Skip to content 
Search

Latest Stories

UK car sector seeks more government help to handle pandemic hit

BRITAIN'S car industry called on the government to introduce additional measures such as a sales tax cut to boost the sector as a third of automotive workers remain furloughed due to the coronavirus outbreak.

Factories closed in March as a lockdown was enforced to contain the spread of the pandemic with some still shut and many operating at a much reduced output, setting the industry up for the lowest level of production in decades.


Car and van volumes are expected to fall by a third to 920,000 units this year and up to one in six jobs are at risk, the Society of Motor Manufacturers and Traders (SMMT) industry body said.

The government has introduced a series of policies to support the economy including a furlough scheme which sees it pay 80 per cent of salaries, up to £2,500 per month, for staff who are placed on temporary leave.

"Government’s intervention has been unprecedented," said SMMT Chief Executive Mike Hawes.

"But the job isn’t done yet. Just as we have seen in other countries, we need a package of support to restart, to build demand, volumes and growth," he said, calling for measures to boost consumer confidence and unfettered access to emergency funding.

"The harsh reality of the Covid-19 crisis for the UK's automotive sector is laid bare today by a new member survey from the SMMT revealing that up to one in six jobs are at risk of redundancy," the organisation said in a statement issued for its annual meeting, which was held online due to Covid-19 restrictions.

The survey findings come after the sector has already shed more than 6,000 jobs in June at carmakers including Aston Martin, Bentley, Jaguar Land Rover and McLaren

The sector, Britain's biggest exporter of goods, is also worried that trading terms with the European Union could worsen after a Brexit transition period finishes at the end of 2020.

"A ‘no deal’ scenario would severely damage these prospects and could see volumes falling below 850,000 by 2025 – the lowest level since 1953," the SMMT said.

The government has promised to support business throughout the coronavirus crisis and talks are ongoing between London and Brussels to secure a trade agreement with the EU to come into force from Jan 1.

More For You

Bangladesh seeks US deal to shield garment industry from tariffs

Workers are engaged at their sewing stations in a garment factory in Savar, on the outskirts of Dhaka, on April 9, 2025. (Photo by MUNIR UZ ZAMAN/AFP via Getty Images)

Bangladesh seeks US deal to shield garment industry from tariffs

BANGLADESH, the world's second-biggest garment manufacturer, aims to strike a trade deal with the US before Donald Trump's punishing tariffs kick in next week, said the country's top commerce official.

Dhaka is proposing to buy Boeing planes and boost imports of US wheat, cotton and oil in a bid to reduce the trade deficit, which Trump used as the reason for imposing painful levies in his "Liberation Day" announcement.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Bond yields ease following Starmer’s support for Reeves

THE COST of UK government borrowing fell on Thursday, partially reversing the rise seen after Chancellor Rachel Reeves became emotional during Prime Minister’s Questions.

The yield on 10-year government bonds dropped to 4.55 per cent, down from 4.61 per cent the previous day. The pound also recovered slightly to $1.3668 (around £1.00), though it did not regain all its earlier losses.

Keep ReadingShow less
modi-trump-getty
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Indian exporters watch closely as Trump says trade deal with India likely

THE US could reach a trade deal with India that would help American companies compete more easily in the Indian market and reduce tariff rates, President Donald Trump said on Tuesday. However, he cast doubt on a similar deal with Japan.

Speaking to reporters on Air Force One, Trump said he believed India was ready to lower trade barriers, potentially paving the way for an agreement that would avoid the 26 per cent tariff rate he had announced on April 2 and paused until July 9.

Keep ReadingShow less
Kolhapuri sandal sales surge in India post Prada controversy

Customers shop for 'Kolhapuri' sandals, an Indian ethnic footwear, at a store in New Delhi, India, June 27, 2025. REUTERS/Adnan Abidi

Kolhapuri sandal sales surge in India post Prada controversy

INDIAN footwear sellers and artisans are tapping into nationalist pride stoked by the Prada 'sandal scandal' in a bid to boost sales of ethnic slippers with history dating back to the 12th century, raising hopes of reviving a struggling craft.

Sales are surging over the past week for the 'Kolhapuri' sandals that have garnered global attention after Prada sparked a controversy by showcasing similar designs in Milan, without initially crediting the footwear's origins.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy grew 0.7 per cent in Q1 2025, fastest in a year

THE UK economy expanded at its fastest pace in a year during the first quarter of 2025, driven by a rise in home purchases ahead of a tax deadline and higher manufacturing output before the introduction of new US import tariffs.

Gross domestic product rose by 0.7 per cent in the January-to-March period, the Office for National Statistics (ONS) said, confirming its earlier estimate. This was the strongest quarterly growth since the first quarter of 2024.

Keep ReadingShow less