Sir Keir Starmer and Kemi Badenoch have clashed over the government’s U-turn on winter fuel payments during PMQs.
The prime minister has insisted an economic turnaround under him and Rachel Reeves means they can make the payments available for more pensioners this winter.
But Tory leader Kemi Badenoch has said there are still unanswered questions about who will be eligible and how the U-turn will be paid for.
She said Sir Keir has “not stabilised the economy” before adding: “He has no clear answers on what he’s doing, it’s just chaos, chaos, chaos. He’s making announcements with no detail.”
Sir Keir faced questions in the Commons after the earlier announcement that the government’s cuts to winter fuel payments would be reversed “this coming winter”.
Ms Reeves confirmed the move as she unveiled a £15 billion package of investment in public transport in the North and Midlands.
She told reporters that “more people will get winter fuel payment this winter”, adding that further details will be announced “as soon as we possibly can”.
Key Points
- Starmer and Badenoch clash over winter fuel U-turn at PMQs
- Rachel Reeves: ‘Winter fuel U-turn will kick in this winter’
- Chancellor vows no new taxes as she insists spending plans “are fully funded”
- Reeves unveils £15bn for transport outside London
- Trump temporarily spares UK from 50% metal tariffs
Are Rachel Reeves and Keir Starmer in denial about the ‘T’ word?
15:59 , Athena StavrouRachel Reeves is trumpeting £15.6bn of transport projects, mainly in the north and Midlands – and it’s no coincidence that these regions are where Nigel Farage’s Reform UK poses a threat to Labour.
In a key speech in Rochdale, the chancellor stuck to Labour's manifesto pledge not to raise income tax, national insurance for employees and VAT, saying she had ‘absolutely no intention’ of repeating the £40bn tax hike in her first Budget.
Her words may well come back to haunt her, warns Andrew Grice.
Are Rachel Reeves and Keir Starmer in denial about the ‘T’ word?
Watch: Nato boss calls on allies to ‘go further and faster’ on defence spending
14:59 , Athena StavrouWhat are the transport projects being funded in the spending review?
14:54 , Athena StavrouPublic transport projects across the North and Midlands are to be backed by the Treasury as part of a £15.6 billion package for mayoral authorities.
Here are some of the schemes being funded in the spending review:
• A new tram network in Leeds
• Extension of Birmingham’s tram network
• Enhancing Greater Manchester’s tram network
• Extending the Tyne and Wear Metro
• Expanding Middlesbrough railway station
Full story: UK’s steel industry spared Trump’s new 50 per cent tariffs – but White House warns exemption is conditional
14:41 , Athena StavrouDonald Trump will spare Britain’s steel and aluminium industry from his 50 per cent tariffs on Wednesday, but has given the UK just five weeks to finalise a full exemption.
The US president has given Britain a reprieve as he doubles the levies on imports to he US as he vows to “further secure” American industry.
Sir Keir Starmer’s much-hyped UK-US trade deal unveiled last month should have exempted Britain from steel tariffs completely, but is still yet to be implemented. And Mr Trump has now set a deadline of next month for the deal to be finalised.
Read the full story:
UK spared Trump’s new 50% steel tariffs – but exemption deal still not in place
Gaza facing ‘dark days’, Starmer says, as he vows to consider ‘further action’
14:30 , Athena StavrouGaza is facing “dark days”, the Prime Minister has said, as he vowed to consider “further action” against Israel.
Leader of the Social Democratic and Labour Party in Northern Ireland Claire Hanna asked Starmer in the Commons: “The prime minister said this week that Britain must be ready for war and, I ask, after tens of thousands of deaths, after a generation of Gazans stunted by hunger and trauma, when will it be ready for peace?
“When will it help to stop this genocide? When will it hold the Israeli government to account, and when will it recognise the state of Palestine?”
Sir Keir replied: “She’s absolutely right to describe this as dark days.
“Israel’s recent action is appalling and in my view counterproductive and intolerable, and we have strongly opposed the expansion of military operations and settler violence, and the blocking of humanitarian aid.”
Context: Starmer made his comments after an Israeli and US-backed group, the Gaza Humanitarian Foundation, paused food delivery at its three distribution sites in Gaza on Wednesday, after health officials said at least 27 Palestinians were killed in a series of shootings near the sites this week.
PMQ summary: PM sidesteps future of two-child benefit cap amid ‘chaos, chaos, chaos’ claims
14:14 , Athena StavrouSir Keir Starmer sidestepped calls to say whether he will scrap the two-child benefit cap as he was accused of presiding over “chaos, chaos, chaos” during today’s PMQs.
The Prime Minister said he is “absolutely determined” to “drive down” child poverty, although he declined to give further details ahead of the publication of the Government’s strategy on the issue.
