Exchange rate report:
As of 10:00 on 26 September 2025, GBP/CNY stood at 9.5265, up 0.06% from the previous trading day, and positioned in the lower-middle of the 26 April–present trading range (9.3233–9.8499).
This week’s UK highlights:
Bank of England holds rates at 4%;
Labour’s Autumn Budget reportedly includes about £30 billion in tax measures;
UK and France start migrant exchange repatriations;
Changan Motors quietly enters the UK market;
research finds London buyers accept a marked “location premium” for homes nearer stations.
01 Bank of England holds base rate at 4%
On 18 September the Bank of England announced it would keep its base rate at 4%. The Monetary Policy Committee voted 7–2 in favour of holding, while two members preferred a 25 basis-point cut to 3.75%. The decision matched market expectations given that inflation remains elevated — August CPI rose 3.8% year-on-year and September was expected to approach 4%. Governor Andrew Bailey stressed that any rate reductions should be “gradual and cautious,” and future cuts will depend on a sustained easing in inflation. Some financial houses warn that if the November Autumn Budget weakens growth, the Bank may still consider a 25 bp cut that month. The Bank also trimmed its planned quantitative tightening over the next 12 months from around £100 billion to about £70 billion to ease pressure on market liquidity.
02 Labour’s Autumn Budget reportedly to include c. £30 billion in tax measures
Sources say Chancellor-designate Rishi Sunak’s successor team is drafting an Autumn Budget expected on 26 November that could include at least £30 billion of additional tax measures to shore up confidence in the public finances. If enacted, the measures would add to tax rises introduced since Labour took office 13 months ago, bringing cumulative additional household tax burden to roughly £71 billion — about £1,100 per person on average — underscoring the potential hit to household finances. Labour had pledged during the election not to raise income tax, VAT or national insurance, but analysts now say some pledges may be revisited in the face of a structural fiscal gap, which independent commentators estimate at between £20 billion and £50 billion.
03 UK–France migrant exchange: first repatriations carried out
On 18 September the Home Office confirmed that an Indian national became the first person returned under the UK–France “one in, one out” migrant exchange, with three further foreign nationals subsequently returned to France. The agreement, struck by leaders in July, calls for illegal arrivals in the UK to be returned while allowing an equivalent number of compliant migrants to travel the other way. Official figures show that more than 30,000 people have attempted crossings in 2025, but critics point out the scheme’s early pace — around 50 returns per week — is limited and unlikely to deter criminal smuggling networks by itself. Home Secretary James Cleverly (or the incumbent minister) said the measures aim to deter trafficking gangs while temporary hotel placement options are being expanded to reduce pressure on the asylum system.
04 Changan Motors quietly enters the UK market
On 22 September Chinese carmaker Changan announced the arrival of its Deepal and Avatr brands in the UK, marking another step by Chinese OEMs into mainstream European markets. The move occurs amid the UK’s ongoing electric-vehicle transition — the government’s ban on new petrol and diesel car sales from 2035 is shaping industry strategy and the domestic EV penetration rate has reached about 28%. Changan’s entry brings the number of Chinese carmakers operating in the UK market to six, intensifying competition around battery range and intelligent driving features. Observers note that localised manufacturing plans — as seen with BYD’s plant in Hungary and Chery’s partnerships in Spain — are a strategic response to potential EU tariffs and trade frictions.
05 London buyers paying a clear “location premium” for commuter homes
A 24 September BBC report summarises research from NatWest (National Westminster Bank) showing London buyers pay, on average, about £42,700 extra to live close to a train or Tube station. The study finds properties within 500 metres of a station cost roughly 8% more than similar homes about 1,500 metres away. By comparison, the near-station premium is about 4.9% (c. £10,900) in Manchester and 4.6% (c. £8,800) in Glasgow. The research also highlights large variations by line: properties around the Circle line command the highest average prices — roughly £729,000 — while the newly opened Elizabeth line has the lowest citywide average; the Metropolitan line, which serves more outer suburban areas, shows a lower average of about £463,000. Notably, surveys rank the Circle line as less desirable to live beside despite its high prices, whereas the Elizabeth line scores highly for resident appeal — a contrast between price and living preference. Economist Andrew Harvey comments that compared with Manchester and Glasgow, London buyers appear willing to pay a much larger premium for transport access, reflecting the capital’s high reliance on public transit and the central role of accessibility in driving property values.
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