UK politics news today: interest rates rise to 4%, tourist tax law, plan to end cattle TB
By the Population Decides team. Every story summarised from several outlets, with links to the originals.
Good morning. It is Friday 6 November 2026. The Bank of England has put interest rates up for the first time in more than three years, a new law would let mayors charge visitors a small fee for overnight stays, and the government has signed off a plan to wipe out TB in cattle by 2038. Here is what happened and what it means for you.
Bank of England raises interest rates to 4% as energy costs push up prices
The Bank of England has raised its main interest rate, called Bank Rate, from 3.75% to 4%, the first rise since August 2023.
Bank Rate affects how much banks charge for mortgages and loans and how much they pay on savings. The Bank's Monetary Policy Committee, the nine people who set the rate, voted eight to one for the rise, with the ninth member wanting a bigger increase to 4.25%. The Bank said the conflict in the Middle East has kept energy prices high, pushing up fuel and household bills, and it expects those costs to start feeding into other prices and wages. Inflation, the rate at which prices rise, was 3.5% in September, and the Bank now expects it to reach about 5% by the middle of 2027. Its target is 2%.
People on tracker or standard variable rate mortgages will feel the change soonest. Moneyfacts, quoted by MoneyWeek, worked out that a 0.25 point rise adds around £37 a month to a £250,000 tracker mortgage over 25 years. Most people on fixed deals will see no change until their deal ends, though average new fixed rates were already close to 6%. Savers may get slightly better rates over time. Governor Andrew Bailey said the rise should not be seen as the first of a long run, but that it was unlikely to be the last unless the Middle East conflict ends. Some economists expect another rise to 4.25% by February. The next decision is on 17 December. See how the Budget changes your money with our Budget calculator, or try setting the economy yourself in the game.
Explain it like I'm 15
Borrowing money just got a bit more expensive and saving a bit more rewarding. The Bank is trying to stop prices rising too fast, but families with mortgages may pay more each month.
The People's Verdict: What should the Bank of England do with interest rates at its next decision in December?
New law would let mayors charge a small fee on overnight stays
The government has brought a new law called the Visitor Levy Bill to the House of Commons, which would let mayors and local leaders in England add a small charge to the cost of hotel rooms and other overnight stays.
The fee would be a percentage of what the stay costs, not a fixed amount, and would only apply to the first 28 nights. Ten mayors have promised that any levy in their area would be no higher than 5%. Student housing, care homes and refuges would not be charged, and people who only rent out a room now and then would only pay above a set amount. Before bringing in a levy, an area would have to consult the public and local businesses.
Housing and Communities Secretary Angela Rayner said every pound raised would stay in the local area, to be spent on things like high streets, parks, public toilets and events. Greater Manchester's existing £1 a night hotel charge raised £2.8 million in its first year, and Liverpool's mayor says a levy there could raise up to £18 million a year. The government says it recognises hospitality businesses are under pressure, and some in the tourism industry warn a levy must be designed carefully with them. Find out more about your MP and the 2027 elections.
Explain it like I'm 15
If you stay in a hotel or holiday let in some areas, you might pay a little extra each night. The money would go to the local area rather than the national government.
The People's Verdict: Should mayors in England be allowed to charge a fee on overnight stays?
Government signs off plan to end TB in cattle by 2038 and stop badger culls
The government has formally adopted a plan to get rid of bovine TB, a lung disease that affects cattle, in England by 2038.
Bovine TB forces farmers to have infected animals killed and can stop them selling livestock. The Department for Environment, Food and Rural Affairs says new outbreaks in herds have fallen by a fifth in a year, and 20,244 cattle were removed in the year to June 2026, down from a peak of 34,518 in 2018. The plan aims to have a vaccine for cattle in use by 2030 and relies on vaccinating badgers, which can spread the disease, instead of shooting them. No badgers have been culled in 2026, the first year in more than ten years.