His remarks came as Conservative Party leader Kemi Badenoch pressed Sir Keir to say how many pensioners would have their winter fuel payments restored and asked about the future of the two-child benefit cap amid “U-turn after U-turn” from the Prime Minister.
Speaking at Prime Minister’s Questions, Mrs Badenoch said Sir Keir has “not stabilised the economy” before adding: “He has no clear answers on what he’s doing, it’s just chaos, chaos, chaos. He’s making announcements with no detail.
Labour refuses to back controlled drug use rooms despite ongoing pilot
13:56 , Jabed AhmedThe UK Government has confirmed that it will not alter drug laws to permit new legal consumption rooms, regardless of the success of a pilot program in Glasgow.
The Thistle Centre, which opened earlier this year, was the result of a decade-long disagreement between the UK and Scottish governments. The Scottish government sought an exemption from the Misuse of Drugs Act to protect the facility's users from prosecution.
Read the full report below:
Labour refuses to back controlled drug use rooms despite ongoing pilot
Downing Street: Ministers in 'constant dialogue with US' over trade deal
13:44 , Jabed AhmedDowning Street said ministers were in “constant dialogue with the United States” when asked why the prime minister was confident a trade deal with the US would be implemented in a few weeks, avoiding higher tariffs on UK steel.
“We are obviously working at pace to ensure that we are able to implement the deal as quickly as possible,” the prime minister’s official spokesman added.
Asked if he could guarantee the deal would be in place by 9 July, a deadline hinted at by Donald Trump for tariffs on UK steel to rise to 50 per cent, the spokesman said: “Obviously our aim is to implement this deal as quickly as possible, and you have just heard from the PM in the House that we are hoping to provide an update on that in weeks.
“I think he said we are very confident in implementing that deal as soon as possible.”
For context,
Once implemented, the agreement would effectively eliminate tariffs on British steel and aluminium exports to the US.
Those tariffs currently stand at 25 per cent after Mr Trump said he would “provide different treatment” for the UK while he increased the levy to 50% for the rest of the world.
Charities urge chancellor for spending review commitment to scrap two-child limit
13:32 , Jabed AhmedMajor child poverty charities have written to chancellor Rachel Reeves today, urging her to make a commitment in next week’s spending review to abolish the two-child limit and benefit cap in the Autumn Budget.
The charities, including Child Poverty Action Group, Citizens Advice, Save the Children UK, Trussell and The Children’s Society, work with children and low- income families.
Their letter warns that the two-child limit has already pulled 37,000 children into poverty since the Labour government took office.
“The stark reality is that if these policies remain in place, child poverty will be significantly higher at the end of this parliament, the first time this has happened under a Labour government,” the letter reads.
“Lifting the two-child limit and the benefit cap will immediately lift 400,000 children out of poverty, and 950,000 children will be living in less deep poverty.
“It is rare that a single policy decision can reap such an immediate positive impact for so many. For a government that is committed to raising living standards, this is an extremely effective policy lever to pull.
“We recognise the government’s desire to set out how policies will be funded, but continuing to delay this decision comes with risks for both the government and for the people it serves.
“Taking this opportunity to make this commitment now will send a powerful message to families everywhere that this government is on their side, and is prepared to take the necessary steps to ensure every child gets the best start in life.”
For context,
The two-child limit denies the child allowance in universal credit to third or subsequent children born after April 2017. It was introduced in 2015 by then-Conservative chancellor George Osborne.
Winter fuel payment u-turn could be announced at next weeks spending review, No10 indicates
13:17 , Jabed AhmedDowning Street did not deny that details of how the winter fuel payment may be restored to more pensioners could come at next week’s spending review.
The prime minister’s official spokesman told reporters: “As the prime minister has said, we will only take decisions that are affordable. He has made clear that we want to expand the number of pensioners who are eligible for the winter fuel payment.
“We will set out the details of that in due course. You have got the Chancellor’s words from this morning. You have got the PM’s words from earlier in the week that we want to set out that detail as soon as possible.”
Downing Street previously suggested a fiscal event, like the autumn budget, was the likely avenue which would be used to expand eligibility for the winter fuel payment.
Asked if there had been a change in thinking on this, the spokesman again pointed to the prime minister and chancellor’s language on making the change as soon as possible.
“You can probably take their words on that,” he said.
Trump tariff exemption only 'kicking the can down road', experts warn
13:03 , Athena StavrouDonald Trump has spared Britain’s steel and aluminium industry from his 50 per cent tariffs - for now.
Experts have called the relied a “temporary escape” for the industry, as the UK has been given just five weeks to finalise a full exemption.
