5 important things happening in the UK today
Here are 5 important things happening in the UK today – 21 May 2025.
- Rising inflation: The Office for National Statistics is expected to announce that inflation has risen on the back of increased household bills when it announces the latest figures this morning. The Bank of England has previously said it expects inflation to spike at 3.7% between July and September 2025 before dropping back to its 2% target. [BBC]
- Record drop in migration: Figures due on Thursday are likely to show Keir Starmer presiding over the biggest ever drop in net migration to the UK. For the Prime Minister, however, the hard part will be getting any credit from British voters as immigration remains a hot-button issue. [Bloomberg]
- Tax raid planned: Angela Rayner sent a secret memo to Rachel Reeves pushing for a new tax raid on savers, The Telegraph reports.
In the document, the Deputy Prime Minister proposes eight tax increases, including reinstating the pensions lifetime allowance and changing dividend taxes. [Telegraph]
- Benefits reform: The work and pensions secretary, Liz Kendall, is expected to double down on Labour’s £5 billion disability benefits cuts on Wednesday, claiming she is reforming the welfare state to save it from collapse. [Guardian]
- Oil price concerns: Oil prices climbed overnight after reports that Israel was preparing to strike Iran. It is currently trading at $66.50 a barrel. On Wednesday, the pound was trading at £1.34 to the dollar, £1.19 to the euro and £9.70 to the yuan. [Bloomberg]
