Hailing app will now act as agent rather than supplier outside London, avoiding VAT requirement

Uber has swerved paying millions of pounds to the UK exchequer under Rachel Reeves’s new “taxi tax” after the ride-hailing app rewrote contracts with its drivers.

The move came as rules announced in November’s budget took effect, which adjusted how VAT is payable on minicab fares and would have resulted in the whole Uber fare becoming subject to the 20% sales tax.

Uptick of more than 20% in 2025 was fuelled by share buybacks and helpful breezes in key constituent parts such as defence and mining

• FTSE 100 index enjoys its best year since 2009

• Business live – latest updates

It was a bumper year for stock markets globally and the surprise, perhaps, is that the FTSE 100 index more than kept up. The London market has sometimes been derided as lacking dynamism – the hedge fund manager Paul Marshall called it the “Jurassic Park” of exchanges a few years ago – but its main index enjoyed its best 12 months since 2009. The Footsie didn’t quite make it to the round number of 10,000 but still improved by 21.5%, slightly outperforming the S&P 500 index in the US.

How did that happen amid weakening UK growth, pre-budget chaos and general gloom? The short answer is that a stock market index reflects only its constituent parts. It is not a symbol of national economic virility. That is especially true of the internationally flavoured Footsie, whose members make about three-quarters of their combined revenues overseas.

It is time to roll out the red carpet in recognition of those that worked hard to keep customers at arm’s length

When the year began, I was a listening ear to Your Problems, my column for the Observer. Now I’m a Guardian consumer champion. Reinvention is always bracing. My old life was spent wrestling airlines, insurance firms and energy providers intent on plundering readers’ piggy banks. My new life? Wrestling airlines, insurance firms and energy providers intent on plundering readers’ piggy banks.

It is a comfort in this era of seismic shifts to know some things remain constant. You can bank on energy firms to chill your marrow with billing psychodramas and phantom accounts. Meanwhile, certainty is still the business model of insurers: many would say you can be certain that if you damage your car, or yourself, your provider will look for a reason to stall over your claim.

Over the holiday period, the Guardian leader column is looking ahead at the themes of 2026. Today we look at how the struggle to adapt to a dangerously warming world has become a test of global justice

The record-breaking 252mph winds of Hurricane Melissa that devastated Caribbean islands at the end of October were made five times more likely by the climate crisis. Scorching wildfire weather in Spain and Portugal during the summer was made 40 times more likely, while June’s heatwave in England was made 100 times more likely.

Attribution science has made one thing clear: global heating is behind today’s extreme weather. That greenhouse gas emissions warmed the planet was understood. What can now be shown is that this warming produces record heatwaves and more violent storms with increasing frequency.

Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here.

From retailers to banks, carmakers to councils, the bold pledges for carbon-neutral economies are being watered down or scrapped

Almost a year since Donald Trump returned to the White House with a rallying cry to the fossil fuel industry to “drill baby, drill”, a backlash against net zero appears to be gathering momentum.

More companies have retreated from, or watered down, their pledges to cut carbon emissions, instead prioritising shareholder returns over climate action.

While the tension between meritocracy and ‘jobs for mates’ is always there, the best boards are more than the sum of their parts

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Many years ago, I was encouraged to put my name forward to chair a significant government board. It seemed like a long shot to me, I wasn’t in anyone’s club, but my supporters were insistent. I agreed to let my name go into the mix.

It was a surprise then when the chair of the selection committee called a few weeks later and said with an apologetic tone: “Sorry Julianne, it’s just not your turn.”

Julianne Schultz is deputy chair of the Sydney writers’ festival board

Dawn Butler leads calls for humanitarian visas and fee waivers for vulnerable relatives of UK nationals affected by storm

British MPs have joined campaigners calling for more aid and humanitarian visas for Jamaicans to enter the UK after Hurricane Melissa demolished parts of the country, plunging hundreds of thousands of people into a humanitarian crisis.

The UK has pledged £7.5m emergency funds to Jamaica and other islands affected by the hurricane, but many argue that the country has a moral obligation to do more for former Caribbean colonies.

Chancellor axes two-child benefit cap and cuts energy bills paid for by mansion tax and freezing tax thresholds

• Analysis: ‘Tax-raising budget crash-lands on struggling economy’

• Budget 2025: key points at a glance

• Budget 2025: what it means for you

Rachel Reeves targeted Britain’s wealthiest households with a £26bn tax-raising budget to fund scrapping the two-child benefit policy and cutting energy bills.

On a chaotic day that involved key details of her budget accidentally being released early by the Office for Budget Responsibility (OBR), the chancellor defended the measures, saying she was “asking everyone to make a contribution to repair the public finances”, but that she wanted the wealthiest to pay the most.

Wealthy countries should triple funds for countries to tackle climate impacts, but deforestation and critical minerals blocked from final deal

The world edged a small step closer to the end of the fossil fuel era on Saturday, but not by nearly enough to stave off the ravages of climate breakdown.

Countries meeting in Brazil for two weeks could manage only a voluntary agreement to begin discussions on a roadmap to an eventual phase-out of fossil fuels, and they achieved this incremental progress only in the teeth of implacable opposition from oil-producing countries.

Three representatives of developing countries speak candidly about meetings behind closed doors in Belém

In the negotiating rooms at the Cop30 climate conference, representatives from vulnerable countries work to get the best deal they can. Here, three of them reveal what happens behind closed doors.

President of talks urges ministers and high-ranking officials to find common ground as conference nears its end

• Cop30 live – latest updates

Climate crisis talks look likely to stretch well into the weekend in Brazil, with countries still far apart on the crucial issues of phasing out fossil fuels and cutting carbon.

The Cop30 president, André Corrêa do Lago, urged ministers and high-ranking officials from more than 190 countries to find common ground: “We need to preserve this regime [of the Paris climate agreement] with the spirit of cooperation, not in the spirit of who is going to win or is willing to lose’” he said. “Because we know if we don’t strengthen this, everyone will lose.”