UK interest rates have been held at 4.5 per cent by the Bank of England (BoE) with another cut to borrowing costs unlikely, amid mounting global uncertainty.
While the interest rate is still expected to fall further over the remainder of the year, only two further cuts are now expected across 2025 amid an ongoing battle with inflation, rising costs for businesses and an uncertain wider economic outlook, partly due to Trump’s threat of tariffs.
It comes as reports suggest Rachel Reeves is set to announce the biggest spending cuts since austerity in her spring statement next week.
Certain departments could face reductions of up to seven per cent over the next four years as the chancellor looks to slash Whitehall budgets by billions of pounds more than previously thought, the Guardian reported.
Having reportedly ruled out tax rises, Ms Reeves is set to tell MPs her plans next Wednesday, with experts warning fresh cuts would hit vital public services, a week after her party slashed the welfare bill by around £5 billion.
Meanwhile, Kemi Badenoch has warned that the upcoming local elections will be “extremely difficult” as she set a pessimistic tone during her party’s campaign launch.
The Conservative leader warned that they would lost “every single” council it won in 2021 if the general election results were mapped onto the coming local poll.
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Key Points
- Bank of England holds interest rates amid concerns over inflation and Trump tariffs
- Bank of England governor says UK is facing 'a lot of economic uncertainty'
- Badenoch offers pessimistic vision for upcoming local elections
- Rachel Reeves 'to announce biggest spending cuts since austerity' in spring statement
- Chancellor 'rules out increasing taxes' ahead of spring statement
Reeves must 'take responsible steps' to ensure interest rates cut
12:37
,
Holly Evans
The Chancellor must use the coming spring statement to “take responsible steps” that will pave the way for an interest rates cut, the Tories said.
Mel Stride, the shadow chancellor, said: “Interest rates staying higher for longer will mean higher mortgages for millions of people across the country.
“Because of Rachel Reeves’ Budget, inflation is above the Bank of England’s target, making it harder to bring interest rates down.
“Next week, during her emergency budget, the Chancellor must take responsible steps on spending, borrowing and debt to allow the Bank of England to cut interest rates.”
Rachel Reeves says she is 'fighting every day' to put money in pockets of working people
12:34
,
Holly Evans
In response to the Bank of England holding interest rates, Chancellor of the Exchequer Rachel Reeves said: “We’ve had three rate cuts since the summer, but there’s still work to do to ease the cost of living.
“That’s why I’m fighting every day to put more money in the pockets of working people to deliver our plan for change, and why we protected workers’ payslips with no rise in national insurance, income tax or VAT, boosted the national living wage and froze fuel duty.
“In a changing world, I’m determined to go further and faster to kickstart growth, and bring in a new era of stability, security and renewal that protects working people and keeps our country safe.”
What the latest interest rates mean for your mortgage, savings and bills
12:24
,
Holly Evans
What is the impact of inflation?
12:20
,
Holly Evans
When the BoE made the Bank Rate cut last month, inflation had been on the decline. However, a mid-February report showed Consumer Prices Index (CPI) inflation rose to 3 per cent in January, from 2.5 per cent in December.
With inflation therefore rising again - and, importantly, rising by more than expected - interest rates were always unlikely to be cut this time around.
Lower interest rates can be used to encourage businesses to resume investing as the cost of borrowing is lower, which can give the wider economy a boost.
However, it can also lead to rising prices as investment in more jobs or salaries mean people have, and spend, more money; therefore the reverse is also seen as true in that if demand is lower, it can help reduce these potential price rises - or in other words, it can help stem inflation.
The BoE have stated they’ll take a cautious approach to reducing the interest rate so as not to see a sharp spike in inflation, as was seen a couple of years ago.
Bank of England governor says UK is facing 'a lot of economic uncertainty'
12:12
,
Holly Evans
Andrew Bailey, Governor of the Bank of England, said: “There’s a lot of economic uncertainty at the moment.
“We still think that interest rates are on a gradually declining path, but we’ve held them at 4.5% today.
“We’ll be looking very closely at how the global and domestic economies are evolving at each of our six-weekly rate-setting meetings.
“Whatever happens, it’s our job to make sure that inflation stays low and stable.”
