Britain’s finance ministry, steering public spending and economic policy
The Scotch Whisky Association has warned that the duty increase will push the tax burden on an average bottle to 74%, stalling investment and growth in Scotland’s whisky sector. Across Scotland, distillers say the policy hurts jobs, the supply chain and hospitality, while small producers are exempted in other beverages.
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.
Labour has set October 28 for its autumn budget, pledging fiscal discipline. Ministers say the plan will fund devolution, defence and growth while maintaining the party’s rules, even as borrowing costs rise and the Iran conflict strains public finances.
A record summer of heat, drought and wildfires has prompted an emergency Cobra meeting and voluntary retailer suspensions of disposable-barbecue sales. Green groups have written to Prime Minister Andy Burnham urging him to call the crisis 'climate change' and stop new North Sea drilling; Reform UK deputy leader Richard Tice has questioned net zero and urged adaptation and celebration of warmer weather.
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 Bonehill‑Paine has withdrawn from standing in Crewkerne South for Somerset Council next year and may take an advisory position instead; critics question vetting and the impact on victims.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.
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.
Public borrowing in July stands at 1.8 billion, above forecasts, with four-month deficit at 56.7 billion. Tax receipts hit a record for July, but spending growth outpaced receipts, keeping debt near 3 trillion and GDP share at about 94%. Chancellor Healey to unveil October Budget amid fiscal discipline pledges.
Independent review led by Jerry Schurder will probe how pubs and hotels are valued for business rates, with March 2027 target for findings. The government has cut pub rates by 20% from April next year and is weighing broader reforms to the system.
The latest data show the U.S. debt level has surged to around $40 trillion, with deficits remaining large and interest costs rising. The government must refinance vast sums this year as deficits persist, and the nation faces a fiscal reckoning that will influence households, politics and investment decisions for years to come.
The government has framed its approach to the October budget around boosting growth while preserving fiscal discipline. Chancellors have signalled a commitment to devolution, welfare reform, and a tighter budget in response to high borrowing costs and global instability.
The government has given English 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 push up prices, reduce demand and cost jobs; mayors argue revenue will fund local services and infrastructure from 2028.
The triple lock has raised costs and sparked calls for reform. Governments and thinktanks say the system is expensive and unsustainable; opponents urge targeted support for pensioners, while some advocate linking uplifts to inflation only. The debate centers on funding, fairness, and youth opportunities as the policy’s future comes under review.
Britain seeks closer access to European markets as the EU pushes the Industrial Accelerator Act to curb China’s role in Europe’s supply chains. Britain warns against new barriers while exploring a reset with Brussels.
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.
The chancellor has announced measures to cut energy costs, extend VAT relief, and remove gas standing charges, arguing the plan will ease the cost of living and spur growth. The package includes extending the VAT cut on electricity, extending the 5p fuel duty cut, increasing the minimum wage, and funding for Scotland’s defence and tech programs. The move is framed as a budget for working people, with targeted support for households in England and England-only measures noted for some slotted programs.