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Chancellor Rachel Reeves is actively exploring ways to draw private‑sector capital into the UK government’s ambitious new‑town agenda, aiming to speed up the delivery of large‑scale housing and community projects across England.Private‑Sector Partnerships Target New Town DevelopmentThe Treasury has opened talks with some of Britain’s biggest banks and investment funds to set up public‑private partnerships (PPP) for the construction of new towns. A research paper commissioned from the British Infrastructure Taskforce will outline how extensive private contracts—covering homes, amenities and related infrastructure—could underpin the seven sites announced by ministers, including Thamesmead, Tempsford, and regeneration schemes in Leeds and Manchester.Financial Scale and Funding Mechanisms Highlighted£725 billion earmarked for UK‑wide infrastructure over the next decade, with £16 billion allocated to new homes.PPP model positioned as a successor to the criticised PFI era, but distinct from it.Recent projects such as the £4.6 billion Thames Tideway tunnel and the Sizewell C nuclear power station were financed via a regulated asset base (RAB) approach.The Highways (Financing) Bill expands RAB to road projects, signalling broader acceptance of private‑finance models.The £10 billion Lower Thames Crossing still seeks more than £6 billion of private backing.Political and Market Reactions Shape the Road AheadLabour MPs on the left have voiced opposition, recalling past difficulties with private‑funded public projects, especially after the 2018 collapse of Carillion. Private investors remain cautious, given the legacy of PFI criticism and the need for clear, long‑term revenue streams under RAB arrangements. Planning restrictions, rising material costs and skilled‑labour shortages further complicate progress.Outlook for PPP‑Driven Town Building and InfrastructureWhile the Treasury insists it is not reviving the old PFI model, its new accounting rules allow the financial returns of private partners to be spread over a project’s lifespan, freeing up public cash for additional initiatives. If private capital can be secured, the new‑town programme could become a catalyst for regional economic growth, but its success will hinge on overcoming political resistance, securing reliable revenue mechanisms and addressing supply‑chain constraints.

The Lead The lawyer representing Meta whistleblower Sarah Wynn-Williams has revealed he too is prevented from promoting her memoir under a legal ruling, after her silent appearance at the Hay festival. The Legal Restriction Details Ravi Naik said the terms of an arbitration proceeding meant neither Wynn-Williams nor her "agents" could promote her bestselling book Careless People or say anything disparaging about the company. Naik spoke after Wynn-Williams was forced to sit in silence during an appearance at Hay on Sunday owing to the terms of the ruling. Naik said an interim arbitration ruling meant she risked being forced to pay "punitive" damages if he promoted the book. The Industry Impact Analysis "Never in my life have I faced a circumstance where my client cannot speak about her truth and I as a lawyer cannot speak on behalf of my client," Naik told BBC Radio's Today programme. Meta has claimed the book, which made a series of claims about the social media company's behavior and culture, is false and defamatory. It also contained allegations of sexual harassment that were denied by the company. Meta says Wynn-Williams was fired for "poor performance and toxic behavior". The Financial Consequences The Labour MP Louse Haigh claimed last year that Wynn-Williams was being "pushed to financial ruin" by Meta's legal stance. In testimony before a Senate judiciary subcommittee last year, Wynn-Williams alleged Meta worked "hand in glove" with China over censorship tools – something the company has denied. The Republican senator Josh Hawley claimed at the hearing that Wynn-Williams had been threatened with a fine of $50,000 (£37,000) every time she mentioned Facebook in public. The Future Outlook Meta had said in writing that they considered Wynn-Williams's attendance at the Hay talk would be a "breach" of the interim arbitration award, according to Naik, and they would seek sanctions if she promoted the book or criticised Meta in her appearance. Naik said Meta would probably seek to uphold the arbitration award, handed down in California, through the British courts. Meta declined to comment directly on Wynn-William's Hay appearance. It has previously described Careless People as a "mix of out-of-date and previously reported claims about the company and false accusations about our executives".

