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New car sales plunged by 35% in September as chip shortages inflicted a major setback on what is normally a key month for the sector, according to industry data.

Just 214,000 new vehicles were registered, the weakest for the month since the “two-plate” system for new cars was introduced in 1999, said the Society of Motor Manufacturers’ and Traders (SMMT).

The SMMT – which issued preliminary data ahead of its full set of figures later on Tuesday morning – said that supply issues caused by semiconductor chip shortages “continue to plague the industry”.

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The two-plate system, under which cars are sold with new registration plates twice each year – in March and September – normally boosts demand in each of those months.

But the coronavirus crisis has buckled the market’s usual seasonal trading patterns out of shape, thanks to factory shutdowns and showroom closures last year.

In September 2020, sales were still struggling to recover and hit a post-1999 low of just over 328,000 new registrations.

The chip shortage means that they have now fallen sharply even from those levels.

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That is because even as restrictions on UK consumers and industry are eased, the pandemic has resulted in shutdowns of dozens of plants in countries such as Vietnam, Taiwan, and Malaysia, where the chips vital for car production are produced.

The SMMT has estimated that the shortage will result in an overall reduction of 100,000 in new vehicles being made in the UK.

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One bright spot in the latest car sales figures was the registration of a record 32,000 battery electric vehicles, compared with 37,850 for the whole of the pre-pandemic year of 2019.

New petrol and diesel vehicles will be banned from sale from 2030.

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Horizon engineer Gareth Jenkins defends accounting system at Post Office inquiry

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Horizon engineer Gareth Jenkins defends accounting system at Post Office inquiry

One of the architects of the Post Office Horizon accounting system has admitted there were “discreet” bugs but it generally “worked well”, dismissing suggestions he had knowledge of widespread flaws.

Gareth Jenkins, who was a lead engineer at Horizon supplier Fujitsu, told the public inquiry into the IT scandal that while pilots for both Horizon systems encountered troubles, systemic issues he was aware of were ironed out.

Under questioning from counsel to the inquiry Jason Beer KC, he believed the scale and seriousness of the bugs in the system that have been complained about was inconsistent with his own understanding of Horizon’s integrity.

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He said that applied to both the original software, now known as ‘legacy Horizon’, and the later Horizon Online system which, he pointed out, was still being used to this day.

Mr Jenkins was in the paid employment of Fujitsu from 1996 to 2022.

He was utilised, by the Post Office, as an expert witness in prosecutions of sub-postmasters on charges such as theft and false accounting.

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He gave evidence in the pivotal 2010 trial of Seema Misra, who was jailed while pregnant.

It has been alleged that Mr Jenkins failed to disclose then the existence of a known bug in the accounting system that had the potential to clear her name and halt other prosecutions.

In addition to knowledge of flaws in Horizon, he is facing further claims relating to the ability of Fujitsu personnel to access the legacy system without the knowledge of sub-postmasters.

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He is being investigated by police on perjury grounds.

The law states that expert witnesses in criminal cases must be impartial.

The inquiry has already heard Mr Jenkins was used on multiple occasions to provide information as the Post Office took sub-postmasters to court.

He said on Tuesday he was among individual engineers who would be asked to investigate a potential bug should an issue arise, describing one such occasion.

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“There was a mismatch in the Post Office back end accounts,” he said, explaining how he realised the problem was due to it taking the “accounts at different times”.

“One was taking the cash positions at 7pm in the evening and the other was taking the cash position at midnight, and this accounted for the mismatch they had in the accounts,” he said.

Mr Jenkins denied having knowledge of bugs other than those he was personally asked to investigate.

“I’m not sure that even today I understand what bugs actually did cause the problems that people suffer from,” he added, saying that those he was alerted to were “discreet” and “well controlled and managed at the time”.

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Asked if it had occurred to him that he should have made sure he knew about the problems that had not been referred to him before he went to court, Mr Jenkins replied: “That didn’t occur to me.

“I was confident, possibly wrongly so, that if problems did occur they were quickly fixed and not left to fester in the system to have a large impact.

“With hindsight I would have done things differently,” he added, saying he would have asked wider questions.

He also told Mr Beer he did not understand his duties of disclosure until 2020.

More than 700 sub-postmasters were wrongly convicted of crimes linked to their use of the Horizon systems.

Mr Jenkins is scheduled to give four days of evidence.

