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The Independent UK
The Independent UK
Nicole Wootton-Cane,Karl Matchett,Millie Cooke,David Maddox and Bryony Gooch

Starmer orders foreign interference review after ex-Reform leader in Wales jailed for pro-Russia bribes - latest

An independent review of foreign financial interference in UK politics will take place after a former MEP as jailed for taking Russian bribes.

It comes as Nathan Gill, an MEP for UKIP and the Brexit Party, before joining Reform UK under Nigel Farage where he served as its leader in Wales, was sentenced to 10 and a half years in prison for taking money to make pro-Russian statements.

Housing, communities and local government secretary Steve Reed said of the revew: “The facts are clear. A British politician took bribes to further the interests of the Russian regime, a regime which forcefully deported vulnerable Ukrainian children and killed a British citizen on British soil, using a deadly nerve agent.

“This conduct is a stain on our democracy. The independent review will work to remove that stain.”

Meanwhile, Sir Keir Starmer is under growing pressure to intervene as top politicians urged him to back the BBC, which is set to fight a $10bn defamation lawsuit filed by Donald Trump over its Panorama speech edit, the broadcaster has said.

Key points

  • Sir Keir Starmer under pressure to intervene as Trump sues BBC
  • BBC will fight lawsuit, broadcaster says
  • Analysis: Why not even ‘Trump whisperer’ Starmer can save the BBC from the US President’s wrath
  • UK unemployment rate rises, fresh data shows
  • BBC right to 'stand firm', minister says
  • Government launches investigation into foreign money in UK politics

Yvette Cooper does not rule out Starmer visit to China despite Jimmy Lai case

14:44 , Bryony Gooch

David Maddox, Political Editor reports:

Yvette Cooper is facing questions from the foreign affairs committee in the Commons today and has come under pressure over the Jimmy Lai case.

Former Tory cabinet minister Sir John Whittingdale has pressed her on arbitrary imprisonment of British citizens abroad including the Hong Kong based businessman who is a British citizen.

Specifically seeking answers on the Jimmy Lai case he suggested that the “strongest response” would be for the prime minister not to visit until he is released.But the foreign secretary refused to rule out the trip from Sir Keir with the PM expected to go to China early next year.

She said: “Our focus at the moment is the release of Jimmy Lai.”

The pro-democracy campaigner was arrested and imprisoned in August 2020 but this week was found guilty of national security offences in Hong Kong.

Why are young people disproportionately affected by unemployment?

14:30 , Nicole Wootton-Cane

Today’s figures from the ONS show young people are particularly badly affected by what it called a “subdued” labour market.

The data shows unemployment jumped by 47,000 for those aged between 25 and 34, while it was 28,000 higher for those aged 16 and 17.

Jack Kennedy, senior economist at Indeed, said industries such as hospitality and retail, which typically employ younger people, have been struggling to hire after hikes to National Insurance rates.

“Hospitality and retail, already disproportionately affected by last year’s rise in employer National Insurance contributions, have seen hiring capacity eroded,” he said.

“As these sectors traditionally provide key entry points for younger workers, the weakening outlook raises growing concerns about rising youth unemployment.”

Government launches investigation into foreign money in UK politics

14:11 , Bryony Gooch

The Government has launched an independent review of foreign financial interference in UK politics, after the jailing of a former MEP for taking Russian bribes.

Housing, Communities and Local Government Secretary Steve Reed said the conduct of Nathan Gill, who was sentenced to 10 and a half years in prison for taking money to make pro-Russian statements, was a “stain” on British democracy.

Gill was an MEP for Ukip and the Brexit Party, led by Nigel Farage, before joining Reform UK under Mr Farage, where he served as its leader in Wales.

Mr Reed told MPs that the review would be chaired by former top civil servant Philip Rycroft, who had worked in the Cabinet Office and Department for Exiting the EU under previous Conservative governments.

Nathan Gill received £40,000 for making pro-Russian statements in the European Parliament (James Manning/PA) (PA Wire)

Russia is a threat to the UK and our sons and daughters must be ready to fight, armed forces chief warns

14:00 , Nicole Wootton-Cane

Russia is a growing threat to the UK and the nation’s “sons and daughters” must be ready to fight in the event of an attack, the head of the British armed forces has warned.

