The UK Home Office has begun revoking post-Brexit residency rights for some EU citizens, telling at least 100 people they were granted pre-settled status 'in error'. This retrospective review, affecting those upgrading to settled status, has raised concerns about compliance with the EU-UK withdrawal agreement. The Independent Monitoring Authority has flagged potential incompatibility, and campaign group the3million warns of hundreds or thousands of affected individuals facing removal.

The UK public inquiry into undercover policing heard that the Special Demonstration Squad (SDS) was closed after senior officer Jon Boutcher concluded it conducted unjustified surveillance on political activists, including pro-Palestinian supporters and leftwing groups, while neglecting terrorist threats. Boutcher criticized the unit for abusive behavior, including forming intimate relationships with women under surveillance, and for exaggerated claims of success. The SDS was disbanded after 40 years of operations.

The Clacton parliamentary by-election, triggered by the resignation of Reform UK leader Nigel Farage, will feature a record 34 candidates, including 20 independents, on a 90cm-long ballot paper—the longest in British electoral history. The by-election is scheduled for 13 August, and Tendring District Council is managing logistical challenges, including higher printing costs and the need for double tables at polling stations. The previous record was 26 candidates in the 2008 Haltemprice and Howden by-election.

The London Stock Exchange is streamlining rules for its junior market Aim to cut costs and ease capital-raising, aiming to reverse a steep decline from nearly 1,700 listed companies in 2007 to just 605 now. The FTSE all-Aim index has been flat over the past decade, while the main FTSE All-share gained 60%. The move responds to broader challenges facing junior exchanges globally, including competition from venture capital (UK VC funds raised $92bn in the last decade) and risks of relaxed rules being exploited, as seen with Sino-Forest's fraud and Hong Kong's GEM market slump. The overhaul seeks to make Aim more attractive to small companies seeking public capital.

Foreign acquirers are increasingly using 'bear hug' takeover bids—unsolicited public offers at a premium of at least 20%—to pressure UK-listed companies into deals. In Q2 2026, UK firms received £44bn in such bids, the highest since 2018, and acquisitions of UK-listed groups rose 188% year-to-date to $116bn. Notable deals include Prologis's pursuit of Segro, EQT's bid for Intertek, and Zurich's offer for Beazley. The tactic reflects buyer confidence and shareholder openness amid a de-equitising market.

Background: Andy Burnham, who recently became UK Prime Minister, has been pursuing a radical devolution agenda, including moving part of the prime minister's office to Manchester and giving regional leaders more financial control. Today, Burnham has publicly called for a written constitution for the UK, arguing that his devolution plans strengthen the case for a codified constitutional settlement. He contends that the current unwritten arrangements hoard power in Westminster and perpetuate inequality. Inspired by Germany's basic law, the proposal would be a historic shift for the UK, potentially constraining executive power and better defining the competencies of different government levels. Experts warn it would be a major constitutional change, but Burnham insists it is necessary to ensure equivalent living standards across the country. In a weekend statement, Burnham reiterated his call for a written constitution, emphasizing that the current unwritten arrangements concentrate power in Westminster and contribute to inequality. He cited Germany's basic law as inspiration, which mandates equivalent living standards across states, and stated that the UK needs a codified model of devolution that works for all its nations and regions. He affirmed that his pledge of 'good growth in every postcode' is more than a soundbite. Experts noted that such a move would be a 'huge departure' for the UK, which is one of the few major democracies without a written constitution. Under devolution plans announced last week, regional mayors will keep a share of income tax by early 2028, with wealthier regions redistributing funds to less prosperous areas.

A major heathland fire at RSPB Minsmere and Dunwich Heath in Suffolk, UK, started on Wednesday afternoon and was declared stable after four days, with crews continuing to tackle hotspots. The blaze destroyed 371 acres (150 hectares) of heathland, impacting habitats of rare species such as avocets, bearded tits, and bitterns. The fire came within 5 km of the Sizewell B nuclear power plant, which remained unaffected. No injuries were reported, and up to 150 residents and holidaymakers were evacuated, including children from an international music school. The National Trust has launched a fundraiser for habitat recovery, noting that some areas may take up to 25 years to recover. Local politicians from the Green Party have linked the wildfire to climate change and called for the reinstatement of Suffolk County Council's climate emergency declaration, which was rescinded earlier this month by the Reform UK-led council, reigniting debate over the council's climate stance.

Background: A 19-year-old Norwegian, Johannes Natland, was arrested in a Huddersfield hotel with two guns and ammunition, accused of conspiracy to murder on behalf of the Foxtrot network, a Swedish organized crime group linked to the Iranian regime. Today: A jury at the Old Bailey in London convicted Natland of conspiracy to murder on Wednesday, following a retrial after the previous jury failed to reach a verdict. The conviction relates to a planned killing in West Yorkshire. The case illustrates the Foxtrot Network's 'violence-as-a-service' (VaaS) model, which has been responsible for about 35 murders since 2022, including attacks on Israeli targets. The network recruits teenagers across Europe via social media and encrypted messaging, with instructions given in a 'gamified' way. Europol's OTF GRIMM task force, involving 11 countries, has made over 280 arrests, but the network's leader Rawa Majid remains in Iran. The UK government sanctioned the Foxtrot Network and Majid in April 2025. Other groups, including the rival Dalen Network, have adopted the VaaS method.

