British car manufacturing is at a real low, as production figures for the first six months of the year fell to levels not seen since the 1950s, excluding lockdown. Tariff talk and trade deals taking time to sort played havoc with the industry from April onwards, though the UK does now have a framework deal which includes 100,000 cars to be exported to the US outside of the standard tariff rate.
In news affecting both workers and the Bank of England, the UK saw a slight “burst” of job vacancies in June, says the Recruitment and Employment Confederation (REC), with domestic businesses having recently been faltering in hiring due to National Insurance and minimum wage rises.
Stock markets rose overnight in Asia and the FTSE 100 opened at a record high today, while business could be further boosted by news Keir Starmer is set to sign a trade deal with India worth £6bn.
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Business news live - 24 July
- FTSE 100 rises above record highs as banks soar despite Lloyds drop
- Tesla shares down 6% with tough times expected ahead
- UK and India sign trade deal worth £6bn
- River Island faces threat of closure within weeks amid £10m funds gap
- EU and US close to agreeing trade deal with 15% tariffs
What does the overturning of a City trader’s fraud conviction mean for deregulation?
15:33 , Karl MatchettThe bosses who were supposed to be supervising Tom Hayes sat back and picked up their bonuses, as they always do, writes James Moore. Justice may have been served, but that doesn’t mean any lessons will be learned...
What does the overturning of a City trader’s fraud conviction mean for deregulation?
More than 300,000 benefit claimants owed money after PIP errors
15:00 , Karl MatchettHundreds of thousands of disabled people are owed money from the government after it admited to major errors while paying out the Personal Independence Payment (PIP).
More than £260 million has already been paid to make up missing funds to those who saw the benefit wrongly denied or underpaid by the Department for Work and Pensions (DWP).
But there are still more than 300,000 claimants owed money, with some payouts potentially reaching more than £2,000.
Over 300,000 benefit claimants owed money after PIP errors lead to underpayments
Government raises wind farm price guarantee
14:40 , Karl MatchettThe government has lifted the maximum guaranteed electricity price payable to wind farms.
It has risen from £102/MWh to £113 for offshore projects and to £92 from £89 for onshore.
The maximum price is not a prediction for future costs, but guarantees what developers can get for a fixed period into the future to encourage green programmes.
Lloyds boss warns Reeves against raising bank taxes
14:20 , Karl MatchettThe boss of Lloyds has warned Rachel Reeves against raising bank taxes in her autumn Budget, saying it would be at odds with the Government’s plans to drive economic growth.
It comes as the banking giant revealed its earnings beat expectations for the first half of 2025, with both customer lending and savings balances growing.
Charlie Nunn, the group’s chief executive, said raising taxes on banks is a “political decision” and the group has had “no engagement” with the Government about it.
But he highlighted the Chancellor’s Mansion House speech last week where she told of “the need for a stronger economy and needing a strong financial services sector”.
Mr Nunn said: “We therefore believe that’s the important thing to focus on and obviously, therefore, wouldn’t be consistent with tax rises.”
More from PA:
Lloyds boss warns Reeves against raising bank taxes amid growth mission
Tesla shares set to drop 6% on opening
13:58 , Karl MatchettUS stocks will be open for trading soon and Tesla shares are poised to drop more than 6 per cent.
The EV car marker saw sales drop again and Elon Musk has signalled that tough months lie ahead.
The share price will be well over 20 per cent down for the year once the market opens and they will be around $170 down from the all time high.
ITV ramps up cost cutting as profits fall
13:20 , Karl MatchettBroadcaster ITV has stepped up cost-cutting plans again as it revealed a slump in half-year profits.
The group behind hit TV shows including Britain’s Got Talent and Love Island said it was slashing costs by another £15 million, on top of £30 million previously announced, with spend on content being trimmed.
It reported a 44% drop in underlying pre-tax profits to £99 million for the six months to June 30, down sharply from £178 million a year ago.
Operating profits were 44% lower at £76 million.
But ITV said cost-cutting actions would help offset a tough advertising market.
More here from PA:
Plans for flexible energy tariffs to help households cut electricity bills
12:59 , PAHouseholds will be able to switch to flexible energy tariffs and use smart appliances to help cut electricity bills under plans set out by the Government.
Energy minister Michael Shanks unveiled the next steps to give households and businesses more freedom and choice over how and when they use energy as part of aims to make savings of up to £70 billion in system costs by 2050.
The Government wants to offer consumers new ways to take advantage of off-peak, lower electricity prices, through flexible tariffs and smart technology.
