With a leadership transition expected on 20 July, Chancellor Rachel Reeves is pivoting her economic strategy while facing criticism over policy and welfare.

The government is introducing a new Vehicle Excise Duty for electric vehicles to address fuel duty revenue losses as drivers transition from petrol and diesel. Motorists will pay based on estimated annual mileage, which will be verified against records from annual MOT tests.

New data reveals an impending 13% energy price cap increase, with experts warning that this hike may leave many UK families facing a net loss in income.

The Competition and Markets Authority has begun enforcement action against hundreds of petrol stations failing to submit mandatory live fuel pricing data. Chancellor Rachel Reeves warned that retailers face potential financial penalties if they persist in ignoring transparency requirements.

UK inflation remained steady at 2.8 percent in May 2026, defying expectations as cooling food costs balanced out the impact of rising transport prices.

UK inflation hit its lowest level in over a year at 2.8% as a reduction in the Ofgem energy price cap eased household costs. Analysts caution that rising producer input prices and global instability may lead to a temporary downward trend.

HGV operators will be eligible for a 12-month payment holiday reducing tax to £1 starting 1 July 2026, alongside broader adjustments to vehicle taxation.

The government has halted controversial plans to reduce the tax-free Cash ISA limit following intense pressure from consumer groups and financial experts.

The government is canceling major road infrastructure schemes, including the A38 Derby Junctions and A46 Newark Bypass, to reallocate funds to defence.