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UK economy sees 5% growth in August

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uk economy sees 5 growth in august

The economy grew 5 per cent in August, figures this week are expected to show, in a bounceback that will go some way to recovering ground lost in the first half of this year.

The latest growth figures, due on Friday, come as economists are becoming gloomier about the outlook for the rest of this year. But they expect stronger growth in 2021.

Howard Archer, chief economic adviser to the Item Club, said: ‘We are looking for 5 per cent growth month-on-month in August. If we are right, this will cut the decline in economic activity from 11.7 per cent in the year to July to 7.1 per cent in the year to August.’

Economists have cut estimates for UK GDP but this year but expect stronger growth in 2021

Economists have cut estimates for UK GDP but this year but expect stronger growth in 2021

The Item Club is sponsored by accountant EY and uses the Treasury’s model of the economy.

A 5 per cent growth figure would be less than the 6.6 per cent month-on-month rise in July, which was itself down on the 8.7 per cent seen in June.

City and academic forecasters have steadily cut their estimates for UK gross domestic product this year while pencilling in better figures for 2021.

The research group Consensus Economics says the average forecast for 2020 has slipped from a fall of 9 per cent three months ago to 9.9 per cent a month ago to 10.1 per cent now. 

But simultaneous growth projections for 2021 have risen from 6.1 per cent to 6.4 per cent to 6.5 per cent now.

This post first appeared on dailymail.co.uk

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RAY MASSEY’S definitive guide to the electric car market

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ray masseys definitive guide to the electric car market

You don’t have to wait for the electric car revolution to begin, it’s here with us now. And today, in an exclusive eight-page supplement in the Daily Mail’s Weekend magazine, we set out what every motorist needs to know. 

This is especially important when new petrol and diesel cars are likely to be outlawed, perhaps in as little as 15 or even 12 years. 

Long ranger: The new funky and boxy Kia Soul EV, has a range of up to 280 miles

Long ranger: The new funky and boxy Kia Soul EV, has a range of up to 280 miles

Long ranger: The new funky and boxy Kia Soul EV, has a range of up to 280 miles

In simple, no-nonsense language, my guide beats a high-voltage path through the costs, benefits, and pitfalls of living with an electric car. Jargon-free, it sets out in simple terms what motorists need to know about buying or leasing, subsidies, charging times, range issues and running costs, as well as a survey of some popular, practical, family friendly, speedy and high-spec battery-powered vehicles on sale, or about to be. 

Motoring expert Ray Massey's free guide in the Weekend magazine

Motoring expert Ray Massey's free guide in the Weekend magazine

Motoring expert Ray Massey’s free guide in the Weekend magazine

Today’s guide coincides with the chance to win a new Hyundai Kona, worth £39,000. Hyundai is also setting up a new electric-only sub-brand called Ioniq, with the Ioniq 5 crossover out next year, the 6 sports coupe (based on the concept Prophecy) in 2022, and the 7 large SUV in 2024. 

Together with its value-for-money sibling Kia, the Korean firm aims to sell a million electric vehicles a year globally by 2025. Kia’s electric e-Niro meanwhile has Hollywood star and near-namesake Robert de Niro plugging its electric credentials. 

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35053100 8898501 image m 20 1604083607816

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35053098 8898501 image a 19 1604083604190

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35053114 8898501 image m 23 1604083656646

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35053108 8898501 image a 22 1604083652154

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35053140 8898501 image m 25 1604083683151

Priced from £29,595 to £36,146 (after deduction of the £3,000 plug-in grant) and with a 282-mile range, it was named What Car? of the year in 2019. 

And the new funky and boxy Kia Soul EV, costing £34,295 (after the grant) has a range of up to 280 miles, accelerates from rest to 60mph in 7.6 seconds up to 104mph.

Nissan’s Leaf has been named most reliable electric vehicle in a study carried out by Warranty-wise which looked at the frequency of repairs, common faults, cost of repair and age at the time of repair. 

