Latest news with #CompetitionAndMarketsAuthority
Times
a day ago
- Business
- Times
CMA to review wrong turns on road and rail building projects
The UK's competition regulator has opened an investigation into Whitehall's delivery of rail and road infrastructure. The inquiry by the Competition and Markets Authority (CMA) comes just a day after a damning report into the failed delivery of the HS2 high-speed rail line between London and Birmingham which is hugely over-budget, hopelessly late and which ministers have admitted has made Britain the laughing stock of infrastructure investment. It also follows the government's renationalisation of the railways, which it is planning to complete incrementally over the next couple of years. • What happened to HS2? The project that made Britain a laughing stock The CMA said its inquiry would focus 'on persistent issues around costs and delivery of road and railway infrastructure across the country', especially in the light of Sir Keir Starmer and Rachel Reeves's new ten-year infrastructure strategy to help grow the economy. 'There's no question that reliable, high-quality infrastructure is critical in accelerating economic growth,' said Sarah Cardell, chief executive of the CMA. 'To achieve this, public authorities and the civil engineering sector must be able to work together to deliver projects on time, within budget and to high standards. 'This review is a crucial step in identifying barriers holding back the sector — supporting the drive to get Britain building and ensuring every penny spent is delivering value for taxpayers.' Identifying the long-standing friction and dysfunctional procurement engagement between Whitehall and its agencies, and private sector contractors, the CMA inquiry states: 'The market study will examine whether there are opportunities to improve how the public sector and industry work together, for example through improvements to public procurement, so more cost-effective infrastructure can be built in support of the government's growth mission.' • Pumping money into infrastructure may not keep Labour in power The CMA said it would make recommendations to government but does not have the power to intervene in the market directly. Civil engineering is reckoned to be worth £23 billion annually to the UK economy. The National Infrastructure Commission has estimated that public and private sector investment will need to increase by up to 50 per cent over the next decade to deliver more complex infrastructure. Road and railway projects account for up to 75 per cent of government spending on economic infrastructure such as transportation and energy. The Royal Institution of Chartered Surveyors indicated the sector has previously suffered from a lack of what its chief executive Justin Young called a 'clear, joined-up infrastructure strategy that incorporates long-term thinking and vision'. Young said he believes 'the country is on a considerably clearer path and represents a significant shift in how the government approaches infrastructure and industrial capacity', but warned of 'skills and labour shortages [that] stifle construction projects and investment in skills for new professionals'.
Yahoo
6 days ago
- Business
- Yahoo
As Rachel Reeves looks to renew Britain, here's a FTSE 100 stock to consider
The FTSE 100's up just over 7% since last year's UK General Election. And the latest update to the chancellor's spending plans could be good news for a number of businesses. The government's set to allocate £39bn for affordable housing as part of its plan to build 1.5m homes in the next decade. And there are some obvious potential beneficiaries of this investment. The most obvious way to invest in the growth of UK housing is by buying shares in a builder – and there are plenty to choose from. But I'm staying away from this industry for the time being. Several FTSE 100 UK housebuilders are being investigated by the Competition and Markets Authority for potential anticompetitive practices. And this is set to continue until at least August. The investigation's been extended a couple of times and seems to be dragging on quite a bit. That's frustrating from my perspective, because there's at least one stock in this industry I'd like to buy. I've no way of knowing what the outcome of the investigation will be though, and this is a big risk. It seems to be going under the radar of most investors, but I don't think it can simply be ignored. An alternative strategy involves looking at companies that supply the things that go inside houses. And the name that stands out to me at the moment is Howden Joinery Group (LSE:HWDN). The firm supplies most things that go into kitchens – such as sinks, worktops, and cupboards – as well as joinery products and hardware. Unlike its competitors, it focuses on trade sales. This is a big advantage because it allows Howden to operate out of warehouses rather than retail stores. This helps keep down costs and it also means customers generally know what they need. As a result, the FTSE 100 company can charge less than its competitors while still maintaining wider margins. Over the long term, I think that's an extremely powerful combination for any business. Howden does supply products for new-build houses, but this isn't its largest market. The real attraction of the government's plans – as I see it – is the potential for increased long-term demand. Over time, more houses should mean more things that need replacing and upgrading. And the firm's strong competitive position should mean it benefits from this over time. In terms of valuation multiples, the stock isn't hugely expensive at the moment. That might reflect some of the key risks, which include inflation and changes in building safety standards. Both of these are worth taking seriously and either could create issues for the FTSE 100 company. But I also think the government's housebuilding plans might be very good for shareholders. As I see it, Howden Joinery Group's distinctive business model gives it in a big advantage over other competitors. And the stock trades at what I see as a reasonable valuation at the moment. With the UK government looking to invest in housebuilding in the near future, the market for kitchen and now bathroom products could be set to grow. I think this means the stock is worth a closer look. The post As Rachel Reeves looks to renew Britain, here's a FTSE 100 stock to consider appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Stephen Wright has no position in any of the shares mentioned. The Motley Fool UK has recommended Howden Joinery Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Amazon to ban fake reviewers and punish sellers that cheat system
