28 October 2026
The Supreme Court of the United Kingdom gave judgment on 28 October 2026 in The Kingdom of Spain and another v The London Steam-Ship Owners' Mutual Insurance Association Limited (No 2). The judgment carries the neutral citation [2026] UKSC 36, and the appeal was numbered UKSC/2025/0034. The appellant was the insurer, and the respondents were the Kingdom of Spain and the French State. Three questions of law were before the Court, all turning on section 13 of the State Immunity Act 1978, which limits the relief that may be granted against a State. The first was whether, absent agreement to the contrary, that section prevents an arbitral tribunal from granting an injunction against a State for breach of an equitable obligation to arbitrate. The second was whether it prevents a tribunal from awarding equitable damages for the same breach. The third was whether a tribunal may award equitable compensation against a State for that breach. The Court of Appeal had held that neither an injunction nor equitable damages could be awarded and had set aside the arbitrators' equitable compensation awards, and the insurer took all three points on to the Supreme Court.
Citation:
[2026] UKSC 36
Appeal number:
UKSC/2025/0034
Statute in issue:
State Immunity Act 1978, section 13
Why it matters for exams: Section 13 of the State Immunity Act 1978 limits the relief that may be granted against a State, and this appeal, cited as [2026] UKSC 36, turned on whether an arbitral tribunal may award equitable compensation against a State.
Kerala PSCUPSC
In plain words
UKSC United Kingdom Supreme Court — The neutral citation prefix used for judgments of the Supreme Court of the United Kingdom.
Arbitration Act 1996 Arbitration Act 1996 — The United Kingdom statute governing arbitration; section 69 allows an appeal on a point of law from an award.
21 October 2026
The Office for National Statistics (ONS) said consumer prices in the United Kingdom rose 3.5 per cent in the 12 months to September 2026, up from 3.1 per cent in August. The release came out on 21 October 2026. Prices rose 0.4 per cent over the month alone. CPIH, the wider measure that also counts owner occupiers' housing costs, rose 3.6 per cent over the year, against 3.3 per cent in August. Core CPI, which leaves out energy, food, alcohol and tobacco, rose 2.8 per cent. Transport, and motor fuels in particular, made the largest upward contribution; motor fuel prices were 29.8 per cent higher than a year before. Restaurants and hotels pulled the rate down a little. Transport alone added 0.94 percentage points to the annual CPI rate.
CPI annual rate:
3.5 per cent
CPIH annual rate:
3.6 per cent
Core CPI:
2.8 per cent
Motor fuel prices:
29.8 per cent higher over the year
Why it matters for exams: The Office for National Statistics (ONS) publishes the UK Consumer Prices Index; the annual CPI rate for September 2026 was 3.5 per cent, with core CPI at 2.8 per cent.
UPSCSSCBank
In plain words
ONS Office for National Statistics — The United Kingdom's national statistical institute.
CPI Consumer Prices Index — The main UK measure of how fast prices paid by households are rising.
CPIH Consumer Prices Index including owner occupiers' housing costs — CPI plus the housing costs of people who own the home they live in.
20 October 2026
The Office for National Statistics published its Labour market overview for the United Kingdom on 20 October 2026, covering June to August 2026. The unemployment rate for people aged 16 and over was 4.7 per cent, down 0.1 percentage points on both the quarter and the year. The employment rate for people aged 16 to 64 was 75.3 per cent, up 0.2 percentage points on the quarter and the year. Economic inactivity among that age group was 20.9 per cent, down 0.2 points on the year. Annual growth in regular pay, which excludes bonuses, was 3.7 per cent. Total pay, including bonuses, also grew 3.7 per cent, down from 3.9 per cent in the previous three-month period. The next release is due on 17 November 2026.
Unemployment rate:
4.7 per cent
Employment rate:
75.3 per cent
Economic inactivity rate:
20.9 per cent
Regular pay growth:
3.7 per cent
Why it matters for exams: The ONS Labour market overview put the UK unemployment rate at 4.7 per cent, the employment rate at 75.3 per cent and economic inactivity at 20.9 per cent.
