Prime Minister Andy Burnham faces mounting pressure to detail how he will fund key policy pledges, including removing VAT from electricity bills, increasing defence spending, and accelerating a national care service. His new government prioritizes easing the cost of living but must navigate fiscal constraints and internal party disquiet.
Almost two-thirds of low-income UK families struggle to afford essentials, a record 7.4 million households, according to JRF. New PM Andy Burnham pledges VAT cuts on electricity, but charities warn this offers limited relief as incomes fail to keep pace with rising costs.
Prime Minister Andy Burnham has announced a VAT cut on household electricity bills from 5% to zero, effective October 1, to ease cost of living pressures. This move, saving typical households £45 annually, is part of broader efforts that include reviewing the tax-free personal allowance and social care reform, facing significant funding challenges.
A new Guardian poll reveals 95% of Americans believe the US is facing an affordability crisis, with many struggling to afford groceries and gas. Economic sentiment has worsened across party lines, impacting upcoming midterm elections.
City bosses and trade unions are clashing over a potential tax on UK banks to fund support for struggling households. While bankers warn of "economic suicide," unions argue Britain can't be "held hostage" by lobbyists, citing rising costs and defense needs. Andy Burnham's proposal for extra household support has reignited debate on a bank windfall tax.
A new poll suggests Andy Burnham could secure Labour a significant majority by adopting 'economic populist' policies like rent controls and higher wealth taxes, contrasting with a potential loss of seats if the party maintains its current trajectory.
Ten years after Brexit, columnist Larry Elliott restates his leftwing case for leaving the EU, arguing Europe isn't working economically and Brexit offers an opportunity for Britain to pursue a different economic model.
Labour leader Keir Starmer faces unprecedented opposition attacks on his climate and energy policies, a shift from past cross-party consensus. Kemi Badenoch and Reform party are challenging net zero targets, while internal Labour debates have watered down investment pledges. Experts argue this is a misreading of public support for climate action.
Denmark's new left-leaning government, led by Mette Frederiksen, will implement measures to address the cost of living crisis, including halving VAT on food and offering free public transport to the youth. The government also pledged to uphold the kingdom's sovereignty against US pressure over Greenland.
Green Party leaders Zack Polanski and Caroline Lucas advise listening to Reform UK voters' concerns to address inequality, citing decades of austerity and unmet promises as drivers for Reform's appeal.
Over a million people in the UK now hold second jobs due to rising costs and insecure work, pushing them into the gig economy. Individuals like Billy-Jo Pierce and Engy Elboreini are juggling multiple roles to survive, facing burnout and financial instability.
Restaurateurs have criticized a temporary VAT cut on children's meals as a "soundbite" that will have little impact on families or businesses, arguing for broader VAT reductions to address rising costs in the hospitality sector.
UK government announces cost of living measures like VAT cuts & free bus rides, but they fail to address energy import shocks. Rising energy bills and global crises threaten household finances, highlighting the need for faster transition to clean power and greater state-led resilience.
Keir Starmer announced an extension to the 5p fuel duty cut and a 12-month vehicle tax holiday for hauliers, citing cost-of-living pressures and the impact of the US-Israeli attack on Iran on fuel prices.
Household energy bills in Great Britain are forecast to rise by over £200 annually from July, reaching nearly £1,900, due to increased wholesale energy prices linked to the Iran war disrupting Gulf supplies. Experts warn of continued high costs and urge a shift to renewables.
UK households face an estimated £200 annual increase in energy bills, reaching nearly £1,900 from July, due to rising wholesale prices linked to geopolitical events. Experts suggest targeted support and a shift to renewables for long-term stability.
The UK economy grew 0.6% in Q1 2026, beating expectations, but economists warn of weakening growth ahead due to global conflict and potential leadership battle in the Labour party, which Chancellor Rachel Reeves warns could plunge the UK into chaos.
