Sir Keir Starmer positions himself as PM-in-waiting as psychodramas engulf Westminster and Holyrood
As the Conservatives in Westminster tied themselves in knots over whether to back the Privileges Committee condemnation of Boris Johnson and the SNP’s Humza Yousaf sought to revive independence plans with his party still in crisis, Sir Keir Starmer went to Leith in Scotland to set out his mission to turbo-charge renewable energy in the UK should he become PM.
His target is for Britain to produce all its electricity from low-carbon energy sources – nuclear, wind and solar – by 2030. To do it is a bold plan to borrow £100bn+ over the course of the next parliament to transition the country away from fossil fuels to green energy.
By far Labour’s single biggest spending commitment, the party had pledged to borrow £28bn-a-year to fund the flagship green transition programme, but has since scaled back borrowing plans amid growing concerns about taking on debt as the cost of borrowing rises on the back of higher interest rates.
Instead, Labour will gradually ramp up borrowing to that level in the “second half of the parliament” if it wins the next general election.
But the plan is still huge – undoubtedly the single most radical policy of Sir Keir’s Labour government should he win the next election. Labour’s green subsidies amount to more in relative terms than US President Joe Biden’s own green economy plan – the inflation reduction act – which has earmarked $37bn in subsidies.
The money will be used to launch a state-run company GB Energy to invest in renewables, with £2.5bn in direct subsidies to green energy providers who contract to manufacture in the UK – the ‘British jobs bonus’ as Sir Keir puts it. He says it will create nearly 500,000 new direct and indirect jobs.
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Starmer outlines energy plans
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The driving purpose of the plan is to drive down energy bills – with Labour claiming that it will take £1,400 off average bills if it can hit the 2030 target.
It is also about transforming the economy in order to better fund public services.
Sir Keir is clear that this is the sort of “activist industrial policy” Britain needs for the longer term, but for voters looking to Labour to commit money to schools, hospitals and transport in the next election, this could prove a hard sell with the amount Labour is willing to borrow to subsidise green technologies dwarfing other commitments for public services.
“We are going to put money into public services,” explains one senior Labour figure. “But we have to grow the economy as the first step. Being clear about stable finances and sticking to it is the best way to turnaround the country.”
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‘We are doubling down not backing off’
But while the level of borrowing has raised eyebrows, and afforded the Conservatives a “borrowing bombshell” attack line, the plans to block new oil and gas developments in the North Sea as part of the renewables revolution has provoked widespread criticism from industry and union figures fearful of widespread job losses.
Douglas Ross, the Scottish Conservative leader, on Monday said Labour’s plans put “tens of thousands of Scottish jobs a risk”.
The criticisms have prompted another policy tweak as Sir Keir promised not to revoke any fossil fuel extraction licenses granted before the next general election, even though it could take years before those new fields begin producing.
This allows the Labour leader to insist existing jobs in oil and gas are not at risk, but there’s no doubt that as production is gradually wound down, this will be a momentous shift for a sector that supports nearly 200,000 jobs in the UK.
There is also the question of whether the Labour leader can actually deliver what he is pledging in this five years. Sir Dieter Helm, professor of economic policy at Oxford University, who has advised the government on energy policy over many years, said last week the goal was unlikely to succeed on the current trajectory.
When I pressed Sir Keir in an interview in Leith on Monday if the “clean power by 2030” pledge was a guarantee or a target he demurred, he said it was his “ambition” and he believed to be “doable”. Not an explicit guarantee then, and for good reason.
There is also a question about credibility and commitment after the Labour party U-turned on its promise to borrow £28bn-a-year from the beginning of the parliament in order to scale up renewable industry.
‘Doubling down’
The leadership has insisted it is still totally committed to the plan, but has had to scale back commitments in the near-to-medium term as the high cost of borrowing hits against Labour’s fiscal rules (no borrowing to fund day-to-day spending and net debt must be falling as a percentage of GDP at end of the rolling five-year period).
When I asked Sir Keir on Monday if the U-turn on the financial commitment in the first half of the parliament showed – as with Brexit, tuition fees, and re-nationalisations – that he can’t be trusted to keep his promises, he said it showed the opposite, that he was “doubling down” on the plan.
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Starmer hits out at ‘Tory crap’
“It is a matter of trust,” he told me.
“Rachel [Reeves] – we set out fiscal rules two or more years ago. Inflation is in a completely different place to where it was… but at the same time as we work through our plans and set out what we want to do in years one, two and three, it is clear we can ramp up to that £28bn and when I say to people in the sector, I want clean power by 2030, they don’t say you’re backing down, they say that’s a real challenge.”
On the timing of this announcement, there is of course a risk that Sir Keir’s missions get drowned out by the dramas back in Westminster. There was some discussion about whether to pull the announcement, but in the end Sir Keir decided that he wanted to get on talking about how he might lead Britain than, to quote one ally, get “bogged down in the psychodrama” of what’s going on in Westminster.
“Doesn’t it speak volumes that the Labour Party is today launching a plan for the next generation of jobs, whilst the Tories are squabbling back in Westminster, and the SNP are preaching about promises they’ve broken?” observed the Labour leader when I asked him about the current state of his rivals.
