Business
Channel Tunnel says UK investment ‘non-viable’ as it halts projects
Eurotunnel, the operator of the Channel Tunnel, has halted its UK projects, claiming “unsustainable” levels of taxation has made any future investments “non-viable”.
The company said it had been informed its business rates would increase by some 200% from next year.
It hit out at the government, arguing that the higher costs were “clearly contrary” to ambitions of growing the economy and increasing investment.
The Treasury said it would support firms “hit hardest” by tax hikes and would continue talks with affected industries over such concerns.
The outburst from Eurotunnel comes days ahead of next week’s Autumn Budget, where Chancellor Rachel Reeves will set out the government’s tax and spending plans.
Speaking to the BBC, Eurotunnel’s chief executive Yann Leriche said: “All our investments, all our plans are becoming unsustainable.
“As you know, business rates, it’s a property tax. And our property – the Channel Tunnel – has not changed. It’s still the same tunnel, the same terminal, the same trains. Everything is equal.
“And so to face such an increase… is a real issue for us. Because we know in rail, we invest for the long term.”
The potential 200% increase in business rates for Eurotunnel is a result of new calculations by the Valuation Office Agency (VOA), which provides the government with valuations and property advice used in setting taxation and benefits.
Mr Leriche said while discussions were ongoing, this could see its business rates rising from £22m to £65m.
A spokesperson for Eurotunnel said such a hike in business rates, along with other taxes, could put its total tax level at about 75% on UK earnings.
The VOA told the BBC the body “does not determine business rates” and that “next year’s liability has not yet been confirmed”.
“This unparalleled and unsustainable level of taxation makes any future investment in the UK non-viable,” the Channel Tunnel said.
“It is therefore impossible to develop new services, create jobs, and pursue what is needed for the long-term development of our activities.”
The company claimed it had “no other choice but to freeze our future investments in railway assets in the UK, starting in 2026”.
The BBC has asked Eurotunnel what investments it has frozen. The Financial Times reported that its chief executive, Yann Leriche, told the newspaper it had scrapped plans to reopen a freight terminal in Barking and to run a new direct freight service from Lille.
The Channel Tunnel is an undersea tunnel linking southern England and northern France. Nicknamed “Chunnel”, it comprises three tunnels, two rail tunnels used for freight and passenger trains, and a service tunnel.
The link between Folkestone and Calais is operated by Eurotunnel.
Separate company Eurostar, Eurotunnel’s biggest customer, operates passenger services through the tunnel between London and a number of other European cities on the continent, including Paris, Brussels and Amsterdam.
A VOA spokesperson told the BBC it had engaged with Eurotunnel and their advisers “on multiple occasions over the past eighteen months to discuss their valuation and fully explain our approach”.
“These discussions remain ongoing, and we are committed to continuing constructive engagement.”
The spokesperson added Eurotunnel could formally challenge the valuation.
Ahead of the Budget, the Eurotunnel called on the government to “provide certainty on business rates”.
The firm has not been alone in issuing warnings to the chancellor, with supermarket bosses claiming part of the government’s business rates reforms posed a problem for its industry.
Business rates are a tax on non-domestic properties such as shops, pubs and offices.
It is expected that Reeves will confirm the rates businesses will have to pay at in the Budget, along with further details, which will come into force in April 2026.
The Treasury said in response to Eurotunnel’s comments that it did not comment on “speculation around future changes to tax policy”.
It said once it understood the “complete” revaluation picture, it would be in a position to “make final decisions” on support.