“The UK has temporarily escaped, with the current 25 per cent tariff in place only until the 9 July. Is this delay only a temporary reprieve? Kicking the can down road makes it a more challenging environment for any business to work in,” Dr Jonathan Owens, University of Salford’s operations and supply chain expert, said.
“Any potential new orders for the US are probably not going to be placed due to manufacturing and US shipping times. Also, it is very difficult to plan and make considerations for business and supply chain investments.
“Uncertainty impacts the suppliers for the UK steel and aluminium businesses too.
“Due to the fast-approaching July date, UK supply chains associated with steel and aluminium will need to have developed their supply chain resilience plan to keep pace with their global competitors.”
Comment: Are Rachel Reeves and Keir Starmer in denial about the ‘T’ word?
12:58Rachel Reeves is trumpeting £15.6bn of transport projects, mainly in the north and Midlands – and it’s no coincidence that these regions are where Nigel Farage's Reform UK poses a threat to Labour.
In a key speech in Rochdale, the chancellor stuck to Labour's manifesto pledge not to raise income tax, national insurance for employees and VAT, saying she had ‘absolutely no intention’ of repeating the £40bn tax hike in her first Budget. Her words may well come back to haunt her, warns Andrew Grice.
Are Rachel Reeves and Keir Starmer in denial about the ‘T’ word?
Tories: ‘Is there any low to which Starmer won’t sink?’
12:45 , Athena StavrouThe Independent’s Political Correspondent Archie Mitchell reports:
An unusually fiery PMQs has ended with the Conservatives asking “is there any low to which Keir Starmer won’t sink?”.
After the prime minister read out a social media post from the Russian embassy praising Kemi Badenoch, a Conservative Party spokesman said it was a “truly astonishing” moment.
The spokesman accused him of “reading out a tweet written in the Kremlin, designed to divide the western alliance on Ukraine”.
The Tories said: “Is there any low to which Keir Starmer won’t sink to distract from his political problems?
“This was the first time a Labour leader has repeated Kremlin propaganda in Parliament since Jeremy Corbyn and the Salisbury poisonings.”
'Not every department will get what they want', says Reeves
12:43 , Athena StavrouEarlier, the Chancellor has admitted not every sector will “get everything they want” in the government’s spending review next week.
Rachel Reeves has been involved in wrangles with Cabinet colleagues over departmental budgets and insisted her self-imposed “fiscal rules” were “non-negotiable”.
The Chancellor said the combination of tax hikes she has already unveiled and the changes to the way borrowing for investment is accounted for meant £300 billion extra was available over the coming years.
But she acknowledged this was not enough to meet the demands made by ministers.
She said: “Not every department will get everything that they want next week and I have had to say no to things that I want to do too.”
But, she added: “That’s not because of my fiscal rules. It is a result of 14 years of Conservative maltreatment of our public services, our public realm and of our economy.”
She said there were “good things I’ve had to say no to” but “the reason for that is because it is important to have control of the public finances”.
PMQs finished
12:41 , Athena StavrouThis week’s PMQs has now finished.
The session began with Sir Keir Starmer facing tough questions on the government’s winter fuel payment U-turn.
He also answered questions on Gaza and the government’s new investment announcement for public transport in the North and Midlands.
Reform UK’s new MP gets dressing down from Starmer
12:37 , Athena StavrouThe Independent’s Political Correspondent Archie Mitchell reports:
Sir Keir Starmer has attacked Reform UK’s newest MP Sarah Pochin - a former Conservative party member - after she popped up to ask him about banning the burqa at PMQs.
The prime minister said: “Now she is here and safely in her place, perhaps she could tell her new party leader that his latest plan to bet on £80 billion of unfunded tax cuts with no idea how he is going to pay for it is Liz Truss all over again?”
He added: “Although, considering I think she was a Conservative member when Liz Truss was leader, she probably won’t.”
Watch: Starmer refuses to say whether government will scrap two child benefit cap
12:34 , Athena StavrouPMQs: Important by-election claxon
12:30 , Athena StavrouThe Independent’s Political Editor David Maddox reports:
For those paying careful attention there are a number of planted questions from Scottish Labour MPs in PMQs today directly attacking the SNP.
This is because there is an important Scottish Parliament by-election in Hamilton tomorrow which some are tagging as an indicator of the health of the Labour government in Westminster.
While the SNP are clear favourites to win, Labour are not second place in a constituency which they should be winning easily.
Instead Nigel Farage’s Reform are second favourite and some believe they could even win it.
The seat is the Scottish Parliament version of the Westminster seat of Imogen Walker, the wife of Starmer’s chief of staff Morgan McSweeney.
If Labour comes third tomorrow the alarm bells are going to be ringing in the party where there is already a lot of unhappiness at the direction of a government which is cutting welfare and spending more on defence.
