Rishi Sunak says UK-US relationship is in ‘great shape’ – after White House denies Biden is ‘anti-British’
Rishi Sunak says the relationship between the UK and US is “in great shape” after he held talks with Joe Biden, despite strong criticism of the president from one of Northern Ireland’s main parties.
Mr Biden arrived in the region late last night for his trip to the island of Ireland to mark 25 years of the Good Friday Agreement, and was greeted by the prime minister on the tarmac at Belfast International.
But the president, who often refers to his Irish roots, faced a swathe of criticism from senior figures in the Democratic Unionist Party (DUP), who claimed he was “anti-British” and “hates the UK”.
The White House was forced to deny the accusations, calling them “simply untrue”, and insisting Mr Biden was “a strong supporter” of relations between the countries.
Commentators have also questioned the lack of time Mr Sunak and his US counterpart were spending together on the four-day trip, with only the greeting on Tuesday night and a 45-minute coffee at the Belfast Grand Central Hotel on Wednesday – dubbed a “bi-latte” by one US newspaper – in the diary.
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However, the PM pointed to the fact it was the president’s fourth visit to the UK since taking office, and the pair already had two further meetings set for May and June.
Speaking to reporters after the meeting, Mr Sunak said: “[Mr Biden] and I had a very good discussion today about a range of issues, [like] economic investment in Northern Ireland, but also a range of foreign policy issues, [like] the importance of economic security, and that comes on the back of a meeting I had with him last month in the US.
“We are very close partners and allies, we cooperate and talk on a range of things – whether that is supporting Ukraine or as I said economic security.
“I think, actually, the relationship is in great shape and the president and I have lots we are working on together.”
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Bilat or bi-latte? Sunak meets Biden
Mr Biden’s visit comes amid ongoing paralysis in the Northern Ireland Assembly at Stormont, with the DUP refusing to re-join the power sharing agreement over the UK government’s post-Brexit arrangements on trade.
Mr Sunak stuck a new deal with the EU back in February, known as the Windsor Framework, in an attempt to solve ongoing issues in the region under the Norther Ireland Protocol.
But despite it getting the overall approval of the Commons, the DUP voted against it, saying Northern Ireland would still be subject to some EU laws, threatening its place in the UK’s internal market.
President Biden met the leaders of the region’s five main political parties – including the DUP’s Sir Jeffrey Donaldson – after his talk with Mr Sunak and before delivering an address at Ulster University this afternoon to commemorate the Good Friday Agreement – the deal that largely ended 30 years of bloodshed between republicans and loyalists.
During his carefully worded speech, Mr Biden said Brexit had created “complex challenges” for Northern Ireland, but said gave his backing to the Windsor Framework, saying it addressed “the practical realities” of Brexit.
The president then urged a return to power sharing at Stormont, saying: “As a friend, I hope it’s not too presumptuous for me to say that I believe democratic institutions established through the Good Friday Agreement remain critical to the future of Northern Ireland.
“It’s a decision for you to make, not me.”
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Biden and Sunak hold talks in Belfast
Sir Jeffrey said his party “want to see the political institutions back up and running”, but any post-Brexit deal needed to ensure Northern Ireland “continues to have access to the whole of the United Kingdom and its internal market and that the arrangements to facilitate trade with the EU don’t get in the way with our ability to trade with our own country”.
Speaking to Sky News after the speech, he added: “I think there is further work that needs to be done [on the framework] and we will engage with the government to see what further can be delivered in terms of respecting and protecting Northern Ireland’s ability to trade within the United Kingdom and its internal market.
“I want to see a solution that works for everyone in Northern Ireland.”
Sir Jeffrey Donaldson
He also revealed Mr Biden “didn’t seek to apply any pressure” on him about a return to Stormont during their one-on-one meeting, saying the president “recognises it is the political leadership here that needs to take the decisions to move forward”.
However, the leader of Sinn Fein in Northern Ireland, Michelle O’Neill, said Mr Biden had sent “a clear message to the DUP”.
She added: “I think the message here from this visit is going to be one about peace, prosperity and about stability, and that means we need the political leg of things to work as well. I’m committed to making it work.”
The sentiment was echoed by the deputy leader of the Alliance Party, Stephen Farry, who told Sky News: “There was a very clear message today. The US has been very heavily invested in our peace process, it is clear they want to remain very closely invested, but we also have to help ourselves in Northern Ireland.
“There was a very clear steer the Assembly and the Executive [in Stormont] need to be restored and restored quickly so we can ensure we can do the basics to attract investment. It is out there for us but unless we get our act together it is not going to happen.”
