UK Treasury in the news as UK budget, forecasts and fiscal policy spark debate amid inflation and cost‑of‑living pressures. HMT, the finance ministry, steers public spending and economic policy.
Sir Keir Starmer has announced he will resign as leader of the Labour Party and will remain prime minister until his successor is chosen. Nominations will open on July 9 and close before the summer recess on July 16. Andy Burnham has declared his candidacy and commands wide parliamentary support, making an uncontested handover likely by mid‑July.
The NPR project has a £45bn funding cap and aims to connect northern cities with new or upgraded rail lines. MPs warn it risks repeating HS2’s failures, with unclear costs, routes and governance. The government maintains a disciplined, phased approach while engaging mayors and Network Rail.
Labour’s leadership timetable has been approved by the NEC, with Andy Burnham on track to become prime minister as early as 17 July if he secures the necessary support. If more candidates qualify, a party member ballot runs from 6 to 27 August, with a winner announced on 29 August. Keir Starmer remains PM until the process concludes.
The incoming UK prime minister is urged to boost defence spending to 3.5% of GDP by 2035 as experts warn current plans are too bare to deter threats from Moscow. A Defence Investment Plan is due to be published before the NATO summit, with ministers negotiating funding amid resignations in the MoD.
Britain’s Defence Investment Plan has been published, signalling a £15bn uplift to core spending but falling short of the £28bn sought by defence chiefs. The package includes progress on a drone transformation and nuclear deterrent funding, while ministers warn that some road and energy projects will be scrapped to fund it. The timing is sensitive as a new prime minister prepares to take office.
Prime Minister Starmer warns that the Middle East conflict will affect the UK economy and household costs. The government is implementing support measures, including a crisis fund and energy bill caps, as it monitors escalating global tensions and their economic fallout.
COFEK has argued that the Finance Bill 2026 introduces a “hidden digital taxation” with retrogressive VAT changes and broadened tax powers that would burden consumers and small businesses. They warn that redefining royalty and management fees to cover digital payments could impose withholding taxes on digital transactions, affecting interchange and merchant charges. The lobby is calling for a 12‑month transition and restoration of zero-rated basic goods, while criticizing a 20% withholding on gambling winnings and a 25% excise on mobile phones activated on Kenyan networks. They also warn this could breach EAC rules and privacy safeguards in the virtual assets framework. Parliament is now reviewing submissions ahead of the third reading.
The government has moved up the removal of the de minimis import relief to October 2028, after discussions with industry. Retailers call the timeline still too slow, arguing it leaves UK high streets at a competitive disadvantage to foreign online sellers.
The Crown Estate has posted a drop in revenue account profit to £487m for the year, down from £1.1bn, with most of the decline tied to fading offshore wind option fees as wind farm projects move into construction. Net asset value, however, rose to £16.7bn amid higher property values. Marine profits rose to £175m, while real estate and development profits increased to £258m.
The government has introduced changes to ISAs aimed at steering savers from cash into investments, drawing support from policymakers for boosting growth while critics warn of added complexity and a stealth tax on cautious savers.