UK car manufacturing fell again in November, the ninth month of decline in a row, according to industry data.

A total of 64,216 cars were produced in UK factories last month, 27,711 fewer than in November last year – a 30% drop, according to data from the Society of Motor Manufacturers and Traders (SMMT).

The figures also mean it was the worst November for UK car production since 1980, when 62,728 vehicles were produced.

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It comes after the government launched a review into its electric car mandate – a system of financial penalties levied against car makers if zero-emission vehicles make up less than 22% of all sales to encourage electric vehicle (EV) production.

The mandate will rise to 80% of all sales by 2030 and 100% by 2035.

But car manufacturers have long expressed unhappiness with the target, saying the consumer demand is not there and EVs are costlier to produce.

Separate figures from the SMMT suggested a £5.8bn hit to the sector from the EV mandate.

Despite the criticism, EV sales goals were surpassed last month. One in every four new cars sold was an electric vehicle.

The impact of this reduced production could be visible in the last month from the announcement of 800 job cuts from Ford UK and Vauxhall‘s Luton plant closure.

The problems are not specific to the UK as European makers also face weaker EV demand than anticipated and competition from Chinese imports.

High borrowing costs and comparatively more expensive raw materials have worsened the problem.

Bosch – the world’s biggest car parts supplier – also reported the loss of 5,500 jobs last month, predominantly in Germany.

In October Volkswagen revealed plans to shut at least three factories in Germany and lay off tens of thousands of staff.

The Bank of England has maintained its guidance for “gradual” interest rate cuts next year, following surprise support for a reduction this month.

Its rate-setting committee, while deciding to keep Bank rate on hold at 4.75%, noted higher than expected wage rises and inflation despite a slowdown in the economy over the second half of the year.

However, three members backed a cut, meaning the vote came in at 6-3 in favour of no change.

Just one dissenting voice had been expected.

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Governor Andrew Bailey said: “We think a gradual approach to future interest rate cuts remains right, but with the heightened uncertainty in the economy we can’t commit to when or by how much we will cut rates in the coming year.”

Earlier this month, Mr Bailey voiced concerns about how businesses would react to budget measures, such as the hike to employer national insurance contributions from April.

Lobby groups and many individual firms have warned the additional costs will be passed on – risking further inflationary pressure.

Mr Bailey also noted a worry tit-for-tat trade tariffs would add to the acceleration in price growth. US president-elect Donald Trump has warned of tariffs covering all US imports as part of his agenda to protect US industry and jobs.

The Bank said on Thursday it was still evaluating the effects of the budget on the outlook.

It has also consistently spoken of the threat to rate cuts from salaries.

The Bank does not like wages going up too fast – currently at twice the rate of price growth – because it can fuel future demand in the economy and make inflation worse in the longer term.

Economists had been widely expecting four rate cuts in 2025 on the back of the two reductions this year as inflation fell back towards the Bank’s 2% target following the West’s energy-led price shock.

But financial markets, which had tipped a similar future path up until a few weeks ago, now see only two quarter point reductions priced in due to additional weight on inflation.

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However, the chances of a rate reduction at the Bank’s next meeting in February rose from near 50% to 66%, according to LSEG data after the minutes of the 18 December meeting were published.

Such a move would be broadly welcomed by millions of borrowers also still feeling the pinch from the wider cost of living crisis.

Prices have generally not been falling but rising at a much slower pace. Energy bill hikes for the coming winter are among the current pressures on household spending.

Chancellor Rachel Reeves said: “I know families are still struggling with high costs. We want to put more money in the pockets of working people, but that is only possible if inflation is stable and I fully back the Bank of England to achieve that.

“Improving living standards across the country is our number one focus, and is why I chose to protect working people’s pay slips from tax rises, froze fuel duty and increased the National Living Wage for three million people.”

The UK’s biggest water company has been fined £18.2m for “unjustified” dividends which the regulator said broke shareholder payment rules.

Thames Water has been hit with the penalty by water regulator Ofwat over the combined £195.8m in dividends paid to shareholders in October 2023 and March 2024.

It’s the first time Ofwat has used such enforcement powers to ensure firms link shareholder payments to their company performance. The powers came into effect in May 2023.

As well as the fine, £131.3m in dividends will be clawed back by Ofwat as it said Thames Water “failed to consider” the wider impact of the dividend issuance.

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The regulator said Thames Water breached obligations under its licence condition.

Since the water company’s credit rating dropped below investment grade in April it has been unable to make further dividend payments without Ofwat’s approval.

The announcement is intended to serve as a warning to other water companies, Ofwat said.

Its chief executive David Black said: “Ofwat’s £18m penalty and clawing back the value of £131m in unjustified dividend payments is a clear warning to the whole sector: We will take action against companies who take money out of these businesses, where performance does not merit it.”

Thames Water said it took its licence obligations “very seriously”, “including those relating to the declaration and payment of dividends,” a spokesperson said.

It said it only made the payments after considering “the company’s legal and regulatory obligations”.

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Thursday’s penalty was the latest in a series of fines for the troubled utility. In August it was slapped with a £104m levy for sewage discharges. A year earlier in July 2023 it was fined more than £3m after admitting to polluting rivers.

Thames Water has found itself in a perilous financial position and this week won High Court approval to pursue a £3bn emergency loan.

If approval had not been granted Thames Water said it would run out of cash by 24 March and would likely be pushed into a government-backed special administration regime, a form of state ownership.

The penalty comes on the same day all English and Welsh water utilities had their business plans for the next five years agreed.

Average water bills will increase by 36%, equivalent to an extra £31 each year, and an investment of £104bn.

How much bills will increase depends on where you live and the settlement agreed for each local supplier.

Ofwat said it did “not at all” consider Thames Water’s financial position when making its bill rise and investment determination.