Starmer: US trade deal will be implemented in ‘a couple of weeks’
12:26The Independent’s Political Correspondent Archie Mitchell reports:
Sir Keir Starmer has said the provisions of the UK-US trade deal will be implemented in “a couple of weeks”.
After Donald Trump set a five-week deadline for the trade deal to be put in place, the prime minister indicated it would be completed well before that.
The consequence of not implementing it in full would be Britain’s steel and aluminium exporters being hit with a 50 per cent levy on sales into the US.
But, pressed on Mr Trump’s latest comments, Sir Keir said: “We have a deal. We're implementing it within a very short time. I'm very confident we will get those tariffs down in accordance with the deal, and I'll come back to him and update the house in due course.
“Let’s come back to this in just a couple of weeks when we’ve implemented it.”
Keir Starmer kicks the can down the road on the two child benefit cap
12:23 , Athena StavrouThe Independent’s Political Correspondent Millie Cooke reports:
Sir Keir Starmer has once again refused to say whether his government will scrap the two child benefit cap, kicking the can down the road until the child poverty strategy is published in Autumn.
Kemi Badenoch asked him to give a “simple answer” on whether or not he would keep the cap, to which the prime minister responded: “I’m absolutely determined that we will drive down child poverty.
“That’s one of the proudest things of the last government. That’s why we’ve got a task force, that’s why we’ve got a strategy. We’ll set out that strategy in due course. Under them, child poverty always goes up.”
Starmer: Situation in Gaza is ‘appalling and intolerable’
12:19 , Athena StavrouThe Independent’s Political Correspondent Archie Mitchell reports:
Sir Keir Starmer has described the situation in Gaza as “appalling and intolerable”, calling for a fresh ceasefire and the release of Israeli hostages.
The prime minister was asked by SDLP MP Claire Hanna about the tens of thousands of deaths in Gaza and the “generation of Gazans stunted by hunger and trauma”.
She asked: “When will Britain be ready for peace? When will it help to stop this genocide? When will it hold the Israeli government to account? And when will it recognise the state of Palestine?”
Sir Keir said: “She's absolutely right to describe this as dark days. Israel's recent action is appalling and, in my view, counterproductive and intolerable, and we have strongly opposed the expansion of military operations and settler violence and the blocking of humanitarian aid.”
He added: “We will keep looking at further action, along with our allies, including sanctions. But let me be absolutely clear, we need to get back to a ceasefire. We need the hostages who have been held for a very long time to be released, and we desperately need more aid at speed and at volume into Gaza, because it's an appalling and intolerable situation.”
Starmer: ‘There is only one party leader being praised by Russia’
12:15The Independent’s Political Correspondent Archie Mitchell reports:
Sir Keir Starmer has said there is “only one leader being praised by the Russian embassy”, after one of Kemi Badenoch’s interviews was shared on its social media accounts.
The prime minister said if the Tory leader “carries on echoing Kremlin talking points like this, Reform are going to be sending her an application form for membership”.
Attacking Reform over Nigel Farage’s past pro-Putin comments is one of Sir Keir’s favourite talking points.
He went on to read Ms Badenoch’s entire Sky News interview quote, where she said: “Israel is fighting a proxy war on behalf of the United Kingdom, just like Ukraine is on behalf of Western Europe against Russia.”
Sir Keir added: “Well, that was certainly noticed in the Russian embassy.”
PMQs: Starmer not answering the questions
12:13The Independent’s Political Editor David Maddox reports:
Kemi Badenoch is having one of her better days at the dispatch box at PMQs after a lot of criticism about her past performances.
She is hitting Keir Starmer with simple questions on two child benefit cap and winter fuel which are making him look evasive as he avoids answering each one.
When the prime minister has to resort to fake laughter at a leader of an opposition then you know he is in trouble.
He seems more interested in highlighting Tory policies and Ms Badenoch’s quotes and simply refuses to engage in questions on what he plans to do with key parts of economic and welfare policy.
Ms Badenoch has some justification in her pay off line: “Everything he has said is obfuscation and avoiding the question.”
Starmer and Badenoch clash over winter fuel U-turn
12:07 , Athena StavrouIn her first question during this week’s PMQs, Kemi Badenoch asked Sir Keir Starmer about his winter fuel payment U-turn.
“Three weeks ago the winter fuel policy was set in stone, two weeks ago the prime minister U-turned,” she said.
“Today the Chancellor is rushing her plans because she just realised when winter is.”
She added: “Can the PM be clear with us here and now. How many of the 10 million people who lost their winter fuel payments will get them back?”
Starmer began by saying: “I’m glad to see she’s catching up with what happened two weeks ago.”
