Here’s yourUK news roundup for Friday 6 February 2026: Keir Starmer faces backlash over the Peter Mandelson Jeffrey Epstein scandal, the Bank of England holds interest rates at 3.75%, Parliament restoration could hit £40 billion over 61 years, plus migrant returns deals with three African nations and today’s market update.
Mandelson scandal could finish Keir Starmer
Keir Starmer looks “weak, naive and gullible” after apologising for accepting Lord Mandelson’s claim – before he was appointed ambassador to the US – that he “barely knew” the paedophile Jeffrey Epstein, Baroness Harman, a former deputy Labour leader, has said. The Prime Minister said on Thursday that he had “no reason” to believe that Mandelson was telling him “anything but the truth”, despite being presented with evidence that he and Epstein were close friends. Starmer’s explanation was described as “not credible” by one minister, who said that “no one has faith or trust in him”. Some Labour MPs called on Starmer to go, describing his position as “untenable.” [The Times]
Andrew Bailey is hurting taxpayers by refusing to cut rates
Andrew Bailey has been accused of stifling growth and hurting taxpayers by keeping interest rates on hold against a backdrop of slowing growth and rising unemployment. Economists warned that Bank of England officials were adding “unnecessary strain” to the economy as officials held rates at 3.75pc on Thursday in a knife-edge decision that saw the Governor cast the deciding vote. The Institute for Public Policy Research (IPPR), a Left-leaning think tank with links to the Labour Party, said policymakers had “missed an opportunity” to cut rates, accusing them of bowing to “statistical noise” after the recent jump in inflation.” [Telegraph]
Restoring Palace of Westminster could cost £40 billion and take 61 years
Plans to restore the crumbling Palace of Westminster could cost £40 billion and take up to 61 years, a report by the body set up to investigate how the project should be handled has found. Critics labelled the cost as “eye-watering” and said the project lacked accountability. MPs and peers will have to choose between two new plans drawn up by the restoration and renewal client board, instead of the four previously mooted. [Guardian]
Three African countries agree to UK migrant returns after visa penalty threat
Three African countries have agreed to take back foreign offenders and illegal migrants after the UK Home Secretary threatened them with visa penalties. A month after the threat from Shabana Mahmood, Namibia and Angola agreed to cooperate on returns. The Home Secretary has now also secured cooperation from the DRC. “My message is clear, if foreign governments refuse to accept the return of their citizens, then they will face consequences,” she said following the agreement. [BBC]
Financial watch
On Friday, Oil was trading higher at $67.22. The pound is trading at $1.36, €1.15, and ¥9.42.
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