6:51 am, August 6, 2025
Chancellor ‘must raise taxes to help plug £40bn-plus gap to meet fiscal rule’
The chancellor must resort to ‘moderate but sustained’ tax rises to help repair Britain’s battered public finances as she faces missing one of her fiscal rules by more than £40bn, an economic think tank has warned.
The National Institute of Economic and Social Research (Niesr) said weaker-than-expected recent economic activity, U-turns on welfare cuts and forecast-beating borrowing have combined to create a ‘worsening fiscal outlook’.
Rachel Reeves is now set for a £41.2bn shortfall on her ‘stability rule’ in 2029-30 and has been left with an ‘impossible trilemma’ of trying to meet her fiscal rules while fulfilling spending commitments and upholding a manifesto pledge to not raise taxes, it said.
National living wage likely to rise to £12.71 next year, advisory body estimates
The national living wage could rise by as much as 65p an hour next year, an advisory body has estimated, as the terms of its annual review of wage rates were published.
Ministers are determined to deliver ‘a genuine living wage’, according to the Low Pay Commission’s (LPC) latest remit for increasing the so-called national living wage – the UK minimum wage for workers aged 21 and older.
At the moment, the national living wage is £12.21 an hour.
GWM Poer300 will be one of UK’s cheapest new pick-ups at £31,495
The GWM Poer300 will be one of the cheapest pick-up trucks in the UK when it goes on sale priced from £31,495.
The Poer300 is powered by a 2.4-litre turbocharged diesel engine, which develops 180bhp and 480Nm of torque. Power is transmitted through a standard nine-speed automatic gearbox, while there is permanent four-wheel drive and GWM claims the truck can achieve up to 32.7mpg.
The Poer300 has a towing capacity of up to 3,500kg and a payload of 1,000kg, putting it level with other pick-ups such as the Toyota Hilux and Ford Ranger. Standard kit includes 18-inch alloy wheels, keyless entry and rear parking sensors.
The markets
The FTSE 100 climbed on Tuesday boosted by another day of well-received earnings, with Smith & Nephew, Diageo and BP all in favour, although weak US data saw progress fade late in the trading session.
The FTSE 100 Index closed up 14.43 points, 0.2%, at 9,142.73. It had earlier traded as high as 9,177.95. The FTSE 250 ended 42.19 points higher, 0.2%, at 21,901.69, and the AIM All-Share ended up 4.59 points, 0.6%, at 763.48.
On the FTSE 250, Close Brothers rose a further 6.8% after the favourable motor finance ruling but Domino’s Pizza was off the menu, down 18%, after it lowered its annual outlook, with ‘weak’ consumer confidence keeping a lid on sales growth.
Minister denies migrant returns deal leaves open human rights loophole
A minister has rejected opposition suggestions that the government’s migrant returns deal leaves open a loophole for human rights laws to be exploited.
Dame Angela Eagle denied the agreement with France would allow for spurious claims to be used to avoid deportation after shadow home secretary Chris Philp questioned the wording of the document.
The ‘one-in, one out’ deal coming into effect on Wednesday contains a clause that says in order for people to be returned to France, the UK must confirm they do not have an ‘outstanding human rights claim’. Critics have argued this could risk bogus applications being made to frustrate the deportation process and cause delays.
Average age of UK cars reaches record high of almost 10 years
The average age of cars on UK roads has reached a record high of nearly 10 years, sparking environmental fears.
Motoring research charity the RAC Foundation, which conducted the research, said drivers are benefiting from the improved ‘build-quality’ of modern cars, but this is ‘bad news for the environment’ as it is slowing the switch to electric models.
It found the average age of cars licensed in the UK at the end of last year was nine years and 10 months. This is up from seven years and five months at the end of 2015.
Tuesday on Car Dealer
BYD forced to act over ‘ongoing uncertainty’ with its Electric Car Grant status
Chinese car brand BYD has said it has been forced to act following ‘ongoing uncertainty’ over whether its vehicles will be eligible for the Electric Car Grant.
July sees new car registrations fall 5% as Brits wait for concrete Electric Car Grant details
New car registrations slumped by 5.0% in July, but the dip is predicted to be ‘only temporary’ as confusion around the government’s Electric Car Grant is expected to ease over the coming weeks.
First cars eligible for government’s Electric Car Grant revealed… and they’re all Citroens
Buyers of the e-C3, e-C3 Aircross, e-C4, e-C4 X, the brand new e-C5 Aircross, and the e-Berlingo will be able save £1,500, the Department for Transport (DfT) said.
Car dealers’ ‘patchy’ records could make car finance redress scheme ‘unfair’ – FLA
The FCA’s potential redress scheme for motorists who were mis-sold motor finance could run into difficulty as a result of car dealers’ ‘patchy’ records.
Tata Motors’ finance chief to replace retiring Adrian Mardell as CEO of JLR
JLR has moved quickly to replace outgoing CEO Adrian Mardell, with the carmaker appointing PB Balaji to fill the role.
FJ Chalke chosen by building firm for the supply of over 150 bespoke vans
Family-run dealer group FJ Chalke has been chosen by a well-known building firm for the supply of Nissan vans.
Weather
Today will be mostly dry and sunny, with isolated light showers in northern Scotland and increasing cloud later, reports BBC Weather. Rain arrives in the far north-west by evening.
Tonight, rain spreads across northern and western areas, while the south and east stay dry with variable cloud. Breezy, especially in the north.