Dip in credit card spending in April, particularly on travel, suggests Britons preparing for harder times amid Iran war falloutHouseholds cut back on their spending in April at the fastest pace in 16 months, as the conflict in the Middle East provoked fears of another cost of living crisis, a report from one of the UK’s biggest banks has suggested.Barclays, which processes nearly 40% of the UK’s credit and debit card transactions, said its data showed there had been a 0.1% fall in card spending last month compared with a year earlier. This was the first year-on-year fall since November 2024. Continue reading...
Dip in credit card spending in April, particularly on travel, suggests Britons preparing for harder times amid Iran war falloutHouseholds cut back on their spending in April at the fastest pace in 18 months, as the conflict in the Middle East provoked fears of another cost of living crisis, a report from one of the UK’s biggest banks has suggested.Barclays, which processes nearly 40% of the UK’s credit and debit card transactions, said its data showed there had been a 0.1% fall in card spending last month compared with a year earlier. This was the first year-on-year fall since November 2024. Continue reading...
PwC survey reports fast fall in consumer confidence with people worried about Iran war’s impact on economy and personal financesBritish households are bracing for a new cost of living crisis, as the impact of the Middle East conflict dampens confidence in the economy and personal finances, a survey has suggested.Consumer confidence in the UK has dipped over the last three months at the fastest rate since June 2022, when inflation in the UK was soaring as a result of Russia’s invasion of Ukraine and the spike in commodity prices. Continue reading...
Rolling coverage of the latest economic and financial newsClimate campaigners attack Shell over ‘windfall’ profits from Iran warDanny Gross, climate campaigner at Friends of the Earth, says Shell’s profits are ‘indefensible’, after the company doubled its quarterly earnings to $6.9bn this morning.Gross says:“Once again, fossil fuel giants are pocketing monstrous profits while drivers are being squeezed at the petrol pump and households are set to pay higher energy bills.“Our fossil fuel-reliant energy system siphons money away from ordinary people to the rich and powerful.“In the twenty-first century we have cheaper, cleaner alternatives that we can use to power Britain without anybody being bombed. We don’t need to let the fossil fuel industry hold us to ransom and pass on the costs of endless wars and limitless pollution.The cost of living crisis, the climate crisis, the middle-east crisis, these are all oil industry operating costs. We need to stop subsidising them, introduce new taxes to make them pay and start taxing their obscene profits properly.”Adjusted Earnings, compared with the fourth quarter 2025, reflected higher contributions from trading and optimisation mainly impacting our Downstream, Renewables and Energy Solutions businesses, higher realised prices, higher refining margins, lower operating expenses and higher Lubricants margins, partly offset by lower volumes.“While people around the world struggle with soaring energy costs, Shell is raking in billions in added profit. The same crisis that is driving these windfalls is pushing millions closer to hunger and hardship.“Governments must act now to tax these excess profits and use the money to protect vulnerable households and expand affordable, homegrown renewable energy. Continue reading...
Food prices are on track to be 50% higher in November 2026 than at the start of the cost of living crisis in 2021, according to ECIU thinktank research. Climate and energy shocks have driven an almost quadrupling of food price growth, with costs rising in five years at roughly the same rate as the previous two decades. Staples including pasta, chocolate, eggs and beef are significantly more expensive, while household food bills rose by £605 over 2022-2023.
The author, a UAW member, explains why they will join over 3,000 May Day protests across the US – double last year's count. Workers are calling for a strike against billionaire rule, angry at both Trump and a Democratic establishment that abandoned the working class. Drawing parallels to the 1886 eight-hour day movement and Haymarket Square, the author argues a new oligarchy is waging class war and workers must organize rather than wait for political salvation. The UAW has set contracts to expire on May Day 2028, preparing for a general strike.
On May Day 2026, workers worldwide demonstrate against rising living costs linked to the Middle East conflict. European trade unions, representing 93 organizations across 41 countries, reject bearing the price of Trump's Middle East war. France expects 100,000+ participants in 320 marches, with Paris parade from République to Nation.
