Labour-supporting unions predict Starmer will not lead party into next election
Keir Starmer will not lead his party into the next general election, Labour-supporting unions have predicted, in an intervention that threatens to further destabilise the prime minister after a damaging few days.The 11 Labour-affiliated unions – which include Unite, Unison and the GMB – are expected to issue a joint statement on Wednesday saying “at some stage” the party will have to put a plan in place to elect a new leader.At a private meeting on Tuesday, the unions were divided over whether to call for Starmer to set out a timetable for his departure, with one source telling the Guardian there had been a “big fight” among union officials.However, they are understood to have agreed to issue a statement saying they expect there to be a change of leadership, despite GMB and Community arguing it was not in the unions’ best interests to get involved in leadership wrangling.In a leaked copy of the statement, the unions said it was clear to them that Labour “cannot continue on its current path”, and despite some progress it was not doing enough to deliver the change people voted for at the last election.
They urged the party leadership to focus on the “fundamental change of direction on economic policy and political strategy” they said working people needed, rather than the “personalities and unfolding political drama” at Westminster,Starmer was increasingly confident that he had seen off the immediate threat to his job on Tuesday after a challenge from Wes Streeting failed to materialise despite several of the health secretary’s allies quitting the government,But the prime minister’s fragile authority has been weakened by the resignation of four ministers – three of them close allies of Streeting – in what appeared to be an orchestrated move,More than 90 Labour MPs have also called for him to go since the weekend,Starmer, who told his cabinet he would fight on as prime minister after a turbulent few days, was hoping that his second king’s speech on Wednesday would be another reset moment for the government to help unite his deeply divided party.
While he appears to have survived for now, even his most loyal ministers have privately acknowledged that he is unlikely to take Labour into the next election, unless he can dramatically turn round his and the government’s fortunes.In their draft statement, which is due to be released on Wednesday, the union general secretaries wrote: “Labour’s affiliated unions have been clear that Labour cannot continue on its current path.“Whilst we recognise progress has been made, such as aspects of the Employment Rights Act and the increase in the minimum wage, the results at the election last week were devastating.“Labour is not doing enough to deliver the change that working people voted for at the general election.Our focus is on the fundamental change of direction on economic policy and political strategy that unions have been clear is needed, and not on the personalities and unfolding political drama in Westminster.
”But they added: “It’s clear that the prime minister will not lead Labour into the next election, and at some stage a plan will have to be put in place for the election of a new Leader.“This is a point where the future of the party we founded will be debated and determined – and we are working closely as unions to shape a shared vision on policy, political strategy and economic policy that will reorient Labour back to working people, so Labour do what it was elected to do: govern in the interests of workers.”Union officials were frustrated when Starmer pulled out of a meeting of the Trade Union and Labour Party Liaison Organisation [TULO] due on Tuesday, but agreed to meet for talks anyway.The Labour leadership has had an increasingly tense relationship with the unions – which help to fund the party – since coming to power, despite big wins for unions on issues including workers’ rights and the minimum wage.Some union leaders have urged Starmer to quit, with Unite’s Sharon Graham saying the “writing is on the wall” for the prime minister after last week’s election disaster.
Others have urged the party to focus on its plan to change the country rather than arguing about the leadership.
Milka maker milked shoppers over size of chocolate bars, German court rules
Many chocolate lovers consider shrinkflation a serious crime – and they have been vindicated after a German court ruled that the makers of Milka cheated consumers by cutting the bar’s size, while keeping the wrapper the same.The three-week case in a regional court was brought by Hamburg’s consumer protection office. It accused the chocolate brand’s US owner Mondelēz of deceiving shoppers by cutting the weight of Milka’s classic Alpine Milk bar from 100g to 90g without significantly altering the distinctive purple packaging.Shrinkflation, where product sizes are reduced but prices stay the same (or even go up), has become all too common as manufacturers try to offset rising business and ingredient costs.After last year’s changes, the Milka bar was a millimetre thinner and the price increased from €1
Global oil inventories falling at record pace amid Iran war; US producer price inflation hits four-year high – as it happened
Global oil stocks are being run down at a record pace as supply losses mount due to the ongoing Iran war, the International Energy Agency has warned.In its latest outlook report, the IEA reports that global oil inventories fell by 129 million barrels in March, and by a further 117 million barrels in April, as countries dipped into their reserves to cover the shortfall following the Middle East conflict.The IEA, which ordered the largest release of government oil reserves in its history in mid-March, reports:double quotation markMore than ten weeks after the war in the Middle East began, mounting supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace.The IEA also forecasts weaker demand this year, as the jump in prices for crude oil and refined products leads to demand destruction.World oil demand is forecast to contract by 420,000 barrels per day this year, to 104m bpd, which is 1
Nissan ponders building cars for Chinese rivals at Sunderland plant
Nissan’s chief executive has confirmed he would consider building cars for other manufacturers at the UK’s largest car factory in Sunderland, amid talks with China’s Chery.Ivan Espinosa said Nissan was “looking at options” for Sunderland and its 6,000 workers as the struggling Japanese carmaker on Wednesday reported steep losses for the year to March.Nissan announced last week it was closing one of its two production lines at Sunderland, in north-east England, because of faltering demand for its vehicles. However, it has held talks to produce vehicles on behalf of Chery, according to industry sources. Chery is pushing aggressively into the UK and Europe with its Chery, Jaecoo and Omoda brands
Lab testing group Intertek to back £10.6bn takeover by Swedish firm EQT
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UK housebuilder Vistry warns of ‘significantly’ lower profits amid Iran war uncertainty
One of the UK’s biggest housebuilders has said its profits will be “significantly” lower, as it was forced to cut prices after heightened uncertainty caused by the US-Israeli war on Iran.Vistry’s shares plunged 10.5% in early trading on Wednesday, hitting their lowest level in nearly 15 years, as it told shareholders its first-half profits would be hit by the fallout from the Middle East conflict.In a stock market update hours before its annual general meeting, the housebuilder, which owns Bovis Homes, Countryside and Linden Homes, said circumstances had changed since it last updated investors in March. It said: “The level of macroeconomic uncertainty has increased, and with it the range of potential outcomes for the current year
How new owner became all powerful in ‘high stakes’ attempt to revive former WH Smith chain
Shoppers at WH Smith were once accustomed to being offered cheap chocolate stacked high at the counter while buying their morning newspaper. Now, the chain’s former high street stores have themselves become the subject of a cut-price deal – as the low-profile investment group that snapped them up appears set to pay less than half of the original cash price.The paperclips to books chain had notched up 233 years on the British high street when it was bought by Modella Capital last summer.In less than a year, the future looks very different for the chain, which was hastily rebranded to TG Jones. First established in Little Grosvenor Street in London by Henry Walton Smith and his wife, Anna, WH Smith grew rapidly in the 19th century, building a newspaper distribution business as the railway network expanded
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