Business news live: Lifetime ISA facing reform and financial advice rules get ‘once in a generation’ overhaul

The UK’s economy has been confirmed as having grown by 0.7 per cent in the first quarter, January to March, with services and production the main contributors in what was a big boost in the early part of the year for Rachel Reeves and Labour’s plans for growth.

However, GDP is estimated to have fallen 0.3 per cent in April, largely through services output, and the UK - like much of the rest of the world - has faced huge uncertainty since then through factors such as Donald Trump’s tariffs, higher than expected inflation and continued escalations in the MIddle East.

Elsewhere, in stock markets the FTSE 100 grew slightly last week, but dropped again on Monday. The price of oil steadied across the weekend and into Monday, as investors began to look for risk-on assets once more.

Follow The Independent’s live coverage of the latest stock market and business news here:

Business news live - Monday 30 June

• UK economy grew 0.7 per cent in first three months of 2025
• Financial advice shake-up could see millions accessing targeted support for first time
• UK-US reduced tariff agreement comes into force for vehicles today
• Lifetime ISA facing reform over 'nonsensical' penalties causing savers to lose money

Business news live - Monday

16:35 , Karl Matchett

US stocks are not exactly flying, but they are certainly rising - the S&P 500 is up 0.19 per cent and the Nasdaq slightly lower, as we depart this afternoon.

That’s it for us from today but we’ll be back from 7am tomorrow so do join us then. Bye for now!

Business news live on Monday

07:54 , Karl Matchett

Good morning all and welcome to another week in the world of business and finance.

Lots to look at across the week and we’re starting with the UK economy after the latest figures emerged.

Hope you had a good weekend - let’s get back into it.

UK economy grew by 0.7 per cent in Q1

08:06 , Karl Matchett

From January to March of this year, the UK economy grew 0.7 per cent - in large part supported by production and services.

It’s already expected that a slowdown is to be seen for April, and a lot has happened since then - tariffs, Middle East missiles, trade deals, inflation and more - but Thomas Pugh, chief economist at RSM UK, still expects overall annual growth to come in positive.

“There will be an inevitable slowdown in Q2 (April-June), but we think underlying growth is still positive and expect annual growth of a little over 1 per cent.

“Although headline growth remained at 0.7 per cent at the start of the year, there was a significant change in the drivers of growth. Consumer spending was revised up while total investment was revised down from 2.9 per cent to 2.0 per cent. This makes sense, as the huge jump in the saving rate had seemed at odds with strengthening consumer confidence and the improvement in consumer-facing services.

“Looking ahead, Q2 will look substantially worse than Q1 as there is some payback from activity brought forward to avoid taxes and tariffs. We are expecting growth of 0.2 per cent q/q, but underlying growth remains positive. The big question now is whether the recent string of weak data in retail sales and employment is a one-off, due to the initial shock of tax increases and tariffs, or whether it’s the start of a new trend. We suspect it’s more likely to be the former. Now that uncertainty has started to recede, consumer confidence is rebounding, and business surveys point to the worst of the labour market pain being behind us.

“That said, the economy is facing more headwinds in the second half of the year than it did in Q1, uncertainty remains elevated, inflation will be around 3.5 per cent and wage growth will probably slow further.

“That means growth is unlikely to get back to the heady heights of Q1’s 0.7 per cent anytime soon. Overall, we expect growth of around 1.2 per cent this year.”

Financial advice regulations overhauled to bridge 'advice gap'

08:29 , Karl Matchett

The FCA has announced an overhaul of financial advice regulations, meaning millions may now have access to guidance they previously could not afford or were unsure about getting.

In principle, the idea should see “targeted support” bridge the gap between paid-for individual financial advice, and the usual free guidance which is broad-spectrum and not necessarily relevant to any individual.

Sarah Pritchard, deputy chief executive of the FCA, said: “We want to help consumers navigate their financial lives and plan for the long term. Some of the most difficult financial decisions we face are how to save, invest and prepare for a comfortable retirement.

“These once-in-a-generation reforms will help people navigate their financial lives and give them greater confidence to invest. This is a win-win for consumers and firms alike.”

More on targeted support can be found here.

