Thames Water defers controversial £2.5m in bonuses to bosses

Thames Water has deferred awarding bosses retention payments totalling £2.5m, avoiding a potentially damaging pre-Christmas row as the heavily indebted utility scrambles to agree a multibillion-pound rescue deal.Sources at the UK’s biggest water company confirmed the controversial retention payment package for 21 senior executives, which had been due to go out this month, would remain on hold until the new year.The bonuses were put on pause earlier this year after the Guardian revealed the chair of the company wrongly told parliament that creditors had “insisted” on the payments.Sir Adrian Montague admitted he “may have misspoken” after he incorrectly told the environment, food and rural affairs (Efra) select committee that the lenders had insisted that “very substantial” bonuses of up to 50% of salary should be paid to executives to help retain important staff

Jim Chalmers won’t have good news in Myefo. Instead, he’ll be trying to sell Labor’s good intentions

A penny-pinching Jim Chalmers will reveal a multibillion-dollar improvement in the federal budget that will still see the deficit nearly quadruple to $36.8bn in this financial year.The treasurer is the master of expectations management, and this week’s midyear economic and fiscal outlook (Myefo) will be an exercise in selling the Albanese government’s fiscal rectitude: Chalmers and Katy Gallagher gamely battling the rising tide of spending pressures.“Despite all the pressures we’ve had to accommodate in the budget, the bottom line is better in every year over the forwards thanks to our efforts,” the treasurer said in a statement as he revealed the latest budget figures.The newly estimated deficit is $5

Roasted! Morrisons loses £17m VAT battle over rotisserie chickens

The UK supermarket chain Morrisons faces a £17m tax bill after losing a lengthy court battle against HMRC over the charging of value added tax (VAT) on rotisserie chicken.The high court has ruled that whole cooked cool-down chickens should be subject to the standard 20% VAT rate for hot food.The dispute relates to changes introduced by the then chancellor George Osborne’s controversial “pasty tax” of 2012, when the Treasury imposed VAT on all hot takeaway food sold by bakeries and supermarkets, such as Cornish pasties, pies and sausage rolls. This prompted a public outcry, forcing the Treasury to partially row back.The Treasury initially said that food sold above “ambient temperature” should be subject to VAT

UK unemployment rose to four-year high of 5.1% before budget

The rate of UK unemployment rose to a four-year high of 5.1% in the three months to October, as the labour market showed signs of further weakening before last month’s budget.The Office for National Statistics said the jobless rate was the highest since January 2021 – but with the pandemic era stripped out, it was the highest since early 2016.Analysts said the rise in the jobless rate made it almost certain that the Bank of England would cut interest rates when policymakers meet on Thursday.The central bank has said it wanted wages growth to fall further before reducing the cost of borrowing again this year

Young people hit hard as UK unemployment marches upwards

When Labour came to power, it set a “long-term ambition” of increasing the employment rate – the share of the working age population with a job – to 80%. The latest data suggest things are moving in the wrong direction.The employment rate in the three months to October was 74.9%, according to the Office for National Statistics (ONS), down 0.3 percentage points on the quarter

‘Squeezed from every direction’: pubs voice fury at Reeves’s business rates changes

Emma Harrison has begun to wonder how her business will survive in recent weeks. The managing director of the Three Hills pub in Bartlow, Cambridgeshire, is struggling to see how she will make a profit after examining the impact of her rising tax bill.“I’m really terrified about this coming year,” Harrison says. “We’re a well-run pub, we’ve won lots of awards, but this is going to be really hard.”Harrison is not alone

Nissan begins production of new electric car in Sunderland

Nissan has started the production of its latest electric car in Sunderland, a crucial step in the UK automotive industry’s transition away from petrol and diesel.The Japanese manufacturer will launch the third generation of the Leaf on Tuesday, which was the first mass-market battery electric car to be built in the UK. Nissan has made 282,704 Leaf models at the north-east England plant so far.Nissan said it has invested more than £450m into manufacturing the new Leaf, including more than £300m directly into the company’s UK operations. Chris McDonald, the industry minister, will visit the factory on Tuesday