Making the case for a society-wide approach to “defence and deterrence”, chief of defence staff Sir Richard Knighton said the situation is “more dangerous than I have known during my career”.

He called on “people who are not soldiers, sailors or aviators to nevertheless invest their skills – and money” on building up national resilience.

The Independent’s political correspondent Millie Cooke has more below:

Russia is a threat and our children must be ready to fight, armed forces chief warns

ICYMI: Britain hails ‘golden age’ in South Korea relations after crucial trade deal struck

13:30 , Nicole Wootton-Cane

A new free trade agreement between the UK and South Korea has successfully averted impending tariff increases on British exports, securing vital trade links.

This crucial pact is set to safeguard £2 billion worth of UK exports, which were otherwise facing higher tariffs from January as a temporary arrangement with Seoul was nearing its expiry.

You can read more below:

Britain hails ‘golden age’ in South Korea relations after crucial trade deal struck

Murderers who kill current or former police, prison or probation officers because of their jobs will likely get whole-life sentences, Lammy says

13:15 , Nicole Wootton-Cane

David Lammy is currently addressing the Commons during justice questions.

He has said murderers who kill current or former police, prison or probation officers because of their jobs will likely get whole-life sentences.

Mr Lammy said he was broadening the range of whole-life orders, as he referenced the murder of prison officer Lenny Scott in 2024.

He told the Commons: “I’d like to pay tribute to Lenny Scott who was a dedicated prison officer and much loved family man. In 2020 he seized an illicit mobile phone from a prisoner who took revenge four years later by taking his life in broad daylight.

“Perpetrators of heinous killings like these must feel the full force of the law. I can announce today that we will broaden the starting point for whole-life orders to include murders connected to the current or former duties of a police, prison or probation officers.

“This means offenders can expect to spend the rest of their lives behind bars. It is the latest step this government is taking to keep our hard working prison and probation staff safe.”

(PA)

Starmer should have already intervened in Trump lawsuit, former culture secretary says

13:00 , Nicole Wootton-Cane

Sir John Whittingdale, the former culture secretary who led the last charter renewal negotiations with the BBC, has told The Independent that Sir Keir Starmer should have already intervened to dissuade Trump from taking legal action.

“In the end this is our national broadcaster we are talking about and it is extremely damaging for this to happen,” he said.

“I think the action is largely symbolic because it will be very hard for Donald Trump to prove damages, but it should never have got to this point.

“The prime minister is supposed to have this strong relationship with the president and he should have intervened in the conversations he has had with him before this happened.

“He certainly needs to get on the phone now to the president about it. This is bad for the BBC, bad for Britain’s reputation and bad for Trump himself.”

Conservative former minister Sir John Whittingdale (PA Archive)

'There are clearly areas on which we disagree', Starmer says of Trump

12:54 , Nicole Wootton-Cane

The Independent’s political correspondent Millie Cooke reports:

Sir Keir Starmer has said there are "clearly areas on which we disagree", following Donald Trump's decision to sue the BBC for $10bn.

It is understood the two leaders have not spoken in the 24 hours since the news emerged he had filed a case. The prime minister's official spokesperson said "any legal action is a matter for the BBC itself".

He added: "[The prime minister] has a strong relationship with the president. The president has said the same thing the other way, but there are areas on which clearly we disagree."

Starmer and Trump have not spoken since lawsuit filed, Downing Street says

12:46 , Nicole Wootton-Cane

Sir Keir Starmer has not spoken to Donald Trump since he filed a $10bn lawsuit against the BBC on Monday, Downing Street has said.

It added it will “always defend the principle of a strong, independent BBC” but that it is “vitally important” the broadcaster acts to “maintain trust, correcting mistakes quickly when they occur.”

The prime minister’s official spokesman said: “Obviously you’ve seen the BBC’s response, and any legal action is a matter for the BBC itself.

“They’ve made clear they believe there’s no case around the broader point of defamation or libel, but that’s for them and their legal teams to engage with, but as we’ve said previously, we will always defend the principle of a strong, independent BBC as a trusted and relied upon national broadcaster, reporting without fear or favour.

