Sir Keir Starmer will announce later today that the UK’s nuclear deterrent is the “bedrock” of his plan to keep Britain safe.
If elected, the Labour leader plans for his party to prioritise defence procurement to strengthen UK security and economic growth, with an aim to direct British defence investment to British business first, with a higher bar set for any decision to buy abroad.
It comes as Sir Keir confirmed his ambition was to boost the defence budget to 2.5% of GDP, if it fits with Labour’s fiscal rules, according to an interview with the i newspaper.
He is expected to make the announcement during a trip to a shipyard in Barrow-in-Furness, Cumbria, to see nuclear submarines being built – the first visit of its kind by a Labour leader in more than 30 years.
Sir Keir is set to say: “The changed Labour Party I lead knows that our nation’s defence must always come first. Labour’s commitment to our nuclear deterrent is total.
“In the face of rising global threats and growing Russian aggression, the UK’s nuclear deterrent is the bedrock of Labour’s plan to keep Britain safe. It will ensure vital protection for the UK and our Nato allies in the years ahead, as well as supporting thousands of high-paying jobs across the UK.”
The Labour leader will also affirm the party’s commitment to the Aukus security pact and will pledge that the submarines should be built in Barrow “for decades to come”.
Image: Pic: PA
During the visit, Sir Keir will speak to workers, union members and apprentices from the shipyard, alongside shadow defence secretary, John Healey, and Australian high commissioner to the UK Stephen Smith.
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The party is set to campaign on its commitment to the nuclear deterrent in key communities in the nuclear supply chain, including: Plymouth Moor View, home to the Devonport shipyard; Filton and Bradley Stoke, home of Abbey Wood; and Argyll, Bute and South Lochaber, home to HMNB Clyde.
Mr Healey will add: “A strong defence industrial strategy will be hardwired into Labour’s mission 1 in government to drive economic growth across the UK. We will make it fundamental to direct defence investment first to British jobs and British industry.”
Image: Construction of the Ambush submarine in Barrow-in Furness. File pic: PA
‘Attempted distraction’ and ‘grotesque’ visit
Reacting to Sir Keir’s shipyard visit, Defence Secretary Grant Shapps claimed the trip was an “attempted distraction” from the “scandal” surrounding Angela Rayner, Labour’s deputy leader, who is continuing to face questions over her living arrangements and tax affairs before she became an MP.
He said Sir Keir and Mr Healey, “tried twice to put Jeremy Corbyn in charge of the nation’s armed forces”.
Referring to David Lammy, he said Labour’s shadow foreign secretary “even voted repeatedly to scrap Trident”.
“They are not the party to be trusted with our nation’s defences,” he added.
“This is just another attempted distraction from the Angela Rayner scandal. If Sir Keir Starmer cannot show leadership on this issue, how can he be trusted to make decision on national security.”
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‘Is spending 2.5% of GDP on defence enough?’
The SNP, which opposes having a nuclear deterrent in the UK, also criticised the visit as “grotesque” and accused Labour of throwing “billions more down the drain”.
The party’s defence spokesperson Martin Docherty-Hughes said: “Westminster has already wasted billions of pounds of taxpayers’ money on nuclear weapons and expensive nuclear energy.
“It is therefore grotesque that Sir Keir Starmer is prepared to throw billions more down the drain when his party claim there is no money to improve our NHS, help families with the cost of living or to properly invest in our green energy future.
“This money would be better spent on a raft of other things – not least investing in the green energy gold rush, which would ensure Scotland, with all its renewable energy potential, could be a green energy powerhouse of the 21st century.”
A US judge has granted prediction markets platform Kalshi a temporary reprieve from enforcement after the state of Connecticut sent it a cease and desist order last week for allegedly conducting unlicensed gambling.
The Connecticut Department of Consumer Protection (DCP) sent Kalshi, along with Robinhood and Crypto.com, cease and desist orders on Dec. 2, accusing them of “conducting unlicensed online gambling, more specifically sports wagering, in Connecticut through its online sports event contracts.”
Kalshi sued the DCP a day later, arguing its event contracts “are lawful under federal law” and its platform was subject to the Commodity Futures Trading Commission’s “exclusive jurisdiction,” and filed a motion on Friday to temporarily stop the DCP’s action.
