Reeves is due to deliver a big set piece speech in London today \u2013 the Mais Lecture, at Bayes Business School. And she\u2019s expected to identify innovation and AI, closer ties with Europe, and regional growth as three big opportunities for economic growth in the UK.<\/p>\n
The annual <\/a>Mais<\/a> <\/a>Lecture<\/a> is a set-piece event for central bank governors, chancellors and prime ministers to set out their economic philosophy.<\/p>\n This will be the chancellor\u2019s second Mais Lecture \u2013 in 2024, Reeves warned that the UK was entering an \u201cage of insecurity\u201d marked by stalling growth, stagnant living standards, political turbulence and global shocks.<\/p>\n Two years on, and plenty of global shocks later, Reeves will today pledge that the UK will adopt AI faster than G7 rivals, and announce \u00a32.5bn of funding for AI and quantum computing.<\/p>\n In her lecture at lunchtime today, the chancellor is expected to say:<\/p>\n double quotation mark\u201cIn this changing world, Britain is not powerless. We can shape our own future. Our method is stability, investment and reform \u2013 through an active and strategic state.<\/p>\n \u201cToday, I am making three big choices on the greatest growth opportunities for Britain in the decade to come: growth in every part of Britain, AI and innovation, and a deeper relationship with the EU.<\/p>\n \u201cOur plan is clear. To build for growth, to champion innovation, and to make Britain the place where the industries of the future are created.\u201d<\/p>\n And on AI, she will argue that Britain \u201ccannot afford to stand still\u201d in a world defined by technological change.<\/p>\n I\u2019ll be at the Bayes Business School later today for full coverage of the lecture.<\/p>\n The agenda<\/p>\n 10am GMT: ZEW Economic Sentiment Index<\/p>\n 1.30pm GMT: The Mais Lecture 2026, delivered by Rachel Reeves<\/a>, Chancellor of the Exchequer.<\/p>\n Share<\/a><\/p>\n Key events<\/p>\n Show key events only<\/p>\n Please turn on JavaScript to use this feature<\/p>\n Moneyfacts: ‘Trumpflation’ adds almost \u00a3800 to average annual mortgage bill<\/p>\n The spectre of \u2018Trumpflation\u2019 is looming over Rachel Reeves\u2019s Mais lecture today.<\/p>\n The jump in energy prices, and expectations of higher inflation, have driven up mortgage rates since the Iranian war began.<\/p>\n Data provider Moneyfacts has reported that this has added almost \u00a3800 to average annual mortgage bill in the last two weeks.<\/p>\n They report:<\/p>\n Average 2-year fix has risen from 4.83% at the start of March to 5.28% today. It\u2019s highest since April 2025.<\/p>\n Average 5-year fix has risen from 4.95% at the start of March to 5.32% today. It\u2019s highest since February 2025.<\/p>\n Adam French, head of consumer finance at Moneyfacts, said:<\/p>\n double quotation mark\u201cWar in the Middle East has added almost \u00a3800 to a typical annual mortgage bill in just two weeks, which will be unwelcome news for anyone currently seeking a fixed rate deal.<\/p>\n \u201cThe average two-year fixed rate has jumped from 4.83% at the start of March to 5.28% today \u2013 its highest level since April 2025. The average five-year fix has risen from 4.95% to 5.32%, now at its highest since February 2025. For a borrower with a \u00a3250,000 mortgage over 25 years, that equates to paying \u00a3788 more per year on a two-year fix, or \u00a3651 more on a five-year deal compared to just a fortnight ago.<\/p>\n \u201cChoice continues to fall as lenders pull deals and reprice in response to rapidly rising funding costs with 689 fewer mortgage products available since 9 March \u2013 almost a tenth of the market. Borrowers may need to brace for further volatility in the weeks ahead as the global economy braces for a \u2018Trumpflation\u2019 wave flowing from the US and Israel led action in Iran.\u201d<\/p>\n Share<\/a> Oil and gas prices have risen again after Iran carried out attacks on production facilities for the first time since the start of the war with the US and Israel.<\/p>\n Brent crude, the international benchmark oil price, is up 4% at $104.17 a barrel this morning, nearly 50% higher than levels before the war began on 28 February. European wholesale gas prices are up 3% to \u20ac52.45 a megawatt hour, compared with about \u20ac30 before the war.