Amazon has vowed to ban users who post fake reviews and punish companies that cheat its rating system after a UK crackdown on the practice. The retail giant has told regulators it will block businesses from selling on its website if they are found to have boosted their star ratings via bogus reviews. It will also take action against users who post the false reviews. Amazon said it would enhance its existing systems for tackling the problem, including instances where reviews of highly rated products are hijacked and added to separate items. Amazon has been investing heavily in clamping down on fake star ratings, using expert investigators to spot bogus reviews. It is also using artificial intelligence (AI) to track how many reviews an account is posting and their sign-in activity to identify potential fraudsters. The company said it blocked more than 275m fake reviews last year. The tech giant told the Competition and Markets Authority (CMA) that it was committed to tackling fake reviews. Sarah Cardell, the chief executive of the regulator, said it meant 'people can make decisions with greater confidence – knowing that those who seek to pull the wool over their eyes will be swiftly dealt with'. She said the CMA would consider further action if shoppers did not see real change. Around 90pc of consumers use reviews to make decisions on what to buy online. Official figures have previously suggested that at least one in 10 of all product reviews on websites used by third-party sellers are likely to be fake. A large proportion are written by bots. However, in some instances sellers 'merge' listings for new products with older and more popular items in order to acquire their review history. In 2019, a study by Which? found that reviews for a soap dispenser and a phone screen cover were listed under a pair of headphones. In a report by the Department for Business and Trade from 2023, officials said 'the presence of well-written 'subtle' fake reviews leads to a statistically significant increase in the proportion of consumers buying the product with these fake reviews'. The Amazon pledges come months after new laws came into force that make online retailers liable for false reviews on their websites. Since April, companies have been legally required to take steps to prevent and remove the publication of fake reviews. The work is being overseen by the CMA, whose interim chairman, Doug Gurr, is the former UK boss of Amazon. He was appointed last year amid a push by ministers to ensure regulators 'tear down the barriers hindering business and refocus their efforts on promoting growth'. Researchers have warned that the rise of AI threatens to lead to more fake reviews. Amazon claims that more than 99pc of all products in its store contain only authentic reviews. A spokesman for Amazon said: 'Ever since we introduced reviews in 1995 we have continued to innovate and work constructively with regulators around the world, including the CMA, to help customers share feedback that is relevant, helpful and trustworthy, in both Amazon's store and across the industry.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Bloomberg
06-06-2025
- Business
- Bloomberg
Amazon Vows to Tackle Fake Reviews After UK's CMA Probe
Inc. has vowed to improve its systems to tackle fake reviews on its online marketplace and act against sellers who 'hijack' good reviews following four years of the UK antitrust watchdog's investigation. The Competition and Markets Authority said Amazon gave undertakings for to make it easier to report fake reviews and sanction businesses that use good reviews for one product for an entirely different product. Alphabet Inc. 's Google gave similar commitments in January.
Telegraph
06-06-2025
- Business
- Telegraph
Amazon to ban fake reviewers and punish sellers that cheat system
Amazon has vowed to ban users who post fake reviews and punish companies that cheat its rating system after a UK crackdown on the practice. The retail giant has told regulators it will block businesses from selling on its website if they are found to have boosted their star ratings via bogus reviews. It will also take action against users who post the false reviews. Amazon said it would enhance its existing systems for tackling the problem, including instances where reviews of highly rated products are hijacked and added to separate items. Amazon has been investing heavily in clamping down on fake star ratings, using expert investigators to spot bogus reviews. It is also using artificial intelligence (AI) to track how many reviews an account is posting and their sign-in activity to identify potential fraudsters. The company said it blocked more than 275m fake reviews last year. The tech giant told the Competition and Markets Authority (CMA) that it was committed to tackling fake reviews. Sarah Cardell, the chief executive of the regulator, said it meant 'people can make decisions with greater confidence – knowing that those who seek to pull the wool over their eyes will be swiftly dealt with'. She said the CMA would consider further action if shoppers did not see real change. Around 90pc of consumers use reviews to make decisions on what to buy online. Official figures have previously suggested that at least one in 10 of all product reviews on websites used by third-party sellers are likely to be fake. A large proportion are written by bots. However, in some instances sellers 'merge' listings for new products with older and more popular items in order to acquire their review history. In 2019, a study by Which? found that reviews for a soap dispenser and a phone screen cover were listed under a pair of headphones. In a report by the Department for Business and Trade from 2023, officials said 'the presence of well-written 'subtle' fake reviews leads to a statistically significant increase in the proportion of consumers buying the product with these fake reviews'. The Amazon pledges come months after new laws came into force that make online retailers liable for false reviews on their websites. Since April, companies have been legally required to take steps to prevent and remove the publication of fake reviews. The work is being overseen by the CMA, whose interim chairman, Doug Gurr, is the former UK boss of Amazon. He was appointed last year amid a push by ministers to ensure regulators 'tear down the barriers hindering business and refocus their efforts on promoting growth'. Researchers have warned that the rise of AI threatens to lead to more fake reviews. Amazon claims that more than 99pc of all products in its store contain only authentic reviews. A spokesman for Amazon said: 'Ever since we introduced reviews in 1995 we have continued to innovate and work constructively with regulators around the world, including the CMA, to help customers share feedback that is relevant, helpful and trustworthy, in both Amazon's store and across the industry.'