UPSCSSCBank
In plain words
ONS Office for National Statistics — The United Kingdom's national statistical institute.
Economic inactivity Economic inactivity — People of working age who are neither in work nor looking for work.
17 September 2026
The Monetary Policy Committee (MPC) of the Bank of England voted to keep Bank Rate at 3.75 per cent. The meeting ended on 16 September 2026 and the decision was published the next day. The vote was 6-3. The six who wanted no change were Governor Andrew Bailey, Sarah Breeden, Swati Dhingra, Clare Lombardelli, Dave Ramsden and Alan Taylor. Megan Greene, Catherine L Mann and Huw Pill wanted a rise of 0.25 percentage points, to 4 per cent. Bank Rate is the core interest rate in the United Kingdom: the Bank pays it on money that commercial banks keep with it and charges it on loans to them, so their own savings and lending rates move with it. The MPC meets eight times a year and works to a 2 per cent inflation target.
Bank Rate:
3.75 per cent
Vote:
6-3 to hold
Governor:
Andrew Bailey
MPC meetings a year:
8
Inflation target:
2 per cent
Why it matters for exams: Bank Rate, the Bank of England's policy interest rate, stands at 3.75 per cent after a 6-3 Monetary Policy Committee vote; Andrew Bailey is the Governor.
Kerala PSCUPSCBank
In plain words
MPC Monetary Policy Committee — The Bank of England committee that sets Bank Rate.
Bank Rate Bank Rate — The core interest rate in the United Kingdom, set by the MPC.
30 October 2026
The Office for Budget Responsibility published its Economic and fiscal outlook for October 2026 on GOV.UK, and the forecast covers policies announced up to and including that month's Budget. The OBR is an independent body, and the Government's fiscal rules are tested against the numbers it produces. Public sector net borrowing is put at 4.2 per cent of GDP, or £133 billion, in the current financial year, falling to about 1.8 per cent of GDP, or £67 billion, by 2030-31. Public sector net debt stands at 96 per cent of GDP this year, peaks at 97 per cent in 2028-29 and comes back to 96 per cent by 2031-32. Real GDP growth is about 1¼ per cent in 2026 and about 1 per cent in 2027. CPI inflation is about 3½ per cent in 2027 and is expected to be back at 2 per cent by 2028.
Net borrowing this year:
4.2 per cent of GDP (£133 billion)
Net borrowing by 2030-31:
About 1.8 per cent of GDP (£67 billion)
Debt peak:
97 per cent of GDP in 2028-29
GDP growth in 2027:
About 1 per cent
Inflation back at target:
2 per cent by 2028
Why it matters for exams: The Office for Budget Responsibility is the independent body whose Economic and fiscal outlook carries the United Kingdom's official forecasts for growth, inflation, borrowing and debt.
UPSCSSCBank
In plain words
OBR Office for Budget Responsibility — The independent body that produces the United Kingdom's official economic and fiscal forecasts.
Economic and fiscal outlook Economic and fiscal outlook — The OBR's forecast document, published with the Budget.
28 October 2026
HM Treasury published the Budget 2026 document on GOV.UK. It raises the National Living Wage and the National Minimum Wage by 3.9 per cent. It brings in a £100 Household Energy Payment for households in council tax bands A to D in England. The cut in VAT on electricity runs on to July 2027, and so does the 5p cut in fuel duty. The Government also plans to abolish gas standing charges. Headline rates of income tax, National Insurance and VAT are left unchanged, and the planned cut to the cash ISA allowance is reversed. From April 2028 electric vehicles come under a new mileage-based charge, known as eVED. Pubs, music venues and social clubs get a 20 per cent cut in business rates.
