Vauxhall Frontera, via PAVauxhall Frontera, via PA

News Round-Up

Oct 2: UK manufacturing activity shrinks; Baroness Mone in PPE spotlight; New posh Frontera trim

Here is your early morning news digest for Thursday, October 2

Time 6:48 am, October 2, 2025

Government tax increases ‘sucking cash’ out of pubs, warns Shepherd Neame

The boss of a major UK pub group has called on the government to stop ‘throwing road blocks’ in front of the industry following a hit from higher labour and packaging costs.

Jonathan Neame, the chief executive of hospitality firm and brewer Shepherd Neame, said ‘bad policy’ decisions are ‘sucking cash’ out of UK pubs.

He told the PA news agency that there is still opportunity in the sector but that it needs reduced policy action from government to fully thrive.

UK manufacturing activity shrinks at fastest pace for five months

Activity in the UK manufacturing sector contracted at its fastest pace for five months in September after orders dropped, according to new figures.

The downturn came as firms linked to the car industry also warned that their supply chains were affected by production shutdowns at Jaguar Land Rover.

The S&P Global UK manufacturing PMI survey, watched closely by economists, showed a reading of 46.2 for the month, decreasing from 47.0 in August, showing that activity is contracting.

Vauxhall Frontera gains new flagship ‘Ultimate’ trim

Vauxhall has revealed a new range-topping version of the Frontera SUV with the ‘Ultimate’ trim.

The Ultimate trim comes as standard with heated front seats and steering wheel, a heated windscreen and roof rails, and is paired with a 1.2-litre mild-hybrid engines, plus two electric versions with a range of ip to 251 miles.

Prices start at £25,695 for the EV versions, thanks to them being eligible for the government’s Electric Car Grant.

The markets

The FTSE 100 hit another record high on Wednesday, despite concerns over the US shutdown, as pharmaceutical stocks powered higher, with AstraZeneca up 11% alone.

The FTSE 100 index closed up 96.00 points, 1.0%, at 9,446.43, beating its previous record close on Tuesday. The FTSE 250 ended 34.14 points higher, 0.2%, at 22,049.70, and the AIM All-Share ended up 3.24 points, 0.4%, at 786.41.

The pound was quoted higher at 1.3477 US dollars at the time of the London equity market close on Wednesday, compared to 1.3443 dollars on Tuesday. The euro stood at 1.1729 dollars, up slightly against 1.1727 dollars. Against the yen, the dollar was trading at 147.15 yen, lower compared to 147.98 yen.

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High Court judge to rule on whether PPE Medpro breached government contract

A High Court judge is set to rule on whether a company linked to Tory peer Baroness Michelle Mone breached a £121m government contract to supply surgical gowns during the pandemic.

The Department of Health and Social Care (DHSC) sued PPE Medpro, saying the company had provided 25 million ‘faulty’ gowns that were not sterile.

The government wants to recover the costs of the £121m contract, as well as the costs of transporting and storing the items, which amount to an additional £8,648,691. The company, a consortium led by Lady Mone’s husband, businessman Doug Barrowman, Both denied wrongdoing and neither gave evidence at the trial in June.


Starmer: No ‘golden ticket’ to UK as refugees will have to earn right to stay

Sir Keir Starmer has said there will be no ‘golden ticket’ to settling in the UK under plans to require refugees to ‘earn’ their right to stay long term.

The government plans to end automatic family union rights for those granted asylum in the UK and change the requirements for long-term settlement.

New applications to the existing refugee family reunion route have been suspended since September.

Wednesday on Car Dealer

Cargiant clocks up £121.2m profit in 2024 after dramatic rise in property value

Single used car supermarket Cargiant chalked up a whopping £121.2m pre-tax profit for 2024 thanks to a revaluation of land it owns.

More than six in 10 dealers feel positive about Q4, claims finance provider

More than six out of 10 used car dealers – 61% – say they are feeling positive about their prospects in Q4 and are having a strong year so far, according to research from Startline Motor Finance.

Electric cars approach ‘universal tipping point’, as government urged to cut VAT on roadside charging

A consumer motoring website is calling for a VAT reduction on roadside electric vehicle charging and suppliers, after a 1,285-mile test showed this could bring the cost of roadside charging closer to the fuelling an internal-combustion engine car on the same route.

Harwoods losses top £20m in two years as it suffers a punishing 2024

Family-run car dealer group Harwoods suffered a punishing £8.5m loss before tax last year, its annual report reveals.

Exclusive video: Car dealers push up used car prices by nearly 1% in September

Car dealers pushed up the prices of used cars on their forecourts by nearly 1% in September as they struggled to get hold of good quality stock to replenish sales.

Close encounters of the electric kind at Nissan as dealers show off new Micra and Leaf

Car buyers across the UK are invited for a close encounter with Nissan’s latest 100% electric models at their local dealership.

Motor finance scandal bites hard as Close Brothers loses £122.4m with additional £33m car loan blow

Car loan provider Close Brothers has set aside a further £3m to cover compensation payments to customers, as it reports a £122.4m loss in 2024.

Weather

Northern and western UK will be cloudy and breezy today, with rain turning heavy by evening. Southern and eastern areas remain dry with lighter winds.

Tonight, heavy rain and strong winds sweep eastwards, followed by clearer skies and scattered showers developing in northwestern regions behind the rain band.

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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