The LeadWhen Keir Starmer won a landslide Labour majority promising to pursue five governing "missions", the high-profile leftwing economist Mariana Mazzucato was credited as an inspiration. Two years on, her bracing new book helps shed light on why Labour in power has struggled to project the sense of direction that "mission-led government", as Mazzucato calls it, requires.A New Framework for Economic PolicySynthesising and extending her earlier work, here she proposes "a new economics of collective action around the common good". From this perspective, the economy is not a concatenation of rapacious independent forces, to be contained and offset by public policy, but a project – or rather a series of projects – with direction and purpose.The Five Principles of Common Good EconomicsThe "compass" in the title is really a set of five principles, all of which Mazzucato says such an economy should have: purpose and "directionality"; co-creation by citizens; collective learning; reward sharing; and accountability. Each of these principles is set out in detail. Co-creation implies grassroots participation in designing and redesigning government programmes, for example – because, "when people help define a problem and develop and implement solutions, they see them as theirs rather than something imposed on them".Reward Sharing and PredistributionReward sharing means ensuring the creators or rightful owners of economic value stand to benefit: from Indigenous people whose homes lie near raw material deposits, to social media users whose data fuels Big Tech's profits. That implies radical tax reform – including greater use of wealth taxes – and the robust use of conditions in public contracts, to make sure workers and taxpayers get their fair share: an approach she calls "predistribution".Critique of Labour's Economic ApproachAccording to Mazzucato's definition, Labour's attempt at mission-led government badly missed the mark. Its first and overriding goal – "kickstart economic growth" – cannot be a "mission" at all, because it lacks the necessary purpose. What, in other words, is that economic growth meant to be for? While her scope in this ambitious book is global, the analysis also dismantles Starmer's claim to be pursuing national "missions", by setting out just how radical – and radically different – that would look in practice.Practical Examples and Global Applications"The seeds of transformation are everywhere," she says, citing inspiring projects that range from delivering healthy and sustainable school meals in Sweden to the EU's mission to support cities to become climate-neutral, to the international Nagoya Protocol on sharing the benefits of genetic resources and traditional knowledge. Echoes of Mazzucato's mindset are detectable in some Labour policies – from using the threat of legislation to cajole pension funds to invest more in UK assets, to writing conditions on youth training into clean energy contracts.The Future of Economic DirectionEconomies work best, she believes, when they pursue grand collective goals – developing and distributing a vaccine for a pandemic; or confronting the climate emergency (or, though she doesn't lean on the example here, tooling up for a new and more frightening geopolitical era). We should ask, she says, "not which market failure do we want to be fixed, but what direction do we want the economy to sail in".

UK house prices fell 0.6% in May, marking the first monthly decline this year as rising interest rates—spurred by the war in Iran—weakened buyer demand. The average home price stood at £278,024, still 1.7% higher than a year ago but far below the 3% annual growth recorded in April.May’s Price Drop Signals a Market Cool‑DownNationwide’s chief economist Robert Gardner described the slowdown as “expected” given the uncertainty from Middle‑East conflict, higher energy costs, and climbing market interest rates.Key Numbers Highlight the ShiftMonth‑on‑month price change: -0.6%Year‑on‑year price level: +1.7% (still above last year)Two‑year fixed mortgage rate (end‑May): 5.68%Five‑year fixed mortgage rate (end‑May): 5.63%Bank of England base rate (April vote): 3.75%Why the Housing Market Is Feeling the PinchHigher borrowing costs are eroding household spending power. Tom Bill of Knight Frank noted the slowdown arrives “precisely when momentum would normally be building”. Savills revised its outlook, now expecting a 2% fall in average house prices this year, reversing a prior forecast of a 2% rise.Despite the rise in rates, Gardner said the impact on affordability has been “modest” because swap rates, which underpin fixed‑rate pricing, remain below 2023 peaks.Outlook: A Potential Short‑Lived Softening?Analysts such as Martin Beck of WPI Strategy warn that even if rates ease, the market stays vulnerable: mortgage repayments still consume a large share of incomes, and a weakening labour market could pose a greater threat than interest rates alone.Bank of England Governor Andrew Bailey signalled no rush to raise rates further, keeping the policy rate at 3.75% while monitoring the war’s trajectory and weak economic growth. The consensus is that any near‑term dip may be temporary if energy prices stabilise, but the sector remains exposed to ongoing geopolitical and financial pressures.

