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Ministers split over aid for Titanic shipbuilder Harland & Wolff

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Ministers split over aid for Titanic shipbuilder Harland & Wolff

The UK government is split over a financial support package for Harland & Wolff in a row that casts uncertainty over the future of the Belfast shipbuilder behind the Titanic.

The Treasury has reservations about approving a taxpayer-backed £200mn guaranteed loan facility, while three rival ministries — Defence, Trade and Business, and the Northern Ireland Office — are all keen to press ahead, according to Whitehall officials.

Chancellor Jeremy Hunt, who must greenlight the package, has not made up his mind and is still receiving advice, with some involved in the talks claiming he is dragging his feet on the decision, three people with knowledge of the talks said. Insiders said a decision is expected in the coming days. H&W wants to borrow up to £200mn from a group of banks at a lower interest rate with the government acting as a guarantor for those loans.

Without the guarantee, the lossmaking business will need to find other sources of financing to help meet its working capital requirements and fulfil key contracts that include building three ships in a £1.6bn Royal Navy contract.

The company’s auditors last year warned the business faced “material uncertainty” unless it could source fresh financing and win additional new work.

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The group is also engaged in pay negotiations with staff and “needs the money” to meet payroll, one person with knowledge of the business said.

Report of the government split comes only days after defence secretary Grant Shapps claimed the UK was entering a “golden age” of shipbuilding, after he approved new warships as part of the UK’s increased military spending.

Two of the officials said that the government was inclined to help the Aim-listed company, which has operations in Scotland and England as well as the iconic shipyard where the Titanic was built and whose yellow cranes dominate the Belfast skyline.

One insisted that the Treasury was concerned about the specific financing mechanism proposed, but was not opposed to the principle of extending support to the 163-year-old company. Officials are weighing alternative support options in the event the chancellor blocks the guarantee scheme.

However, MPs have questioned whether it is right to use taxpayers’ money to support the struggling business at all.

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Kevan Jones, Labour MP for North Durham, on Wednesday called on the National Audit Office to investigate the matter.

“There are serious questions to answer around the use of taxpayer money in guaranteeing a multimillion pound loan to Harland & Wolff, given its current financial position,” Jones told the Financial Times.

Jones, who has previously raised concerns in parliament about the intention to offer an unprecedented 100 per cent guaranteed loan, wrote to Gareth Davies, head of the NAO, earlier this week asking the agency to look into what guarantees were in place to protect taxypayers. 

Jones said there were also questions to be asked about the “due diligence that was done on the ability of H&W to deliver on the £1.6bn contract prior to it being awarded”.

“The National Audit Office should seek answers to these questions on taxpayers’ behalf,” said Jones.

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In a statement on Wednesday, H&W said its management was “comfortable with progress on what is a complex and large transaction for all parties involved”.

H&W shares fell more than 28 per cent on Tuesday before recovering half their losses to close at £10.10, valuing the business at less than £18mn.

The company’s latest annual accounts, to the end of 2022, showed revenues of £27mn but losses of £70mn. H&W also had net debt of £82.5mn, in part thanks to high interest payments on a $100mn loan to New York-based Riverstone Credit Partners.

In December, H&W said it had “sufficient funds” to meet its working capital requirements “until the new loan facility is completed”.

Francis Tusa, analyst and editor of the Defence Analysis newsletter, said “awarding a £1.6bn contract to a company with a market value substantially below this level is not best practice”. H&W has not built a complex warship for more than two decades.

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Ministers had agreed in December to advance the loan guarantee to the next stage, so that H&W could work on financing with its bank syndicate.

The officials said the MoD, DBT and NIO want a financial package agreed swiftly to offer certainty around the future of the shipbuilding business.

The package is critical if H&W is to deliver on a £1.6bn contract to build three support ships for the Royal Navy, which it won in 2022 as part of a Spanish-led consortium. Unions have previously raised concerns that the work could migrate to Spain.

The NIO supports extending finance to Harland & Wolff, mindful of its status as an iconic Belfast-founded business that has particular significance to the unionist community, according to one of the Whitehall insiders. The government pledged in January to support the region’s shipbuilding and defence industries.

