Public Affairs monitoring for week ending 24 July 2026

This is a weekly political monitoring note from the Public Affairs team. This note is also shared with members of the Public Affairs Working Group.

Iran conflict drives oil above $100 a barrel

The conflict between the US and Iran has entered its 13th consecutive night of US air strikes, with attacks continuing against Iranian military targets across the country. Iran has responded with attacks on US bases in the Gulf and threats to international shipping routes.

The escalation has increased concerns over global energy supplies, with oil prices rising above $100 per barrel for the first time since May. Brent crude closed at $100.69 per barrel on 23 July, up 7% on the day, while U.S. benchmark WTI settled at $92.19, as markets reacted to fresh attacks on oil shipping in the Red Sea.

US imposes new tariffs on major trading partners

The Trump administration has introduced new tariffs of between 10% and 12.5% on imports from around 60 countries, including the UK, EU, China, Canada and Mexico, citing concerns over the enforcement of forced labour import restrictions. The measures came into force on 24 July and replace the previous 10% global tariff regime that had been struck down by the US Supreme Court.

The UK government said there is no change to the tariff rate facing UK exports, with UK goods continuing to be subject to a 10% tariff under the UK-US trade agreement. The new measures are likely to increase trade uncertainty for global supply chains and international businesses trading with the US.

Prime Minister Andy Burnham cuts business rates for pubs without introducing a warehouse tax

Prime Minister Andy Burnham announced a 20% reduction in business rates for pubs, clubs and live music venues on 23 July, to be introduced from April 2027.  While he had previously floated a levy on “online tech companies and their warehouses” to pay for such measures, the Prime Minister and Chancellor said that it would actually be funded “through reviewing reliefs for businesses that do not make a positive contribution to local communities, such as vape shops,” and a “crack down on businesses that sell through online marketplaces but do not comply with their tax obligations.”

The government had received briefings in advance that warehouses underpin activity across the economy, and only 11% of warehousing is used for online retail.

Other announcements in Burnham’s first week as Prime Minister focused on cost of living and ending homelessness.

There is a live consultation on extending VAT online marketplace liability to combat non-compliance, open until 8 August.

Prime Minister Andy Burnham announces Cabinet and key ministerial positions

Since becoming Prime Minister on 20 July, Andy Burnham has appointed his Cabinet and junior ministers. This includes John Healey MP as Chancellor, Jonathan Reynolds MP as Secretary of State for Business, Innovation, Science and Trade (BIST), Heidi Alexander MP remaining as Transport Secretary, and Miatta Fahnbulleh MP becoming Secretary of State for Energy Security and Net Zero. The new Department for Business, Innovation, Science and Trade combines business and trade responsibilities with most functions previously held by the Department for Science, Innovation and Technology.

Regarding other ministerial roles, Lord Hendy, Keir Mather MP and Simon Lightwood MP have all remained in the Department for Transport. Chris McDonald stays as a minister in BIST; Baroness Smith remains in the Department for Education and Department for Work and Pensions; Michael Shanks MP remains a minister in the Department for Energy Security and Net Zero; and Matthew Pennycook MP remains a minister in the Ministry of Housing, Communities and Local Government. However, their specific briefs have not yet been confirmed.

Logistics UK has welcomed Burnham’s appointment, Reynolds return as Business Secretary and has sent letters to the new Prime Minister and relevant ministers.

MPs call for National Insurance cut for under-25s to tackle youth unemployment

The Work and Pensions Committee published its report “Youth Employment, Education and Training” on 22 July, calling on the government to cut employer National Insurance contributions for workers under 25 to tackle youth unemployment. MPs recommended extending the existing National Insurance threshold available for under-21s and apprentices under 25 to all employees under 25, arguing it would encourage businesses to create more entry-level jobs.

