English journalist; economics editor for The Guardian
The OECD has updated its global forecast, predicting UK growth of 1.1% in 2026 and 1% in 2027, with inflation easing to about 3.1% this year. It cautions that energy shocks from the Middle East war and higher fuel prices could lift inflation and slow growth next year, though the UK shows resilience in domestic demand.
Financial markets are pricing in the political shift toward a Burnham-led government, with mortgage costs sensitive to fiscal signals. Housing policy is expected to intensify, with calls for a major council-house building programme and tighter rental regulation. Homeowners, buyers and landlords should watch mortgage rate trajectories as markets interpret the new government’s fiscal discipline and spending plans.
The government has taken British Steel into public ownership to protect steel production in the UK, secure thousands of jobs, and safeguard national infrastructure. Parliament has enacted new powers allowing state intervention, with ministers aiming to stabilise the plant, back communities, and modernise the sector toward green steelmaking.
The UK has announced a substantial reduction in overseas development aid to Africa, with direct support projected to fall by up to 90% in some countries by 2029 as the government reallocates funds to defence. The plan covers multiple nations, including Malawi, Mozambique and DRC, sparking criticism from development groups about heightened risk to health, education and humanitarian programs.
The NHS has been forced to confront ongoing summer pressures as heatwaves drive higher A&E attendances, equipment failures, and drought-related health risks. Officials say planning for summer pressures is now essential, with public awareness campaigns and infrastructure upgrades in focus.
GDP has expanded by 0.4% in Q2, driven by services and a hot-weather World Cup boost. Yet growth remains delicate amid high energy prices and geopolitical tensions, with Treasury modelling warning of a slower 2027 if Iran-hostilities persist.
New prime minister has framed his premiership as a circuit breaker, pushing devolution and local control as keys to growth. Mayors will gain tax receipts and civil service support to drive local projects, with 18 authorities piloting secondments and a data-sharing program.
Andy Burnham has unveiled a long-term plan to recover the economy, restore public confidence and tighten control over essential services. He has pledged to fund defence commitments, cut household bills and reframe public ownership, while signalling a shift toward problem-solving governance.
Global central banks have tightened policy in response to a surge in energy prices and sticky inflation. The US Federal Reserve has raised its policy rate to 3.75–4.00% and signalled further hikes; the ECB has lifted its key rate to 2.50%; the Bank of England has held at 3.75% but warned higher energy costs will force future rises. Markets are repricing yields and mortgage costs are rising.