PMQs begins
12:03 , Athena StavrouSir Keir Starmer has stood up in the Commons to begin PMQs.
He began by commenting on Labour’s announcement of £15 billion into public transport networks in the North and Midlands.
Watch live: Starmer faces Badenoch at PMQs after Reeves vows winter fuel U-turn
11:56 , Athena StavrouStarmer is about to face his weekly midday questions in the Commons.
We’ll be bringing you the latest updates and you can watch live here:
Pictured: Starmer leaving Downing Street ahead of PMQs
11:48 , Athena Stavrou
Starmer to face PMQs
11:40 , Athena StavrouSir Keir Starmer will face his weekly PMQs shortly in the Commons.
The prime minister will face tough questions from the Tory leader and other MPs amid concern Trump’s tariff exemption could be a temporary measure.
He will also face questions on the announcement hat billions of pounds will be invested in public transport in the North and Midlands.
Reeves: British exemption from Trump tariff hike welcome
11:31 , Athena StavrouThe Independent’s Political Correspondent Archie Mitchell reports:
Rachel Reeves has said it was “welcomed by UK Steel” that Britain avoided Donald Trump’s doubling of steel and aluminium tariffs - and vowed negotiators will work to ensure the levies are brought down to zero.
The chancellor said the UK-US trade deal struck by Sir Keir Starmer and business secretary Jonathan Reynolds was “good for British Steel”, as it will see tariffs on the sector dropped.
With the US president setting a five-week deadline for the terms of the agreement to be fully implemented - or leave Britain facing the higher tariffs - she said Britain will work to “bring those tariffs down to zero”.
Nato boss calls on allies to ‘go further and faster’ on defence spending
11:10 , Athena StavrouThe Independent’s Whitehall Editor Kate Devlin reports:
Nato secretary general Mark Rutte has told member countries to “we have to go further and faster” on defence spending, amid an expectation the alliance will force Keir Starmer to agree to allocate 3.5 per cent of GDP.
Defence spending “keeps us safe” Mr Rutte told a press conference ahead of a meeting of defence ministers.
On Monday the prime minister's bold plans to transform the UK’s defences were overshadowed by a row over money after the prime minister failed to commit to a firm date to raise spending to 3 per cent of GDP.
The Labour leader was warned Britain may not be moving quickly enough to counter the rapidly growing threats from countries such as Russia.
Sir Keir and other Nato leaders are under pressure from US president Donald Trump to rapidly increase spending, to wean Europe off a dependence on Washington for military support.
Reeves: ‘Winter fuel U-turn will kick in this winter’
11:06 , Athena StavrouThe Independent’s Political Correspondent Archie Mitchell reports:
Rachel Reeves has promised that those made eligible for payments under Labour’s winter fuel U-turn will receive them this winter.
The chancellor said she will set out details of who will be eligible under a more generous means testing system than it put in place last July “as soon as possible”.
And she admitted that, as well as her justification that the U-turn is based on an economic turnaround under Labour, it is also due to “the concerns people had about the level” of eligibility.
She said: “I had to make decisions last year to restore sound public finances, and that involved a number of difficult decisions around welfare, taxation and also public spending - including the decision to means test winter fuel payments so only the poorest pensioners, those on pension credit, got it.
“But we have now put our public finances on a firmer footing. The economy is in a better shape, but we have also listened to the concerns that people had about the level of the means test
.“So we will be making changes to that.
“They will be in place so that pensioners are paid this coming winter, and we'll announce the detail of that and the level of that as soon as we possibly can.”
Pictured:Rachel Reeves during visit to Mellor Bus in Rochdale, Manchester
11:04 , Athena Stavrou
Conservatives describe Rachel Reeves' speech as 'a copy and paste announcement'
11:00 , Athena StavrouThe Independent’s Political Editor David Maddox reports:
Gareth Davies MP, shadow Treasury minister, said: "Rachel Reeves is scrambling to salvage her failing economic plan after the Prime Minister has made U-turn after U-turn, punching holes in her credibility."S
he needed to do better than copying and pasting announcements made by the previous Conservative government. The country is not falling for their lies anymore. Britain deserves better.
"Only the Conservatives believe in sound money, low tax and the ingenuity of our entrepreneurs."
Reeves vows no new taxes as she insists spending plans “are fully funded”
10:46 , Athena StavrouThe Independent’s Political Editor David Maddox reports:
Rachel Reeves has hit back against her critics within and outside the government who warn she needs to raise taxes to pay for Labour’s manifesto commitments.
Despite rows with ministers like deputy prime minister Angela Rayner and warnings from leading economists such as Paul Johnson from the Institute of Fiscal Studies (IFS), Ms Reeves has insisted she will not raise the major taxes.
