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      How could Donald Trump’s tariffs affect UK households and their finances?

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      Foreign Secretary David Lammy has said people across the country are “very concerned” about how the move by the United States to place 10 per cent import taxes on goods would hit their own finances.Here is a look at how households may find their finances could be affected:What about prices in shops?Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The impact on prices isn’t nailed on at this stage.“There are a number of forces that could keep a lid on inflation. Worries about growth around the world mean central banks may keep interest rates as low as possible in order to support whatever growth is around.”Fluctuations in sterling against other currencies will have an impact on prices.Ms Coles said: “We might also see some of the goods that were destined for the US being diverted elsewhere around the world – including the UK.“If it means a glut, it could mean there are some decent bargains around. Plus, some companies will want to hold prices lower, in order to compete more effectively against US businesses, so we could benefit from that.President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House in Washington (Mark Schiefelbein/AP) More

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      Chlorinated chicken: Is it bad for you and will it be sold in British supermarkets?

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      British negotiators are in “intense discussions” with the United States on closer trade ties, the chancellor has said, in an attempt to ease the impact of Donald Trump’s looming tariffs.One of the products being touted as part of the free trade deal is chlorine-washed chicken – a controversial method of cleaning farmed animals to kill bacteria.While evidence suggests the chlorine wash itself is not harmful, critics argue treating chicken with the chemical will allow for poorer hygiene earlier on in the production process.Reform UK leader Nigel Farage said he would agree to allow American chlorine-washed chicken to be sold in the UK as part of a free trade deal with the US. He said, as part of a deal, US President Trump “would want US agricultural products to be sold in Britain”.However, Liz Webster, founder of Save British Farming, told The Independent: “The British public is rightly appalled by chlorinated chicken and hormone-fed beef. We are an animal-loving nation that values high standards, and we must not trade them away.”Packs of ‘Brexit Selection Freshly Chlorinated Chicken’ sit on display at ‘Costupper’ Brexit Minimart pop-up store, set up by the People’s Vote campaign group, in November 2018 More

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      Controversial two-child benefit cap ‘plunges extra 30,000 children into poverty since Labour came to power’

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      An extra 30,000 children have been pulled into poverty by the controversial ‘two-child limit’ on benefits since Labour came to power, according to new research ahead of the eight anniversary of the policy. Last July ministers said they would consider ditching the “cruel” cap, in a bid to head off a backbench Labour revolt on the issue. But there has been no movement since, while official documents last week showed that separate moves to slash an extra £5 billion from the welfare bill are set to drive another 50,000 kids into poverty. Prime Minister Sir Keir Starmer (Ben Stansall/PA) More

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      Starmer’s Farage-focused local elections launch shows he knows Reform is the real threat to Labour

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      There were two insurgent right-wing populists looming over Sir Keir Starmer’s local election launch on Thursday. Donald Trump, because the US president’s “Liberation Day” tariffs threaten to blow the PM’s “plan for change” out of the water. And Nigel Farage, who Sir Keir fears will snap up hundreds of local council seats in Reform UK’s first major test since the general election.The Reform UK leader has promised to field candidates in 99 per cent of the seats up for grabs, and could stamp his party’s authority as a real electoral force, not just a passing fad, in the polls amid anger among voters at Labour’s failings. Keir Starmer and Angela Rayner launched their local election campaign in Chesterfield on Thursday More

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      Watch: Starmer refuses to rule out further benefit cuts after Trump’s tariffs

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      Sir Keir Starmer has refused to rule out a fresh round of benefit cuts ahead of the autumn Budget, with Donald Trump’s tariffs threatening to blow a hole in the UK’s public finances.To meet her fiscal rules in the spring statement, Rachel Reeves unveiled a swathe of cuts to those claiming benefits, with economists warning 250,000 people would be driven into poverty.Asked by The Independent on Thursday, 3 April, whether he could rule out further benefit cuts to fill any hole in the public finances left by Mr Trump’s trade war, the PM said the Budget was a long way away. More

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      Conservatives should stand aside and let Reform win Runcorn by-election, says senior Tory MP

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      The Conservative Party should let Reform UK win the Runcorn by-election next month as part of an “electoral pact” between the two parties, a senior Tory MP has said. As the Conservatives continue to lag behind in the polls, former Cabinet minister Esther McVey appeared to defy party leader Kemi Badenoch and advocate an alliance with Nigel Farage’s party. It comes just weeks ahead of the Runcorn and Helsby by-election, which will see both Reform and the Conservatives attempt to overturn Labour’s 15,000 vote majority in the safe seat. The area has been held by Labour for more than 40 years. Ms McVey said the by-election was a chance for the Tories to let Reform pick up a victory, with the expectation they would then allow the Tories to do the same elsewhere. Conservative former minister Esther McVey has suggested her party should stand aside at the Runcorn byelection (Jacob King/PA) More

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      UK could retaliate to Trump’s tariffs if no US trade deal is secured, business secretary says

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      Keir Starmer’s government could hit the US with retaliatory tariffs if the UK cannot strike a trade deal with Donald Trump. Business Secretary Jonathan Reynolds told MPs that ministers will look at “possible retaliatory action” in response to 10 per cent levies on British goods entering the US,as officials work through 417 pages of products they could target. It comes as the prime minister was unable to rule out another tax raid or more cuts to benefits in a bid to balance the government books. The Office for Budget responsibility (OBR) had already warned Trump tariffs would wipe out all the fiscal headroom established by chancellor Rachel Reeves in her spring statement last week.And as businesses began to assess the economic turmoil unleashed by the US president the Federation of Small Businesses (FSB) revealed that around a third (32 per cent) of small and medium sized firms have been hit by the tariffs.Prime Minister Sir Keir Starmer (Jonathan Brady/PA) More

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      True scale of welfare cuts ‘closer to £9bn’, experts warn

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      Labour’s recently announced cuts to welfare spending may be much more severe than the government is claiming, several experts have warned. The headline £4.8bn figure placed on the cuts conceal their ‘true scale’, new analysis argues, as ministers continue to rebut criticism of the measures.The reforms, which largely focused on health and disability benefits, were announced by work and pensions secretary Liz Kendall on 18 March. The following week, chancellor Rachel Reeves revealed the scale of these cuts to be £4.8bn at Labour’s spring statement – as independently assessed by the Office for Budget Responsiblity (OBR).Announcing the plans, Ms Reeves said: “The Labour Party is the party of work. We believe that if you can work, you should work. But if you can’t work, you should be properly supported.”But a new report from the New Economics Foundation (NEF) has found that around £2bn in cuts has gone unstated due to how the OBR has costed the proposals. In its forecast, the spending watchdog takes £1.6bn away from the headline cuts figure to reflect Labour’s decision not to continue Conservative proposals to reform the Work Capability Assessment (WCA).Chancellor Rachel Reeves delivering her spring statement in the Commons (House of Commons) More