6:41 am, March 27, 2025
Growth forecast halved this year in blow to Reeves
Rachel Reeves has been dealt a blow after the budget watchdog halved its forecast for economic growth, forcing her to cut welfare and squeeze Whitehall budgets.
The chancellor blamed ‘increased global uncertainty’ and could face further headaches if US president Donald Trump pushes ahead with his plans to slap tariffs on imports, potentially triggering a global trade war.
The Office for Budget Responsibility halved its forecast for growth in gross domestic product in 2025 from 2% to just 1%, due to a ‘lack of recent momentum and waning domestic confidence’.
Trump tariffs could cut growth and wipe out chancellor’s headroom, OBR warns
Donald Trump’s threatened tariffs could wipe out Rachel Reeves’s headroom and knock a percentage point off GDP, the Office for Budget Responsibility has said.
The US president has repeatedly threatened to impose wide-ranging tariffs on foreign goods that could amount to 20% on British goods and come into effect next week.
In its economic forecast published on Wednesday, the OBR said the most ‘severe’ scenario, in which the UK and other nations retaliated to the imposition of tariffs, would see GDP 0.6% lower than forecast this year and 1% lower next year.
Porsche boosts range of Taycan with larger battery
Base versions of Porsche’s electric Taycan have gained an increase in range courtesy of a larger battery.
Both Taycan and Taycan 4S cars now get a Performance Battery Plus setup, which increases the battery capacities of both cars from 89kWh to 105kW, adding around 50 miles of range as a result. It means that the range for the standard Taycan now stands at 421 miles.
The base Taycan has also been given a broader level of standard equipment, including 19-inch ‘S Aero’ wheels, while the interior of the car can now be finished in leather-free Peipta or Race Tex material for a more upmarket feel.
The markets
The FTSE 100 was in positive territory on Wednesday as traders welcomed easing inflation and digested the chancellor’s spring statement. It finished 25.79 points, or 0.3%, higher to end the day at 8,689.59.
The Cac 40 ended 0.96% lower for the day and the Dax index was down 1.14%. Stateside, the key technology sector had a weak start to trading over concerns related to efforts from China’s government to boost its chip-making companies.
The pound was down 0.37% at 1.289 US dollars and was down 0.31% at 1.195 euros when London’s markets closed.
Ministers free up public land for thousands of new homes
Thousands of new homes will be built on land owned by the Ministry of Defence and Network Rail, ministers have announced, in a drive to meet the government’s housebuilding goals.
Ministers will launch a new cross-government taskforce, involving officials from the MoD, Treasury and Ministry of Housing, Communities and Local Government, aimed at speeding up housing development on publicly-owned land.
Surplus defence land will pioneer the scheme, with plans to build several thousand homes on sites in North Yorkshire, Nottingham and Cambridgeshire in coming years. Network Rail is, meanwhile, setting up a development company to build as many as 40,000 homes on its estate over the next decade.
Easter eggs up to 50% more expensive than last year
Easter eggs have gone up in price by as much as 50% on last year while shrinking in size, according to an investigation.
The price of chocolate has risen by 16.5% in a year – compared to a 4.4% increase for supermarket food and drink overall – according to inflation tracking by Which?. It comes after a steep fall in global cocoa production, driven by higher temperatures hindering the quality and quantity of beans, started driving wholesale costs to record highs.
An 80g pouch of Terry’s chocolate orange mini eggs at Lidl, for example, cost 99p in the run up to Easter in 2024 but has gone up to £1.35 while shrinking to 70g – meaning a price rise of 56% per 100g. The same product, which originally cost more at other supermarkets, has gone up by 51% at Asda, 37% at Sainsbury’s and 14% at Tesco.
Wednesday on Car Dealer
Used car salesman avoids jail for handling stolen Mercedes after dragging brother into dodgy deal
Used car salesman Jake Bush avoided jail after admitting to handling a stolen Mercedes. Despite suspecting it was stolen, he attempted to sell it, involving his brother. Police stopped the car on false plates, leading to their arrest. Both pleaded guilty.
Nissan announces next three electric vehicles in its line-up to be updated
Nissan will launch two EVs in 2025: an electric Micra and a third-generation Leaf, built in Sunderland. The Juke EV follows in 2026. Nissan aims to electrify its European lineup, enhancing e-Power hybrids for a more EV-like driving experience.
Vertu opens second BYD dealership with new Gloucester site now up and running
Vertu has opened its second BYD dealership in Gloucester, expanding the Chinese brand’s UK presence. The modern showroom features a robotic assistant and a service center. Five new jobs were created, with Robert Grant as general manager. Vertu plans further growth.
Weather
Today, Scotland and Northern Ireland will see heavy rain and strong winds, while southern areas stay drier with cloudy skies in the west and sunshine in the east, reports BBC Weather. Temperatures will hover around 14 degrees before turning a little chillier over the next few days.
Tonight, rain clears southeastward, leaving breezy conditions with clear spells, patchy clouds, and scattered showers.
