UK News
BT warns of smartphone price rises due to chip shortages from AI boom | BT
BT has said the cost of smartphones could rise as technology companies buy up semiconductor chips because of the boom in artificial intelligence, putting pressure on supply chains.
The telecoms company’s chief executive, Allison Kirkby, said she was anticipating shortages as tech firms bought large quantities of memory chips to power the datacentres relied on by AI.
Kirkby said: “It’s common knowledge that the chip market is under demand by the rise in AI. We are working very proactively with our suppliers.”
Price increases would mainly hit smartphone handsets, she said, but could also affect the cost of routers. Memory chips are essential for almost every modern item of electronics and are also used in other important components such as graphics cards.
Kirkby added: “I’m sure the industry with its partners will do the best it can to minimise the impact on pricing in the marketplace. But with chip shortages everywhere, that will put pressure on pricing in certain parts of the market, not just in our sector, going forward.”
She said she had not yet seen price increases from premium handset manufacturers, but expected companies such as Apple to pass higher costs on to customers. “I’m sure Apple will do the best to minimise any supply chain weaknesses,” Kirkby added.
The latest model of Apple’s smartphone, the iPhone 17, costs from £799, or £1,099 for the 17 Pro model, while Google’s Pixel 10 pro retails for about £1,199.
The largest manufacturers of laptops and phones, including Microsoft, Samsung and Dell, have already begun to put up prices in response to the chip shortages and have pulled cheaper models from the market.
Sony has also hiked the price of its PlayStation 5 consoles, including a $100 (£75) increase in the US, while Nintendo has confirmed a price rise for its Switch 2.
Updated US prices, which came into effect on 2 April, put the standard PS5 at $649.99, up from $549.99. The price of Nintendo’s Switch 2 will rise in September from $449.99 to $499.99 in the US, and €469.99 (£406.61) to €499.99 in most European countries.
A global investment spree in AI has led to a huge expansion of server farms, enormous banks of computers filled with high-end memory chips. These requirements are not only consuming the world’s current supply of chips, but also production capacity for the coming years, creating shortages and driving up the cost of electronics.
BT plans to cut costs by a further £700m over the next four years and reported flat full-year earnings and falling revenues.
The company increased its target for cost savings to £3.7bn and said it was extending its restructuring programme by a year to the end of March 2030.
BT lost 203,000 broadband customers in the first three months of this year, taking the total number of losses in the year to the end of March to 825,000, slightly lower than its forecast of 850,000. Kirkby added that the “churn” of mobile phone customers was at an all-time low.
The telecoms company reported a 4% fall in underlying revenues to £19.7bn in the year to the end of March, while pre-tax profits rose 8% to £1.4bn.
UK News
Tony Blair tells Starmer and rivals: abandon net zero and move closer to Trump | Labour
Tony Blair has accused Keir Starmer, Andy Burnham and Wes Streeting of putting Labour’s future at risk by abandoning the centre ground, warning that the party’s “almost infinite capacity for self-delusion” means it is likely to lose the next election.
In a scathing 5,700-word attack on the prime minister and his would-be successors published on Tuesday night, Blair argued for the government to crack down on welfare spending, abandon restrictions on oil and gas and smooth relations with Donald Trump.
His essay, a highly unusual intervention for a past Labour prime minister, is likely to draw a furious response from across the party, where Blair’s legacy remains highly contentious. On Tuesday, one senior source accused him of abandoning social democratic values to embrace an agenda that had “no answers”.
But Blair also suggested it was a mistake for others in the party to seek to remove Starmer as prime minister, saying: “The Labour party is playing with fire; or, more accurately with its future, and that of the country. Whether there is a leadership change or not is irrelevant if it doesn’t start with a policy debate.
“Trying to force the prime minister out, before we know what policy direction we’re bringing in, is not a serious way of conducting ourselves.”
Blair attacked Burnham and his fellow leadership contender Wes Streeting – who has often been cast as a Blairite but rejects the label – for ideas on tax and spending that he said had been rejected by serious governments. He said it was a “perennial delusion” that the party should move left while losing seats to the right, saying it was “dangerous to do it in government”.
While Labour is likely to lose many more seats to Reform than the Greens in a general election, most analysts of the recent local elections suggest that it loses four times as many votes to the Greens, splitting the left-leaning vote.
Blair also criticised Starmer’s approach to the US war with Iran, despite most polls showing it was popular with the public – saying it was vital the US could trust the UK as an ally. He criticised cuts to international aid, which he said had weakened Britain’s influence, and said Starmer was trying to negotiate with Europe from a position of weakness.
The former prime minister named Angela Rayner’s employment rights bill and Ed Miliband’s net zero drive as key mistakes, alongside the phasing out of oil and gas licenses and Rachel Reeves’ decision to raise the minimum wage and national insurance and change the status of non-doms. All of the policies had given “headwinds, not tailwinds to British business”, he wrote.
