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Rachel Reeves’s fiscal rules buffer should be ‘significantly larger’, say peers

impact of the Iran war. But the Lords economic affairs committee says Reeves should aim to raise it more, and complains that she and her recent predecessors have tended to allow themselves too little room

What's happening to the UK economy and how does it affect you?

Iran war, which is having a huge impact on the global economy. When the Labour government took power in July 2024, it said growth was its top priority. Across 2025 as a whole, UK

UK long-term borrowing costs reach 28-year high

war in Iran. The 30-year UK bond yield peaked at around 5.78%, while the 10-year yield peaked at around 5.1%. Rising yields on government bonds mean the government will face higher debt interest

US spending on ‘reckless’ Iran war could have saved 87m lives, says UN

UK claims to be thought leaders on the subject, he said, before later adding the judgment might seem harsh. Fletcher, the undersecretary-general for humanitarian affairs and emergency relief coordinator and head of the Office

Reeves arrives at IMF with little leeway to prove its UK downgrade wrong

Iran war is bad news for the global economy. But for some countries, the unfolding conflict is having a bigger impact than for others. The [International Monetary Fund’s verdict](https://www.theguardian.com/business/2026/apr/14/iran-war-global-recession-imf-uk-growth-forecasts-oil-prices) is that

Lower gas and electricity bills behind UK inflation fall to 2.8%

UK's inflation rate, official figures show. The rate of inflation, which measures price rises over time, fell to 2.8% in the year to April, down from 3.3% in the year to March. Energy prices

UK unemployment shows surprise fall to 4.9% as pay growth drops to lowest in five years

impact of the Iran war is expected to hurt the labour market in the coming months. The EY Item Club has forecast that unemployment [will hit 5.8% by the middle of 2027](https://www.theguardian.com/business/2026/apr/20/250000-could-lose-job-2027-uk-recession-analysis-economy-iran-war),

Less bread and WFH Fridays – what Pret boss knows about our habits

impact demand, as the bulk of their estate remains in city centre locations." Rising costs are clearly a concern for businesses and consumers. Pret's latest accounts, for 2024, show like-for-like sales were

Calls for humanitarian corridor through strait of Hormuz as Iran war hits vital aid

war on [Iran](https://www.theguardian.com/world/iran) is taking a toll on the most vulnerable people, by slowing or blocking food and medical aid from reaching them. Now aid organisations are calling for a “humanitarian corridor

Sainsbury’s says impact of Iran war may lead to drop in profits this year

budgets and pushes up business costs. The supermarket group said the conflict “will impact both our customers and our business” and it was unclear how large the effect would be. The company reported

Economic shock from Iran war risks driving up global debt levels, says IMF

war in the Middle East has added a new source of fiscal pressure to an already strained global landscape,” it said in the report. “The conflict has material global reach, disrupting energy supplies, tightening financial

Andy Burnham’s change in tack on fiscal rules and bond markets is understandable

Iran war. Primarily, the rise in the yield – in effect the interest rate – on the UK’s long-term borrowing to the highest levels since 1998 reflects the impact of higher inflation on the UK

Bank of England leaves interest rates on hold at 3.75%

impact of the Iran war. The Bank’s rate-setting monetary policy committee (MPC) voted to leave borrowing costs on hold at noon on Thursday, after its latest rate-setting meeting. The vote

'There were letters I didn't want to open': Rise in unpaid debt court cases

impact of the war in Iran pushing up energy prices in the coming months. "When's it ever going to end?" he says. "We can't just keep going and going and going. "If your

Reinstate windfall tax on banks after surge in profits, TUC urges

UK’s big four banks – [Barclays](https://www.theguardian.com/business/2026/apr/28/barclays-lending-uk-mortgage-firm-mfs-bank-profits-motor-finance), [HSBC](https://www.theguardian.com/business/2026/may/05/hsbc-profits-fall-fraud-related-charge-iran-war), [Lloyds](https://www.theguardian.com/business/2026/apr/29/lloyds-iran-war-forecasts-rise-in-uk-unemployment) and [NatWest](https://www.theguardian.com/business/2026/may/01/natwest-faces-140m-hit-from-iran-war-as-uk-growth-slows-and-inflation-rises#:~:text=NatWest%20reported%20a%2012%25%20year,average%20of%20%C2%A31.9bn.) – reported combined profits of £13.8bn for the first quarter. “Getting banks

Rachel Reeves considering rent freeze to limit Iran war fallout

budgets that they are willing to consider exceptional measures. With Labour braced for heavy losses at the local elections, Keir Starmer looking vulnerable as prime minister and economists predicting a surge in inflation, ministers

Katya Adler: Europe's Nato allies push back at reported US threat to Spain

budget - they get railroaded by yet another crisis. There is the ongoing energy crisis provoked by the US-Israel war on Iran, Russia's aggression in neighbouring Ukraine, now in its fourth year. And this

From oil giants to banks - these companies are making billions from Iran war

budgets of firms, families and governments. But while some have been pushed to the brink, others, whose core businesses are more profitable in a war or who benefit from volatile energy prices, have seen record

UK firms in ‘critical financial stress’ jump by a third as costs rise, report finds

impact of the Middle East conflict. Hospitality and leisure firms have been faring particularly badly because of shaky consumer confidence, and rising taxes and staff costs, according to research by the restructuring company Begbies Traynor

'I don't want the children to see how worried we are': UK family finances hit by Iran war

budgets to take on more financial pressure - but things are likely to get tighter, says Mohamed El-Erian, economist and professor at the Wharton School of the University of Pennsylvania. He is concerned the war