“But as we’ve also consistently said, it’s vitally important that they act to maintain trust, correcting mistakes quickly when they occur.”

Asked if it would be acceptable for licence fee-payers to fund a potential defamation settlement, he said: “I think we’re getting a bit ahead of ourselves.”

Tice refuses to condemn Reform mayoral candidate's comments telling David Lammy to 'go home'

12:45 , Nicole Wootton-Cane

Richard Tice has refused to criticise a comment made by a Reform UK mayoral candidate who said deputy prime minister David Lammy should “go home” to the Caribbean.

Reform deputy leader Mr Tice could not be drawn on several questions over the remark by Hampshire and the Solent mayoral candidate Chris Parry during a press conference on Tuesday.

“I’m not familiar with what was said,” Mr Tice told reporters.

“At the end of the day, David Lammy, he’s a Cabinet minister. Whether we think he’s doing a good job or a bad job, is just part of politics.

“That’s day to day life and he will, I’m sure, continue to claim he’s doing a great job. We challenge him.”

After Mr Parry’s comment was read out to him, Mr Tice declined to respond further, saying only: “I’ve given an answer.”

Kemi Badenoch quoted in 'fake news' evidence in Trump lawsuit

12:30 , Nicole Wootton-Cane

Tory party leader Kemi Badenoch has been quoted in Donald Trump’s lawsuit as evidence of his claims over the BBC’s “fake news”.

In the lawsuit it says: “Conservative party leader and member of parliament Kemi Badenoch said that the distortion of the speech by the Panorama documentary was ‘absolutely shocking’, adding: ‘That is fake news, actually putting different things together to make something look different from what it actually was’.

“She continued: ‘And I do think heads should roll. Whoever it was who did that should be sacked, that’s what Tim Davie should be doing, identifying who put out misinformation, and sacking them.’

“Badenoch added: ‘The public need to be able to trust our public broadcaster .. . They should not be telling us things that are not true. This is a corporation that needs to hold itself to the highest standards, and that means that when we see people doing the wrong thing, they should be punished, they should be sacked.’”

BBC wants change to 'deliver for the UK for generations to come', Tim Davie says

12:15 , Nicole Wootton-Cane

Outgoing BBC director-general Tim Davie has responded to the launch of the royal charter review and said the BBC wants change “so we can continue to deliver for the UK for generations to come”.

“We welcome the publication of the government’s Green Paper and the start of the public consultation on the future of the BBC”, he said.

“We urge everyone who cares about the success of the UK’s world-leading creative industries to have their say.

“At the BBC we want change so we can continue to deliver for the UK for generations to come.

“We want to secure a public service BBC that is independent, sustainably funded for the long term, and meets our audience’s needs.”

BBC director-general Tim Davie resigned in the fallout from the row (Lucy North/PA) (PA Wire)

Reform UK announce working group on 'broken' Send system

11:52 , Nicole Wootton-Cane

Reform UK’s deputy leader Richard Tice has announced a working group to examine issues in the “broken” special educational needs and disabilities (Send) system.

He told a Westminster press conference that the group will be chaired by Reform’s Greater Lincolnshire Mayor Dame Andrea Jenkyns.

“The Send system is broken in Britain, and Reform are determined to fix it. And that’s why I’m announcing today that we are setting up a Send working group to be chaired by Dame Andrea Jenkins, who has considerable professional and personal experience in this sector.”

He said Reform councillors and experts will also join the group, which will produce an interim report in the first quarter of 2026.

(PA)

51 MPs and peers urge Lammy to meet Palestine Action hunger strike lawyers

11:47 , Nicole Wootton-Cane

A group of 51 MPs and peers have come together to write to home secretary David Lammy over the fate of eight Palestine Action protesters on hunger strike in prison.

The letter, seen by the Press Association, expresses “dismay” at the government’s “lack of action to protect the health and wellbeing of British citizens”.

Labour MPs Rachael Maskell (York Central), Bell Ribeiro-Addy (Clapham and Brixton Hill), Paula Barker (Liverpool Wavertree), Mary Kelly Foy (City of Durham) and Simon Opher (Stroud) are among the 51 signatories to the letter.

