July National Update

Economy:

• Inflation rates: The current inflation rate is 2.8%. Inflation has fallen but is expected to go up again as the energy price rises have their knock-on effects. The Bank of England target for inflation is 2%.
• Interest rates: The current bank rate has been held at 3.75%. The next Bank of England meeting is scheduled for 30 July with rates expected to remain unchanged, although some commentators are suggesting rates will have to increase later in the year.
• GDP growth: GDP increased by 0.6% in Q1 of 2026. This was higher than expected and caused by an increase in all three sectors. The next release is scheduled for 13 August.  
• Pound sterling: The pound sterling is trading near $1.33 against the US Dollar and €1.61 against the Euro, remaining stable and reflecting comparable economic shifts across the UK and the European market.
• House prices: House price growth stalled for a second consecutive month in June 2026. The Guardian reported that on an annual basis the price of a typical house increased by 2.2% in June, up from 1.7% in May.
• Unemployment rate: The UK unemployment rate is 4.9%. BBC reported the number of job vacancies has hit five year low.

 Activity and bills in Parliament:

• Green belt (protection) bill – A private member’s bill seeking to establish a national register of Green Belt land in England and restrict councils’ ability to de-designate Green Belt land. The bill has not yet been printed, so detail is limited, but it reflects continued political pressure around Green Belt protection and the release of land for development.
• Planning (solar power generation) bill – A private member’s bill focused on planning permission for solar schemes on agricultural land. The bill has not yet been printed, so the detail is limited, but it reflects continued political sensitivity around solar farms, food security and the use of best and most versatile agricultural land.
• Battery Energy Storage (planning and regulation) bill – another private member’s bill focused on the construction, use and decommissioning of battery energy storage systems. The bill would require fire and rescue authorities to be consulted on relevant planning applications and would require a government review of battery storage safety and risks.

Other planning news:

• Burnham speech on housebuilding and devolution – Andy Burnham, the presumptive next prime minister and leader of the Labour Party, used his first speech to pledge the “biggest council house building programme since the post-war period”, alongside greater devolution and the creation of “Number 10 North” in Manchester.
• Nine councils placed in planning special measures – Planning minister Matthew Pennycook has placed nine councils in special measures for poor-quality decision-making on major applications, meaning they lose exclusive control over certain major planning decisions. The councils include Cherwell, Dacorum, Epping Forest, Hertsmere, Malvern Hills, Rossendale, South Tyneside, Staffordshire Moorlands and Wychavon.
• Some 19 councils have signed a letter calling for LGR to be delayed, and several councils, including Essex and Hampshire county councils, have commenced judicial review proceedings against the government, with others to follow. For unitary council elections to happen next May, the government has to lay a bill this month or the first week of September, when parliament returns – any later and the elections will be delayed for a year.
• London housing delivery falls sharply – It was recently revealed that London delivered just 6,325 homes between March 2025 and March 2026, around seven per cent of its 88,000-home annual target, raising further concerns over Labour’s national 1.5 million homes target. The draft version of the next London Plan should be published in July.