Displaying items by tag: global economy

Families are being warned to prepare for a significant rise in energy bills this summer, with costs potentially increasing by as much as £440 due to global instability linked to the Iran conflict. Analysts suggest the average household bill could reach £2,100, adding further strain to an ongoing cost of living crisis. Even with more optimistic forecasts, prices are expected to rise. Leading global institutions, including the World Bank and IMF, have warned that the conflict could trigger a wider economic downturn, with disruptions to energy supplies, rising inflation, and slower growth. Food prices may also increase, further impacting households. The Government has indicated that financial support is unlikely before autumn and may be limited to the most vulnerable. As uncertainty grows, concerns are mounting over economic resilience, public finances, and the burden on ordinary families. The situation highlights the far-reaching consequences of global conflict on everyday life and the need for stability, provision, and wise stewardship in challenging times. See

Keir Starmer has cautioned that even if the UK secures a US trade deal or lower tariffs, it will not be enough to safeguard Britain’s economic future. In response to Donald Trump’s imposition of a 10% import tax on British goods, Starmer urged the UK to adapt to a changing global landscape by strengthening cooperation with Europe and diversifying trade partnerships. Trump later announced a 90-day pause on tariffs for most countries, though uncertainty remains. Global markets reacted with volatility, and the Bank of England warned of rising global financial risks. Despite the turmoil, Starmer reaffirmed the government's fiscal discipline. Rachel Reeves is also working to establish trade agreements, including a recent £400 million deal with India, and has planned high-level meetings in Washington and Brussels. The Government aims to boost UK growth by fostering new trade alliances while safeguarding vital interests like the NHS and digital taxation.

China has announced an 84% tariff on all US imports, up from 34%, in retaliation to Donald Trump’s increased tariffs on Chinese imports (now 104%). This move escalates tensions in the ongoing trade war and sent global stock markets into further decline. Global oil prices also fell, adding to fears of a recession. However, US markets later showed some recovery after treasury secretary Scott Bessent hinted at potential trade agreements with allies. Trump is encouraging businesses to move to the USA, claiming zero tariffs and favourable conditions for companies. While China has expressed reluctance to engage in a full-scale trade war, it said it needed to protect its economy. Despite concerns over higher inflation, Trump remains optimistic about revitalising US manufacturing. He has now announced a pause in imposing the harsher tariffs, which has encouraged the stock markets. For a view about what this pause will mean, see