Also on the list are former Labour leader Jeremy Corbyn and Mother of the House Diane Abbott, who both now sit as independent MPs, as well as Labour MP John McDonnell (Hayes and Harlington).

A Ministry of Justice spokesperson responded that the deputy prime minister is “being kept informed of the situation” and that “appropriate action” will always be taken.

In pictures: Cabinet arrive for Downing Street meeting

11:45 , Nicole Wootton-Cane

Foreign Secretary Yvette Cooper (PA)
Energy Security and Net Zero Secretary Ed Miliband and Defence Secretary John Healey (right) (PA)
Peter Kyle, the Secretary of State for Business and Trade (Getty)
Heidi Alexander, the Secretary of State for Transport (Getty)
Lisa Nandy, the Secretary of State for Culture, Media and Sport (Getty)

Doctors reject claims patients will die as result of strike action

11:30 , Nicole Wootton-Cane

The NHS is bracing itself for resident doctors to walk out for a five-day strike from 7am tomorrow.

It comes after members of the British Medical Association (BMA) voted to reject Wes Streeting’s latest offer and go ahead with industrial action in the run-up to Christmas.

Former BMA member Lord Winston, who quit the union in protest over the strikes, said on Monday that he thought people would die as a result.

But BMA chiefs have rejected claims that people may die. Dr Shivam Sharma, deputy chairman of the BMA’s resident doctors committee, told LBC Radio: “I would completely disagree with that, and I want to be evidence-based – we know that senior colleagues, consultants will be covering this strike action, and we know that studies have shown that mortality rates do not increase, they stay the same, if not decrease during strike action because we have those experienced senior consultants that are covering.

“And actually, what’s dangerous for patients is continuing down this trend where doctors continue to leave, patients aren’t getting the care that they deserve, and doctors are feeling that they’re in a system that is setting them up to fail.”

Britain would have faced 'business Armageddon' without government loan scheme during Covid, Sunak says

11:15 , Nicole Wootton-Cane

Rishi Sunak has said Britain would have faced “widespread business Armageddon” if the government did not intervene with a loan scheme to see them through the Covid-19 pandemic.

Speaking at the UK Covid-19 Inquiry for a second day, former prime minister and chancellor Mr Sunak insisted the risks of businesses not paying back Covid-era loans was “unequivocally” worth it, when balanced against the risks of inaction.

He told the inquiry: “To go back to these couple of weeks… it felt existential.

“We were facing a situation where businesses, I think it actually came from the British Chambers of Commerce, I think something like half of all small and medium-sized businesses had less than a month’s cash in the bank.

“You were facing widespread business Armageddon and that is why there was an imperative to act at scale and at pace to prevent what I think would have been catastrophic loss of businesses and jobs. The independent evaluation has suggested up to 3 million jobs and half a million businesses that were saved as a result of these interventions.”

He added: “There was an imperative to get this right and to get it out, and get the money to the businesses as soon as humanly possible, and you just did not have the luxury of, quite frankly didn’t have the luxury of weeks, let alone months. If a business out of cash, and it goes bankrupt, it goes bankrupt. That’s that.”

(PA Media)

Watch: Former BBC director says broadcaster should not pay Trump

11:00 , Nicole Wootton-Cane

BREAKING: BBC will fight lawsuit, broadcaster says

10:43 , Nicole Wootton-Cane

The BBC has said it will fight a lawsuit filed by Donald Trump over edited clips of a speech that made it appear he directed supporters to storm the US Capitol on January 6, 2021.

"As we have made clear previously, we will be defending this case. We are not going to make further comment on ongoing legal proceedings," a BBC spokesperson said.

Watch live: Rishi Sunak gives evidence to Covid-19 inquiry for second day

10:40 , Nicole Wootton-Cane

Rishi Sunak is giving evidence to the Covid-19 inquiry for a second day.

