Increase in minimum wage rates announced

Minimum wage rates are to increase next year, giving a pay rise for millions of workers, the government has announced.

Chancellor Rachel Reeves said she had accepted recommendations from the Low Pay Commission so that those on low incomes are ‘properly rewarded’ for their work.

From next April the National Living Wage will rise by 4.1% to £12.71 an hour for eligible workers aged 21 and over, which the government said will increase gross annual earnings of a full-time worker on the rate by £900, benefiting around 2.4 million low-paid workers. The National Minimum Wage rate for 18 to 20-year-olds will increase by 8.5% to £10.85 an hour.

Ministers back Heathrow’s plan to move M25 for third runway

Ministers have backed plans from Heathrow Airport’s owners that would see the M25 moved to make way for a third runway.

Transport secretary Heidi Alexander rejected a rival proposal from Arora Group, saying Heathrow’s own plans were ‘the most credible and deliverable option’.

The Heathrow proposals involve building a 3,500-metre runway and require a new M25 tunnel and bridges to be built 130 metres west of the existing motorway. The Arora plan was for a shorter, 2,800-metre runway that would not require diverting the M25.

Vauxhall creates one-off tea-making Vivaro Electrici-Tea van

Vauxhall has created the ultimate tea-making van for tradespeople with the Vivaro Electrici-Tea.

The Vivaro Electrici-Tea is equipped with its very own built-in tea-making station, which includes an electric kettle, fridge, sink and sugar dispenser. There is even a shelf and cupboards to allow extra space for any other tools and materials.

It comes after the manufacturer conducted research on 1,000 tradespeople who drive a van for work and found that 90 per cent say that a good cup of tea has a positive impact on their day, while 49 per cent believe that getting a good hot drink can even make their day.

The markets

Banking stocks gave the FTSE 100 a lift on Tuesday amid reports that the sector will be spared a tax hit in Wednesday’s budget.

The FTSE 100 index closed up 74.62 points, 0.8%, at 9,609.53. The FTSE 250 ended up 205.83 points, 1.0%, at 21,617.41, and the AIM All-Share closed up 4.93 points, 0.7%, at 742.09.

Ahead of the budget, the pound was quoted higher at 1.3183 US dollars at the time of the London equities close on Tuesday, compared to 1.3104 dollars on Monday.

Rachel Reeves says public ‘angry at unfairness’ in economy ahead of Budget

Rachel Reeves acknowledged people are ‘angry at unfairness’ in the British economy ahead of unveiling her second Budget on Wednesday.

In a filmed address ahead of the Budget, the chancellor said the government had started to see results in the past year with ‘wages rising faster than inflation, hospital waiting lists coming down, and our economy growing faster and stronger than people expected’.

‘But I know there is more to do,’ she said, adding that people are ‘angry at the unfairness in our economy’.

Ukraine talks ‘moving in positive direction’ in allied meeting, PM says

Sir Keir Starmer has said talks on a potential ceasefire in Ukraine were ‘moving in a positive direction’ as he spoke to leaders of the war-torn nation’s allies.

The prime minister led a call with leaders of the so-called coalition of the willing on Tuesday after talks between Ukraine and the US in Geneva over the weekend appeared to bear fruit for a path to peace.

Addressing a virtual meeting of the coalition from the Cabinet Room in 10 Downing Street, Sir Keir said of the latest talks: ‘Progress was made and I welcome some of the developments that have now come forward.’

Tuesday on Car Dealer

Premium car brands rocked by last minute changes to Motability as legal challenge mooted

Premium car manufacturers say they were taken by surprise yesterday by news they were to be excluded from the Motability scheme.

Premium car brands removed from Motability scheme in huge shake-up

Premium car brands – including the German big three – have been removed from the Motability charity scheme following sweeping changes.

Mystery surrounds car dealership closure as customers turn up to find no one there

Mystery surrounds the sudden closure of a Ford main dealership in Cambridgeshire, after customers turned up to the garage’s service centre to find it locked up with no staff on site.

Used Car Awards 2025: Who won what at this year’s event?

The best of the best in the used car industry were named at a glittering ceremony this week in London.

Weather

Rain and cloud spread east, with some heavy bursts, reports BBC Weather. The far south-east stays sunny until later afternoon before clouding over. Western areas feel milder.

Tonight, rain crosses the south-east then clears early. Scotland and Northern Ireland get further rain; elsewhere mostly cloudy with drizzle, turning generally milder by dawn everywhere.

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