6:45 am, March 5, 2026
UK interest rates could go back above 4% if energy shock persists, Niesr warns
Interest rates in the UK could be pushed back up above 4% if war in the Middle East prompts a persistent spike in oil and gas prices, an economic think tank has warned.
The National Institute of Economic and Social Research (Niesr) said the Bank of England will have to contend with a ‘shock’ to energy costs which could ’cause problems for Rachel Reeves’.
The research institute drew up two scenarios involving oil prices rising a further 30%, and gas prices a further 50%. If the price spike is temporary the prices will normalise in three months, however, in the second scenario, if energy price rises persist for a year before steadying, interest rates in the UK could increase by about 0.8 percentage points.
Energy bills forecast to rise 10% from July as Middle East war drives up prices
Household energy bills are forecast to rise by 10% from July following sharp increases in wholesale gas prices driven by the escalating conflict in the Middle East, experts have warned.
Analysts Cornwall Insight said forecasts for Ofgem’s price cap for July to September had surged to £1,801 a year for a typical dual fuel household – an increase of £160 or 10% on April’s cap announced last week.
Cornwall said the rise was a ’cause for concern’ and warned any increase would also feed through to electricity prices.
Renault set to expand line-up with new Bridger
Renault will shortly unveil a new compact SUV – the Bridger.
The firm looks set to fully showcase the upcoming Bridger Concept on March 10 at a group strategy planning day, when it is expected to reveal further details about this latest model.
For now, Renault has stated that the Bridger – which takes its name from the word ‘Bridge’ – will measure in at under four metres long, making it significantly shorter than the current Dacia Duster or Renault Captur. Billed as an ‘urban SUV’, it’ll be built in India.
The markets
European stocks rallied on Wednesday after two days of heavy losses, and energy prices retreated, as investors await the latest developments in the Middle East.
The FTSE 100 index ended up 83.52 points, 0.8%, at 10,567.65. The FTSE 250 closed up 202.46 points, 0.9%, at 22,896.67 and the AIM All-Share rose 8.13 points, 1.0%, at 794.56.
The dollar’s recent strong run stalled. The pound was higher at 1.3365 dollars on Wednesday afternoon, up from 1.3305 dollars at the equities close on Tuesday. The euro stood higher at 1.1634 dollars, from 1.1585 dollars. Against the yen, the dollar was trading lower at 157.01 yen, compared with 157.80 yen.
Iran war enters sixth day as flights due to bring Britons home from Middle East
The US-Israeli war on Iran has entered its sixth day as flights carrying Britons left stranded in the Middle East amid the conflict are due to arrive in the UK.
The first government rescue flight and British Airways commercial flight from Muscat were expected to land in the UK early on Thursday.
However, the BBC reported the government-chartered flight experienced a technical issue and is now not expected to take off until later on Thursday. It comes after the US and Israel intensified their bombing attacks against Iran’s military and security apparatus.
Husband of Labour MP questioned after arrest on suspicion of spying for China
The husband of a Scottish Labour MP was one of three men facing questioning by police last night after being arrested on suspicion of spying for China.
Following the arrest of her spouse David Taylor, Joani Reid MP, who sits on the Home Affairs Select Committee, said she had ‘never seen anything to make me suspect my husband has broken any law’.
The arrests of the three men – aged 39, 43 and 68 – were carried out by counter-terrorism officers at addresses in London and Wales on March 4 as they were accused of assisting a foreign intelligence service.
Wednesday on Car Dealer
What do consumers REALLY want from car dealers when it comes to EVs?
Car dealers play a crucial role in educating consumers about the switch to electric vehicles – but more can still be done. That’s the opinion of TV presenter and Electrifying.com founder Ginny Buckley who has been named as the final headline speaker at Car Dealer Live 26.
Video: Used EV values JUMP 1.4% as car prices rise across the market in February
Used car retail prices climbed in February, with second-hand EVs recording an encouraging rise.
Car finance redress scheme to be confirmed this month as FCA considers ‘implementation period’
The final terms of the FCA’s motor finance redress scheme are expected to be published by the end of the month, with the regulator set to impose an ‘implementation period’ to help streamline the process.
Just Motor Group is sold to Employee Ownership Trust as car dealer looks to ‘realise value’
Car dealer Just Motor Group has agreed a landmark deal which will see ownership of the firm fall partially into the ownership of its employees.
Illegal and ‘inappropriate’ used car dealership closed down amid dispute over planning permission
An illegal car dealership has been closed down by authorities after it was found to be operating without planning permission.
Weather
BBC Weather reports that Northern Ireland and Scotland will see cloudy skies and showery rain today, while England and Wales start mild and sunny before cloud and rain spread into Wales and north-west England later.
Tonight brings further rain in northern areas, with snow on higher ground, while southern England stays clearer with patchy fog.