‘HASSLE-FREE’ SHOWROOM OPENS 

Farewell, Arthur Daley. A ‘hassle-free’ showroom where staff are forbidden from selling you a car opens today. 

As an antidote to high-pressure, hard-sell tactics, customers can look over models on offer, take advice from non-commissioned specialists, dubbed ‘brand ambassadors’, configure their ideal vehicle on screens and even take a road test. 

New concept: It's been set up by Volvo's electric car spin-off Polestar (Polestar 2 pictured), both part of the Chinese giant Geely

New concept: It's been set up by Volvo's electric car spin-off Polestar (Polestar 2 pictured), both part of the Chinese giant Geely

New concept: It’s been set up by Volvo’s electric car spin-off Polestar (Polestar 2 pictured), both part of the Chinese giant Geely

But they can only buy their car online and in their own time — either from home or with non-pressured guidance in store. 

The compact, boutique-style showroom in the Westfield Shopping Centre, West London, has cars to view and sit in, but there’s no stock to ‘shift’ to meet-targets. 

It’s been set up by Volvo’s electric car spin-off Polestar (Polestar 2), both part of the Chinese giant Geely. Similar ventures in Manchester, Glasgow and Birmingham are possible.

 

CITROEN MAKING COST OF CARS MORE TRANSPARENT 

Citoen is slashing prices — and discounts — to make the cost of its cars, including the C1, pictured, more transparent to customers in the UK, in showrooms or online. 

It means less haggling over an inflated showroom price because the published retail price will be far closer to what the customer actually pays. 

Less haggling: Its Fair Pricing initiative also aims to protect the longer-term residual value of its cars

Less haggling: Its Fair Pricing initiative also aims to protect the longer-term residual value of its cars

Less haggling: Its Fair Pricing initiative also aims to protect the longer-term residual value of its cars

Its Fair Pricing initiative also aims to protect the longer-term residual value of its cars. Surveys show many customers are put off buying if they must haggle. 

Examples of reductions from December 1 are: 

Up to £700 off a Citroen C1 (from £11,015 to £10,315) 

Up to £1,175 off a new C3 super-mini (£16,280/ £15,105) 

Up to £1,775 off a C3 Aircross Compact SUV (from £21,445 /£19,670) 

Citroën UK’s MD Eurig Druce added there was now a 75 per cent chance of the all-electric AMI pod car — at around £5,000 — coming to Britain next year. 

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Coronavirus curbs could force BA owner IAG to raise more cash

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coronavirus curbs could force ba owner iag to raise more cash

British Airways-owner IAG warned it could need to raise even more cash if there are prolonged, sweeping lockdowns after it posted a mammoth £5.6billion loss. 

The airlines group has already secured £2.5billion funding from shareholders and hundreds of millions of pounds from governments after the pandemic led to mass flight cancellations – which are still failing to recover. 

Suffering: IAG lost the equivalent of £900,000 an hour during the first nine months of the year

Suffering: IAG lost the equivalent of £900,000 an hour during the first nine months of the year

Suffering: IAG lost the equivalent of £900,000 an hour during the first nine months of the year

Yesterday IAG, which also owns Ireland’s Aer Lingus and Spain’s Iberia, admitted the Covid crisis could be even worse than its grimmest forecasts. 

If that was the case, the company would ‘likely need to secure additional funding’, it said. 

IAG lost the equivalent of £900,000 an hour during the first nine months of the year as it took a slew of one-off charges in addition to a revenue hit from fewer flights. Passenger numbers fell by 78.6 per cent between July and September, when many tried to squeeze in last-minute summer holidays. 

But IAG has warned that this winter it will only run about 30 per cent of the flights it operated last year. 

Chief executive Luis Gallego, who took over at the FTSE100-listed group last month, is overseeing a wide-ranging shake-up that includes shedding thousands of jobs – including up to 13,000 at BA. 

