UK services sector job cuts continue as companies automate, PMI survey shows

Companies in the UK’s services sector cut jobs last month, as they turned to “automation” rather than hiring new staff, a closely watched survey showed.The monthly purchasing managers’ index showed employment numbers fell more sharply in January compared with December, continuing a trend that started in October 2024.The PMI survey, which is considered to be one of the most reliable indicators of how a sector is performing, said this was the “longest period of job shedding” in the UK services sector in 16 years, with firms also choosing not to replace voluntary leavers.The survey compiled by S&P Global said anecdotal evidence suggested some companies were turning to automation to make up for the staffing shortfall and increase productivity, alongside squeezed margins and fragile market conditions also affecting hiring decisions.Tim Moore, the economics indices director at S&P Global Market Intelligence, said: “There were again gloomy signals for the UK labour market outlook as staff hiring decreased at a steeper pace in January as firms looked to offset rising payroll costs

Striking Starbucks workers urge customers to delete coffee chain’s app

Striking Starbucks baristas are calling on customers of the world’s largest coffee chain to delete its popular mobile app in solidarity with their demands for a first union contract.Starbucks Workers United, which has been coordinating a strike for almost three months, is vowing to press ahead.“We baristas are still fighting for a fair contract, and this fight is active and ongoing,” said KC Ihekwaba, a barista at Starbucks in Lafayette, Colorado, on a solidarity union call earlier this week. “Our fire for change is still burning. Our spirits still strong

Wegovy and Ozempic maker forecasts sharp drop in revenue for 2026

The maker of Wegovy and Ozempic, Novo Nordisk, has predicted a sharp drop in revenues this year owing to what its boss described as a “painful” push by Donald Trump to lower US weight-loss drug prices, rising competition, and the loss of important patent protections.Denmark’s Novo, once the poster-child for the growth in weight-loss treatments, said sales this year were likely to fall between 5% and 13%, ending years of double-digit gains, despite the promising launch of its new Wegovy pill in the US. Its share price plummeted 17% on Wednesday, erasing all gains so far this year. In the past year the stock has lost nearly 50% of its value.Last year, Novo’s total sales grew by 10% to 309bn Danish kroner (£36

Santander takes fresh swipe at City watchdog as its car loan scandal bill tops £460m

Santander has accused the City watchdog of overreach after its bill for the UK motor finance scandal reached £461m, as the Spanish lender signed a $12bn takeover of an American bank.The bank – which announced the surprise takeover of US-based Webster Bank on Tuesday night – took a fresh swipe at the Financial Conduct Authority (FCA) on Wednesday over a compensation scheme for the scandal.Santander UK had been concerned over what it claimed was a lack of clarity around the regulator’s plans for an £11bn redress scheme, which was meant to draw a line under the ballooning motor finance scandal.Santander said on Wednesday it had put aside a further £183m to compensate drivers who were overcharged via unfair commission arrangements between lenders and car dealers.However, the bank said this was based on the FCA’s proposals for payouts, which it criticised for going too far

Zero net migration would shrink UK economy by 3.6%, says thinktank

The UK economy would be 3.6% smaller by 2040 if net migration fell to zero, forcing the government to raise taxes to combat a much bigger budget deficit, a thinktank has predicted.The National Institute of Economic and Social Research (NIESR) said falling birthrates in the UK and a sharp decrease in net migration last year had led it to consider what would happen if this trend continued to the end of the decade.In this scenario the UK population would stop growing at about 70 million in 2030. The latest official figures showed the UK population was 69

Women in tech and finance at higher risk from AI job losses, report says

Women working in tech and financial services are at greater risk of losing their jobs to increased use of AI and automation than their male peers, according to a report that found experienced females were also being sidelined as a result of “rigid hiring processes”.“Mid-career” women – with at least five years’ experience – are being overlooked for digital roles in the tech and financial and professional services sectors, where they are traditionally underrepresented, according to the report by the City of London Corporation.The governing body that runs the capital’s Square Mile found female applicants were discriminated against by rigid, and sometimes automated, screening of their CVs, which did not take into account career gaps related to caring for children or relatives, or only narrowly considered their professional experience.To reverse the trend, the corporation is calling on employers to focus on re-skilling female workers not currently in technical roles, particularly those in clerical positions most at risk of being displaced by automation.It is estimated that about 119,000 clerical roles in tech and the financial and professional service sectors, predominantly carried out by women, will be displaced by automation over the next decade