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Weekly real wage growth just £16 since 2010 but minimum wage one of the world’s highest – Resolution Foundation

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Weekly real wage growth just £16 since 2010 but minimum wage one of the world's highest - Resolution Foundation

Weekly wages have increased by just £16 in 14 years when inflation is factored in, according to research from living-standards think tank the Resolution Foundation.

Workers have experienced an “unprecedented” pay squeeze since 2010 with real weekly wage growth of £16 due to two crises and Brexit, the foundation said.

The sum factors in price rises across the time period.

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Slow wage growth

Economic challenges in the form of the financial crisis of the late 2000s and the current cost of living crisis coupled with Brexit’s economic effects have acted to suppress wage growth, it said.

It’s a significant slowdown from the rises seen in the 14 years up to 2010 when wages rose £145 a week. It’s also small when compared to other large economies.

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If wage growth had been at the level of Germany and the US, people would be earning £3,600 more a year, equivalent to £69.23 a week.

While wages have been rising faster than inflation in the past few months they haven’t been high enough to overcome a nearly two-year period where the price of goods was going up more quickly than pay packets.

While the latest official inflation reading showed prices rose 2% and wages rose 6%, price rises fuelled by high energy bills after the invasion of Ukraine had been eroding the benefits of salary increases.

Those high energy costs followed pandemic-era price hikes after lockdowns caused problems in product supply chains. Households have been struggling with high bills particularly since energy bills skyrocketed in the early months of 2022.

Improvements for the lowest-paid

Wages have, however, increased more for the lowest earners as the minimum wage has been raised, the Resolution Foundation said.

Those in traditionally low-paying jobs such as cleaners, bar staff and shop workers have seen their typical hourly pay rise against inflation and is now 20% higher than in 2010. It’s significantly higher than the typical pay growth across the workforce, which is 1.6%, the thinktank said.

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A rise in the minimum wage in 2016 was credited for this.

It’s resulted in hourly wage inequality between low and median earners reaching the lowest level since the mid-1970s.

The minimum wage is now one of the highest in the world, the foundation added.

Employment gains and losses

Gains were also made in the number of people at work in the UK, though it is one of just six countries in the Organisation for Economic Co-operation and Development (OECD) group of nations that has yet to return to its pre-pandemic employment rate.

Of the 38 OECD countries only the UK, Latvia, Iceland, Chile, Colombia and South Africa have fewer people in employment than before the COVID-19 pandemic outbreak.

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Getir shareholders back break-up of food delivery group

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Getir shareholders back break-up of food delivery group

Investors in Getir, the food delivery group which is abandoning its UK operations, have approved a break-up of the company that will trigger a fresh capital injection of up to $250m (£197.5m).

Sky News has learnt that Getir, which is based in Turkey, held an extraordinary general meeting on Sunday at which shareholders backed plans to split it into two independent companies.

The first will consist of its food and grocery delivery operations in Turkey, and will be majority-owned and controlled by Mubadala, the Abu Dhabi state investment fund.

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This business will be led by Batuhan Gultakan, a current Getir executive, while Nazim Salur, the company’s founder, will have no active involvement in it.

Instead, Mr Salur will run the other standalone business, comprising Getir’s other assets, including Getir Drive and BiTaksi, the ride-hailing services.

Getir’s withdrawal from the UK and other European markets, confirmed in the spring, represented a full-scale retreat for a company once-valued at nearly £10bn.

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Insiders said that as part of the restructuring, Mubadala had agreed to inject up to $250m into the company, both to facilitate the orderly wind-down of its UK and European arm and to invest in growing its Turkish food delivery business.

Mubadala is said to be optimistic about the outlook for the Turkish market, and that the restructuring would leave the company in a much stronger position, according to another source close to the situation.

Part of the funding could be used to repay outstanding liabilities, which are understood to include several million pounds owed to Tottenham Hotspur FC, whose training kit it sponsored.

Hundreds of jobs are being lost in the UK as a result of the closure of Getir’s business.

Companies such as Getir were big winners during the pandemic, attracting funding at astronomical valuations.

Its decline highlights the slumping valuations of technology companies once-hailed as the new titans of food retailing.

Many of its rivals have already gone bust, while others have been swallowed up as part of a desperate wave of consolidation.

Getir, whose name means ‘to bring’ in Turkish, bought rival Gorillas in a $1.2bn stock-based deal that closed in December 2022.

Getir could not be reached for comment, while Mubadala declined to comment.

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