Inflation set to have cooled in June ahead of household energy squeeze

UK inflation is set to have eased last month in a temporary boost for the new Prime Minister ahead of a jump in the household energy price cap.

Official figures for June’s Consumer Prices Index (CPI) will be published on Wednesday, two days after Andy Burnham took the reins and formed a new Cabinet.

Most economists think a sharp drop in petrol and diesel prices will have helped pull the overall inflation rate down to 2.7% in June, from 2.8% in May.

Mitie agrees to £3.1bn takeover swoop by rival UK-based outsourcer

Mitie has agreed to be bought by a rival outsourcer in a £3.1bn deal, marking the latest in a spate of UK-listed companies to be taken off the stock market.

The company, which sells services like security and cleaning for the public and private sector, said it had accepted an offer from OCS Group.

Under the terms of the deal, each Mitie shareholder will receive up to 221.6p per share, comprised of cash and dividends.

Volkswagen Transporter plug-in hybrid goes on sale priced at £38,155

Volkswagen has announced the plug-in hybrid variant of its Transporter van has gone on sale from £38,155.

Badged the Transporter ‘eHybrid’, the model comes equipped with a 2.5-litre petrol engine mated to an electric motor and 11.8kWh battery pack that produces a total of 229bhp. Volkswagen claims the van can also travel up to a distance of 35 miles on electric power.

The vehicle can be topped up using an AC 3.7kW charger, which can replenish a zero to 100 per cent charge in around four and half hours.

FTSE 100 ends up as Healey pledges fiscal control

Stock prices in London closed higher on Tuesday, as the new Chancellor John Healey reiterated his commitment to fiscal discipline, and defence stocks climbed.

The FTSE 100 index closed up 61.15 points, 0.6%, at 10,585.91. The FTSE 250 ended up 211.69 points, 0.9%, at 23,752.40, and the AIM all-share closed up 8.24 points, 1.1%, at 766.13.

In European equities on Tuesday, the CAC 40 in Paris closed up 0.3%, while the DAX 40 in Frankfurt ended 0.7% higher.

Tuesday on Car Dealer

‘Clear message of confidence’: What the motor trade wants from new PM Andy Burnham

Motor industry leaders have welcomed Andy Burnham as prime minister but are urging swift action on the ZEV Mandate and worsening skills shortages. Trade bodies say early decisions on EV policy, investment and technician training will be crucial to supporting the sector’s future.

Jaecoo 7 is 2026’s most sought-after new car according fresh Carwow data

Brayleys and Johnson Cars to combine under new Athanea name following takeover

Johnsons Cars and Brayleys are to rebrand as Athenea Automotive Group following their integration under owner Athanaeum International Holdings. The new identity will be rolled out from late 2026, uniting 79 dealerships under a single national brand with no planned job losses.

Warranty Solutions Group tops £30m in paid out warranty claims as repair costs spiral

Warranty Solutions Group has surpassed £30m in approved warranty claims since launching in 2021, supporting more than 57,000 repairs. The milestone comes as rising repair costs and increasingly complex vehicle technology drive growing demand for warranty cover.

New Prime Minister Andy Burnham promises to lead ‘cost-of-living government’

Andy Burnham told ministers he will lead a ‘cost-of-living Government’ after announcing an £850m tax cut on electricity bills.

From October 1 electricity bills will be VAT free, saving households about £45 a year as part of the new Prime Minister’s promise to help ease cost-of-living pressures.

But Darren Jones, a key ally of former prime minister Sir Keir Starmer who lost his Cabinet post on Monday when Mr Burnham took office, said the policy was ‘unfunded’.

Britain’s biggest water firm announces hosepipe ban for 10m customers

Britain’s biggest water company has announced a hosepipe ban for 10.1 million customers as large parts of the country move closer to drought status.

Thames Water said the restriction, also known as a temporary use ban (TUB), will come into effect at 12.01am on Thursday.

The ban applies to all customers that it supplies with drinking water across London, the Thames Valley and the Home Counties – but not to waste-only customers.

Weather outlook

Northern England, Scotland and Northern Ireland will be largely dry with variable cloud and warm spells of sunshine.

Wales, the Midlands and southern England will be warmer, with brighter conditions but increasing cloud later.

Overall, it will be a settled, warm day for most of the UK.