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

Streeting urges closer trading ties with Europe to grow UK economy

A deeper trading relationship with the EU would be the best way of growing Britain’s economy, which has an “uncomfortable” level of tax, Wes Streeting has said.The health secretary said it would not be possible for any partnership with the EU to “return to freedom of movement”, but his comments appeared to leave the door open to the idea of a customs union.His remarks on the EU appear to go further than the government’s position, which has ruled out a customs union as it seeks deeper trading relations with Brussels. Some in the cabinet would like No 10 to go further in its ambitions in order to improve the UK economy.Streeting spoke out about the EU, the economy and his own ambitions in a wide-ranging interview with the Observer, while stressing that he was not after Keir Starmer’s job

Starmer will ‘absolutely’ still be prime minister by next Christmas, says Labour chair – as it happened

Anna Turley said that Keir Starmer will “absolutely” be the prime minister next Christmas, when asked by Trevor Phillips, amid continued speculation that Labour figures are manoeuvring to replace him.Turley told Sky News:Of course. Absolutely. As I said, people will really start to see and feel the change in their pockets. Keirs got a very clear vision for making sure that people can really deal with the cost of living, that public services will get back on their feet

UK failure to seal EU tax exemption hands industry mountain of paperwork

UK manufacturers are to be hit with mountains of Brexit-style paperwork in January on £7bn worth of exports to the EU after the government failed to secure an expected exemption from new green taxes.The UK had hoped to secure a carve-out by Christmas on the carbon border adjustment mechanism (CBAM), but EU commissioners have confirmed this is not going to happen.UK Steel says the exemption is unlikely to be in place before Easter, resulting in detailed paperwork for exporters in a repeat of Brexit when they were hit with paperwork on customs and standards of their goods.The documentation requires exporters to provide a detailed paper trail of carbon emissions generated during the manufacturing process.It will apply to scores of products made with steel and aluminium, including washing machines and car parts, under plans Brussels announced on Wednesday

Reform councillors in Kent condemned for spending thousands on political assistants

Reform UK’s “flagship” local authority, Kent county council, has been condemned for pushing through plans to spend tens of thousands of pounds on hiring political assistants.The move comes after councillors from Nigel Farage’s party in Warwickshire were accused of hypocrisy in July when they voted to spend £150,000 on the advisers, some of whom are being parachuted in by the national party to deal with a litany of issues at Reform-run councils.Both councils face budget crises and Reform candidates were voted in on pledges to cut waste and save money.A new leaked recording of a meeting of the Reform councillors in Kent – wearing turquoise Santa’s elf hats – showed them being told earlier this week by one of their leaders, Maxwell Harrison, that a former Reform director of campaigning and training at the party’s head office had been hired by the council as a “political assistant”.Harrison named him as Michael Hadwen, who has attracted controversy for social media posts including expressing support for Enoch Powell’s ideas about immigration

UK aid cuts take 40% from funds to counter Russian threat in western Balkans

Keir Starmer’s raid on overseas aid has led to a 40% cut in funds for countering Russian aggression and misinformation in a region of Europe described by the prime minister as vital to the UK’s national security.British funding committed to bolstering the western Balkans, where Russia has been accused of sowing division and creating destabilisation, has been cut from £40m last year to £24m for 2025-26.The Integrated Security Fund (ISF) is designed to tackle the highest priority threats to the UK’s national security at home and overseas.Starmer recently described the western Balkans region, encompassing Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia, as “Europe’s crucible – the place where the security of our continent is put to the test”.Last year’s ISF funds were used in part to counter and respond to malicious cyber-attacks in the region and to bolster democratic institutions and independent media