You can watch it live below:

Watch live: Rishi Sunak gives evidence to Covid-19 inquiry for second day

Elsewhere in politics

10:30 , Nicole Wootton-Cane

Away from Trump’s lawsuit, here are today’s headlines in politics:

Keir Starmer has suffered a blow after five Labour councillors in London announced they were defecting to the Green Party

• The prime minister has called for a police crackdown on antisemitic chanting at demonstrations, including pro-Palestine marches, saying the government “won’t tolerate” it

• The health secretary has blasted doctors as “self-indulgent” and “dangerous” after they voted to push ahead with a five-day strike in the run-up to Christmas

Reform UK has announced plans to cut 68,500 civil service jobs should the party win the next general election

• A new free trade agreement between the UK and South Korea has successfully averted impending tariff increases on British exports

Government will review licence fee in charter renewal

10:20 , Nicole Wootton-Cane

The government will consider reforming the licence fee as part of the renewal process of the BBC’s royal charter, the Department for Culture, Media and Sport (DCMS) has announced.

The charter sets outs the BBC’s public purpose and is the constitutional basis for the corporation, which is predominantly funded through the licence fee paid by UK households who watch TV.

The government will look at whether licence fee concessions should be updated, options for the BBC to generate more commercial revenues, and also options for funding the BBC World Service to support sustainable funding for minority language broadcasting.

Culture Secretary Lisa Nandy launched the once-in-a-decade review on Tuesday and said: “We want the BBC to continue to enrich people’s lives, tell Britain’s story and showcase our values and culture at home and overseas long into the future.

“My aims for the charter review are clear. The BBC must remain fiercely independent, accountable and be able to command public trust.“It must reflect the whole of the UK, remain an engine for economic growth and be funded in a way that is sustainable and fair for audiences.

“As a government, we will ensure that this charter review is the catalyst that helps the BBC adapt to a rapidly changing media landscape and secures its role at the heart of national life.”

(PA Archive)

BBC right to 'stand firm', minister says

10:15 , Nicole Wootton-Cane

The BBC is right to “stand firm” in the face of Donald Trump’s defamation lawsuit, a minister has said.

Stephen Kinnock also said the public broadcaster had been “very clear that there is no case to answer” when it came to accusations of libel.

He told Sky News: “I think they have apologised for one or two of the mistakes that were made in that Panorama programme, but they’ve also been very clear that there is no case to answer in terms of Mr Trump’s accusations on the broader point about libel or defamation.

“So, you know, I think it’s right that the BBC stands firm on that point.

“Yes, there were some mistakes made in that particular piece of film, but I think the broader argument that they were making; they’re right to stick by their guns on that and I hope that they will continue to do so.”

Stephen Kinnock suggested the corporation was right to argue its case against the US president (Victoria Jones/PA) (PA Archive)

Analysis: Why not even ‘Trump whisperer’ Starmer can save the BBC from the US President’s wrath

10:00 , Nicole Wootton-Cane

Why not even ‘Trump whisperer’ Starmer can save BBC from US President’s wrath

Sir Keir Starmer under pressure to intervene as Trump sues BBC

09:45 , Nicole Wootton-Cane

Sir Keir Starmer is under growing pressure to intervene after President Donald Trump filed a defamation lawsuit against the BBC over its Panorama edit.

Liberal Democrat leader Sir Ed Davey has urged the prime minister to “stand up for the BBC against Trump’s outrageous legal threat”.

Sir Ed said: “Keir Starmer needs to stand up for the BBC against Trump’s outrageous legal threat and protect licence fee payers from being hit in the pocket.

“The Trump administration has clearly set out they want to interfere in our democracy, which includes undermining our national broadcaster. The prime minister needs to make clear this is unacceptable.”

Minister Stephen Kinnock said the Labour Party will “always stand up for the BBC as a vitally important institution” but insisted that it is an “independent organisation”.

Asked whether Sir Keir Starmer should defend the broadcaster against Mr Trump’s threats, Mr Kinnock told Sky News: “It's absolutely right that the BBC is an independent organisation.

“I think they have apologised for one or two of the mistakes that were made in that Panorama programme, but they’ve also been very clear that there is no case to answer in terms of Mr Trump’s accusations on the broader point about libel or defamation.

“I think it’s right that the BBC stands firm on that point. They’re right to stick by their guns on that.”

He added: “The government is a massive supporter of the BBC. The Labour Party will always stand up for the BBC as a vitally important institution in both our political life and, of course, in terms of entertaining and informing the British public.”

