Government Borrowing Falls as NI Hike Bites: Car Dealer News Round-Up

Government Borrowing Falls Sharply as National Insurance Hike Boosts Coffers

Official figures have revealed a significant drop in UK Government borrowing, which fell to £11.6 billion in December. This decrease was largely driven by a spike in tax receipts, with increased national insurance contributions playing a key role in outweighing an uptick in public spending. The Office for National Statistics (ONS) reported that borrowing was £7.1 billion lower than in the same month the previous year, representing a substantial 38% reduction.

Furthermore, the December figure came in £1.6 billion below the forecast made by the Office for Budget Responsibility (OBR). This unexpected surplus provides a positive indication for the public finances as the new financial year gets underway.

Wickes Reports Stronger Sales Amid Falling Prices

In positive news for the retail sector, home improvement retailer Wickes has reported encouraging sales growth. The firm, which operates 230 stores across the UK, stated that its customers have benefited from falling prices, contributing to its strong performance. As a result, Wickes is confident it is on track to have met its targets for the past financial year.

The company revealed that group revenues grew by 6.3% to £788 million in the second half of 2025, with like-for-like sales increasing by a solid 5.3%. This resilience highlights continued consumer investment in home improvements despite broader economic pressures.

Bugatti Celebrates Iconic Veyron with F.K.P Hommage

Twenty years after the original car's release, Bugatti is paying tribute to its legendary Veyron hypercar and its chief engineer, Ferdinand Karl Piëch. The homage comes in the form of a new model named the F.K.P Hommage, which beautifully blends the iconic looks of the original Veyron with the cutting-edge performance of Bugatti's modern lineup.

Built upon the same platform as the current Chiron hypercar, the F.K.P Hommage is powered by a formidable quad-turbocharged engine producing more than 1,600 horsepower. This is the same powerplant that, in the Chiron Super Sport, helped achieve a staggering top speed exceeding 300 mph, cementing Bugatti's place at the pinnacle of automotive engineering.

European Markets Rally as Trump Cools Tariff Threats

A wave of relief swept across European stock markets following former US President Donald Trump's decision to row back on threats of additional tariffs on countries across the continent. This shift in stance prompted a rally, with the UK's FTSE 100 index climbing by approximately 0.8% in early trading.

Other European indexes experienced even stronger gains, with Germany's Dax and France's Cac 40 both rising by about 1.2%. The positive market movement underscores the sensitivity of financial markets to international trade relations and geopolitical statements.

Industry Spotlight: Car Dealer News

The latest issue of Car Dealer Magazine is now available, featuring comprehensive coverage of industry developments. Highlights include details for the upcoming Car Dealer Live 2026 event, a first drive of the new Ferrari Amalfi, and regular segments including industry news round-ups and finance updates.

In other automotive news, HMRC has published its latest list of tax defaulters, revealing that automotive firms and individuals have been fined a total of £254,000 after nearly £450,000 in unpaid taxes was uncovered. The list names car dealers, repairers, and traders penalised for deliberate defaults.

A new survey from Close Brothers also sheds light on changing consumer habits, indicating that 66% of UK motorists now use artificial intelligence (AI) during their car buying journey. While buyers are increasingly relying on AI for research and price comparisons, the survey suggests that dealers continue to add significant value through their expertise and guidance, particularly in areas like finance that AI cannot fully replicate.

Political and Policing Reforms

Prime Minister Sir Keir Starmer welcomed the de-escalation of trade tensions, stating that the 'hard yards' of bolstering Arctic security could now begin. This follows Donald Trump's decision to drop tariff threats against European nations that had opposed his ambitions regarding Greenland.

In a major domestic announcement, Home Secretary Shabana Mahmood is poised to unveil the largest overhaul of policing in decades. The reforms, expected to be announced, will see the number of police forces in England and Wales slashed from the current 43. This restructuring aims to better tackle what Government sources termed 'an epidemic of everyday offences', with forces being refocused on serious and organised crime alongside complex investigations like homicides.

Weather Outlook

Much of the UK is set for a damp and windy day as a slow-moving low-pressure system remains in control. Southern and southwestern regions will experience persistent rain and gusty breezes, while the Midlands will be overcast with patchy rain. Northern England and Scotland are bracing for heavier, persistent rain with a risk of local flooding, especially on eastern and high ground. It will be a typically unsettled winter day across the country.