UK Politics

Rachel Reeves has told senior economists and business leaders that she wants to rip up regulations on the financial services sector brought in after the 2008 financial crash.The chancellor has been desperately looking for ways to kickstart economic growth in the UK, which has flatlined since Labour came to power last July with the country teetering on the edge of going into recession.Speaking on a panel during a debate on the global economy in Washington DC on Thursday, Ms Reeves revealed that she believes now is the time to at least partly go back to pre-banking crisis regulations, in the hope it will inject much-needed growth into the City of London and financial markets.She said: “Excessive regulation makes it hard for new entrants to come into market, puts up prices for consumers. “So I do think that we’ve gone too far in one direction. And of course, after the financial crisis, we had to put in place a good, greater set of regulations than we had before, sure, but we are now what you know, getting on for 20 years since the financial crisis. And I do think we’ve got to think about that balance.”The chancellor is in Washington for crucial talks More

Rachel Reeves has made a dramatic bid to appease Donald Trump in an apparent bid to ensure a UK-US trade deal can be agreed.Speaking to finance leaders on a trip to Washington DC, the chancellor has made a bold call for a new global trading system which would correct “excessive imbalances” between different countries and trading blocs.Her remarks are a direct attempt to deal with the issues raised by President Trump when he unleashed sweeping global tariffs earlier this month, which sent shockwaves through stock markets before being abruptly paused for 90 days.Speaking at the International Monetary Fund’s biannual meeting on Thursday, Ms Reeves said: “I am proud that the UK has its global, open reputation, and it is one I want to strengthen.“But the world has changed and so must we. We are in a new era of global trade. And in that new era, we need a system that provides security for working people, stability for businesses, and prosperity for national economies.”She added: “To deliver this, we need to do three things: tackle excessive global trade imbalances, reduce barriers to trade, and promote strong multilateral institutions.”Rachel Reeves is in Washington for talks on a UK-US trade deal More

Charities have been condemned Nigel Farage over “wildly inaccurate” claims about people with mental health problems and children with special educational needs (SEND).The National Autistic Society (NAS) led the criticism of Reform UK’s leader after he claimed in a rant on mental health problems that GPs are “over diagnosing” conditions.Speaking at a press conference in Dover, Mr Farage said: “It’s a massive problem. I have to say, for my own money, when you get to 18 and you put somebody on a disability register, unemployed, with a high level of benefits, you’re telling people aged 18 that they’re victims.”Reform UK leader Nigel Farage speaking at a press conference in Dover in Kent, while on the local election campaign trail (Gareth Fuller/PA) More

Sir Keir Starmer has announced a £2bn agreement to fund carbon capture and storage (CCS) projects in the UK, which he said would create 2,000 jobs across north Wales and the North West. Speaking at an energy summit in London, the prime minister said the British government and Italian energy group Eni had reached an agreement which will see the company invest billions in facilities that take harmful carbon from the atmosphere and bury it deep underground in order to reduce the impact of emissions. Announcing the deal, which will see investment in the Liverpool Bay Carbon Capture and Storage Project, the prime minister said: “Our plan for change is working – we said we’d deliver jobs and growth through carbon capture technology, and now we have. Shovels ready for the ground, supporting over 2,000 new jobs and supporting thousands more, transforming the lives of hard-working people.” Sir Keir Starmer and Ursula von der Leyen at Thursday’s energy summit More

The top international official in Bosnia on Thursday cut all budgetary financing for ruling political parties in the Serb-run part of the country, increasing the pressure on the entity’s pro-Russian president who is wanted over his separatist policies.Christian Schmidt, a German diplomat tasked with overseeing peace in Bosnia, accused the leadership of the Serb-run Republika Srpska entity of undermining the Dayton accords that ended the 1992-95 war in the country.Schmidt announced his move a day after Bosnian state police officers attempted to detain Milorad Dodik, the president of Republika Srpska, but were prevented by armed Bosnian Serb police.Schmidt’s Office of the High Representative has the authority to change and impose laws in Bosnia.Dodik is wanted for undermining Bosnia’s constitution with a series of laws boosting the independence of the Serb-run half of the country. Bosnian courts issued an arrest warrant for Dodik in March after he failed to appear for questioning.Schmidt said his decision on Thursday “supports the efforts by institutions of Bosnia-Herzegovina to counter the ongoing flagrant attacks … against the fundamental principles of the Dayton peace agreement and the constitutional and legal order.” Dodik has repeatedly called for the separation of the Serb-dominated territory from the rest of Bosnia, fueling fears of instability. He has faced U.S. and British sanctions for his separatism, but has had the support of Moscow.The suspension of budgetary funds for Dodik’s Alliance of Independent Social Democrats and allied United Srpska parties applies to all levels of government in Bosnia, Schmidt said. Those who fail to apply it will be held accountable, he added.Dodik on Thursday rejected Schmidt’s moves as illegal, threatening to arrest the German official if he came to Republika Srpska. “It is impossible to accept this. Republika Srpska will not accept it,” Dodik said.Wednesday’s botched attempt to detain Dodik reflects ongoing tensions in Bosnia years after the war which killed more than 100,000 people and displaced millions. The country is formally seeking European Union entry but progress has been stalled.The Bosnian State Investigation and Security Agency, or SIPA, said its officers gave up on their attempt to detain Dodik at a Republika Srpska government building east of the capital Sarajevo on Wednesday to avoid any incidents with the Serb armed police. Dodik left the building on Thursday under heavy security. The Bosnian war erupted in 1992 after Serbs staged an armed rebellion against the country’s independence from the former Yugoslavia and moved to unite with neighboring Serbia. More

