Browsing: UK Economy

UK Economy latest news, scoops and debates over the British economy and what it means for business … and you’re pocket.

Let’s grab a coffee and dive into this morning’s headlines — it’s a busy one! From rising inflation giving wallets a bit more to worry about, to the UK taking a firm stand on the Gaza crisis, and Donald Trump unveiling a space-age missile defence plan (yes, really) — here’s your quick catch-up on the stories making waves across the UK today.

Good morning! Grab a coffee and let’s dive into today’s headlines.

In a significant development, the UK, France, and Canada have jointly warned Israel of “concrete actions” if it continues its military operations in Gaza and restricts humanitarian aid.

Meanwhile, Prime Minister Keir Starmer has secured a landmark “Brexit reset” deal with the EU, aiming to revitalise UK-EU relations. The agreement includes easing trade barriers, reintroducing the UK into the Erasmus programme, and establishing a new defence partnership. While the deal promises economic benefits, it has faced criticism over concessions like extended EU fishing access to UK waters.

On the trade front, the UK is actively pursuing a free trade agreement with the Gulf Cooperation Council, comprising six Gulf nations. Recent discussions between UK officials and Gulf leaders indicate progress towards strengthening economic ties in the region.

Internationally, tensions remain high as global leaders respond to the escalating situation in Gaza, with calls for ceasefires and increased humanitarian assistance.

Donald Trump has said Russia and Ukraine will “immediately” start negotiating towards a ceasefire and an end to the war – after a two-hour phone call with Putin.

The UK and European Union have announced a comprehensive agreement aimed at resetting relations post-Brexit. Key elements include a commitment to work towards a common sanitary and phytosanitary (SPS) area, and aligning UK rules with EU standards on plant and animal health.

The UK’s leading business lobbying group, the CBI, is calling for a major reset in relations with the EU, saying the current post-Brexit setup is “no longer fit for purpose”. Ahead of a UK-EU summit on 19 May, the group has urged both sides to rebuild trust and take “practical steps” to reduce red tape, ease staff mobility, and coordinate on climate, defence and energy.

Thursday’s headlines see coverage of the government’s plans to ease the pressure on prisons across England and Wales, as a report says prisons will run out of space by November. The government has announced a series of measures which include early release for some offenders as part of the plans to tackle the overcrowding. The government also announced they will build three new prisons – but despite the dire state of the prison system, the plans still might not be enough to tackle the problem.

The UK economy grew unexpectedly in the first three months of 2025 – a major win for the government, especially the chancellor, who’s been under increasing pressure over the state of the economy and the government fiscal plans. The ONS said the growth was driven by the service sector and production. But the joy might be short-lived, the figures mark the period just before the US imposed tariffs.