UK Economy

Friday is heating up across the UK, with a new heatwave in full swing, temperatures are set to creep into the 30s this weekend. Health alerts have been issued for many parts of the country, with the sweltering conditions expected to linger into the start of next week.

The week ends with a big political win for the prime minister after getting his migrant deal with France over the line. The one in, one out deal, though criticised by the opposition parties, will reduce illegal crossings to the UK. The deal is set to come into effect within weeks, and is a nice distraction for Starmer after weeks of chaos over policy.


In some tough news for the chancellor, the UK economy shrank unexpectedly in May, according to the latest official figures, contracting for the second month in a row. It’s a blow for Chancellor Rachel Reeves, with the government having made boosting economic growth its key priority.

Wimbledon and the Lionesses dominate the sports pages, with all Brits out of the Championship and the Lionesses set to face Wales in a must-win match on Sunday!

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 and EU have finalised a post-Brexit trade deal after extensive negotiations, addressing contentious issues including fishing rights, which will now allow EU access to UK waters for 12 years.

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.

From our sponsors
Advertisement
Advertisement