Markus Andrews

Keir Starmer has been urged not to appease Donald Trump as he considers cutting a major tax on US tech companies, following sweeping cuts to disability benefits and public sector jobs in the UK. As the government scrambles to agree an exemption for 25 per cent tariffs on British steel imposed by the US – alongside other possible tariffs currently being considered by the Trump administration – the chancellor confirmed ongoing discussions about the digital services tax, which hits major US tech firms including Meta and Amazon. The 2 per cent levy, which was introduced in 2020, raises about £800m a year for the UK. Rachel Reeves was optimistic that the steel tariffs could be scrapped if the UK strikes a deal with the US, but failed to deny there could be changes to the tax. “You’ve got to get the balance right,” Ms Reeves said.Prime Minister Sir Keir Starmer’s spokesman says the government is engaging with the administration of US President Donald Trump over tariffs (Carl Court/PA) More

More than 200,000 jobs could be lost because of the government’s so-called tractor tax, according to new research. The move would also cost the economy £14.9bn, according to a study by the independent consultancy CBI-Economics, which was commissioned by the group Family Business UK and looked at more than 4,000 businesses and farms across the country.Nearly a quarter of family businesses – 23 per cent – and almost one in five family farms – 17 per cent – said they had cut jobs or halted recruitment since the planned tax was announced in the October budget. Just under half of family farms – 49 per cent – said they have also paused or cancelled planned investments. Changes to inheritance tax rules in the budget introduced new taxes on farms worth more than £1m More

Rachel Reeves is preparing to cut 10,000 civil service jobs as part of a sweeping £2bn Whitehall savings drive, ahead of a spring statement she has warned will involve “hard” choices.The Labour chancellor has ordered mandarins to slash 15 per cent from departmental administrative budgets by 2029–30 – saving an estimated £2.2bn a year – and pledged the money will be redirected to “frontline” services. But the plans triggered an immediate backlash from unions, who said public services would suffer after years of underfunding.“People want to know we’re getting value for money,” Ms Reeves said.Chancellor Rachel Reeves appearing on the BBC 1 current affairs programme Sunday with Laura Kuenssberg More

Keir Starmer hailed his “good relationship” with Donald Trump just hours before the US President’s special envoy slammed the PM’s Ukraine peace plan as “a posture and a pose”. Steve Witkoff said the Labour leader’s idea of a peacekeeping force made up of the ‘coalition of the willing’ was based on a “simplistic” notion of thinking “we have all got to be like Winston Churchill”.In an interview with the pro-Trump personality Tucker Carlson, Mr Witkoff also praised Vladimir Putin, saying that he “liked” the Russian president. “I don’t regard Putin as a bad guy. He’s super smart,” he said. Mr Witkoff is leading the US ceasefire negotiations with Russia and Ukraine. Asked about the plans to create a “coalition of the willing” to provide military security guarantees for Ukraine in the event of a ceasefire, Mr Witkoff said: “I think it’s a combination of a posture and a pose and a combination of also being simplistic. There is this sort of notion that we have all got to be like Winston Churchill. (And thinking that) Russians are going to march across Europe. That is preposterous by the way. We have something called Nato that we did not have in World War Two.” Sir Keir said: “On a person-to-person basis, I think we have a good relationship.” More

Rachel Reeves has said she has “confidence” the UK can escape Donald Trump’s trade tariffs – due to be imposed within days. The chancellor did not rule out changing or ditching a tax on tech companies in a bid to duck the extra charges on goods entering the US, which experts have warned could shrink the already faltering UK economy. Ms Reeves told Sky News she had “confidence in our negotiators” working to try to secure a carve out for the UK. She added: “When our prime minister, Keir Starmer met Donald Trump a couple of weeks ago the US president said that he wanted to work on a deal and that’s what we are doing now. I believe in free and open trade. I want to reduce taxes.” She later described the US President as “rightly” concerned about countries that had a large trade deficit with the US, but insisted the UK was not in that position. Chancellor of the Exchequer Rachel Reeves (PA) More

Average living standards could fall for all UK families by 2030, with those on the lowest incomes hit twice as hard as middle and high-earners, a new forecast suggests.In analysis published days before chancellor Rachel Reeves is set to announce new spending cuts in her spring statement, the Joseph Rowntree Foundation (JRF) issued a stark new warning to the Labour government.While much discussion has focused on whether Ms Reeves will meet her “iron-clad” fiscal rules after rising borrowing costs wiped out the £10bn of headroom in her October budget, the JRF warned a preoccupation with the public purse risks a deterioration in the finances of ordinary families going under the radar.As a result, the charity believes Sir Keir Starmer could be on course to miss his fundamental milestone – just four months after it was announced – of seeing living standards rise during this parliament, a target which the JRF said would have been met by every previous government since comparable records began in 1955.Instead, this past year may prove to be the high point for living standards this parliament, according to the charity – whose forecasts rest on the assumption that the Office for Budget Responsibility will upgrade its own forecasts on Wednesday in line with those of the Bank of England and other major forecasters.If so, the JRF estimates the average family will be £1,400 worse off by 2030 than they are today – marking a 3 per cent fall in their disposable income after housing costs.The lowest income families will be £900 a year worse off, according to the JRF’s forecasts – amounting to a 6 per cent fall in their disposable income.UK government borrowing has soared above forecasts last month More

Rachel Reeves hopes to kickstart the economy and save Labour’s plan to build 1.5m new homes by training up to 60,000 bricklayers, electricians, engineers and carpenters over the next four years. The £600m move is designed to help fill 35,000 job vacancies in construction after warnings revealed by The Independent that the government’s flagship scheme is unachievable due to a shortage of workers. It comes as the chancellor tries to head off criticism of her stewardship of the economy as she unveils what are expected to be the deepest cuts to government departments since austerity in her spring statement on Wednesday.Chancellor Rachel Reeves hopes to kickstart the economy and save Labour’s plan to build 1.5m new homes More