This includes helping electric vehicle (EV) drivers get discounts on their electricity when using public chargers at off-peak times.
FTSE 100 surges 1%, Europe and US stocks mixed
12:50 , Karl MatchettThe trade deal being close for the US and EU hasn’t sent markets into overdrive - it’s pretty mixed news for both in fact.
Of course some companies may be better off than others under the terms of the deal but it’s muted in some aspects overall.
The German DAX is up 0.6 per cent but in France, the CAC 40 is totally flat. Italy and Switzerland are both down.
In the US futures markets, the S&P 500 is set to open 0.1 per cent up later today, with the Nasdaq up 0.36 per cent - but the Dow Industrial is down by the same amount.
Outshining all of them today is London’s FTSE 100, up a full 1.0 per cent.
Howden Joinery and Reckitt Benckiser are the two firms leading the charge, both enjoying double digit surges for the day.
NS&I up rate of fixed-term bonds
12:30 , Karl MatchettNS&I have increased the rate of their one-year fixed term British bonds, offering 4.18 per cent.
Savers can spend between £500 and £1m on these and they can have fixed terms of one, two, three or five years.
Easy access and regular savings accounts are still available at a considerably higher rate than that elsewhere.
Laura Suter, director of personal finance at AJ Bell, says it’s essentially a rebrand of the same product an a worse rate than earlier due to interest rates going down.
“NS&I has given its British Savings Bonds a slight facelift with a small rate rise, but savers shouldn’t get too excited. The new one-year fixed-rate bonds now pay 4.18% if you opt to have your interest paid at the end, or 4.11% if you want monthly payouts. That nudges the bonds closer to the top of the best buy tables, but they’re still nowhere near leading the pack.
“These aren’t brand-new products – NS&I previously simply rebranded the Guaranteed Growth and Guaranteed Income bonds it already offered, slapped a Union Jack on them, and tweaked the rate slightly. The aim is clearly to drum up more interest by tapping into the patriotic branding, but the underlying product is very much the same.
“The rate on offer is a far cry from the original one-year British Savings Bond that launched two years ago which proved to be a sell-out success, being pulled from sale after just five weeks. But back then savers were offered a generous 6.2% – a rate that now looks like a relic from another era. With interest rates edging down and other providers trimming their fixed-rate deals, NS&I has clearly tried to find a middle ground that will be attractive enough to draw in some money but not so generous that it’s swamped by demand.
EU US close to trade deal one week before deadline
12:12 , Karl MatchettThe EU and the US appear close to confirming a trade deal at last, just a week before the deadline of 1 August brought with it a blanket 30 per cent tariff on European exports to the States.
That rate will be halved under the current plans - still higher than the UK’s 10 per cent deal - but some products such as medical devices will be lower, the Guardian reports.
Alcoholic spirits could also be given a lower tariff in time, but car manufacturers face a far bigger rate than they had previously for selling to the States.
The European Central Bank is set to pause cuts to interest rates to allow for time to take stock of the uncertainty caused by these tariffs, with rates already down to 2 per cent.
River Island facing total closure by end of August
11:28 , Karl MatchettHigh street retailer River Island is facing the immediate threat of closing down, with the company telling creditors it will run out of money by the end of August.
The firm has put a proposal forward to save itself in the short term which needs the agreement of three-quarters of creditors to proceed.
That would see River Island close 33 stores, cut rents on even more and write off some of its debts, the Telegraph has reported.
If it fails to gain the agreement, the company “will not be able to continue trading as a going concern” and “would be subject to administration or other insolvency proceedings”, said the proposal seen by the Telegraph.
River Island needs £10m in the next few weeks and £50m by the end of the year to meet its needs as a going concern.
Car manufacturing drops to 1950s levels
10:54 , Karl MatchettUK car manufacturing endured a tough first half of the year, with production levels down to the lowest in more than 70 years outside of Covid.
Car manufacturing declined by 12 per cent to 417,200 units between January and June, figures from the Society of Motor Manufacturers and Traders (SMMT) show.
That’s the lowest since 1953 other than in 2020, with tough conditions including the tariff uncertainty playing a big part.
Halving whisky tariff in India deal expected to raise almost £200m for Scottish businesses
10:29 , PATariffs on whisky being exported to India are set to be halved as part of a trade deal with the UK.
Sir Keir Starmer will welcome his Indian counterpart Narendra Modi on Thursday to sign the deal, which will see tariffs on whisky cut from 150% to 75%, and potentially dropping to 40% in the next decade.