She was pressed a number of times on the manifesto pledge not to increase income tax, VAT or national insurance but insisted she will stick to her promises.
And despite warnings from cabinet colleagues that manifesto spending plans are now at risk, the chancellor also insisted they are “fully funded and fully costed”.
She was asked: “Are manifesto commitments on policing, housing and energy at risk?”
But Ms Reeves responded: “We made those commitments in our manifesto and we stick to them. All of the manifesto commitments that we made were fully costed and fully funded.”
She highlighted the small taxes which Labour said it would raise in the manifesto to pay for extra investment - VAT on private school fees, cracking down on non-doms and introducing the energy levy
She went on: “Those promises were fully funded. We have raised those taxes to put that money into our public services which is why we can deliver on our manifesto commitments including not increasing the key taxes working people pay - income tax, national insurance and VAT.”
Rachel Reeves unveils the latest plan for change and renewal - but will it happen?
10:32 , Athena StavrouThe Independent’s Political Editor David Maddox reports:
Most politicians want to get the bad news out of the way early and have a big positive announcement on the day of a major statement.
But Rachel Reeves has gone the opposite direction. About 20 minutes into her speech she has started listing a string of eye-catching investment in transport across the midlands and the north.
Train stations, tram lines, buses, light rail.
If it comes to fruition then there will be a true renewal of the UK’s less economically productive regions.
The biggest of all is Northern Powerhouse Rail.But cynics will note that similar announcements were made by the Tories in the last 14 years.
The question now will be whether Labour really delivers.
Reeves fights to win back Reform voters with transport package
10:22 , Athena StavrouChancellor Rachel Reeves has defended her stewardship of the economy and the public finances as Labour battles the electoral threat from Nigel Farage’s Reform UK.
Unveiling a £15 billion investment package for the North and Midlands, she said: “The choice is already clear: Where Reform and the Conservatives would gamble with Britain’s future, Labour will invest in that future.
“Where they offer chaos, Labour offers stability.
“Where they offer decline, Labour offers investment.
“And where they offer more of the same, we offer change; change that we can now deliver because of the choices we have made.”
Watch: Reeves says she will 'never take risks' on 'fantasy economics' like Reform and Tories
10:07 , Athena StavrouBritish cities must mimic European infrastructure if UK is to succeed, says Reeves
10:02 , Athena StavrouThe Independent’s Political Correspondent Millie Cooke reports:
British cities must improve their infrastructure to become more like other European cities if the UK is to succeed, Rachel Reeves has said.
Giving a speech in Manchester, the chancellor warned that the lack of infrastructure in cities like Birmingham, Liverpool and Newcastle put them at a disadvantage compared to the rest of Europe.
“Labour's strong investment in the past in strongly integrated transport systems, including in London, helps explain London's global success and also its advantages over other UK cities”, she said.
“And we want London to succeed, but it is the lack of that infrastructure which puts England's other great cities, Birmingham, Liverpool, Newcastle, at a disadvantage compared to their European counterparts that have this infrastructure, and it helps to explain our under performance relative to other European economies.”
She added: “If we were to increase the productivity of those second cities in the UK, it's a much the national average. Our economy today would be £86bn pounds larger.”
Analysis: Reeves loves her buzz words
10:00 , Athena StavrouThe Independent’s Political Editor David Maddox reports:
As the chancellor continues to plough on with her speech she desperately tries to repeat as many of Labour’s buzz words even if they have little meaning for those listening.
So far we have had six “working people” references and nine “fiscal rules”.Of course there has been “plan for change” as well, another important line for this Labour government.
There have been a few “fiscal framework” moments too.
It has to be said from the shuffling feet, the people standing behind her appear to be struggling to remain interested in the speech as Ms Reeves carries on.
Reeves re-hashing Boris Johnson’s levelling up language
09:56The Independent’s Political Correspondent Archie Mitchell reports:
Rachel Reeves is re-hashing the language Boris Johnson used to sell his levelling up agenda as prime minister.
Four years ago Mr Johnson warned of too many people born in a country in which “geography turns out to be destiny”.
“Everyone knows that talent and energy and enthusiasm and flair are evenly spread across the UK, evenly spread,” he said.
Ms Reeves is today talking about young people being forced to move hundreds of miles across the UK to secure high-paying jobs, attacking the “uneven distribution of opportunity”.
Voters were let down by Mr Johnson’s failings on levelling up, with inequality across the UK largely unmoved. Rishi Sunak then symbolically scrapped the northern leg of HS2, a project Labour has not moved to revive.
Ms Reeves risks overpromising and under delivering, letting voters down in the same way as so many of her predecessors.
