Starmer met Amazon CEO Andy Jassy last week and welcomed the development, calling it “a massive vote of confidence in the UK as the best place to do business.”
According to the government, the investment will be used to build four new distribution centres, expected to create around 4,000 jobs. (Representational image: Getty)
Vivek Mishra works as an Assistant Editor with Eastern Eye and has over 13 years of experience in journalism. His areas of interest include politics, international affairs, current events, and sports. With a background in newsroom operations and editorial planning, he has reported and edited stories on major national and global developments.
AMAZON will invest £40 billion in the United Kingdom over the next three years, the government said on Tuesday. The announcement comes as prime minister Keir Starmer seeks to attract investment and revive economic growth.
Starmer met Amazon CEO Andy Jassy last week and welcomed the development, calling it “a massive vote of confidence in the UK as the best place to do business.”
“It means thousands of new jobs – real opportunities for people in every corner of the country to build careers, learn new skills, and support their families,” he said. “Whether it's cutting-edge AI or same-day delivery, this deal shows that our Plan for Change is working – bringing in investment, driving growth, and putting more money in people's pockets.”
New sites and job creation
According to the government, the investment will be used to build four new distribution centres, expected to create around 4,000 jobs. It will also be used to renovate Bray Film Studios, which Amazon acquired in July 2024.
Part of the total includes a portion of the £8 billion investment Amazon had announced in September 2024 for the construction, operation and maintenance of data centres in the UK, intended to support artificial intelligence computing needs.
In December, Amazon signed an agreement with Games Workshop, the British company behind “Warhammer 40,000”, to produce films and television series based on the franchise. The project is expected to feature actor Henry Cavill.
‘On the right track’
The announcement aligns with the release of the government’s “Modern Industrial Strategy”, outlining plans for collaboration between the state and high-growth industries.
Business and trade secretary Jonathan Reynolds will visit Amazon’s London headquarters on Tuesday to mark the investment.
“Our Modern Industrial Strategy will ensure the UK is the best country to invest and do business, and seeing massive international firms like Amazon bank on Britain shows we are on the right track,” Reynolds said.
Amazon’s UK presence
Amazon currently employs more than 75,000 people across more than 100 sites in the UK.
Jassy said, “Amazon has been proud to serve our customers in the UK for the past 27 years. Thanks to their support, we've grown to be part of over 100 communities nationwide, from developing drone technology in Darlington to producing world-class entertainment at our studios in Bray.”
He added, “We’re bringing innovation and job creation to communities throughout England, Wales, Scotland, and Northern Ireland.”
Global investments and ongoing probe
In February, Jassy announced Amazon would invest more than $100 billion globally in 2025, with a focus on expanding its cloud and AI capabilities.
Last week, Amazon announced a $13.3bn investment over five years in Australia, aimed at its data centre operations. It marked the country’s largest-ever technology investment.
In June, Amazon also made announcements of large-scale investments in North Carolina ($10bn) and Pennsylvania ($20bn), both for data centres and AI-related projects.
Meanwhile, Amazon is under investigation by the UK Food Regulator over suspected late payments to food suppliers. If found guilty, the company could face a fine of up to one per cent of its annual UK turnover.
JAGUAR LAND ROVER (JLR) has appointed PB Balaji as chief executive officer (CEO), effective November 2025. He will succeed Adrian Mardell, who is retiring after three years as CEO and 35 years with the company.
N Chandrasekaran, chairman of Jaguar Land Rover PLC, Tata Motors and Tata Sons, said: “I would like to thank Adrian for the stellar turnaround of JLR and for delivering record results. I am delighted to appoint Balaji as the incoming CEO of the company. The search for a suitable candidate to lead JLR has been undertaken by the Board for the past few months and after careful consideration it was decided to appoint Balaji. He has been associated with the Company for the past many years and is familiar with the Company, its strategy and has been working with the JLR leadership team. This move will ensure that we continue to accelerate our journey to Reimagine JLR.”
Mardell said: “These three years have been a great privilege. Together with the incredible JLR workforce, we have cemented JLR’s position in the automotive industry during a time of incredible change. I would like to thank everyone in JLR and the extended Tata Group, and wish Balaji every success in his new role.”
Balaji said: “It is my privilege to lead this incredible company. Over the past 8 years I have grown to know and love this company and its redoubtable global brands. I look forward to working with the team to take it to even greater heights. I thank Adrian for his immense contributions and wish him well for his next innings.”
Balaji has been Group chief financial officer of Tata Motors since November 2017 and a non-executive director on JLR’s board since December 2017. He has 32 years of experience in automotive and consumer goods industries and has worked in Mumbai, London, Singapore and Switzerland.
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Thursday’s rate reduction marked the BoE’s fifth cut since it began a rate-trimming cycle in August 2024. (Photo: Getty Images)
THE BANK OF ENGLAND on Thursday reduced its key interest rate by 0.25 percentage points to 4 per cent, the lowest level in two and a half years, as it looked to support the UK economy amid continued concerns over US tariffs.
