Troubles ahead for Rishi Sunak? Here are five pitfalls he’ll be dreading

He may yearn for a period of calm, but the prime minister faces some daunting challenges in the stormy months ahead

Having taken on the party leadership after months of economic turmoil, Rishi Sunak always faced a tough task in turning around his party’s fortunes. With the future of cabinet ministers already in doubt and Boris Johnson courting MPs, a series of new hurdles in the months ahead will make life even harder for the prime minister.

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Number of EU students enrolling in UK universities halves post-Brexit

Data shows sharp decline in students from Italy, Germany and France with Brexit seen as primary deterrent

The number of EU students enrolling in British universities has more than halved since Brexit – with sharp declines in scholars from Italy, Germany and France, figures reveal.

Brexit is seen as the primary deterrent, with home fees and student finance no longer available to EU students who do not already live in the UK with settled or pre-settled status.

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Eurostar trains forced to run with empty seats due to Brexit passport rules

About 350 out of 900 seats normally left unsold on the first services between London, Paris and Brussels

Peak time Eurostar trains are daily forced to run across the Channel with hundreds of empty seats because border police cannot process passports quick enough.

About 350 out of 900 seats are normally left unsold on the first services between London, Paris and Brussels despite “huge demand” for the greenest form of international travel, Eurostar bosses said.

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Labour will reconnect ‘tarnished UK’ with European allies, says Lammy

Shadow foreign secretary to mark out diplomatic mission of a future Labour government in landmark speech

Labour will make closer cooperation with Europe across security, trade and foreign policy a central plank of a plan to reconnect “a tarnished UK” with its closest allies, David Lammy, the shadow foreign secretary, will say in a landmark speech designed to mark out the diplomatic mission of a future Labour government.

Addressing the thinktank Chatham House on Tuesday, he will say the Foreign, Commonwealth and Development Office has not been given a clear set of goals post-Brexit. “Ideological leadership and reckless choices have left Britain increasingly disconnected from its closest allies, an economy in crisis, and a tarnished international reputation.”

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UK will be 15 years late in hitting £1tn annual export target, figures show

Exclusive: Forecasts predict exports will fall to £707bn next year and target will not be reached until 2035

Ministers have been accused of leaving a “record of failure and broken promises” as internal forecasts show Britain will be 15 years late in achieving its £1tn annual export target after being hit by Brexit.

Projections from the Department for International Trade (DIT) show the value of UK exports will not reach £1tn until 2035, based on current trends, with the total due to fall to £707bn next year.

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Leo Varadkar admits regrets over Northern Ireland protocol

Ireland’s taoiseach regrets Brexit arrangement imposed without agreement of unionists and nationalists

Ireland’s taoiseach, Leo Varadkar, has said he regrets that the Northern Ireland protocol he agreed with Boris Johnson to end a Brexit impasse was signed without the agreement of unionists and nationalists.

The admission came as the latest deadline to restore powersharing in Northern Ireland passed with the Democratic Unionist party continuing to refuse to take part in protest against the protocol.

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Brexit exodus helps drive record number in EU banks paid €1m-plus

Data shows UK banks losing well-paid staff, as Italy, France and Spain make up 70% of rise in EU top earners

A record 1,957 bankers across Europe earned more than €1m (£878,000) last year, according to data that shows the scale at which some of the best-paid jobs in Britain have moved from London to the EU since Brexit.

The European Banking Authority disclosed on Thursday that the number of bankers earning €1m or more a year had increased by more than 40%, from 1,383 in 2020 to 1,957 in 2021. Excluding UK figures, it is the highest number of €1m-plus European bankers since the EBA began collecting the data in 2010.

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UK to again hold talks with EU to break Northern Ireland Brexit impasse

Foreign secretary James Cleverly meeting EC’s Maroš Šefčovič on Monday for second time in week

The UK foreign secretary, James Cleverly, and the European Commission’s vice-president, Maroš Šefčovič, are to meet for the second time in a week as part of a renewed push to end the dispute over Brexit trading arrangements in Northern Ireland.

They will have a “stock-taking” meeting on Monday afternoon and while there is optimism a deal can be done, insiders have cautioned it is a low-key meeting and will not result in a fundamental breakthrough.

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UK to further delay calling Northern Ireland election as Brexit talks continue

EU sources say progress in protocol dispute is slow despite growing momentum

The UK government is to further delay calling an election in Northern Ireland to give Brexit talks a chance.

Senior EU sources said “slow progress” was being made in talks between the UK and Brussels, dampening hopes of a breakthrough by the end of January on the protracted dispute over the Northern Ireland protocol.

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NI protocol: UK and EU agree deal on trade data sharing

Agreement provides real-time information on goods going from Great Britain to Northern Ireland

The UK and the EU have reached an agreement on access to a new British database providing real-time information on goods going from Great Britain to Northern Ireland, in the first sign of progress in talks over the controversial Brexit protocol.

The foreign secretary, James Cleverly, and the European Commission vice-president, Maroš Šefčovič, described a meeting in London today as “cordial and constructive” in a joint statement.

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NHS recruiting from ‘red list’ countries after Brexit loss of EU staff, says report

Specialisms such as dentistry have shortages and EU exit still causes issues with medicines in Northern Ireland, thinktank finds

NHS trusts in England have increased recruitment from low-income “red list” countries to make up for the post-Brexit loss of EU staff, despite a code of practice to safeguard health services in those developing countries.

