Background: The UK has been experiencing a prolonged summer heatwave, breaking records for days above 34°C, with hosepipe bans imposed by four water companies in southern and eastern England. Today: The UK Environment Agency declared drought across 51.4% of England, covering seven areas including London, East Anglia, southwest England, and the West Midlands, following record-low July rainfall (7% of expected nationwide, 1% in southern England) and a fourth heatwave. Natural Resources Wales extended its drought declaration to all of Wales, with July rainfall at 8% of average, the driest in 190 years. The Met Office confirmed a new UK June temperature record of 38.0°C, up from the provisional 37.7°C. The National Drought Group met and instructed water firms to prioritize leak repairs. The summer has seen seven days above 35°C, beating the 1976 record of five, and 31 days above 30°C. A cold front is bringing cooler temperatures but little rain to drought-hit areas; Wisley in Surrey has had 42 consecutive dry days. August is forecast to be warmer and drier than average, potentially worsening drought conditions.

The Bank of England is widely expected to hold its benchmark interest rate at 3.75% for a fifth consecutive meeting, with the decision announced at 12:00 BST. The hold is driven by global political and economic uncertainty, particularly from the Iran war, which has pushed up wholesale energy prices. This has led to a 13% rise in domestic energy bills, expected to lift UK inflation in July. Inflation stood at 2.6% in the year to June, down slightly but still above the 2.3% target. Mortgage rates on new two-year fixed deals have risen to 5.62%, the highest in over a month, due to renewed Middle East volatility, while the top one-year savings bond offers 4.91%, the highest for new customers since October 2024. Analysts expect rates to remain unchanged in the foreseeable future, with the next move potentially being a rise.

The UK government has announced an additional £8.4 billion (€9.8 billion) investment in the Dreadnought-class nuclear submarine programme, part of the broader £63.6 billion Defence Nuclear Enterprise plan. The funding will support the completion of sea trials for HMS Dreadnought, enabling it to enter service in the early 2030s, and will also support sea trials for HMS Valiant and the construction of the third and fourth submarines (Warspite and King George VI). BAE Systems will receive £5.9 billion for this work. Prime Minister Andy Burnham made the announcement during a visit to Barrow-in-Furness, highlighting the programme's role in supporting 47,000 jobs and apprenticeships. The investment is part of the £63.6 billion Defence Nuclear Enterprise plan, with the bulk (£47 billion) allocated to submarine construction and infrastructure. Opposition parties criticized the lack of new commitments on overall defence spending targets, while the government emphasized the economic benefits and the role of British industry. This investment underscores the UK's commitment to maintaining its nuclear deterrent into the 2030s and beyond.

Voters in Greater Manchester are electing a new mayor to replace Andy Burnham, who resigned after becoming UK Prime Minister. The contest features Labour's Bev Craig, Reform UK's Sian Astley, and the Green Party's Geraldine Coggins. The election tests Burnham's devolution agenda and the region's political balance, with implications for his premiership. Polls suggest Labour leads, but Reform UK poses a challenge. The result will be declared on Friday.

UK consumers are facing higher prices for barbecue staples, dubbed 'burgerflation', with CPI data showing beef, bread buns, and salad costs up 8-9% year-on-year. However, farmers and producers report receiving less for their goods, with beef prices down 8% and wheat down 0.3% per the Agricultural Price Index. Interviews with a cattle farmer, baker, mill manager, and vegetable grower highlight that increased costs for fuel, fertiliser, and other inputs are absorbing any gains, leaving producers no better off despite higher retail prices.

A UK parliamentary inquiry has found that a Ministry of Defence (MoD) data breach exposing personal details of over 18,500 Afghan applicants to the Afghan Relocations and Assistance Policy (ARAP) was a 'foreseeable systemic failure'. The breach, caused by sharing an Excel spreadsheet, was kept secret by a super-injunction for nearly two years. The report criticizes the MoD's use of secrecy, lack of expertise, and poor data protection culture, and highlights failures in handling applications from Afghan special forces, with many rejections later overturned. The committee calls for enforceable minimum standards and renewed accountability.

London's High Court heard that Prince Harry, Elton John, and other public figures could be required to pay a substantial share of Associated Newspapers' legal expenses after their privacy claims against the Daily Mail publisher failed. Associated's lawyer argued for indemnity costs, citing a £34.5 million legal bill, while claimants offered an interim payment of £8 million. The case involved allegations of phone hacking and unlawful information gathering, which the judge rejected for lack of evidence.

Chinese autonomous mobile robot maker Geek+ is supplying robots to major UK retailers including Tesco, Asda, and Next, with over 2,000 robots deployed across 10 UK warehouse sites via partner MotionTech. The expansion highlights UK productivity challenges and labour shortages, while China's robotics industry benefits from its EV ecosystem. The US recently banned imports of advanced foreign-made robots, citing national security, drawing criticism from China.