The water industry grapples with a £400m cost increase from national insurance hikes, while Deloitte sues partners over an alleged plot to defect to a rival firm.

Water companies are bracing for a £400m financial hit over the next five years due to a rise in employers’ National Insurance contributions. The increase comes as businesses, particularly in the water sector, continue to feel the impact of Rachel Reeves’s recent budget measures. This surge in National Insurance costs poses a significant challenge for the industry, potentially leading to higher bills for consumers as companies seek ways to mitigate the financial burden.

The rise in National Insurance contributions is a direct result of government fiscal policies that aim to boost public finances but are placing pressure on businesses already grappling with inflation and rising operational costs. Water companies, in particular, are expected to pass on some of the burden to their customers, potentially leading to higher bills.

At the same time, Deloitte, the global consulting firm, has found itself embroiled in a legal dispute involving three of its Asian partners. The firm is suing the executives for allegedly attempting to steal confidential client information as they planned to join a rival firm. Among those involved is one of Deloitte’s most senior Chinese executives, raising concerns about corporate integrity and the security of client data. The case highlights the challenges faced by major firms in protecting sensitive information and maintaining trust with their clients.

In other business news, BT has lost out on a significant £900m contract to upgrade police and ambulance radios, with IBM securing the deal. Meanwhile, global banks are reassessing their plans to relocate from London to mainland Europe, as political instability in the continent raises concerns.

Frasers Group is pushing for the appointment of Michael Murray to the board of Hugo Boss, despite his diminishing chances of receiving a £100m bonus, while corporate governance at JD Sports faces fresh scrutiny due to a director’s undisclosed financial interest in one of the retailer’s suppliers.

Keir Starmer, the leader of the UK’s Labour Party, is set to meet Saudi Arabia’s Crown Prince Mohammed bin Salman this week as part of a controversial trip aimed at attracting investment for his ambitious plans to overhaul British infrastructure. Starmer is also engaging with leaders of the United Arab Emirates’ sovereign wealth funds in a bid to secure funding for the Sizewell C nuclear project.

Meanwhile, Boohoo has increased security measures after allegations of surveillance on its senior executives, with reports of a coordinated campaign to track their movements. Gatwick Airport is also in the news, as the airport’s CEO criticises plans to increase its business rates by an estimated £200m, warning that it could deter investment.

Finally, Rachel Reeves’s National Wealth Fund is preparing to back a UK gigafactory as part of efforts to invest £28bn in green energy projects, aiming to boost the country’s renewable energy capabilities.