Money blog: Time running out for EV drivers to save £195 (2025)

For much of the country, it's payday today - not that anyone will need reminding.

What may have drifted from memory is the fact that the last two paydays have been plagued by IT issues at major banks.

The good news is that it's looking calm so far this morning.

However, a banking technology expert has told Sky News' Sarah Taafe-Maguire that there will be more outages in future.

Paul Taylor, chief executive of bank technology company Thought Machine, said he's aware of there being tech issues on payday going back years. Whether they make the news regularly is a different matter.

Check out his full warning and what the banks say in the story below.

Time is running out for drivers of electric vehicles in the UK to act - or risk missing the opportunity to secure another year of free road tax.

Drivers of fully electric vehicles registered between 1 April 2017 and 31 March 2025 have had free road tax as part of an incentive to help drive the transition to zero-emission cars.

But things are set to change from next Tuesday (1 April 2025) with this exemption coming to an end, meaning all electric vehicles already on the road will be subject to the standard annual Vehicle Exercise Duty rate of £195 - in line with petrol, diesel and hybrid vehicles.

"By simply renewing your road tax before the deadline, you can secure another 12 months of road tax for nothing," Sam Sheehan, motoring editor at Cinch, said.

"For EV drivers that act quickly, this is a big cost saving that will help keep their annual motoring costs down for another year."

Sheehan said the road tax renewal process was straightforward, with drivers having to enter their 11-digit reference number from their car's logbook on the government website.

"Don't get caught out," Sheehan warned, adding: "The system will warn drivers about renewing early."

"That's because you'd actually have to pay twice until your original renewal date. However, this doesn't apply to EVs because currently road tax is free."

Every Friday, we take an overview of the mortgage market with industry experts and round up the best rates.This week,Rachel Springall, finance expert atMoneyfactscompare.co.uk, takes a look at the buy-to-let market.

The spring statement didn't bring any positive news for buy-to-let investors, but lenders have been dropping rates over recent weeks to attract new business.

Week-on-week, the overall average two-year fixed buy-to-let rates fell to 5.18%, while five-year rates fell to 5.40%.

Rachel Springall, finance expert at Moneyfacts, said: "There has been much debate over the future of the buy-to-let market, with landlords in dismay over whether they can continue with their investment in property, and feeling ignored.

"The stamp duty surcharge on additional homes was increased to 5% and recent studies suggest there has been an exodus of landlords who have quit the private rental sector due to dwindling margins.

"In some more positive news, buy-to-let rates have been on a downward trend and the choice of deals rose to a record high."

The lowest buy-to-let rates above may carry both a flat product fee and an arrangement fee which is based on a percentage of the mortgage advance, so a Best Buy package could be more suitable if you are looking to save on the upfront cost of any deal.

You might also want a deal to cover a valuation or legal fees. A Best Buy buy-to-let mortgage could be the most cost-effective choice in this instance, but it's worth seeking advice before entering any arrangement.

Thanks for following our live coverage today as the Money blog followed the fallout of Donald Trump's latest tariffs announcement.

We'll be back tomorrow with our regular consumer and financial news and tips - as well as anything else that happens in Trump's trade war.

Before we go, here's a summary of goings-on today:

• The world has been reacting after Donald Trump announced new 25% tariffs on all imported cars to the US ahead of 2 April, a day he has called "liberation day";
• Leaders have condemned Trump's tariffs, with European Commission President Ursula von der Leyen saying the move is "bad for businesses, worse for consumers" while Canada's Prime Minister Mark Carney said the tariffs are a "direct attack";
• Meanwhile, British carmakers have pleaded with the UK and US governments to avoid the tariffs and strike a deal;
• Declines in car stocks pushed European shares to a two-week low, while shares of US automakers fell in after-hours trading;
• The European Union is preparing its "calibrated" response to the tariffs, which it insisted will be "timely" and "robust".

Donald Trump's latest tariffs will be bad for growth and prosperity, Volkswagen has said, as it warned against any counter-tariffs.

The German car manufacturer said it was closely monitoring developments and will comprehensively assess the potential impact on supply chains and its production network.

Volkswagen described the US as an important market, having invested more than $14bn recently.

"We share the assessment of most experts that US tariffs and any counter-tariffs will have negative consequences for growth and prosperity in the US and other economic areas," a spokesperson said.

"The entire automotive industry, global supply chains and companies as well as customers will have to bear the negative consequences."

