Britain’s economic and finance ministry
Conservative leader Kemi Badenoch has defended offering a former neo‑Nazi, Joshua Bonehill‑Paine, a role advising on culture and integration, amid protests from Jewish groups and victims. Bonehill‑Paine has withdrawn from standing in Crewkerne South for Somerset Council next year and may take an advisory position instead; critics question vetting and the impact on victims.
A coroner has found that the Treasury materially contributed to Chloe Moffat’s death by not applying written disciplinary policy during an informal May 19 meeting. Inquest material shows Mrs Moffat, a personal assistant, died by suicide the day after the meeting. The coroner will issue a Prevention of Future Deaths report to the Treasury and ACAS.
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.
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 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.
Andy Burnham has secured overwhelming MP backing and appears poised to become Labour's leader and prime minister, with nominations advancing and a potential coronation by mid-July. Al Carns has ruled himself out, leaving Burnham as the sole declared candidate as nominations continue and a parliamentary hustings looms.
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.
Savers have boosted cash ISA deposits ahead of planned reforms that would cut the quarterly cash ISA allowance and tax cash within Stocks and Shares ISAs. Independent and Guardian coverage shows a mixed reception: ministers say changes aim to boost investing, while critics warn of added complexity and a stealth tax on cautious savers.
The Defence Investment Plan has been revised to prioritise frontline equipment, drones and rapid-reaction forces. Dan Jarvis has secured additional funding and the plan emphasizes high-speed boats, strike drones and uncrewed vessels, with a focus on the High North amid rising Russian activity. The plan aims to equip troops faster while addressing concerns about funding gaps and the pace of modern warfare.
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.
The Defence Investment Plan (DIP) has been published, detailing a 2.7% of GDP defence spend by 2029 with a 3% target in the next Parliament. The plan shifts funding away from road and energy projects to weapons, drones, and naval capabilities, while promising efficiencies and a long-term upgrade in nuclear deterrence. Several ministers have resigned over the funding levels amid a controversial rollout that may be revisited by a new prime minister.
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.
The Makerfield MP has outlined a ten-year vision to reform the country, advocating clearer funding priorities and a shift away from costly programmes. He has suggested early moves to free resources by scrapping digital ID and has signalled willingness to revisit taxation in pursuit of fairness while stressing unity within Labour.
Andy Burnham has been confirmed as Labour leader at a special conference in London and will become prime minister on Monday after Keir Starmer formally resigns to the King. Burnham has secured overwhelming support from Labour MPs, pledged a "distinctively Labour" government, and promised to devolve power, tackle social care and focus on growth outside London.
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.
The new government is implementing a VAT cut on electricity bills and a 2 bus fare cap, funded by redirecting savings from a scrapped digital ID programme. Officials say the measures will reduce household costs, while ministers debate expanding the personal allowance. Updates indicate the plan is moving ahead despite questions about funding and timing.
Prime Minister Burnham has set out a cost‑of‑living agenda, unveiling measures to ease households’ bills and launch a Northern Downing Street outpost. The plan includes VAT relief on energy, a bus fare cap, and funding to end rough sleeping, with details on funding and timelines updated as the government navigates fiscal constraints.
Prime Minister Andy Burnham has announced a 20% business rates reduction for nearly 32,000 pubs, clubs and live music venues in England from April 2027, a package the government says will save a typical pub about £1,100 a year and cost roughly £100m. Ministers are proposing to fund it by reviewing reliefs for vape shops and cracking down on online tax non-compliance.
The Bank of England has kept Bank Rate at 3.75% in a split MPC vote as rising energy prices linked to Middle East tensions threaten inflation. Six members vote to hold, three call for a hike to 4%. Inflation is expected to rise later this year before easing toward the target.
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.
Public finances tighten as Labour government sets October 28 budget date while pursuing devolution, defence spending and growth plans within fiscal rules amid Iran-related pressures.