Elon Musk is taking SpaceX’s minority shareholders for a ride | Nils Pratley

To Elon Musk’s fanclub, there is nothing to see apart from more evidence of the great man’s visionary genius. SpaceX, the rocket firm, is buying xAI, the artificial intelligence developer, and the combination of these two Musk-controlled entities is being valued at $1.25tn (£910bn). Feel the positive vibes ahead of a stock market debut due in June! The most valuable private company in history! The largest ever transaction!Or, as Musk described it, he is creating “the most ambitious, vertically integrated innovation engine on (and off) Earth, with AI, rockets, space-based internet, direct-to-mobile device communications and the world’s foremost real-time information and free-speech platform”.SpaceX’s minority shareholders may have a less stellar view

FTSE 100 falls back from record high amid AI worries; gold heads for best day since 2008 – as it happened

And finally, the FTSE 100 has closed down 27 points or 0.26% at 10,314, away from the record high hit this morning.Although miners and precious metal producers rallied, as the gold and silver price jumped, the index was dragged down by Relx (-14.3%) and the London Stock Exchange Group (-12.8%), as investors reacted to US artificial intelligence firm Anthropic unveileing a tool for companies’ in-house lawyers

What are the odds? The RBA has raised interest rates – for no real reason other than to meet the desires of speculators | Greg Jericho

Has there been an interest rate rise more desired by some economists and commentators despite no real reason, than the one pushed for on Tuesday? Alas, the Reserve Bank listened to the noise and felt compelled to raise the cash rate to 3.85%, but one wonders if they listened more to the noise of the commentariat than the data.In Tuesday’s announcement, the RBA monetary policy board barely changed anything from its December statement.In December the board thought: “While inflation has fallen substantially since its peak in 2022, it has picked up more recently”. Now it says: “While inflation has fallen substantially since its peak in 2022, it picked up materially in the second half of 2025

UK shoppers buy more fruit and yoghurt in healthy start to 2026

Britons started 2026 by buying more healthy food such as fruit and yoghurt as they attempted to hit new year health goals, while grocery price inflation eased to the lowest level since April, research has shown.Annual grocery inflation fell back to 4% in the four weeks to 25 January from 4.7% in December, offering some relief for shoppers, according to a monthly snapshot of the grocery sector from the research company Worldpanel by Numerator.Consumers turned to healthy eating, it said, with sales volumes of fresh fruit and dried pulses up 6% year on year, while fresh fish was up 5%, poultry 3% and chilled yoghurt 4%. Cottage cheese sales jumped by 50% and it was bought by 2

Barnsley rebranded UK’s first ‘tech town’ as US giants join AI push

In 2002 Barnsley toyed with a redesign as a Tuscan hill village as it sought out a brighter post-industrial future. In 2021 it adopted the airily vague slogan “the place of possibilities”. Now it is trying a different image: Britain’s first “tech town”.The technology secretary, Liz Kendall, has anointed the South Yorkshire community as a trailblazer for “how AI can improve everyday life” in the UK.In the latest move in Labour’s drive to inject AI into Britain’s bloodstream, the government has announced four US tech companies – Microsoft, Google, Cisco and Adobe – have agreed to help as the council pushes to apply AI to local schools, hospitals, GPs and businesses in Barnsley, an area of South Yorkshire which has struggled with unemployment and deprivation since the coal pits closed

US jobs report delayed again amid government shutdown

The US’s closely watched jobs report will once again be delayed, the Bureau of Labor Statistics (BLS) announced on Monday, amid a government shutdown.The January 2026 jobs report, originally scheduled to be released on Friday, will be rescheduled when federal funding resumes. Data collection for the report has been completed, but the shutdown has forced a delay to releasing the report, which will provide crucial jobs data on the US labor market following the weakest year for job growth since 2020, with the addition of only 584,000 jobs in 2025 compared with 2 million in 2024.“The Employment Situation release for January 2026 will not be released as scheduled on Friday, February 6, 2026. The release will be rescheduled upon the resumption of government funding,” Emily Liddel, associate commissioner of the BLS, said in a statement

Miso mystery: red, white or yellow – how does each paste change your dish? | Kitchen aide

What’s the difference between white and red miso, and which should I use for what? Why do some recipes not specify which miso to use? Ben, by email“I think what recipe writers assume – and I’m sure I’ve written recipes like this – is that either way, you’re not going to get a miso that’s very extreme,” says Tim Anderson, whose latest book, JapanEasy Kitchen: Simple Recipes Using Japanese Pantry Ingredients, is out in April. As Ben points out, the two broadest categories are red and white, and in a lot of situations “you can use one or other to your taste without it having a massive effect on the outcome of the dish”.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more

The pie and mash crisis: can the original fast food be saved?

