The five-minute briefing on the biggest political, business and economic stories.

01 — OPENING

Hello again.

Temperatures are expected to be in the mid-twenties again today, with fans up and down the country being tentatively switched off, although not yet returned to the cupboard.

Things were also less heated in Andy Burnham’s first cabinet as he pledged a culture of fiscal discipline alongside measures to ease cost-of-living pressures. Former Chief Secretary to the Treasury Darren Jones got a little amped up, claiming that the proposals to end VAT on electricity bills are unfunded.

Bond markets remained cool, suggesting investors are taking a wait-and-see approach ahead of further detail on Burnham’s spending plans and next week’s Bank of England MPC meeting.

02 — MARKETS & THE NUMBER

03 — THE LEAD

Burnham plots a policy path but funding questions remain

Tuesday’s pledge to scrap VAT on household electricity bills may prove popular with voters, but it raises important questions over how the policy, and the wider agenda, will be funded.

Andy Burnham had trailed the cost of living as a key policy focus on Monday, with a promise to lay out specific measures on Tuesday. The proposal, which aims to save households around £45 a year, will cost an estimated £850 million based on current electricity prices. Burnham said the measure would provide households with “breathing room” as they continue to face elevated energy costs.

Questions over funding emerged almost immediately. Former Chief Secretary to the Treasury Darren Jones disputed the claim that the measure could be financed by cancelling the now-shelved digital ID programme, arguing that no savings had been allocated from that policy. Whatever the politics, the broader question remains: how will Burnham’s wider programme be paid for?

Fundamentally, the Prime Minister has a few choices.

The first is higher taxation, although he has said very little on this, aside from floating possible changes to the personal allowance which would bring more people out of the lowest band of income tax.

The second is growth, which can ease fiscal pressure over time but is difficult for governments to generate quickly. Recent reforms to employers’ legislation, as well as increases in national insurance under the Starmer government, have not helped here.

The third is reduced spending, although Burnham may tread carefully around welfare reform given that Starmer’s failure to bring backbench MPs with him over serious changes was a big part of his undoing.

The final option is more borrowing, although recent warnings from the IMF over the need for fiscal discipline will be relevant here. Bond markets were relatively sanguine about Burnham’s Tuesday morning proposals, but there will be more scrutiny ahead of the budget later this year as the government announces further policies and their related funding plans.

04 — THE CITY

Private equity holding on for longer

Private equity firms may be holding on to their best assets for longer, with Evercore arguing that the shift is becoming a structural feature of private markets.

According to the Evercore report, secondary deals for private assets increased to $121 billion in the first half of 2026. Single-asset continuation funds allow managers to move a prized company into a new investment vehicle, enabling existing investors to cash out while bringing in new capital instead of selling the business outright.

While some of the reduction in exits can be explained by weaker markets, Evercore argues that continuation funds are increasingly becoming a structural feature of private equity.

If that view proves correct, the traditional private equity model of buying, improving and selling businesses after a fixed period could potentially give way to longer-term ownership of key assets.

05 — THE BUSINESS END

Food companies adapting to the GLP-1 phenomenon

The rise of GLP-1 weight-loss drugs is beginning to reshape the entire food industry.

Citing PwC research, Mergermarket reports that the number of UK GLP-1 users could rise to around 7 million by next year. This is in part driven by the availability of such drugs in pill form, which may be more attractive to some users than injections. The drugs suppress appetite, meaning users typically eat smaller portions and therefore require more nutrient-dense meals.

Mergermarket notes that some manufacturers, such as Nestlé, have responded by bringing out Vital Pursuits, a series of frozen meals specifically aimed at GLP-1 users. Others have been slower to adapt.

As a result, GLP-1 exposure could become a routine part of M&A due diligence, with buyers seeking assurances that food companies have adapted to changing consumer habits. What seems clear is that investors view GLP-1 as more than a passing trend. As adoption grows, its influence on product development, valuations and M&A activity across food companies is likely to become more significant.

06 — THE ECONOMY

Wage growth no longer slowing, but inflation still bites

Data from the Office for National Statistics covering March to May shows that wage growth is no longer slowing, but inflation is still eating into workers’ pay.

Regular pay grew by 3.4% over the three months to May. However, as has been the case for a number of months, inflation continues to erode those relative gains. Growth in real terms, adjusted for inflation, was only 0.3%.

Although this is a marginal improvement on previous ONS releases, it suggests wage pressures have eased but remain persistent.

New Prime Minister Andy Burnham has sought to tackle cost-of-living issues with an initial focus on energy prices, but inflation remains a persistent problem. The release is likely to form part of the Bank of England’s thinking when it considers potential changes to interest rates at the next MPC meeting on 30 July.

07 — INTERNATIONAL

Ukraine debates the next phase of its war strategy

Public debate over Ukraine’s wartime leadership has intensified after supporters of former defence minister Mykhailo Fedorov threatened nationwide protests unless he is reinstated and commander-in-chief Oleksandr Syrskyi is removed.

The disagreement has something of a generational feel. Syrskyi is seen by many supporters as representing continuity and military experience, while Fedorov has become symbolic of a more technology-driven approach based on drones and greater innovation.

The debate reflects a broader question facing Ukraine: should it continue fighting primarily through manpower and traditional artillery, or shift increasingly towards drones and technological innovation?

08 — QUICK HITS

09 — THE TAKE

10 — SIGN-OFF

So, there you have it. Hope that’s left you happier than a newly appointed Secretary of State with a gleaming ministerial car and a shiny new despatch box.

Until tomorrow,
Sean