UK Economists Raise Inflation Forecasts Amid Energy Surge
Economists have raised their inflation forecasts for the UK due to a surge in energy costs, prompting expectations that the Bank of England will maintain its interest rates at 3.75% during its upcoming Monetary Policy Committee meeting. The UK unemployment rate remains at a post-pandemic high of 5.2% as inflation was recorded at 3.4% in December 2025, above the Bank's target of 2%. The Bank projects inflation to fall to 2.0% by June 2026.
UK Unveils Steel Strategy to Boost Domestic Production
The UK government, led by Business Secretary Peter Kyle, has announced a new steel strategy aimed at boosting domestic production by setting a target for 50% of steel used in the UK to be made locally, with 50% of that production to occur in Wales. Starting in July, import quotas on foreign steel will be reduced by 60%, and a 50% tariff will be applied to any imports exceeding these quotas. This £2.5 billion initiative is intended to protect the UK steel industry from international competition, particularly from China, and aligns with broader efforts to transition to greener steel production.
Starmer doubts government action on energy bills
Keir Starmer, leader of the UK Labour Party, stated that the government is unlikely to implement measures to protect households from rising energy bills until consumers are directly impacted. In contrast, Green Party leader Zack Polanski proposed a plan to prevent increases in household energy costs through higher taxes on capital gains, which he estimates would raise £8.4 billion.
Sunak Faces Questions Over Mandelson's US Ambassador Appointment
UK Prime Minister Rishi Sunak faced scrutiny in Parliament regarding his appointment of Peter Mandelson as ambassador to the US, amid revelations of Mandelson's ties to convicted sex offender Jeffrey Epstein. Despite repeated questioning from Conservative leader Kemi Badenoch, Sunak did not confirm whether he consulted Mandelson about his relationship with Epstein before the appointment, which has been criticized for posing a "reputational risk." Meanwhile, British authorities are seeking assistance from the US Justice Department in ongoing investigations into Mandelson and Prince Andrew, both of whom have been arrested on suspicion of misconduct in public office.
Retired Officer Defends Early Charge in Murder Case
Retired Det Supt Leigh Sanders testified at the Nottingham Inquiry, stating that Valdo Calocane was charged early in connection with a murder case, countering claims that the charge was intended to suppress critical media coverage. Sanders noted that police believed Calocane had committed murder and expressed regret over communication failures with victims' families, while PC Johnathan Speeden highlighted operational disagreements during the investigation.
