history, pairing him with Bird and McHale to form one of the greatest frontcourts ever. The trio helped the Celtics capture three titles and reach the Finals five times in the 1980s.
Advertisement
Now in his 70s, Parish remains active in basketball conversations through interviews, podcasts and his recent memoir. He has consistently praised the 1980s era for its physicality and team-oriented play while acknowledging the skill level of today’s game. His all-time five reflects a blend of eras: the showtime flair of Magic, the killer instinct of Jordan, the Celtic pride of Bird, the fundamental mastery of Duncan and the enduring excellence of Abdul-Jabbar.
Fans and analysts quickly weighed in after the picks surfaced. Some praised the balance of offense, defense and leadership. Others questioned the absence of LeBron James, who many consider the most complete player ever with four titles across three franchises and all-time scoring leadership. Supporters of Wilt Chamberlain pointed to his statistical dominance, while Russell advocates highlighted his unmatched 11 championships.
Parish has never shied away from strong opinions. In past discussions, he has questioned aspects of Jordan’s path to greatness, noting that the Bulls faced weakened competition in some playoff runs compared to the stacked Eastern Conference of the 1980s. He has also ranked centers, placing Abdul-Jabbar at or near the top while acknowledging greats like Bill Walton, whom he played with in Boston.
The timing of Parish’s comments adds fuel to the perennial all-time greats debate as the 2025-26 NBA season winds down and the 2026 playoffs approach. With stars like Jokic, Giannis Antetokounmpo and Luka Doncic continuing to build their resumes, conversations about where they rank among legends remain lively.
Advertisement
Parish’s selection underscores how personal experience shapes these lists. As a four-time champion who battled Magic and Abdul-Jabbar in the Finals and later shared a locker room with Jordan, his viewpoint blends direct competition with deep respect for the game’s history.
The Chief’s career statistics — 23,334 points, 14,715 rebounds and 2,361 blocks — place him among the elite centers. He earned induction into the Naismith Memorial Basketball Hall of Fame in 2003 alongside James Worthy. His longevity, playing until age 43, remains remarkable in an era before modern load management.
In Boston, Parish is revered as the steady anchor of the Bird-era Celtics. His No. 00 hangs in the TD Garden rafters, and fans still chant “Chief” during celebrations. The franchise’s success in the 1980s, with Parish as the defensive and rebounding presence, laid the foundation for its identity as one of the NBA’s most storied teams.
While all-time starting fives are inherently subjective, Parish’s choices highlight players who combined individual brilliance with team success. The inclusion of three players from the 1980s — Magic, Bird and Kareem — reflects the era Parish knows best, while Duncan represents the next generation of fundamental big men.
Advertisement
Debate is expected to continue across sports media, social platforms and fan forums. Some lists favor LeBron at small forward or power forward, others insert Curry for his revolutionary shooting, and many include Russell or Chamberlain at center for their defensive or statistical dominance.
For Parish, the exercise appears less about settling arguments and more about honoring those who defined greatness in their time. His lineup would feature unmatched passing from Magic and Bird, scoring from Jordan, defense and fundamentals from Duncan, and scoring and rim protection from Kareem — a hypothetical team that could compete in any era.
As the NBA celebrates its rich history ahead of future anniversary teams, voices like Parish’s remind fans that greatness comes in many forms. Whether his five would defeat other legendary lineups remains a fun thought experiment, but the respect he shows for these icons underscores their lasting impact.
Parish continues to engage with the game he loves, offering perspective that bridges generations. From the parquet floors of Boston Garden to today’s arenas, his insights carry the weight of a champion who lived the rivalries and built the legacies now under discussion.
Advertisement
The all-time starting five conversation will never end, but Robert Parish has added his chapter — one rooted in championships, competition and a deep love for basketball’s greatest players.
US President Donald Trump (C), alongside Secretary of Health and Human Services Robert F. Kennedy Jr. (R) and National Institute of Health (NIH) Director Jayanta Bhattacharya (L), speaks during a news conference about prescription drug prices, in the Roosevelt Room of the White House on May 12, 2025, in Washington, DC.
Jim Watson | Afp | Getty Images
The Trump administration is preparing to impose new tariffs on branded drugs from pharmaceutical companies that have not struck landmark deals with the president to lower their U.S. drug prices, CNBC has learned.
Advertisement
Patented medications and their active ingredients would be hit with a 100% tariff, according to a draft of the document obtained by CNBC. But there are pathways for drugmakers to reduce or avoid the levies if they move their manufacturing to the U.S. or are negotiating deals with the administration.
The proposal is not final, and it is unclear when the Trump administration may announce it, though some reports indicated it could be as soon as Thursday.
Since November, more than a dozen major drugmakers, including Eli Lilly, Pfizer and Novo Nordisk, have inked deals with Trump to lower the prices of new and existing medicines. Those agreements are part of the president’s “most favored nation” policy, which ties U.S. drug prices to cheaper ones abroad, and exempted the companies from tariffs for three years.
As part of the draft plan, the administration will impose a 20% tariff on companies that plan to onshore production, which increases to 100% four years from now.
Advertisement
There are separate rates for the EU, Japan, South Korea, Switzerland and the U.K. based on bilateral deals. Meanwhile, companies that have fully executed deals or are currently negotiating with the Health and Human Services department are exempt from the tariffs.
There will also be zero additional tariffs on generic drugs, according to the draft document.
The White House did not immediately respond to a request for comment on the draft pharmaceutical tariff plan.
Bloomberg first reported on the new pharmaceutical tariffs late Wednesday.
FOX Business’ Ashley Webster reports on Atlanta’s first government-funded grocery store, where millions in taxpayer-backed loans are fueling a bold experiment to address food deserts.