US President Donald Trump (PA Wire)

Recap: UK economy unexpectedly shrank in October in fresh blow for Rachel Reeves

09:30 , Nicole Wootton-Cane

Today’s news comes amid a bleak economic backdrop for chancellor Rachel Reeves.

The UK economy shrank by 0.1 per cent in October - meaning it has not grown since June.

You can read more below:

UK economy unexpectedly shrank in October in fresh blow for Rachel Reeves

Businesses face uncertainty over hiring, business chief says

09:00 , Nicole Wootton-Cane

Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce said the latest data paints a “gloomy picture” that reflects the uncertainty businesses have around hiring.

“The latest data paints a gloomy picture for jobs, opportunities and growth,” she said.

“It reflects what businesses tell us – they are less confident about hiring staff due to sky-high employment costs and a tidal wave of new employment legislation coming down the track.

“While there has been some easing of cost pressures - with average earnings including bonuses slowing to 4.7 per cent in the three months to October - labour costs remain a challenge. Nearly three quarters (72 per cent) of businesses in our latest survey said labour costs are the biggest cost pressure they are facing.

“There is a limit to how much additional cost firms can absorb without an impact on investment and growth. The further increase in unemployment, hitting 5.1 per cent in October, is also a clear sign of the sluggish economy.

“We need a laser like focus on stimulating growth and boosting investment, trade, innovation and skills. The government must work in partnership with business to make 2026 a year of delivery.”

'Vital' that unemployed people get help they need, TUC chief says

08:40 , Nicole Wootton-Cane

We’re getting more reaction in to today’s fresh unemployment figures.

TUC (Trades Union Congress) general secretary Paul Nowak said the government must now prioritise helping those who are not in work.

“When the economy starts to recover, the jobs market will follow – and it is welcome that vacancies now look to have stabilised. But with unemployment rising and real wage growth slowing, the priority must be boosting demand,” he said.

“This week, the Bank of England needs to support the economy with a further interest rate cut – making it easier for firms to invest and households to spend.

“And with the effects of the recent economic slowdown continuing to feed into the labour market, it is vital that those who are out of work get the help they need.

“Experience of real work is best way to help young people who are starting out, and the new youth guarantee can be a major step forward for improving young people’s prospects.

“Let’s be clear – good quality jobs are the foundation of a strong economy, and go hand in hand with high productivity growth. That’s why the Employment Rights Bill is so important.”

Government 'absolutely focused' on getting more jobs into the economy, says minister

08:30 , Nicole Wootton-Cane

The Independent’s political correspondent Millie Cooke reports:

The government is "absolutely focused on getting more jobs, getting better paid jobs" into the UK economy, a minister has insisted after new figures showed that the rate of UK unemployment has risen to 5.1 per cent in the three months to October.

Asked whether he accepts that unemployment has risen under Labour, Stephen Kinnock told Sky News: "We've also created hundreds of thousands of new jobs in our country. We've had the highest growth rate."

But pressed again on whether he accepts that unemployment has risen, he said: "Well, the way to create more jobs is to create growth, and that is what this government is completely focused on, with billions of pounds of additional investment."

He added: "We're absolutely focused on getting more jobs, getting better paid jobs. We've also seen the minimum wage increasing substantially, so we're dealing with that cost of living side. We, of course, want more jobs in our economy, but we want them to be well paid job where people are really able to move on in life and get up that ladder. That is what this Labour government is about."

How is unemployment affecting young people?

08:25 , Nicole Wootton-Cane

Young people are particularly badly impacted by the faltering labour market, new figures from the ONS show.

Unemployment jumped by 47,000 for those aged between 25 and 34, while it was 28,000 higher for those aged 16 and 17.

Across the market, vacancies fell slightly, down 2,000 to 729,000 between September and November.

Ben Harrison, director of the Work Foundation at Lancaster University, a leading think tank for improving working lives in the UK, said there are now 546,000 young people aged 18-24 who are unemployed – the highest since 2015 and up by 85,000 on quarter.

“Most worryingly it appears it is getting harder for these workers to access work,” he said. “Long-term unemployment has risen by 93,000 on the year, with the challenge of finding work exacerbated by an increasingly competitive jobs market as vacancies are down on the year by 78,000.

