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Grant Shapps has been announced as the UK’s new defence secretary, as the prime minister carries out a mini-reshuffle at the top of government.

The appointment comes after Ben Wallace revealed last month he would be leaving the role the next time Rishi Sunak made changes to his cabinet – as well as stepping down as an MP at the next election.

Mr Shapps had been serving as the energy security and net zero secretary before his promotion to the Ministry of Defence.

Politics live: Mini-reshuffle begins – follow live updates

The new role will be his fifth cabinet position in a year – having been transport secretary under Boris Johnson, having a brief stint as home secretary under Liz Truss, and having been appointed business secretary when Mr Sunak first took office.

It is not yet clear who will replace Mr Shapps in his current role, but minister for children, Claire Coutinho, was seen entering Number 10 this morning.

Sky News’ deputy political editor Sam Coates said both MPs were “loyalists”, adding they had been chosen “not just perhaps because of their skills, but because they have stuck by Rishi Sunak”.

More on Ben Wallace

Claire Coutinho, minister for children, families and wellbeing, arrives at Downing Street ahead of a cabinet reshuffle in London, Britain, August 31, 2023. REUTERS/Hollie Adams
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Minister for children, Claire Coutinho, was spotted heading into Downing Street on Thursday morning.

Tweeting after his appointment, the new defence secretary said he was “honoured to be appointed” to his post and he paid tribute to his predecessor’s “enormous contribution… to UK defence and global security”.

Mr Shapps added: “As I get to work… I am looking forward to working with the brave men and women of our Armed Forces who defend our nation’s security. And continuing the UK’s support for Ukraine in their fight against Putin’s barbaric invasion.”

But the new hire has already attracted criticism from opposition parties, with Liberal Democrat defence spokesperson Richard Foord saying: “At a time when the Armed Forces need someone to stand up for them, Rishi Sunak has appointed a yes-man.

“The Conservative government merry-go-round has to stop. They have taken the Armed Forces for granted for too long, and we are all left less safe as a result.”

Labour’s shadow defence secretary John Healey congratulated his new opposite number on Twitter – but accompanied his welcome with a dig.

“The first duty of any government is to keep our country safe and I will always work with the new defence secretary on this basis, especially on Ukraine.

“But after 13 years of Tory defence failures, a change at the top will not change this record.”

‘Time to invest’

Mr Wallace officially resigned his post on Thursday morning, saying it had been a “privilege” to serve in the post for four years.

In his letter to the PM, he said the Ministry of Defence was now “more modern, better funded and more confident than the organisation I took over in 2019”, and it was “back on the path to being once again world class with world class people”.

And in a parting shot to secure his department’s future, Mr Wallace added: “I know you agree with me that we must not return to the days where defence was viewed as a discretionary spend by government and savings were achieved by hollowing out.

“I genuinely believe that over the next decade the world will get more insecure and more unstable. We both share the belief that now is the time to invest.”

British Secretary of State for Defence Ben Wallace walks on Downing Street on the day of the last cabinet meeting before the summer recess, in London, Britain, July 18, 2023. REUTERS/Anna Gordon
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Ben Wallace, announced he planned to step down in July, but officially resigned on Thursday.

Mr Sunak responded to the letter by saying the outgoing defence secretary had “served our country with distinction”.

He added: “I fully understand your desire to step down after eight years of exacting ministerial duties. As you say, the jobs you have done have required you to be available on a continuous basis.

“But I know you have more to offer public life both here and internationally. You leave office with my thanks and respect.”

A Labour source said Mr Wallace had “shown important leadership in supporting Ukraine from the start”.

But, while they said the former minister “deserves credit for his support” of Ukrainian fighters, “his record on British armed forces has been poor, with cuts and procurement failures the order of the day”.

The source added: “The new defence secretary needs to get a grip, boost British forces and give them the resources, kit and accommodation they deserve.”

Former prime minister Boris Johnson said he was “sad to see the departure” of Mr Wallace, who “got so many calls right – especially on Ukraine”. But he praised the expected appointment of Mr Shapps, calling it “an excellent choice”.

