‘Unsustainable’ gaps in policing of franchise businesses must end, MPs say
The UK government needs to eradicate “unsustainable” gaps in the policing of franchise businesses after a series of scandals to hit the sector, a parliamentary committee has found.The conclusion forms part of the business and trade committee’s small business strategy report and follows a Guardian investigation in December which revealed claims that Adrian Howe, a former Vodafone employee who had agreed to become a franchisee in 2018, drowned after becoming convinced his deal with the multinational company would prove financially disastrous.The cross-party committee highlighted further allegations from Vodafone franchisees of an imbalance of power in their agreements, which prompted them to launch a high court claim in December 2024.Vodafone is contesting the claim.The MPs also raised separate allegations of “widespread sexual harassment and abuse in McDonald’s restaurants” and how franchisors could “fail to maintain adequate oversight of their franchisees’ employment practices”.
“Gaps in the oversight of franchise agreements allow serious employment abuses to go unaddressed and leave franchisees exposed to unfair contractual practices,” the committee concluded,“The absence of a dedicated regulatory framework or clear accountability for employment standards within franchise networks is no longer sustainable,”The committee added to calls for new legislation in the sector by recommending that the government consider the “introduction of a statutory code of conduct, alongside stronger independent enforcement mechanisms”,The wide-ranging report also identified “key pressures” on small businesses including “an average of 38 stores closed each day on Great Britain’s high streets”; evidence that UK small businesses were owed £112bn in unpaid invoices by the end of 2024; and estimates by the British Retail Consortium that the autumn budget added £7bn to the cumulative cost of policy and regulation affecting retail,The committee concluded that business rates should be replaced with a fairer system that “reflects a firm’s ability to pay”, while the late payment crisis could be ended by introducing “stronger, enforceable measures … including mandatory transparency to change behaviour across supply chains”.
The committee chair, Liam Byrne, said: “The evidence we heard during this inquiry was stark.Many small businesses are now operating under pressures comparable to those experienced during the Covid pandemic but this time without an emergency support framework in place.“SMEs [small and medium-sized enterprises] are facing late payments, rising energy costs, increasing crime, a complex tax system and barriers to growth that are compounding rather than easing.“These pressures are not isolated; together they pose a real risk to business viability, high streets and economic growth.“High streets do not die by accident.
If the government is serious about growth, it must set out a more coherent and ambitious plan for the businesses that make up so much of the UK economy.”A spokesperson for McDonald’s said franchisees were held to account on a regular basis through newly strengthened review processes.They said the company “reserves the right to take appropriate action, including the termination of a relationship, if a franchisee fails to deliver on our standards and expectations”.They added: “Franchisees have a contractual obligation to comply with all applicable laws and regulations and comply with all additional standards set by McDonald’s.”Vodafone has previously said that it did not push Howe into agreeing to take on any poorly performing stores.
Markets brace for US jobs data as White House acknowledges ICE effects; Heineken to cut 6,000 roles – business live
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.It’s non-farm payrolls day! The eagerly-awaited US jobs report is out today, and the White House has been trying to moderate expectations.Peter Navarro, senior counselor for trade and manufacturing to Donald Trump, was speaking on Fox News last night.We have to revise our expectations down significantly for what a monthly job number should look like. When we were letting in 2 million illegal aliens a day we had to produce 200,000 [jobs] a month for steady stay
Activist investor Elliott builds up stake in London Stock Exchange Group
The activist investor Elliott Management has built up a “significant” stake in the London Stock Exchange Group (LSEG) and is engaging with the company to drive its performance at a time of reduced listings and concerns about disruption from artificial intelligence.Elliott’s exact shareholding in LSEG was unclear; the Financial Times, which first reported the stake, added that the fund had been in talks with LSEG to help it work on improvement, encourage the group to consider a fresh share buyback and to try to narrow the gap with its rivals.Shares in LSEG climbed by as much as 6% in early trading on Wednesday before falling back slightly.LSEG is best known for operating the London Stock Exchange but in recent times has moved away from its traditional stock market activities and now derives almost half of its revenues from its data and analytics arm after its 2020 takeover of the financial data provider Refinitiv.The company’s share price has declined steadily over the past year, amid investor concerns that its income will be squeezed by AI disruption at a time of growing competition
The big AI job swap: why white-collar workers are ditching their careers
As AI job losses rise in the professional sector, many are switching to more traditional trades. But how do they feel about accepting lower pay – and, in some cases, giving up their vocation?California-based Jacqueline Bowman had been dead set on becoming a writer since she was a child. At 14 she got her first internship at her local newspaper, and later she studied journalism at university. Though she hadn’t been able to make a full-time living from her favourite pastime – fiction writing – post-university, she consistently got writing work (mostly content marketing, some journalism) and went freelance full-time when she was 26. Sure, content marketing wasn’t exactly the dream, but she was writing every day, and it was paying the bills – she was happy enough
Will the Gulf’s push for its own AI succeed?
Hello, and welcome to TechScape. Today in tech, we’re discussing the Persian Gulf countries making a play for sovereignty over their own artificial intelligence in response to an unstable United States. That, and US tech giants’ plans to spend more than $600bn this year alone.I spent most of last week in Doha at the Web Summit Qatar, the Gulf’s new version of the popular annual tech conference. One theme stood out among the speeches I watched and the conversations I had: sovereignty
Australia v Ireland: T20 World Cup cricket – live
5th over: Ireland 28-4 (Tucker 8, Delany 0) It’s a wicket maiden from Nathan Ellis. A masterclass of T20 bowling - slower balls, short balls, cutters and full and fast. He has 3-5 from his two overs!Another one to Ellis! He goes full pace this time and a bit of extra bounce sees Calitz get an under edge and chop onto the stumps. Ireland are in pieces.4th over: Ireland 27-3 (Tucker 8, Calitz 2) Tucker climbs into a length ball from Kuhnemann and deposits down the ground for SIX
Winter Olympics 2026: Franjo von Allmen takes Super G title for third gold of Games – live
Half-pipe: Liu Jiayu, who was in contention for making the final 12, had a horrible fall towards the end of her run, and had to be taken off the course on a stretcher.Another gold for the unstoppable von Allmen, who becomes the fourth skier to win three gold medals at one Winter Olympics, with silver for America’s Cochran-Siegle, and bronze for Marco Odermatt.A lovely story about von Allmen. After his dad died when he was 17, his village crowd-funded his ski-ing career. Now, on his Olympic debut, downhill, team-combined and Super G golds
People with obesity 70% more likely to be hospitalised by or die from infection, study finds
Government’s top welfare official to step down
Almost 70% of NHS areas in England offer only one cycle of IVF, data shows
A new town for the 21st century? Seven-village build to begin after 20-year journey
England’s poorest areas have 70% more vape shops and bookmakers than wealthier ones
Synthetic opioids may have caused hundreds more UK deaths than thought