Business
Asian stocks today: Markets remain mixed after Trump’s Iran remarks; HSI down over 76 points, Kospi gains 1.5% – The Times of India
Asian markets ended mixed on Thursday, after US President Donald Trump’s comments on Iran, saying that he was told “on good authority” that plans for executions in Iran have stopped. At the same time, oil prices dropped sharply, falling more than $2 a barrel.Hong Kong’s HSI was up 76 point or 0.28% down at 26,923. Nikkei plunged 230 points or 0.42% to trade at 54,110. Shanghai and Shenzhen ended down 0.33% and up 0.41%. In South Korea, Kospi was up 1.5% or 74 points.US benchmark crude slid $2, or 3.4%, to $59.75 a barrel. Brent crude, the global benchmark, fell $2.31, or 3.5%, to $64.21 a barrel.Shares of Toyota Industries rose 6.2% after reports said Toyota Motor had increased its buyout offer for the company to 18,800 yen ($118.61) per share. US futures were little changed. The future for the S&P 500 rose by less than 0.1%, while futures for the Dow Jones Industrial Average edged down by less than 0.1%.On Wednesday, Wall Street closed lower for a second consecutive session. The S&P 500 fell 0.5%, the Dow slipped 0.1%, and the Nasdaq composite dropped 1%.Losses were led by Big Tech stocks, even as most shares on Wall Street advanced. The sector came under pressure as investors pulled back from the artificial intelligence rally and amid warnings from some critics that valuations had become stretched. Nvidia shares declined 1.4%, while Broadcom fell 4.2%.Bank stocks also weakened. Wells Fargo sank 4.6% after reporting quarterly profit and revenue that missed expectations. Bank of America fell 3.8%, and Citigroup dropped 3.3%.Energy stocks provided some support to the broader market. Exxon Mobil gained 2.9%, and Chevron rose 2.1%.Investors continued to seek safe-haven assets as geopolitical uncertainties remained elevated. Gold prices slipped 0.8% on Thursday but stayed close to their previous record levels.In the bond market, the yield on the US 10-year Treasury fell to 4.14% from 4.18% late Tuesday, reflecting increased demand for safer assets. Bond prices move inversely to yields.In currency trading early Thursday, the US dollar strengthened to 158.63 Japanese yen from 158.46 yen. The euro weakened slightly to $1.1636 from $1.1645.
New Delhi: Indian stock markets are shut today, January 15, after the Maharashtra government declared a public holiday for municipal elections in Mumbai and several other parts of the state. While the move aims to ensure smooth voting, it has sparked a debate in the financial world with Zerodha CEO Nithin Kamath strongly criticising the closure of both the NSE and BSE, calling it a case of “poor planning.”
Kamath Flags Global Impact of Local Market Holiday
In a post on X, Nithin Kamath pointed out that Indian stock exchanges are deeply connected with global markets, yet were closed today due to local municipal elections. Quoting Charlie Munger, he wrote, “Show me the incentive, and I will show you the outcome.” Kamath said the holiday continues because no one who matters has any incentive to oppose a market shutdown, adding that such decisions underline how far India still needs to go to earn the confidence of global investors.
Indian stock exchanges are closed today for Mumbai’s municipal elections.
The fact that our exchanges, which have international linkages, are shut down for a local municipal election shows poor planning and a serious lack of appreciation for second-order effects.
As Munger…
— Nithin Kamath (@Nithin0dha) January 15, 2026
Holiday Added at the Last Minute
The trading holiday on January 15 was not part of the stock exchanges’ original 2026 trading calendar and was added only earlier this week. Both the BSE and NSE later issued separate circulars confirming that trading would remain suspended today due to municipal corporation elections in Maharashtra.
All Key Market Segments Shut, Trading to Resume Tomorrow
Trading remained suspended across equities, equity derivatives, securities lending and borrowing, as well as currency and interest rate derivatives for the day. The commodity derivatives segment was closed during the morning session, but was scheduled to reopen for evening trading. Normal trading on both the NSE and BSE is set to resume on Friday, January 16.
Getty ImagesRegulator Ofwat has opened an investigation into South East Water (SEW) after repeated loss of water supplies across Kent and Sussex.
The investigation will consider whether the company has complied with its licence condition to provide high standards of customer service and support.
Ofwat said it was the first investigation it had launched into customer-focused licence conditions.
SEW said: “The company will always fully co-operate with any investigation by our regulators and provide any information required.”
As of Wednesday night, 10,000 properties continued to have no water supply.
Lynn Parker, Ofwat’s senior director for enforcement, said: “The last six weeks have been miserable for businesses and households across Kent and Sussex with repeated supply problems.
“We know that this has had a huge impact on all parts of daily life and hurt businesses, particularly in the run up to the festive period.
“That is why we need to investigate and to determine whether the company has breached its licence condition.”
The investigation was started after the prime minister said the situation, which affected 30,000 customers at its height, was “clearly totally unacceptable” and asked Ofwat to review the company’s licence.
SEW said some customers might not see supplies return until Friday after issues first began on Saturday in the wake of Storm Goretti and a power cut at a pumping station.
The company said it would be using 26 tankers to pump water directly into its network while working “around the clock” to fix leaks and bursts.
Ofwat already has an open investigation into SEW’s supply resilience to determine whether it has failed to develop and maintain an efficient water supply system.
As of 17:30 GMT on Wednesday, SEW said it had implemented a new recovery plan for Tunbridge Wells that involved keeping local booster pumps switched off for a further 36 hours.
The aim was that customers would wake up to a consistent supply by Friday morning.
SEW said its local drinking water storage tanks had not refilled at the speed required, so it had to extend the “outage” to allow it to recover fully.
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