<\/p>\n For the first time, Iran successfully targeted oil and gas production facilities, rather than just refineries, terminals and storage.<\/p>\n The United Arab Emirates said a drone struck the Shah natural gasfield \u2013 one of the largest in the world \u2013 on Monday and set it on fire. Operations remained suspended on Tuesday while officials assessed the damage.<\/p>\n Share<\/a><\/p>\n The UK government\u2019s push to adopt artificial intelligence systems faster than the rest of the G7 could raise concerns that Britain could face an early wave of AI-related job losses.<\/p>\n But Treasury minister Dan Tomlinson has tried to downplay to prospect of job losses caused by AI, arguing that it\u2019s important to embrace new technologies rather than run away from them.<\/p>\n Asked whether he accepted AI adoption would lead to job losses, Dan Tomlinson told Sky News:<\/p>\n double quotation mark\u201cIn the vast history of the UK economy, when big shocks come, when you have the Industrial Revolution, or big changes in the technology that people use, there are changes to the amount of jobs that happen in the economy, or the types of jobs that we have, you don\u2019t see job losses overall.<\/p>\n \u201cAnd actually, if you look at the next five years, the Office for Budget responsibilities say that employment is going to increase in every single year of their forecast.\u201d<\/p>\n Share<\/a><\/p>\n Overnight, the Reserve Bank of Australia became the first central bank to raise interest rates since the Iran war began.<\/p>\n The RBA lifted its cash rate target to 4.1%, back to where it was in February last year.<\/p>\n Michele Bullock, the RBA governor, said strong growth in employment and spending had kept upward pressure on prices and the war in Iran would only worsen the problem.<\/p>\n double quotation mark\u201cHigh petrol prices will add to inflation, but they\u2019re not the reason for today\u2019s decision.<\/p>\n \u201cInflation was already too high.\u201d<\/p>\n It\u2019s a busy week for monetary policy decisions, with the Bank of England, the US Federal Reserve, the European Central Bank and the Bank of Japan all setting interest rates this week, along with other central bank decisions in Canada, Brazil, Russia, Switzerland and Sweden.<\/p>\n Share<\/a>Reeves to push for “Silicon Valley of Europe\u201d in Oxford-Cambridge corridor<\/p>\n Chancellor Rachel Reeves<\/a> will also announce she is ready to use compulsory purchase powers to force through the building of \u201cthe Silicon Valley of Europe\u201d in a corridor between Oxford and Cambridge, the Financial Times are reporting.<\/p>\n According to the FT<\/a>:<\/p>\n double quotation markReeves will tell landowners they will not be allowed to stand in the way of the project, which she is putting at the centre of a revamped growth strategy alongside closer relations with Europe and investments in AI.<\/p>\n The chancellor would say in her Mais economics lecture that the government will intervene where landowners are deemed to be blocking developments or insisting on unreasonable demands, government officials said.<\/p>\n Share<\/a><\/p>\n Updated at\u00a004.17 EDT<\/p>\n UK building materials supplier Travis Perkins has cautioned this morning that it faces a \u2018subdued\u2019 trading environment.<\/p>\n In its full year results for 2025, Travis Perkins reported that the weakness seen in the final three months of the year has continued in 2026, saying;<\/p>\n double quotation markThe trading environment since the start of the year has remained subdued and this reflects a continuation of the weak UK construction activity figures reported for the final quarter of 2025.<\/p>\n The company, which provides building materials to professional builders and tradespeople, also reported a drop in adjusted operating profit to \u00a3133m, from \u00a3152m in 2024, \u201creflecting lower margins in Merchanting\u201d.<\/p>\n Share<\/a>Reeves told to stop blaming Brexit for economic woes<\/p>\n There\u2019s already a backlash to the chancellor\u2019s Mais speech, before she\u2019s even taken the lecturn at Bayes Business School.