UK interest rates set to be held at 4.75% after inflation rises again

UK interest rates are expected to remain at 4.75%, with rising inflation and wage growth persuading the Bank of England’s policymakers to keep rate cuts on pause, experts think.

The Bank will announce the results of its next policy decision on Thursday.

The verdict will come a day after new official figures showed UK inflation increased in November for the second month in a row.

Government considering taking over Horizon shortfall scheme from Post Office

The government is considering taking over responsibility from the Post Office for redress schemes for subpostmasters impacted by the Horizon scandal, a minister has said.

Business minister Gareth Thomas gave a statement to MPs where he said that £79m has been paid to 232 people from the Horizon convictions redress scheme, but that the government had ‘concerns’ about the Post Office’s ability to deliver the Horizon shortfall scheme and the overturned conviction scheme.

The Horizon Convictions Redress Scheme was launched by the government to enable people wrongly convicted of a crime because of the Horizon IT system used by the Post Office to apply for financial redress.

GWM Haval Jolion will be one of the cheapest new SUVs on the market

GWM has revealed the price of the first model to be launched in the UK under its Haval brand.

The new Jolion will start from £23,995 and have three trim levels and four exterior colour choices. Only one powertrain will be offered – a 1.5-litre petrol engine mated to a n electric motor to give 182bhp and up to 620 miles of driving range.

GWM Ora dealers will be rebranded to simply GWM by February 2025 as the firm moves away from only offering Ora models to British buyers.

The markets

London’s top equity markets wobbled after inflation lifted to its highest level since March amid investor caution over key central bank votes. The FTSE 100 finished 3.91 points, or 0.05%, higher to end the day at 8,199.11.

In mainland Europe, the other main markets also made marginal gains despite some weak earnings updates. The Cac 40 ended 0.26% higher for the day and the Dax index was up 0.07%.

The pound was down 0.11% at 1.269 US dollars but up 0.08% at 1.212 euros.

Starmer faces pressure from own party over Waspi decision

Sir Keir Starmer is facing upset from his own party over the government’s decision to not award compensation to Waspi women.

A former shadow employment minister is among those urging the prime minister to ‘reconsider’ the decision, while another senior MP said that a lot of MPs are ‘very unhappy’.

The prime minister has insisted that taxpayers could not afford the £10.5bn compensation package, but there have been calls for a vote or for Number 10 to reconsider.

UK announces new funding for Ukraine amid ‘critical’ situation

The UK has pledged a new £225m package of support for Ukraine after the defence secretary said the situation in the country is ‘critical’.

On a trip to Kyiv, John Healey said that the UK will ‘step up’ on international leadership on Ukraine in 2025, after prime minister Sir Keir Starmer urged allies to maintain their support.

The package announced on Thursday involves £186m for military equipment through the International Fund for Ukraine, including £92m for Ukraine’s navy and £68m for air defence equipment.

Wednesday on Car Dealer

Lotus buyers left in limbo as brand admits it cannot honour ‘majority’ of PCH and BCH offers

Lotus cannot honour most previously agreed finance deals due to funding withdrawal by Drivalia UK Ltd, leaving customers uncertain about car deliveries. Lotus is working on solutions with partners to minimise disruptions and resolve the issue as quickly as possible.

Barclays loses bid to overturn landmark Financial Ombudsman Service decision on motor finance

Barclays failed to overturn a Financial Ombudsman Service ruling involving undisclosed commission in a car finance deal, prompting an FCA inquiry into unfair loan practices. Barclays plans to appeal, while broader legal challenges in the sector continue.

Family-run used car dealership appoints insolvency practitioners weeks on from shock closure

Family-run Swanson Motor Company has entered insolvency proceedings after closing suddenly, citing unforeseen circumstances. The dealership, burdened with over £1.5m in debts, has likely begun liquidation following a creditors’ meeting, with insolvency practitioners now overseeing the process.

Dealer group Arnold Clark snaps up 99-year-old Wingrove Motor Company

Arnold Clark has acquired Wingrove Motor Company, a nearly century-old family-run dealership in the North East. Wingrove’s owners are stepping away from motor retailing. Arnold Clark has opened two locations, continuing Wingrove’s legacy with new and used car services.

Public charging concerns are now biggest barrier to EV take-up, finds What Car?

A What Car? survey has revealed public charging infrastructure concerns are the top barrier to EV adoption, overtaking range anxiety. High EV costs and lack of incentives also deter buyers. Government action, including reduced VAT and reliable charging networks, could boost uptake.

Weather

It’ll be a colder and breezier day than of late, reports BBC Weather, while areas of Northern Ireland and northern Scotland will see wintry showers. Elsewhere, it’ll be sunny but chilly with highs of eight degrees.

Cloud will cover most of the country tonight with rain in the early hours. The south-east of England will escape this, however, staying dry and clear.

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The post Dec 19: Interest rates set to be held; PM under fire over Waspi decision; Sub-£24k GWM Haval appeared first on Car Dealer Magazine.