Background: Labour's NEC approved Andy Burnham's candidacy for the Makerfield byelection, enabling his return to parliament and a potential leadership challenge to PM Keir Starmer. Today: Since becoming Prime Minister, Andy Burnham has overseen a 'Burnham bounce' in Labour's poll ratings, now averaging in the mid-20s, the party's highest since early last year, though still historically low for a new mid-term PM. Labour's convincing victory in the Greater Manchester Mayoral by-election, with 47% of first-preference votes, nearly doubling its May local election share and exceeding its 2024 general election tally, has boosted morale. The bounce is partly due to Reform UK's internal difficulties, including funding controversies and Nigel Farage's by-election gamble, which saw Reform's poll rating drop from 27% to 24%, its lowest in 15 months. Labour has clawed back voters from the Greens and Liberal Democrats, with 67% of 2024 Labour voters now backing the party, up from 57% at Starmer's resignation. However, Burnham faces the challenge of winning back working-class pro-Brexit voters who now support Reform, and he has ruled out an early election. The Conservatives have edged up to 20% in the polls.

Andy Burnham has seized control of the political agenda in the initial fortnight of his new role, setting the tone for policy discussions and media coverage, indicating a strong start to his leadership.

Background: Thames Water's lenders had proposed a rescue plan with a golden share to avoid nationalisation. Today, Labour MPs and regional mayors, supported by the Good Growth Foundation, have proposed a 'third way' of transforming failing water companies like Thames Water into not-for-profit cooperatives. The plan aims to achieve public control without adding debt to the government's balance sheet, using a 'bail-in' mechanism for shareholders and creditors. It would be tested first with Thames Water, which faces financial collapse, and includes tougher regulation for the sector. The proposal, detailed in a new report, also includes enhanced monitoring, restrictions on executive pay, and a ban on dividends unless performance targets are met. Companies that fail would be forced into special administration and then into a cooperative model. The plan has backing from several regional mayors and the Co-operative party.

UK Foreign Secretary Ed Miliband is preparing a distinct foreign policy agenda focused on deepening relations with the EU, reviving the G20, and addressing the climate crisis. He will work closely with Europe Minister Hamish Falconer and retains Gordon Brown as special envoy on global finance. The agenda includes promoting a global wealth tax and tackling illicit financial flows, while navigating the volatile US alliance and pressure over Gaza policy.

The UK Ministry of Defence has formally launched a £2 billion competition to replace the Armed Forces' Land Rover and Pinzgauer fleets with a new Light Mobility Vehicle. The tender, published on 31 July, excludes Chinese suppliers under Section 19(3)b of the Procurement Act 2023, citing trade and market access provisions as China is not a party to the WTO Government Procurement Agreement. The programme seeks a single Common Base Platform with nine variants, with options to expand the fleet beyond 9,500 vehicles. The contract is expected to run from May 2027 to May 2036, with potential extensions to 2047. Bids close on 1 September 2026, with an award decision expected by 31 May 2027.

The director of the London School of Economics has stated that the UK Labour government's policies have damaged universities to a similar extent as the Trump administration's actions in the US, highlighting concerns over funding, regulation, and international student policies.

Background: The UK Ministry of Defence formally cancelled the Type 83 destroyer programme, replacing it with a hybrid fleet of six crewed Common Combat Vessels and uncrewed platforms (Types 91-94), with a possible life extension for Type 45 destroyers. New development: In a written parliamentary answer to Conservative MP Ben Obese-Jecty, Defence Minister Luke Pollard confirmed that the Common Combat Vessel remains in the initial stages of design, with the aspiration to sequence its arrival with the out-of-service dates of the Type 45 destroyers in the mid-2030s onwards. The answer attributes the replacement of the Type 45s to the wider Hybrid Navy Integrated Air and Missile Defence capability, with the CCV sequenced alongside it, rather than to the vessel alone. This contrasts with the June announcement that said delivery was expected from the early 2030s. The minister's reply also draws a distinction between delivery from a shipyard and entry into operational service, noting a period of trials and capability assurance. The programme remains part of the Defence Investment Plan, with at least six vessels planned to act as control hubs for uncrewed systems, working alongside Type 26 and Type 31 frigates and Type 91-94 uncrewed platforms. This clarifies the timeline and scope of the programme, distinguishing between shipyard delivery and operational service entry.

A rise in UK stock prices has led to a significant increase in trading activity on investment platforms, reflecting renewed investor confidence and market momentum in the British equity market. The surge in stock prices has further driven trading volumes, underscoring sustained investor optimism and positive market dynamics.