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Twenty warnings for Sir Keir Starmer from new deputy leader Lucy Powell

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Twenty warnings for Sir Keir Starmer from new deputy leader Lucy Powell

Labour’s new deputy leader Lucy Powell promised to be Sir Keir Starmer’s ally.

Yet in her victory speech she criticised his government and its record no fewer than 20 times. And told him to raise his game, or else.

Politics live: Follow for updates as Labour names new deputy leader

Here’s what she said – and what she meant:

  1. “Division and hate are on the rise. Discontent and disillusionment widespread.” What she meant: The Labour government has been a huge disappointment.
  2. “The desire for change is impatient and palpable.” What she meant: You’ve had 16 months to deliver change – voters are saying, “Get on with it”.
  3. “We have to offer hope, to offer the big change the country’s crying out for.” What she meant: Stop tinkering. Get more radical. You’ve got a huge Commons majority, after all.
  4. “We must give a stronger sense of purpose, whose side we’re on and of our Labour values and beliefs.” What she meant: We’re not doing enough for working people or tackling inequality.
  5. “People feel that this government is not being bold enough in delivering the kind of change we promised.” What she meant: Our voters are deserting us because they don’t see change.
  6. “I’ll be a champion for all Labour values and boldness in everything we do.” What she meant: Watch out! I’m going to hound you and hold your feet to the fire!
  7. “We won’t win by trying to out-Reform Reform, but by building a broad progressive consensus.” What she meant: Stop the lurch to the Right on immigration. We’re better than that.
  8. “It starts with wrestling back the political megaphone and setting the agenda more strongly.” What she meant: We need to sharpen up our communication and selling our message.
  9. “We’ve let Farage and his ilk run away with it.” What she meant: The Reform UK leader is running rings round us in communicating and campaigning. We’re too sluggish and flat-footed.
  10. “For too long the country and the economy has worked in the interests of the few and not the many.” What she meant: Winter fuel payment cuts were a disaster and the two-child benefit cap has to go.
  11. “Trickle down economics hasn’t worked.” What she meant: No more tax cuts for the rich. It’s time for a wealth tax, for example, to redistribute wealth.
  12. “Life has just got harder and harder, less and less secure in work, in housing, in making ends meet.” What she meant: We’re failing to tackle the cost of living crisis and housing shortages.
  13. “The deep-seated inequalities that have widened in wealth in regions in class in health need fundamentally redressing.” What she meant: We’re failing to look after our “red wall” voters.
  14. “Re-unite our voter coalition and re-unite the country.” What she meant: Start governing for everyone, urban and rural, rich and poor, North and South. Stop neglecting poorer regions.
  15. “We need to step up.” What she meant: For goodness sake, sort out the chaos in 10 Downing. Stop blaming aides and civil servants and sacking them. Get a grip!
  16. Members and affiliates “don’t feel part of the conversation or party of the movement right now. And we have to change that.” What she meant: Stop ignoring and alienating activists, MPs and unions.
  17. “Unity and loyalty comes from collective purpose, not from command and control.” What she meant: Stop the control freakery in parliament and party management. It’ll backfire.
  18. “Debating, listening and hearing is not dissent. It’s all strength.” What she meant: Listen to your backbenchers and stop suspending them when they vote against policies like welfare cuts.
  19. “As your deputy, my commitment is to change the culture.” What she meant: I’m going to stand up for rebels and critics and force you to ditch the control freakery and bad decisions.
  20. “At the election 16 months ago the British people voted for change. I’m here to do everything I can to make that change a reality.” What she meant: Raise your game, or else!

Read more from Sky News:
The one thing Farage and Polanski have in common
China ‘enemy’ reference removed from witness statement

She said it all with a smile, but there was menace there.

As deputy leader, Lucy Powell was always going to be a critical friend. So there you go, prime minister. Here’s 20 things you need to do for her to be more friend than critic.

