CBI downgrades UK economic growth forecasts amid Budget pressures on firms

The UK economy is set to witness shallower growth than previously expected as business investment is constrained by Budget cost pressures, according to new research.

The CBI (Confederation of British Industry) has downgraded its growth projection for 2024 and 2025 and predicted an uptick in inflation in its latest economic forecast.

UK GDP (gross domestic product) will increase by 0.9% this year – down from 1% in its June predictions. It is now also expecting 1.6% growth in 2025, downgraded from an estimate of 1.9% from June. GDP growth is expected to slow to 1.5% in 2026.

Vodafone and Three’s £15bn merger approved by competition watchdog

A £15 billion merger between Vodafone and Three UK has been given the green light by the Competition and Markets Authority.

The landmark telecommunications deal can go ahead if both companies agree to invest billions to roll out a combined 5G network across the UK, the watchdog said.

The companies have also been told to offer shorter-term customer protections which would require the merged company to cap certain mobile tariffs for three years.

Volkswagen’s new Transporter to start from £30,995

Volkswagen has confirmed that its new Transporter will cost from £30,995 when it goes on sale next year.

The seventh-generation Transporter aims to bring even more practicality and is joined by an electric version, with both available to order from January 2025.

It’ll be available in three trim levels, too, with Commerce, Commerce Plus and Commerce Pro bringing different levels of equipment. Kombi, Shuttle and double-cab variants will also be there to choose from alongside standard and long wheelbase options.

The markets

London’s FTSE 100 was left treading water on Thursday as gains for insurers helped offset a sharp drop in shares for retail giant Frasers.
It lifted 13.57 points, or 0.16%, to close at 8,349.38 – with Hiscox, Admiral and Aviva among the day’s biggest risers.

It was a stronger day of trading for other top European stock markets. In Paris, the Cac 40 rose 0.37%, and in Frankfurt, the Dax was up 0.63% at close. Over in New York, the S&P 500 was more or less flat, while Dow Jones was about 0.3% lower by the time European markets closed.

The pound was strengthening against the US dollar, gaining 0.4% against the currency at 1.275. While sterling was down around 0.1% against the euro, at 1.207.

Starmer says targets will ‘inject ambition’ into UK

The prime minister has said his targets for change will ‘inject ambition back into Britain’ as he is set to meet regional leaders across the UK.

Sir Keir Starmer is due to meet leaders from the devolved nations and Ireland at the British-Irish council meeting in Edinburgh on Friday, where they will discuss climate change and the net-zero transition.

The talks are expected to cover the opportunity clean power presents for the economy and how to share best practice across the British Isles.

Voters believe UK should prioritise EU trade over the US, poll reveals

Voters believe the UK should prioritise its relationship with Europe over the US, a poll has revealed.

Some 44% of people think Britain’s economic future lies with its closest neighbours in the EU, compared with 19% who think the government should prioritise links with the US, a YouGov poll commissioned by Best For Britain showed.

The poll of more than 4,300 people was carried out between November 25 and 27, and comes as president-elect Donald Trump looks set to hike trade tariffs on goods entering the US. Best for Britain’s polling shows that more Britons trust the EU, at 49%, than the US, on 30%.

Thursday on Car Dealer

Law-breaking motorhome dealer avoids jail after court hears business would suffer without him

Scottish motorhome dealer Christopher Dickson, repeatedly caught driving while disqualified, has narrowly avoided jail due to his business employing 27 people. Instead, Perth Sheriff Court imposed a curfew, electronic tagging, and a 40-month driving ban.

New car registrations fall as carmakers race to reach tough ZEV mandate

New car registrations fell 1.9% in November, with EV sales rising 58.4% to meet ZEV mandates. SMMT urged government support, citing weak EV demand, infrastructure needs, and unsustainable incentives as challenges to meeting future zero-emission vehicle targets.

Lloyds boss hits out at Court of Appeal finance ruling which has sparked ‘investability problem’

Lloyds Bank CEO Charlie Nunn warns of an ‘investability problem’ in motor finance following an Appeal Court ruling favouring borrowers, disrupting decades of regulation. Lloyds allocated £450m for potential compensation amid investor concerns over mounting sector uncertainty.

Used car supermarkets expanding stock inventories with younger vehicles to drive up profits

Used car supermarkets boosted stock levels in November, focusing on younger vehicles under two years old, increasing their share from 7% to 12%. This shift raised average prices to £17,038 while maintaining strong sales performance, prioritising profitability.

Weather

Today will start dry and bright with hazy sunshine before turning cloudy from the west, reports BBC Weather. The cloud will bring heavy rain and strong winds as Storm Darragh pushes in. Temperatures will be around seven in the morning and 13 degrees when the storm arrives.

The storm will push eastwards tonight with the strongest wind gusts in Northern Ireland and Irish Sea coasts.

• Car Dealer Live 2025: Book tickets now
• Join our breaking news WhatsApp group
• Sign up for daily email Car Dealer news bulletins
• Listen to the latest Car Dealer Podcast
• Read the latest digital issue of Car Dealer Magazine

The post Dec 6: UK economy downgraded; Vodafone and Three merger green light; VW Transporter prices appeared first on Car Dealer Magazine.