Here are the business stories making the headlines this morning.
Ineos Energy looks elsewhere as Britain ‘puts pain’ on oil sector
The boss of Ineos Energy has said it will prioritise expansion in the United States and Denmark rather than in Britain, while contrasting the UK’s uncertain fiscal regime with greater stability offered by policymakers overseas.
David Bucknall’s comments come days before a general election in which energy policy has been a key battleground.
“If we’re looking to expand the footprint of our business, the other two regions we operate, Denmark and the US, are much easier to invest in at the moment. And that’s where our focus is,” the Ineos Energy chief executive said.
Ineos Energy was established in 2020. It oversees the energy-related operations of Ineos, the petrochemicals group founded by Sir Jim Ratcliffe, the billionaire. Its activities are focused on onshore and offshore oil and gas assets in Britain and Denmark.
UK economy ‘will grow faster than forecast’
The economy is poised to grow more rapidly than initial forecasts, indicating that Sir Keir Starmer will inherit more stable economic conditions should Labour win the general election on Thursday, as expected.
GDP growth is set to rise to 0.5% this year from 0.1% last year, according to new forecasts from KPMG, the consultancy. The 2024 growth rate was revised up from 0.3% in the firm’s previous projection.
The economy is predicted to expand by 0.9% in 2025, helped by a series of cuts to interest rates by the Bank of England as inflation eases. KPMG said the Bank’s base rate could fall towards 3% next year from its present 5.25%, a 16-year high.
KPMG said that the economy was “turning a corner” after sputtering since the pandemic began in 2020. Severe inflation, rising interest rates and a leap in the cost of living caused by higher global energy prices after Russia’s invasion of Ukraine have constrained economic growth.
Energy prices fall but relief may be temporary
A drop in domestic gas and electricity prices has now taken effect, but costs are expected to rise again in October.
Regulator Ofgem's new price cap
for England, Wales and Scotland came into force on Monday, meaning a typical household's energy bill will fall by £122 a year.
That brings down the bill for a household using a typical amount of gas and electricity to £1,568 a year, the lowest for two years.
But forecasters expect it to rise again in the run-up to winter, more than reversing the latest drop.
UK planning laws deter investment, says drugs giant
The boss of the world's most valuable pharmaceutical company has told the BBC that the UK's planning system puts companies off investing in the country.
Dave Ricks, chief executive of the obesity drug manufacturer Eli Lilly, said he had considered building a factory in the UK in the last decade, but chose another country instead.
He warned current planning processes were an "impediment" to building factories at speed, unlike in the US and Ireland.
"Mostly what they do is they pre-reserve land, they promise to cut through the red tape and layers of government," Mr Ricks said.