Eight members of bank's Monetary Policy Committee vote to maintain base rate
12:09
,
Holly Evans
The Bank of England has held interest rates after eight members of the central bank’s Monetary Policy Committee (MPC) voted to maintain the base rate at 4.5 per cent.
One member of the committee, Swati Dhingra, voted for a sharper reduction to 4.25 per cent.
Full story: Bank of England holds interest rates amid concerns over inflation and Trump tariffs
12:03
,
Holly Evans
Interest rates have been held at 4.5 per cent by the Bank of England (BoE) amid mounting global uncertainty and growing trade tensions sparked by Donald Trump.
That was the level reached in February when the Monetary Policy Committee (MPC) made its first cut since November last year, in so doing bringing the rate down to its lowest level since mid-2023.
While the interest rate is still expected to fall further over the remainder of the year, only two further cuts are now expected across 2025 amid an ongoing battle with inflation, rising costs for businesses and an uncertain wider economic outlook.
A significant portion of that uncertainty is due to Donald Trump’s trade tariffs being placed – and altered or withdrawn at short notice – which has created unrest in industries and could see the cost of selling their goods to the United States rise significantly. While the UK has yet to implement any retaliatory tariffs, an escalating trade war could significantly hit economic growth as well as consumers’ spending power.
Read the full story:
Breaking: Interest rates held at 4.5%
12:01
,
Holly Evans
The Bank of England has held interest rates at 4.5 per cent, as expected.
We’ll be bringing you all the latest updates and analysis.
Lib Dems say voters 'haven't forgiven the Conservatives' for damage caused
11:57
,
Holly Evans
The Liberal Democrats described the Tory local election launch as a “desperate attempt to shore up the crumbling Conservative vote”.
Responding to the launch event, Lib Dem deputy leader Daisy Cooper said: “The first brick in the blue wall came tumbling down in Buckinghamshire in the Chesham and Amersham by-election. Now Kemi Badenoch is back there in a desperate attempt to shore up the crumbling Conservative vote as people in the home counties turn to the Liberal Democrats.
“Whilst Kemi’s Conservatives compete with Reform in their policy agenda, the Liberal Democrats are focused on delivering for residents on issues including the cost of living, sewage in our rivers and the emergency in our NHS and care. Voters in Buckinghamshire and across the country haven’t forgiven the Conservatives for all the damage they’ve done. Badenoch will hear the very same if she knocks on doors today.
“Voters have a clear choice in May, and across the country, including in Buckinghamshire, they are turning to the Liberal Democrats as community champions who will stand up for them.”
Council tax bills rise by 5% for third year in a row as cost pressures bite
11:49
,
Holly Evans
Council tax bill rises will hit 5 per cent in April for the third year in a row, as almost all councils increase bills up to, or close to, the maximum permitted, Government figures confirm.
The average annual band D bill, the standard measure of council tax, will be £2,280 including all precepts this year, an increase of £109 on 2024-25 and 20 per cent rise on 2021-22, when the average bill was £1,898.
With 384 lower and upper tier councils subject to referendum principles, which allow them to raise the levy by 4.99 per cent without triggering a local referendum, 293 opted to hit the threshold and 56 chose to go close to the maximum.
This means 91 per cent of councils felt it necessary to impose significant increases, to cover growing cost pressures and rising demand for support services not provided by direct government grants and other revenue.
Council tax bills on average have increased by 5.1 per cent in the previous two years.
'You will have to live with what you vote for', Badenoch warns
11:36
,
Holly Evans
The May local elections are not a “national referendum”, Kemi Badenoch said, urging voters to remember “you will have to live with what you vote for”.
Asked whether she had changed Tory policies, like scrapping net zero by 2050, in response to Reform UK, the Conservative leader said: “I talked about net zero in 2019, there was no Reform then, in 2022 when I first stood for leadership, when I was business secretary. What people can see with me is consistency. They know what they are getting.
“But these local elections aren’t about me. They are about the public. What is it that they want in terms of public services?”
She added: “It is about all of these local councillors who pound the pavements every day, fixing things, making life better for ordinary people. That is what we are doing this May.
“This is not a national referendum. People sometimes will vote for protest parties, but what I’m saying now is that you will have to live with what you vote for. It’s not just an opinion.
Badenoch takes thinly veiled swipe at Farage during speech
11:26
,
Holly Evans
Politics is “not showbusiness”, Kemi Badenoch said in a veiled criticism of Nigel Farage.
