We study the U(2) lattice gauge theory in the pure gauge sector using the simplest action, with determinant and fundamental terms, having the naive continuum limit of SU(2)$times$U(1). We determine part of the phase diagram of the model and find a first-order critical line which goes through the U(1) critical point. We show how to deduce both the order parameter of the first-order transition and the U(2) renormalization group flow from the lattice potential in the determinant and fundamental representations. We give evidence that a Monte-Carlo simulation of the model is indeed consistent with the symmetric SU(2)$times$U(1) continuum limit in the weak coupling pertubative regime.