Category Archives: Rachel Reeves

UK suspends trade talks with Israel as Lammy calls Gaza blockade ‘morally wrong’ and ‘unjustifiable’ – as it happened

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Foreign secretary tells parliament that the Israeli government’s ‘egregious actions and rhetoric’ are isolating the country from its friends and partners. This live blog is closed

The Scottish secretary has said the new UK-EU trade deal provides “12 years of certainty and stability” for the fishing industry, amid criticism from the industry that the government has made too large a concession to the EU on fishing rights.

The Scottish Fishermen’s Federation (SFF) has described the deal as a “horror show”, but Ian Murray said: “I don’t agree with that.”

It gives 12 years of certainty and stability for the industry, it doesn’t change any of the deal that was put in place in 2019, which is 25% more quotas for UK and Scottish trawlers and it gives wide access, of course to the new markets of the EU, in terms of pushing away all that red tape that was there before.

Not one more fish will be taken out of Scottish waters by an EU trawler as part of this deal and that provides that stability and certainty.

We should never trust Keir Starmer. You know, he’s screwing things up domestically, so he gets on the international bandwagon.

He’s selling us out, not just on Brexit, but on Chagos and … we’re hearing all sorts of things about Gibraltar. We’ll hold them to account on this. Where Labour negotiates, Britain always seem to lose.

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Reeves hopes hat-trick of deals shows Britain is open for business

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Impact of agreements on food, energy and defence may not be huge but chancellor believes it will draw investors to UK

Rachel Reeves joked to journalists after Monday’s EU-UK reset that trade deals were coming along “like buses”, given the agreements with India and the US that had also been sealed in the past fortnight alone.

The chancellor described the EU deal as the best that had been secured by any non-member country, but she was also keen to talk about the three successful negotiations as a package.

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No 10 actively investigating winter fuel payment changes as fears grow over voter anger

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Keir Starmer did not deny a rethink of benefit cut to 10 million pensioners blamed for Labour’s electoral losses

Downing Street is actively investigating changes to the controversial winter fuel payment cut over growing concerns about the policy’s deep unpopularity among voters.

No 10 has stepped up its work on reviewing the policy by carrying out internal polling and focus groups on how voters would respond to potential modifications to it.

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UK asking other countries to host ‘return hubs’ for refused asylum seekers, Starmer confirms – UK politics live

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PM on trip to announce increased cooperation against people smugglers alongside Albania’s prime minister, Edi Rama

All Commons Speakers, at least for the past 30 years, have complained about the government making major announcements to the media first, and not to parliament first. But rarely have any of them sounded quite as furious about this as Lindsay Hoyle, who this morning delivered an extended reprimand to the government about this at the start of an urgent question.

The UQ was about plans to limit the use of prison recall – something announced by the justice secretary, Shabana Mahmood, at a press conference yesterday, while the Commons was still sitting. After pointing this out, and reminding MPs that details of the immigration white paper were given to the media extensively, long before the ministerial statement about it was delivered in the Commons on Monday, Hoyle went on to imply that, as well as regularly breaking the ministerial code, ministers were also guilty of hypocrisy. He said:

I note that those who now occupy senior ministerial roles were not slow to complain when the previous government made major policy announcements outside this house.

I will continue to uphold and defend the rights of this house, the rights of backbenchers, to be here, and hear it first, the most important announcements of government policy, and the right of honourable members to question ministers on those announcements in person.

When Parliament is in session, the most important announcements of government policy should be made in the first instance in Parliament.

If the government is not going to take the ministerial code seriously, who will?

I’ve got to say, I don’t like this. I believe I am here to represent all backbenchers and backbenchers have the right to ask questions. I’m not interested in Sky News or the BBC or political programmes. I’m here to defend all of you. I will continue to defend. Please do not take MPs for granted. It is not acceptable.

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UK interest rates fall to 4.25% as Bank of England announces a quarter-point cut

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Move follows run of downbeat economic data and looks to cushion UK from Trump’s trade war fallout

Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of Donald Trump’s trade war.

