There are reasons to be cheerful about UK plc in 2026. Here are four From better prospects for consumer spending to tentative signs of improving productivity, the doom and gloom of 2025 could be behind us
‘You’re barred!’: Labour’s battle with pubs promises a new year headache A protest barring MPs from pubs is exposing deeper tensions between politicians and the communities they represent
UK failure to seal EU tax exemption hands industry mountain of paperwork Brussels confirms Christmas carve-out from green levies will not happen, leading to Brexit-style requirements
China has set a bear trap for Keir Starmer – and our naive PM is walking straight into it The conviction of Jimmy Lai in Hong Kong is another hostile act. How can Britain ignore Beijing’s provocations and human rights abuses, asks Guardian foreign affairs commentator Simon Tisdall
Alan Milburn to review rise in youth minimum wage Exclusive: Blair-era minister echoes concerns about young people being priced out of jobs, in intervention likely to dismay Labour MPs
UK politics: ‘Not clear’ who was behind FCDO hack, says minister, amid reports of China link – as it happened Chris Bryant confirms October cyber-attack as the Sun names Storm 1849, a Chinese hacker group, as being responsible
UK borrowed more than expected in November amid pre-budget pressure ONS figures show public sector net borrowing was £11.7bn – £1.9bn less than in same month last year
Young people will suffer most from UK’s ageing population, Lords say House of Lords report says tools such as raising pension age and increasing immigration will not be adequate
PPE company linked to ex-Tory peer Michelle Mone goes into liquidation PPE Medpro owes government £148m for supplying unusable personal protective equipment during Covid-19 pandemic
Megan Davies obituary Other lives: Highly regarded branch secretary of the Prospect union, singer, sports fan and lover of craft beer
Leeds £2.5bn tram scheme delayed to late 2030s after government review Business case must be submitted for mass transit system with lines connecting Leeds and Bradford before work continues
Bank of England cuts interest rates to 3.75% in pre-Christmas boost for struggling economy Rate-setters back quarter-point cut after steep fall in inflation and weak economic data but vote remained close
Ineos chemicals plant is saved. But what is the strategy for the rest of heavy industry? Argument for ensuring ethylene production at Grangemouth is strong, yet policymaking on deindustrialisation is disjointed
UK inflation falls sharply to 3.2% amid slowdown in food price rises Drop in November annual rate adds to case for Bank of England cut to interest rates on Thursday
Government grants £120m of funding to save UK’s last ethylene plant Cash injection for billionaire Jim Ratcliffe’s Ineos site in central belt of Scotland will help safeguard 500 jobs