The UK economy grew 0.4% in Q2 2026, slowing from 0.6% in Q1, as the Iran war's energy shock began to bite. Services grew 0.5% and construction 0.3%, while production was flat. June saw 0.3% growth, beating expectations, driven by warm weather and World Cup spending. GDP grew 1.2% year-on-year. Economists warn of a weaker second half due to rising energy costs and inflation, with a 13% energy price cap increase in July adding to pressure. Chancellor John Healey faces pressure to support households and businesses ahead of his first budget on 28 October, and the Treasury warned growth could be as low as 0.3% in 2027 if Strait of Hormuz disruptions continue.

Jodian Taylor, mother of 15-year-old Daejaun Campbell who was stabbed to death in Woolwich, London, in September 2024, has criticized the early release eligibility of her son's killer, Marko Balaz, under the new Sentencing Act 2026. Balaz, convicted of manslaughter and sentenced to 11 years, could be released after serving a third of his sentence due to the new law, which aims to ease prison overcrowding. Taylor expressed anger and distrust in the justice system, noting that Balaz was on electronic monitoring at the time of the murder. The case highlights tensions between sentencing reforms and victims' families' expectations of justice.

Background: Europe has been experiencing severe summer heat waves causing crop failures, food price warnings, and olive oil supply concerns. Today: A severe drought is now devastating crops across the continent, from potatoes in the Netherlands to corn in Bosnia and grapes in Italy, despite farmers' adaptation efforts. The Dutch bank Triodos estimates the heatwaves and drought could reduce EU GDP by 1% in 2026 (€180 billion). Farmers face reduced yields, water restrictions, and economic losses, while record-low Danube River levels disrupt grain transport. The drought is also affecting beer production in the Czech Republic and dairy farming in Hungary, with reservoirs in England nearly dry. The drought has now spread to the Netherlands, Bosnia, Czech Republic, Romania, Hungary, and eastern England, with specific crop failures: potatoes in the Netherlands (harvest down one-third), corn in Bosnia (yield down from 6-7 to 1.5-2 tonnes per hectare), hops in the Czech Republic (losses for Plzensky Prazdroj), and sunflowers in Romania (record-low Danube levels disrupting transport). Water restrictions are in place in parts of the Netherlands, and farmers report existential concerns if dry years recur. In Hungary, dairy farmers are buying expensive feed due to dried pastures. In England, reservoirs are nearly dry, but some farms with irrigation infrastructure are coping. The drought is also affecting soil salinity, with even salt-tolerant crops like samphire struggling.

Background: The UK economy grew 0.6% in Q1 2026, defying Iran war impact, but economists warned of a slowdown in Q2. Today: New data shows the UK economy remained resilient in Q2 2026, with growth exceeding expectations despite ongoing uncertainties related to the Iran war. This stronger-than-expected performance may influence the Bank of England's monetary policy decisions, as it could reduce the urgency for rate cuts.

Ofwat, the water industry regulator for England and Wales, has approved £3.4bn in additional spending by 13 water companies on top of the £104bn investment plan for 2025-2030. The extra funds will support new housing, datacentres, and water quality improvements, including £1.2bn for safeguarding water services and £477m for housebuilding and datacentre development. Five companies—Southern Water, Thames Water, Severn Trent, Wessex Water, and South East Water—will raise bills before 2030, adding pressure on households. The move aligns with the UK government's housing and AI growth ambitions but raises affordability concerns, with Southern Water customers facing an extra £80 on their bills.

An investigation by Declassified has revealed that British public money may have been channeled through UK Toremet, a registered British charity, to the Yahalom Foundation, which supports Israeli military personnel, including those involved in the Gaza war. Donations were processed to qualify for gift aid, adding 25% from the UK government, and were used for mental health care and other assistance for soldiers. The Charity Commission is investigating eight UK charities over activities in Israeli settlements, and the findings raise concerns about the legality of such funding.

Adina Mihai and Madalin Dumitru were sentenced to 17 years in prison at Oxford Crown Court for manslaughter and administering poison. They drugged men with GBL, a powerful sedative, to steal from them, resulting in the deaths of Gary Mouat and Malcolm King. The pair posed as a sex worker and her partner to lure victims, and their actions were described as reckless and greedy by the judge.

Background: Anti-immigration protests in Thetford, Norfolk, escalated over three nights in August, with attempts to storm homes of suspected asylum seekers, attacks on police, and multiple arrests. Today, Norfolk Police arrested a man in his 60s on suspicion of assisting an offender and inciting racial hatred, linked to the sharing of asylum seeker addresses that fueled the disorder. The man has been released on bail until 14 October. Serco, the accommodation contractor, is investigating how address information became public, and police have made 19 arrests overall. The properties, used by Serco to accommodate migrants, were targeted over three nights in August, injuring two police officers. Serco is working with the Home Office and police on safeguarding measures, and occupants have been removed from the properties for their safety.