Asked what the ideological difference between the Tories and Mr Farage’s Reform UK is, Mrs Badenoch told reporters: “One of the things which I’ve been saying quite frequently – and I did in my speech on Tuesday when I launched our policy renewal programme – was that we don’t just make announcements, we have a plan.”
The Tory leader said “people have lost trust in politics because politicians make promises and don’t deliver”.
She added: “We also fell foul of that from time to time, and what I’m saying now is the Conservative Party is under new leadership.
“This is not showbusiness. This is not a game. This is about people’s lives. This is not for us. It is for all those people out there who need credible politicians. That is what we’re offering.”
Badenoch: 'If you vote Labour, you get trash'
11:16
,
Millie Cooke
Kemi Badenoch has issued a strong message to voters at her party's local election launch in Buckinghamshire as the party scrambles to avoid another election wipeout, warning: "If you vote Labour, you get trash".
As the Tories battle the threat from Reform UK and poor ratings in the polls, the Conservative leader put in a bid to keep traditional voters on side by painting a stark picture of what she argued was Labour's impact on local councils.
"Labour councils always cost you more and deliver less", she claimed. "I was in Birmingham at the weekend. Labour has run it into the ground. Bins not collected. Rubbish piling high everywhere."
They have a £1bn black hole in their budget, now they've hiked council tax by 21 per cent over two years and cut services, all while Labour councillors gave themselves a pay rise.
"So I say to all of you watching, don't let Labour do that to your council. If you vote labor, you get trash."
Closing out her speech, she added: "If you want to stop Labour wrecking your area, vote Conservative. Don't just hope for a great council, vote for one."
Badenoch offers pessimistic vision for upcoming local elections
11:00
,
Millie Cooke
Kemi Badenoch has offered up pessimistic vision ahead of May’s local elections, saying she expects the party to do just “a bit better” than a total wipeout.
Speaking at her party’s local election launch in Buckinghamshire, the Tory leader said: “If you match the general election result of 2024 onto this coming May, then we don't win the councils like we won in 2021 - we lose almost every single one.”
“But I think we're going to do a bit better than that”, she added.
Mrs Badenoch continued: “We know that these elections will be extremely difficult, but we also know why they matter”.
Tory MP acknowledges local election campaign will not be 'straightforward'
10:55
,
Holly Evans
The Conservatives are not going to have a “straightforward” or “easy” local elections in May, the party’s shadow communities secretary has admitted.
Speaking at the launch of the Tories’ local election campaign, Kevin Hollinrake said: “Since the general election, we’ve won twice as many seats in terms of net gains compared to any other party. We know we can do this.
“We also know that May 1 is not going to be straightforward. It’s not going to be going to be easy. We have been judged against the high water mark of 2021.
“We’ve got to be realistic, but we can win. And, my god, do we need to win.”
Conservative MPs Greg Smith (Mid Buckinghamshire) and Joy Morrissey (Beaconsfield), as well as former Peterborough MP Paul Bristow, were among those gathered at the event in Buckinghamshire.
Bank of England set to keep interest rates on hold as global uncertainty grows
10:40
,
Holly Evans
UK interest rates are set to stay at 4.5 per cent, with another cut to borrowing costs unlikely while the Bank of England assesses mounting global uncertainty, experts have said.
The Bank of England’s Monetary Policy Committee (MPC) is widely expected to keep interest rates on hold on Thursday when they make their announcement at midday.
The MPC has been gradually cutting borrowing costs since August, easing pressure on some borrowers who have been able to offer lower mortgage rates.
This has been possible while the rate of UK inflation has been steadily falling from the highs reached in 2023, at the peak of the cost-of-living crisis.
But the Bank’s governor Andrew Bailey has been keen to stress that the committee wants to take a “gradual and careful approach” to reducing rates while monitoring changes in the UK and global economy.
Consumer Prices Index (CPI) inflation rose to 3 per cent in January, with price pressure mainly being driven by energy prices, water bills and bus fares.
At the same time, the UK economy has been teetering on the edge of decline – with gross domestic product (GDP) rising by 0.1 per cent over the final three months of the year but contracting by 0.1 per cent in January.
Car crushing and garrotting suggested as fly-tipping punishment
10:20
,
Holly Evans
MPs have suggested car crushing and garrotting as punishments for fly tipping.
