6:34 am, June 1, 2026
Bank of England can tolerate inflation above 2% target, says Bailey
The governor of the Bank of England has said that allowing inflation to remain above target levels for a period is ‘appropriate’ in the face of uncertainty and weakness in the economy.
Andrew Bailey told an audience in Reykjavik, Iceland, that reacting too early to inflation concerns ‘may generate undesirable volatility’.
The government has given the central bank a target rate of 2% for consumer price inflation, with rate-setters at the Bank able to use monetary policy to help bring inflation sustainably down the this level. Inflation was most recently recorded at 2.8% in April.
Royal Mail misses annual delivery targets but hails progress amid £500m plan
Royal Mail has missed its delivery targets for another year, but said more first-class mail has been sent on time over recent weeks after pledging to invest £500m in improving its service.
Some 75.7% of first-class mail arrived the next working day over the 12 months to the end of March, slightly less than the 76.3% achieved the prior year. For second-class mail, 90.2% was delivered within three working days – less than the 92.2% achieved the year before.
Under Ofcom’s targets, 90% of first-class mail should be delivered the next day, and 95% of second-class mail should be delivered within three days. The watchdog said: ‘We are very concerned to see the latest delivery figures from Royal Mail today and will announce next steps shortly.’
Peugeot introduces sweeping price cuts across entire range
Peugeot has announced a series of wide-ranging price cuts for its cars which could see the cost of some models reduced by nearly £10,000.
Savings of between £2,000 and £3,500 can now be found on 208, 2008, 3008 and 5008 models, while even electric models such as the e-208 and E-2008 are now on sale with significant reductions. The E-3008 is now nearly £10,000 cheaper thanks to a lower price that now allows the SUV to qualify for the Electric Car Grant.
Nicola Dobson, managing director, Peugeot UK, said: ‘These changes strengthen Peugeot’s position in the mainstream market by making our range more accessible than ever to both retail and fleet customers.’
The markets
The FTSE 100 edged lower on Friday, as US president Donald Trump said he was now making a ‘final’ decision on whether or not to strike a peace deal with Iran.
The FTSE 100 closed down 16.68 points, 0.2%, at 10,409.28. The FTSE 250 ended up 100.85 points, 0.4%, at 23,425.77, while the Aim All-Share rose 7.62 points, 0.9%, to 821.25.
The pound traded at 1.3479 dollars on Friday afternoon, up from 1.3435 dollars on Thursday. Against the euro, sterling firmed to 1.1543 euro from 1.1530 euro on Thursday.
Second tranche of Mandelson papers expected to be published
Hundreds of documents relating to the appointment of Lord Peter Mandelson as ambassador to the US are expected to be published this week.
The release, said to be the second largest publication to the House of Commons in history, is the second tranche of documents on the peer’s appointment.
The second set of documents is expected to include messages between Lord Mandelson and ministers and government advisers, including Sir Keir’s former chief of staff Morgan McSweeney.
Nicola Sturgeon says Murrell has never explained his embezzlement crimes to her
Nicola Sturgeon has said her estranged husband Peter Murrell has never explained to her why he embezzled more than £400,000 from the SNP as she spoke of the ‘trauma’ she has gone through.
The former Scottish first minister also said she feels like she is ‘serving a sentence for a crime I did not commit’ after Murrell pleaded guilty at the High Court in Edinburgh this week to embezzling the sum from the SNP between 2010 and 2022.
Murrell, 61, spent the money on items including a motorhome, cars, kitchen gadgets, expensive watches and pens, and more mundane purchases such as hand cream and toilet seats. Sturgeon said the couple were both on high salaries and she thought their incomes would have supported anything she saw in her house.
Latest on Car Dealer
Used car dealership enters liquidation with more than £62,000 of debt
A dealership in Swindon has entered voluntary liquidation after racking up more than £60,000 of debt.
Suzuki appoints T.I.M UK Motors as latest franchise partner in Nottingham
T.I.M UK Motors has joined the Suzuki dealer network, opening a new showroom for the brand in Nottingham.
Dealers warned to prepare as motor finance complaints process restarts next week
Dealers are being warned to prepare ahead of the Financial Conduct Authority restarting its complaints process from next week (May 31).
Used coupe prices increase more than other body styles as number of new models fall
Coupes have become the highest appreciating body style in the UK, with prices rising an average of 11% year-on-year.
Weather
Cloud and rain will spread across much of the UK today, moving in from the south-west, although the south-east should enjoy some sunny spells this morning, reports BBC Weather. Rain will turn heavier across southern areas later.
Tonight remains unsettled, with further rain and showers in the south, while northern areas stay largely drier with some clear spells.