UK and South Korea sign new trade deal aimed at cars, salmon and Guinness

The UK has signed a new trade deal with South Korea designed to increase exports of cars, Scottish salmon and Guinness canned in Britain.Keir Starmer described the deal, which replaces an existing agreement, as “a huge win for British business and working people”. It follows UK deals with India and the US, and the free trade agreement with the EU clinched this year.Existing trade between the UK and South Korea is worth more than £15bn a year under a 2019 post-Brexit arrangement. The new deal covers the exports of services, automotive, pharmaceutical and food and drink, and would bring an extra £400m a year to the British economy, the UK government said

Morrisons becomes first UK supermarket to delay net zero targets

Morrisons has become the first UK supermarket chain to postpone its net zero carbon emission targets, delaying them by 15 years to 2050.Britain’s fifth-biggest grocer said its new targets would cover the entire supply chain, as well as Morrisons stores, including emissions from agriculture and land-use sources.The Bradford-based company said it had achieved a 22% reduction in total carbon emissions since 2019 – its baseline – through operational changes, energy-efficiency projects, lower-carbon logistics and collaboration with its suppliers.Morrisons denied the changes were a watering down of its targets.Andrew Edlin, head of sustainability at the chain, said: “The validation of these targets reaffirms Morrisons’ commitment to sustainability and the move to a 2050 target across the full value chain is a big step forward in our journey to net zero

The big quarrels over the workers’ rights bill have barely started | Nils Pratley

Will the employment rights bill be passed by Christmas? Well, the chances are slightly improved after six leading business groups published a temperature-lowering letter on Monday that said parliament, which in this instance means the blockers in the House of Lords, should get on with it.The employers, note, are still unhappy about the issue that triggered the most recent revolt by Conservative peers and a few cross-benchers: the removal of a cap on compensation claims for unfair dismissal. But they’re more worried that further delays would jeopardise their negotiating victory last month, namely the government’s U-turn on rights guaranteeing workers protection against unfair dismissal from day one of employment. A six-month qualifying period was adopted instead, with the blessing of the TUC, which was similarly motivated by trying to get the bill over the line quickly.The Lords is still free to object and add amendments again, of course

UK house prices tipped to rise by up to 4% in 2026 as affordability improves – as it happened

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.With the year almost over, thoughts are lightly turning to what might happen in 2026.And lender Nationwide is predicting that UK house prices will climb by up to 4% next year, as getting onto the housing ladder becomes slightly less difficult.In their Outlook for 2026, Nationwide’s chief economist Robert Gardner predicts that lower borrowing costs could help the market in the 12 months ahead, saying:“Looking ahead, we expect housing market activity to strengthen a little further as affordability improves gradually (as it has been in recent quarters) via income growth outpacing house price growth and a further modest decline in interest rates.We expect annual house price growth to remain broadly in the 2 to 4% range next year

Brighton’s struggling independent stores: ‘The nation of shopkeepers will go on the dole’

City’s small shops are reaching tipping point amid higher business rates, staff costs and big chains eager to move inIt’s lunchtime at Dormitory, an independent bedlinen store on Gloucester Road in Brighton, and proprietors Sue Graham and Cathy Marriott are peering across the street at the Brighton Sausage Co. They can tell when shoppers have stayed indoors by the number of sausage rolls left in the window. It’s a Tuesday before Christmas – supposedly the busiest time of the year. But there’s still a big pile remaining.“In 10 years’ time, we’re all going to be going, ‘We need shops

Festive food for less: Christmas dinner with all the cost trimmings

Figures show that the total cost of the all-important Christmas dinner is up 5% on a year ago, with the price of important elements such as pigs in blankets and stuffing up by 7%.With the cost of living still biting, however, a supermarket price war is taking some of the sting out of high food costs – with Aldi and Lidl selling the ingredients for a main Christmas meal for eight for less than £12.According to exclusive data prepared for Guardian Money by the analysts Assosia, the price of a frozen extra-large turkey is up 10p a kilogram to £3.70 (a 3% rise on a year ago) – which for an 8kg bird works out at £29.60

The 12 condiments of Christmas

Salt, sweet, bitter, acid, umami. While we don’t think to use too much “sweet” before dessert, it can counterbalance and enhance other flavours. Maple syrup is my sweetener of choice during the holidays because it just tastes cozy. Add it to roasted root vegetables or a poultry glaze, and it’s especially tasty in drinks, from hot apple cider to eggnog and even mulled wine.I’ve never met anyone who didn’t like butter, or ooh and ah at a homemade one

‘Every chef should train here’: Turkish restaurant ranks fourth on list of London’s top food spots

