UK automotive leaders are calling for immediate trade negotiations following the US government’s decision to impose a 25% tariff on imported vehicles, set to take effect next Wednesday. The move threatens a sector already facing declining sales and rising production costs.

The US is the UK’s second-largest car export market, valued at £7.6 billion. In 2023, over 101,000 UK-built vehicles—mainly premium and luxury models—were shipped to the US, accounting for nearly 17% of total car exports. The tariffs will hit major UK manufacturers, including Jaguar Land Rover, BMW, Toyota, Nissan, and Stellantis.

Jaguar Land Rover, which employs 11,000 people in the UK, relies on the US as its biggest overseas market. BMW’s three UK plants, which focus on Mini production and employ around 8,000 people, could also face significant cost increases. The US remains a key Mini market despite declining sales due to model changes.

The Society of Motor Manufacturers and Traders (SMMT) is pushing for a trade deal to avoid disruption, emphasising the long-standing UK-US automotive relationship. The British Chambers of Commerce has also called for “intensive dialogue” to mitigate the economic impact.

Chancellor Rachel Reeves confirmed that discussions with the US are ongoing, while business leaders warn that the tariffs could increase costs for American consumers and create further supply chain instability.

Drax Power has signed a 20-year joint venture agreement with Power Minerals to develop a facility that will convert pulverised fuel ash (PFA) into Supplementary Cementitious Material (SCM), a key ingredient for lower-carbon cement.

The facility will be built next to Drax Power Station in North Yorkshire, where Power Minerals will be responsible for construction, ownership, and operation. Drax will supply PFA, power, and water while sharing in the profits from SCM sales. No capital investment is required from Drax.

The plant, expected to be operational by the end of 2026, will produce up to 400,000 tonnes of SCM annually at full capacity. Drax anticipates the project will generate approximately £5 million in additional annual EBITDA from 2027 through 2046.

The initiative aligns with the UK’s push for lower-carbon construction materials, leveraging Drax’s existing infrastructure to support sustainability in the cement industry.

Sky is restructuring its customer service operations, shifting from call centres to digital support. As part of the move, the company will close three call centres in Leeds, Sheffield, and Stockport and make additional job cuts at its Dunfermline and Newcastle sites. Around 2,000 roles—roughly 7% of Sky’s workforce—are at risk.

The company invests in digital channels, including live chat and app-based support, while maintaining limited phone support. To improve efficiency, it is also developing a new “centre of excellence” in Livingston.

For businesses, the shift signals a growing reliance on automated customer service, which reduces operational costs but potentially limits direct customer interactions.

James Pinchbeck, partner at Streets Chartered Accountants, reflects on the Spring Statement. In delivering her first Spring Statement, Chancellor Rachel Reeves made it clear that this government intends to follow the principle of a single annual Budget, with major tax changes reserved for the Autumn. The Spring Statement, instead, is positioned as a fiscal checkpoint, a chance to update the nation on the economic outlook and to adjust financial levers as needed. For many businesses and individuals, the most immediate takeaway will be relief in that there were no further tax increases. That said, there was also no reversal of previous tax hikes, nor any uplifting announcements such as increases to the personal allowance or adjustments to frozen tax thresholds. Those hoping for fiscal giveaways will have found little to cheer about. As anticipated, the Chancellor’s focus was on tightening public spending. With the UK economic growth forecast for 2025 revised downward from 2% to just 1%, the pressure is on to rebalance the books. Lower than expected tax revenues and rising borrowing costs have left the Treasury with less fiscal headroom, prompting action. The Chancellor cited global geopolitical tensions and instability as major headwinds, but much of the UK’s stagnation has been homegrown with a combination of suppressed consumer confidence and cautious business investment. Households continue to grapple with the cost-of-living crisis, while employers face increased staffing costs, notably from the rise in National Insurance contributions from 6th April. Public sector reform, transformation or austerity 2.0? A key announcement was the creation of a £3.25bn Public Sector Transformation Fund, aimed at shrinking the size of the state and boosting productivity through AI and digital innovation. This includes structural changes such as the dissolution of NHS England, in an effort to cut costs and improve decision-making. There will also be further tightening of welfare budgets, with cuts to Universal Credit and other support mechanisms flagged as part of the savings drive. A defence led growth strategy? Perhaps the most headline grabbing shift is the government’s framing of defence spending as an economic growth strategy. With £400m earmarked for defence innovation, particularly in AI and drone technology and a commitment to increasing defence investment as a percentage of GDP, the Chancellor declared her ambition to make the UK a “defence industrial superpower.” To complement this, capital spending commitments will continue with a £2bn increase, alongside a renewed push to meet housing targets and accelerate homebuilding. Whether this marks a bold new direction for economic strategy or a reactive shift to global instability remains to be seen. What’s clear is that growth is now expected to come from defence procurement and infrastructure investment, rather than tax cuts or consumer led stimulus. As ever, the effectiveness of this strategy will depend not just on the vision, but the execution. Businesses, investors and households alike will be watching closely. For the devil in the detail and tax planning advice for 2025/26, including managing the increase in employer’s national insurance, there is still time to book for Streets Chartered Accountants’ post Spring Statement webinar which takes place from 11am until 12noon on Thursday 27^th March. Watch live or on catch up! Register to join live and/or to receive a post broadcast recording to watch on catch up. https://www.streetsweb.co.uk/about/events/the-spring-statement-2025-what-will-it-mean-for-you/