The car maker said it is continuing to advocate constructive talks between the trading partners in order to ensure planning security and economic stability and to avoid a trade conflict.

Donald Trump's 25% tariffs on car imports into the US are just the latest chapter in the trade war which has been growing since the US president returned to the Oval Office.

But the tariffs have led to acts of defiance being unearthed in the face of the trade war, particularly in Canada.

In this video, our US correspondent Martha Kelner speaks to a coffee shop owner who has started selling "Canadianos" instead of Americanos...

Kelner also spoke to a passenger on the ferry which connects Vancouver Island with the mainland who said she thinks Trump is intent on causing mayhem.

"He's a menace, he's just creating chaos where it doesn't need to be," Nancy said.

Meanwhile, another passenger told Kelner they are trying to buy anything but American products as the trade war rumbles on.

We've also been hearing from Sir Keir Starmer in Paris, who describes Donald Trump's latest tariffs as "very concerning".

He says it is important to work with the car industry in response to the tariffs, but expressed the need to remain "pragmatic and clear eyed".

"We are engaged in intense discussions with the US on economic arrangements on a number of fronts," Starmer says.

"We will continue in that way because I think that, rather than jumping into a trade war, it is better pragmatically, to come to an agreed way forward on this if we can."

But Starmer also highlights the need to put national interest first, adding all options will be on the table.

"The industry doesn't want a trade war, but it's important that we keep all options on the table," he adds.

"I'm working hard with others to make progress on economic arrangements, which I hope will better serve our country than a trade war, which will not in my view."

While speaking at a Paris summit for peace in Ukraine, French President Emmanuel Macron took the opportunity to address Donald Trump's tariffs.

He describes the policy as inflationary, and says he has told the US president that his proposal is not a good idea.

Macron adds that Trump has asked Europe to spend more on defence, arguing it is therefore not coherent to impose tariffs.

Asked about what Europe will do, Macron says the response will be reciprocal.

That comes after the European Commission said the EU is preparing its "calibrated" response to Trump's tariffs (see 12.55pm post).

While spokesman Olof Gill told reporters he could not disclose exact timings, he did insist the response would be "timely" and "robust".

Tariffs are a "blunt instrument" but they're a characteristic of Donald Trump's administration, a former boss of Aston Martin has said.

Andy Palmer explained that the UK has a "reasonably neutral balance of trade" with the US, and while it may not have been the original target, it is "certainly one of the victims of this policy".

"You might not think that a buyer of a Rolls-Royce would care, but they do," he says.

"A 25% hike in prices is going to be really bad, particularly for some of those smaller car makers that are very reliant on profitability coming from the US."

Asked about what he would do if he was in the boardroom, Palmer said: "If I was at Nissan as I was for many years, you'd have been talking about switching manufacturing from Mexico to the US, or at least increasing your percentage or you'd be looking to increase your US parts count into the base vehicle and perhaps then lobbying hard to get you some form of relief.

"I think for companies like Aston Martin, Bentley, Jaguar Land Rover, your first port of call is going to be one of lobby.

"Let's see if the government can find some kind of exception because we're not part of the EU and we don't have a massive balance of trade difference, that's the best chance."

Watch the interview in the video below...

By Rob Powell, political correspondent

On foreign and domestic issues, it's a busy time for the Business Secretary - as evidenced by the raft of questions directed at him during a brief appearance at a central London trade summit.

On the prospect of some sort of deal to avoid tariffs from Donald Trump, Jonathan Reynolds spoke carefully.

He said we would know "pretty soon" what the outcome of "intensive" talks with Washington will be, but sounded somewhat optimistic, saying the trading relationship with the US was "fair and balanced".

He did lean into the idea that the Digital Services Tax – a levy on big tech revenues hated by the Trump White House – could be scrapped though.

Describing it as a "temporary measure," Reynolds said it wasn't put in place as something that would never be changed.

Watch: Reynolds interrupted by protesters

Could that be put on the table as part of attempts to get a UK carve out from tariffs?

On the prospects for British Steel, the Business Secretary's tone was more downbeat.

After Sky News revealed the Chinese owner of the business had rejected a £500m offer from the government to aid the company's transition to greener production, Reynolds said the situation was "very, very challenging".

Asked if he might up the offer, the cabinet minister said talks were continuing, but that he needed to make sure it was "the right deal for the taxpayer".

He suggested he needed assurances over the viability of the business as well as a "guarantee on jobs".

That won't bring much comfort to the thousands facing potential redundancy if an agreement can't be reached.