UK Businesses Raise Inflation Expectations Amid Energy Crisis
UK businesses have significantly raised their inflation expectations, with a Bank of England survey indicating a forecast of 3.5% inflation over the next year, up from 3% previously, marking the highest level since late 2023. The increase is attributed to rising energy costs linked to the ongoing conflict in the Middle East, particularly the effective closure of the Strait of Hormuz, which has driven oil and gas prices higher. Companies now expect to raise their prices by an average of 3.7% in the coming year, while anticipated interest rate cuts have been reduced to just one over the next 12 months, reflecting concerns over persistent inflation.
Ofwat nears deal to shield Thames Water from fines
Ofwat is reportedly nearing a deal with Thames Water that would allow the company to avoid fines for the next four years, contingent upon its commitment to invest in its operations. This arrangement, proposed by creditors seeking to prevent the utility's temporary renationalisation amid its £17.6bn debt crisis, would cover only fines from Ofwat, leaving the company vulnerable to penalties from the Environment Agency and ongoing legal challenges. The deal, which has faced criticism and would require a three-month public consultation, comes as Thames Water's customers are expected to see bill increases of over a third by 2030.
UK appoints police chief to lead democracy protection unit
Police chief Chris Balmer has been appointed to lead a new national democracy protection unit in the UK, aimed at addressing the rising threats and abuse faced by Members of Parliament (MPs). Reports of crimes against MPs have more than doubled since 2019, with nearly 1,000 incidents recorded in 2025, including 50 death threats, prompting calls for enhanced security measures. The initiative comes as MPs express concerns over the increasing prevalence of harassment and threats, with many incidents remaining unreported.
Storm Dave to Bring Severe Weather to UK
The Met Office has named Storm Dave, which is expected to bring very strong winds and heavy snowfall to the UK over the Easter weekend. Wind gusts of 60-70 mph are forecasted for parts of Scotland, Northern Ireland, north Wales, and northern England, with potential gusts reaching up to 90 mph in exposed coastal areas. A yellow weather warning for wind and snow has been issued, particularly for northwest Scotland, where accumulations of 10-20 cm of snow are possible, leading to blizzard conditions.