Despite the row, first reported by The Times, unions remain confident. Alan Perry, senior organiser for the GMB union in Belfast, said he was “definitely not” hearing the company was in any danger or anything “at the moment that would concern us”.

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A government spokesperson said: “We continue to engage with Harland and Wolff with the export development guarantee. Due to commercial sensitivities, it would not be appropriate to comment further until the outcome of the process is confirmed.”

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For those who help the poor, 2025 goes down as a year of chaos

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For those who help the poor, 2025 goes down as a year of chaos

Paul B. Miller shops at The Market food pantry in Logan, Ohio on Dec. 9. Food aid was just one of many services offered here that faced disruption in 2025.

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LOGAN, Ohio – Before dawn, in a cold, blustery drizzle, a line forms outside a small, squat building on an open stretch of road on the outskirts of town.

“My heater quit working in my car,” Scott Skinner says good-naturedly to the next man in line. “Man, what kinda luck am I having.”

The building is called “The Market” because it has a food pantry, but Skinner and the others are here to sign up for heating assistance. He’s been calling for a month to get an appointment with no luck, so he showed up an hour ago to snag a walk-in slot.

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The demand for help is more acute than usual because heating aid was suspended during the recent government shutdown. At the same time, SNAP food benefits were suspended for weeks, and some food pantry shoppers are still playing catch up.

One of those people is Lisa Murphy. She’s 61, disabled and relies on Social Security, and says it’s important to have “places like this that really help us.” 

“I still owe my gas bill. I owe $298,” Murphy says. “It’s hard to buy food and pay my bills, too.”

Lisa Murphy of Junction City, Ohio grocery shops at The Market at Hocking Drive on Dec. 9.

Lisa Murphy grocery shops at The Market food pantry in Logan, Ohio. She’s still behind on bills after SNAP food benefits were paused for two weeks during the recent federal shutdown.

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A detail from Miller's grocery cart; signs tell clients of the number of items that can be taken.

A detail from Miller’s grocery cart; signs tell clients the number of items that can be taken.

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But even as need grows with rising costs and unemployment, local anti-poverty groups like the one that runs The Market say their work has been threatened as never before amid the Trump administration’s funding cuts, pauses and reversals targeting a long list of safety-net programs. The shutdown was only the latest disruption that forced them to scramble to keep operating.

And, they say, the year of chaos has left deep uncertainty over which programs may be hit next.

‘Emergency response mode’

The Market in Logan, Ohio, is part of Hocking Athens Perry Community Action – HAPCAP for short – one of a thousand such agencies across the country that have been around since the 1960s. They connect some 15 million people with housing, health care, food aid and much more.

At HAPCAP, services include Meals on Wheels, Head Start, a public bus system, employment help, and a food bank that serves 10 counties across southeast Appalachian Ohio.

It’s an impressive range, but this year that’s also made it a big target for federal funding cuts. 

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“Eighty percent of our funding comes from federal grants,” says executive director Kelly Hatas. The “worst day” of her career was back in January, when the Trump administration ordered a federal funding freeze, saying it wanted to shift priorities and promote efficiency.

“When we got that news we were in immediate emergency response mode, like, what are we going to do?” she says.

Kelly Hatas, executive director of Hocking Athens Perry Community Action, talks with Amyrose McManaway, 3, of Haydenville, Ohio, while her parents grocery shop at The Market at Hocking Drive on Dec. 9.

Kelly Hatas, executive director of Hocking Athens Perry Community Action (HAPCAP), talks with the child of a couple who are shopping at the food pantry. Hatas says the nonprofit has had to scramble all year as various safety-net programs were hit with federal funding cuts or pauses.

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The most urgent threat was to six Head Start centers.

“Our Head Start director was on a call with all of her center coordinators telling them we’re laying everyone off tomorrow,” Hatas recalls. “And then there was some secondary information that was like, ‘Just kidding … Head Start is excluded.’”

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That whiplash shook people’s trust. And the hits kept coming.

