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Sir Keir Starmer has insisted he will not allow the UK to become a “rule-taker” after his comments suggesting he did not want to diverge from EU rules sparked criticism.

The Labour leader immediately rejected suggestions from the Conservatives that he wanted to take the UK back into the EU, telling reporters: “There is no case for going back into the EU, and that includes the single market and customs union.”

“Equally, we will not be a rule-taker,” he continued. “The rules and laws of this country will be made in parliament according to the national interest.”

However, he added: “But that does not mean that a Labour government wants to lower standards on food, wants to lower standards on people’s rights at work.

“The Labour Party has been completely consistent on those issues for many many years – there is no surprise here. Incidentally, this is also government policy.”

His remarks come after the Labour leader declared “we don’t want to diverge” from EU rules in footage of a conference of centre-left leaders in Canada seen by Sky News.

Read more: Labour is ‘obsessed with getting into power’ – politics latest

Sir Keir argued Britain’s relationship with the EU could be much stronger, while still remaining outside the bloc and outside the single market, “the more we share a future together”.

The comments have triggered a fresh discussion over how Labour would approach Brexit, with the Tories immediately seizing the opportunity to accuse Sir Keir of wanting to take the UK back into the EU.

Levelling Up Secretary Michael Gove said the remarks had shown “the real Keir Starmer” and claimed the Labour leader wanted to “return us into the EU” and “re-run the Brexit agonies of the past”.

Earlier on Friday, a Labour frontbencher told Sky News there would “clearly be ways” in which the UK does diverge from the EU, including through individual trade deals.

James Murray, Labour’s shadow financial secretary to the Treasury, said his party had been “very clear throughout” about any “red lines” there would be with the EU post-Brexit.

He said “we don’t want to be in the single market, we don’t want to be in a customs union, we don’t want to bring back freedom of movement – but we do want a better trading relationship”.

Mr Murray hit back at the criticism from the Conservatives and said they had “no plan to make Brexit work”.

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 Mark Spencer accused Sir Keir of ‘another flip flop’.

Asked how the UK could maximise the advantage of Brexit if it did not diverge from EU rules, Mr Murray told Sky News: “Well, there will clearly be ways in which we do diverge in terms of striking our own trade deals with other countries and so on.

“But the conversation that we’re having today is focused on UK standards and I think what Keir was saying is we have no interest in weakening or watering down UK standards when it comes to things like food standards, consumer protection, workers rights and so on.”

His remarks were echoed by London mayor Sadiq Khan, who said Sir Keir is “right to say, ‘look, the current deal we have with the European Union has got big problems in it’. Some characterise it – I would – as an extreme, hard Brexit deal.”

He said it’s “right” that Sir Keir would seek to “look into having a better deal” when the current deal, negotiated by Boris Johnson, is up for review in 2025.

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Do Labour want EU rules?

Mr Murray said there would still be areas where a Labour government would diverge from Brussels, for example by striking trade deals around the world.

He added: “All we’re seeing under the Conservatives is extra red tape on businesses, which means that it’s impacting on economic growth, which means it’s deepening the cost-of-living crisis.”

Sir Keir’s statement was made just days after he was forced to shut down speculation he might join an EU quota system on migrants after he said he would talk to the bloc about a returns deal – prompting the Conservatives to brand him “Mr Open Borders”.

His statement on Saturday evening came in response to a question from John McTernan, a former aide to Sir Tony Blair, at a conference for progressive leaders in Montreal.

Sir Keir said: “Most of the conflict with the UK being outside of the EU arises in so far as the UK wants to diverge and do different things to the rest of our EU partners.

“Obviously the more we share values, the more we share a future together, the less the conflict. And actually different ways of solving problems become available.

Read more:
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“Actually we don’t want to diverge, we don’t want to lower standards, we don’t want to rip up environmental standards, working standards for people that work, food standards and all the rest of it.

“So suddenly, you’re in a space where, notwithstanding the obvious fact that we’re outside the EU and not in the [European Economic Area], there’s a lot more common ground than you might think.”

A Labour spokesperson said following the remarks that the UK had “left the European Union and we’re not going back in any form”.