Analysis: Rachel Reeves has rediscovered the levelling up agenda
09:51 , Athena StavrouThe Independent’s Political Editor David Maddox reports:
Red wall Labour MPs in the north and midlands were complaining recently that the chancellor has ignored their parts of the country in her announcements and speeches.
This is somewhat surprising given that Ms Reeves is a Leeds MP, even if she is a south London woman at heart.
But with Reform and Nigel Farage now breathing down the necks of Labour MPs in those regions and the threats of rebellions, Ms Reeves has suddenly rediscovered “the forgotten parts of the country”.
In her last infrastructure speech the investment was all about the south - Heathrow expansion and silicon valley between Oxford and Cambridge.
Burn now it is regional summits for the north and midlands, and Northern Powerhouse Rail.
The words “levelling up” were taken away from the communities department by Labour but now it is back on the agenda.
Reeves: ‘Britain cannot rely on a handful of places forging ahead of the rest’
09:48 , Athena StavrouThe Independent’s Political Correspondent Archie Mitchell reports:
Rachel Reeves has said the country cannot rely on London and the south east forging ahead, while the north and midlands lag behind.
The chancellor is unveiling billions of pounds of investment in transport infrastructure outside the capital.
She said: “The resource of such thinking has been growth created in too few places and too few people feeling the benefits wide gaps between regions and between our cities and our towns.”
She warned of young people being forced to choose between staying close to home or moving across the country to find better paying jobs.And she added: “I and my colleagues are determined to change things, because I know that there is brilliant talent to be found right across our country.”
Trust in the government is low, Reeves admits
09:46 , Athena StavrouThe Independent’s Political Correspondent Millie Cooke reports:
Trust in the government is low, and “prosperity is too narrowly shared”, the chancellor has admitted.Giving a speech in Manchester, where she is expected to announce billions of pounds of investment in public transport in the North and Midlands, the chancellor said the government “must do more” for people.
“While it is just one quarter, the most recent numbers show Britain to be the fastest growing economy in the G7. And real wages rose more in less than 10 months under Labour than they did over the first 10 years of the previous Conservative government.
“But we know that not enough people are feeling that. The trust remains low and prosperity is too narrowly shared. I know that we must do more”, she said.
Rachel Reeves unveiling £15bn for transport outside London
09:42 , Athena StavrouRachel Reeves has begun her speech in Manchester, where she is unveiling billions of pounds of investment in public transport in the North and Midlands.
She said: “I know that we must do more. In a weeks time I will set out a spending review targeted squarely on the renewal of Britain. Focused on the priorities of working people.
Analysis: Rachel Reeves attempts to win over the north ahead of difficult spending review
09:33 , Athena StavrouThe Independent’s Political Correspondent Millie Cooke reports:
Rachel Reeves is in Manchester today, where she is expected to announce billions of pounds of investment in public transport in the North and Midlands as part of an attempt to win some goodwill ahead of next week’s spending review.
Announcing the £15.6bn package, the chancellor will argue that Britain “cannot rely on a handful of places forging ahead of the rest of the country”.
It comes amid a backdrop of dire poll ratings and concern over the direction of the party from a large number of Sir Keir Starmer’s own MPs.
Meanwhile, voters are braced for difficult cuts at next week’s spending review, where the chancellor will set detailed departmental budgets for most of this parliament.
Today’s speech is an attempt to prove to voters – and the party – that its not always bad news with Labour, and generate some positive press ahead of the stark trade offs we’re likely to see next Wednesday.
Watch live: Live: Rachel Reeves announces £15bn transport projects across UK
09:30 , Athena StavrouRachel Reeves is about to announce billions of pounds of investment in public transport in the North and Midlands.
She is expected to confirm the measures during a speech in Manchester in the next few minutes.
You can watch live here:
Analysis: How the stock markets are reacting to tariff changes
09:14 , Athena StavrouThe Independent’s Business and Money Editor Karl Matchett reports:
The UK and European markets have taken the latest tariff changes in their stride - it's fairly calm waters across the board with most indices either flat or slightly up in morning trading.
The FTSE 250 is up 0.2 per cent, with the FTSE 100 fully flat. The biggest early winners within it are defence firm Babcock (+4pc) and miners Antofagasta, Fresnillo, Endeavour, Anglo American and Glencore (all 1.7-2.7pc up).
Over in France, the CAC 40 is up 0.4pc, Germany's Dax is almost 0.7pc higher and the Euro Stoxx 50 is between them both at 0.6pc in the green. So far, so calm.
Minister cannot guarantee Britain will meet Trump’s tariff deadline
09:05 , Athena StavrouThe Independent’s political correspondent Archie Mitchell reports:
Heidi Alexander refused to guarantee officials would meet Mr Trump’s deadline to fully implement the UK-US deal before the 50 per cent tariffs are imposed.