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Sir Keir wants to use these “mission statements” to position himself as a leader-in-waiting as the current prime minister Rishi Sunak finds his agenda hijacked by the failings of his predecessor and party infighting once more.
But the agenda on Monday is very much about parking Labour’s tanks on the SNP’s lawns too, given that there is no route to Number 10 for Sir Keir that doesn’t go through Scotland. Locating GB Energy in Scotland is designed to firmly park his tanks on the SNP’s lawn.
A poll out over the weekend suggested Labour was on course to take 26 seats in the next general election – an incredible change in fortunes from the single seat it picked up in 2019 – as the departure of Nicola Sturgeon and her subsequent arrest (she was released without charge) over the police probe into SNP finance leaves the party battered and bruised.
“Nicola Sturgeon not being first minister obviously provides a space and an opportunity that simply wasn’t there before,” acknowledges one senior figure.
“But there’s no rule that anybody disillusioned with either the Tories or the SNP necessarily swaps columns to us. Anyone who thinks we can flatline is heading for defeat at the next election. We’ve got to go up at the end, which is why we’re going to continue in this way.”
Volodymyr Zelenskyy has said Ukraine is “most interested in peace” and confirmed officials will hold talks with US partners in Saudi Arabia next week about ending the war with Russia.
It comes as Sir Keir Starmer is due to hold talks with European leaders on Friday about Ukraine.
The prime minister and French President Emmanuel Macron are seeking countries willing to supply troops for a peacekeeping force to defend a potential deal. The suggested agreement has already been rejected by Russia.
In his nightly address on Thursday, the Ukrainian president said his country was “most interested in peace”.
He also appeared to signal relations between the US and Ukraine were getting back on track after his disastrous White House visit – saying talks will take place in Saudi Arabia, but suggested he would not be part of those discussions.
The Ukrainian president said: “I am scheduled to visit Saudi Arabia to meet with the crown prince.
“After that, my team will stay in Saudi Arabia to work with American partners. Ukraine is most interested in peace.”
He added: “As we told President Trump, Ukraine is working and will work exclusively constructively for a quick and reliable peace.”
It comes around a week after the public row between the two men in the Oval Office. It has been followed this week by America freezing military aid to Ukraine.
Meanwhile, in an exchange with reporters on Thursday, the US president said his administration had made “a lot of progress” in recent days with both Ukraine and Russia, but did not specify further.
“I think what’s going to happen is Ukraine wants to make a deal, because I don’t think they have a choice,” Mr Trump said.
“I also think that Russia wants to make a deal because in a certain different way – a different way that only I know, only I know – they have no choice either.”
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President Donald Trump speaks at a joint session of Congress. Pic: Reuters
Earlier on Thursday, Steve Witkoff, a senior US official, praised a letter sent from Mr Zelenskyy to Mr Trump as a “positive first step” following their unsuccessful meeting.
“We are now in discussions to coordinate a meeting with the Ukrainians in Riyadh or even potentially Jeddah,” he said. “The city is moving around a little bit, but it will be Saudi Arabia.”
Mr Witkoff said Washington was trying to agree on a framework for a possible peace agreement in Ukraine.
It has also been pushing for the signing of a critical minerals deal with Ukraine – but it is unclear if that will be part of the talks next week.
Read more: The ‘coalition of the willing’ that could secure peace in Ukraine
US-UK defence secretaries meet
Defence Secretary John Healey said Mr Trump has “asked Europe to step up, and we are” as he started talks in Washington with his US counterpart Pete Hegseth on Thursday.
Mr Hegseth said it was “very encouraging” to see France and the UK say they are prepared to take a leading role.
Sir Keir has been seeking to support Ukraine and show Mr Trump the UK is committed to stepping up its defence efforts – while mooting plans for a peacekeeping force.
Russian foreign minister Sergei Lavrov said the move would amount to the “direct, official and unveiled involvement of NATO members in the war against Russia”.
While Andrei Kelin, Russian ambassador to the UK, said in an interview with Sky News’ The World With Yalda Hakim, that Russia wanted “quick peace” in Ukraine and the UK was at the “head of those resisting” it.
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Russian ambassador speaks to Sky News
European leaders meanwhile backed new defence spending plans aimed at freeing billions for the continent’s security.
The 27 leaders signed off on a move to loosen budget restrictions so that willing EU countries can increase their spending.
On Thursday evening, Russia launched a mass drone attack on the Black Sea port of Odesa, damaging energy infrastructure and starting fires, according to a local governor.
World
Russia wants ‘quick peace’ in Ukraine and London is ‘head of those resisting it’, ambassador to UK tells Sky News
Russia wants “quick peace” in Ukraine and London is at the “head of those resisting” it, the Russian ambassador to the UK has told Sky News.
In an interview on The World With Yalda Hakim, Andrei Kelin accused the UK, France and other European nations of not wanting to end the war in Ukraine.
“We are prepared to negotiate and to talk,” he said. “We have our position. If we can strike a negotiated settlement… we need a very serious approach to that and a very serious agreement about all of that – and about security in Europe.”
