UK long-term borrowing costs jump to highest level since 1998

The UK’s long-term government borrowing costs have lifted to their highest level since 1998, in a potential blow for the chancellor Rachel Reeves.

The yield on 30-year gilts – the return on government bonds – increased on Tuesday by four basis points to 5.22%, surpassing the spike seen in 2023.

It ramps up the pressure on the Treasury’s headroom for increased public spending, amid the prospect of higher interest costs.

Grocery spending reaches new high as inflation jumps to 3.7%

Consumers made December the busiest month for supermarkets since the pre-lockdown rush in March 2020 despite a jump in grocery price inflation, new figures show.

Household spending on take-home groceries hit a record high this Christmas at £460 on average as inflation across supermarkets jumped from November’s 2.6% to 3.7% – its highest level since March, according to analysts Kantar.

Grocery sales surpassed £13bn over the four weeks for the first time ever, as prices rose fastest across products such as chilled smoothies and juices, chocolate, confectionery and skincare, and fell across dog food, cat food and household paper products.

These are the classic cars that are predicted to rise in value in 2025

Leading specialist classic car insurance firm Hagerty has named the cars it expects to increase in value in 2025.

The classics, which range from a humble first generation Toyota RAV4 to the exotic Ferrari F355, are listed in the Hagerty UK Bull Market report.

The list reveals the cars that the company feel are on the cusp of increased interest from the classic car movement, with each car given a range of prices to help potential buyers. The latest UK report is the fifth of its type.

The markets

The FTSE 100 finished lower on Tuesday after a weak session for London’s housebuilders and banking stocks. London’s top index finished 4.38 points, or 0.05%, lower to end the day at 8,245.28.

Other main European markets advanced as banks including Deutsche Bank predicted more interest rate cutting from the European Central Bank. The Cac 40 ended 0.59% higher for the day and the Dax index was up 0.66%.

The pound was down 0.12% at 1.250 US dollars but up 0.05% at 1.205 euros.

Tory push for grooming inquiry vote ‘a shocking tactic’, Starmer warns

Sir Keir Starmer has warned Conservative MPs not to back a Commons push for a new nationwide child grooming investigation, as it prioritises ‘the desire for retweets over any real interest in the safeguarding of children’.

The prime minister said that Kemi Badenoch’s attempt to garner parliamentary support for a new inquiry, in the form of an amendment to a Bill aimed at bolstering the safety of children, was a ‘shocking tactic’.

Sir Keir’s government has faced a slew of attacks from X and Tesla owner Elon Musk in recent days after Home Office minister Jess Phillips declined a request for a nationally led inquiry in Oldham.

Police hunt killer after 14-year-old stabbed to death on London bus

Police are on the hunt for a killer after a 14-year-old boy was stabbed to death on a London bus in what police have described as a ‘horrendous’ crime.

The teenager was treated at the scene in Woolwich but died soon after medics arrived, Metropolitan Police said. No arrests have been made.

The youngster was on a route 472 bus on Woolwich Church Road near the junction with the A205 South Circular Road, close to the Woolwich Ferry.

Tuesday on Car Dealer

Time running out to book your discounted Car Dealer Live 2025 tickets

Time is running out to book your Car Dealer Live tickets at early bird prices as the discounted rate ends Friday. Tickets for our not-to-be-missed event for the motor trade – sponsored by Auto Trader – are still available at bargain rates, but these will revert to their standard prices after 5pm Friday (Jan 10).

Volkswagen remained top-selling brand in UK while MG overtook Vauxhall in 2024 sales charts

Volkswagen led UK car sales in 2024, with over 166,000 registrations. Chinese brands like BYD made significant strides, surpassing established manufacturers. Jeep, Smart, Volvo, and others saw strong growth, while Ford and Vauxhall faced major declines.

Used car supermarket HPL Motors reports profit up 15% in latest accounts

Heaton Park Garage reported a 38% increase in turnover and 2% rise in profit for the 17-month period ending March 2024, following a majority stake acquisition by Marubeni Auto Investment. Despite growth, used car margins suffered amid market challenges.

Steven Eagell Group sees profits slashed in half despite turnover topping £1bn

Steven Eagell Group’s turnover surpassed £1bn in 2023, but pre-tax profit dropped 48.6% to £14.98m. Despite challenges, including rising costs and a market slump, the group saw record revenue from car sales, acquired 12 dealerships, and increased staff.

Auto Trader hails ‘positive trends’ as used car market enters 2025 despite December dip

In December 2024, the average price of a used car fell 0.6% to £16,649, marking a stable market despite seasonal trends. Year-on-year, prices dropped 4.1%, the smallest decrease of the year. EVs saw significant price drops, while demand remained strong.

Weather

A band of rain will push across the south of England today, possibly bringing localised sleet and snow. It’ll be dry with winter sunshine further north. Temperatures will struggle to get above three degrees.

A very cold night with a sharp frost in all areas – temperatures could be minus five in northern areas.

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