National Living Wage rise:
3.9 per cent
Household Energy Payment:
£100, council tax bands A to D in England
Electric vehicle charge:
eVED, a mileage-based charge from April 2028
Business rates cut:
20 per cent for pubs, music venues and social clubs
Why it matters for exams: The UK Budget 2026 raised the National Living Wage by 3.9 per cent, created a £100 Household Energy Payment for council tax bands A to D in England, and announced eVED, a mileage-based charge on electric vehicles from April 2028.
UPSCSSCBank
In plain words
eVED Electric vehicle excise duty — The mileage-based charge on electric vehicles announced in the UK Budget 2026, to start from April 2028.
National Living Wage National Living Wage — The legal minimum hourly pay for older workers in the United Kingdom.
28 October 2026
The Budget 2026 document published by HM Treasury on GOV.UK sets out the Government's defence and security spending. It fully funds the Defence Investment Plan. It commits the United Kingdom to spending 3.5 per cent of GDP on defence by 2035. It also provides over £10 billion in additional support to Ukraine. The Budget links higher debt interest costs to conflict in the Middle East, which it says adds about £14 billion a year on average to that bill compared with the March forecast. On the wider spending side, capital investment is up by £120 billion over the Parliament and day-to-day departmental spending is £40 billion higher each year by 2028-29, both measured against the previous government's plans.
Defence spending goal:
3.5 per cent of GDP by 2035
Additional support to Ukraine:
Over £10 billion
Plan funded in full:
Defence Investment Plan
Capital investment:
Up £120 billion over the Parliament
Why it matters for exams: The UK Budget 2026 fully funds the Defence Investment Plan, commits 3.5 per cent of GDP to defence by 2035 and gives over £10 billion in additional support to Ukraine.
Kerala PSCUPSC
In plain words
Defence Investment Plan Defence Investment Plan — The United Kingdom's plan for defence equipment and capability spending, fully funded in the Budget 2026.
28 October 2026
The Budget 2026 document on GOV.UK changes the way the United Kingdom's state pension is uprated. The Triple Lock is adjusted so that the state pension tracks earnings over time. The Government estimates this will save £15 billion a year by the late 2030s. The Budget also brings in a new Pension Tax Allowance. On housing, it adds £1.5 billion for about 10,000 social and affordable homes and confirms £4.7 billion for the Your First Home scheme. Online marketplaces will be required to collect VAT, and tariffs on more than 100 food and drink products are cut temporarily. The Bank Corporation Tax Surcharge is raised for a time from 3 per cent to 6 per cent.
Triple Lock change:
State pension to track earnings over time
Estimated saving:
£15 billion a year by the late 2030s
Affordable housing:
£1.5 billion for about 10,000 homes
Your First Home scheme:
£4.7 billion confirmed
Bank Corporation Tax Surcharge:
Raised from 3 per cent to 6 per cent
Why it matters for exams: The UK Budget 2026 adjusted the state pension Triple Lock to track earnings, created a Pension Tax Allowance, and confirmed £4.7 billion for the Your First Home scheme.
Kerala PSCUPSCBank
In plain words
Triple Lock Triple Lock — The rule by which the United Kingdom state pension is uprated each year.
Your First Home Your First Home — A United Kingdom government scheme for first-time home buyers, confirmed in the Budget 2026.
15 October 2026
The Office for National Statistics released its monthly estimate of gross domestic product for the United Kingdom on 15 October 2026. Real GDP grew 0.1 per cent in August 2026. Over the three months to August 2026, measured against the three months to May 2026, real GDP grew 0.7 per cent. Services was the only sector to grow over that three-month period, rising 0.9 per cent, while production fell 0.2 per cent and construction fell 1.0 per cent. In the single month of August the picture was reversed: production grew 0.8 per cent, services showed no growth and construction fell 0.2 per cent. The ONS publishes this estimate every month, which is why the United Kingdom has a monthly reading of GDP rather than only a quarterly one.