A report by the Nuffield Trust thinktank also identified shortages in vital specialist areas since Brexit, including dentistry, cardiothoracic surgery and anaesthesiology.

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German minister calls for solution to Northern Ireland protocol deadlock

Annalena Baerbock makes appeal as she holds talks in London with UK foreign secretary James Cleverly

Disputes over implementation of the Northern Ireland protocol have become “the achilles heel” of the EU’s relations with the UK, the German foreign minister said on Thursday as she held talks with her UK counterpart in London.

Annalena Baerbock’s appeal to find a solution to the deadlock over the protocol came during wide-ranging and much delayed talks with James Cleverly in London, which also covered the war in Ukraine and the state of Anglo-German relations.

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A centrist pitch from Keir Starmer means he will need to show how he differs from Sunak

Labour will not ‘spend its way out of the mess’ but will a more pragmatic approach persuade the core support the party still stands for something?

Keir Starmer was looking assured, shirt sleeves rolled up and cracking jokes, as he stood in front of a giant orange robotic arm in an east London design lab to make his new year speech.

Just 24 hours earlier Rishi Sunak had given his own address on the state of the nation at the building next door, prompting the Labour leader to quip: “I won’t tell the prime minister where I’m going on holiday this year just in case I find him there as well.”

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Disaster response charity enlisted to aid drivers stuck in UK queues for Channel

Exclusive: military veterans’ group RE:ACT gets £200,000 yearly contract to ensure welfare of lorry drivers gridlocked in Kent

The government has signed a £200,000-a-year contract with a disaster response charity established by the former head of Britain’s armed forces to help drivers stuck in lorry queues in Kent.

The Department for Transport has enlisted RE:ACT, which uses military veterans to distribute humanitarian aid in war zones and following natural disasters, amid concerns over driver welfare.

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Brexit: Northern Ireland protocol ‘perhaps a bit too strict’, says Varadkar

Irish PM says he understands unionists’ concerns and he will be ‘flexible and reasonable’ on matter

The Irish prime minister, Leo Varadkar, has said mistakes were made on all sides in the handling of Brexit, vowing to be “flexible and reasonable” when attempting to solve issues with the Northern Ireland protocol.

“One thing I have said in the past is that, when we designed the protocol, when it was originally negotiated, perhaps it was a little bit too strict,” the taoiseach said, speaking in Dublin.

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UK government might block Scottish gender recognition reform bill – as it happened

Scottish secretary hints that Westminster may use rare power to block new law which removes need for diagnosis of gender dysphoria for gender recognition certificate

At the Scottish parliament Nicola Sturgeon, the first minister, is taking questions. Douglas Ross, the Scottish Conservative leader, asks about the gender recognition reform (Scotland) bill and amendments rejected by the Scottish government. He says the bill would allow a man standing trial for raping a woman to force his victim to refer to him as a woman, not a man, and he asks Sturgeon why she voted against an amendment that would have prevented this.

In response, Sturgeon says many amendments have been rejected in the past days. She says where amendments were rejected, it was often because there were alternative ways to add safeguards to the bill. These new safeguards covered sex offenders, she says.

Health and care is under huge strain in the run-up to Christmas. These figures suggest there is absolutely no slack in the system, which is dangerously close to overheating completely.

A key part of the problem is that the vast majority of hospital beds are full – around 95% – including with thousands of patients fit to be discharged. The lack of community and social care means they’ll be spending this Christmas in hospital.

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Three-quarters of UK firms say Brexit deal has not boosted business

British Chamber of Commerce present government with urgent recommendations as members report struggling to sell into EU

More than three-quarters of firms say the government’s post-Brexit trade deal with the EU has not helped them to expand their business in the last two years despite promises that it was an “oven-ready” deal.

A survey by the British Chambers of Commerce (BCC) has prompted the business lobby group to present the government with five urgent recommendations for enhancing the agreement, which has left many exporters struggling to sell into the EU under the current terms.

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Tories ‘at risk from rightwing insurgency’ warns donor Lord Cruddas

Peer says Conservatives no longer party of centre right and are threatened by Reform UK, Brexit party successor, if Nigel Farage takes leadership

The Conservative party is under threat from a rightwing insurgency after a “drag to the left” under Rishi Sunak, one of its biggest recent donors has warned, amid growing tensions on the Tory right.

Peter Cruddas, the peer who has given the party more than £3.5m, said the Conservatives were “no longer a centre-right party” under Sunak, adding that he refused to back it financially until it changed course.

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Rishi Sunak says not to expect imminent breakthrough in talks to resolve Northern Ireland protocol issues – UK politics live

Prime minister says he is ‘committed’ to fixing issues but says there is no deadline on talks

In his latest column, Simon Jenkins argues that instead of fighting for the centre ground, Keir Starmer should look to the radical changes pushed through under Harold Wilson.

Wes Streeting has declined to say whether a Labour government would agree to a pay rise for nurses.

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MoD to revive Belfast shipbuilding with contract for three naval vessels

Rishi Sunak announces £1.6bn contract led by shipyard Harland and Wolff that will create 900 jobs in Belfast

Shipbuilding is to be revived in Belfast after 20 years as part of a £1.6bn Ministry of Defence contract for three new naval vessels, Rishi Sunak has announced.

A consortium led by the shipyard Harland and Wolff has secured the preferred bidder status which will create 1,200 jobs across three companies, 900 of which will be in Belfast.

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