News in Review Wednesday 7th January 2026

This week’s News in Review looks at key stories shaping the start of 2026 – interest rates edge lower, tax changes bring relief for farmers, retail footfall surprises and the FTSE breaks new ground.

Key takeaways:

  • The Bank of England cut rates to 3.75%, signalling cautious easing as inflation pressures continue to recede
  • Farmers gain relief as the government raises Inheritance Tax thresholds following industry backlash and sustained protests
  • UK markets opened 2026 strongly, with Boxing Day footfall rising and the FTSE surpassing 10,000