Paul Waugh, the Labour MP for Rochdale, told the Commons: “My council tells me there’s a real failure in the courts to issue consistent and tough enough fines, so does the minister agree with me it’s time to crack down harder on fly-tippers, for much tighter regulations on waste carriers, and treat the fly-tippers like the criminals they are by crushing their cars or putting points on their licence?”
Nature minister Mary Creagh replied: “I couldn’t agree more with (Mr Waugh).”
She described “enthusiasm from all sides of the House” when Mr Waugh asked his question, adding: “Our message to the waste criminals is clear – we are seeking powers in the Crime and Policing Bill and we are going to track you down.”
Conservative MP Sir Desmond Swayne later said: “Alas, the last government did not take up my suggestion that the offenders be garrotted with their own intestines. The first problem, however, is to catch them.
“Is there any way that local authorities can be encouraged to take advantage of the collapse in price and improvement in quality of internet-connected cameras?”
Ms Creagh replied: “I think there’d be some human rights implications with the garrotting option, but I do share his passionate hatred for these environmental criminals.”
In a nod to Sir Desmond’s New Forest West constituency, Ms Creagh added it “really upsets me to see ancient woodland run by the Forestry Commission fly-tipped – these are precious, irreplicable areas”.
Starmer accused of waging new ‘war on countryside’ after axing grant that saves local pubs
09:56
,
Holly Evans
Sir Keir Starmer has been accused of waging “war on the countryside” after the government quietly scrapped a grant that helped local groups buy closure-threatened pubs.
The Community Ownership Fund, which launched 2021 with the aim of handing out £150m worth of grants by the end of 2025, was cancelled early with £135m having been allocated to date.
As the number of pubs in England and Wales sits at a record low, with more than 400 closing their doors for good in 2024 alone, there is growing concern in rural areas that the cancellation of the fund just days before Christmas will damage communities across the country.
Read the full article here:
What's happening today?
09:36
,
Holly Evans
Sir Keir Starmer is spending the morning in Barrow viewing the next generation of nuclear-armed submarines, before joining a summit of European leaders to discuss the continent’s future safety.
He is set to travel back to London to meet military planners from around 30 countries as part of the “coalition of the willing”, to strategise how a peacekeeping force in Europe would look, despite Putin’s insistence that he will not agree to a ceasefire if troops are in the region.
Foreign secretary David Lammy also has a speech at 2.30pm, where he may take questions on both Ukraine and the ongoing conflict in Gaza.
Treasury Chief Secretary Darren Jones is also due to give his Institute for Government speech at 12.30 pm, where he will likely face tricky questions ahead of Rachel Reeves’ spring statement next Wednesday.
At midday, the Bank of England will also announce their decision on interest rates, which are widely expected to be held at 4.5 per cent considering the gloomy economic outlook.
Migrant dies trying to cross the English Channel
09:20
,
Holly Evans
A migrant has died after trying to cross the English Channel in an overloaded boat, French authorities have said.
Some 15 people were rescued after a boat containing 40 people picked up more migrants on the coast of Gravelines, in northern France, at around 3am on Thursday.
Three people were rescued from the water and a group of 12 others on board the dinghy asked to be evacuated, the French coastguard said.
One person rescued was unconscious and was declared dead despite medical treatment.
Jeremy Hunt hits out at ‘hyperbolic’ Brexit claims of backers like Boris Johnson
08:58
,
Holly Evans
Former chancellor Jeremy Hunt has hit out at Brexiteers who inflated the economic benefits of the UK’s departure from the European Union.
Mr Hunt, who voted Remain in 2016, criticised what he described as some of the "more hyperbolic claims” of some Brexit’s backers - who included former Tory PM Boris Johnson.
But in a foreword to a new report, Mr Hunt also said he believed "many claims” about the negative impact of Brexit on the economy “were overly exaggerated" and the UK’s departure had "much less impact on British exports to the EU".
Read the full article here:
'Accurate data on sex is vital' says defence minister
08:50
,
Holly Evans
The accurate collection of data on biological sex is “vital”, a minister has said after a report warned of the risks of removing this information.
Defence minister Luke Pollard said the Government will look at recommendations from an independent review commissioned by the previous government.