On a list of London’s best restaurants, you would expect to see the usual Michelin-starred suspects such as The Ledbury, Ikoyi and The Ritz. But high among these culinary heavyweights sits a humble salonu tucked away in the depths of north London.Neco Tantuni, a small Turkish eatery specialising in the foodie delights of Mersin, a city located on the southern coast of Turkey, has been crowned the fourth best restaurant in London by Vittles, the trendy food magazine that has become a bible for those looking for the best (and more off-the-radar) grub in the capital.“I’m totally shocked,” says Eren Kaya, whose parents hard graft has resulted in their restaurant, situated in a far-flung corner of Enfield, being placed near the top of the 99-strong list.The small shop, which was a greasy spoon cafe before being transformed into the hugely popular food hotspot, hasn’t fully shed the character of its former self

Ho, ho, Hamburg: bringing the flavours of a true German Christmas market home

From glühwein to lebkuchen, bratwurst to stollen, recreating the delicacies I sampled in the city’s festive markets is wholly achievable. Plus, a new digital cookbook for a good cause Sign up here for our weekly food newsletter, FeastWithout wanting to sound tediously Scrooge-like, the German-style markets that have become seasonal fixtures in many British cities over the last few decades never make me feel particularly festive. What’s remotely Christmassy – or German – about Dubai-chocolate churros and Korean fried chicken, I grumble as I drag the dog (who enjoys all such things) around their perimeters.Hamburg’s markets, however, which I was myself dragged around last weekend, are a very different story. For a start, the city has many of them, mainly fairly small – and some, such as the “erotic Christmas market” in St Pauli, with a particular theme

Christmas gift ideas for drinks lovers, from champagne to canned cocktails

Don’t get pulled in by silly gadgets: buy presents you’d be happy to receive yourselfThe Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.Alcohol is an unavoidable part of a festive spread (for more advice on which wines, beers and other drinks I like for each and every occasion, take a look at last week’s Christmas drinks guide), but, sometimes, a drink deserves a place under the tree as well as around it – especially if it’s an easy win for a drinks devotee for whom you need to buy a prezzie.The Guardian’s journalism is independent

Nine bring-a-plate ideas for Christmas drinks, barbecues and dinner parties this summer – recipes

Like nibblies, the concept of bringing a plate to a social event or a host’s home can be deeply confusing across cultures and generations. Are you carting canapes? Are you slinging salad? Are you delivering dessert? If we’ve learned anything from the tragedy of Romeo and Juliet, it’s that communication is key. So if you’re unsure about what your host expects, just ask.Below are nine summer-friendly recipes to suit various bring-a-plate scenarios: one-bite snacks that go with cocktails, salads to bring to barbecues and make-ahead dessert for dinner parties, arranged in each category from easiest to most ambitious.And if time is seriously short, you could throw together a pleasingly arranged antipasto-ish plate comprised of Guardian Australia’s top supermarket taste test products: crackers, feta, salami and pickles

Toffee Crisp and Blue Riband no longer called ‘chocolate’ after recipe change

Toffee Crisp and Blue Riband bars can no longer be called chocolate after Nestlé reformulated their recipes due to the increasing cost of ingredients.The Swiss conglomerate now describes the treats as being “encased in a smooth milk chocolate flavour coating”, rather than being covered in milk chocolate.In the UK, a product needs to have at least 20% cocoa solids and 20% milk solids in order to be described as milk chocolate, a level each product fell below after a higher amount of cheaper vegetable fat was used.Nestlé said the changes were necessary due to higher input costs but were “carefully developed and sensory tested”, adding there were no plans to alter the recipes of other chocolate products.A spokesperson for Nestlé said it had seen “significant increases in the cost of cocoa over the past years, making it much more expensive to manufacture our products

How to use a spent tea bag to make a boozy, fruity treat – recipe | Waste not

Save a used teabag to flavour dried fruit, then just add whisky for a boozy festive treatA jar of tea-soaked prunes with a cheeky splash of whisky is the gift you never knew you needed. Sticky, sweet and complex, these boozy treats are wonderful spooned over rice pudding, porridge, yoghurt, ice-cream or even panna cotta.Don’t waste a fresh tea bag, though – enjoy a cuppa first, then use the spent one to infuse the prunes overnight. Earl grey adds fragrant, citrus notes, builders’ tea gives a malty depth, lapsang souchong brings smokiness, and chamomile or rooibos offer softer, floral tones. It’s also worth experimenting with other dried fruits beyond prunes: apricots, figs and/or dates all work beautifully, too

