6:24 am, June 3, 2026
Inflation target should not be increased, says Bank governor
The governor of the Bank of England has said the Bank should not increase its inflation target, stressing that it is important to give households confidence it can bring down the rising cost of living.
Andrew Bailey also told members of the House of Lords’ economic affairs committee that he believes inflation would currently be at the 2% target level were it not for the conflict in the Middle East.
The central bank boss said there should not be an argument to increase the inflation target to 3% to adjust for increases in living costs rising faster than the current target rate.
South West Water gets record £1.93m fine for drinking water contamination
South West Water Ltd has been handed a record fine of almost £2m for supplying water unfit for human consumption after a parasitic outbreak in Devon.
The company pleaded guilty to an offence under s70(1) of the Water Industry Act 1991 over the contamination of water by cryptosporidium, a parasite which causes sickness and diarrhoea.
Exeter Magistrates’ Court heard there were 537 probable or confirmed cases of cryptosporidiosis, with at least 10 people admitted to hospital.
BMW brings all-wheel drive to M2 for the first time
BMW has launched a new version of its M2 sports car, which gains its xDrive all-wheel-drive system for the first time.
Expanding the standard M2 line-up beyond a standard rear-wheel-drive configuration, the new xDrive model aims to improve all-weather traction and performance. As with the regular M2, the xDrive version is powered by a 3.0-litre turbocharged straight-six engine with 480bhp.
However, unlike other versions of the M2, the xDrive can independently split power between the front and rear wheels. During normal driving conditions, the M2 is predominantly rear-wheel-drive, but only when the system cannot send any more power through the rear wheels are the front ones called into play. Prices start from £74,255.
The markets
The FTSE 100 has made steady progress, with events in the Middle East continuing to largely dictate the market mood.
The FTSE 100 closed up 34.56 points, 0.3%, at 10,373.51, while the FTSE 250 ended up 132.58 points, 0.6%, at 23,378.36, with the AIM All-Share down by 0.92 of a point, 0.1%, to 818.32.
The pound traded at 1.3475 dollars on Tuesday afternoon, up from USD1.3447 on Monday. Against the euro, sterling firmed to 1.1578 euro from 1.1570 euro on Monday.
Starmer to face PMQs after Mandelson files release lay bare splits in government
Sir Keir Starmer is set to face questions from MPs after thousands of newly released documents exposed cracks in his government and raised questions over his use of disappearing messages.
The prime minister’s weekly appearance in the Commons at Prime Minister’s Questions will be the first opportunity MPs have to grill him about the content of the latest files related to Lord Peter Mandelson’s appointment as Britain’s ambassador to the United States.
Monday’s document dump revealed private messages between Lord Mandelson and senior ministers in which they admitted their frustrations with Sir Keir’s leadership and the heart of government.
Protesters clash with police in Southampton over Henry Nowak murder
Protesters have pelted police with missiles in clashes close to where Henry Nowak was stabbed to death.
Hundreds gathered outside Southampton Central Police Station on Tuesday where activist Tommy Robinson and Laurence Fox were among those who spoke to the crowd.
Violent scenes broke out after a large group walked across town to the area of Portswood. Chairs, cans and flares were thrown at police in riot gear, eventually forcing officers and three police vans back from the line they had been holding.
Latest on Car Dealer
Vertu’s mystery investor revealed as Constellation increases holding in car dealer to nearly 20%
Constellation Automotive Group has upped its stake in car dealer Vertu after the firm was revealed as the mystery buyer of a £20m stock purchase.
Group 1 Automotive signs strategic partnership with Geely Auto after selling JLR sites
Car dealer Group 1 Automotive has continued the to re-shaping its UK retail network by signing a new strategic partnership with Geely Auto.
Used car prices held steady in May as interest in older cars keeps on growing
Used car prices held steady in May as interest in older models continued to rise, new data shows.
Weather
Cloudy, windy conditions will bring outbreaks of rain across the UK today, with some heavy bursts and a chance of thunder in northern areas, reports BBC Weather. Sunny spells will develop in the south later.
Tonight, heavy showers continue in the west, while eastern areas stay drier initially before showers arrive towards dawn.