The transport secretary told BBC Radio 4’s Today programme: “I know that business owners will want to know that we're doing absolutely everything that we can to protect them from these very challenging global economic headwinds.
“It was fantastic news that we got that trade deal with the US.”
Ms Alexander added that she is “really confident” in the government’s ability to fully implement the deal.
Reeves to announce £15bn for transport outside London ahead of spending review
08:56 , Athena StavrouAway from news around Trump’s tariffs, Rachel Reeves is set to tear up Treasury rules as she announces billions of pounds of investment in public transport in the North and Midlands.
The £15.6 billion package for mayoral authorities is expected to include funding to extend the metros in Tyne and Wear, Greater Manchester and the West Midlands, along with a renewed tram network in South Yorkshire and a new mass transit systems in West Yorkshire.
She is also expected to confirm that next week’s spending review will include changes to the rules in the Treasury’s Green Book that determine whether projects receive funding.
The chancellor is expected to announce the investment in a speech in Manchester in the next few minutes.
We’ll keep you updated here.
Minister: ‘No row over spending review’
08:40 , Athena StavrouThe Independent’s political correspondent Archie Mitchel reports:
The transport secretary has denied a row over the chancellor’s spending review, due to be unveiled next Wednesday.
Heidi Alexander said there is a “collegiate atmosphere" in the cabinet, with colleagues “determined to get the economy firing on all cylinders”.
It came after The Independent reported on a revolt against Rachel Reeves and Sir Keir Starmer, with minister warning key manifesto spending promises risk being ditched as a result of the review.
But Ms Alexander told Times Radio: “I know the Chancellor is focused on next week making sure that across the board, we have the money in the right places so that we can deliver on the people's priorities."
Starmer to face PMQs today
08:34Sir Keir Starmer will face his weekly PMQs today in the Commons.
The prime minister will face tough questions from Tory leader and other MPs amid concern Trump’s tariff exemption could be a temporary measure.
He will also likely face questions on the expected announcement from the Chancellor of billions of pounds of investment in public transport in the North and Midlands.
Steel industry welcomes 25% tariffs but warns ‘uncertainty remains’
08:20 , Athena StavrouThe UK steel Industry has welcomed Donald Trump’s decision to keep tariffs at 25 per cent on British goods, but warned that “uncertainty remains” over the final tax rate.
Gareth Stace, the director general of UK Steel, said that Mr Trump’s decision is a “welcome pause”.
He added: “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.”
Full story: UK’s steel industry spared Trump’s new 50 per cent tariffs – White House warns the exemption is conditional
08:10 , Athena StavrouDonald Trump will spare Britain’s steel and aluminium industry from his 50 per cent tariffs on Wednesday, but has given the UK just five weeks to finalise a full exemption.
The US president has given Britain a reprieve as he doubles the levies on imports to he US as he vows to “further secure” American industry.
Sir Keir Starmer’s much-hyped UK-US trade deal unveiled last month should have exempted Britain from steel tariffs completely, but is still yet to be implemented. And Mr Trump has now set a deadline of next month for the deal to be finalised.
Read the full story here:
UK spared Trump’s new 50% steel tariffs – but exemption deal still not in place
Government urged to 'apply rocket boosters' to US negotiations
08:01 , Athena StavrouGareth Stace, director general of UK Steel, urged the Government to “apply rocket boosters” to negotiations to get US tariffs removed from steel imports as soon as possible.
Mr Stace told the BBC’s Radio 4 Today programme: “We need the UK Government to apply rocket boosters to those negotiations with the US administration to get that deal over the line and remove tariffs altogether on our imports and exports to the US market, which is our second biggest export market.”
He said the last months and weeks had been a “rollercoaster ride of uncertainty”, adding: “We woke up on Saturday morning to the president saying he’s going to increase tariffs to 50%.
“All of the UK steel exporters were in touch with their customers, almost all of them were cancelling those orders or pausing indefinitely.
“Now they will have to get back in touch with those customers and say: ‘Are those deals back on or not?'”
Britain given 5 weeks to finalise exemption
08:01 , Athena StavrouBritain escaped a hike to steel tariffs - but has just five weeks to finalise a full exemption.
Sir Keir Starmer’s much-hyped UK-US trade deal unveiled last month should have exempted Britain from steel tariffs completely, but is still yet to be implemented. And Mr Trump has now 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.
Trump temporarily spares UK from new 50% tariffs in last-minute exemption
07:54 , Athena StavrouDonald Trump will spare Britain’s steel and aluminium industry from his 50 per cent tariffs on Wednesday.
The US president has given Britain a reprieve as he doubles the levies on imports to he US as he vows to “further secure” American industry.
It means 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.
