Lucy Powell hits out at ‘sexist’ talk that she is Labour proxy for Andy Burnham

Lucy Powell has hit out at the “sexist” framing of her deputy Labour leadership campaign, with people claiming she and her rival, Bridget Phillipson, are standing as “proxies” for two men.With the contest to replace Angela Rayner under way this week, the pair have been forced to contend with political rumours that they are stalking horses for a future leadership battle.It has been heavily speculated that Andy Burnham, a longtime ally of Powell, is among the senior Labour figures eyeing up a leadership challenge if the prime minister’s recent turmoil continues. Phillipson, meanwhile, is seen as a Keir Starmer loyalist.Powell, the MP for Manchester Central and former cabinet minister, lost her role as leader of the Commons in the recent reshuffle

Labour must rethink growth strategy to curb rise of far right, says top economist

Defeating far-right populism will require Labour to radically overhaul its “arid” approach to raising living standards in left-behind communities, the former Bank of England chief economist has said.Andy Haldane warned that Labour’s growth plans were failing to support parts of the country where voters feel neglected and disenfranchised.With ministers under pressure to respond to a summer of unrest, he said the “single most important thing” Keir Starmer’s government could do was to rethink its economic approach before the autumn budget.He said: “We need a story of growth that isn’t aridly told from 30,000 feet, but speaks to the lived experience and to the prospects and opportunities of workers in the everyday economy.“A sense of people progressing in their lives, of being invested in, is the absolute foundation stone of curbing disaffection with the incumbent parties – and therefore doing something to turn the tide of populism

France proposes ceiling on value of UK components in €150bn EU defence fund

France has proposed limiting the use of British-produced military components in the EU’s €150bn defence fund, in a move that could complicate negotiations over the UK’s entry into the scheme.Four diplomatic sources told the Guardian that French officials had proposed a 50% ceiling on the value of UK components in projects financed through the EU’s €150bn Security Action for Europe (Safe) fund.The €150bn loans scheme is part of the EU’s drive to boost defence spending by €800bn and re-arm the continent. The European commission president, Ursula von der Leyen, lauded the scheme on Tuesday, telling an audience of policymakers in Brussels that the commission had assigned loans to member states in less than six months since the idea was first mooted – “the sense of urgency we need”.The door to greater UK participation was pushed open in May when Keir Starmer and von der Leyen signed an EU-UK security and defence partnership

Plan to slash US steel tariffs shelved hours before Donald Trump’s UK visit

A long-coveted deal to slash US steel and aluminium tariffs to zero has been shelved on the eve of Donald Trump’s state visit to Britain, the Guardian has learned.Ministers were poised to finalise a deal this week that would have reduced Trump’s tariffs on British steel to zero, according to government officials.But that deal has been put on ice hours before the US president’s arrival in the UK, in what steel industry figures privately described as a major blow.A government source said the deal would have secured 0% tariffs on just a small quota of British steel exports, prolonging uncertainty for the industry.Instead, ministers are seeking to agree a permanent “guarantee” that US tariffs on British steel will not go above 25%

Two British MPs ‘denied entry’ into Israel during official West Bank visit

Two British MPs travelling as part of a parliamentary delegation to the occupied West Bank have said they were denied entry into Israel.Labour politicians Simon Opher and Peter Prinsley were travelling as part of a group that was due to meet British diplomats in Jerusalem this week, in addition to Palestinian and Israeli human rights organisations.Opher’s office said in a statement on Tuesday that the purpose of the visit, organised by the Council for Arab-British Understanding, was to “enable members of parliament to witness the vital medical and humanitarian work of a range of organisations including Medical Aid for Palestinians (MAP) in the occupied West Bank.” It added: “It is deeply regrettable that Israeli authorities prevented them from seeing first-hand the grave challenges facing medical facilities in the region and from hearing the British government’s assessment of the situation on the ground.” Opher, the MP for Stroud and chair of the all-party parliamentary group for health, has returned to the UK from Jordan

New headache for Rachel Reeves as OBR expected to lower productivity forecast

The Office for Budget Responsibility is expected to downgrade its key productivity forecast, the Guardian understands, setting Rachel Reeves on course to break her fiscal rules without significant action in the budget.The government’s independent watchdog has carried out a “stocktake” of its forecast models over the summer, and Treasury officials privately acknowledge the result will inevitably be a weaker growth outlook.One Treasury source said they expected the OBR to “kitchen sink it” – making a significant downward revision to productivity forecasts in one go rather than taking a more piecemeal approach.Reeves will respond by pointing to the long-term weakness of productivity in the UK economy and promising to tackle it with a programme of investment.The consultancy Oxford Economics, however, estimates that moving the OBR’s productivity forecast back in line with the less optimistic independent average projection would knock 1