Monetary Policy: Bank of England chief Andrew Bailey said policymakers can “tolerate” inflation temporarily above the 2% target to support a soft economy, warning the tolerance would end if second-round effects emerge as energy-driven prices push inflation higher. Cost of Living & Tax: Rachel Reeves’ £300m “summer” package is forecast to shave about 0.2 points off CPI inflation, but economists warn it may not fully offset wider pressures. Labour & Wages: Labour ministers faced fresh pressure over whether the national living wage will be extended to all over-18s before the next election, with hints there may be no fixed timeline. Work & AI: A TUC-backed IPPR report urges workers to gain bargaining power over AI adoption, calling for mandatory consultation and a “worker support levy” to share benefits fairly. Youth Unemployment: New analysis highlights a “lost generation” risk as nearly a million young people are NEET, with Black youngsters facing the highest NEET rates. Asylum Row in Blackpool: Reform UK claims Serco is recruiting landlords and pushing above-market deals; Blackpool Council and its MP call the claims misinformation and say no further dispersal is planned. Health Service Delivery: NHS England expands the GIRFT MSK “super clinics” model nationally to cut long waits and link care with getting people back to work. Prisons (Northern Ireland): NI prison population has risen by almost 50% in five years, with overcrowding driving more assaults and drug seizures. Defence & Security: Dstl says the UK has demonstrated a high-speed optical downlink from space, pointing to faster, more secure military communications. International: NATO condemned a Russian drone strike in Romania that injured people, marking a rare hit on a densely populated NATO area.