Bank of England Holds Rates at 3.75%, but Three Members Wanted a Rise
The Bank of England kept its base rate at 3.75% on 30 July, the fifth hold in a row, after a meeting that ended on 29 July. The vote was closer than the headline suggests: six members backed the hold, while three - Megan Greene, Catherine Mann and Huw Pill - voted to raise the rate to 4% to lean against still-sticky services inflation.
For borrowers, a hold means no automatic change to tracker or standard variable mortgages this month. Fixed-rate deals move on market expectations rather than the base rate itself, and average two- and five-year fixes have edged up to around 5.6%. The next decision is on 17 September.
Source: Bank of England - July 2026 minutes | Related: Real Cost of Living tool
John Healey Takes Over as Chancellor Ahead of an Autumn Budget
The reshuffle that followed Andy Burnham becoming Prime Minister has settled who runs the Treasury: John Healey is the new Chancellor, replacing Rachel Reeves. His first Budget is expected this autumn, though no date has been confirmed; recent Budgets have landed in late October or November.
The backdrop matters for your own planning. The government has committed to extra defence spending and to cutting VAT on household electricity from October, so the Budget has money to find, and reports suggest it may be combined with a full spending review. Nothing is decided yet, but this is the fiscal event to watch.
Source: CNBC - the UK's new finance minister | Related: Sole Trader vs Limited Company guide
Your Second Payment on Account Is Due Today
If you are in Self Assessment and pay through payments on account, the second instalment for the 2025/26 tax year is due today, 31 July. Each instalment is normally half of last year's tax bill, paid in advance. Miss it and HMRC charges late-payment interest from 1 August, currently 7.75% a year (the base rate plus 4 percentage points).
You can spread the cost with a Time to Pay arrangement online, and if your income has fallen you can ask HMRC to reduce the payment - but guess too low and interest applies on the shortfall. Scottish taxpayers pay Scottish rates on the underlying bill.
Source: GOV.UK - Self Assessment payment services | Related: Self-Assessment Tax Bill guide, Self-Employed Tax Calculator
The Hold Keeps Real Returns on the Table for Savers
With the base rate steady and inflation at 2.6%, cash savers can still beat inflation with room to spare. As at 30 July, the best easy-access ISA paid about 4.66% and the best one-year fixed ISA about 4.70%, and roughly 81% of cash ISAs on the market were paying above inflation.
Rates like these do not last, and providers trim them quickly when a cut starts to look likely. The three-way split on the committee is a reminder that the next move is not certain, so if you hold cash it is worth checking your rate against the best buys.
Source: Moneyfacts - best cash ISA rates | Related: Compound Interest guide
Key Dates
31 July 2026 (Friday) - second Payment on Account due for 2025/26 Self Assessment.
7 August 2026 (Friday) - first Making Tax Digital quarterly update due for those earning over £50,000.
26 August 2026 (Wednesday) - Ofgem confirms the October to December energy price cap.
17 September 2026 (Thursday) - next Bank of England interest-rate decision.