He told Times Radio: “What is important is that we recognise that the accurate collection of data is vital, not just for the public health component, which much of this report, I believe, majors on, but across government.
“So, the accurate collection of data is vital and it is something that this Government is committed to ensure happens.”
Collecting accurate data on sex is vital for “the right prevention in health activities to make sure that we’re keeping people safe,” he said.
“We’re going to read the report … and use that as part of our efforts to make sure that we are preventing cancers, in particular, which is what the report majors on.”
Watch: Starmer makes rare nuclear submarine visit in show of strength ahead of Ukraine talks
08:40
,
Holly Evans
Council tax is a 'major concern' as Tories look to reform system
08:25
,
Holly Evans
A Conservative MP has said council tax is an area of “major concern” for future policy.
It was put to Nigel Huddleston on the BBC’s Today programme that residents in Westminster, central London, are paying £900 for a band D property each year compared to nearly £2,500 in Hartlepool in the North East.
Asked if his party would come up with a “potentially radical reform” of the tax while in opposition, the MP for Droitwich and Evesham and Conservative co-chairman said: “The policy commissions, the policy review, will be comprehensive, I can assure you of that, and this is a process that we’ve said will take time.
“We’re taking input from experts, from members, from activists, from people right across the area who’ve got input into these really important areas.
“We’re going to be using our time in opposition very wisely and Kemi laid out earlier this week the policy renewal work and policy renewal programme that we will be doing, which will look at every single area of government – and obviously council tax is an area of major concern because it is an important part of people’s annual expenditure.”
Ahead of local election campaigns getting under way, Mr Huddleston also told the programme: “We are under no illusions that this set of elections will be difficult, but we will be fighting – our goal is to fight every single seat and make sure we get as many votes as possible and in local by-elections.”
Strong wage growth makes BoE consider interest rate decision
08:06
,
Bryony Gooch
Wages grew by 5.9 per cent in the three months to January, the same amount as a month earlier, as the Bank of England considers its interest rates decision.
Growth in average weekly earnings, including bonuses, fell to 5.8 per cent. Wage growth remains well above the rate of overall prices, as inflation stood at 2.5 per cent in January.
The Bank of England is expected to hold interest rates at its meeting today, in part because of the inflationary impact of wage growth.
Europe has 'stepped up' on defence to support Ukraine, says defence minister
07:58
,
Bryony Gooch
Defence minister Luke Pollard said that the UK’s European allies have "stepped up" on defence, as he suggested that 30 nations signed up to Starmer’s “coalition of the willing” to support Ukraine.
He told Sky News: “We're looking at how we can plan a force to support our friends in Ukraine.
“Not just as the United Kingdom, but as 30 nations coming together, stepping up our support to secure the peace after any peace deal in Ukraine.
“Now, this, I think, is a clear sign of UK leadership, but we're doing that alongside our French friends, co-leading this effort.”
He continued: “We are very clear we have a full, strong support for our friends in Ukraine.
“That is what we're seeing today with a multinational effort coming together, not just to keep them in the fight today, but to secure a peace if that comes.”
Liz Kendall: 'Unemployment figures show scale of challenge to get Britain working again'
07:50
,
Bryony Gooch
Work and Pensions Secretary Liz Kendall said that the unchanged unemployment rate demonstrated “the scale of the challenge we’re still facing to get Britain working again.
The rate of UK unemployment remained unchanged at 4.4% in the three months to January, the Office for National Statistics said.
“The reforms I have announced will ensure everyone who can work gets the active support they need, including through an extra £1 billion for personalised health, skills and employment support for sick and disabled people.”
She added: “We’ve already put in place measures to make work pay and improve job security – including through the national minimum wage increase and our Employment Rights Bill.
“Since the election, we’ve also seen year-on-year wages after inflation growing at their fastest rate in three years – worth an extra £1,000 a year on average in the pockets of working people.”
Labour Party isn't 'centre-right', insists Minister amid benefits cuts
07:46
,
Bryony Gooch
Defence minster Luke Pollard insisted that Labour is not the party of the centre-right, when questioned over spending cuts.
When asked on Sky, Mr Pollard said: “No, I don't think so.”
He continued it was “wrong” for him to speculate on Chancellor Rachel Reeves’ spring statement, set to be delivered next Wednesday.