Yesterday Gallego said the company has already managed to slash costs by 54 per cent. 

This helped send shares up 5.9 per cent, or 5.36p, to 96.44p by the close. 

But Gallego pleaded with ministers to set up an airport coronavirus testing programme – warning that having ‘reliable and affordable’ tests would be the best way to help the business recover. 

He said ‘volatile government restrictions’, such as introducing last-minute quarantines on travellers returning from certain areas, was making it too difficult for passengers to book flights.     

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Britain braces for new tsunami of job losses

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britain braces for new tsunami of job losses

Major companies have culled nearly 200,000 British jobs already as they struggle with the devastating impact of the coronavirus pandemic, a Mail audit has found. 

As shops and eateries face growing curbs, and international travel is hit by a collapse in demand, leading firms from Marks & Spencer and British Airways to Rolls-Royce and Debenhams have slashed around 183,900 roles across the UK this year. 

But experts and business leaders warned this is just the tip of the iceberg – far worse is to come as fresh Covid-19 lockdowns slam the brakes on the economic recovery. 

Challenging times: Rishi Sunak's furlough scheme is being replaced by a slimmer jobs support scheme

Challenging times: Rishi Sunak's furlough scheme is being replaced by a slimmer jobs support scheme

Challenging times: Rishi Sunak’s furlough scheme is being replaced by a slimmer jobs support scheme

The Government’s furlough scheme – which supported 9m jobs at its height – comes to an end today and will be replaced by a slimmer jobs support scheme. 

Employers have warned it will not be enough to stave off more redundancies if restrictions tighten further, as businesses face tumbling visitor numbers or being forced to close altogether. Unemployment has already risen to a three-year high of 4.5 per cent, with the Bank of England predicting it could rise to 7.5 per cent by the year’s end, potentially leaving 2.6m out of work. 

And this week the Resolution Foundation estimated the UK is facing the highest level of youth unemployment since the 1980s, after a survey found 20 per cent of 18 to 24-year-olds could soon be jobless. 

In a fresh warning yesterday, the Federation of Small Businesses (FSB) called on ministers to make sure that firms ‘have the support they need to make it through the next few months’. 

Mike Cherry, the group’s national chair, said: ‘With new restrictions being imposed in every part of the country, many of which are set to get tighter in the weeks to come, small businesses face huge difficulties over the winter months ahead. 

‘Our latest small business index found that 30 per cent of employers expect to make some staff redundant in the next three months. 

‘That is the scale of concern and uncertainty that small firms are faced with for their businesses, with many letting staff go for the very first time.’ 

Pubs have warned that lifeline grants promised by Chancellor Rishi Sunak will not reach them unless state aid rules are changed – putting 1m jobs at risk. The British Beer & Pub Association, British Institute of Innkeeping and UK Hospitality warned that with – out action some 20,000 venues in areas hit by Tier Two and Three lockdowns will be starved of the desperately-needed cash. They said: ‘If action is not taken, thousands of businesses might not survive to the spring.’ Jobs at other leisure sector businesses, such as nightclubs, have also taken a sharp hit. 

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35058784 8898613 image a 136 1604094527983

The UK’s largest nightclub owner, The Deltic Group, had already cut around half its staff before it put itself up for sale yesterday. The Treasury has insisted that its jobs support scheme and job retention bonus – awarded to firms for keeping on staff who were previously furloughed – will together cover 95 per cent of total wage costs for the average furloughed employee until February. 

Around 9.6m people used the furlough scheme in total, though the most at any one time was 8.9m. Sunak said the programme had supported ‘9.6m jobs through some of the most challenging economic times’. 

But he added: ‘It’s right that as we move towards a more targeted approach to tackle the virus, our support becomes more targeted too. The jobs support scheme will continue to protect jobs through – out the difficult months ahead and is part of our comprehensive plan for jobs.’

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