Markus Andrews

The International Monetary Fund (IMF) has slashed the UK’s economic growth forecast in a fresh blow to Rachel Reeves, upping the ante as the chancellor prepares to hold talks in Washington DC this week. Ms Reeves is expected to have her first face-to-face meeting with her US counterpart, treasury secretary Scott Bessent, as she pursues a new economic agreement the UK hopes can offset some of the cost of Donald Trump’s trade tariffs. But the news of the growth downgrade, more severe than the prediction for the rest of Europe, will increase the pressure on the chancellor to secure a deal – or face the spectre of tax rises or even more spending cuts later this year. Rachel Reeves is expected to spend three days in the USA More

British Steel has said it will end a consultation on up to 2,700 redundancies, after the UK government took control of the firm earlier this month.Prime Minister Keir Starmer previously recalled MPs from their spring recess so Parliament could pass emergency legislation allowing the government to take operational control of British Steel. Since the government’s intervention, British Steel has been able to secure a stable supply of raw materials to its two blast furnaces, Queen Anne and Queen Bess. Now British Steel has confirmed it has officially withdrawn the HR1 consultation form it had submitted to the Department of Business and Trade on March 27. This means all operations at British Steel are being maintained, including Scunthorpe Rod Mill. Lisa Coulson, interim Chief Commercial Officer said: “This has been a difficult and worrying time for British Steel staff and their families. I can however confirm that we are closing the redundancy consultation without action.“Since the Government passed its legislation, we have been working day and night to ensure we are able to stabilise our operations. The work done to secure the raw materials we need for both Queen Anne and Queen Bess blast furnaces means we are able to run both continuously.“We would like to thank our trade union partners for their professionalism and the support of their members over recent days and weeks.“And I would also like to thank everyone in our workforce for their extraordinary dedication over recent days and weeks. It is your hard work and passion that means steelmaking in Scunthorpe has a bright future.“Quite simply, British Steel workers are the finest in the world.”British Steel has ended its redundancy consultation without any action More

Kemi Badenoch has been accused of throwing in the towel before a vote has been cast in May’s local elections. The Conservative leader warned Tory supporters to brace for a “very difficult” set of results for the party as voters go to the polls next Thursday. She is leading the Tories into the local elections against a high watermark set by Boris Johnson at the peak of his popularity in 2021.And, setting expectations low for her first electoral test as leader of the Conservatives, Ms Badenoch told BBC Radio 4’s Today programme: “We lost last year in a historic defeat – these elections are going to be very difficult for Conservatives.”Two-thirds of the seats four years ago we won – there’s no way we are going to be able to do that again.”Kemi Badenoch has been accused of having thrown in the towel before polls open More

Trans women should use male toilets, the equalities minister has said, declaring that “services should be accessed on the basis of biological sex”. Bridget Phillipson said businesses should ensure “they have appropriate provision in place”, which could mean unisex facilities.But she said the Supreme Court ruling was clear about the basis on which services should be used. Her comments came after a long-awaited judgment delivered last Wednesday in which the UK’s highest court confirmed the terms “woman” and “sex” in the 2010 Equality Act “refer to a biological woman and biological sex”. It means transgender women with a gender recognition certificate can be excluded from single-sex spaces if it is deemed “proportionate”.Bridget Phillipson said the Supreme Court was clear services should be accessed on the basis of biological sex More

Sir Keir Starmer is close to striking a major deal with the EU that would let British arms companies sell billions of pounds of weapons to European allies, it has emerged.Under the agreement, UK companies would be able to bid for business under the bloc’s new €150 billion (£130 billion) defence fund. But the deal comes after the UK reportedly made major concessions to Brussels on EU access to Britain’s fishing waters, in what critics will likely see as a betrayal of Brexit. The EU last month unveiled its “Readiness 2030” security strategy as part of a drive to break its dependence on the US amid heightened Russian aggression.The strategy included an easing of budget rules to create the multi-billion pound loan plan focused on buying defence equipment in Europe rather than suppliers in the US. A deal on defence procurement comes after British negotiators prepared to make concessions on fishing More

Scrapping the two-child benefit cap is the most cost-effective way to reduce child poverty, charities have argued in a letter to the prime minister.Failing to scrap the limit could put child poverty at its highest level since records began by the end of this parliament, groups including Barnardo’s, Save the Children UK and Citizens Advice have warned.The two-child benefit cap, imposed by Tory former chancellor George Osborne, prevents parents from claiming benefits for any third or subsequent child born after April 2017. A separate limit on benefits, imposed under the Tory-Liberal Democrat coalition in 2013, restricts how much a household can receive in benefits in total.Sir Keir Starmer has previously said he wants to scrap the cap but that the government cannot currently afford to More

By-elections are always tough for a sitting government. Voters use them to take out their frustrations on politicians who haven’t delivered what they promised, without the risk of their vote having national consequences. Opposition parties can promise the world, knowing that later down the line if they don’t deliver, they can blame it on a lack of funding from the party in power.While many see the upcoming Runcorn by-election as Sir Keir Starmer’s first major test in government, he’s not the only politician with a point to prove. Nigel Farage is attempting to persuade voters that Reform UK is a credible electoral force.The party has grown in popularity in the past year – but it has also lurched from scandal to scandal. From last month’s explosive row with MP Rupert Lowe that saw him ousted over allegations he harassed female staff, to the party’s failure to properly vet its candidates at last year’s general election, it has been far from plain sailing.But in selecting Sarah Pochin, Reform’s candidate for Runcorn and Helsby, Mr Farage is attempting to draw a line under the past.Nigel Farage with Sarah Pochin, Reform UK’s candidate for the Runcorn and Helsby by-election (PA) More