The Committee said there is “overwhelming evidence” that rising employment costs are reducing recruitment opportunities for younger workers, particularly in sectors such as retail and hospitality. The report also calls for a cross-government Youth Employment Strategy and longer-term funding for the government’s Youth Guarantee programme.

Also this week

Government

• Prime Minister Andy Burnham has announced on 24 July that regional mayors will play a formal role in national economic decision-making through a revived National Economic Council, placing devolution and regional growth at the centre of government policy. The council’s first meeting will bring together ministers and mayors to shape economic priorities and support the government’s growth agenda.
• The UK-India Free Trade Agreement (FTA) entered into force on 15 July, reducing tariffs and improving market access for businesses trading with India. The government published guidance for businesses on accessing the agreement’s benefits, including rules of origin requirements and procedures for claiming preferential tariff rates.
• The government laid regulations on 16 July for the Carbon Border Adjustment Mechanism (CBAM), providing further detail on registration, reporting, carbon price relief, record-keeping requirements and the calculation of CBAM charges. Alongside regulation, HMRC published updated guidance and supporting documents to help businesses understand their obligations and prepare for implementation of the scheme.

Parliament

• The Business and Energy Committee launched an inquiry on 24 July into the impact of high energy costs on UK businesses, industrial decarbonisation and economic growth. The Committee is seeking evidence on whether existing support schemes are sufficient to support electrification, reduce energy costs and incentivise investment in net zero, with submissions closing on 18 September.
• Logistics UK submitted evidence on 23 July to the Transport Committee’s inquiry into the draft Heathrow Expansion National Policy Statement, arguing that the government’s appraisal does not adequately account for Heathrow’s role as the UK’s largest air freight gateway and the economic benefits associated with international trade and high-value cargo movements.
• The Civil Aviation (Consumer Protection and Regulatory Reform) Bill completed its Third Reading in the House of Lords on 20 July. Peers discussed consumer protections, accessibility for disabled passengers, airport slot allocation and regional air connectivity, before the Bill progressed to the House of Commons.
• The Transport Committee launched a call for evidence on 21 July regarding how transport affects young people’s ability to access employment, education and training. The inquiry will examine issues including public transport availability, driving licence access, transport affordability and the role of employers and transport providers in reducing barriers to work for young people. The inquiry is accepting evidence until 16 October.

Devolved, regional and local

• The Scottish Government announced almost £2 million of funding to support the decarbonisation of the haulage sector, including £1 million for its SME Fleet Analysis Support Fund and £900,000 for a Zero Emission Heavy Duty Vehicle Skills Challenge Fund. This aims to help operators plan the transition to zero-emission HGVs and address skills needs.
• Scottish Labour leader Anas Sarwar announced on 22 July that he will step down as an MSP and party leader to become Minister of State for Trade, in Prime Minister Andy Burnham’s government. Sarwar will enter the House of Lords, with Jackie Baillie serving as acting leader pending a leadership election. As Sarwar was elected via the Glasgow regional list, there will be no by-election, and former MSP Monica Lennon is expected to return to Holyrood as his replacement.
• The Northern Ireland Assembly’s Committee for Infrastructure launched a Call for Evidence on the Harbours Bill, which aims to modernise the legislative and governance framework for Northern Ireland’s Trust Ports. The Committee is seeking views on the Bill’s objectives, provisions and potential impacts, with submissions closing on 2 September 2026.
• Transport for London (TfL) published its first-year review of the Silvertown Tunnel on 23 July, finding the scheme has reduced congestion and improved network resilience, with peak journey times approaching the Blackwall Tunnel falling by up to 58%. TfL also reported improved air quality and said the tunnel’s dedicated bus and HGV lane has improved reliability for freight and public transport movements.

Coming up

• Parliament has risen for Summer Recess and will return on Tuesday 1 September.
• On Tuesday 28 July, Logistics UK members, in partnership with the Department for Business and Trade (DBT), will attend a virtual round table with the delegation from Kyiv International Airport, led by General Director Oleh Zakorchemnyi.