UK

It is the highest monthly surplus since records began in 1993 (not inflation-adjusted). January 2025 surplus was £15.4bn. Economists had forecast a £23.8bn surplus. Total tax receipts in January were £133.3bn (13.8% higher year-on-year). Capital gains tax revenue reached nearly £17bn (up 69% year-on-year). Employers’ National Insurance contributions rose by £2.9bn. Income tax receipts increased by £3.6bn. Income tax threshold freezes contributed to higher income tax receipts.

The programme will develop: Low-cost missiles Autonomous drones The first project will focus on a lightweight, affordable surface-to-air missile. Initial delivery is expected by next year. The agreement was announced at a defence ministers’ meeting in Krakow, Poland. The initiative follows failed UK negotiations to join the EU’s €150bn defence fund. The UK rejected a proposed multibillion-euro entry fee to join the EU scheme. Each country has pledged multimillion-pound/euro f

Talks have taken place between HMRC and financial services firms regarding draft ISA legislation. Discussions indicate potential changes to proposed interest charges and the definition of “cash-like” assets. Industry representatives report increased optimism following negotiations with HMRC. Final decisions are pending further technical consultation and legislative revisions. The Chancellor’s Budget introduced a £12,000 annual cap on cash ISA contributions for savers under 65

The FTSE 100  rose 1.1% to 10,670 during morning trading on 18 February 2026. The index surpassed 10,650 for the first time in its history. UK consumer price inflation measured 3.0% annually in January 2026. December 2025 inflation was 3.4%. The Office for National Statistics attributed lower inflation to reduced bread and petrol prices. The Bank of England is expected by many economists to cut interest rates in March 2026. Economists anticipate rates could fall to 3.5% in Ma

Enfield recorded the highest benefits spending per working-age person in 2024/25 (£3,868). Enfield was the smallest borough where total benefits spending exceeded £1 billion. Other high-ranking areas by per-head spending: Blackpool (£3,678) Hackney (£3,669) Blaenau Gwent (£3,462) Haringey (£3,419) Birmingham had the highest total benefits bill but ranked 14th per head. The analysis was conducted by Neil O'Brien. The study examined: Universal Credit Disability Living Allowance

Ofgem is expected to lower the energy price cap in April. Cornwall Insight forecasts a 7% reduction in the price cap from 1 April. The projected reduction is £117 per year for a typical dual fuel household. Annual bills are forecast to fall to £1,641 from April 1. An earlier forecast predicted an 8% (£138) reduction. Ofgem will confirm the official cap level by February 25 for the April–June quarter. The reduction is linked to the Government’s decision to abolish the Energy C

US Department of State stated it supports the UK’s agreement with Mauritius regarding the Chagos archipelago. Donald Trump said on Truth Social that Keir Starmer is making an “extraordinary mistake” by entering a 99-year lease. The agreement involves a 99-year lease of the military base on Diego Garcia. Donald Trump stated leases are not appropriate for countries. He questioned claims of entities asserting rights over Diego Garcia. He said the US may need to use Diego Garcia

Es sex Police are reviewing claims that Jeffrey Epstein’s victims were flown into the UK via Stansted Airport on his private jet, the “Lolita Express.” Around 90 flights reportedly landed at Stansted, with 15 occurring after Epstein’s 2008 conviction for child sex offences. Police are examining flight logs and emails to identify passengers and verify links to alleged victims. Prince Andrew, a former friend of Epstein, could face pressure if his name appears in flight records.

Restore Britain was founded by Rupert Lowe, the MP for Great Yarmouth. Lowe recently formally launched the party, proposing policies including: Banning the burqa Mass deportations Lowe described the defections as a “very important day” for the party and said more defections are expected. The defecting councillors will now form an official group on the local authority, which is currently run by Reform UK. Lowe was elected in 2024 but was later expelled from Reform UK following

newly formed Shadow Cabinet, describing it as the party entering a “new phase.” Robert Jenrick  has been appointed Shadow Chancellor after recently defecting from the Conservatives. Suella Braverman  will oversee education and equalities in the shadow team. Deputy leader Richard Tice  has been handed a broad “super ministry” brief covering business, trade and energy. Policy chief Zia Yusuf  has been named Shadow Home Secretary. Farage rejected claims that Reform UK revolves s