Also speaking to Sky News, leader of the SDLP Colum Eastwood said Mr Biden was “very clear” in his meetings with party leaders that there were “big opportunities” for American investment in the region and that the US wanted to support the peace process.
“But we need political stability,” he added. “We need an assembly. We need the DUP to go back into government. It is pretty obvious and there for the taking. I don’t know how anyone could look this gift horse in the mouth.
“The DUP need to get on with it. The deal between [the UK] and Europe is done and it is actually a good deal. It allows us to trade in both markets. The Americans want to help us. Let’s get on with it.”
Earlier on Wednesday, other members of the DUP launched scathing attacks on the president ahead of his speech in Northern Ireland.
One of the party’s MPs Sammy Wilson claimed Mr Biden had “a record of being pro-Republican, anti-Unionist, anti-British”.
And former first minister of Northern Ireland, Baroness Foster, said the president “hates the UK”.
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Joe Biden on Stormont stalemate
Senior director for Europe at the US National Security Council, Amanda Sloat, called the claims “simply untrue”, adding: “The fact that the president is going to be engaging for the third time in three months, and then again next month and then again in June with the prime minister of the UK, shows how close our co-operation is with the UK.
“President Biden obviously is a very proud Irish-American, he is proud of those Irish roots, but he is also a strong supporter of our bilateral partnership with the UK, and not only on a bilateral basis within NATO, the G7, on the UN Security Council, and we truly are working in lockstep with the British government on all of the pressing global challenges that our countries are facing.”
Some have suggested the US president’s time in the region would have been longer had Stormont been sitting – but instead he will cross the border to Ireland this afternoon for a number of engagements, including meeting the Irish president and prime minister in Dublin and a tour of Carlingford Castle in Co Louth, where he traces his roots to.
Downing Street played down claims yesterday that the engagement between Mr Biden and Mr Sunak was “low-key” and scaled back, even though the PM did not stay to watch the president’s speech – with the UK government instead being represented by Northern Ireland secretary Chris Heaton-Harris.
Mr Heaton-Harris rejected claims Mr Sunak had “snubbed” the president, instead saying the PM had “other private engagements that he has gone to” and it was “a perfectly legitimate thing to do”.
The UK’s Supreme Court is set to deliver a landmark ruling today that could have billion-pound consequences for banks and impact millions of motorists.
The essential question that the country’s top court has been asked to answer is this: should customers be fully informed about the commission dealers earn on their purchase?
However, the Supreme Court is only considering one of two cases running in parallel regarding the mis-selling of car finance.
Here is everything you need to know about both cases, and how the ruling this afternoon may (or may not) affect any future compensation scheme.
PA file pic
What is the Supreme Court considering?
The Supreme Court case concerns complaints related to the non-disclosure of commission. This applies to 99% of car finance cases.
When you buy a car on finance, you are effectively loaned the money, which you pay off in monthly instalments. These loans carry interest, organised by the brokers (the people who sell you the finance plan).
These brokers earn money in the form of a commission (which is a percentage of the interest payments).
Last year, the Court of Appeal ruled in favour of three motorists who were not informed that the car dealerships they agreed finance deals with were also being paid 25% commission, which was then added to their bills.
The ruling said it was unlawful for the car dealers to receive a commission from lenders without obtaining the customer’s informed consent to the payment.
However, British lender Close Brothers and South Africa’s FirstRand appealed the decision, landing it in the Supreme Court.
Pic: iStock
What does the second case involve?
The second case is being driven by the Financial Conduct Authority (FCA) and involves discretionary commission arrangements (DCAs).
Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have incentivised sellers to maximise interest rates.
The FCA banned this practice in 2021. However, a high number of consumers have complained they were overcharged before the ban came into force. The Financial Ombudsman Service (FOS) said in May that they were dealing with 20,000 complaints.
In January 2024, the FCA announced a review into whether motor finance customers had been overcharged because of past use of DCAs. It is using its powers to review historical motor finance commission arrangements across multiple firms – all of whom deny acting inappropriately.
The FCA also said it is looking into a “consumer redress scheme” that means firms would need to offer appropriate compensation to customers affected by the issue.
An estimated 40% of car finance deals are likely to be eligible for compensation over motor finance deals taken out between 2007 and 2021, when the DCAs were banned.
To find out how you can tell if you’ve been mis-sold car finance, read the following explainer from our reporter Megan Harwood-Baynes.
Read more from the Sky News Money blog
Pic: iStock
How does the ruling affect potential compensation?
In short, the Supreme Court ruling could impact the scale and reach that a compensation scheme is likely to have.
