Welcome boost for chancellor with unexpected rise put down to rapid growth of AI in services sector outweighing Iran war fallout
The UK economy grew in July as the rapid expansion of AI appeared to outweigh the economic damage from the Iran war, in a welcome boost for John Healey.
Figures from the Office for National Statistics (ONS) showed a surprise 0.4% increase in gross domestic product (GDP), compared with 0.3% growth in June. City economists had forecast zero growth.
Soaring prices are plunging struggling families into debt. The government must support them in the short term as it invests in a clean energy future
Fuelled by the consequences of Donald Trump’s disastrous war on Iran, household energy debt in Britain is continuing to soar, rising to a record £6bn by the end of June. That figure is set to hit £7bn by the end of the year, as the government’s cap on gas and electricity prices goes up to a three-year high in October. The human cost among the less well off will be more people regularly choosing whether to skip meals, ignore other bills or stay cold this winter.
Such is life at the sharp end of the cost of living crisis, which Andy Burnham has made it his priority to address since arriving in Downing Street. The day after he became prime minister, Mr Burnham announced that VAT would be removed from electricity bills from the beginning of October. But the Middle East-related rise in the price cap, announced on Wednesday, more than wipes out the effect of his cut. In an era of geopolitical volatility, high energy costs have become the new normal.
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Lobby appeals to prospective PM’s reindustrialisation agenda as it pushes for Rosebank and Jackdaw approval
The UK’s North Sea oil industry has made a last-ditch attempt to curry favour with the Labour government by appealing to Andy Burnham’s reindustrialisation agenda just days before he is expected to become Britain’s next prime minister.
Industry lobbyists have written to more than 400 Labour MPs to call on the government’s new leaders to allow more oil and gas drilling in UK waters to support homegrown energy and show “a commitment to UK manufacturing, industrial capability and the skilled workforce that has powered the nation for generations”.
Energy secretary hails £100bn milestone in this parliament and says it is ‘only the start of what we want to achieve’
Ed Miliband has hailed a boost to UK jobs and growth as government data reveals that private sector companies have pledged more than £100bn in investment into the green economy so far in this parliament.
Offshore wind, solar power and the electricity grid make up the bulk of the planned investment, most of it between 2024 and 2031, which will go to all regions of the UK and comes from a mixture of UK companies and overseas sources including the EU and Japan.
Abandoning net zero and drilling for more oil and gas in the North Sea would be a massive setback for the UK and would not help the economy, leading experts have said in response to claims by the former prime minister Tony Blair.
“This is a bizarre intervention to make during the worst May heatwave on record and when the Iran crisis is providing yet more evidence of the enormous costs of oil and gas,” said Ed Matthew, the UK programme director at the E3G thinktank. “Clean energy is cheaper energy – it protects our bills from prices skyrocketing, its running costs are virtually zero, and it doesn’t cause climate change which threatens economic collapse ... The government should ignore Blair’s ideological nonsense and focus on what works.”
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