“On the day that the government has announced the Milburn Review into youth unemployment, these figures also lay bare the tough jobs market facing young people, and indicate policymakers must pick up the pace on boosting the number of secure, well-paid jobs through its Industrial Strategy and in rolling out additional tailored employment support to help people back into work quickly.”

ICYMI: New index reveals Reeves’ Budget has downgraded the value of a British passport

08:15 , Nicole Wootton-Cane

The UK’s attractiveness as a destination for entrepreneurs and investment has been badly hit by Rachel Reeves’ Budget, according to a respected international index.

The latest annual Nomad Capitalist Passport Index has suggested that tax hikes have added obstacles to employ people and the abolition of non-dom status in the UK has harmed the country’s reputation abroad.

The index has revealed that the UK dropped 14 places from its position in 2024 of 21st to 35th.

The Independent’s political editor David Maddox has more below:

New index reveals Reeves’ Budget has downgraded the value of a British passport

Analysis: UK unemployment growth likely to result in cut in interest rates

08:00 , Nicole Wootton-Cane

Analysis from The Independent’s business and money editor Karl Matchett:

UK unemployment has been steadily climbing since the middle of last year - it was just 4.1 per cent in summer 2024 - but the growth rate of unemployment has also been rising faster of late.

Outside of Covid, where unemployment briefly hit 5.3 per cent, the last time it was at this level was back in the first three months of 2016, very nearly a decade ago.

As well as rising unemployment, today's data shows wage growth continuing to slow - though at 4.6 per cent it's still above the rate of inflation.

Beyond the obvious concern of fewer people working, the immediate knock-on effect of this data is likely to be another firm check in the box for an interest rates cut on Thursday.

Tories hit out at Labour's 'growth-killing policies'

07:56 , Nicole Wootton-Cane

The Conservatives blamed Labour’s “growth-killing policies” for rising unemployment figures.

Shadow work and pensions secretary Helen Whately said: “Losing your job is hard at the best of times, but in the run up to Christmas it’s particularly cruel.

“But thanks to Labour’s growth-killing policies, that’s the sad reality for many people this Christmas.”

She pointed to the hike on employer national insurance contributions and the measures included in the Employment Rights Bill.

Shadow business secretary Andrew Griffith said Labour were “pursuing a suite of anti-business policies that is sending employers to the wall”.

Figures show 'scale of challenge' Labour inherited, minister says

07:46 , Nicole Wootton-Cane

The work and pensions secretary said figures showing the unemployment rate at its highest level for nearly five years reflect the “scale of the challenge” Labour inherited.

Pat McFadden said: “There are over 350,000 more people in work this year and the rate of inactivity is at its joint lowest in over five years, but today’s figures underline the scale of the challenge we’ve inherited.

“That is why we are investing £1.5 billion to deliver 50,000 apprenticeships and 350,000 new workplace opportunities for young people – giving them real experience and a foot in the door.

“To go further and tackle the deep-rooted issues of our labour market, Alan Milburn is also leading an investigation into the whole issue of young people inactivity and work.”

Work and Pensions Secretary Pat McFadden (PA)

Data shows 'weakening labour market', ONS chief says

07:38 , Nicole Wootton-Cane

The ONS chief has said the latest unemployment figures are evidence of a “weakening” labour market.

Following the release of its latest figures on Tuesday morning, ONS director of economic statistics Liz McKeown said: “The overall picture continues to be of a weakening labour market.

“The number of employees on payroll has fallen again, reflecting subdued hiring activity, while firms told us there were fewer jobs in the latest period.

“This weakness is also reflected in an increase in the unemployment rate while vacancies remained broadly flat.

“The fall in payroll numbers and increase in unemployment has been seen particularly among some younger age groups.”

(PA Wire)

Earnings growth falls

07:27 , Nicole Wootton-Cane

UK average regular earnings growth fell to 4.6 per cent in the three months to October and was 0.9 per cent higher after taking Consumer Prices Index inflation into account, the Office for National Statistics has said.

Unemployment rate rises

07:24 , Nicole Wootton-Cane

The rate of UK unemployment rose to 5.1 per cent in the three months to October, up from 5 per cent in the three months to September, the Office for National Statistics said.

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