The widely expected move from the Bank’s monetary policy committee (MPC), its fourth cut since last August, should lead to cheaper mortgages for homeowners.

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Tuesday briefing: The levers Labour might pull to counter a growing threat from Reform

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In today’s newsletter: Can a partial U-turn on the winter fuel allowance help the party set a new agenda – and keep support for Nigel Farage at bay?

Good morning. After Reform UK’s resounding success in last week’s local elections, Keir Starmer has faced relentless questions over how Labour will change tack to deal with the problem. Now, we may have the beginning of an answer.

On the front page of today’s Guardian, Pippa Crerar and Jessica Elgot report that Downing Street is seriously rethinking the cuts to the winter fuel payment – the policy that above all others summarised Starmer and Rachel Reeves’s shaky start to life in government. While a full reversal is not on the cards, No 10 sources say that the £11,500 threshold over which pensioners are no longer eligible for the allowance could be increased in the autumn.

Israel-Gaza war | Israel is to expand its military operations in Gaza in the coming weeks, with the aim of “conquering” and establishing a “sustained presence” in the Palestinian territory, Israeli officials have said.

Film | Donald Trump’s threat to impose 100% tariffs on movies made outside the US could wipe out the UK film industry, ministers have been warned, as they came under immediate pressure to prioritise the issue in trade talks with the White House.

Charities | Macmillan Cancer Support is to scrap its £14m-a-year specialist advice service, which helps tens of thousands of people every year, in what has been described as a betrayal of vulnerable patients. With the charity’s income falling behind its expenditure, it said that the service was no longer sustainable.

Wildfires | After the warmest start to May on record, a wildfire has destroyed about 5,000 hectares (12,500 acres) of moorland on Dartmoor in Devon. Emergency services were called to the blaze at about 2.25pm on Sunday, and firefighters spent almost 24 hours at the scene before it was extinguished on Monday.

VE Day | The UK marked the 80th anniversary of VE Day with military pomp before large crowds who had gathered in central London. The royal family and war veterans were among the attendees at a 1,300-strong military procession while street parties were held around the UK.

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UK ministers to meet bank bosses over lending to small businesses

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Rachel Reeves concerned that lenders’ restrictions are holding back growth in the SME sector

Ministers will meet bank bosses on Tuesday to discuss how big lenders can support the government’s growth strategy as concerns mount inside Whitehall that small businesses are struggling to access the funds needed to make vital investments.

Senior executives from HSBC, NatWest and Lloyds are expected to explain how they will meet the government’s mission to increase lending after criticism from business groups about the lack of credit available after the pandemic.

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UK politics: Reform UK on course to win in two mayoral contests – as it happened

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Polling predicts victory for party in Greater Lincolnshire and Hull/East Yorkshire with the Greens possibly taking West of England

There are six mayoral elections next week. Two of them are for single-authority mayors (Doncaster and North Tyneside), but the others are for combined-authority mayors (or regional mayors – like metro mayors, but not just covering city regions). Today YouGov has released polling covering all four of these contests and it suggests Reform UK is on course to win two of them easily. And the Green party is narrowly ahead in a third, the poll suggests.

Here are the polling figures.

In theory the Tories should be winning in Lincolnshire as they hold most of the parliamentary seats in the area and have dominated local politics forever. But it’s also the most Reform-friendly part of the country. It contains Richard Tice’s constituency and numerous seats in which they came second. Plus their candidate is a former Tory MP – Andrea Jenkyns, famous for her Boris Johnson obsession and making a middle finger gesture at a crowd outside Downing Street. She is, by all accounts, quite a few sandwiches short of a picnic but, nevertheless, is strong favourite to win. Large chunks of local Conservative parties, including several councillors, have already defected.

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Labour MPs urge Starmer to back youth mobility scheme amid EU trade reset

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More than 60 MPs sign letter calling for time-limited visas for 18- to 30-year-olds to travel freely

Keir Starmer is under pressure from more than 60 Labour MPs to allow thousands of young Europeans to live and work in the UK, a move seen as key to unlocking a more ambitious trade reset with Brussels.