UK unemployment rate rose to 5.2%  in the three months to December, up from 5.1%  in November — the highest level in the post-Covid period. Number of UK payrolled employees fell by 121,000 (0.4%)  over the past year. Provisional January data shows a further 11,000  fall in payrolled employees. Payroll employment is 134,000 lower  than a year earlier. Regular pay growth slowed to 4.2%  in the three months to December. Real pay growth (after CPI inflation) was 0.8% . Private se

Ministry of Justice figures indicate at least 520 IPP prisoners  will still be incarcerated in March 2030, never having been released. The projections challenge claims that the government’s IPP “action plan” will enable meaningful progress toward safe release. Former lord chief justice John Thomas  described the plan as a “failure” that prolongs injustice nearly two decades after the sentence was abolished. IPP sentences, abolished in 2012 but not applied retrospectively, hav

Here’s a summary of this week’s major UK political events  that have happened and ones coming up 📌 Summary of This Week’s UK Political Events Government U-Turn on Council Elections The UK government under Keir Starmer  dropped its plan to delay local council elections slated for May 2026  following legal advice  that postponing them could be unlawful and after a legal challenge by Nigel Farage  and Reform UK . The reversal is being framed by opponents as a victory for democr

Donald Trump criticised a clean energy agreement between California and the UK. Trump warned British leaders against partnering with Gavin Newsom. Trump made comments about Newsom in an interview with Politico. Newsom signed a memorandum of understanding in London with Ed Miliband. The memorandum pledges cooperation on clean energy technologies, including offshore wind. The pact is not legally binding. Trump has previously criticised restrictions on drilling for North Sea oil

Nearly 15,000 public sector workers received paid leave for union activities last year. More than 1,000 spent almost all their working time on union causes. Around £90 million of taxpayer money funded facility time last year. Facility time was funded across councils, schools, Whitehall departments and the NHS. There were more than 20,000 union representatives embedded in public bodies. 14,976 (74%) of union representatives received paid leave. Around 3,000 of those were NHS w

London markets were mixed on Monday ask Keirs anouncements bolstered it but US markets were closed for a bank holiday. Canadian markets were closed for Family Day. FTSE 100: Rose 27.34 points. Up 0.3%. Closed at 10,473.69. FTSE 250: Fell 51.80 points. Down 0.2%. Closed at 23,375.47. AIM All-Share: Fell 0.44 points. Down 0.1%. Closed at 811.41. CAC 40 rose 0.2%. DAX 40 fell 0.5%. NatWest: Top FTSE 100 performer. Up 4.8%. Launched £750m share buyback. Programme to complete by J

Keir Starmer has suggested reassessing the UK’s relationship with the EU. Rachel Reeves called stronger EU ties the UK’s “biggest prize.” The Prosperity Institute estimates: 0.5% GDP reduction in the first year of rejoining. 1.35% GDP reduction within five years. Equivalent to £30–£40 billion annual lost output.

He said forming alliances would be a “big if.” He suggested parties might need to act out of “patriotic duty.” The comments followed the launch of Restore Britain by Rupert Lowe. Camilla Tominey questioned Yusuf on GB News. Reform UK claims to have led more than 200 consecutive opinion polls. Yusuf said Reform’s average poll lead is nine to 10 points. He said the party’s focus is on winning an outright majority. Yusuf criticised the Conservative Party’s record in government.

The CMA said the companies committed to: Not giving preferential treatment to their own apps. Being transparent about how third-party apps are approved. Not using data gathered from third-party developers in an unfair way. Seven months earlier, the CMA said Apple and Google had an “effective duopoly” in the UK app store market. In October 2025, the CMA designated both companies’ app stores as having “strategic market status,” giving it powers to require changes to promote com

Rupert Lowe, former Reform UK MP, has launched a new political party called Restore Britain . Lowe currently represents Great Yarmouth  in Norfolk as an independent  MP, after leaving Reform UK. Lowe initially set up Restore Britain as a political movement  after being suspended from Reform UK in March 2024. The party is now expected to act as an umbrella political party  with locally based political parties as partners. Lowe was suspended from Reform UK following allegations