Britain’s first sovereign AI model secures blue-chip backing as Starmer unveils £400m plan June 8, 2026 Sir Keir Starmer’s push to build sovereign British AI capability has won backing from some of the country’s biggest companies, with BT, HSBC, Lloyds, Natwest and BAE Systems joining plans to develop Britain’s first sovereign frontier AI model. British AI startup Cosine unveiled a coalition of major banks, defence contractors and infrastructure firms who had [...]
‘Why single out banks?’: Santander chief hits out at UK tax regime June 8, 2026 The boss of Santander has branded the UK’s tax regime on banks as making “no economic sense” as speculation mounts that the industry could be turned to for a quick cash grab if the Labour government lurches to the left. Ana Botín, the chief executive of the Spanish banking giant, has said the UK tax [...]
As it happened: Stocks and oil recover as Iran declares end to strikes; tech rally rocks markets June 8, 2026 Good morning and welcome back to the City PM liveblog. The FTSE 100 edged into the green on Monday lunchtime and US futures pointed to gains, as the markets looked to claw back early jitters caused by fresh Middle East strikes and a tech stock sell-off. An exchange of fire from Iran and Israel left [...]
Deputy PM to unveil AI labs to drag legal sector out of ‘analogue’ age June 8, 2026 The UK government is launching a new AI growth project aimed squarely at dragging the UK’s billion-pound legal sector out of its “analogue” age. Ahead of London Tech Week, City PM can reveal that Deputy Prime Minister David Lammy will unveil ‘AI growth labs’, a regulatory safe space designed to cut through bureaucratic red tape [...]
Food inflation: First signs of energy cost surge feed through to supermarket shelves as discounts fail to stem price growth June 8, 2026 Supermarket food inflation has risen significantly for the first time this year, a City PM analysis has found, flashing an early warning sign that the surge in energy and freight costs triggered by war in Iran is reaching shelf prices in the UK. City PM reporters gather data on around 200 prices of products across [...]
Jobs slump as economy ‘held up by uncertainty’ June 8, 2026 The UK jobs market has been handed another blow as businesses ditch permanent hires as the economy battles against domestic and international uncertainty. The latest jobs report from KPMG and REC, the professional body for recruiters, showed hiring for permanent places dropped to a reading of 44.1 in May, which sits below the neutral 50 [...]
Upgrading the grid risks ending up like HS2 June 7, 2026 Upgrading the UK's electricity grid is a vastly complex project. I hope the government's learned from HS2, writes John Lazar.
Defence spending plan delay undermines UK credibility, MPs say June 7, 2026 The delay in publishing Keir Starmer’s long-awaited plan on defence spending has undermined the UK’s credibility and left the country less safe, a parliamentary committee has warned. In a new report critisising the long delay in publishing Starmer’s Defence Investment Plan (DIP), the Public Accounts Committee said this “has undermined the UK government’s credibility with [...]
Starmer scrambles to make savings in bid to boost defence spending June 7, 2026 Keir Starmer is planning on making cuts across the government in a bid to fund his long awaited Defence Investment Plan. The prime minister will make targeted slashes to transport and net zero spending by 1 per cent in a bid to raise approximately £6bn for defence costs by the end of this parliament. Starmer [...]
Labour warned not to kill off hybrid jobs millions rely on June 7, 2026 Labour has been warned not to “regulate flexible jobs out of existence” after new polling found two-thirds of part-time workers chose their role specifically because it offered flexibility around childcare or studying. The intervention from the British Retail Consortium (BRC) comes as ministers press ahead with plans to overhaul zero-hours contracts and force employers to [...]