“We’ve been very clear that by taking the difficult decision to reduce international aid spending, we're moving that money to defence.”
“The changes that we are seeking to make to welfare are not to fund defence spending. It's to help people back into work.”
Barrow-in-Furness a 'blueprint' for how defence boost can help UK growth, says Starmer
07:39
,
Bryony Gooch
Sir Keir Starmer is set to visit Barrow-in-Furness today as the UK increases defence spending in a pledge to grow the economy. Barrow, at the heart of the country’s submarine-building industry,
Starmer said ahead of the visit, per Sky News: “When I say that our Plan for Change is delivering security for working people and renewal for our country, there is no better blueprint than Barrow.
“Defence spending here is supporting highly skilled jobs, driving opportunities for young people and delivering world class capabilities to keep us all safe, but it's also crucially putting money in the pockets of hardworking people.”
The government announced in February they would increase defence spending to 2.5 per cent of the UK’s economic output by 2027.
Rate of unemployment remains unchanged
07:33
,
Bryony Gooch
The rate of UK unemployment has remained unchanged at 4.4 per cent in the the three months to January, the Office for National Statistics has said.
They also reported that UK average regular earnings growth remained at 5.9 per cent in the three months to January and was 3.2 per cent higher after taking Consumer Prices Index inflation into account.
Ambassadors to be judged on ability to generate trade for UK, says Lammy
07:24
,
Bryony Gooch
Foreign secretary David Lammy is set to announce a packet of measures intending to open up diplomatic expertise to businesses, as he said that Ambassadors will be judged on their ability to drum up trade for Britain under plans to forge deeper ties between industry and diplomacy.
Mr Lammy will announce the measures at a British Chambers of Commerce (BCC) conference in London.
He will say: “I will always put the economic interests of workers and businesses at the heart of our foreign policy.
“To realise our growth mission, we need to deepen the links between the people sat in this room today, and the civil servants in Whitehall.”
The changes come as governments around the world grapple with the economic changes triggered by Donald Trump’s return to the White House and the risk of global tariff wars as a result of his policies.
Under the plans ambassadors will be held accountable to a new delivery board for trade and investment wins overseas.
Starmer backs calls from Gareth Southgate and Adolescence stars to tackle culture of young male violence
07:00
,
Jabed Ahmed
Watch |
06:00
,
Jabed Ahmed
Disadvantaged children could be ‘priced out’ of expansion to funded childcare
04:00
,
Jabed Ahmed
Disadvantaged children could be being “priced out” of accessing the same early years education as their peers in working families due to the Government’s expansion of funded childcare, a report has warned.
Families who are not in work, or do not earn enough to be eligible for new funded childcare entitlements in England, will pay around £105 a week more than eligible working families for a part-time nursery place for a child under two, a survey by the Coram Family and Childcare charity has suggested.
A report by the charity said the gap between entitlements for disadvantaged children and those with working parents is “now wider than at any other time” and is set to get “even wider” later this year.
The expansion of funded childcare – which was introduced by the Conservative government – began being rolled out in England in April last year for working parents of two-year-olds.
Working parents of children older than nine months are also now able to access 15 hours of funded childcare a week, before the full roll-out of 30 hours a week to all eligible families in September.
A part-time nursery place (25 hours per week) for a child under two now costs an average of £70.51 per week in England after working-parent entitlements are accounted for – which is down by 56% on 2024.
But the survey suggested that for families ineligible for the 15 hours of funded childcare for working parents, a 25-hour part-time nursery place for a child under two-years-old costs £176.27 per week.
Submarine building at Barrow a ‘blueprint’ for UK growth, Starmer says
03:01
,
Jabed Ahmed
Barrow-in-Furness is a “blueprint” for how increasing defence spending can boost prosperity across the UK, the Prime Minister has said ahead of a visit to the town at the heart of Britain’s submarine-building industry.
Sir Keir Starmer will lay the keel for the next generation of Britain’s nuclear deterrent submarines when he visits the Cumbrian town on Thursday, as he argues his plans to boost defence spending will help fulfil his mission to grow the economy.
Just days ago, Sir Keir secretly joined a crew of submariners as they returned home to their families for the first time in months, making him the first Prime Minister to join a so-called “day zero” since 2013.
The King is meanwhile due to confer the Port of Barrow with the title “Royal”, to recognise the town’s contribution towards national security as a hub of submarine building.
