Rachel Reeves oversees borrowing spike as benefits spending offsets tax haul May 22, 2026 Rachel Reeves oversaw a surge in borrowing in the first month of the financial year as April’s figures hit the highest since 2020 on higher benefit spend. Government borrowing – which marks the difference between total public sector spending and income – topped £24.3bn in April 2026, according to the Office for National Statistics (ONS). [...]
Reeves food tariffs policy will ‘barely touch the sides’ on supermarket prices May 21, 2026 Food manufacturers and retailers have slammed Rachel Reeves’ cost of living measures, claiming the government’s loosening of food tariffs will do little to help supermarkets to cut prices. The Chancellor urged supermarkets to pass on savings from the stripped tariffs to shoppers “in full,” but retailers fear this measure will “barely touch the sides,” City [...]
Reeves unveils ‘Great British Summer Savings’ at cost to energy giants May 21, 2026 Chancellor Rachel Reeves has unveil edthe government’s “Great British Summer Savings” campaign, committing hundreds of millions of pounds to lower costs for families by taxing energy companies more. Under a new price adjustment set by the government, children aged five to 15 will be able to travel free on participating local bus services across England from [...]
As it happened: Stocks jittery as Iran war drags on; Reeves unveil cost-of-living package May 21, 2026 Welcome back to the Morning Wire liveblog. Donald Trump has warned Iran there are two options that could see the US finishing the war in Iran, with one that will “see a few people killed as opposed to a lot”. He added: “We could do it either way.” It’s the latest threat from the White [...]
Burnham’s ‘neoliberalism’ critique is just Thatcher karaoke May 21, 2026 The British economy today is a million miles away from “neoliberalism”, even if we lack a catchy name to describe what has replaced it, says Kristian Niemietz For some countries, we have well-developed national stereotypes and associations. Everyone has an idea in their mind of what counts as “typically French”, “typically Italian” or “typically German”. [...]
New HS2 budget to blow £33bn hole in public finances May 21, 2026 The government will need to find as much as £33bn in additional cash from tax and spending measures or from other departments to fund its revamped plans to deliver HS2. According to a Morning Wire analysis, the Department for Transport’s updated proposals for the rail line require between £18bn and £33bn of additional public money [...]
London leads European investment despite wider UK decline May 21, 2026 London retained its crown as the most attractive destination in Europe for foreign direct investment last year, despite a fall in UK projects and overall numbers across the continent tumbling. Greater London outperformed both the wider UK and Europe by recording a five per cent year on year increase in foreign direct investment (FDI) projects [...]
Top Bank of England officials warn Reeves against supermarket price cap May 20, 2026 Senior Bank of England officials have warned that price controls on essential goods are not an effective long-term tool to lower the cost of living, after it emerged the Treasury was pushing supermarkets to commit to cap prices of consumer staples. Speaking at a Treasury Committee appearance, governor Andrew Bailey told MPs that controlling the [...]
Wes Streeting urges Labour to help youth ‘as an emergency’ May 20, 2026 Wes Streeting has called on the government to support young people “as an emergency” in a resignation speech that accused Sir Keir Starmer of leading a losing battle against Reform UK. Streeting said he supported Chancellor Rachel Reeves’ economic agenda before the Iran war broke out and upended policy-making, though he suggested the Labour leadership [...]
Housebuilders on hook for mansion tax if they fail to sell property after a year May 20, 2026 Property developers will be forced to pay the Labour’s new mansion tax if they take more than a year to offload newly built luxury homes, raising fresh fears that housebuilders will be further disincentivised from building homes in the capital. As part of plans included in a Treasury consultation document, housing developers will be liable [...]