5 important things happening in the UK today

Here are 5 important things happening in the UK today – 2 July 2025.

Starmer climbs down dramatically to pass welfare reform bill: Keir Starmer finally placated rebelling Labour MPs with a last-minute promise to scrap cuts to Personal Independence Payments (PIP) in order to progress his proposed welfare reform bill. The dramatic rebellion and subsequent climbdown have exposed fractures between the government and Labour backbenchers. [Financial Times]
Repercussions of welfare concessions: Labour Minister Pat McFadden told the BBC this morning that the government’s concessions on cuts to disability benefits would not result in increases to income tax, VAT, or national insurance. However, he said the decision would have a ‘financial consequence’. [BBC]
Recent Heathrow shutdown caused by issue detected years ago: An investigation into the substation fire which caused Heathrow to be shut down in March this year found that it was caused by a preventable technical fault that was detected seven years ago but which had never been addressed. [Guardian]
Banknotes to get first big redesign in 50 years: The Bank of England has proposed a redesign of banknotes based on a new theme, which would mark the first major redesign of British banknotes in five decades. The theme for the next series of £5, £10, £20 and £50 notes is undecided, and the Bank of England has welcomed public input on the decision. [Telegraph]
On Wednesday, Oil was trading at $67.21. The pound was trading at £1.37 to the dollar, £1.16 to the euro and £9.83 to the yuan.