Food prices to rise by 4.2% this year amid increased costs, industry warns

Food prices will rise by an average of 4.2% in the latter half of the year as retailers battle £7bn of increased costs from the Budget, the industry has warned.

British Retail Consortium (BRC) chief executive Helen Dickinson said modelling by the trade association and industry chiefs said there was ‘little hope of prices going anywhere but up’ as retailers faced higher national insurance (NI), National Living Wage and new packaging costs.

The latest BRC-NielsenIQ Shop Price Index shows shoppers benefited from a December marked by lower inflation than last year and bigger discounts amid warnings both are likely to ‘become a thing of the past’.

3,500 electric vehicles ordered by BT

Telecoms giant BT has announced a huge order for thousands of new electric vehicles.

The company said the 3,500 new vehicles is the UK’s largest ever commercial electric vehicle fleet order, which will support the upgrade of broadband and mobile networks.

BT Group said the move will mean it has the largest fleet of electric vehicles (EVs) in the UK, with nearly 8,000 by the time the company’s latest order is complete in 2026.

Skoda Enyaq refreshed with new exterior design and upgraded technology

Skoda has released its second-generation Enyaq, introducing a raft of changes to the EV’s design and technology.

The car’s exterior now uses the brand’s ‘Modern Solid’ design – first seen on the smaller Elroq – which includes an illuminated ‘face’ and the ‘Skoda’ letters applied in dark chrome. All cars now come with heated front seats and steering wheel, alongside tri-zone climate control, predictive adaptive cruise control and an electric boot. A number of interior ‘Design Selections’ are available, too, which incorporate different colours and materials.

As before, Enyaqs will come with 59kWh and 77kWh battery, badged 60 and 85, and all-wheel drive variant called 85x. SE L, Edition and Sportline grades will be available; prices have yet to be announced.

The markets

London’s stock markets faltered on Wednesday, with the FTSE 250 slumping to a five-month low – down 2% – and the pound weakening as UK long-term borrowing costs continued to spike. The FTSE 100, meanwhile, was treading water, closing just 5.75 points, or 0.07%, higher at 8,251.03.

In Paris, the Cac 40 slid 0.49% on Wednesday, and in Frankfurt, the Dax closed 0.05% lower. The S&P 500 and Dow Jones indices were more or less flat.

The value of the pound slid by 1% against the US dollar, at 1.2355, the lowest level since April last year. Sterling was also down 0.6% against the euro, at 1.199.

UK plans world’s first sanctions regime tackling people smuggling gangs

New sanctions will target the finances of people smuggling networks as part of efforts to stop migrants crossing the English Channel.

The planned measures are intended to disrupt the flow of money and make it harder for ringleaders to profit from the deadly trade.

It will be the world’s first standalone sanctions regime dedicated to targeting irregular migration and organised immigration crime.

MPs reject Tory bid to launch another grooming gang inquiry

MPs have rejected a Conservative bid to push for another national inquiry into grooming gangs by 364 votes to 111.

The government’s draft child protection legislation cleared its first Commons hurdle on Wednesday following a bitter Prime Minister’s Questions in which Tory leader Kemi Badenoch said failing to back a probe would fuel concerns about a ‘cover-up’.

The Conservatives had tabled the motion to the Children’s Wellbeing and Schools Bill demanding a new national inquiry into gangs which, if approved, would have prevented the legislation from making progress.

Wednesday on Car Dealer

Car dealer Peter Vardy announces £10m losses following ‘most significant year of transformation’

Peter Vardy Group reported a £10.93m pre-tax loss in 2023, following significant strategic changes, including closing used car supermarket sites and focusing on luxury brands. Despite short-term costs, the group anticipates long-term sustainable growth and new opportunities.

Rolls-Royce injects £300m into Goodwood factory as bespoke cars hit new record

Rolls-Royce will invest £300m to expand its Goodwood factory following record bespoke car sales in 2024. With 5,700 cars produced, increased customisation demand, and a growing EV lineup, the expansion secures future growth and innovation at its UK base.

From engines to electrics: The most common and pricey used car issues of 2024

Used car repair costs rose 15% in 2024, averaging £528.05 due to supply chain disruptions, labour rates, and sealed component designs. Electrical issues dominated claims, with water pumps, alternators, and batteries common culprits. High-cost repairs impacted several major brands.

Lookers puts controversy to one side as it agrees long-term partnership with Cox Automotive

Lookers signed a five-year deal with Cox Automotive for a fully integrated remarketing programme. The partnership aims to enhance profitability through digital and physical auctions, logistics, and valuation solutions, helping Lookers recover after a challenging 2024 under new Canadian ownership.

Close Brothers appoints new chief executive as car finance sector faces looming crisis

Close Brothers appointed Mike Morgan as chief executive after Adrian Sainsbury resigned due to medical leave. Morgan takes charge amid a looming £30bn motor finance compensation crisis, with a key Supreme Court ruling on commission mis-selling expected in 2025.

Weather

Another cold day with snow showers in northern Scotland, reports BBC Weather, while western England, Wales and Northern Ireland may see the odd flurry early on. It’ll be bright and dry elsewhere, temperatures will struggle to better three degrees.

A clear and dry night for most. Cold in all areas; the far north of Scotland could see temperatures falling to minus 17. Cloud and rain will push into the far south-west later.

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