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The Bank of England could cut interest rates for the first time in more than four years amid growing evidence that inflation has been tamed, experts have said.

Expectations on financial markets show about a 65% chance of the Bank’s Governor Andrew Bailey opting to reduce rates today.

It comes after new economic data suggested the UK’s cost-of-living crisis has eased in recent months thanks to inflation coming off the boil.

With the Tory leadership contest in full swing, Kemi Badenoch asked officials to pay for holiday flights with taxpayers’ money, the Guardian reports.

The shadow business secretary planned to fly to the US while in government but the trip was rebuffed by her former department’s top civil servant.

The Conservative leadership hopeful had travelled to Mexico for an official visit to discuss a plan to join the CPTPP Indo-Pacific trade bloc.

Keir Starmer is set to hold an emergency meeting with senior police officers in Downing Street following a second night of violence across the country.

Key Points

• Bank could cut UK interest rates but decision a ‘close call’
• Badenoch ‘asked’ to use taxpayers’ money to pay for holiday flight
• Starmer to meet police chiefs after second night of violence
• Transport minister blocks Ed Miliband for complaining about rail sandwiches
• What time is the Bank of England announcement?
• Culture secretary summons BBC chief over Huw Edwards scandal

UK manufacturing soared to a two-year high in July

The UK’s manufacturing sector has seen activity jump to a two-year high in July as growth in production and new orders strengthened, according to fresh data.

The closely watched S&P Global UK manufacturing PMI survey recorded a reading of 52.1 for July, up from from 50.9 in June and above the 51.8 indicated in last month’s “flash” estimate.

The sector has now remained above the 50 mark for the past three months.

Any reading above 50 means a sector is in growth, while a score below this means it is contracting.

EU reveals its eight demands for a better relationship with Britain

The EU has warned Sir Keir Starmer his attempt to repair relations with the bloc may fail if he does not meet a list of eight demands, it has emerged.

The prime minister has made rebuilding ties with Brussels a top priority since the general election, after years of mistrust between the two sides over Brexit.

And the European Commission has welcomed Sir Keir’s positive approach, but issued a list of tests through which the UK can “demonstrate real government commitment” to its withdrawal agreement with the EU.

Our political correspondent Archie Mitchell has the full story:

EU reveals its eight demands for a better relationship with Britain

Sir Keir Starmer has made rebuilding ties with Brussels a top priority since the general election, after years of mistrust between the two sides over Brexit

Lord Frost: Labour must not ‘fall for’ EU’s negotiating ‘playbook’,

Lord Frost has warned Labour will be in a “weak position from the start” if it “falls for” Brussels’ negotiating “playbook” during negotiations with the EU.

According to the Financial Times, the European Commission is urging the UK to fulfill eight demands to discuss Brexit trade agreements.

But Lord Frost said the government must not accept the demands.

The former Brexit minister tweeted this morning: “If Labour falls for this they will be [in] a weak position right from the start. It’s the standard Commission playbook: ‘we can’t talk about subject B till you have satisfied us on subject A’.

“You then only satisfy them on A by a series of concessions, which the British side is all too willing to make anyway to ‘win goodwill’.

“Of course it’s all too likely Labour don’t mind being in a weak position because they already intend to make concessions.”

What time will the Bank of England's interest rate decision be announced?

The Bank of England is set to make a knife-edge call on interest rates.

The decision is expected to be announced today at 12 noon.

Laith Khalaf, head of investment analysis at AJ Bell, said today’s announcement will be more “symbolic than substantial”.

“A rate cut marks an entry into a new phase of interest rate policy, but at street level the reality is financial conditions won’t change much,” he said.

“Especially for the horde of people who will be rolling off cheap fixed-rate mortgages this year and encountering a new and bracing financial reality.”

Transport minister blocks Ed Miliband for complaining about rail sandwiches

Loose Haigh has blocked one of her cabinet colleagues as he “keeps sending her complaints about the poor catering on the trains and planes he travels on”, GB News reported.

A column in the Daily Telegraph by GB News’ Chris Hope did not name the minister.

But Ms Haigh has now revealed it was energy minister Ed Milliband.

Lee Anderson accuses Labour of planning to ‘hit the poorest’

Reform MP Lee Anderson has claimed Labour is planning to “hit the poorest” with tax rises.

The right-wing politician told GB News: “You know what is coming. They are going to hit the poorest.

“All they have done in their first three weeks of government is attack our pensioners who have put a shift in for the past 50 years. It is an absolute disgrace.”

Reform accuses government of telling a ‘complete pack of lies’ on taxes

Reform UK MP Lee Anderson has accused the Labour government of telling voters a “complete pack of lies” on whether it will increase taxes during the general election.

It comes as Rachel Reeves admitted some taxes will go up but ruled out income tax, National Insurance or VAT.

But the MP for Ashfield has slammed the party over the government’s plan to plug £22billion black hole in public finances.

Mr Anderson told GB News: “It is just a pack of lies. They have had 14 years to get ready for government. They have been banging on for the last 14 years about the austerity, about the taxation system, we have got the highest tax since the Second World War.

“Listen, three weeks after being elected what have they done? They have taken £400 off pensioners for the winter fuel allowance, they have reneged on the £300 saving on people’s energy bills, they have given billions away to foreign countries for this lunacy, this net zero journey.

“They have just told the public a complete pack of lies.”

Make ‘terrible crime’ of fraud a national priority, firms urge government

Some of the UK’s biggest banks and telecoms firms have committed to sharing data to combat fraud while urging the Government to make the “terrible crime” a national priority.

The coalition, led by consumer group Which? and including Barclays, BT, Mobile UK, Nationwide, NatWest, Starling, Three UK, UK Finance, Virgin Media O2 and Vodafone, is calling on ministers to provide the leadership to ensure more businesses can better share intelligence to detect fraud and protect their customers.

It said sharing intelligence is key to getting ahead of organised crime groups that “blight the lives of so many consumers”.

Fraud accounts for around 40% of all crime in England and Wales, and figures from UK Finance revealed that criminals stole more than £1 billion through unauthorised and authorised fraud last year.

The group said it is concerned that individual companies, law enforcement agencies and Government are not working collaboratively enough to share information on how fraudsters can exploit gaps in their systems – which allows scammers to deploy the same tactics consistently across multiple channels.

Culture secretary summons BBC chief over Huw Edwards scandal

Lisa Nandy has called an urgent meeting with BBC boss Tim Davie following the Huw Edwards scandal.

The former TV newsreader pleaded guilty on Wednesday to three charges of making indecent photographs of children, after he was sent 41 illegal images by convicted paedophile Alex Williams, with seven being of the most serious type.

After the court appearance yesterday, the BBC revealed that it was made aware in November that Edwards had been arrested on suspicion of “serious offences”.

The corporation said: “If at any point during the period Mr Edwards was employed by the BBC he had been charged, the BBC had determined it would act immediately to dismiss him.”

You can follow the latest updates on Huw Edwards here:

BBC admits knowing of Huw Edwards arrest in November

Newsreader pleaded guilty on Wednesday to three charges of making indecent images of children

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