There used to be hundreds of pie and mash shops in London. Now there are barely more than 30. Can social media attention and a push for protected status ensure their survival?Outside it’s raining so hard that the sandwich board sign for BJ’s pie and mash (“All pies are made on the premises”) is folded up inside. The pavement along Barking Road in Plaistow is a blur through the front windows and deserted, and there are only two customers in the shop. Another sign – this one on the counter – says “CASH ONLY”

Sami Tamimi’s recipes for spiced bulgur balls with pomegranate, with a herby fennel side salad

I have always dreamed of a return to the golden age of Arab trade, when spices, fruits and ideas voyaged across deserts and seas, creating extraordinary food cultures through exchange and curiosity. I’ve imagined bringing new flavours home, letting them transform the kitchen – but with all the madness in today’s world, that dream must stay a dream, for now. So, these recipes become my journey, a way to reconnect with that spirit and taste the magic of the Arab golden age today.This dish originates in Latakia, a port in Syria. Kbeibat bulgur in Arabic translates to “small kibbeh”, and refers to a range of dishes that are popular across the Arab world and beyond

Rukmini Iyer’s quick and easy recipe for mushroom and artichoke puff-pastry quiche | Quick and easy

No time to make shortcrust? Bought puff pastry makes an instant (and decadent) alternative. Yes, I know you can buy ready-rolled shortcrust, but I wouldn’t: it’s trash. If this column didn’t have a 30-minute time constraint, I’d blitz 200g plain flour and 100g cold cubed salted butter to sand, then add one egg yolk and a tablespoon of cold water, then blitz for a few seconds, and no longer, until it just comes together. I’m unorthodox, so I then tip the pastry straight into a pie dish, quickly pat it into place and freeze for 15 minutes. Blind bake for 10 minutes at 180C(160C fan)/350F/gas 4, before removing the paper and baking beans and tipping in the filling – it’s really not very much work

How to make mulligatawny – recipe | Felicity Cloake's Masterclass

I have yet to see anyone eating mulligatawny in an Indian restaurant – perhaps unsurprisingly, given that it’s a product of the British occupation, and the very name has an off-putting Victorian feel, which is a shame, because it’s aged a lot better than imperialism. Based, historians think, on the Madrassi broth molo tunny, it’s a lovely, gently spiced winter soup that’s well worth rediscovering.Prep 15 min Cook 50 min Serves 4-61 onion 1 carrot 1 parsnip 1 celery stick 2 tbsp ghee, or oil (eg, coconut)4 garlic cloves 1 knob fresh ginger ½ tsp cayenne pepper or mild chilli powder 2½ tsp madras curry powder (see step 5) 1½ litres good-quality chicken stock, or vegetable stock1 chicken thigh, bone in. skin on (optional; see step 1)150g masoor dal (AKA split orange lentils)4 tbsp flaked almonds (optional; see step 7)100ml hot milk, or water1 tbsp lemon juice Salt 1-2 tbsp fruity chutney (eg, mango; optional)1 small bunch fresh coriander, roughly chopped, to servePlain yoghurt, to serveThough often made with chicken, mulligatawny was also traditionally prepared with mutton or goat, and works well with lamb, too; any fairly tender cut of either will be fine (or, indeed, you could just add some cooked meat at the end). For a lighter dish, leave it out; to make it plant-based, just swap the fat and stock as suggested below

Guinness Open Gate Brewery, London WC2: ‘Absolute “will-this-do?” nonsense’ – restaurant review | Grace Dent on restaurants

The new Guinness Open Gate Brewery, with its tours, gift shop and dining options, has appeared in Covent Garden, slap-bang in the centre of London’s most nosebleedingly expensive real estate.This multi-multi-million-pound paean to “the black stuff”, where Guinness disciples can make pilgrimage, has been on the capital’s horizon for what seems like an era. The project has been tantalisingly dangled as an opening for some years, then delayed umpteen times, because, quite understandably, erecting a purpose-built, gargantuan, multi-floor Willy Wonka’s Booze Factory in the West End of London for a corporate behemoth is no easy feat. Imagine the layers of global, bureaucratic, cross-platform multi-media team Zooms that had to happen to hone the ultimate Guinness experience. So many Is to dot and Ts to cross, particularly, because food is a central part of the venture, with two restaurants on site – The Porter’s Table and Gilroy’s Loft – where exec chef Pip Lacey is serving non-challenging yet hearty menus, as well as a courtyard pie stall by Calum Franklin