Christmas food gifts: Gurdeep Loyal’s recipes for Mexican-spiced brittle and savoury pinwheels

Edible Christmas gifts are a great excuse to get experimental with global flavours. For spice lovers, this moreish Mexican brittle, which is inspired by salsa macha (a delicious chilli-crunch), is sweet, salty, smoky, crunchy and has hints of anise. Then, for savoury lovers, some cheesy pinwheel cookies enlivened with XO sauce. XO is a deeply umami condiment from Hong Kong made from dried seafood, salty ham, chilli and spices. Paired with tangy manchego, it adds a funky kick to these crumbly biscuits

Festive treats: Adriann Ramirez’s recipes for pumpkin loaf and gingerbread cookies

As a self-proclaimed America’s sweetheart (Julia Roberts isn’t using that title any more, is she?) who moved to the UK nearly 10 years ago, there are a few British traditions and customs that I have adopted, especially around Christmas time. However, there are also a few American ones that I hold on to staunchly: one is the pronunciation of “aluminum”, and another is the importance and beauty of a soft cookie. In both of these easy but delicious bakes to share, I use spice and heat to balance the usual sweetness with which the season can often overload us.Prep 5 min Chill 1 hr Cook 50 min, plus cooling Makes 10-12520g plain flour, plus extra for dusting 8g cocoa powder 8g ground ginger 3g ground cloves 5g ground cinnamon 3g aleppo pepper 4g coarsely ground black pepper 7g table salt 3g bicarbonate of soda 225g soft unsalted butter 175g caster sugar 1 large egg (60g) 77g treacle 77g pomegranate molasses 40g golden syrupFor the icing120g icing sugar 30g waterWhisk the first nine ingredients in a bowl and set aside. Either in the bowl of a stand mixer or using a handheld mixer, beat the butter for a few minutes until light and creamy

Nutcracker stocking fillers: Brian Levy’s recipe for sugar plum and coffee cookies | The sweet spot

These festive cookies are inspired by The Nutcracker’s Land of Sweets sequence, in which coffee and sugar plums are two of the flavours used to conjure a fanciful world of decadent diversion. Anything from a hard candy to a candied fruit can qualify as a “sugar plum” and, in the case of these cookies, the sugar plum is represented by the amarena cherry. Coffee’s bitterness balances the sweetness of the fruit and the rich butteriness of the dough, while the oat flour adds a dash of shortbread-like delicateness.Prep 10 min Chill 30 min+ Cook 35 min, plus cooling Makes 36185g room-temperature butter75g sugar2 tsp instant coffee/espresso powder1 tsp unsweetened cocoa powderFinely grated zest of ½ lemon½ tsp vanilla extract⅛ tsp fine salt 180g plain flour 85g oat flour 36 amarena cherries in syrupTurbinado sugar, or pearl sugar or icing sugar, for dippingIn the bowl of a stand mixer fitted with the paddle attachment, beat the butter, sugar, coffee powder, cocoa, lemon zest, vanilla and salt, at first on low and then medium speed, until creamy and fluffy.Add both flours and beat just until combined with no dry flour remaining; don’t overbeat because this can toughen the texture

How to make the perfect Dubai chocolate bar - recipe | Felicity Cloake's How to make the perfect …

If you’re asking what on earth chocolate has to do with a city with an average annual temperature of 28C, then you must have been stuck in the desert for the past three years. Because, since its creation in the UAE in 2022, apparently to satisfy chocolatier Sarah Hamouda’s pregnancy cravings for pistachio and pastry, this bar has taken over the world. Though food (among those with the luxury of choice, at least) has never been immune to the absurdities of fashion, the internet has supercharged and globalised the process, so much so that pistachios, which back in January were dubbed “the new pumpkin spice” by this very newspaper, are now everywhere, from Starbucks lattes to Aldi mince pies.The thing is, however, that whatever your thoughts on green, sugary, coffee-adjacent beverages, Hamouda’s Dubai chocolate developed for Fix Dessert Chocolatier has triumphed, because it really does taste as good as it looks: crunchy pastry, sweet chocolate and rich, slightly savoury nut butter are an incredibly satisfying combination, so a big bar of it is guaranteed to impress under the Christmas tree. Experience demands that I suggest you wrap it in a pet-proof box, however – emergency vet bills are no one’s idea of a great present