M&S to revamp Oxford Street store

📍Top line: Marks & Spencer has secured permission to demolish and rebuild its flagship Oxford Street store, ending an 18-month standoff. Deputy PM Angela Rayner approved the £16bn plan for a 10-storey complex featuring a smaller M&S store, offices, and sustainability measures. The company, which had threatened to abandon the site, hailed the decision as crucial for revitalising the area.

Key Points:

• Development Details: A 10-storey retail and office space will replace three existing buildings, supporting 2,000 jobs.

• Previous Rejection: In 2022, Michael Gove blocked the plan, citing environmental concerns and risks to heritage landmarks.

• High Court Intervention: A March ruling deemed Gove’s decision unlawful, reopening the case.

• CEO's Reaction: Stuart Machin slammed the delays as “political posturing” but called the approval a victory for rejuvenating Oxford Street.

• Labour Praise and Criticism: M&S commended the Labour government’s action but warned that rising employer National Insurance costs could increase prices.

Electric car sales hit 25% of market

📍Top line: More than one in four new cars sold in the UK last month were fully electric, with battery-electric vehicles (BEVs) accounting for 25.1% of total market sales in November. 

Key Points:

• Electric Vehicles Take Market Lead: BEVs accounted for 25.1% of November car sales, totaling 38,500 units—a 58% year-on-year increase. 

• Decline in Petrol and Diesel: Petrol cars made up 46% of sales, while diesel sales plunged to just 6%. Hybrids and plug-in hybrids combined accounted for 48% of the market.

• Zero-Emission Vehicle (ZEV) Mandate: The ZEV mandate requires 22% of new car sales to be electric or face penalties. Some manufacturers, including Ford and Stellantis, are pushing for a relaxation of the mandate.

• Market Context: Despite rising EV sales, the overall car market contracted by 2% year-on-year. BEV sales for the year-to-date represent 19% of total market sales, with 338,000 units sold, an 18% rise from 2023.

Elsewhere in business:

🍺 Non-alcoholic beer is booming, with a record 140 million pints expected to be sold in UK pubs this year—a 12% rise. Now stocked by 86% of pubs, non-alcoholic brews cater to a growing trend, especially among younger drinkers. The British Beer and Pub Association has called for fairer regulations to boost UK brewers, as pubs embrace inclusivity and new habits.

🛍️ Debenhams has reported a pre-tax profit of £3.27 million for the year ending 29 February 2024, a significant turnaround from the £721,000 loss reported the previous year. This positive shift is attributed to the successful implementation of its marketplace model, which allows third-party brands to sell directly through Debenhams' platform. Boohoo Group acquired Debenhams in 2021 and relaunched it as an online marketplace, focusing on fashion, beauty, and home products.

Keir Starmer aims to relaunch premiership

📍 Top line: Prime Minister Sir Keir Starmer has pledged to avoid new tax rises before the next election, barring “unforeseen” events, while defending tough decisions made early in his premiership. Speaking after announcing six key pledges to improve living standards, build 1.5 million homes, and end hospital backlogs, Sir Keir promised voters they would feel the positive impact by the end of the parliamentary term.

Key points:

• Tax Plans: Starmer insisted no further tax hikes are planned, though unforeseen events might change this. His October budget raised £70 billion, including higher National Insurance and capital gains taxes.

• Key Promises: Sir Keir’s milestones include improving living standards, cutting hospital backlogs, boosting early childhood education, and reducing energy bills.

• Criticism: Conservative leader Kemi Badenoch called the pledges a “reset,” citing Labour’s lack of readiness for government, while Liberal Democrat leader Sir Ed Davey flagged the absence of clear healthcare plans.

• Migration Debate: Starmer rejected hard caps on migration, saying past attempts failed, focusing instead on reducing overall levels.

Elsewhere in the economy:

🏠 Slough in Berkshire has been identified as the least happy place to live in the UK, according to Rightmove's annual "Happy at Home" survey. The survey, which gathered responses from over 35,000 residents across Britain, assessed factors such as pride in one's area, sense of belonging, community spirit, and access to essential services. Following Slough, Bradford in West Yorkshire ranked 219th. Other areas with low happiness scores include several London boroughs: Barking and Dagenham, Croydon, Brent, Newham, and Bexley.

💷 Cash transactions rose for the second consecutive year, now making up 20% of retail purchases. Shoppers turned to cash to better manage budgets, with average spend per purchase dropping to £22.03. Charities warned MPs that rejecting cash excludes vulnerable groups, including abuse survivors and older adults, for whom access to physical money remains essential for safety, independence, and day-to-day life.

Cybersecurity firm Crowdstrike has opened applications to its 2025 Data Science Internship. Successful applicants will apply software engineering, mathematical and scientific research skills to help deliver cutting-edge security technology. The 3-month scheme is remote and is open to graduates who will have completed a Bachelor of Science degree by summer 2025. Apply now here.

OpenAI confirms new £155 monthly subscription

📍Top line: OpenAI has unveiled a new $200-per-month subscription plan for its chatbot platform, ChatGPT Pro, targeting power users in fields like maths, programming, and writing. This high-end plan provides unlimited access to OpenAI’s advanced models, including the latest version of its o1 “reasoning” model.

Key points:

• ChatGPT Pro costs $200/month, offering unlimited access to o1 Pro mode, designed for the toughest questions in coding, data science, and more.

• o1 model reduces errors by 34%, is faster and more capable than its previous version, and can now analyse image uploads.

• Pro users get access to a “more powerful” o1, with answers taking longer but more reliable results in programming and case law analysis.

• Free Grants: OpenAI is awarding ChatGPT Pro subscriptions to 10 medical researchers at leading institutions.

• Big Price Hike: OpenAI plans future price hikes, with expectations of a $44/month cost for ChatGPT Plus by 2029.

• Business Focus: The company is under pressure to boost revenue, with ChatGPT alone costing up to $700,000/day to operate.

Elsewhere in tech:

🗣️ Elon Musk is becoming a "political puppet master" in the United States, according to Nick Clegg, former UK deputy prime minister and current president for global affairs at Meta. Clegg remarked on Musk's "outsized role" in influencing the US election and shaping the incoming Trump administration. He also reiterated his criticism of X, describing it as a "one-man, hyper-partisan, ideological hobbyhorse."

📶 The UK’s competition watchdog has approved the £16.5bn merger of Vodafone and Three, forming the country’s largest mobile network with 27 million customers. Despite concerns over higher prices, the CMA said legally binding commitments, including billions in 5G upgrades and tariff caps, addressed competition issues. The merger reduces major UK mobile networks from four to three.

💨 Stormy weather looms as the Met Office has issued warnings for wind, rain, and flooding this weekend, with gusts up to 80mph threatening power cuts and travel chaos. Heavy rain could drench north-west England and Wales, where some areas still bear Storm Bert’s scars. A fast jet stream is fuelling the chaos, with up to 25mm of rain expected, and more on higher ground.

🇫🇷 French President Emmanuel Macron announced plans to appoint a new prime minister "in the coming days" following Michel Barnier's resignation after a no-confidence vote in parliament. In a televised address on yesterday, Macron vowed to remain in office "fully, until the end of the mandate" in 2027, rejecting opposition calls for his resignation.

🥊 Irish MMA star Conor McGregor must pay €1.5m in legal costs after losing a civil rape case in Dublin. This follows €250,000 in damages awarded last month to Nikita Hand, who accused McGregor of raping her at a 2018 Christmas party. A judge also ruled Hand owes nothing to McGregor’s co-defendant, James Lawrence, who was cleared of wrongdoing.