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Boris Johnson has said France should get over its anger at a partnership between the UK, US and Australia that saw the latter pull out of a major contract with Paris for submarines.

“What I want to say about that is I just think it’s time for some of our dearest friends around the world to prenez un grip [get a grip] about all this and donnez-moi un break [give me a break],” the prime minister said when asked about the continuing row over the AUKUS initiative.

“This is fundamentally a great step forward for global security. It’s three very like-minded allies standing shoulder to shoulder and creating a new partnership for the sharing of technology.

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‘AUKUS alliance will bring us closer than ever’

“It’s not exclusive, it’s not trying to shoulder anybody out. It is not adversarial towards China, for instance.

“It is there to intensify links and friendship between three countries in a way that I think will be beneficial for things that we believe in.”

The AUKUS deal saw the UK, Australia and the US form a trilateral security pact to develop and deploy nuclear-powered submarines, adding to the Western military presence in the Pacific region amid growing concern over China.

The initiative will focus initially on helping the Australian navy procure a multibillion-pound fleet of nuclear-powered submarines – a move that Beijing will likely see as aggressive.

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Nuclear-powered submarines are superior to their diesel counterparts, as they can operate more quietly and stay underwater for longer.

But London, Canberra and Washington said they will also seek to collaborate in cyber, quantum technologies and artificial intelligence as well as other underwater capabilities – areas in which Western democracies are frantically racing their authoritarian rivals to dominate.

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China says AUKUS deal ‘intensifies arms race’

In a joint statement when AUKUS was announced, Mr Johnson, US President Joe Biden and Australian Prime Minister Scott Morrison said: “The endeavour we launch today will help sustain peace and stability in the Indo-Pacific region.

“For more than 70 years, Australia, the United Kingdom, and the US, have worked together, along with other important allies and partners, to protect our shared values and promote security and prosperity. Today, with the formation of AUKUS, we recommit ourselves to this vision.”

But responding to the news, China’s embassy in Washington said the countries needed to “shake off their Cold War mentality and ideological prejudice”.

France recalled its ambassadors to the United States and Australia in a backlash over the new security partnership, with foreign minister Jean-Yves Le Drian describing it as a “stab in the back”.

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Rachel Reeves signals she will break tax pledges – and gives strongest indication she will lift two-child cap

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Rachel Reeves signals she will break tax pledges - and gives strongest indication she will lift two-child cap

Rachel Reeves has signalled she is going to break her manifesto tax pledges at the budget – and has given her strongest indication yet she will lift the two-child benefit cap.

The chancellor said the world has changed in the year since the last budget, when she reiterated Labour’s manifesto promise not to raise national insurance, VAT or income tax on “working people”.

“It would, of course, be possible to stick with the manifesto commitments, but that would require things like deep cuts in capital spending,” she told BBC 5Live.

“I have been very clear that we are looking at both taxes and spending,” she added.

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The chancellor also gave her strongest indication yet she will lift the two-child benefit cap at the budget on 26 November, saying it is not right a child is “penalised because they are in a bigger family”.

Ms Reeves blamed poor productivity and growth over the last few years on the previous government “always taking the easy option to cut investment in rail and road projects, in energy projects and digital infrastructure”.

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She said she promised during the election campaign to “bring stability back to our economy”.

Ms Reeves, here with US Secretary of Commerce Howard Lutnick in London in September, blamed tariffs for poor growth. Pic: PA
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Ms Reeves, here with US Secretary of Commerce Howard Lutnick in London in September, blamed tariffs for poor growth. Pic: PA

‘I’ll always do what’s right for UK’

“What I can promise now is I will always do what I think is right for our country, not the easy choice, but the thing that I think is necessary,” she added.

The chancellor blamed the UK’s lack of growth under her tenure on global conflicts, trade and tariffs over the past year.

In a dig at Donald Trump, who has imposed wide-ranging tariffs on countries around the world, she said: “The tariffs. I don’t think anyone could have foreseen when this government was elected last year that we were going to see these big increases in global tariffs and barriers to trade.

“And I have to be chancellor in the world as it is not necessarily the world as I would like it to be. But I have to respond to those challenges, and that’s the responsible thing to do.”

Read more:
What tax rises and spending cuts will Reeves announce at budget?
Gordon Brown ‘confident’ of two-child benefit cap change

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‘Shameful’ that 4.5m children in poverty

‘Children should not be penalised’

The government has, so far, resisted lifting the two-child benefit cap, which means a family can only claim child benefits for the first two children.

But, it is a contentious subject within Labour, with seven of its MPs suspended two weeks after the election for voting to scrap it, while others are aware it will cost £2.8bn to do so.

Former Labour prime minister and chancellor Gordon Brown has been pushing for Ms Reeves, who says he is her hero, to lift it.

She said she saw Mr Brown at Remembrance Sunday, where they “had a good chat and we’ve emailed each other just today”, as she revealed they speak regularly.

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Labour’s child benefit cap dilemma

Ms Reeves added Mr Brown and Sir Tony Blair were big heroes of hers because they did so much to lift children out of poverty – the reason she went into politics.

Pushed on whether she would lift the cap, she said: “I don’t think that it’s right that a child is penalised because they are in a bigger family, through no fault of their own. So we will take action on child poverty.”

Mr Brown earlier told Sky News’ Mornings with Ridge and Frost he was “confident” of a two-child benefit cap change at the budget.

The latest YouGov polling found 59% of the public are in favour of keeping the cap in place, and only 26% thought it should be abolished.

Shadow chancellor Sir Mel Stride said: “Rachel Reeves has borrowed, spent and taxed like there’s no tomorrow – and she’s coming back for more because she doesn’t have a plan or the strength to stand up to Labour’s backbenchers, who are now calling the shots.

“My message is clear: if Rachel Reeves reduces government spending – including the welfare bill, she doesn’t need to raise taxes again. “

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Senate Committee unveils crypto market structure bill draft

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Senate Committee unveils crypto market structure bill draft

The US Senate Agriculture Committee has released its long-awaited discussion draft of crypto market structure laws, bringing Congress closer to passing legislation outlining how the crypto sector will be regulated.

Republican Agriculture Chair John Boozman and Democrat Senator Cory Booker released the draft on Monday, which includes brackets around sections of the bill that lawmakers are still negotiating.

The bill aims to outline the limits of the Commodity Futures Trading Commission and the Securities and Exchange Commission’s power to regulate crypto. Only Congress can set the agencies’ regulatory boundaries, but both have shared guidance to companies about crypto under the Trump administration’s deregulation push.

“The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers,”  Boozman said.

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Booker said the discussion draft “would provide the CFTC with new authority to regulate the digital commodity spot market, create new protections for retail customers, and ensure the agency has the personnel and resources necessary to oversee this growing market.”

The House passed a similar bill, called the CLARITY Act, to the Senate in July, which would give the CFTC a central role in regulating crypto.

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