In March, the administration canceled or paused a billion dollars that helped food banks. In May, President Trump’s budget called for zeroing out Head Start and heating assistance, along with major cuts to other safety-net programs like rental aid. He also proposed eliminating the $770 million dollar Community Services Block Grant that directly supports these anti-poverty groups, including it in a list of “woke programs.”

Congress eventually funded many of those programs, but the Office of Management and Budget took months to get out the block grant money. 

“OMB just decided not to spend it, totally usurping congressional authority,” says David Bradley, who advocates for these local groups with the National Community Action Foundation.

He says they’ve long had strong bipartisan support.

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“So we’ve had two major fights with the administration,” he says. “We won them because Republicans helped.”

An overview of East Main Street in Logan, Ohio on Dec. 9.

East Main Street in Logan, a small town in southeast Appalachian Ohio.

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In a statement, an OMB spokesperson said these anti-poverty programs fund “radically partisan activities, like teaching toddlers to be antiracist and ‘LGBTQIA+ welcoming.’” It also criticized a program that combined affordable housing with clean energy “in the pursuit of both economic and environmental justice.”

“President Trump ran on fiscal responsibility and ending wasteful DEI spending in government,” the statement says.“The American taxpayer should not be made to fund critical race theory.”

Health and Human Services spokesman Andrew Nixon said the agency “administers CSBG consistent with the funding levels Congress provides to support services for low-income families.”

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Funding chaos and uncertainty

In Ohio, Hatas says the state has shifted money to help address federal funding crises as they’ve popped up to keep programs going. But the biggest challenge remains uncertainty.

“The panic and the just day-to-day not knowing what’s going to happen, is just really difficult,” she says.

Because of that, HAPCAP has scaled back some plans, including for a new Head Start facility and a much-needed homeless shelter. It’s also had to pull out of food distribution at schools because of a lack of staff. Some employees are leaving, worried about losing their jobs. Others have been laid off or had their hours trimmed.

“It cut my paychecks completely in half,” says Kelsey Sexton, who manages the front desk but was shifted to part-time in the fall. “We have a mortgage, a car payment. With Christmas coming, my husband was like, what are we going to do?”

She was bumped back up to full-time – but so far only temporarily – after the shutdown pause in SNAP payments brought a surge of people to the food pantry.

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Losing a job can be extra tough in rural communities.

“We don’t really have jobs growing on trees … and so there’s nowhere for these folks to go,” says Megan Riddlebarger, who heads the Corporation for Ohio Appalachian Development (COAD) half an hour away in Athens.

Hocking Athens Perry Community Action Administrative Clerk Kelsey Sexton; Executive Director of Corporation for Ohio Appalachian Development Megan Riddlebarger.

Kelsey Sexton (left) had her hours as a desk clerk at HAPCAP cut in half. Megan Riddlebarger (right) heads the Corporation for Ohio Appalachian Development and says anti-poverty agencies are important for local economies in this rural region.

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She oversees federal funding for 17 antipoverty groups across the eastern part of the state, and says they’re important for rural economies.

“These aren’t just, like, people volunteering for fun,” she says. “These are some of the biggest businesses in town, buying most of the products that are bought and sold in the town.”

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Helping people stay warm and at home 

Down a flight of stairs from Riddlebarger’s office, five burly men at long desks take notes as Dave Freeman goes over how to properly install a water heater vent. It’s a refresher training class for inspectors, part of a weatherization assistance program the White House also wanted to end.

Freeman says many older homes in the area are full of cracks and crevices with almost no insulation.

“That house that you walk in (that) has the blanket at the stairway, so ‘Oh, honey, I haven’t been upstairs, it’s so cold up there,’” he says.

Weatherizing homes not only lets people live comfortably, it also saves them money.

“Say their electric bill goes down or gas bill goes down, they might be able to buy a pizza on a Saturday night,” Freeman says. “And that’s a big thing.”