FTSE 100 opens up after positive end to last week

08:45 , Karl Matchett

A new week has started in the stock markets and, following a strong finish to last week, the FTSE 100 is slightly up this morning at +0.14 per cent.

Defence firms Rolls Royce (+1.8pc) and Babcock (+2.29pc) are the leaders in early trading.

France’s CAC 40 is flat and Germany’s DAX is up around the same margin as the FTSE 100.

US tariff relief for UK carmakers and aerospace comes into force

09:00 , Karl Matchett

Monday marks the day that tariff cuts for car and aerospace sectors coming into action.

The deal is part of the UK-US trade agreement, with vehicle manufacturers now seeing a 10 per cent tariff quota rather than 27.5 per cent, and the aerospace sector seeing no levy at all.

Sir Keir hailed the “historic trade deal” with the US, clinched after Donald Trump imposed the import taxes as part of his “liberation day” tariffs on countries across the world.

More details here:

US tariff relief for UK carmakers and aerospace comes into force

Lotus insist no plans to leave UK

09:20 , Karl Matchett

More on vehicle manufacturers now after a statement from Lotus Cars revealed no plans to depart the UK, despite speculation to the contrary.

Business secretary Jonathan Reynolds was due to speak to the company across the weekend.

“Lotus Cars is continuing normal operations, and there are no plans to close the factory,” a statement said.

“We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.

“We have invested significantly in R&D and operations in the UK, over the past six years. Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage.”

Lotus is majority-owned by Chinese multinational Geely and employs more than 1,200 people in Norfolk.

Lloyds launch new cash bonus for switching current account

09:40 , Karl Matchett

Lloyds Bank have announced their latest launch of a cash bonus switching offer to attract new customers - and in terms of an up-front fee, it’s a market leader.

The high street is offering £185 for eligible new customers who join using the CASS service for a Premier or Club Lloyds account.

Additional benefits across the two account types can include access to a higher rate savings account of 6.25 per cent and perks such as a year of Disney plus or cinema tickets.

Terms apply and the offer starts tomorrow.

WH Smith to get £12m less from store sales than expected

10:01 , Karl Matchett

WH Smith decided earlier this year to sell off its high-street stores, you may remember, focusing instead on its travel area shops such as airports.

Modella bought the others and WH Smith forecast initially a £52m gross cash figure from the sale but a “more cautious” environment among stakeholders and “a period of softer trading, has resulted in a reduction in the ongoing cash flow of the business.”

That means they now expect only up to £40m gross from the disposal.

Oil, gold prices and pound-dollar rate check

10:20 , Karl Matchett

Last week it was all about the commodities, so how are they faring today?

Brent Crude is down 0.14 per cent having dropped slightly over the weekend too, leaving it at $66.66. Bet environmental groups will love that.

Gold is slightly up, 0.55 per cent to $3,305 - that’s still way below the $3,431 close set in mid-June or any of the peaks earlier this year as the metal continually set new all time highs.

Finally, a quick look at the GBP:USD exchange rate, which is down 0.1 per cent.

Currently, £1 is $1.3700 - a reminder that in early January, it was below $1.22. Quite some change - this is the highest it has been since late 2021/early 2022.

Calls to reform Lifetime ISA over ‘nonsensical’ rules causing savers to lose their own money

10:38 , Karl Matchett

MPs have warned that those who invest in a Lifetime ISA (LISA) may get back less money than they put into the scheme.

LISAs are a product for first-time homebuyers or savers for pensions where they can put up to £4,000 in per year and the government will top up that figure by an additional 25 per cent. They can be opened by any adult under 40 in the UK and contributions count towards each person’s overall £20,000 annual ISA allowance.

However, their dual-nature has long been a target of criticism, as well as the complex criteria for using the funds, which has led to many people losing more than they initially save.

All the details here:

Lifetime ISAs cause some savers to lose their own money and need reform, report warns

Would Shell and BP creating a £200bn oil behemoth be a good idea for anyone?!

10:59 , Karl Matchett

Takeover or merger talk around British oil giants Shell and BP is not new, but has certainly ramped up this year amid diverging fortunes.

