UK Politics

Britain is facing cuts after Rachel Reeves doubled down on her manifesto pledge not to raise taxes to fund Labour’s spending plans.In a speech in Manchester on Wednesday morning, the chancellor insisted Labour’s spending plans – set to be outlined next week – were “fully costed and fully funded” and that she would not need to raise income tax, VAT or employee national insurance contributions. But a major think tank has joined critics from within government to warn that the chancellor would have no choice but to make cuts to other public services. The Resolution Foundation said the government has increased departmental spending by almost £400bn since it came to power but pressures to increase health and defence spending will make it “hard to avoid cuts” to other public services. Reacting to Reeves’s speech, a senior Labour source added: “I suspect that means a lot of cuts.”An audience member looks unimpressed by Reeves’s speech More

France has finally agreed to draw up a plan to stop small boats at sea by the summer, after police were criticised for standing by as people smugglers picked up migrants. The French government is understood to be enlarging its navy with new patrol boats that could intercept so-called “taxi boats” before they leave for the UK. The strategy is designed to be ready before French president Emmanuel Macron travels to London for a Franco-British summit on 8 July. It comes after a furious row erupted over the lack of action as more than 1,000 people crossed the English Channel on Saturday.Migrants scramble on board a small boat leaving the beach at Gravelines More

Winter fuel payments will not be reinstated for all pensioners, a minister has confirmed in a blow to millions of people across the country. It came as Rachel Reeves confirmed an expected U-turn on the controversial cuts would be in place for this winter — but said the government wouldn’t set out details of how they would pay for it until the Autumn budget. Sir Keir Starmer last month announced his intention to give more people access to winter fuel payments, just months after Labour made the previously universal payment means-tested. Rachel Reeves confirmed that the winter fuel payment would be restored for some pensioners in time for this winter More

Rachel Reeves is facing a cabinet revolt over her spending review amid fears departmental cuts will lead to key manifesto spending promises being ditched.In what is being described as a “proxy war”, the chancellor is facing a push to consider taxes on the wealthy instead of cuts before she outlines her government spending plans next week.Room for manoeuvre is further restricted by an expectation that the government will U-turn on cancelling winter fuel payments for millions of pensioners, as well as ending the two-child benefit cap, which could cost Ms Reeves as much as £5bn.The row follows reports that major departments, including Yvette Cooper’s Home Office and Angela Rayner’s Ministry of Housing, Communities and Local Government, have still not settled on an agreement for the spending review due to be unveiled on Wednesday 11 June.There was some good news with reports that education secretary Bridget Phillipson had agreed her department’s spending envelope with a week to go. But the holdouts come despite the Treasury setting an unofficial deadline of last weekend to agree.Reeves and Rayner have been struggling to agree over the spending review More

Rachel Reeves is facing a cabinet revolt over her spending review amid fears departmental cuts will lead to key manifesto spending promises being ditched.In what is being described as a “proxy war”, the chancellor is facing a push to consider taxes on the wealthy instead of cuts before she outlines her government spending plans next week.Room for manoeuvre is further restricted by an expectation that the government will U-turn on cancelling winter fuel payments for millions of pensioners, as well as ending the two-child benefit cap, which could cost Ms Reeves as much as £5bn.The row follows reports that major departments, including Yvette Cooper’s Home Office and Angela Rayner’s Ministry of Housing, Communities and Local Government, have still not settled on an agreement for the spending review due to be unveiled on Wednesday 11 June.There was some good news with reports that education secretary Bridget Phillipson had agreed her department’s spending envelope with a week to go. But the holdouts come despite the Treasury setting an unofficial deadline of last weekend to agree.Reeves and Rayner have been struggling to agree over the spending review More

Sir Keir Starmer has been urged to personally intervene in the “unspeakable tragedy” developing in Myanmar and to meet the British son of Aung San Suu Kyi, who has been imprisoned by the country’s military junta.The call comes in a new report which highlights the plight of Ms Suu Kyi and 22,000 other political prisoners, after a coup which overthrew her democratically elected government four years ago.It also shines a spotlight on the army’s airstrikes and ground attacks against civilians and details atrocities including massacres, beheadings, executions, rapes and tortures.Aung San Suu Kyi is one of 22,000 political prisoners in Myanmar More