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Adam Murdock, left, attends attends a training class for weatherization inspectors at Corporation Ohio Appalachian Development's Weatherization Training Center as training coordinator Dave Freeman, right, gives instruction, on Dec. 9, in Athens, Ohio. COAD is a non-profit that provides essential services like weatherization, energy assistance, childcare resources, senior programs and workforce development.

Adam Murdock (left) attends attends a training class for weatherization inspectors at the Corporation for Ohio Appalachian Development.

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But COAD’s funding for weatherization was delayed months, which jeopardized staffing. “You can get paid to do similar work in the private sector, and so retaining that staff is already a challenge,” says Riddlebarger.

Most of the agencies she oversees were able to cover the gap until money finally came through in November. But she says it means squeezing what’s supposed to be a year-long program into about half that time “with the same expectations for performance reporting.”

Diana Eads’ volunteer job with COAD – which includes a small stipend – was also at risk earlier this year, when the Trump administration gutted AmeriCorps grants with little explanation. As part of the AmeriCorps Seniors companion program Eads visits and helps out low-income people.

“My companions have been elderly, they’re not able to get out,” she says. “They’re just one-step away from nursing home care.”

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Diana Eads, 74, a volunteer for Corporation Ohio Appalachian Development, sits for her portrait at the COAD office on Dec. 9.

Diana Eads, 74, visits with elderly people as part of the AmeriCorps seniors program. When a funding cut threatened her small stipend for gas money, she told an 88-year-old woman who lives far away that she would keep visiting no matter what.

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If they were to land in a nursing home or assisted living, that could cost thousands of dollars a month in Medicaid spending. But Eads helps keep them at home for just $4 dollars an hour, to help cover gas or other small bills.

“Being rural, my one companion, it’s 56 miles roundtrip,” she says.

Riddlebarger managed to secure local philanthropic funding to keep operating, and after a legal challenge AmeriCorps federal funding was restored.

Through it all Eads reassured her companion, an 88-year old woman she’d been visiting for five years.

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“I told her no matter what happened, I would not stop visiting,” Eads says. “That was important.”

A grim 2026 outlook

After a year struggling to keep serving those most in need, advocates say they don’t see much relief in site. Republicans in Congress passed major cuts to Medicaid and SNAP food aid and those will start to take hold.

The Trump administration also is considering dramatic limits to rental assistance and has laid out major cuts to long-term housing for people leaving homelessness, a move that faces a legal challenge.

On top of that, the administration’s mass firings and buyouts hit hard in offices that administer various safety-net programs.

Anthony Waddell of Haydenville, Ohio enters the The Market at Hocking Drive on Dec. 9.

The Market runs a food pantry and helps connect people with other services. In December, people seeking an appointment for heating assistance often line up outside before dawn.

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Riddlebarger says most anti-poverty funding already falls far short of the need, and making it even harder to help people is exhausting.

“Not knowing which of our many services we are going to be able to keep operating makes us waste valuable capacity trying to plug holes that shouldn’t be holes,” she says. “We’re just breaking the wheel and reinventing it at a great cost to all parties.”

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‘Bomb cyclone’ forecasted to bring heavy snow, blizzard conditions and dangerous travel

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‘Bomb cyclone’ forecasted to bring heavy snow, blizzard conditions and dangerous travel

People walk through the snow in Brooklyn after an overnight storm on Saturday in New York City.

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An intense cyclone system is fueling a mix of severe weather, including a winter storm that will impact upper parts of the United States.

Heavy snow, blizzards, extreme cold and damaging winds are likely to create hazardous conditions stretching from Montana east to Maine, and Texas north to Pennsylvania, according to the National Weather Service (NWS).

More than eight million people were under winter storm warnings from the NWS on Sunday afternoon. Nearly two million people were under blizzard warnings. Meteorologists warn that after winter weather Friday and Saturday, an arctic front clashing with warm air could rapidly intensify into a ‘bomb cyclone’ over the Midwest and Great Lakes through Monday. A ‘bomb cyclone’ or bombogenesis is a rapidly deepening area of low pressure that creates harsh weather conditions.