Albertsons is closing additional stores and cutting jobs nationwide as it works to stabilize operations following the collapse of its $24.6 billion merger with Kroger, intensifying pressure on the grocery chain.
The Boise, Idaho-based company — which operates banners including Safeway, Vons and Pavilions — has announced a new round of closures in recent weeks as it pivots to cost-cutting and operational changes.
Advertisement
The company has closed roughly 20 stores in 2025, underscoring mounting pressure as it competes with larger rivals such as Walmart and other low-cost operators.
In Southern California, Vons stores in Escondido and Redlands will close in April, eliminating 135 jobs. An Albertsons store near Riverside, California, shut down in March, cutting 75 workers, while a Safeway in Northern California closed earlier this year, affecting 76 employees.
An employee stocks food inside an Albertsons grocery store in San Diego, California. (Bing Guan/Bloomberg via Getty Images)
The cuts extend beyond the West Coast. Two Albertsons-owned stores in North Texas are set to close by late April, impacting 138 workers, and a Safeway in Washington, D.C., is slated to shut down in May, eliminating 87 positions.
Advertisement
Industry analysts say the closures reflect ongoing fallout from the blocked Kroger merger, which Albertsons had framed as key to achieving scale and competing more effectively on pricing.
In response, the company is leaning on cost reductions and technology investments, including automation and artificial intelligence, as digital sales grow — often requiring fewer in-store workers.
A worker pushes shopping carts outside an Albertsons supermarket in Las Vegas, Nevada. (Bridget Bennett/Bloomberg via Getty Images)
Albertsons is also facing investor skepticism, with its stock down over the past year.
Meanwhile, the legal fight that killed the merger is still playing out. California and a coalition of states are seeking more than $10 million to cover the cost of blocking the deal.
Advertisement
Shoppers walk outside an Albertsons grocery store on February 26, 2024, in Las Vegas, Nevada. (Ethan Miller/Getty Images)
Regulators argued the merger would reduce competition and raise grocery prices. A federal judge agreed in 2024, halting what would have been the largest supermarket merger in U.S. history.
Kroger and Albertsons spent roughly $1.5 billion pursuing the deal, underscoring the scale of the failed tie-up.
Now operating independently, Albertsons is navigating a more competitive grocery landscape while restructuring its footprint and workforce to adjust to shifting consumer demand and margin pressure.
Jim Ratcliffe has thrown his support behind Conservative proposals to scrap carbon taxes, intensifying the debate over the cost of net zero policies and their impact on UK industry.
The billionaire founder of Ineos said he welcomed plans from Kemi Badenoch to remove levies on carbon emissions, arguing that current policies are undermining competitiveness and driving up energy costs for businesses and households.
Ratcliffe said he supported a pragmatic approach to energy policy that ensures affordability while maintaining environmental goals, warning that excessive taxation risks damaging domestic industry.
The Conservative proposal would scrap carbon pricing mechanisms such as the UK Emissions Trading Scheme (ETS), which requires industrial firms to purchase allowances to cover their emissions.
Supporters of the move argue that these costs place UK manufacturers at a disadvantage compared with international competitors, particularly in countries where carbon pricing is less stringent or absent.
Advertisement
Major industrial players, including ExxonMobil and Huntsman Corporation, have echoed these concerns, warning that high carbon costs are eroding margins, threatening jobs and contributing to the relocation of production overseas.
Paul Greenwood of ExxonMobil’s UK operations said his company pays “hundreds of millions of pounds” annually in carbon-related costs, while Peter Huntsman described the current system as a driver of “deindustrialisation”.
Carbon levies also feed directly into electricity costs. Under the UK’s Carbon Price Support mechanism, introduced in 2013, power generators must pay for emissions associated with fossil fuel use.
Because gas-fired power stations often set the wholesale electricity price, these costs are passed through to consumers, increasing bills across the economy.
Advertisement
Analysis from energy think tank Ember suggests that carbon taxes account for a significant proportion of generation costs, with implications for both businesses and households.
The proposal has exposed a sharp political divide over the future of the UK’s energy and climate policy.
Badenoch said scrapping carbon taxes would help reverse decades of industrial decline and strengthen national resilience, arguing that current policies are making it harder for businesses to operate competitively.
However, critics warn that removing carbon pricing could undermine efforts to reduce emissions and transition to cleaner energy sources.
Advertisement
Greenpeace UK has argued that carbon taxes remain a critical tool for driving investment in low-carbon technologies, while also questioning how the government would replace the lost revenue.
Scrapping carbon levies could also put the UK at odds with international frameworks, particularly the European Union’s planned carbon border adjustment mechanism, which is designed to level the playing field for industries facing carbon costs.
A divergence in policy could create new trade complexities, particularly for exporters operating across European markets.
Trade bodies representing energy-intensive sectors, including the Chemical Industries Association and Ceramics UK, have warned that many green technologies required to decarbonise industry are not yet commercially viable.
Advertisement
As a result, companies argue they are being forced to bear high costs without access to practical alternatives, creating a risk of plant closures and reduced investment.
The debate over carbon taxes reflects a broader challenge facing policymakers: balancing the need to reduce emissions with the imperative to maintain economic competitiveness and energy security.
For businesses, the outcome will have significant implications for costs, investment decisions and long-term strategy.
For the government, the question is whether adjustments to the current framework can address industry concerns without undermining progress towards net zero.
Advertisement
As pressure mounts from both industry and environmental groups, the future of carbon pricing is set to remain a central issue in the UK’s economic and energy policy agenda.
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.
You must be logged in to post a comment Login