Biosecurity Minister Baroness Hayman said no farmer should have to accept the disease as a normal part of their life. Ending the cull was a Labour election promise. Supporters of culling have argued it helps bring cases down faster, while opponents say vaccination is kinder and works in the long run. A new board of farmers and government is due to be set up in 2027.
Explain it like I'm 15
A disease called TB kills thousands of cows every year and costs farmers a lot. The government wants to beat it with vaccines for cows and badgers instead of shooting badgers.
The People's Verdict: What is the best way to tackle TB in cattle?
Farage says the Iran war was a mistake as US voters punish Trump's party
Reform UK leader Nigel Farage has said there is "no question" that the war with Iran was a mistake, and that US President Donald Trump broke promises by starting it.
Mr Farage, who has long been a supporter of Mr Trump, spoke at a press conference on Thursday after the US midterm elections, where the Democrats won Senate seats in states including Texas, Ohio and Iowa. He said the war, now eight months old, had pushed up the price of gas and diesel. US Vice President JD Vance also blamed the conflict for the results, while Mr Trump said the war was largely to blame but that he would do it again.
Prime Minister Andy Burnham, speaking from Antigua, said the US result was a chance to end the conflict and ease the cost of living. The war matters for UK families because it has pushed up oil and energy prices, which is one of the reasons the Bank of England gave for raising interest rates. Read our guide to energy.
Explain it like I'm 15
A UK party leader who usually backs Donald Trump now says the US war with Iran was wrong. That war is one reason petrol and energy bills in the UK have gone up.
UK can now sanction people for war crimes for the first time
Parliament has approved new powers that let the UK put sanctions on people and organisations accused of war crimes, such as attacking civilians or blocking aid.
Sanctions are penalties such as freezing someone's money held in the UK and banning them from travelling here. Since 2020 the UK has been able to use them against people involved in unlawful killing, torture and slavery. The new rules, approved on 4 November and first announced by Foreign Secretary Ed Miliband in September, add serious breaches of the laws of war, blocking humanitarian aid and unlawful detention.
Human Rights Watch welcomed the change as an important step but said the UK must use the powers fairly and consistently, and give people who are sanctioned a proper way to challenge it. It urged the government to use them over conflicts including the West Bank and the Democratic Republic of Congo.
Explain it like I'm 15
The UK can now freeze the money of people accused of war crimes and ban them from coming here. Campaigners say it only works if it is used fairly for every country.
More free books for young children and more support centres for veterans
The government says up to 300,000 more children in England under school age will be given free books, as part of a £15 million scheme announced in the Budget.
The scheme will be run by Arts Council England, with details to follow. The government says a record 72.3% of children reached a good level of development by the end of Reception class, and it wants that to reach 75% by 2028. It has also set aside money so that every primary school has a library by the end of this Parliament. Culture Secretary Lisa Nandy said a good book can be "truly transformative". Teachers can use Population Decides free in class: see our schools page.
Separately, ahead of Remembrance Sunday, the Ministry of Defence says its network of support centres for armed forces veterans, called VALOUR, will grow from 14 to 34 organisations across the UK. £13.2 million is going to 21 organisations, with the new centres due to open by early 2027. The centres help veterans and their families with things like housing, money, health and finding work.
Explain it like I'm 15
More little children will get free books at home to help them get ready for school. Former soldiers, sailors and air force staff will also find it easier to get help near where they live.
Children aged 10 to 18 in England will be offered lessons on fraud and money muling, where criminals use young people's bank accounts to move stolen money. The Home Office says there were 22,000 money muling cases in 2025 and one in five involved someone under 21. The lessons are optional for schools.
The government has shared out £6 million to help local newspapers and news websites, with most grants worth up to £125,000. Media Minister Ian Murray said he would not leave local journalism to collapse. The journalists' union NUJ said many of its members remain worried about their jobs.
The next official inflation figure, for October, is due on 18 November. Check whether last week's Budget leaves you better off.