Tom Rees

UK government borrowing hit the highest April level in six years, as pressure on the public finances mounts from the Iran war and political instability at home.

A smile on his face, Keir Starmer approached reporters outside Downing Street on Thursday to talk up recent data that suggested that Britain was the fastest growing economy in the Group of Seven.

Andy Burnham, the hot favorite to be Britain’s next prime minister, has boasted of a growth miracle in Greater Manchester where he’s been mayor for just under a decade.

UK households will see the biggest increase in energy bills since 2023 as the war in Iran drives up wholesale gas and power costs, adding to broader inflationary pressures weighing on the economy.

Bank of England rate-setter Catherine Mann warned that the long run of “good luck” central bankers have enjoyed in keeping a lid on inflation has run out as a more shock-prone era sets in.

UK house prices fell for the first time in five months, according to one of Britain’s biggest mortgage lenders, suggesting the surge in borrowing costs triggered by the Iran war is placing a strain on prospective homebuyers.

UK factories grew at the fastest pace in four years as the industry sought to get ahead of price increases and supply strains triggered by the Middle East conflict, a key survey found.

Britain was still grappling with the explosion of government debt accumulated during the Napoleonic Wars and the industrial revolution was beginning to transform the world. In 1834, the UK had 90 taxes in place with duties on everything from servants to stage coaches.

Bank of England Governor Andrew Bailey warned the UK economy faces a worrying combination of an aging population and rapidly rising levels of young people out of work and education.

The Bank of England should ditch proposals to temporarily limit holdings of stablecoins and loosen rules on the assets backing them, according to a report by lawmakers in the House of Lords.