Customer Candidate Accuses Nationwide of Undermining Democratic ProcessJames Sherwin‑Smith, a former Vocalink executive, has launched a campaign to become the first customer elected to Nationwide’s board since 2002. He claims the lender is “unfair” and is deliberately skewing the election by steering members toward a default vote against him.Quick‑Vote Default Set to Block Sherwin‑Smith’s CandidacyNationwide announced it will present all members with a “quick‑vote” option that automatically includes a vote against Sherwin‑Smith at the July annual meeting. The board’s chair, Kevin Parry, stated the candidate lacks the necessary experience, justifying the recommendation.Nationwide holds 17 million members and assets exceeding £377 bn.The quick‑vote system is offered to every member as an easy way to follow board recommendations.Voting Statistics Reveal Scale of Quick‑Vote InfluenceLast year, 87 % of roughly 670,000 votes cast used the quick‑vote system, demonstrating its dominant role in member decisions. This high adoption rate suggests Sherwin‑Smith faces a steep uphill battle to inform members about the alternative voting path.Implications for Mutual Governance and Member RepresentationThe dispute has drawn criticism from Labour MP Navendu Mishra, who warned of “emerging governance issues” across the building‑society sector. If the quick‑vote default is perceived as a tool to entrench incumbent directors, it could erode confidence in member‑owned institutions and prompt regulatory scrutiny.Future Outlook for Member‑Nominated Directors at NationwideSherwin‑Smith’s campaign argues that board diversity and direct member representation are essential for accountability. The outcome of this election will signal whether Nationwide—and potentially other mutuals—will open their boards to external, member‑nominated candidates or maintain the status quo of internally‑selected directors.

The Growing Need for Worker Representation in AI ImplementationWorkers urgently need more bargaining power over the way AI is adopted in the workplace to ensure the benefits are fairly shared, according to a TUC-backed report from a leading thinktank. The Institute for Public Policy Research (IPPR) is calling for a package of measures to boost employees' influence at what it calls a "pivotal moment in the history of work".Survey Reveals Mixed Impacts of AI on WorkersThe IPPR report cites survey data showing that while 20% of workers say AI is making their working life better, 21% say it has made it worse – and 4% believe they have already lost a job because of the technology. The thinktank distinguishes between three potential impacts of the technology: augmentation, where it complements human labour; degradation, where it undermines the experience of work; and displacement, where it replaces workers altogether.Call for Statutory Consultation and Worker SupportThe report's recommendations include a statutory duty on employers to consult their workers over the adoption of AI and a "worker support levy," which could be funded by companies or workers themselves. The idea of this levy would be to create a portable "wallet" of benefits that workers could take with them from one job to another – such as union membership, insurance or training – with the broad aim of increasing their bargaining power.Historical Context for Technological TransitionsPaul Nowak, the general secretary of the TUC who has written a foreword to the report, emphasized that "great technological transitions only result in meaningful social progress when they are shaped actively and decisively." He drew parallels to the Industrial Revolution, which saw 50 years of wage stagnation while profits soared, suggesting that "it took the difficult birth of the labour movement to tip technological gains towards workers' interests and broader social wellbeing."Government Stance on AI AdoptionThe government has made clear it is enthusiastic about the adoption of AI in the UK, with Rachel Reeves highlighting it as one of three drivers of stronger economic growth. In her Mais lecture, the chancellor called AI "the defining technology of our era", saying she was determined to "maximise the value added … to the wider economy and the public sector through accelerated adoption."Future Outlook for Worker-AI RelationsAs Labour has already introduced a historic upgrade to workers' rights since coming to power in July 2024, the debate around AI's role in the workplace is likely to intensify. The IPPR's recommendations suggest a growing recognition that technological advancement must be balanced with worker protections and representation to ensure equitable outcomes in the rapidly evolving landscape of work.