The FCA said in March that it will consider the court’s decision and if it concludes motor finance customers have lost out from widespread failings by firms, it is “likely [to] consult on an industry-wide redress scheme”.
This would mean affected individuals wouldn’t need to complain, but they would be paid out an amount dictated by the FCA.
However, no matter what the court decides, the FCA could go ahead with a redress scheme.
The regulator said it will confirm if it is proposing a scheme within six weeks of the Supreme Court’s decision.
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What impact could this have on lenders?
Analysts at HSBC said last year the controversy could be estimated to cost up to £44bn.
Alongside Close Brothers, firms that could be affected include Barclays, Santander and the UK’s largest motor finance provider Lloyds Banking Group – which organises loans through its Black Horse finance arm.
Lloyds has already set aside £1.2bn to be used for potential compensation.
The potential impact on the lending market and the wider economy could be so great that Chancellor Rachel Reeves is considering intervening to overrule the Supreme Court, according to The Guardian.
Treasury officials have been looking at the potential of passing new legislation alongside the Department for Business and Trade that could slash the potential compensation bill.
The Treasury said in response to the claim that it does not “comment on speculation” but hopes to see a “balanced judgment”.
Heathrow Airport has said it can build a third runway for £21bn within the next decade.
Europe’s busiest travel hub has submitted its plans to the government – with opponents raising concerns about carbon emissions, noise pollution and environmental impacts.
The west London airport wants permission to create a 3,500m (11,400ft) runway, but insists it is open to considering a shorter one instead.
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January: Third runway ‘badly needed’
In January, Chancellor Rachel Reeves announced that the government supports a “badly needed” expansion to connect the UK to the world and open up new growth opportunities.
But London mayor Sir Sadiq Khan is still against a new runway because of “the severe impact” it will have on the capital’s residents.
Under Heathrow’s proposal, the runway would be constructed to the northwest of its existing location – allowing for an additional 276,000 flights per year.
The airport also wants to create new terminal capacity for 150 million annual passengers – up from 84 million – with plans involving a new terminal complex named T5XW and T5XN.
Terminal 2 would be extended, while Terminal 3 and the old Terminal 1 would be demolished.
The runway would be privately funded, with the total plan costing about £49bn, but some airlines have expressed concern that the airport will hike its passenger charges to pay for the project.
EasyJet chief executive Kenton Jarvis said an expansion would “represent a unique opportunity for easyJet to operate from the airport at scale for the first time and bring with it lower fares for consumers”.
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A long history of Heathrow’s third runway plans
Thomas Woldbye, the airport’s chief executive, said in a statement that “it has never been more important or urgent to expand Heathrow”.
“We are effectively operating at capacity to the detriment of trade and connectivity,” he added.
“With a green light from government and the correct policy support underpinned by a fit-for-purpose, regulatory model, we are ready to mobilise and start investing this year in our supply chain across the country.
“We are uniquely placed to do this for the country. It is time to clear the way for take-off.”
The M25 motorway would need to be moved into a tunnel under the new runway under the airport’s proposal.
Pic: Reuters
London mayor still opposed
Sir Sadiq says City Hall will “carefully scrutinise” the proposals, adding: “I’ll be keeping all options on the table in how we respond.”
Tony Bosworth, climate campaigner at Friends of the Earth, also said that if Sir Keir Starmer wants to be “seen as a climate leader”, then backing Heathrow expansion is “the wrong move”.
Earlier this year, Longford resident Christian Hughes told Sky News that his village and others nearby would be “decimated” if an expansion were to go ahead.
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January: Village to be levelled for new runway
It comes after hotel tycoon Surinder Arora published a rival Heathrow expansion plan, which involves a shorter runway to avoid the need to divert the M25 motorway.
The billionaire’s Arora Group said a 2,800m (9,200ft) runway would result in “reduced risk” and avoid “spiralling cost”.
Transport Secretary Heidi Alexander will consider all plans over the summer so that a review of the Airports National Policy Statement can begin later this year.
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It also comes after Sky News reported on a Heathrow Airport-funded group sending leaflets supporting a third runway to thousands of homes across west London.
The group, called Back Heathrow, sent leaflets to people living near the airport, claiming expansion could be the route to a “greener” airport and suggesting it would mean only the “cleanest and quietest aircraft” fly there.
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Who’s behind these Heathrow leaflets?
Opponents of the airport’s expansion said the information provided by the group is “incredibly misleading”.
Back Heathrow told Sky News it had “always been open” about the support it receives from the airport. The funding is not disclosed on Back Heathrow’s newsletter or website.
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