The Prime Minister said: “When I say that our Plan for Change is delivering security for working people and renewal for our country, there is no better blueprint than Barrow.
“Defence spending here is supporting highly skilled jobs, driving opportunities for young people and delivering world class capabilities to keep us all safe, but it’s also crucially putting money in the pockets of hardworking people.”
Brexit much less damaging to British exports than claimed, says Hunt
01:00
,
Jabed Ahmed
Brexit had “much less impact on British exports to the EU” than previously thought, Conservative former chancellor Jeremy Hunt has said.
The senior Tory MP also warned ministers against choosing between closer ties with the US or Europe, as he gave his name to research that contests analysis of Brexit’s damaging impact on outward trade.
Centre-right think tank Policy Exchange claimed the Office for Budget Responsibility’s (OBR) modelling for how the vote to leave the EU had impacted British exports had been overstated.
In a foreword for the report, Mr Hunt – who voted remain in the Brexit referendum – said he believed “many claims about the impact of Brexit upon the UK’s economy were overly exaggerated”, but also said the same was true of the “more hyperbolic claims of some Brexiteers about its benefits”.
He added: “This excellent paper by Policy Exchange clearly demonstrates that Brexit has had much less impact on British exports to the EU than has been previously thought.
“Policy Exchange’s work in this area should be carefully scrutinised by the OBR when they next update their models.”
The think tank’s report said official analysis of Brexit’s impact had only taken into account the fall in the volume of exports, and not its value.
While the number of vehicle exports are down 28% compared with 2019, the value of exports has only decreased by 2% in the same period, the think tank claimed.
Appoint minister for men to tackle male underachievement, report suggests
00:01
,
Jabed Ahmed
A “boy-positive” learning environment should be developed in schools and the Government should appoint a minister for men to tackle gender disparities in education, a report has suggested.
The Higher Education Policy Institute (Hepi) has said a dedicated strategy is needed to tackle attainment differences between men and women to address “one of the most egregious issues” affecting education and society.
There is a risk of “under-educated men veering towards the political extremes” if male underachievement is not tackled, the report has warned.
The report has called for ministers to learn from the push to get more women into scientific roles to get more men into the teaching, care and nursing professions, where they are currently underrepresented.
The Government could appoint a junior “Minister for Men and Boys” or a named minister specifically tasked with addressing the educational underachievement of male pupils and students, the report said.
Chancellor 'rules out increasing taxes' ahead of spring statement
Wednesday 19 March 2025 23:13
,
Tara Cobham
Rachel Reeves has reportedly ruled out increasing taxes ahead of her spring statement.
Despite facing a budget deficit, government sources have confirmed to the Guardian that the chancellor is not set to announce any tax hikes next Wednesday.
The Tories have claimed that Ms Reeves is looking to introduce a stealth income tax raid that would involve freezing the threshold at which taxpayers start paying it – a move she has not ruled out for later in the year, depending on how well the economy fares over the next months.
Rachel Reeves 'to announce biggest spending cuts since austerity' in spring statement
Wednesday 19 March 2025 23:08
,
Tara Cobham
Rachel Reeves is reportedly set to announce the biggest spending cuts since austerity in her spring statement.
Certain departments could face reductions of up to seven per cent over the next four years as the chancellor looks to slash Whitehall budgets by billions of pounds more than previously thought, the Guardian reported.
Experts warn the cuts will hit vital public services after Labour pledged to reverse the years of decline seen under the Tories.
Ms Reeves is set to tell MPs her plans next Wednesday, a week after her party slashed the benefits bill by around £5 billion.
A Whitehall source told the newspaper: “The government has been clear that departments will have to find more efficiencies. That is why Wes Streeting [the health secretary] has cut NHS England, that is why Liz Kendall [the work and pensions secretary] has made reductions to welfare payments.”
Another added: “I don’t know how much longer we can go on pretending this is not austerity, when the reality is we’re making cuts to vital public services such as police and prisons.”
The associate director at the Institute for Fiscal Studies (IFS), Ben Zaranko, said: “The government will be hoping that the short-term cash injection provided last year, and efficiency improvements as public services continue to recover from the pandemic, will be enough to deliver service improvements even if money is tight.
“But we’re in a very different world to 2010 and, even th
