6:51 am, February 4, 2026
Younger and lower-paid workers hit hardest by rising labour costs, figures show
Younger and entry-level workers are being squeezed the hardest by higher employment costs slowing the rate that firms are hiring, new analysis shows.
Some UK businesses have seen the cost of employing workers rise on the back of recent policy measures, including tax and minimum wage increases and reforms to employment rights, the National Institute of Economic and Social Research (Niesr) said in its latest economic outlook.
These factors have raised the marginal cost of hiring by around 7%, in real terms, for an entry level position, according to its findings.
Reaching net zero migration would squeeze public finances, warns think tank
Net zero migration to the UK could shrink the economy and result in taxes rising to plug a funding shortfall, an influential economic think tank has warned.
The National Institute of Economic and Social Research (Niesr) said such a scenario would ‘put pressure on the public finances’ in its latest economic outlook report.
Net migration figures show the difference between the number of people moving long-term to the country and the number of people leaving. It would be net zero if the number of people leaving was equal to those arriving.
McLaren celebrates 10th Constructors’ Championship with special edition Artura Spider
McLaren has revealed a limited-run version of its Artura Spider supercar to celebrate its F1 team’s 10th Constructors’ World Championship victory.
The MCL39 Championship Edition features a hand-painted livery with a unique shade of Myan Orange with Onyx Black, while the car sits on gloss black 10-spoke Dynamo forged alloy wheels, Myan Orange brake calipers with black McLaren logos and special ‘10’ motifs located on the rear quarter panels.
Inside, there are unique ‘10’ motifs embossed into the car’s headrests, a Myan Orange 12 o’clock steering wheel marker with a ‘10’ detail motif, and every example will gain a custom plaque located on the centre console. Only 10 will be made.
The markets
The FTSE 100 closed lower on Tuesday as a rally in mining stocks was offset by hefty falls in software, data analytics and advertising companies amid perceived AI threats.
The FTSE 100 index closed down 26.97 points, or 0.3%, at 10,314.59. The FTSE 250 ended down 135.68 points, or 0.6%, at 23,290.37, and the AIM All-Share closed up 3.99 points, 0.5%, at 818.33.
The pound was quoted higher at 1.3695 dollars at the time of the London equities close on Tuesday, compared with 1.3651 dollars on Monday. The euro stood higher at 1.1818 dollars, against 1.1804 dollars. Against the yen, the dollar was trading higher at 155.73 yen compared with 155.52 yen.
Two-child limit closer to being scrapped as MPs vote to ditch policy
The controversial two-child limit has moved a step closer to being scrapped after legislation cleared the first stage in Parliament.
The policy, introduced under the Conservatives in 2017, was branded a political exercise in division between the ‘deserving and undeserving poor’ during a debate in the Commons ahead of Tuesday’s vote.
MPs voted 458 to 104, majority 354,to scrap the policy, ensuring the Universal Credit (Removal of Two Child Limit) Bill passed at second reading.
Starmer’s appointment of Mandelson under spotlight as criminal probe launched
Sir Keir Starmer’s appointment of Peter Mandelson as ambassador to the US is coming under growing scrutiny, after bombshell revelations about the peer’s dealings with paedophile Jeffrey Epstein led to a criminal probe and his departure from the House of Lords.
The Conservatives will seek to force the government to release all papers relating to how Lord Mandelson got the Washington job as Sir Keir faces MPs for Prime Minister’s Questions on Wednesday.
The prime minister’s weekly appearance in the Commons follows the launch of a criminal investigation into allegations Lord Mandelson passed market-sensitive information to disgraced financier Epstein while serving in Gordon Brown’s Labour administration as it dealt with the fallout from the 2008 financial crash.
Tuesday on Car Dealer
MG3 named January’s fastest-selling used car as affordable nearly new models dominates market
The MG3 was January’s fastest-selling used car, with affordable stock flying off the forecourts in the opening month of the year.
New report reveals full extent of UK’s EV discounts as dealers slash thousands off cars
The UK is offering some of the biggest EV discounts of any major European market, as carmakers battle to comply with ZEV mandate targets.
Chery honours best of fledgling UK dealer network as brand hosts inaugural Retailer Conference
Chinese brand Chery has been celebrating the best of its fledgling UK dealer network as the outfit continues to expand its footprint.
Weather
Rain and wintry weather will ease southwards today, becoming mostly confined to northern Scotland, reports BBC Weather. Elsewhere it stays cloudy, though brighter spells develop in the south after early fog, with milder conditions.
Tonight remains cloudy, with rain and hill snow in the north and rain spreading into southern areas overnight.