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Who is Labour’s new deputy leader Lucy Powell and what does she stand for?

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Who is Labour's new deputy leader Lucy Powell and what does she stand for?

Lucy Powell has been elected as the deputy leader of the Labour Party.

But who is she and what does she stand for?

Powell began her career in politics working for Labour MPs Glenda Jackson and Beverley Hughes.

She then worked for a pro-EU campaign group.

After that, she ran Ed Miliband’s successful Labour leadership campaign and was his deputy chief of staff until she was elected as the MP for Manchester Central in 2012.

She has been at the forefront of Labour politics for over a decade, serving under Ed Miliband, Jeremy Corbyn and Keir Starmer.

After Labour won the last general election, she was appointed as the leader of the House of Commons in Starmer’s cabinet.

But last month she was sacked in the cabinet reshuffle and came to be seen as the anti-Starmer candidate.

During the deputy leadership campaign, Powell promised to “provide a stronger, more independent voice” for members of the Labour Party.

And in her acceptance speech, she said the government hadn’t been bold enough, and that it needed to step up.

So how much of a problem is she going to be for Keir Starmer?

Her new role – and being outside the cabinet – means she will be free to criticise the government, which could make life more difficult for the prime minister.

Read More:
Lucy Powell named Labour’s new deputy leader
Powell will take a ‘submarine approach’ – for now

Powell has been outspoken about her desire for the government to lift the two child benefit cap – and also called for the country to work for the many and not the few – a Corbyn-era slogan – and that Labour must stop handing the megaphone over to Reform and letting them run away with it.

Starmer will be conscious that an MP he sacked not long ago is now in a powerful role able to speak freely and attack his decisions.

But Powell is not free from her own controversies.

In May, Lucy Powell called grooming gangs a dog whistle issue – something she later had to clarify after it caused outrage among campaigners and opposition parties.

She also vocally defended Labour’s unpopular cut to winter fuel allowance while in cabinet, before the government then U-turned on the policy – she then criticised the proposed welfare cuts after she was sacked from government.

Powell insists she wants to help Keir Starmer, providing constructive criticism and a voice for Labour members.

But will Keir Starmer see it that way?

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Tax hike could lead to higher food prices, supermarkets warn

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Tax hike could lead to higher food prices, supermarkets warn

The UK’s largest supermarkets are calling on the chancellor to exclude stores from a new business rates surtax, warning that shoppers will bear the brunt of higher prices.

Tesco, Sainsbury’s, Marks & Spencer, Waitrose, Morrisons, Asda, Aldi and Lidl are among the stores that have signed a letter addressed to Rachel Reeves, arguing that easing taxes on grocers would help curb food inflation.

Industry group the British Retail Consortium (BRC), which organised the letter, said large shops could face higher business rates if included in the government’s proposed surtax on properties valued at more than £500,000.

Smaller high street firms are expected to benefit from reduced business rates under the government’s plans.

“If the industry faces higher taxes in the coming Budget – such as being included in the new surtax on business rates – our ability to deliver value for our customers will become even more challenging, and it will be households who inevitably feel the impact,” the letter reads.

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Chancellor faces tough budget choices

“Large retail premises are a tiny proportion of all stores, yet account for a third of retail’s total business rates bill – meaning another significant rise could push food inflation even higher.”

The supermarkets are asking Ms Reeves to “address retail’s disproportionate tax burden”, saying that doing so would “send a strong signal of support for the industry and of the government’s commitment to tackling food inflation”.

More on Rachel Reeves

The chancellor is widely expected to raise taxes after bleak economic forecasts and a string of reversals on welfare cuts, which have made it harder for her to stick to her borrowing limits.

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Helen Dickinson, the BRC’s chief executive, said: “Supermarkets are doing everything possible to keep food prices affordable, but it’s an uphill battle, with over £7 billion in additional costs in 2025 alone.

“From higher national insurance contributions to new packaging taxes, the financial strain on the industry is immense.”

The Treasury has been contacted for comment.

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