UK services sector

MI5 has issued an espionage alert accusing the China General Technology Research Institute of using British academics to gather intelligence on UK AI research. The security service says the institute has very strong ties to China's Ministry of State Security, its civilian intelligence agency. The warning is drawing wide attention in Britain amid ongoing concerns over Chinese espionage targeting universities and technology sectors.

UK services companies have increased prices at the fastest pace since May, driven largely by rising fuel costs, according to business news reports. The price surge adds to concerns about persistent inflation in the services sector, which is a key focus for the Bank of England when weighing interest rate decisions. The news is being noted amid wider debate about the pace of economic growth and cost pressures facing British businesses.

Debate is growing in Britain over plans for a National Care Service, a proposed system that would put adult social care on a footing similar to the NHS, with funding and standards organised nationally. Commentators are weighing what it would cost, how it would be staffed, and whether reform can finally fix a care sector under strain from an ageing population and chronic vacancies.

South Street Securities Holdings is expanding its operations into the United Kingdom, according to Securities Finance Times. The move marks the US financial services firm's entry into the British market, extending its reach beyond the United States. Details on the scale of the expansion and which services will be offered locally have not yet been disclosed.

The National Audit Office has launched a review into Capita's handling of civil service pensions administration, the Evening Standard reports. Capita runs pension services for the UK civil service under government contracts, and the watchdog's scrutiny will examine how the outsourcing firm delivers those services. The review adds to pressure on the company, which has faced criticism over contract performance in recent years.

UK-based satellite company Open Cosmos has announced plans to build its own satellite internet network, positioning itself as a competitor to SpaceX's Starlink service. The move would place the firm in a fast-growing market for broadband delivered from orbit, where demand for global connectivity is rising sharply. Details on funding, timeline and constellation size have not yet been made public.

A Form 8.3 regulatory notice concerning Ashtead Technology Holdings PLC has been filed. These disclosures are made under UK takeover rules when a person with financial interests in a relevant company deals in its securities, typically signalling shareholding activity during an offer period. Ashtead Technology provides equipment rental and services to the offshore energy and infrastructure sectors. Investors watch such filings to track dealings by major shareholders or potential bidders.

The UK government is advancing its Cyber Security and Resilience Act, which gives ministers powers to block technology suppliers deemed high-risk from critical national infrastructure. The legislation targets supply chain vulnerabilities in sectors such as energy, and follows Iran-linked cyber attacks on energy facilities. Commentators in the security community say the law marks a significant tightening of oversight over who can supply essential services.