UK Government department and senior decision hub
Capita has warned it could knock £25m-£40m off annual profits for 2026 as delays and backlogs in the Civil Service Pension Scheme persist. The outsourcing group has apologised for the poor service and faces government sanctions while MPs press for accountability as civil servants wait for payments and retirement quotes.
The Covid inquiry has found a “vast” waste of taxpayers’ money in PPE procurement during the pandemic, with almost two-thirds of the £14.9bn spent wasted. It criticises the VIP lane for favoured contracts and highlights inadequate stockpiles and planning.
Andy Burnham has become prime minister and has announced a cabinet that removes key Starmer allies, appoints John Healey as chancellor and moves Ed Miliband to the Foreign Office. Burnham has promised immediate measures to give households "breathing space", to end rough sleeping and to set out how he will pay for his plans this week.
Civil service pension delays after Capita's takeover have left thousands waiting on payments, with some facing rent arrears and food-bank use. The government vows to insource the scheme and enforce improvements as auditors review Capita’s systems.
New prime minister Andy Burnham has vowed to end rough sleeping in the UK, backed by 340m in new funding to create 1,200 homes and provide intensive support for at least 3,000 rough sleepers over five years. The programme builds on Covid-era measures and Manchester’s Bed Every Night, as rough sleeping numbers remain at record levels in 2025, with 4,793 people sleeping rough on a single autumn night.
Mayors will keep a share of income tax and business rates from 2027-28, replacing central grants and empowering local areas to fund transport, housing and jobs. The reform is pitched as the biggest transfer of power in a generation, with details to be announced in the autumn budget as Burnham leads devolution push.
The government has overhauled the 90 billion public procurement system to prioritise young people’s employment and local skills development. The changes double the weight on social value from 10% to 20% for larger contracts, with extra credit for creating local jobs, training, and 45-day work experiences for youths. Green groups warn environmental safeguards must not be sacrificed. Citizens and businesses will be affected as the policy rolls out.
Japan’s real GDP has grown at a 0.3% quarter-on-quarter pace in Q2, with annualized growth of 2.1%, driven by exports and government spending. Private spending has slipped, while energy costs and the Iran war have pressured prices. The Bank of Japan maintains a cautious outlook as wage growth remains tepid.
The government has given English regional mayors the power to charge an overnight visitor levy as a percentage of accommodation costs with no statutory upper limit. Industry groups and major hotel chains have warned the uncapped power will raise prices, reduce demand and cost jobs; mayors say revenue will fund local services and infrastructure from 2028.
Leaders of the largest AI labs have endorsed slowing model development, while policymakers press for safeguards. Governments weigh emergency measures, with UK officials resisting a national kill switch and urging targeted interventions.
Two crypto billionaires have donated 72m to Reform UK, triggering a debate over caps on overseas and domestic political contributions as Parliament considers the Representation of the People Bill. The government is pushing to tighten rules while reform argues donations are legal. The story is developing as Lords debate the bill.
The cabinet secretary’s exit payment has been disclosed as 859,496 pounds, the largest severance for a civil servant. Reports show ministers approved the payment amid questions of value for money; accounts reveal ongoing scrutiny of exit terms for senior officials.