The chancellor, Rachel Reeves, said discussions on a potential scheme were ongoing, in the clearest hint yet that the government is preparing to do a deal.

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Reeves says inflation fall shows ‘plan for change is working’ – UK politics live

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Chancellor says wages are growing faster than prices but acknowledges many are still struggling with the cost of living

A government minister has reiterated the call for the Unite union to accept a deal and end the bin strike in Birmingham.

Speaking on GB News this morning, Lillian Greenwood, parliamentary under-secretary of state for the future of roads, said residents were facing “a completely unacceptable situation”

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UK economy far exceeds forecasts to grow 0.5% in boost to Rachel Reeves

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February GDP rise was bigger than forecast – but impact from Donald Trump’s tariff war is yet to come

The UK economy unexpectedly expanded by 0.5% in February, figures show, in a boost for the chancellor, Rachel Reeves, before an expected downturn sparked by Donald Trump’s tariff war.

The increase in gross domestic product in February was five times larger than the 0.1% that a poll of City economists had forecast, while January’s figure of a modest fall of 0.1% was revised up to 0.0% growth.

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Starmer rejects claim there are ‘strong arguments’ for suspending fiscal rules amid US tariffs – UK politics live

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The PM doubled down on his insistence the government won’t change its fiscal rules, describing them as ‘ironclad’ and ‘non-negotiable’

One person probably more enthusiastic than most about the prospect of Universal opening a theme park in the UK is the Lib Dem leader Ed Davey. He is a great fan of outdoor activity-related photocalls, and he’s been at it again today, and the Gloucester Ski and Snowboarding Centre in Matson, Gloucestershire.

Almost 40 MPs and peers have signed a letter organised by Jeremy Corbyn calling for an independent inquiry into the government’s role in the war in Gaza.

Many people believe the government has taken decisions that have implicated officials in the gravest breaches of international law.

These charges will not go away until there is a comprehensive, public, independent inquiry with the legal power to establish the truth.

Last month, I wrote to the Prime Minister calling for an independent inquiry into the UK’s involvement in Israel’s assault on Gaza.

Today, more than 30 MPs have supported that call.

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UK must improve trade relations with Europe amid US tariff wars, warns Reeves

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Chancellor rules out rejoining customs union but says Britain must bolster post-Brexit trade with partners

Donald Trump’s unfolding trade war makes it even more “imperative” for the UK to improve its post-Brexit trading relations with the European Union, Rachel Reeves has said.

The government has ruled out rejoining the EU customs union, but the chancellor has insisted the UK wants to improve its trade relationship with “partners in Europe”, given the difficulties British firms have found in exporting their products around Europe.

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British Steel could be nationalised as PM and chancellor consider ‘all options’

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Whitehall sources say Starmer and Reeves aligned in seeing steel as of ‘huge strategic importance’

Keir Starmer and Rachel Reeves are actively considering nationalising British Steel in an escalation of plans first revealed in the Guardian last year.

The prime minister said all options were on the table to secure the future of the Scunthorpe plant, which is owned by the Chinese firm Jingye and employs about 3,500 people.

Defended the welfare cuts as being based on “dignity” and criticised the Office for Budget Responsibility for not taking into account possible behavioural changes of people affected by the cuts when assessing the consequences of the policy.

Said threats from foreign powers targeting people in the UK were “growing” and the issue was constantly being raised in international talks. He added: “I think we generally underestimate that threat, and it’s very important we’re alive to it.”

Stepped up his criticism of regulators, telling MPs he was “astonished” by how many there were and saying he was “frustrated” by the barriers they put up.

Called for an inquiry into the killing of 15 aid workers in Gaza and said international law “underpins everything we do bilaterally and multilaterally” when questioned about the conflict in the Middle East.

Said he would speak to the intelligence agencies and the Kyiv government after Volodymyr Zelenskyy, the Ukraine president, said two Chinese citizens had been captured fighting as part of the Russian army.

Said changes to the social care system could come as soon as next year amid a review led by Lady Louise Casey.