“Any decisions on what standards we follow will be made in the UK parliament,” they added.

“The Tories have not used Brexit to diverge on food, environmental or labour standards and if they have a plan to do so then they should come clean with people.”

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Cutting cash ISA allowance could backfire – and make mortgages more expensive, MPs warn

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Cutting cash ISA allowance could backfire - and make mortgages more expensive, MPs warn

Cutting the annual allowance for cash ISAs could backfire in multiple ways, an influential group of MPs has warned the government.

For months, speculation has been growing that the chancellor may slash the yearly limit for tax-free savings – potentially from £20,000 to £10,000.

The government is hoping to encourage savers to invest in stocks and shares ISAs instead, which can offer greater long-term returns and improve financial health.

But according to the Treasury Committee, slashing allowances would be unlikely to achieve this – and could lead to higher prices for consumers.

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Chancellor faces tough budget choices

Building societies rely on cash ISA savings to fund mortgage lending – and a drop in deposits might lead to higher interest rates or fewer products on the market.

Committee chairwoman Dame Meg Hillier said “we are a long way” from achieving a culture where substantial numbers of Britons invest in the stock market.

“This is not the right time to cut the cash ISA limit,” she warned. “Instead, the Treasury should focus on ensuring that people are equipped with the necessary information and confidence to make informed investment decisions.

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“Without this, I fear the chancellor’s attempts to transform the UK’s investment culture simply will not deliver the change she seeks, instead hitting savers and borrowers.”

Read more: How to get started with a stocks and shares ISA

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Govt ‘not satisfied’ after inflation sticks at 3.8%

The latest figures suggest two-thirds of contributions to ISAs in the 2023/24 tax year went to cash accounts – bringing total holdings to £360bn.

An estimated 14.4 million consumers solely save in a cash ISA, with the average balance standing at £6,993.

Surveys suggest that, if allowances were cut, consumers may move their cash to alternative savings accounts where they would have to pay tax on interest.

Skipton Group executive Charlotte Harrison previously warned: “Building societies, which funds over a third of all first-time buyer mortgages, rely on retail deposits like cash ISAs to fund their lending.

“If ISA inflows fall, the cost of funding is likely to rise, and that means mortgages could become both more expensive and harder to access.”

She claimed a policy change could end up “penalising savers who want low-risk, flexible options” – adding: “Cash ISAs work. Undermining them doesn’t.”

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Tax hikes possible, Reeves tells Sky News

Chancellor Rachel Reeves said: “At the moment, often returns on savings and returns on pensions are lower than in comparable countries around the world.

“I do want to make sure that when people put something aside for the future, they get good returns on those savings.”

The committee’s warning comes amid speculation over whether Ms Reeves will raise income tax at next month’s budget – breaking a key Labour manifesto pledge.

Newspaper reports have suggested that the basic rate of income tax could be increased for the first time since the 1970s – up 1p to 21%.

This could raise about £8bn and help tackle a black hole in the country’s finances, but risks squeezing consumers further as a cost-of-living crisis continues.

A 1p rise to the higher band of income tax – taking that rate to 41% – is also believed to be under consideration, but this would only boost the nation’s coffers by £2bn.

Ms Reeves has refused to rule out such a move, telling Sky’s deputy political editor Sam Coates that she is looking at both tax rises and spending cuts ahead of her statement to the Commons on 26 November.

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Bank of England probes data-mining lending strategies fueling AI bets

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Bank of England probes data-mining lending strategies fueling AI bets

Bank of England probes data-mining lending strategies fueling AI bets

The Bank of England is worried that a rise in financiers’ lending to data center lending may cause an AI bubble reminiscent of the dot-com crash in the early 2000s.

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Trump to nominate SEC’s ‘pro-crypto’ Michael Selig as CFTC chair: Report

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<div>Trump to nominate SEC's 'pro-crypto' Michael Selig as CFTC chair: Report</div>

<div>Trump to nominate SEC's 'pro-crypto' Michael Selig as CFTC chair: Report</div>

The rumored nomination of Michael Selig follows the CFTC nomination process hitting a snag in September when Brian Quintenz was withdrawn.

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