Reports on Wednesday that the former were in talks to bid for the latter were quickly rejected, but speculation and questions remain.

Combining the third- and eighth-biggest firms on the London Stock Exchange to create what would be the biggest FTSE 100 firm would generate plenty of interest. And a combined £211bn market capitalisation - total company values by share price - would be a fine look on the face of it.

But there’s a lot more to consider than just a mega-merger’s size and, examining key areas in detail, the question could be asked...would it really benefit many key stakeholders at all right now?

Here’s Karl Matchett’s analysis:

Would Shell and BP creating £200bn oil behemoth actually be good - for anyone?

Tik Tok sale saga set to end in July

11:23 , Karl Matchett

In case you missed it over the weekend, President Trump believes TikTok will be bought soon and we can expect details of the group set to purchase it in mid-July.

“We have a buyer for TikTok. I think I’ll need probably China approval and I think President Xi will probably do it,” Mr Trump said.

“I’ll tell you in about two weeks . . . It’s a group of very wealthy people,” he continued, as reported by the FT.

Can you really afford car finance? A money editor’s guide

11:41 , Karl Matchett

One of the big decisions families or individuals may have to take when it comes to spending money is on how to finance a new car purchase.

While some may be in a position to fully buy outright, it is estimated that over 80 per cent of new car purchases are made using some form of financing - well over two million cars a year, old or new, are bought this way in the UK.

Here’s everything you need to know around what type of car finance agreement might suit your needs.

Can you really afford car finance? A money editor’s guide

Lloyds offer £185 cash for new current account customers

12:00 , Karl Matchett

The battle for current account customers has seen a new market-leading cash offer arise, with Lloyds Bank offering £185 to switch to them.

Lloyds are offering the cash switch offer from 1 July to anyone opening Club Lloyds or Lloyds Premier accounts after moving their current account from another bank using the Current Account Switch Service (CASS).

You can also get a higher interest rate savings account and other perks - the full details are here, along how it compares to some other current offers for those seeking a new bank or building society.

Definitely worth a look if your bank doesn’t offer much of use!

Major UK bank will now pay you £185 to switch to them

Nvidia chief Jensen Huang sells shares for first time since September

12:20 , Karl Matchett

The CEO of Nvidia, the world’s most valuable public company, sold some of his shares last week for the first time since September.

Jensen Huang is believed to own around 93 million shares of the company, and through a pre-arranged trading plan agreed months ago, is eligible to sell up to 6m in this period.

Nvidia shares hit a new all time high last week and are projected to trade at $159 when markets open later today.

FTSE 100 risers and fallers

12:53 , Karl Matchett

Here’s a quick check-in on the FTSE 100 today and Europe’s stock markets, with the UK’s benchmark index now down 0.17 per cent for the day.

Risers

• Rolls Royce +1.7 per cent
• Imperial Brands +1.59pc
• Coca Cola HBC +1.22pc
• AutoTrader Group +1.22pc
• The Sage Group +1.20pc

Fallers

• Intermediate Capital Group -2.78pc
• Experian -2.23pc
• Persimmon -2.15pc
• Barratt Redrow -2.07pc
• Taylor Wimpey -1.80pc

European stock markets down, US stocks to rise

13:00 , Karl Matchett

And on the continent it’s a similar story.

France’s CAC 40 is flat, currently 0.02 per cent above its starting point having bobbed about on both sides of the line today.

Germany’s DAX is down 0.17 per cent, with the Euronext 100 at the same level and Spain’s IBEX 35 flat.

In futures markets, the S&P 500 in the US is projected to rise 0.47 per cent and the Nasdaq 0.67 per cent when markets open later this afternoon.

Fuel margins remain high despite lower prices at the pump

13:30 , Karl Matchett

Drivers are still being hit with high fuel margins despite lower prices at the pump, the competition watchdog has said.

The Competition and Markets Authority (CMA) said retailers’ margins – the difference between what they pay for fuel and what they sell it at – remained high compared to historic levels.

Fuel prices across the UK fell for both petrol and diesel over the three months to the end of May by 7.6 pence per litre (ppl) and 8.4 ppl respectively.

