UK Prime Minister Andy Burnham has approved the use of British bases for some US strikes on Iran, according to reports, signaling a significant shift in defense policy coordination with Washington. The authorization follows a conversation with US President Donald Trump, where the leaders discussed the demining of the Strait of Hormuz and broader military cooperation. This move marks a departure from the stance of former Prime Minister Keir Starmer, who initially refused such requests before later granting approval.

Strategic Alignment

The decision underscores the strengthening relationship between the UK and the US under Burnham's leadership. Trump had previously commended Burnham on Truth Social, highlighting an "outstanding relationship" and expressing optimism about future collaboration on matters of mutual interest. The approval for base usage is seen as a direct outcome of these renewed diplomatic channels.

Key Discussion Areas

During their call, Trump and Burnham covered several critical topics, including North Sea Oil, trade, and military alliances. The demining of the Strait of Hormuz emerged as a priority, given its strategic importance for global oil shipments. Burnham's assurance of London's support for this initiative has paved the way for closer operational ties.

Leadership Transition

Burnham took office on Monday, pledging economic reforms and a reset in UK-US relations. His swift approval of the US request contrasts with Starmer's tenure, which was marked by tensions over immigration and energy policy. Trump had previously criticized Starmer's handling of these issues, predicting his resignation. The new administration's approach suggests a more aligned stance with US strategic interests in the region.

UK credit card balances returned to record high levels in April 2026 as spending increased and repayment rates declined, indicating that persistent inflation and energy prices are straining household budgets. According to the FICO UK Credit Card Market Report, average active balances rose 1.3% month-on-month to £1,950, matching the previous peak reached in December 2025. While spending followed typical seasonal patterns with a 10% month-on-month increase to an average of £815, the percentage of overall balance paid fell for the third consecutive month, dropping 1.4% to 32.6%.

The decline in repayment rates has driven up overall debt levels and contributed to a deterioration in payment performance. The percentage of customers missing two payments rose 1.9% month-on-month and 16.3% year-on-year. More critically, the percentage of customers missing three payments increased 6.2% month-on-month and 17.3% year-on-year, marking the most significant annual deterioration across any delinquency category. This shift reverses the improvements in payment behavior observed during 2025.

Balances on accounts with missed payments were higher across all delinquency categories compared to the same month last year. For accounts with one missed payment, the average balance rose 6.7% year-on-year to £2,480. Average balances for accounts with two and three missed payments also increased, reaching £2,855 and £3,325 respectively, representing year-on-year increases of 0.5% and 3.4%.

Another indicator of weakened affordability is the sharp rise in overlimit accounts, which increased 14.1% month-on-month and 4.6% year-on-year. Although the average overlimit spend of £95 was 5.9% lower than in March, it remained 5.5% higher than the previous year. FICO noted that the monthly growth in spending was not sufficient to exceed 2025 levels, suggesting that recent improvements are likely seasonal rather than indicative of stronger financial health.

Key Trend Indicators – UK Cards April 2026

Source: FICO