Britain’s economic and finance ministry
Andy Burnham has been confirmed as Labour leader and will become prime minister on Monday after Keir Starmer formally resigns. He has pledged a "distinctively Labour" government that will devolve power to regions, prioritise cost-of-living measures and tackle social care while naming a new cabinet, with the chancellor slot the biggest early question.
Thames Water has warned it may run out of cash without a government-backed rescue. Creditors are pressing for recapitalisation and potential public control, with Prime Minister-designate Burnham signaling support for greater public oversight amidst talk of a Special Administration Regime or nationalisation.
The government has signalled a potential lift to the personal tax allowance as a part of post-election policy, while weighing how to fund the move. Analysts propose linking the uplift to inflation or pension policy, with readers watching for detailed plans in the next Budget.
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.
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.