Business leaders have urged incoming prime minister Andy Burnham to make reducing UK energy costs a day-one priority. The CBI and Energy UK argue that removing policy charges from electricity bills could cut costs by as much as 20% for some companies and generate £130 billion of additional economic activity by 2050.
UK government borrowing costs rose above 5% after renewed fighting between the United States and Iran pushed oil and gas prices higher. The increase in gilt yields reflects growing concern about inflation, further Bank of England interest-rate rises and pressure on the public finances, mortgages and business borrowing.
US inflation fell more sharply than expected in June as lower gasoline and energy prices reduced the annual rate from 4.2% to 3.5%. The figures have eased expectations of an immediate Federal Reserve interest-rate rise, although renewed conflict in the Gulf and rising oil prices could reverse part of the improvement.
China’s economy grew by 4.3% in the second quarter of 2026, its weakest rate in more than three years. Strong exports and high-tech manufacturing were offset by weak consumer demand, falling investment and a continuing property downturn, with important implications for UK exporters, importers and manufacturers.
Renewed Middle East tensions have pushed up oil prices, UK borrowing costs and expectations of further interest-rate rises. However, stronger consumer spending, improving retail results and proposals to unlock billions of pounds in new lending provide some positive news for British businesses.
Greek banks are expected to deliver net credit expansion of €10 billion to €12 billion in 2026, with analysts forecasting average annual loan growth of around 8% through 2028. EU recovery funding and investment in tourism, energy and shipping are driving demand, although many smaller businesses remain excluded from finance.
Britain’s regional household income divide has barely changed since 1997, with many of the poorest and richest areas retaining their positions. The Resolution Foundation says closing the gap will require sustained investment in transport, housing, productivity and regional cities.
Coffee prices are rising across Britain as cafés face expensive beans, higher wages, employment taxes, business rates and volatile energy costs. A £6.50 flat white in central London highlights the pressure, although prices vary considerably across the country.
The UK and Switzerland have concluded a landmark services-focused trade agreement covering professional mobility, digital trade, investment and public procurement. The government estimates it could eventually increase British services exports by £5.2 billion a year, although the deal must still be signed and ratified.
UK fixed mortgage rates have recorded their fastest monthly fall since October 2024, with average two-year and five-year deals both declining to 5.52%. Greater product choice offers relief to borrowers, although rates remain above their levels at the beginning of 2026.