Monthly GDP growth:
0.1 per cent
Three-month GDP growth:
0.7 per cent
Services over three months:
Up 0.9 per cent
Construction over three months:
Down 1.0 per cent
Why it matters for exams: The Office for National Statistics publishes a monthly GDP estimate for the United Kingdom; real GDP grew 0.1 per cent in August 2026 and 0.7 per cent over the three months to August.
UPSCSSCBank
In plain words
GDP Gross domestic product — The total value of goods and services an economy produces.
ONS Office for National Statistics — The United Kingdom's national statistical institute.
8 September 2026
Britain will have a new head of its highest court in January 2027. Lord Briggs of Westbourne is to take the office of President of the Supreme Court of the United Kingdom, and the announcement came on 8 September 2026. He steps in when Lord Reed of Allermuir retires from the post. An independent selection commission put his name forward, the Prime Minister and the Lord Chancellor then advised the King, and the King made the appointment. Lord Briggs reached the Court of Appeal as a Lord Justice of Appeal in 2013 and joined the Supreme Court as a Justice in 2017. He also led the Civil Courts Structure Review, whose recommendations included setting up an online civil court, and served as Deputy Head of Civil Justice. He now looks after practice and procedure for the Judicial Committee of the Privy Council as well.
Next President:
Lord Briggs of Westbourne
Takes office:
January 2027
Outgoing President:
Lord Reed of Allermuir
Justice of the Supreme Court since:
2017
Why it matters for exams: Lord Briggs of Westbourne becomes President of the UK Supreme Court in January 2027, succeeding Lord Reed of Allermuir.
Kerala PSCUPSC
In plain words
JCPC Judicial Committee of the Privy Council — The court of final appeal for a number of Commonwealth countries and British overseas territories.
Lord Chancellor Lord Chancellor — The United Kingdom minister responsible for the courts and the judiciary.
Background
Bank Rate is in the news because the Bank of England's Monetary Policy Committee has just decided to hold it at 3.75 per cent. Bank Rate is the core interest rate in the United Kingdom. The Bank of England pays it on money that commercial banks and other financial institutions keep with it, and charges it on loans it makes to them. Because of that, banks move their own savings and lending rates when Bank Rate changes. The Monetary Policy Committee, not the Government, decides the level. The Committee meets eight times a year. It works to an inflation target of 2 per cent and uses Bank Rate as its main tool for meeting that target.
Rate-setting body:
Monetary Policy Committee
Meetings a year:
8
Inflation target:
2 per cent
Bank Rate:
3.75 per cent
Why it matters for exams: Bank Rate is the Bank of England's core interest rate, set by the Monetary Policy Committee, which meets eight times a year and works to a 2 per cent inflation target.
UPSCSSCBank
In plain words
Bank Rate Bank Rate — The core interest rate in the United Kingdom, paid on deposits held at the Bank of England and charged on its loans.
MPC Monetary Policy Committee — The Bank of England committee that decides Bank Rate.
Background
This matters now because a Budget has just been delivered with an independent forecast beside it. The Office for Budget Responsibility produces the economic and fiscal forecasts on which the United Kingdom Budget rests. It also confirms whether the Government is meeting its own fiscal rules. Two such rules are named in the Budget. The stability rule is about day-to-day spending being covered by revenue. The investment rule is about debt as measured by public sector net financial liabilities. In this Budget the stability rule is met with a buffer of £15 billion in 2029-30, rising to £22 billion in 2030-31, and the investment rule with a margin of £24 billion in 2029-30. Because the OBR, not the Treasury, produces the forecast, the rules are judged against numbers the Government does not set.
Forecaster:
Office for Budget Responsibility
Stability rule buffer:
£15 billion in 2029-30
Investment rule margin:
£24 billion in 2029-30
Why it matters for exams: The Office for Budget Responsibility produces the forecasts the UK Budget rests on and confirms whether the stability rule and the investment rule are met.
UPSCBank
In plain words
Stability rule Stability rule — The United Kingdom fiscal rule on meeting day-to-day spending from revenue.
PSNFL Public sector net financial liabilities — The debt measure used for the United Kingdom's investment rule.