Economic growth has reached its fastest pace in a year, buoyed by strong services performance and offering a brief boost for Labour, yet economists caution that forthcoming tariffs on international trade could temper any further expansion.

Post-Brexit negotiations have stalled over fishing rights and youth mobility, prompting EU demands for fresh concessions and rising Tory alarm about further rule-taking.

Beijing has voiced alarm over a proposed UK–US trade deal, warning that certain provisions could harm economic ties and urging London to reconsider its approach, as officials fear the agreement may overshadow any renewed cooperation with China.

China and the US have agreed a truce in their trade tensions, finalising a deal to reduce punitive tariffs for a set period and sparking renewed market optimism.