Evening Briefing: Tuesday 21 July 2026
- A Cost-of-Living Government: Andy Burnham chaired his first Cabinet and declared a “cost-of-living government”, confirming VAT scrapped on domestic electricity from 1 October — about £45 off a typical bill — though a sacked minister branded it “unfunded”. Markets steadied: the FTSE reversed higher to close up and official figures showed pay growth cooling.
- Petrol & Energy: Brent crude rebounded above $91 a barrel as a tenth night of US strikes, a stalled truce and a new Houthi blockade of Red Sea shipping overwhelmed diplomacy hopes. Petrol pumps and winter energy bills remain squeezed.
- Savings & Markets: Ten-year gilt yields held near a two-month high around 5 per cent and sterling stayed soft as investors waited to see how Mr Burnham’s giveaways will be funded; the real test comes at the autumn Budget. Gold hit a fresh record high.
Iran Weighs a Ten-Day Truce as Trump Demands Tehran Pay
Tehran has received a mediator proposal for a ten-day ceasefire to salvage last month’s interim deal, Iran’s foreign ministry confirmed on Tuesday, signalling that diplomatic channels remain open. Washington is holding out for a longer pau…
Oil Rebounds Above $91 as the Houthis Blockade the Red Sea
Brent crude rebounded to more than $91 a barrel on Tuesday, reversing an early dip, after Yemen’s Houthis declared a naval blockade of Saudi Arabia and a tanker was abandoned off Oman. The blockade opens a second front in the region’s ship…
ASEAN Demands a Hormuz Truce as Rubio Lands in Manila
Southeast Asian foreign ministers opened their annual meeting in Manila on Tuesday under the shadow of the US–Iran war, preparing a joint statement demanding an immediate halt to hostilities and the restoration of safe passage through the…
Kazakhstan Halts Black Sea Oil Exports After Tanker Drone Strikes
Kazakhstan suspended crude shipments through its main export terminal near Russia’s Novorossiysk on Tuesday after a wave of drone attacks left tanker operators too nervous to sail, threatening roughly 80 per cent of the country’s oil expor…
Russia and Ukraine Trade Heavy Drone Barrages as Talks Stall
Russia and Ukraine exchanged fresh waves of drone attacks overnight into Tuesday, with Moscow claiming more than 200 Ukrainian drones downed and Kyiv reporting dozens of Russian strike drones. Russia said it had again hit cargo vessels at…
Burnham Tells His First Cabinet: We Are a Cost-of-Living Government
Andy Burnham chaired the first meeting of his new Cabinet on Tuesday, declaring his administration a “cost-of-living government” and ordering every department to find ways to ease the squeeze on households. Convening ministers a day after…
Sacked Starmer Ally Brands Burnham’s Energy Cut “Unfunded”
Mr Burnham’s first major policy was overshadowed within hours when Darren Jones, dismissed from the Cabinet a day earlier, branded the VAT cut on electricity “unfunded”. Mr Jones, who ran the very digital ID scheme whose cancellation is me…
Recess Shields Burnham From the Commons Until September
The new Prime Minister will face no Commons scrutiny for six weeks, with Parliament in its summer recess until 1 September and his first Prime Minister’s Questions not due until then. The Conservatives, who tried and failed to delay the re…
Trump Signals a Manchester Visit After a “Very Good” First Call
Downing Street and the White House confirmed details of Mr Burnham’s first call as Prime Minister with Donald Trump, who called it a “very good conversation” and signalled the pair would meet before long. The two discussed North Sea oil, t…
Burnham Sets Up “No 10 North” and Merges Whitehall Departments
Mr Burnham’s first full day brought structural change to Whitehall as well as policy. Downing Street confirmed a new Manchester base for the Prime Minister’s office — dubbed “No 10 North” — while the Department for Science, Innovation and…