Sir Keir Starmer has reportedly been warned by UK police chiefs that forces could face “stark choices” on which crimes to prioritise investigating amid fears over spending cuts.Head of the Metropolitan Police Sir Mark Rowley was among the senior police officers who issued the direct warning in a letter to the prime minister ahead of the unveiling of next Wednesday’s spending review, according to reports. Sir Keir and chancellor Rachel Reeves are already facing a cabinet revolt over the government spending plans, with Yvette Cooper’s Home Office believed to be among the ministers who have not settled on an agreement.In their letter, the police chiefs predicted “far-reaching consequences” if the Treasury pushes ahead with slashing costs, including cuts to frontline policing last seen under austerity.They added that the Home Office and Treasury negotiations have been going “poorly”.The Times reported Britain’s most senior police chiefs wrote to Sir Keir: “We understand that the Treasury [is] seeking to finalise departmental budget allocations this week and that the negotiations between the Home Office and the Treasury are going poorly.Head of the Metropolitan Police Sir Mark Rowley was among the senior police officers who issued the direct warning in a letter to the prime minister ahead of the spending review, according to reports More

The UK’s steel and aluminium industry has been spared the immediate hit of Donald Trump’s 50 per cent from Wednesday – but looks to have just five weeks to finalise an exemption deal.At the 11th hour, the US president decided to “provide different treatment” to the UK after last week announcing he would raise the tariffs from 25 per cent to “further secure” the industry in his country. However, a much-lauded UK-US trade deal unveiled last month that should have exempted Britain from steel tariffs completely is still yet to be implemented – and it appears Mr Trump has set a deadline of next month for the deal to be finalised.Levies will remain at 25 per cent for imports from the UK, according to a version of the US executive order that confirmed the worldwide tariff increase on Tuesday, which also added that Britain could still be subject to the higher 50 per cent rate from 9 July.The UK government said it was “pleased” the UK will not be subject to the additional tariffs, as it vowed to secure the removal of the 25 per cent levies.On Tuesday, business secretary Jonathan Reynolds met White House trade representative Jamieson Greer in Paris to discuss the UK-US trade deal. According to the Department for Business and Trade, the pair discussed a desire to implement the deal struck as soon as possible, and committed to working closely to make it happen.In the text of the executive order released on Tuesday, Mr Trump has “further determined that it is necessary and appropriate to allow for the implementation of the US-UK Economic Prosperity Deal of 8 May, 2025 (EPD), and to accordingly provide different treatment, as described below, for imports of steel and aluminium articles, and their derivatives, from the United Kingdom”.The order later says that rates will for now stay at 25 per cent and adds: “On or after 9 July, 2025, the Secretary may adjust the applicable rates of duty and construct import quotas for steel and aluminium consistent with the terms of the EPD, or he may increase the applicable rates of duty to 50 percent if he determines that the United Kingdom has not complied with relevant aspects of the EPD”.The global 50 per cent tariff rate is due to come into force from 12.01am Washington DC time on Wednesday, just after 5am in the UK.There had been fears that the UK was to be hit with the 50 per cent tariff. UK Steel director general Gareth Stace said: “The president’s decision not to impose a 50 per cent tariff on UK steelmakers, but to keep the rate at 25 per cent while the UK-US deal is completed, is a welcome pause.“Continued 25 per cent tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike. However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders.“The US and UK must urgently turn the May deal into reality to remove the tariffs completely.”A UK government spokesperson said: “The UK was the first country to secure a trade deal with the US earlier this month and we remain committed to protecting British business and jobs across key sectors, including steel as part of our plan for change.“We’re pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs.“We will continue to work with the US to implement our agreement, which will see the 25 per cent US tariffs on steel removed.”The Conservatives have said that Labour’s “botched negotiations have left businesses in limbo”.Shadow business and trade secretary Andrew Griffith said: “Keir Starmer stood in front of the nation and insisted to the British public that his Labour Government had achieved a trade deal with the US, and now one month later our industries face a fresh tariffs blow.“So once again, it seems that Keir Starmer’s promise was just like the rest: hollow and broken. Labour’s botched negotiations have left businesses in limbo and this country simply cannot afford their continuing failure.” More