6:42 am, July 18, 2025
UK unemployment jumps to highest since 2021 as wage growth slows
Britain’s jobless rate has struck its highest level for four years as workers also faced another slowdown in wage growth, official figures have shown.
The Office for National Statistics (ONS) said the rate of UK unemployment increased to 4.7% in the three months to May, from 4.6% in three months to April. It said this marked the highest level since June 2021.
Meanwhile, average earnings growth, excluding bonuses, slowed to 5% in the period to May to its lowest level for almost three years.
Frasers ‘working hard’ to offset cost hit as sales improve
High street retail giant Frasers said it was working hard to offset soaring wage costs, but had seen ‘more encouraging’ trading after a challenging end to 2024.
The Sports Direct owner reported a 2.8% rise in underlying pre-tax profits to £560.2m for the year to April 27, despite a 7.4% drop in revenues to £4.9bn. Second-half profits jumped 8.3% as it recovered from a tough end to 2024 due to weaker consumer confidence in the run up to, and following, the autumn budget.
Frasers – majority-owned by retail tycoon Mike Ashley – had cut its profit outlook in December after the tougher trading, but it said conditions had since improved.
Chery’s Tiggo 7 confirmed for UK arrival
Chery has announced that it will be bringing its Tiggo 7 crossover to the UK, with prices starting at £24,995.
The Tiggo 7 joins the larger seven-seater Tiggo 8 in the firm’s range, aiming to offer the same level of value for money thanks to a wide range of standard features. Highlights on the five-seater include dual-zone air conditioning, adaptive cruise control and a six-speaker Sony audio system. All models also benefit from two 12.3-inch displays and a 540-degree parking camera.
Two powertrain options will be also be available. The first uses a 1.6-litre turbocharged petrol engine with 144bhp and 275Nm, while a plug-in hybrid adds in a large electric battery to deliver up to 56 miles of electric-only range.
The markets
Stock prices in London closed mostly higher on Thursday, with markets ultimately reassured by US President Donald Trump stating that he did not currently intend to fire Federal Reserve chairman Jerome Powell.
The FTSE 100 index closed up 46.09 points, 0.5%, at 8,972.64. The FTSE 250 ended up 164.57 points, 0.8%, at 21,766.43, and the AIM All-Share closed down 3.17 points, 0.4%, at 768.93.
The pound was quoted lower at 1.3414 US dollars at the time of the London equities close on Thursday, compared with 1.3473 dollars on Wednesday.
Diane Abbott: Labour ‘wants me out’ after second suspension
Diane Abbott has been suspended from the Labour Party for a second time after repeating comments about racism for which she had previously apologised.
The Hackney North and Stoke Newington MP said the Labour leadership ‘wants me out’ and that her comments in a BBC interview released this week were ‘factually correct’.
It comes a day after Sir Keir Starmer stripped the whip from four Labour MPs for persistent breaches of discipline.
Germany to allow UK passport holders to use e-gates
Germany has agreed to allow some arriving UK airline passengers to use passport e-gates at its airports by the end of August, the Cabinet Office has announced.
This will initially be available for frequent travellers. Access for all UK nationals will be possible once Germany has completed updates to its entry systems as it introduces the EU’s long-delayed Entry/Exit System (EES).
The deal forms part of a bilateral treaty signed by prime minister Sir Keir Starmer and German chancellor Friedrich Merz on the latter’s first official visit to the UK.
Thursday on Car Dealer
Vertu boss Robert Forrester welcomes ‘necessary’ Electric Car Grant despite dealer confusion
Vertu boss Robert Forrester has praised the new £650m Electric Car Grant as a timely and necessary move to boost EV uptake among private buyers. However, delays in discount implementation and concerns over used EV market impact prompt calls for cautious monitoring and further supportive measures.
Peugeot dealer network mobilised to help fix Citroens with faulty airbags
Stellantis has authorised over 150 Peugeot dealers to help replace faulty airbags in 120,000 recalled Citroen and DS vehicles. Citroen workshops face overwhelming demand, with 99,000 cars still awaiting repair. The recall follows a fatal airbag incident and urgent ‘stop drive’ warnings issued in June.
JLR outlines plans to slash UK workforce with up to 500 management rolls set for the axe
JLR plans to cut up to 500 UK management jobs amid falling sales and a major cost-cutting effort. The move follows a 15.1% drop in retail sales and a shift away from older Jaguar models ahead of upcoming electric vehicle launches.
Polestar partners with family-run Holden Group to open two new sites in East Anglia
Polestar has expanded its UK presence with new sites in Norwich and Bury St Edmunds, operated by Holden Group. The Norwich site offers test drives and tailored buying experiences, while Bury will become a Polestar Pre-Owned hub, supporting growing EV demand in East Anglia.
Weather
Today will be mostly cloudy in the west with rain, while the east sees scattered, potentially thundery afternoon showers, reports BBC Weather. It’ll be humid in most parts with highs of 27 degrees in the south and east.
Tonight begins largely dry, but rain—some heavy and thundery—will move into southern England during the early hours, with western areas staying cloudier than the clearer east.