Robert Jenrick has fuelled speculation that he is preparing a leadership campaign to replace the beleaguered Kemi Badenoch with just a week to go before the local elections.A letter to local election candidates offering his support was revealed just 24 hours after a recording emerged of him laying out a pledge to unite the Conservative Party and Reform UK.In the letter Mr Jenrick said: “I firmly believe that the best way to defeat our opponents is to champion Conservative values. We must not only stand by our Conservative principles but also put them into action.”Shadow justice secretary Robert Jenrick told the UCL Conservative Association last month he wanted the ‘fight’ against Labour to be ‘united’ (Lucy North/PA) More

Video game controllers used by Moscow to pilot drones in Ukraine are among the items which the Government has banned from being exported to Russia, the Foreign Office has announced.Some 150 new trade sanctions introduced by the UK are aimed at choking off the Kremlin’s war effort.Technology used in the Russian defence and energy sectors are among the items which can no longer be exported to Russia, including software used to search for and tap new oil and gas wells.Some chemicals, metals and machinery are also facing export bans in order to limit Russia’s military capability.Foreign Office minister Stephen Doughty claimed Russian President Vladimir Putin had been “buying harmless goods and turning them into tools of war”, but he added the the UK is “exposing and acting on this sinister trade”.“Today’s action clamps down on Russia’s sneaky trading and deprives Putin of the goods he desperately needs to fight his barbaric war,” the minister said.He added: “Cutting off Russia’s energy revenues will drain Putin’s war chest – that’s why we’re shutting down the sale of sophisticated software used to cash in on new oil and gas reserves, preventing UK expertise from being used to pour fresh fuel into Russia’s war machine.“We’re also banning outright video game controllers going to Russia, preventing them from being used to pilot drones on the front line, meaning gaming consoles will no longer be repurposed to kill in Ukraine.“And our tough new measures will also degrade Russia’s military machine – new export sanctions mean Putin will no longer be able to get his hands on specialist technology used to produce weaponry for his illegal war.”The fresh wave of sanctions comes a day after 15 MPs and six peers were banned from travelling to Russia, in retaliation against the UK’s ongoing response to the invasion of Ukraine.US President Donald Trump is currently pushing both Russia and Ukraine to accept the terms of a peace deal.Kyiv is resistant to the proposal, which would require it to give up vast swathes of territory currently occupied by Russian forces.The UK has meanwhile stepped up demands on Mr Putin to agree to an immediate unconditional ceasefire in Ukraine after a “brutal” overnight strike on Kyiv.Sir Keir Starmer said the attacks were a reminder that Russia is the aggressor, after Mr Trump lashed out at Ukraine’s president Volodymyr Zelensky and suggested he was the barrier to peace. More

The UK Government would not support an Australia-style blanket ban on under-16s using social media, the Technology Secretary has said.Peter Kyle said he believes decisions about when children should access social media should be left to parents.Last year, he had suggested such a ban in the UK could be “on the table” if companies did not take action to protect children, but has since softened his stance on the issue, suggesting in January he had “no plans” for such a ban.Australia introduced the world’s highest age restriction on social media use last year, barring children under 16 from creating accounts.But Mr Kyle has said the UK should not follow suit.Speaking to Nicky Campbell on BBC Radio 5 Live, he said: “Parents need to have the flexibility to parent in a way that’s suitable for their children and circumstances.“I’m trying to get the balance right between giving parents the freedom to be parents but also having absolute backstops.“Porn going into young children’s hands – that’s a backstop. Violent misogynistic content – that’s a backstop.“If government can get the fundamentals right, that can give parents the freedom to introduce children to social media and some of the developmental potential.“Most platforms are available from 13 plus – parents should decide if it’s 13, 14, even up to 18.”In November, Mr Kyle told the Telegraph newspaper that the UK could move to to “another level of regulation” if tech companies do not get together to enforce the Online Safety Act.At the time, he said he did not want to pursue further law changes until he sees how the Online Safety Act works.But he signalled he had been speaking to politicians from Australia where social media restrictions for under-16s have been approved by its parliament.Asked if the UK could push its age limits up to 16, Mr Kyle told the Telegraph: “When it comes to keeping young people safe, everything is on the table.”Mr Kyle’s latest comments came on the day Ofcom published its final codes of practice, under the Online Safety Act, laying out how tech firms must protect children from harmful content.It includes requiring firms to make their algorithms safe for children by not recommending them harmful material, and pushing firms to implement age verification tools – such as ID or credit card checks – to ensure children do not access inappropriate or harmful content. More