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Today, the Government gave us the first real details of its plans for devolution. The headline measure is letting mayors keep a slice of Income Tax raised in their areas, in an effort to sharpen their incentives to grow. www.gov.uk/government/n...

PM hands mayors share of income tax to make lives better in every postcodeThe Prime Minister will today launch the biggest transfer of power from Westminster in a generation, giving communities greater control over the decisions that shape jobs, transport, housing and publi...www.gov.uk

The UK's run of feel-good economic data came to an abrupt end this morning. The flash composite PMI index for May suggests private-sector activity shrank on the month. Worryingly, this happened despite pre-emptive buying propping up manufacturing. Services shrank at the fastest rate since 2021.

The UK economy grew by 0.6% in Q1 2026, according to data released by the ONS today. This continues a trend of strong Q1 data post-pandemic, which has previously petered out in later quarters. Given high energy prices and interest rates, don’t be surprised if that happens again in 2026. 🧵

I've been writing about interest rates (again) for the RF Substack.

Interesting from today's FPC record: the recent rise in mortgage rates reflects lenders facing higher funding costs rather than wider spreads. So far at least, it's not a classic credit crunch for mortgagors - just an unwelcome repricing for those looking to take out a loan (inc. yours truly!)

🏠 New report out today from me, @jamessmithrf.bsky.social and Hannah Aldridge 🏠 We dig into whether financial regulation is holding back young people’s dreams of owning a home — and what policymakers should actually do to help 🧵⤵️ buff.ly/0OaFqsX

Credit where credit's due? • Resolution FoundationAlmost half of Britain’s 8.3 million potential first-time buyers earn enough for a mortgage on a starter home, but just 11 per cent have enough saved for a deposit. A targeted equity-loan scheme is th...buff.ly

The MPC's 5-4 split today continued a rising tide of dissenting votes from internal BoE members. Last year, one-in-five votes cast by internals went against the majority decision - the highest rate of internal dissent since 2005. This is good! A sign of active debate among the committee.

Look, I know there's a lot going on in the news right now. But the MPC decision today was actually quite interesting! They were only one vote away from delivering a cut that wasn't on the cards at all, and they now think inflation will not just drop sharply this year but stay low. Thread below ⤵️

The MPC delivers a bit of a dovish surprise, holding Bank Rate at 3.75% only by a narrow 5-4 margin. Markets were expecting a clear-cut 7-2 vote. There will be lots of unpack on the Bank’s latest outlook for the economy and the future path of interest rates.