6:39 am, December 1, 2025
Rachel Reeves defends Budget comments amid row over headroom
Rachel Reeves has defended her handling of the Budget as opposition figures claimed she misled the public over the size of the fiscal ‘repair job’ she faces.
In media interviews on Sunday morning, the chancellor said she ‘of course’ did not lie to the public when she set out a gloomy economic picture at the beginning of November.
While the Office of Budget Responsibility (OBR) did deliver a productivity downgrade that wiped £16bn off expected tax receipts, leaving a £4.2bn surplus against Reeves’s borrowing rules. But on Sunday, she pointed out this would have been the lowest headroom any chancellor had secured against their fiscal rules.
Asda recovery ‘set back six months’ by botched IT upgrade
Asda has said a botched £1bn IT upgrade which hit product availability on shelves has set the business back ‘by six months’ amid efforts to turn around its fortunes.
Boss Allan Leighton, who returned to the supermarket chain last year, said its sales slump over the past three months was ‘self-inflicted’ due to disruption from the transition from a previous system linked to former owner Walmart.
On Friday, Asda revealed that like-for-like sales slid by 2.8% over the third quarter of 2025 after facing “severe disruption” linked to the IT transition.
Toyota to reveal GR GT supercar this week
Toyota will reveal its long-awaited front-engined V8 GR GT supercar this week.
The car will be built by the Japanese firm’s motorsport division, Toyota Gazoo Racing, and will be the new halo model in the brand’s vehicle line-up.
It’ll feature a front-engined layout and a V8 powertrain, and rival cars such as the Porsche 911 and Mercedes-AMG GT.
The markets
The FTSE 100 shook off hefty falls in Premier Inn owner Whitbread to end the week in positive territory, with gains elsewhere in Europe and the US too.
The FTSE 100 index closed up 26.58 points, 0.3%, at 9,720.51. The FTSE 250 gained 52.44 points, 0.2%, at 22,143.91, and the AIM All-Share ended 5.09 points higher, 0.7%, at 754.08.
The pound was quoted lower at 1.3236 US dollars at the time of the London equities close on Friday, compared to 1.3251 dollars on Thursday.
Starmer signals fresh push on welfare reform in bid to move on from Budget row
Sir Keir Starmer will use a speech backing the Budget to signal a fresh push on welfare reform, as a row simmers on about whether Rachel Reeves misled the public over the state of the public finances.
The prime minister will say an overhaul of the welfare system is needed after he was forced to abandon cuts planned earlier this year in the face of a major backbench rebellion.
‘We have to confront the reality that our welfare state is trapping people, not just in poverty, but out of work,’ the Labour leader will say on Monday, arguing reforms are not aimed at making him ‘look somehow politically “tough”‘, but at reversing low productivity.
Greggs launches Christmas cards complete with gift of sausage roll
High street baker Greggs is launching its first range of Christmas cards which come with the gift of a sausage roll.
The range – called the Ultimate Secret Santa Surprise – includes a £3.95 card featuring heat-activated ink which, when warmed, reveals a code to redeem a free sausage roll or vegan sausage roll.
The cards come with the option to personalise some of the designs, such as by adding a loved one’s face to a sausage roll.
Latest on Car Dealer
‘Frankly we could have done without it’: Stellantis boss reacts to the changes in the Budget
Stellantis’s UK boss says that the per mile charge on EVs announced in this week’s Budget has left the carmaker ‘pushing uphill’.
Police recover three vehicles as investigations into theft from used car dealership continue
Police investigating a major theft from a used car dealership say that three vehicles have now been recovered.
UK car production slumped in October as industry continues to feel the impact of JLR hack
UK car production was down again last month as the impact of the JLR cyber attack continued to be felt across the industry.
Used car market is outperforming expectations despite a dip in trade prices – Cap HPI
Used car trade prices slipped again in November but the market remains broadly stable and in line with seasonal norms.
Weather
Today will be windy with outbreaks of rain, these heavy in Wales and west England. Rain clearing from the north for a time but redeveloping in Northern Ireland and south Scotland later on, reports BBC Weather. Tonight, spells of rain will become increasingly confined to eastern areas, followed by clear spells and a few scattered showers drifting in from the west. A breezy night, chilly in the north-east.