A shock government‑backed report this week warned of the danger of a “lost generation” of young people in Britain, as the number of 16‑ to 24‑year‑olds not in education, employment or training (NEETs) rose to more than 1 million, roughly 13.5% of the cohort.Rising NEET Numbers Spark Alarm in the UKOfficial UK statistics show that 13.5% of young people are not in work or college, climbing to 15.8% among 18‑ to 24‑year‑olds – nearly one in six. The report, authored by former Labour cabinet minister Alan Milburn, warns that without decisive action the country could see a sustained “lost generation”.Comparative NEET Rates: UK vs NetherlandsUK NEET rate (16‑24): 13.5% overall, 15.8% for 18‑24 year olds.Netherlands NEET rate (15‑29, adjusted): 5.3% last year, consistently below 5% for over a decade.Potential impact: Matching the Dutch rate could move 600,000 more 18‑ to 24‑year‑olds into learning or earning.Why Dutch Vocational Pathways Keep Youth EngagedThe Dutch system centres on three pillars: strong vocational secondary education (MBO), a welfare safety net that prioritises engagement and rehabilitation, and financial incentives for employers. Around 70% of Dutch 16‑ to 19‑year‑olds in upper secondary education attend an MBO school, and 35% of under‑25s later study at technical or professional universities. By contrast, only 22% of UK 18‑ to 21‑year‑olds were on vocational courses in 2024.Technical education is treated as “the foundation of the economy”, with work‑based learning embedded in curricula – many students combine four days of school with one day of on‑the‑job training.Policy Levers Behind the Dutch Low NEET RateThe 2004 Work and Social Assistance Act devolved welfare programmes to municipalities, creating personalised, localised support that addresses mental health and long‑term illness. Local councils provide tailored engagement programmes, subsidised employment, and specialised training, preventing young people on incapacity benefits from falling through the cracks.Employers receive fiscal incentives, such as payroll‑tax cuts and direct subsidies that cover up to 70% of wages for chronically unemployed youth, as highlighted by the Youth Futures Foundation. Rotterdam’s city council, led by Tim Versnel, funds up to 70% of wages for young chronically unemployed people and offers holistic support covering mental resilience, substance‑use treatment, and financial literacy.What the UK Could Adopt to Reverse the TrendTo emulate the Dutch success, the UK might consider:Expanding vocational pathways and integrating work‑based learning into secondary education.Devolving youth‑welfare services to local authorities for more personalised support.Introducing targeted fiscal incentives for businesses hiring young workers, including wage subsidies and tax relief.Adopting a whole‑of‑life approach that combines education, mental‑health services, and financial literacy for chronically unemployed youth.While cultural and structural differences mean a direct copy is impossible, the Dutch experience offers a roadmap for reducing Britain’s NEET rate and revitalising its youth labour market.

The Election Outcome Malta’s Labour Party (PL) has won an unprecedented fourth term in a victory for Prime Minister Robert Abela, according to preliminary results of the election held on Saturday. The party secured a comfortable parliamentary majority, although it appeared to be narrower than in 2022, when it took 55 percent of all ballots cast. Abela's Victory Speech “This is a victory of all the people based on the programme we presented for all the people,” Abela told reporters, saying results showed his party had “won a strong mandate”. He called for national unity, stating, “Let us maintain the spirit of national unity and move the country forward together.” Election Details Election held on Saturday with a turnout of 87.4 percent, slightly up from the last general election in 2022. Abela, 48, called the snap election a year early to shield Malta from geopolitical crises. The economy grew 4 percent last year, but there are concerns about the impact of the Middle East conflict on tourism and inflation. Opposition's Response Charles Bonello, general secretary of the opposition Nationalist Party (PN), conceded the election but noted that his party had managed to slash back Labour’s majority. The Road Ahead Abela has led Malta since 2020. His government will continue to focus on economic stability and addressing challenges such as corruption, which remains a significant issue in the country.

The Call for Tax Cuts Wes Streeting has called for national insurance tax cuts for businesses, and for the government to drill for oil and gas in the North Sea. The former health secretary and Labour leadership candidate told the Sunday Times there should be a “targeted reduction” of employers’ national insurance contribution as a way to “actively incentivise” hiring, particularly of young people. The Impact of National Insurance Rate Increase In 2024, the rate of national insurance paid by employers was increased from 13.8% on each employee’s salary to 15%. The starting threshold it applied to was lowered from £9,100 to £5,000. The measure aimed to raise £25bn a year, but businesses said it disincentivised hiring lower-paid and part-time staff. Youth Unemployment Concerns A report this week by the former cabinet minister Alan Milburn said a lack of hospitality jobs was contributing to high youth unemployment in Britain. It pointed to a halving of vacancies in the hospitality industry over the past four years alone. Analysis shows Britain has the third-highest rate of 16- to 24-year-olds who are not earning or learning among rich European countries. The Government's Response Pat McFadden, the work and pensions secretary, suggested he disagreed with this view. Speaking on Sky News on Sunday morning, he defended the government’s record, saying that businesses already did not have to pay employers’ national insurance for workers under 21. The Future of North Sea Drilling There has been a debate within Labour about whether to grant drilling consents for the giant oil and gas fields Rosebank and Jackdaw. Though there was a commitment not to give out any more licences for fossil fuels in Labour’s manifesto, there is a loophole that could be exploited; Rosebank and Jackdaw were given exploration licences by the previous Conservative government. They just need consent to drill. Ed Miliband's Decision Ed Miliband, the energy secretary, is due to make a decision on these oil and gas fields in coming weeks. He, along with the North Sea Transition Authority, have to decide whether the drilling would be consistent with the UK’s climate commitments.