UK private sector growth accelerates to 21-month high
The UK's private sector recorded its fastest growth in nearly two years in January 2026, driven by technology and financial services, as the S&P Global purchasing managers' index rose to a 21-month high of 53.9, up from 51.4 in December. This growth, equivalent to an estimated quarterly GDP increase of 0.4%, reflects a rebound in the services sector and improved business optimism following the recent budget. However, the hospitality sector continues to face challenges under Labour policy, with firms reporting a reduction in job numbers.
Andy Burnham Faces Deadline for Gorton By-Election Candidacy
Andy Burnham, the mayor of Greater Manchester, is facing pressure to decide whether to contest the upcoming by-election for the Gorton and Denton seat following the resignation of MP Andrew Gwynne due to health issues. The Labour Party's national executive has given Burnham until 5pm on Saturday to seek permission to stand, amid divisions within the party regarding his potential candidacy, which could challenge the leadership of Prime Minister Sir Keir Starmer. Former deputy prime minister Angela Rayner has publicly supported Burnham's bid, while others within Labour express concerns about the implications of his return to Westminster.
Wales set for pivotal election amid Labour decline
Voters in Wales are set to elect a new devolved government in just over 100 days, with opinion polls indicating a potential historic shift away from Labour, which has dominated Welsh politics since devolution began in 1999. Analysts suggest that the Welsh nationalists Plaid Cymru and Reform UK are emerging as strong contenders, with Plaid possibly positioned to become the largest party for the first time, reflecting significant changes in voter sentiment. This election is seen as critical not only for local governance but also for the future of Labour under Sir Keir Starmer, as a loss in Wales could have profound implications for the party's standing across the UK.