The central bank also forecast that the British economy would grow by 1.25 per cent this year, a slight improvement from its earlier estimate of 1 per cent.
"The direct impact of US tariffs is milder than feared but more general tariff-related uncertainty still weighs on sentiment," the BoE said in a statement.
In May, London and Washington reached an agreement to cut tariffs of more than 10 per cent imposed by US president Donald Trump on certain UK-made products imported by the US, especially vehicles.
Thursday’s rate reduction marked the BoE’s fifth cut since it began a rate-trimming cycle in August 2024.
"Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully," said BoE governor Andrew Bailey.
The BoE’s primary objective is to maintain the UK’s annual inflation rate at 2.0 per cent. However, the most recent data showed inflation had risen to an 18-month high in June.
The Consumer Prices Index climbed to 3.6 per cent, with motor fuel and food prices remaining elevated.
Weak economy
Official data showed the UK economy contracted for a second consecutive month in May, and unemployment reached a near four-year high of 4.7 per cent.
The contraction has been attributed in part to prime minister Keir Starmer’s Labour government raising UK business taxes from April. That same month, the country became subject to Trump’s 10 per cent baseline tariff on most goods.
Finance minister Rachel Reeves welcomed the BoE’s decision.
"This fifth interest rate cut since the election (win by Labour in July 2024) is welcome news, helping bring down the cost of mortgages and loans for families and businesses," she said in a statement.
Last week, the US Federal Reserve held interest rates steady, resisting political pressure from Trump to lower borrowing costs to stimulate the US economy.
Asked about tariffs, Fed chair Jerome Powell said at a press conference, "We're still a ways away from seeing where things settle down."
The European Central Bank is expected to keep interest rates unchanged at its next meeting, as eurozone inflation remains close to its two per cent target. However, economists have noted this could change depending on the impact of Trump’s tariffs on the euro area.
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Donald Trump speaks with the press as he meets with Narendra Modi in the Oval Office of the White House in Washington, DC, on February 13, 2025. (Photo: Getty Images)
INDIAN exporters on Thursday warned that additional US tariffs could render many businesses "not viable" after president Donald Trump ordered a steep hike in levies on Indian goods over New Delhi’s purchase of Russian oil.
Stocks opened slightly lower, with the benchmark Nifty index falling 0.31 per cent after the initial 25 per cent US tariff came into effect. The levy is set to double to 50 per cent from August 28, following Trump’s order on Wednesday penalising India’s continued imports of Russian oil.
India is the second-largest buyer of Russian crude, benefiting from discounts amid Western sanctions. The US move is aimed at cutting Moscow’s oil revenue, which is used to fund the war in Ukraine.
India’s foreign ministry called the new US tariffs “unfair, unjustified and unreasonable.”
Exporters fear impact
SC Ralhan, president of the Federation of Indian Export Organisations (FIEO), said the decision would significantly affect trade.
"This move is a severe setback for Indian exports, with nearly 55 per cent of our shipments to the US market directly affected," he said in a statement.
"The 50 per cent reciprocal tariff effectively imposes a cost burden, placing our exporters at a 30–35 per cent competitive disadvantage compared to peers from countries with lesser reciprocal tariff."
Ralhan added that "many export orders have already been put on hold" as buyers reconsider sourcing.
For many small to medium-sized businesses, margins are already thin, he said. "Absorbing this sudden cost escalation is simply not viable."
Tariff could hit growth
The US is India’s largest trading partner, with exports to the country amounting to $87.4 billion in 2024.
"If the extra 25 per cent tariff that president Trump has announced on imports from India remains in place, India’s attractiveness as an emerging manufacturing hub will be hugely undermined," said Shilan Shah of Capital Economics.
Shah said US spending supports around 2.5 per cent of India’s GDP. He added that a 50 per cent tariff is "large enough to have a material impact", potentially reducing economic growth to closer to six per cent this year and next, down from the current forecast of seven per cent.
Modi says farmers’ interests come first
prime minister Narendra Modi, responding publicly for the first time, said India would not compromise the interests of its farmers.
"For us, our farmers' welfare is supreme," Modi said at an event in New Delhi. "India will never compromise on the wellbeing of its farmers, dairy (sector) and fishermen. And I know personally I will have to pay a heavy price for it."
While Modi did not directly name the US or mention the stalled trade talks, his comments were seen as a defence of India's position.
Trade negotiations between the two countries broke down after five rounds, mainly over India’s reluctance to open up its farm and dairy sectors and its continued purchase of Russian oil.
The Indian foreign ministry described the US move as “extremely unfortunate” and said it would “take all necessary steps to protect its national interests.”
India calls US move illogical
Dammu Ravi, secretary of economic relations in India’s foreign ministry, said the US decision lacked justification.
"The US tariff hike lacks logic," Ravi told reporters.
"This is a temporary aberration, a temporary problem that the country will face, but in course of time, we are confident that the world will find solutions."
