Financial markets reacted sharply this week after Rachel Reeves appeared tearful during Prime Minister’s Questions, after the Government’s sudden U-turn on welfare reforms. Sterling fell by 1% against the dollar, while UK borrowing costs surged in one of the largest single-day moves since the market turmoil following Liz Truss’s 2022 mini-budget. The welfare reversal has left an almost £5 billion gap in Reeves’s fiscal plans, prompting investor concerns about how the Government will balance the books. While Downing Street insisted Reeves retains Starmer’s full support, analysts say the episode highlights market anxiety over potential leadership instability and future fiscal policy. Speculation mounted about possible tax rises in the autumn, though ministers reiterated pledges not to increase income tax, VAT, or National Insurance. Despite the turbulence, experts noted that markets are not as fragile as during the 2022 crisis.

MPs have voted overwhelmingly to proscribe Palestine Action as a terrorist organisation under the Terrorism Act 2000, with 385 in favour and 26 against. Home secretary Yvette Cooper defended the move, stating that violence and serious criminal damage have no place in legitimate protest. Critics, however, warn that the decision could chill free expression, likening it to punishing suffragette-style activism. The move follows incidents such as activists vandalising planes at RAF Brize Norton and blockading defence firm Elbit Systems, aiming to disrupt UK arms links to Israel. Protesters outside Parliament condemned the Government for hypocrisy and accused it of suppressing effective dissent. Palestine Action insists its tactics, though disruptive, are non-violent and necessary to oppose alleged human rights abuses in Gaza. However, once the ban is approved by the House of Lords, membership or support of the group could carry prison sentences of up to fourteen years. The decision has sparked fierce debate over balancing security and civil liberties.

Keir Starmer has unveiled an ambitious ten-year plan to transform the NHS by shifting healthcare from hospitals to local communities. Central to the proposal are 200 new 'neighbourhood health centres', offering scans, outpatient services, mental health support, and more - all aimed at reducing hospital demand. Starmer declared the NHS must 'reform or die’, pledging accessible, community-based care under one roof. Health secretary Wes Streeting promised thousands more GPs, reversing current trends favouring hospital consultants, and aims to slash waiting lists while prioritising British doctors for NHS jobs. The plan also includes an enhanced NHS app, AI safety alerts, and a focus on helping patients return to work. However, experts express caution, noting that past governments have announced similar visions without delivering meaningful change. Questions remain over funding, but Starmer insists the plan will 'fundamentally rewire' healthcare and prioritise patient-centred care, especially in deprived areas.

Labour’s welfare reform bill was plunged into turmoil after the government dropped plans to tighten eligibility for PIP, one of its core cost-saving measures. Facing fierce backlash and the threat of a major rebellion, Disability minister Sir Stephen Timms announced that changes to PIP would be delayed pending a full review, co-produced with disabled people. The last-minute concession has caused confusion among MPs, leaving uncertainty over the bill’s financial viability. Despite earlier compromises, numerous Labour MPs remain opposed, warning the reforms could deepen poverty and harm disabled people. Emotional speeches in Parliament underscored divisions, with some MPs moved to tears as they denounced the bill as unjust. Critics argue the concessions feel rushed and insufficient, while government ministers insist reforms are vital to sustain the welfare system. Poverty impact assessments indicate that even with changes, around 150,000 more people could be pushed into poverty by 2030. The fate of the bill remains uncertain as further votes loom and disquiet grows within Labour ranks.