Russian ambassador Andrei Kelin speaks to Yalda Hakim
US President Donald Trump held a surprise phone call with his Russian counterpart Vladimir Putin last month, shocking America’s European allies. He went on to call Ukrainian President Volodymyr Zelenskyy a “dictator” and relations between the pair were left in tatters after a meeting in the Oval Office descended into a shouting match.
Days later, the US leader suspended military aid to Ukraine, though there were signs the relationship between the two leaders appeared to be on the mend following the contentious White House meeting last week, with Mr Trump saying he “appreciated” a letter from Mr Zelenskyy saying Kyiv was ready to sign a minerals agreement with Washington “at any time”.
In his interview with Sky News’ Yalda Hakim, Mr Kelin said he was “not surprised” the US has changed its position on Russia’s full-scale invasion of Ukraine, which began in 2022, claiming Mr Trump “knows the history of the conflict”.
“He knows history and is very different from European leaders,” he added.
No doubt Russia is welcoming shift in world order
I’ve interviewed the Russian ambassador to the UK, Andrei Kelin, on a number of occasions, at times the conversation has been tense and heated.
But today, I found a diplomat full of confidence and cautiously optimistic.
The optics of course have suddenly changed in Russia’s favour since Donald Trump was elected.
I asked him if Russia couldn’t believe its luck. “I would not exaggerate this too much,” he quipped.
Mr Kelin also “categorically” ruled out European troops on the ground and said the flurry of diplomatic activity and summits over the course of the past few weeks is not because Europeans want to talk to Moscow but because they want to present something to Mr Trump.
He appeared to relish the split the world is witnessing in transatlantic relations.
Of course the ambassador remained cagey about the conversations that have taken place between President Trump and Vladimir Putin.
There is no doubt however that Russia is welcoming what Mr Kelin says is a shift in the world order.
Peace deal ‘should recognise Russian advances’
The Russian ambassador said Moscow had told Washington it believed its territorial advances in Ukraine “should be recognised” as part of any peace deal.
“What we will need is a new Ukraine as a neutral, non-nuclear state,” he said. “The territorial situation should be recognised. These territories have been included in our constitution and we will continue to push that all forces of the Ukrainian government will leave these territories.”
Asked if he thought the Americans would agree to give occupied Ukrainian land to Russia, he said: “I don’t think we have discussed it seriously. [From] what I have read, the Americans actually understand the reality.”
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In full: Russian ambassador’s interview with Sky’s Yalda Hakim
Moscow rules out NATO peacekeepers in Ukraine
He said Russia “categorically ruled out” the prospect of NATO peacekeepers on the ground in Ukraine – a proposal made by UK Prime Minister Sir Keir Starmer and French President Emmanuel Macron – saying “they have no rules of engagement” and so would just be “sitting in cities”.
“It’s senseless” and “not for reality,” Mr Kelin added.
He branded the temporary ceasefire raised by Mr Zelenskyy “a crazy idea”, and said: “We will never accept it and they perfectly are aware of that.
“We will only accept the final version, when we are going to sign it. Until then things are very shaky.”
He added: “We’re trying to find a resolution on the battlefield, until the US administration suggest something constructive.”
World
US ‘destroying’ international rules-based order by trying to meet Russia ‘halfway’, Ukraine’s UK ambassador warns
The United States is “finally destroying” the international rules-based order by trying to meet Russia “halfway”, Ukraine’s ambassador to the UK has warned.
Valerii Zaluzhnyi said Washington’s recent actions in relation to Moscow could lead to the collapse of NATO – with Europe becoming Russian President Vladimir Putin‘s next target.
“The failure to qualify actions of Russia as an aggression is a huge challenge for the entire world and Europe, in particular,” he told a conference at the Chatham House think tank.
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“We see that it is not just the axis of evil and Russia trying to revise the world order, but the US is finally destroying this order.”
Valerii Zaluzhnyi. Pic: Reuters
Mr Zaluzhnyi, who took over as Kyiv’s ambassador to London in 2024 following three years as commander-in-chief of the Ukrainian armed forces, also warned that the White House had “questioned the unity of the whole Western world” – suggesting NATO could cease to exist as a result.
It comes as Ukrainian President Volodymyr Zelenskyy scrambles to repair relations with US President Donald Trump following a dramatic row between the two men in the Oval Office last week.
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Mr Trump signalled on Tuesday that tensions could be easing, telling Congress he had received a letter from Mr Zelenskyy saying he was ready to sign a peace deal “at any time”.
Zelenskyy and Trump during their extraordinary Oval Office row. Pic: Reuters
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But on the same day, the US president ordered a sudden freeze on shipments of US military aid to Ukraine, and Washington has since paused intelligence sharing with Kyiv and halted cyber operations against Russia.
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Mr Zaluzhnyi said the pause in cyber operations and an earlier decision by the US to oppose a UN resolution condemning Russian aggression in Ukraine were “a huge challenge for the entire world”.
He added that talks between the US and Russia – “headed by a war criminal” – showed the White House “makes steps towards the Kremlin, trying to meet them halfway”, warning Moscow’s next target “could be Europe”.
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