News Round-Up

Jul 1: Shop prices return to inflation; WH Smith cuts sale price of shops; PHEV Volkswagen vans

Here is your early morning news digest for Tuesday, July 1

Time 6:45 am, July 1, 2025

Shop prices return to inflation for first time in almost a year

Shop prices have returned to inflation for the first time in almost a year, figures show.

Overall shop prices were 0.4% higher in June than a year earlier – a significant jump from the decline of 0.1% seen in May, according to the BRC (British Retail Consortium)-NIQ Shop Price Index.

Food inflation increased to 3.7% from May’s 2.8% in May, while fresh food was 3.2% more expensive than a year ago.

WH Smith cuts sale price of high street business after weaker trading

WH Smith has been forced to slash the price of its high street business in a last-minute renegotiation after recent trading worsened.

The retailer revealed that, while the sale of the high street chain to Hobbycraft owner Modella Capital completed on Monday, the cash returns from the sale would now be lower than first expected.

It said it now expects to receive gross proceeds of up to £40m, down from the £52m it first forecast.

The markets

European stocks struggled on Monday despite fresh gains on Wall Street which saw the S&P 500 notch another all-time best level.

The FTSE 100 index closed down 37.95 points, 0.4%, at 8,760.96. The FTSE 250 was 89.70 points lower, 0.4%, at 21,626.26, while the AIM All-Share added 1.32 points, 0.2%, at 770.65.

The pound was broadly flat against the dollar at 1.37 at the time of the London equities close on Monday. The euro stood at 1.17 against the dollar, the same as Friday.

Volkswagen Multivan and California gain new plug-in hybrid powertrain

Volkswagen has revealed that the Multivan and California camper van can now be ordered with a new plug-in hybrid powertrain.

The vans get a 1.5-litre turbocharged petrol engine mated to an electric motor and 19.7kWh battery pack, giving 59 miles of pure electric power. Also, 50kW DC rapid charging is now compatible, taking the vans from 10 to 80 per cent in 26 minutes, and 4Motion all-wheel drive is standard.

Both vans with this powertrain are on sale now with the Multivan PHEV priced from £54,525 (inc.VAT) and £71,295 (inc.VAT) for the California PHEV.

Welfare rebellion looms for Starmer despite concessions to Labour rebels

Sir Keir Starmer continues to face the prospect of a major rebellion over his welfare cuts despite making concessions to disgruntled Labour MPs.

Ministers hope a partial U-turn will be enough to win over Labour rebels when MPs vote on welfare changes on Tuesday. The concessions included protecting people claiming personal independence payment (Pip) from changes due to come into effect in November 2026, and rowing back plans to cut the health-related element of universal credit.

But backbench anger has continued to simmer, with a statement from work and pensions secretary Liz Kendall laying out the concessions on Monday receiving a negative response.


Bob Vylan and Kneecap face criminal probe as BBC Glastonbury coverage criticised

Kneecap and Bob Vylan are facing criminal police investigations for their performances at Glastonbury Festival as US authorities confirmed the latter group have been banned from entering the country.

The BBC also expressed regret at not pulling its livestream of Bob Vylan’s ‘unacceptable’ set, with the culture secretary claiming the issue should have been foreseeable and constituted ‘a problem of leadership’ for the broadcaster.

Bobby Vylan, one half of the British rap punk duo, led crowds at the festival’s West Holts Stage on Saturday in chants of ‘Free, free Palestine’ and ‘Death, death to the IDF (Israel Defence Forces)’.

Monday on Car Dealer

Tom Hartley Junior selected to sell vast McLaren collection belonging to motorsport royalty

Supercar dealer Tom Hartley Jnr will sell Mansour Ojjeh’s world-renowned McLaren collection, following the motorsport legend’s death. The unique collection includes the last McLaren F1 and P1 GTR produced, all finished in bespoke ‘Mansour Orange,’ reflecting Ojjeh’s lifelong passion and influence at McLaren.

Lotus has ‘no plans’ to close UK Hethel factory after meeting with government

Lotus has confirmed it will continue building cars in the UK after reports suggested it might close its Hethel plant in Norfolk. Following talks with the business secretary, the company reaffirmed its commitment to UK operations, employees, and its British manufacturing heritage.

‘Prolific’ thief broke into franchised car dealership and caused £140,000 of damage

Damian Ward, a prolific thief with 71 previous offences, caused £140,000 damage at Vauxhall Thurlow Nunn King’s Lynn by stealing headlights from three Corsas. He admitted the crime and now faces sentencing at Norwich Crown Court, where harsher penalties can be applied.

Master technician to feature on DIY SOS as Ben appeals for help for severely disabled son

Automotive charity Ben is supporting a fundraising campaign for Dan Flemen, a 13-year-old left severely disabled after a brain tumour and stroke. DIY SOS will renovate the family’s home to meet his care needs, with volunteers and donations still urgently needed.

Weather

Another hot day in the south-east today, with temperatures set to top 30 degrees or more, reports BBC Weather. Parts of Wales, however, will be cloudy, and north and east England and Scotland might see showers.

Tonight, showers will mainly affect eastern areas with some heavy downpours. Elsewhere, it will be mostly dry with clear spells and occasional northwest showers.

James Batchelor's avatar

James – or Batch as he’s known – started at Car Dealer in 2010, first as the work experience boy, eventually becoming editor in 2013. He worked for Auto Express as editor-at-large from 2014 and was the face of Carbuyer’s YouTube reviews. In 2020, he went freelance and now writes for a number of national titles and contributes regularly to Car Dealer. In October 2021 he became Car Dealer's associate editor.



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