5 important things happening in the UK today

Here are 5 important things happening in the UK today, Tuesday (5 January 2026):

• Claire’s and The Original Factory Shop to enter administration: High street retailers Claire’s and The Original Factory Shop are being put into administration, risking 2,500 jobs. It comes amid a turbulent time for Claire’s, popular with tweens for its brightly coloured accessories, which was seeking a buyer after its US owner filed for bankruptcy last year. [BBC]

• Starmer preparing EU ‘reset’ bill: Keir Starmer is set to face fresh battles over his EU “reset” with his plans to lay a bill that could lead to closer regulatory ties with Brussels. The legislation aims to introduce an alignment mechanism for the agrifoods and electricity trading deals agreed with EU leaders but still under negotiation. The bill will hand ministers powers to go beyond what the UK has agreed so far, giving future administrations the power to potentially align standards in other sectors and keep pace with new EU regulations. [Guardian]
• Drivers over 70 set to face ban for failing compulsory eye tests: Drivers over 70 face being banned from the road if they fail mandatory eyesight tests, under Government plans being drawn up to improve road safety. on Apple News. Ministers will now consult on introducing compulsory eye tests for motorists in England and Wales over the age of 70, when people are required to renew their licence every three years. Officials will also look at possible options for introducing cognitive tests for older drivers, although insiders were eager to stress that such plans were still at an early stage and are not due to be consulted on. [The i Paper]
• UK employers brace for more layoffs: Employers are preparing to lay off more staff as higher payroll costs from taxes and red tape are hitting headcount expectations, an industry survey has found. The Institute of Directors’ monthly business confidence survey showed that headcount expectations dropped in December after Rachel Reeves’ Budget unveiled a salary sacrifice cap and higher taxes on airports and pubs. The net reading dropped from -17 in November to -21, setting the scene for another year of rising unemployment and falling vacancy numbers. [CityAM]
• On Tuesday, Oil was trading higher at $60.89. The pound is trading at $1.36, €1.16, and ¥9.47.

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