<\/p>\n The opposition Conservative parry is unhappy that Reeves is expected to blame Brexit for the UK\u2019s poor economic performance.<\/p>\n Shadow chancellor Sir Mel Stride has accused the chancellor and prime minister of wanting \u201cto row back on Brexit\u201d, Sky News report<\/a>.<\/p>\n Stride added:<\/p>\n double quotation mark\u201cLabour are desperate to blame anyone but themselves for their economic failures.\u201d<\/p>\n Reeves could cite the Office for Budget Responsibility\u2019s long-term forecast that Brexit will reduce the UK\u2019s long-run productivity by 4% relative to remaining in the EU.<\/p>\n Critics of the chancellor, though, could point to her tax rises on employer, which appear to be pushing up unemployment.<\/p>\n Share<\/a><\/p>\n Updated at\u00a003.56 EDT<\/p>\n \u00a32.5bn boost for AI and quantum<\/p>\n Here\u2019s a breakdown of the \u00a32.5bn funding package for artificial intelligence and quantum computing in the UK:<\/p>\n A \u00a3500m Sovereign AI Fund is set to be launched in April at Wayve, to give British companies access to funding, compute and other support<\/p>\n \u00a32bn to upgrade the UK\u2019s quantum capabilities, including a procurement programme worth up to \u00a31 billion to procure commercial-scale quantum computers.<\/p>\n An extra \u00a313.8m will be injected into the UK\u2019s 5 National Quantum Research Hubs<\/p>\n A further \u00a312m for a edicated commercialisation skills centre to help quantum researchers translate their work into \u2018real-world impact\u2019<\/p>\n Yesterday, technology secretary Liz Kendall said the government hoped to retain homegrown quantum startups, engineers and researchers rather than lose them to competing countries.<\/p>\n Share<\/a>Introduction: Reeves to call for rapid AI adoption and deeper ties with EU<\/p>\n Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.<\/p>\n While the UK economy is being buffeted by the energy shock from the Iran war<\/a>, chancellor Rachel Reeves is hoping that rapid take-up of artificial intelligence and deeper ties with the European Union can deliver growth.<\/p>\n Reeves is due to deliver a big set piece speech in London today \u2013 the Mais Lecture, at Bayes Business School. And she\u2019s expected to identify innovation and AI, closer ties with Europe, and regional growth as three big opportunities for economic growth in the UK.<\/p>\n The annual <\/a>Mais<\/a> <\/a>Lecture<\/a> is a set-piece event for central bank governors, chancellors and prime ministers to set out their economic philosophy.<\/p>\n This will be the chancellor\u2019s second Mais Lecture \u2013 in 2024, Reeves warned that the UK was entering an \u201cage of insecurity\u201d marked by stalling growth, stagnant living standards, political turbulence and global shocks.<\/p>\n Two years on, and plenty of global shocks later, Reeves will today pledge that the UK will adopt AI faster than G7 rivals, and announce \u00a32.5bn of funding for AI and quantum computing.<\/p>\n In her lecture at lunchtime today, the chancellor is expected to say:<\/p>\n double quotation mark\u201cIn this changing world, Britain is not powerless. We can shape our own future. Our method is stability, investment and reform \u2013 through an active and strategic state.<\/p>\n \u201cToday, I am making three big choices on the greatest growth opportunities for Britain in the decade to come: growth in every part of Britain, AI and innovation, and a deeper relationship with the EU.<\/p>\n \u201cOur plan is clear. To build for growth, to champion innovation, and to make Britain the place where the industries of the future are created.\u201d<\/p>\n And on AI, she will argue that Britain \u201ccannot afford to stand still\u201d in a world defined by technological change.<\/p>\n I\u2019ll be at the Bayes Business School later today for full coverage of the lecture.<\/p>\n The agenda<\/p>\n 10am GMT: ZEW Economic Sentiment Index<\/p>\n 1.30pm GMT: The Mais Lecture 2026, delivered by Rachel Reeves<\/a>, Chancellor of the Exchequer.<\/p>\n![\"Julia](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/03\/Julia-Kollewe,-L.png\")
Julia Kollewe<\/p>\n