United Kingdom

26 August 2026 · United Kingdom

The UK government has confirmed that VAT on household electricity will be removed from 1 October 2026. The rate falls from 5% to 0% for the rest of the 2026-27 financial year. The government estimates the change will save households about £45 a year on average, cost around £850 million in 2026-27 and reduce CPI inflation by about 0.10 percentage points. It says the current-year measure is funded through cancellation of the £1.8 billion Digital ID programme.

13 August 2026 · United Kingdom

ONS reported that the UK's total goods-and-services trade deficit widened by £0.3bn to £8.0bn in Q2 2026. The headline hides a major contrast: a £60.7bn goods deficit was largely offset by a £52.7bn services surplus. This is a strong balance-of-payments example because it teaches students not to confuse the trade balance with the entire current account.

7 August 2026 · United Kingdom

On 7 August 2026 the Competition and Markets Authority provisionally decided that Aldi, Lidl GB and Lidl NI should be covered by supermarket land-agreement rules designed to stop large grocery retailers making it harder for rivals to open nearby. The case turns an abstract idea — barriers to entry — into a concrete competition-policy example.

13 July 2026 · United Kingdom

HMRC confirmed that from 1 January 2028 the Soft Drinks Industry Levy threshold will fall from 5g to 4.5g of added sugar per 100ml, while exemptions for milk-based and milk-substitute drinks will be removed. It is a strong market-failure case because the government expects firms to respond by reformulating products, so the intervention changes incentives before many consumers ever pay a higher price.

13 August 2026 · United Kingdom

ONS’s preferred RTI-based estimate showed UK output per hour 0.7% higher in Q2 2026 than a year earlier and output per worker 1.4% higher. The alternative LFS-based estimate was weaker, making measurement uncertainty a ready-made evaluation point.

21 August 2026 · United Kingdom

UK public sector net borrowing was £1.8bn in July 2026 and net debt stood at £2,984.9bn, or 94.1% of GDP. The example is useful for separating the borrowing flow from the debt stock and evaluating fiscal policy rather than treating all borrowing as automatically harmful.

18 August 2026 · United Kingdom

The UK unemployment rate was 4.9% in April–June 2026, with employment at 75.1% and economic inactivity at 20.9%. The release is useful because it connects labour-market conditions to household income, aggregate demand and inflation.

30 July 2026 · United Kingdom

The Bank of England kept Bank Rate at 3.75% in July 2026. Three MPC members preferred an increase to 4.0%, showing how policymakers were balancing persistent inflation risks against signs of weaker demand.

19 August 2026 · United Kingdom

UK CPI inflation rose to 2.9% in the 12 months to July 2026 from 2.6% in June, while CPIH rose to 3.1%. The release is useful for analysing real incomes, the Bank of England’s policy trade-off and the distinction between headline and underlying inflation.

1 April 2026 · United Kingdom

The UK National Living Wage for workers aged 21 and over rose 4.1% to £12.71 an hour on 1 April 2026. It is a strong microeconomics example because the same policy can raise incomes while also increasing firms’ labour costs.