Reform plan to cap aid at £1bn would damage UK’s international influence, critics warn

Plans by Reform UK to slash the aid budget by 90% would not cover existing contributions to global bodies such as the UN and World Bank, shredding Britain’s international influence and risking its standing within those organisations, charities and other parties have warned.Under cuts announced by Nigel Farage in November, overseas aid would be capped at £1bn a year, or about 0.03% of GDP. Keir Starmer’s government is already set to reduce aid from 0.5% of GDP to 0

Keir Starmer told closer EU trade ties ‘strategic necessity’ for UK firms

Keir Starmer’s government has been told a closer EU trade deal is a “strategic necessity” for companies in Britain as growing numbers of exporters find it tougher to do business under the UK’s post-Brexit agreement.Calling on Labour to accelerate its reset with Brussels, the British Chambers of Commerce (BCC) said the UK’s existing trade and cooperation agreement (TCA) was failing to help them grow their sales in the EU.More than half (54%) of exporters in a survey of almost 1,000 businesses – the majority of which were small and medium-sized firms – said the trade deal negotiated by Boris Johnson’s government and enacted in 2021 was not helping them.Highlighting an ongoing economic hit from Brexit, the BCC said this was a 13 percentage point increase from the proportion of firms that were unhappy in a similar survey a year earlier.Adding to pressure on Labour to take action to support the economy after a challenging year for businesses, it said that just four out of the 946 firms surveyed thought the support from the government on dealing with trade policy changes was comprehensive

Labour calls to rejoin EU customs union will become harder for Starmer to resist

When Keir Starmer stood on the Labour conference stage in 2018 and defied Jeremy Corbyn to call for a second Brexit referendum with remain as an option, it put him in pole position to become the next Labour leader.Starmer must now feel a sense of deja vu watching Wes Streeting, the most out-and-out pretender for the leadership, follow a similar playbook. In an interview over the weekend, the health secretary strayed from the official government line to call for “a deeper trading relationship” with the EU.Speaking to the Observer, Streeting implied that joining a customs union with Europe would give Labour a distinctive message with which to take on Nigel Farage at the next general election.To many Westminster observers, the obvious point is that, like Starmer’s intervention in 2018, Streeting’s remarks align him with the Labour members and voters who overwhelmingly support stronger ties with Europe

More than 75% of Labour, Lib Dem and Green voters think PM should open talks on joining EU customs union – as it happened

Wes Streeting, the health secretary, used an interview with the Observer published at the weekend to suggest that he favours joining a customs union with the EU. This is something that Keir Starmer has ruled out.But Labour supporters back Streeting on this. According to YouGov polling for the Times, 80% of people who voted Labour at the last general election say a future leader should open negotiations on joining a customs union with the EU.The polling also found that around 70% of people who voted Labour, Lib Dem or Green at the last election said that a future leader should open talks on rejoining the EU

Rachel Reeves sets early March date for spring statement as OBR prepares forecast

Rachel Reeves has set a date of 3 March for an early spring statement, as Labour attempts to draw a line under a year of tax speculation that business leaders blamed for damaging Britain’s economy.Announcing a date to prioritise “stability and certainty”, the Treasury said the chancellor had asked the Office for Budget Responsibility (OBR) to prepare forecasts for the economy and public finances.Reeves has come under fire over the buildup to this year’s autumn budget after months of leaks, briefings and tax speculation contributed to a downturn in consumer spending and businesses freezing their investment plans.Britain’s economy unexpectedly shrank in October, while the Bank of England forecasts that growth is on track to flatline in the fourth quarter. Business groups have also warned of a sharp fall in private sector activity at the turn of the year, with companies putting their spending decisions and hiring plans on hold

Britain’s economy has been damaged by Brexit. But what should ministers do about it?

Almost a decade on from the Brexit vote, the verdict is clear. Britain’s immediate doomsday economic scenario might not have come to pass. But after years of political paralysis – and with the eventual introduction of tougher trade barriers in 2020 – trade, investment and growth in living standards have all suffered.Just as it was on the morning after the 2016 referendum, the big fight is about what the government should do in response.At the weekend, Wes Streeting became the latest frontbench Labour politician to call for a deeper trading relationship with the EU