Primark owner ABF could split fashion business from food division
The owner of Primark is considering splitting the fashion retailer from its food division, which contains Twinings and Kingsmill, amid a “challenging external backdrop”,Associated British Foods (ABF) said it was considering splitting off Primark from its food arm, which includes sugar production and grocery brands, “with a view to maximising long-term value”,The group has launched a strategic review, carried out with the help of the advisory firm Rothschild & Co, with the backing of its largest shareholder, the Weston family’s Wittington Investments,The company said the family, which owns 59% of ABF, remained “committed to maintaining majority ownership of both businesses”,The family sat in sixth position on the 2025 Sunday Times Rich List, with its wealth valued at nearly £18bn.
ABF, which is valued at £16bn as a group, said no decision had been taken and the board would provide and update “as soon as practicable”.Earlier this year, the Primark chief executive, Paul Marchant, resigned after an allegation made by a woman about his behaviour towards her in a social situation.The group also announced a fall in sales and profits on Tuesday as its sugar and agriculture businesses faced higher costs and it closed its Vivergo bioethanol plant.ABF said pre-tax profits had slumped by more than a quarter to £1.4bn as revenues slipped by 3% to £19.
4bn in the year to 13 September.Its sugar business fell £205m into the red as its revenues slid 12% to £2bn after the decision to close Vivergo as well as higher costs and lower prices for its sugar.Sales at Primark rose 1% to £9.5bn.A 3% fall in sales at established UK and Irish stores was offset by 20% growth in the US and 2% growth in mainland Europe, where Primark is opening new stores.
The company said sales were hit by “cautious consumer sentiment and the lack of a seasonal purchasing catalyst during mild autumn weather [last year]”.It added that shopping activity within elements of Primark’s customer base was particularly weak as the spending power of those on low incomes was hit by higher energy and food bills.Primark has more than 470 stores across 18 countries, including 187 shops in the UK.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionABF closed Vivergo after the UK government signed a duty free deal on the product with the US.It is also finalising the merger of its bakeries business, which includes the Kingsmill brand, with rival Hovis.
George Weston, the chief executive of ABF, said: “This was a year of intense strategic and operational activity within ABF.Most of our businesses delivered robust financial results, while navigating a challenging external backdrop.“Looking ahead, we are confident in the group outlook for 2026 although much depends on the consumer environment, which is particularly unpredictable at the moment.”He said he fully backed the review, adding that ABF’s food business was “less well understood” than Primark but had “a highly attractive portfolio, deep global expertise and much potential”.“Primark has an incredibly strong international brand, a powerful customer proposition, and substantial growth opportunities,” he said.
HMRC likely to have breached privacy laws in stopping child benefit – experts
Ministers may have breached privacy laws when they suspended the child benefit of thousands of families on the basis of flawed Home Office information, legal experts have said.At the same time, the UK’s data watchdog, the Information Commissioner’s Office, has contacted the national tax authority, HMRC, over the issues raised.Pressure on the government to reveal the reason incomplete Home Office travel data was used by HMRC as part of a benefit crackdown has mounted as the Liberal Democrat spokesperson for work and pensions, Steve Darling, said what had happened was “unacceptable”.“After the carers allowance repayments scandal, this news raises fresh concerns that things are seriously wrong within our welfare system, with people paying the price through no fault of their own.“Ministers must come clean on how exactly this error was allowed to happen in the first place, support affected families, and ensure that action will be taken to stop such mistakes from ever happening again
Zarah Sultana sets sights on replacing Labour and gaining power
The MP Zarah Sultana has said she hopes her new political party will ultimately replace Labour as she revealed she was committed to winning power.Sultana left the Labour party in July to form the new group, operating under the temporary name Your Party.Asked by Nick Robinson on his BBC podcast Political Thinking if she aimed with her new party to replace Labour, she said: “That’s the vision. We are the party of the left, and we have to build. And we’re starting from very humble beginnings
Tory patience wears thin as Badenoch’s critics count down to May elections
At an opulent speakeasy-style event at the Raffles hotel on Whitehall this week, the great and the good of what is left of the Conservative party marked the Spectator’s parliamentarian of the year awards.With the magazine’s editorial line still just about backing the Tories, despite the party facing an existential crisis from Reform UK, it was unsurprising that much of the gossip at the champagne-fuelled event was about whether Kemi Badenoch’s job was at risk.James Cleverly, who unsuccessfully ran against her for the leadership, couldn’t resist a dig from the stage at the naked ambition of his shadow cabinet colleague, Robert Jenrick – who is Badenoch’s biggest threat.“Am I after her job? Am I going to stick the knife between her shoulder blades and steal the crown? No, of course I’m not,” the veteran Tory cabinet minister told the laughing audience as he opened the awards ceremony.“You know that I’m not
Rachel Reeves considers 20% tax on assets of people deciding to leave UK
Rich people quitting the UK could be required to pay a 20% tax on their business assets as part of plans reportedly being considered by the chancellor, Rachel Reeves.The Treasury has drawn up plans for a “settling-up charge” on assets; a move that would bring the UK into line with most other G7 nations and raise a predicted £2bn for the public coffers, according to the Times.While expat status does not provide an exemption from 20% capital gains tax on the sale of UK property and land valued at £6,000 or more, it does on the sale of some other assets, such as shares in many companies.Under the new plans, the 20% charge would be levied on the value of these assets when exiting the country.A government source said the settling-up charge was one of several tax options being modelled by the Treasury before the budget – but stressed that no decisions had been taken
Ex-Tory member sues party over suspension for criticising Israel
A former Conservative member, whose grandfather was the archbishop of Jerusalem, is suing the party after he was suspended for making critical remarks about the state of Israel.Bruce MacInnes was told by Tory party officials that his “repeated allegation that Israel is committing genocide in Palestine” constituted “allegedly antisemitic”, “discriminatory” and “insensitive and highly offensive” language, which resulted in his suspension from the party last year.MacInnes, who says he did not initially know about the disciplinary proceedings despite the party claiming they had emailed him, is bringing legal action against the party for £30,000 in the high court for breach of contract and discrimination based on belief.The row has raised questions over freedom of speech within the party and has drawn criticism from former foreign minister Sir Alan Duncan who described the party’s treatment of MacInnes as “McCarthysim built on ignorance”.A member since 2018, MacInnes had often shared his views on the political situation in the Middle East on a WhatsApp group with other members
Keir Starmer keeps Trumps’ silver necklace gift – for a price
Keir Starmer has paid to keep a personalised silver necklace given to him by Donald and Melania Trump, transparency records show.The necklace was the only gift Starmer chose to keep after he hosted the US president for a historic second state visit in September.The Trumps also gave the prime minister a golf club and a set of silver cufflinks, both personalised, but these were retained by the Cabinet Office. A pair of cowboy boots, given to Starmer’s wife, Victoria, by the Trumps has also been held by the department.Under government rules, ministers cannot keep official gifts worth more than £140 unless they pay the difference between £140 and the gift’s value
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