The government should now remove all obstacles to AI-related business growths, radically increase planning reform, reverse its North Sea energy policy and make fundamental changes to the welfare system, Blair argued, as well as seeking to repair relations with Trump’s White House.
“Without an agenda of this nature, radical but sensible, Britain will continue its long slide towards relegation from the Premier League of Nations,” he said.
A senior Labour source said: “Tony has evidently not been near a working-class Brit for decades but he’s clearly been away with the tech bro fantasists.
“Reheated Blairism has absolutely no answers to our national decline since the vultures were let loose. There was a time he would have stood up for social democratic values, but this shows just how far he has fallen.”
Blair said Starmer’s key issue was not a lack of charisma or communication but of grounding. “This is the defining problem of the government. Too often they seem to totter in the breeze. To lack ballast.”
The party should have ditched promises like the workers rights reforms and commitments on oil and gas licenses in the early days of government, blaming the fiscal situation, Blair said, arguing that it would have won the goodwill of business. He also attacked the ending of the two child limit, saying it was clear that welfare was in need of major reform.
But he was deeply critical of solutions proffered by those who seek to replace Starmer, saying Streeting’s modernising wing was “appearing to advocate rejoining the EU” as well as changes to capital gains that had been “rejected by successive governments for good reason”.
And he criticised Burnham’s alternative to adopt the “far-left critique about nothing good coming out of the last ‘40 years’ of ‘neoliberalism’, which presumably includes the last Labour government”.
Blair said it had been clear since the election that Starmer had been elected because of the distaste for the Conservative government, rather than on Labour’s offer, and that the party had no guiding vision from which its policies and politics could flow.
“The government is governing from an essentially traditional Labour ‘soft left’ position, parked firmly in the party’s comfort zone,” he said. “The government’s principal problem isn’t Keir’s personality. Or a failure to communicate ‘our achievements’. Or a need to assert more strongly Labour’s ‘values’.
“It is because we don’t have a worked-out, coherent plan for the country in a fast-changing world and are in the wrong political position from which we can devise one and win a second term.”
Blair – who was one of the strongest voices opposed to Brexit and a key player in calls for a new referendum – said he now believed that seeking to negotiate a new deal with Europe was nonsensical when Britain was in a weak position.
“Just as Brexit was never the answer to Britain’s challenges back in 2016, reversing it isn’t the answer to the country’s far worse situation in 2026.” He said any serious negotiation should only start when Britain is “at the farthest end of European competitiveness. At present, we’re not.”
He said that the UK’s position was immeasurably weaker than two decades ago – when the UK was a key US ally, a leader in Europe and a major player in the developing world because of international aid. “All are now in doubt or gone,” he said.
“What’s done is done. None of these things can simply be reversed. But to repair our standing, all require leadership and commitment.”
UK News
UK's hottest May day record broken for second day in a row
Temperatures soared to 35.1C in Kew Gardens, south-west London, according to provisional figures.
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Alexia Putellas leaves Barcelona after 14 years amid link to London City Lionesses | Barcelona Women
Barcelona have announced the exit of their talismanic captain, Alèxia Putellas, after the expiration of the two-time Ballon d’Or winner’s contract at the end of the season.
The 32-year-old, who was born in Mollet del Vallès, just north of Barcelona, spent 14 years at the Catalan club making 507 appearances and scoring a record 233 goals after joining from Levante in 2012 aged 18.
London City Lionesses, the WSL club owned by the billionaire investor Michele Kang, have been heavily linked with a move for Putellas, however they are unsurprising not alone in their interest in the player.
London City have made no secret of their desire to bring Putellas to London though and with Kang’s deep pockets, a Spanish coach, in Eder Maestre, in place, former Barcelona player Jana Fernández already at the club and Mapi León believed to be joining, there is plenty to interest the mercurial midfielder.
Putellas helped Barcelona to a quadruple this season, clinching their fourth Champions League title with an emphatic 4-0 win over Kang’s French team, OL Lyonnes. In addition to that success on the European stage, Putellas collected 10 league titles, 10 Copa de la Reina titles, and seven Copa Catalunya titles during her time at Barcelona and has been key to driving standards at the club and in Spain more widely.
She became the first Spanish player to win the women’s Ballon d’Or in 2021 and retained her crown the following year.
On the international stage, an anterior cruciate knee ligament injury sustained on the eve of the 2022 European Championship denied her a chance to compete in the tournament, where Spain were beaten by England in the quarter-finals. However, she went on to win two Nations League titles, lifted a first World Cup title for her country in Australia in 2023 (with Spain beat England 1-0 in the final), and finished as a runner-up to England at the 2025 Euros.
Putellas’s exit marks the end of an era for Barcelona, with León, Marta Torrejón, Salma Paralluelo and Caroline Graham Hansen all also out of contract in the summer and only the latter two expected to renew. Putellas will be given a send-off by the club on Wednesday morning at the Camp Nou, in recognition of her contribution to the club and the legacy she leaves on both Barcelona and women’s football globally.
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