While tariffs on soft drinks will drop gradually from 33% to 0%, the UK Government estimated a £190 million boost for Scotland as a result of the deal.
Scotch Whisky Association chief executive Mark Kent said the industry had “long championed” a deal with India, adding: “The signing of the FTA is an historic moment and is an important milestone to reducing tariffs on Scotch whisky in a growing market.
“This will contribute to the Government’s growth objective, by laying the foundations for further investment and jobs.”
UK sign £6bn trade deal with India
10:04 , Karl MatchettKeir Starmer and India’s Narendra Modi have agreed terms on a trade deal, worth an estimated £6bn in investment to the UK.
Along with economic parts of the agreement, the two will also increase efforts to tackle illegal immigration and organised crime.
Tariffs on UK products exported to India will drop to an average of 3 per cent, from 15 per cent, with products including cars, whisky and cosmetics all seeing their individual rates drop.
Business Secretary Jonathan Reynolds said the investment will “reach all regions and nations of the UK so working people in every community can feel the benefits.
“The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.”
RMT warns any raise to state pension age will be met with direct action
09:47 , Karl MatchettThe biggest rail workers’ union has warned that raising the state pension age would be met with protests and direct action.
The Rail, Maritime and Transport union said a government review had sparked fears of a big increase in the pension age.
RMT general secretary Eddie Dempsey said: “The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich.
“Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.”
RMT warns any raise to state pension age will be met with direct action
Tesla shares sink 6% as Musk warns of road ahead
09:18 , Karl MatchettTesla shares dropped more than 6 per cent out of trading hours overnight, following on from another disappointing set of financial results.
More than that, though, CEO Elon Musk has warned that the tough times are going to continue
Telsa is in a “weird transition period” he said, given EV grants ending, self-driving regulation and more.
“Does that mean we could have a few rough quarters? Yeah, we probably could have a few rough quarters … it’s not guaranteed but plausible,” he said.
Tesla and its investors have high hopes for self-driving robotaxis pushing future profits but the share price is down 17 per cent in 2025.
Wetherspoons’ sales are booming – and it has one beer to thank
09:03 , Karl MatchettJD Wetherspoon has announced a significant surge in its recent sales, driven by the exceptional performance of Guinness and a notable rebound in breakfast demand.
The pub group, which operates 794 establishments across the United Kingdom and Ireland, reported a 5.1 per cent increase in like-for-like sales for the three months ending 20 July, compared to the previous year.
Sales volumes have now surpassed pre-pandemic levels after earlier concerns about a sluggish recovery across its estate.
Beyond breakfasts, robust draught sales were highlighted, with Guinness proving particularly popular, alongside growth in wine and an improvement in spirits.
This surge in demand for the Irish stout aligns with consistent reports from Guinness maker Diageo, which has noted its rapid growth in popularity.
FTSE 100 rises - but Lloyds drops after boosting dividend payments
08:48 , Karl MatchettThe FTSE 100 is up 0.45 per cent this morning, a sharp rise carried along with most of Europe’s stock markets.
That’ll be in part because the US-EU trade deal appears close now with a 15 per cent base tariff.
In the UK companies index, several financial firms are doing well today including Barclays and HSBC, but Lloyds have dropped after this morning raising the interim dividend.
How a junior trader paid for the banking crisis – while the big bosses never joined him in the dock
08:15 , Karl MatchettThe Libor scandal 10 years ago saw Tom Hayes being found guilty and sentenced to 14 years. As his conviction is quashed, Chris Blackhurst looks at how he was made an example of for a much bigger problem, where most got off scot-free.
How a junior trader paid for the banks crisis – while the big bosses escaped the dock
FTSE 100 at record high
08:02 , Karl MatchettThe FTSE 100 closed at 9,061 points yesterday, continuing a fabulous run in 2025.
Today it looks set to continue that path to begin with, given some positive noises out of a few businesses in this morning’s earnings call and news of a new trade deal which should bring billions of investment into the country.
We’ll touch on those businesses individually in a moment but Vodafone and BT are two in the spotlight - plus we’ll delve into the noise from the other side of the Atlantic last night after Tesla and Alphabet earnings.
Business news live
07:48 , Karl MatchettGood morning and welcome to The Independent’s live business news coverage. Today we’ve got trade deal news for both the UK and the EU on the horizon, a look at earnings for the likes of Tesla and Alphabet, jobs vacancy data for the UK and plenty more.
