Tuesday, 24 March 2026
UK 10-year gilt yields have surged to their highest levels since 2008 as traders anticipate four interest rate increases from the Bank of England this year, driven by inflation concerns. The government's borrowing costs are on track for their worst month since Liz Truss's tenure, influenced by recent developments in US-Iran talks and rising energy prices.
Sir Keir Starmer acknowledged a funding shortfall in the UK government's proposed defence plan, stating that the target to increase defence spending from 2.5% of GDP in 2027 to 3.5% by 2035 lacks adequate financial backing. He emphasized the need for a detailed funding strategy to support a 10-year military spending blueprint, attributing delays to the previous government's over-commitment and underfunding. Starmer noted that an additional £6 billion would be required by 2029 to meet the funding goals outlined by the Office for Budget Responsibility.
Offshore Energies UK (OEUK) has called on the UK government to urgently reopen North Sea oil fields for new drilling projects to enhance energy security and reduce reliance on imports amid rising global instability. The industry body warns that without increased domestic production, the UK risks becoming more vulnerable to price shocks, as oil and gas currently supply about 75% of the nation's energy needs. OEUK also advocates for the replacement of the Energy Profits Levy with a new pricing mechanism to unlock £50 billion in investment.
Chancellor of the Exchequer Rachel Reeves is set to outline principles for eligibility regarding energy bill support in response to the economic impact of the ongoing war in Iran. In her address to MPs, she will discuss the domestic implications of the conflict, including energy security and a new anti-profiteering framework aimed at regulating price exploitation. Reeves is expected to indicate that not all households will receive support, as the government assesses the feasibility and affordability of potential measures.
The UK government, led by Education Secretary Bridget Phillipson, is reviewing the eligibility thresholds for free childcare as spending on the program reaches £9 billion. The initiative includes the opening or expansion of nursery classes in 13 small towns and villages in Lancashire, aimed at addressing childcare shortages and providing quality early education close to home.
One email per day. Unsubscribe anytime.