New diplomatic efforts
India is already signalling a possible shift in diplomatic strategy. Modi is planning his first visit to China in over seven years, which may indicate a reassessment of global alignments.
Brazilian president Luiz Inacio Lula da Silva said on Wednesday that he would initiate a BRICS-level discussion on how to address the tariffs. He said he planned to call both Modi and China’s Xi Jinping. The BRICS group also includes Russia and South Africa.
India’s Ravi added that "like-minded countries will look for cooperation and economic engagement that will be mutually beneficial to all sides."
Political and industry response
Modi is facing growing calls to respond firmly to the US decision, with both his supporters and opposition leaders urging a strong reaction.
"India's national interest is supreme. Any nation that arbitrarily penalises India for its time-tested policy of strategic autonomy, rooted in the ideology of non-alignment, does not understand the steel frame India is made of," said Congress party president Mallikarjun Kharge.
Industry groups also voiced concern. Sudhir Sekhri, chairman of the Apparel Export Promotion Council, said: "There is no way the industry can absorb such a steep hike." He called for fiscal support from the government.
Reliance Industries, led by Mukesh Ambani, said in its annual report that ongoing geopolitical and tariff-related uncertainties could affect trade flows and the demand-supply balance.
India's equity market fell another 0.5 per cent on Thursday, hitting a three-month low. The muted reaction reflected investor expectations that the tariffs could still be negotiated down.
(With inputs from agencies)
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BoE officials monitor surveys of businesses and households for inflation expectations as indicators of future price rises and wage demands.
THE BANK OF ENGLAND (BoE) is expected to lower its key interest rate to 4 per cent from 4.25 per cent on Thursday and to make another cut before the end of the year. This comes as consumer price inflation rose close to double the central bank’s 2 per cent target in June.
Policymakers are divided over whether underlying price pressures are easing and if a slowing labour market and weak growth will cause inflation to fall below target in the medium term without further rate cuts.
UK's inflation rose more than in the euro zone or the United States after Russia’s invasion of Ukraine in 2022, peaking at 11.1 per cent due to heavy reliance on natural gas. Inflation dropped sharply in 2023, reaching a low of 1.7 per cent in September 2024. It has since risen more than in the United States or euro zone. In May, the BoE projected inflation would return to target only by early 2027. Inflation climbed to 3.6 per cent in June, the highest since January 2024, and some economists expect it to reach 4 per cent soon.
The European Central Bank expects euro zone inflation to remain just below 2 per cent.
BoE officials monitor surveys of businesses and households for inflation expectations as indicators of future price rises and wage demands. These measures have risen over the past year. The Citi/YouGov long-term expectations index is near its highest since late 2022, while the BoE’s survey is at its highest since 2019. Some officials, however, view these surveys as reflecting recent inflation rather than predicting future trends.
While headline consumer inflation fell in 2023 before rising again, services price inflation – influenced by labour costs – and core CPI, which excludes volatile items, have stayed higher than headline inflation. Food and drink inflation, which affects public perception and impacts poorer households significantly, has also risen rapidly.
Private-sector regular wage growth, just under 5 per cent annually, has slowed from over 8 per cent two years ago but remains about 2 percentage points above pre-pandemic levels and higher than the roughly 3 per cent seen as consistent with 2 per cent inflation. The BoE and employers expect pay growth to slow towards 3 per cent over the next 18 months, easing inflationary pressure. However, the decline in wage growth has been uneven, and rising unemployment and fewer vacancies do not guarantee a rapid slowdown.
Purchasing Managers’ Index data for July showed British businesses continued to raise prices at what S&P Global described as a “robust pace.” Although price increases are below 2022 levels, they remain higher than before the pandemic. Over the past year, costs for services and manufacturing businesses have risen sharply, potentially leading to higher consumer prices if passed on.
(With inputs from Reuters)
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Reeves said that measures in the last budget already targeted the wealthy.
CHANCELLOR Rachel Reeves has indicated there will be no wealth tax, saying those with the “broadest shoulders” have already contributed through existing levies.
Reeves has faced calls from Labour MPs, unions, and former minister Anneliese Dodds to impose new taxes on the savings, investments and property of the wealthy.
Dodds told the Sky News Electoral Dysfunction podcast that the Wealth Tax Commission had “looked at the operation of lots of different wealth taxes” and set out how one could work in the UK. She said she hoped the Treasury was considering the evidence and other proposals.
Reeves said that measures in the last budget already targeted the wealthy.
“We got rid of the non-domicile status in our tax system, so people who make Britain their home have to pay their taxes here. We introduced increased taxes on private jets, on second homes, and increased capital gains tax, so I think we’ve got the balance right in terms of how we tax those with the broadest shoulders,” she said.
Reeves said decisions on tax would be made in the budget, adding that the government’s priority was to grow the economy, attract investment and create jobs.
The Times reported that she is preparing to raise taxes in the autumn budget to address a £30 billion gap in public finances.