But the CMA found that fuel margins were similar to the high levels seen during its road fuel market study – a review of the market to understand the factors influencing fuel prices undertaken in 2023 – which suggested overall competition in the UK’s road fuel retail market remained “weak”.

Fuel margins remain high despite lower prices at the pump, watchdog finds

rgin Media O2 to pay £343m to Vodafone

14:00 , Karl Matchett

Virgin Media O2 will pay £343m to Vodafone for a section of their mobile network spectrum.

That allows Virgin to keep capacity as connectivity demands grow, particularly around London, reports City AM.

Ofcom still have to approve the deal which would give Virgin O2 about 30 per cent of the UK’s total mobile spectrum.

Revealed: Two-thirds of small businesses would now vote Remain after profits hit by Brexit

14:30 , Karl Matchett

Two-thirds of small and medium UK businesses would now vote to remain in the EU after seeing their profits harmed by Brexit, new analysis shows.

A survey of more than 500 importers and exporters found 66 per cent would choose to stay in the bloc, up from 53 per cent who voted that way during the referendum in 2016. The percentage of those who would vote to leave was 29 per cent, down from 32 per cent.

The findings, from research carried out by Critical Research, appear to be a direct response to the fact that costly rising regulations and red tape burdens have harmed the profitability of their businesses.

65 per cent of responders said the increased demands on them to comply with trade regulations have “significantly” affected their overall profits. More than half (56 per cent) said Brexit has directly made their business less-competitive within the context of the global marketplace.

Full details here:

Two-thirds of small businesses would now vote Remain after profits hit by Brexit

US stocks rise as Trump trade deals come into focus

15:18 , Karl Matchett

Stocks in the US have largely risen, as Donald Trump’s trade deals start to come into play.

The UK-US agreement is live from today and the president has previously said a wave of new deals will be announced soon too, while a trade agreement with China is said to be completed.

The S&P 500 is up 0.23 per cent, with the Nasdaq rising the same level and the Dow Industrial even higher with a 0.32 per cent surge in early trading.

Ineos given reprieve by government over £23m net zero charges

15:30 , Karl Matchett

Sir Jim Ratcliffe’s company Ineos has been given a reprieve by the UK government over a £23m net zero payment labelled “bonkers”.

A ruling over a redeveloped site being classed as a new development - being changed to run on hydrogen rather than gas - meant it was due to cost £23m on carbon credits, despite reducing the site’s emissions by 75 per cent.

Whitehall officials have now agreed to support Ineos, the Telegraph reports.

Fears mount over UK fuel supplies after Lindsey oil refinery owner collapses

15:45 , Holly Williams, PA

The group behind one of Britain’s largest oil refineries has collapsed into administration, sparking fears over oil supplies and jobs.

State Oil – the parent company of Prax Group, which owns the Lindsey refinery in North Lincolnshire – appointed administrators on Monday.

A separate winding-up order has also been made against the Lindsey oil refinery and related businesses and a liquidator has been appointed.

More than 180 staff are employed by State Oil, while it is thought that around another 440 work at the Lindsey refinery.

Fears mount over UK fuel supplies after Lindsey oil refinery owner collapses

Competition authority could investigate $4.7bn Boeing deal

16:05 , Karl Matchett

The UK’s Competition and Markets Authority has opened a review into Boeing’s proposed $4.7bn (£3.4bn) purchase of Spirit AeroSystems.

A decision over a fuller investigation is expected by the end of August, but it could delay the deal or see it pulled.

Surrounding the review is whether such a takeover could negatively impact competition, be it in the UK or globally.

FTSE set to close lower as UK-US trade deal starts

16:15 , Karl Matchett

Approaching close time in the UK markets and it doesn’t appear that the official opening of the new UK-US trade deal has pushed investors to back British companies immediately.

The FTSE 100 is down 0.22 per cent today, with the FTSE 250 at the same level.

At least the UK’s smaller businesses have had a positive day - the AIM is up 0.24 per cent for Monday.

In Europe, all of the main benchmarks in France, Germany and Netherlands are down, as well as the Euro Stoxx 50. In Spain, the Ibex 35 is a rare green light today, 0.33 per cent to the good.