UK borrowing surges, Rachel Reeves to "defend Britain" in US tariff talks while Elon Musk shifts Tesla focus

Chancellor Rachel Reeves is in Washington for IMF talks. She says she’ll “defend Britain’s interests” and push for a US trade deal. The visit comes as global uncertainty grows, with the IMF warning Trump’s tariffs will hit world growth.

Meanwhile, the UK government borrowed more than expected last year. Public sector borrowing hit £151.9 billion in the year to March. That’s £14.6 billion above forecast.

More focus on Tesla says Musk and more business in brief

Elon Musk says he’ll focus more on Tesla from May. This follows a sharp fall in profits and criticism over his role in Trump's government. Tesla’s Q1 profits dropped 71 per cent, down to $409 million. And in other news:

• Reading FC have agreed terms with a buyer, and the EFL has extended the deadline to complete the deal. They now have until May 5 to finalise the sale. The buyer’s identity is still officially under wraps.

• Heathrow’s passenger numbers held steady in early 2025. The airport welcomed 18.2 million travellers in Q1 - just below last year’s 18.5 million. Revenue rose 2.1 per cent to £825 million, thanks to more long-haul flights and stronger retail and property income.

• Hobbycraft will close at least nine UK stores. 126 jobs are at risk under a new restructuring plan. Modella Capital, who bought the firm last August, is leading the changes.

• Finally, online retailer THG has turned down a major offer. A £600 million bid for its Myprotein brand was rejected. The approach came from Selkirk, led by THG’s former chair. The company called it “unsolicited, unfunded, and non-binding.”