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Japan-owned UK glass factory could shut if no buyer found, risking 250 jobs

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Closure of Nippon Electric Glass plant would put further pressure on Rachel Reeves’s industrial strategy

A glass factory in Wigan that produces fibreglass for electric cars and wind turbines faces closure and the loss of 250 jobs unless its Japanese owner can find a new partner or a buyer.

In the latest blow to Britain’s industrial base, Nippon Electric Glass (NEG) announced a “strategic review” of its composites business Electric Glass Fiber UK (EGF), which it expects to last approximately two months, putting about 250 jobs at risk.

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Reeves defends Labour’s £40bn tax rise as businesses prepare for NICs hike

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Chancellor says autumn budget enabled £25bn of extra investment into NHS and shorter waiting lists

Rachel Reeves has defended the £40bn in tax increases in autumn’s budget as businesses brace for their impact, saying NHS waiting lists would now be higher if she had not taken action.

Employers are set for a £25bn increase in national insurance contributions (NICs), which comes into force on 6 April, at the same time as consumers are being hit by a slew of increases in bills for everything from utilities to car tax.

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Keir Starmer urged to get tough with Trump as US tariff threat looms

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PM told to be as robust as Canada with the US president as the UK stages last-ditch talks to strike trade deal

Keir Starmer should fight back strongly against Donald Trump if he imposes punitive tariffs on British exports, senior UK and EU diplomats said on Saturday night, amid heightened fears that the US president could trigger a global trade war with devastating effects on the UK economy.

British government officials in London and Washington are working frantically this weekend to try to persuade Trump not to slap duties on more key UK industries on what he is calling “liberation day” on Wednesday. The US president has already announced plans for 25% levies on imports of cars, steel and aluminium to the US.

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From more tax to rewriting budget rules: six alternative ways Rachel Reeves could raise money

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The chancellor has been slated by politicians, the public and campaigners for pushing ahead with brutal welfare cuts – but there were other options

There is growing criticism of Rachel Reeves for her orthodox approach to managing the public finances. While it is clear that modest reductions in spending put forward in the spring statement cannot be described as a return to austerity, they are expected to deliver considerable harm to vulnerable people at a time when wealth inequality continues to rise.

Critics also believe the chancellor’s policies to improve living standards are flawed, and more radical reforms of the way Britain’s economy operates need to be supported by the government. Here we look at some of the options open to the chancellor.

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Reeves may have to find further cuts and tax hikes amid economic gloom

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Rising costs and global uncertainty may force chancellor to turn to pensioners and wealthier taxpayers

Ministers may have to target pensioners and wealthier taxpayers at the autumn budget, as senior government figures voiced fears brutal welfare reforms would still not go far enough to tackle rising costs.

The Institute for Fiscal Studies warned the chancellor may be forced to consider a freeze on tax thresholds, hikes to capital gains and potentially pension taxes.

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250,000 more people will face relative poverty after Rachel Reeves’ benefits cuts, DWP says – spring statement live

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Department for Work and Pensions says thousands, including children, will be hit by chancellor’s announcement, as OBR forecasts UK growth to halve in 2025

Rachel Reeves will not be raising taxes in the spring statement today, even though there are many people on the left who would prefer taxes to rise as an alternative to public spending being cut. Reeves came into office promising only one budget-type event a year, and that is one reason why she is not hiking taxes today. But mainly it’s because she thinks Britons are relatively highly taxed already, because Labour was elected on a manifesto ruling out most of the obvious possible tax rises and because she’s not convinced a sweeping wealth tax would work.

But that has not stopped campaigners calling for a wealth tax, and yesterday about 300 people attended a ‘Tax the Super-Rich’ rally outside the Treasury. It was organised by charities and social justice campaign groups, but one of the speakers was Carla Denyer, co-leader of the Green party, which is in favour of a wealth tax.

Across the country, inequality is soaring and people are being left behind, struggling to make ends meet and dealing with broken public services, all while the very richest get richer. Choosing to make cut after cut to the poorest and most marginalised, while leaving the vast resource of the extreme wealth of the super rich untouched, is immoral, harmful, and will not deliver for our communities or the economy.

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