Electric vehicle targets not working as intended, says Business Secretary
Plans for boosting the number of electric vehicles in the UK are not working as intended, the Business Secretary has said on the day Vauxhall’s owner announced it would close its factory in Luton.
Jonathan Reynolds told car manufacturers on Tuesday night he was “profoundly concerned” about how policies meant to phase out new petrol and diesel vehicles by 2030 were operating, and would consult on “a better way forward” while still keeping the target.
His comments in a speech to the Society of Motor Manufacturers and Traders (SMMT) follow Vauxhall-owner Stellantis’s announcement that it will close its van-making plant in Luton, putting 1,100 jobs at risk.
UK’s financial watchdog is ‘incompetent’ and ‘dishonest’, MPs and peers claim
The UK’s financial watchdog has been condemned as ‘incompetent’ and ‘dishonest’ by a group of MPs and peers who warn the body needs an urgent overhaul.
A cross-party parliamentary group, comprising 30 MPs and 14 peers, produced the damning report after examining the Financial Conduct Authority (FCA) for three years.
The report, which will be presented in Parliament on Tuesday, drew from the testimony of 175 individuals including former employees, scam victims and whistleblowers. ‘The picture painted is not pretty,’ it concludes.
Pace of electric vehicle transition could ‘devastate’ car industry – trade body
The current transition to electric vehicles could have a ‘devastating’ impact on the automotive industry, the SMMT has warned.
The trade association said the market has failed to keep step with the targets set out in the Government’s zero emission vehicle mandate.
In new analysis, SMMT found weak demand for electric vehicles (EVs) combined with ‘the need to fulfil ever-rising sales quotas’ will cost the industry some £6bn this year, and called for ‘urgent market intervention’.
This has the ‘potential for devastating impacts on business viability and jobs’, SMMT said.
Halfords warns it may raise repair garage prices after £23m cost hit from Budget
Retailer Halfords has signalled it may look to raise repair garage prices as it warned that Budget measures will send its wage bill soaring by around £23m.
The firm said the cost implications of next April’s rise in national insurance contributions (NICs) and the minimum wage increase were ‘particularly acute’ given its workforce of more than 12,000, while it also said the impact of Budget moves on consumers was ‘unclear’.
Halfords said only around £9mof the extra cost burden was already included in its plans for 2025-26 and mitigated.
UK ready for ‘all eventualities’ if Trump launches trade war, says Reynolds
The UK is prepared for ‘all eventualities’ if Donald Trump slaps import tariffs on goods from Britain, Trade Secretary Jonathan Reynolds said.
The US president-elect has already announced plans to hit China, Canada and Mexico with tariffs as part of his efforts to crack down on illegal immigration and drugs.
But he has indicated he is prepared to use tariffs far more widely as part of his plan to protect American industry.
The Business Secretary Jonathan Reynolds is set to announce a consultation on easing the Zero Emission Vehicle (ZEV) mandate during the SMMT annual dinner. The mandate requires carmakers to ensure 22% of new cars sold in 2024 are zero-emission, increasing to 80% by 2030. The proposed changes aim to address industry challenges and maintain UK competitiveness while meeting environmental goals. Some argue the existing mandate supports green investments, but others highlight its strain on manufacturers.
Vauxhall’s Luton plant will close in April 2025, risking 1,100 jobs. Stellantis, its parent company, plans to transfer hundreds of roles to Ellesmere Port, backed by a £50m investment in the Cheshire site for electric van production. Efforts include relocation support and retraining for affected workers, while Stellantis collaborates with local authorities to find alternative job opportunities. The closure follows other job cuts in the UK automotive sector. The government has pledged to support impacted employees.
Paul Jaconelli, founder of Romans International, received the Lifetime Achievement Award at the Used Car Awards for his decades-long contributions to the automotive industry. Aged 75, Jaconelli expressed pride in his journey since leaving school, crediting his family and dedicated staff for his success. He highlighted the importance of resilience amid challenges like market fluctuations. The recognition underscores his enduring influence in luxury car sales.
The Nissan Qashqai was named Used Car of the Year 2024 and Used Mid-Sized Car at the Car Dealer Used Car Awards. The crossover won praise for its practicality, reliability, and value. The recognition reflects the vehicle’s strong appeal to UK buyers and dealers, with bosses hailing its pioneering role in the crossover segment.
The 2024 Car Dealer Used Car Awards have recognised excellence in the UK used car industry. Hosted by Mike Brewer, winners included the Nissan Qashqai, Alexanders Prestige, and Dale Wyatt. The event celebrated diversity, customer service, and innovation, with categories highlighting achievements in small and large dealerships, service, and performance. Funds raised during the evening supported the automotive charity Ben.
Tony Holloway, a driver at Bristol Street Motors Derby Peugeot, has celebrated 30 years with the company. Starting in 1994 with a Peugeot 504 pick-up, he has since built a reputation for outstanding dedication, even using his recovery truck for 24-hour assistance. Tony credits his love for the job to the people he works with and loyal customers.
Volkswagen Group achieved a 27.6% market share in October 2024, its highest in three years, thanks to strong EV sales, including the Skoda Enyaq and Volkswagen ID models. The European car market remained flat overall, with a 0.1% decline in total sales but a 6.7% rise in EV registrations. Diesel and plug-in hybrid sales fell significantly.
Audi reveals the second-generation Q5 Sportback SUV
Audi has unveiled the second generation of its Q5 Sportback SUV, to rival cars like the Mercedes GLC Coupe and BMW X4.
From launch, the car will come with a choice of three different engines with all boasting 48V mild-hybrid technology.
The entry-level 2.0-litre turbocharged petrol produces a total of 201bhp and 340Nm of torque – while power is transmitted to the front wheels, but a Quattro all-wheel-drive system is available as a cost option.
Those who can work, must work, says Kendall in welfare overhaul announcement
People who ‘can work, must work’ Liz Kendall has said, as she set out an overhaul of the welfare system aimed at getting people back to work after suffering from long-term illness.
The Work and Pensions Secretary warned the benefits bill for sickness and disability is set to rise ‘by £26bn by the end of this Parliament’ as she announced the plans in the House of Commons.
She claimed the Conservatives had failed to create ‘good jobs in every part of the country, to deliver on the NHS and to properly reform welfare’.
Trump tariff ‘surprise’ pushes FTSE 100 into the red
The FTSE 100 retreated on Tuesday, ending its three-day run of gains, after Donald Trump said he would impose trade tariffs on China, Mexico and Canada.
London’s blue-chip index fell 33.07 points, or 0.40%, to end the day at 8,258.61.
At the end of the day in Europe, Frankfurt’s Dax index fell 0.51%, while the Cac 40 in Paris fell 0.81%. In New York a little while after markets had closed in Europe the S&P 500 had gained 0.33%, while the Dow Jones was 0.35% higher.
More heavy rain and strong winds to hit UK as Storm Conall named
More heavy rain and strong winds are set to hit parts of the UK on Wednesday with the arrival of another named storm.
Up to 50mm could fall in parts of southern England after a new weather warning for rain was issued by the Met Office.
It comes just days after Storm Bert left hundreds of homes flooded, turned roads into rivers and saw winds of more than 80mph.
