6:30 am, March 6, 2025
Bank of England warns of ‘substantial’ risks to UK from Trump tariffs
The governor of the Bank of England has said recent US trade policy poses ‘substantial’ risks to the UK and the world economy.
Speaking to MPs on Wednesday, Andrew Bailey said there is a ‘major shift going on in the US’ which the Bank would have to ‘take very seriously’, when quizzed about the impact of new tariffs. ‘The risks to the UK economy and the world economy are substantial,’ he said.
His comments come after president Donald Trump continued his aggressive trade plans earlier this week, targeting Canada and Mexico with import tariffs of 25%.
Government announces plans to axe oil and gas windfall tax in 2030
The government has announced plans to end the windfall tax on oil and gas profits in 2030 as it launches a consultation on the future of the North Sea energy sector.
Starting on Thursday, the Department for Energy Security and Net Zero (DESNZ) will talk to communities, businesses, trade unions, workers and green groups to develop a plan for a phased offshore energy transition in the region.
The two-month consultation will look at harnessing the North Sea’s existing infrastructure, natural assets and expertise to deploy new technologies, such as hydrogen, carbon capture and storage, and renewables.
New Volkswagen ID.Every1 previews upcoming entry-level EV
Volkswagen is giving a clearer look at its much-anticipated compact electric car with the ID.Every1 concept.
The D.Every1 – which could use the name ID.1 when it goes into production in 2027 – is targeting a price of under €20,000, or around £16,740. At this price, it would put it among some of the cheapest electric vehicles on sale in the UK.
Volkswagen has stated that the ID. Every1 will manage a range of ‘at least’ 155 miles and will achieve a top speed of 81mph courtesy of a 70kW electric motor. Measuring just over 3.8 metres in length, the ID. Every1 sits between the previous Up! and the current Polo in terms of size, yet still offers space for four people alongside a 305-litre boot.
The markets
The FTSE 100 lagged behind European markets on Wednesday, which soared after Germany paved the way for a historic increase in defence and infrastructure spending. It fell three points to finish the day at 8,755, a drop of less than 0.1%.
European markets surged after Germany said it would change its fiscal rules to unlock hundreds of billions of euros to spend on defence and infrastructure projects. The rise in shares was led by German industrial and defence firms, with the country’s Dax stock index soaring 3.6% and France’s Cac 40 rising 1.6%. Stateside, the S&P 500 was roughly level while the Dow Jones was up 0.3% as UK markets closed.
Sterling was up 0.6% against the dollar at1.2866, while it was roughly 0.9% down against the euro at 1.1939.
Healey to meet US counterpart as European leaders hold crisis talks on Ukraine
The UK defence secretary is expected to discuss the US decision to pause intelligence-sharing with Ukraine with his counterpart in Washington as European leaders hold crisis talks in Brussels on support for Kyiv.
John Healey will join Pete Hegseth on Thursday for a bilateral meeting on a possible peace plan while efforts continue to bridge a transatlantic rift over the country’s future security.
Meanwhile, French president Emmanuel Macron said he would confer with allies about the prospect of using France’s nuclear deterrent to protect the continent in the face of threats from Russia at a summit of EU leaders.
UK and Ireland set to agree enhanced co-operation at summit
The UK and Ireland are set to agree a new programme of enhanced co-operation at a summit in Liverpool.
Prime minister Sir Keir Starmer and Taoiseach Micheal Martin will lead delegations of their respective Cabinet colleagues in the first of a new series of annual UK-Ireland summits.
It is expected that they will agree a wide-ranging programme of new and enhanced strategic cooperation between Ireland and the UK, entitled UK-Ireland 2030, to be taken forward by both governments through to 2030.
Wednesday on Car Dealer
UK new car market shrinks again in February as BEVs make up a quarter of all registrations
EVs made up 25% of February’s new car sales, but overall registrations fell 1%, marking the fifth consecutive monthly decline. Fleet sales dropped 4%, while private sales grew. EV demand rose ahead of tax changes, but manufacturers face unsustainable discounting.
Used car prices rise for first time since October despite ‘softening’ EV values in February
Used car prices rose 0.5% in February, ending a decline since October, due to strong demand and limited supply. Cars sold faster, consumer confidence improved, and retailers adjusted pricing strategies. Used EV demand surged 24%, but oversupply kept prices falling.
Car dealer to close after nearly 65 years – anticipates more independent garages will follow
Isle of Man dealership Mylchreests Group will close in April 2025 after nearly 65 years, citing industry challenges. Managing director James Mylchreest expects more UK dealership closures. The company thanks staff and customers for their long-standing support and loyalty.
Used EV prices tumbled in February as second-hand Teslas dominate biggest fallers
Used EV prices fell 13% year-on-year in February, with Teslas hit hardest. The Model 3 and Model Y saw significant declines, contributing to a 22% drop in Tesla values since 2024. Dealers increased Tesla stock as prices became more affordable.
Cinch adds to network of physical used car dealerships as sporting stars visit new Derby showroom
Cinch has expanded its physical dealership network with a new Derby site, offering hundreds of used cars. Opened with England cricketers and Derby County players, the store provides a hassle-free buying experience. Cinch now operates multiple retail centres across the UK.
Relaxing ZEV mandate rules could mean there ‘aren’t enough electric cars to go round’
The ECIU warns against relaxing the ZEV mandate, arguing it would raise driving costs, stall EV adoption, and harm UK jobs. Suspending it for two years could limit used EV supply, increase petrol costs, and slow investment in charging infrastructure.
Weather
Northern Ireland and Scotland will be mostly cloudy and dry, with rain in the far north, reports BBC Weather. England and Wales start sunny but see afternoon showers in the west; temperatures will top a very mild 16 degrees.
Tonight, rain spreads from the west, heavy in places, but the northwest turns dry later. Mild temperatures throughout.
