UK business digest: BT overcharging, Church fund battle and IMF’s growth upgrade

BT’s landline billing scandal exposes regulatory gaps

For over a year, BT has charged customers for non-functional landlines, revealing systemic failures in telecoms oversight. One customer, quoted in The Guardian, reported paying £32.99 monthly for a Digital Voice line severed during an upgrade—despite repeated engineer visits and no resolution. The issue, affecting an unknown number of households, highlights two critical problems: BT’s internal accountability and Ofcom’s enforcement capacity.

The regulator’s 2023 rules require providers to offer analogue landlines as a backup, but compliance remains patchy. Ofcom’s latest report notes a 12% rise in billing complaints against BT, yet fines have not followed. Consumer groups argue the system prioritises industry self-regulation over customer protection, particularly for elderly or vulnerable users reliant on landlines. With Digital Voice rollout accelerating, the scandal may force Ofcom to adopt stricter penalties—or risk eroding trust in the UK’s telecoms infrastructure.

The £100m fund dividing the Church of England and its critics

A coordinated campaign is targeting the Church of England’s £100m slavery compensation fund, exposing tensions between historical accountability and modern political resistance. Spearheaded by theologian Nigel Biggar and amplified by figures like hedge fund manager Sir Paul Marshall, the opposition frames the fund as “virtue signalling” by elites. The Guardian traces a multi-pronged strategy: legal challenges, media placements in right-leaning outlets, and lobbying from wealthy financiers with ties to the Church’s historic investments.

The fund, announced in 2023, aims to address the Church’s 18th-century links to the slave trade through community projects and education. Critics argue the money would be better spent on contemporary poverty alleviation, while supporters counter that reparative justice requires direct engagement with historical harms. The debate mirrors broader UK discussions on colonial legacies, with the Church’s stance increasingly isolated amid a Conservative Party pivot toward anti-woke rhetoric. The outcome may set a precedent for how British institutions navigate reparations in an era of polarised identity politics.

IMF upgrades UK growth forecast—but warns of global limits

The International Monetary Fund’s latest outlook offers a rare boost for Chancellor Rachel Reeves, revising the UK’s 2026 growth forecast upward to 1.2% (from 1.0% in July). The upgrade, attributed to stronger-than-expected consumer spending and business investment, comes as the IMF praises the UK’s “plan to repair public finances”—a nod to Labour’s fiscal discipline. However, the report’s tone remains cautious: Silvana Tenreyro, the IMF’s economic counsellor, warned in Bangkok that “global resilience is reaching its limits,” citing geopolitical tensions and climate risks.

The UK’s relative stability contrasts with stagnation in Germany and France, but structural challenges persist. The IMF highlights persistent productivity gaps and warns that high interest rates could stifle recovery. For businesses, the forecast offers short-term relief—particularly in sectors like retail and construction—but the emphasis on “rebuilding” suggests a long road ahead. The chancellor’s challenge will be balancing growth with debt reduction, as Labour’s spending plans face scrutiny from markets already jittery over US Treasury volatility.

Charity shops drowning in fast fashion’s leftovers

The UK’s secondhand retail sector is buckling under the weight of unsellable donations, with charity shops reporting a crisis of quality and volume. At St Raphael’s Hospice in Cheam, staff describe “daily avalanches” of soiled clothing, bobbled jumpers, and fast fashion cast-offs—items that cost more to dispose of than they’re worth. The problem stems from a perfect storm: Vinted and Depop have siphoned off high-value donations, while ultra-fast fashion brands like Shein and Temu flood the market with low-quality garments.

The environmental toll is stark. Textile waste in the UK has risen 20% since 2020, with charity shops now acting as de facto recycling centres. Some, like the British Heart Foundation, have introduced “quality checks” at donation points, but smaller shops lack resources. The sector’s plea is simple: donate responsibly, or risk collapsing a vital revenue stream for social causes. With no government intervention on the horizon, the crisis underscores the unintended consequences of the UK’s shift toward circular economies—without the infrastructure to support it.