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“We are anticipating some pretty big snows over the next 24 hours, especially across east central Minnesota to northern Wisconsin to the Upper Peninsula of Michigan. A lot of those places will have 6-12 inches,” NWS Lead Forecaster Bob Oravec told NPR on Sunday.

Blizzard conditions will cause near zero visibility and possible power outages Sunday night though Monday evening in some locations in Michigan’s Upper Peninsula, according to the NWS Marquette. A foot of snow or more is possible in areas along Lake Superior with 40 to 65 mile per hour winds, according to forecasts.

Marquette Mayor Paul Schloegel told NPR on Sunday the Marquette Board of Light & Power is prepared to handle any loss of electricity. He said in an email the main priority is keeping people safe.

“We tend to heed the advice of our weather forecasters and prepare to hunker down as needed,” Schloegel wrote. “As far as taking care of the snow, our extremely dedicated public works and MDOT crews do a great job taking care of our residents, they are true professionals. Roads are usually back to normal within 24 [hours].”

Schloegel said Marquette residents appreciate a good blizzard while taking precautions.

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“We choose to live here for our love of [four] full seasons and appreciate the effect the greatest lake, Lake Superior, has on our climate,” he said.

Minnesota is also bracing for major impacts. Blizzard and winter storm warnings and advisories are in place for most of the state. As much as 10 inches of snow could fall in the Twin Cities and potentially life-threatening travel conditions are likely through early Monday morning, according to the NWS.

The ‘bomb cyclone’ is also sending cold temperatures below freezing.

Residents of Havre, Mont., about 45 miles south of the Canadian border, could feel wind chill values as low as 15 degrees below zero late Sunday. The actual temperature is forecast to fall to 2 degrees below zero.

Farther south in Dallas, Texas, temperatures are expected to drop dramatically from the 80s on Sunday to highs in the 40s on Monday, according to the NWS.

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In the Northeast, freezing rain could cause travel problems, including icing in northern New England and northern New York state, late Sunday into Monday, according to Oravec.

When colder air moves into New York City early this week, remaining snow on the ground from the weekend storm will freeze and create further hazardous travel conditions, Oravec said.

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Disability rights advocate Bob Kafka dead at 79

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Disability rights advocate Bob Kafka dead at 79

Bob Kafka, a disabled Vietnam veteran, talks with an Austin Police Officer as he and others try to enter a hotel property.

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Bob Kafka, a renowned disability rights advocate, died at his Austin, Texas, home on Friday. He was 79 years old.

Kafka was an organizer with ADAPT (American Disabled for Attendant Programs Today), a group which advocates for policy change to support people with disabilities.

Mark Johnson, co-founder of ADAPT and a longtime friend of Kafka who confirmed his death, told NPR Kafka’s advocacy was as much about changing laws as it was changing lives.

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“Maybe it was helping somebody tie their shoes and the next moment, maybe it was helping feed them, or maybe it was raising money through the fun run, or maybe it was negotiating with federal officials,” said Johnson.

Kafka was born in New York City, but spent most of his life in Texas. He was an Army veteran and fought in the Vietnam War.

Since being paralyzed from a 1973 car accident, Kafka, alongside his wife, Stephanie Thomas, prioritized seeking dignity for those with disabilities and helping others adjust to their new lives. Kafka could be seen at disability rights protests sporting a halo of white curls and an unruly beard.

“Very, very rarely do you find people that can, can do what needs to be done and not go around boasting about it,” said Johnson.

He also recalled the selfless nature of the community Kafka fostered, including how Thomas’ first instinct was to ask how he was feeling about losing a friend.

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“I’m going, ‘Wait a minute, I’m calling you to ask you how you are,’” Johnson said.

Johnson remembered Kafka as a policy wonk who was as interested in the mechanics of federal bureaucracy as grassroots organizing. He said he hopes his friend will be honored for his work to influence change at all levels.

“If you mention disability to an average crowd, it’s gonna, think of something negative. Bob and others may help people make that shift,” Johnson said.

“They say claiming your identity – your full identity – can be very powerful, very liberating. And I think Bob was one of those people that’s been doing that for 50 years.”

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