The rise of ‘beef days’: why even meat lovers are cutting back

“I love beef,” says Vlad Luca, 25. But unlike most other self-proclaimed steak lovers, Vlad eats it only four times a year, on designated “beef days”.The “beef days” phenomenon has been popularised by the brothers John and Hank Green, known collectively as vlogbrothers on YouTube. John, 48, is better known for his YA fiction, including The Fault in Our Stars, while Hank, 45, is a self-described science communicator and entrepreneur.They have been making videos on their shared channel since 2007, and have more than 4 million subscribers

New type of Bordeaux wine to gain official status as result of climate pressure

Bordeaux’s wine industry has historically adapted to consumer habits. In the 1970s the region leaned towards white, but by the 2000s was famed for powerful oak-aged reds.Now it’s turning to a much older form of red with a name familiar to anglophones: claret. With origins in the 12th century, when it was first shipped to Britain, claret was soon our favoured wine, an unofficial byword for bordeaux red, which in recent decades has become increasingly full-bodied.The Bordeaux protected designation of origin has now formally validated bordeaux claret, linking it to the existing Bordeaux appellation

Benjamina Ebuehi’s recipe for citrus and almond cake | The sweet spot

Anything bright and zingy is particularly welcome in January, even more so when it’s in the form of cake. I always have an odd end of marzipan after the festive season, and this is a great way to use it up and bring that cosy almond flavour. The marzipan gets blitzed into the butter for a plush-textured loaf cake, and comes together in minutes thanks to simply putting everything in a food processor.Prep 10 min Cook 1 hr 10 min, plus cooling Serves 8-10200g unsalted butter, softened125g marzipan 150g caster sugar Finely grated zest and juice of 1 orange, plus 2 tbsp extra juice for the icingFinely grated zest and juice of 1 lemon3 large eggs 220g plain flour 50g ground almonds ¼ tsp fine sea salt 2 tsp baking powder 50g plain yoghurtTo finish100g icing sugar 40g toasted flaked almondsHeat the oven to 180C (160C fan)/350F/gas 4, and grease and line a 2lb loaf tin with baking paper.Put the butter and marzipan in a food processor and blitz until smooth

‘It’s still a family favourite’: your heirloom recipes – and the stories behind them

A few years ago, I bought my mother a notebook for her recipes. It was a weighty, leather-bound affair that could act as a vault for all the vivid stews, slow-cooked beans and many other family specialities – the secrets of which existed only in her head. Although the gift has basically been a failure (bar a lengthy WhatsApp message detailing her complex jollof rice methodology, she still has an allergy to writing down cooking techniques or quantities), I think the impulse behind it is sound and highly relatable. Family recipes are a form of time travel. An act of cultural preservation that connects us deeply to people we may not have met and places we may not have visited

Rachel Roddy’s puntarelle, radicchio, celery, apple and cheese salad recipe

Like many, I remember Charlie Hicks from Veg Talk, a weekly show that ran on Radio 4 from 1998-2005. The show, according to Sheila Dillon, came into being after her interview with Charlie, a fourth-generation fruit and veg supplier at Covent Garden market, for an episode of The Food Programme exploring where chefs bought their produce. Sitting at the kitchen table with her husband the following evening, Sheila recounted her day and Charlie’s enormous knowledge, enthusiasm and ability to communicate both. A few days after that, a similar conversation took place with her colleagues at Radio 4, which resulted in Veg Talk – what’s in and what’s out in the world of fresh produce. As well as Charlie’s market report, each episode included a feature called “vegetable of the week” and the participation of studio guests – Angela Hartnett, Alastair Little, Rose Gray, Darina Allen and Mitch Tonks, to name just a few – and took calls from listeners

How to convert kitchen scraps into an infused oil – recipe

All those odds and ends of chillies, garlic skins and rind can be used to flavour oil for dunking, dipping and marinatingToday’s recipe began life as a way to use up garlic skins and herby leftovers, all of which contain a surprising amount of flavour, but it has evolved over time. Infused oil has countless uses – drizzle it over carpaccio, pasta or salad, use it to marinate meat, fish and vegetables, or simply as a dip for chunks of sourdough – and some of my favourites include lemon rind, garlic skin and rosemary; star anise, cacao and orange rind; and makrut lime leaf, lemongrass husk and coriander stems, which I found especially delicious drizzled over some noodles and pak choi. Freshly infused oils of this sort aren’t suitable for long storage, however, so use them up within a day to two.As I look around my kitchen, I’ve got a two-year-old jar of remarkably tasty chillies gathering dust, a bowl of clementines (I think of citrus rinds as harbingers of incredible flavour, rich in essential oils and highly aromatic terpenes) and a small jar of long pepper, a pungent, complex spice that’s been sitting on my kitchen shelf for years without a purpose. When put together, however, and left to bubble gently on the hob, they fill my kitchen with a wildly aromatic and exotic aroma