Greens captured Gorton in a by‑election, taking the seat from Labour and denting Starmer’s authority. Some Labour MPs urged a shift left, but the leadership signalled no change. The PM vowed to counter “extremes” as parties assess the result’s implications for strategy.
UK gilt sales are expected to decline for the first time since 2023, easing borrowing costs and giving Reeves a modest fiscal boost. Banks see lower issuance and yields, while the Treasury signals continued discipline to avoid any perception of a licence to spend.
Investors are rotating into asset-heavy shares as anxiety over AI’s disruptive impact hits software valuations. Utilities, energy and shipping gained on demand for dependable cashflows, while roughly $1.2tn was wiped from software stocks in a sharp Wall St sell-off.
Lord Mandelson has been arrested on suspicion of misconduct in public office as the Met investigates his dealings linked to Jeffrey Epstein. The inquiry follows newly released US files and claims he leaked confidential information. He denies wrongdoing.
Tehran has quietly agreed a €500m purchase of advanced missile systems from a major Eurasian state to rebuild air defences, with deliveries due by 2026. The kit can target aircraft and drones. Western officials warn it heightens regional risk and are weighing tougher measures.
After a 6-3 Supreme Court ruling voided his “liberation day” levies, Trump vowed a new 10% tariff on all imports and criticised the justices. He said he’ll recast the plan to comply with the law, pitching it as support for US industry and jobs.
Trump set a 10‑day deadline to decide on US military action against Iran, while reinforcing forces in the region. Tehran pressed for a deal to reduce tensions. Oil rose, and the UK voiced caution over allowing its bases to be used.
Christine Lagarde is poised to exit the ECB early, allowing Macron and Merz to agree her successor. The move, expected before the French election, is intended to steady policy direction and counter the risk that rising Eurosceptic sentiment disrupts the choice.
Ministers scrapped a post-Brexit digital border programme after spending £110m, ending contracts with Deloitte and IBM. Officials said it was not delivering value. Business groups warn the reversal could add red tape and delays, while the government promises a simpler replacement plan.
Downing St has scrapped plans to delay about 30 council elections after a Reform UK legal challenge and advice that a postponement risked being unlawful. The votes will go ahead in May, posing political risk for Labour. Nigel Farage called for Steve Reed to resign over the reversal.