An excerpt from Kalshi’s preliminary injunction motion arguing that the DCP’s action violates federal commodities laws. Source: CourtListener
Connecticut federal court judge Vernon Oliver said in an order on Monday that the DCP must “refrain from taking enforcement action against Kalshi” as the court considers the company’s bid to temporarily stop the regulator.
The order adds that the DCP should file a response to the company by Jan. 9 and Kalshi should file further support for its motion by Jan. 30, with oral arguments for the case to be held in mid-February.
Kalshi does battle with multiple US states
Kalshi is a federally regulated designated contract maker under the CFTC and, in January, began offering contracts nationally that allow bets on the outcome of events such as sports and politics.
Its platform has become hugely popular this year and saw a record $4.54 billion monthly trading volume in November, attracting billions in investments, with Kalshi closing a $1 billion funding round earlier this month at a valuation of $11 billion.
However, multiple US state regulators have taken issue with Kalshi’s offerings, which have led to the company being embroiled in lawsuits over whether it is subject to state-level gambling laws.
Kalshi sued the New York State Gaming Commission in October after the regulator sent a cease and desist order claiming it offered a platform for sports wagering without a license.
In September, Massachusetts’ state attorney general sued Kalshi in state court, which the company asked to be tossed. So far this year, Kalshi has sued state regulators in New Jersey, Nevada, Maryland and Ohio, accusing each of regulatory overreach.
Sir Keir Starmer has called for a tougher approach to policing Europe’s borders ahead of a meeting between leaders to discuss a potential shake-up of the European Convention on Human Rights (ECHR).
The prime minister said the way in which the ECHR is interpreted in courts must be modernised, with critics long claiming the charter is a major barrier to deportations of illegal migrants.
His deputy, David Lammy, will today be in Strasbourg, France, with fellow European ministers to discuss reforms of how the agreement is interpreted in law across the continent.
In an opinion piece for The Guardian, Sir Keir and his Danish counterpart, Mette Frederiksen, said the change was necessary to prevent voters from turning to populist political opponents.
Image: Small boat crossings have risen this year. File pic: PA
What’s the issue with the ECHR?
The ECHR, which is the foundation of Britain’s Human Rights Act, includes the right to family life in its Article 8.
That is often used as grounds to prevent deportations of illegal migrants from the UK.
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There has also been a rise in cases where Article 3 rights, prohibiting torture, were used to halt deportations over claims migrants’ healthcare needs could not be met in their home country, according to the Home Office.
The Conservatives and Reform UK have both said they would leave the ECHR if in power, while the Labour government has insisted it will remain a member of the treaty.
But Sir Keir admitted in his joint op-ed that the “current asylum framework was created for another era”.
“In a world with mass mobility, yesterday’s answers do not work. We will always protect those fleeing war and terror – but the world has changed, and asylum systems must change with it,” the two prime ministers wrote, as they push for a “modernisation of the interpretation” of the ECHR.
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System ‘more than broken’, says asylum seeker
What is happening today?
Mr Lammy is attending an informal summit of the Council of Europe.
He is expected to say: “We must strike a careful balance between individual rights and the public’s interest.
“The definition of ‘family life’ can’t be stretched to prevent the removal of people with no right to remain in the country [and] the threshold of ‘inhuman and degrading treatment’ must be constrained to the most serious issues.”
It is understood that a political declaration signed by the gathered ministers could carry enough weight to directly influence how the European Court of Human Rights interprets the treaty.
The UK government is expected to bring forward its own legislation to change how Article 8 is interpreted in UK courts, and is also considering a re-evaluation of the threshold for Article 3 rights.
Image: David Lammy will swap Westminster for Strasbourg today
The plans have been criticised by Amnesty International UK, which described them as weakening protections.
“Human rights were never meant to be optional or reserved for comfortable and secure times. They were designed to be a compass, our conscience, when the politics of fear and division try to steer us wrong,” Steve Valdez-Symonds, the organisation’s refugee and migrant rights programme director, said.
Sir Keir’s government has already adopted several hardline immigration measures – modelled on those introduced by Ms Federiksen’s Danish government – to decrease the number of migrants crossing the Channel via small boats.
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2:40
Beth Rigby: The two big problems with Labour’s asylum plan
Starmer-Macron deal ‘a sticking plaster’
Meanwhile, French far-right leader Jordan Bardella told The Daily Telegraph he would rewrite his country’s border policy to allow British patrol boats to push back small vessels carrying migrants into France’s waters if he were elected.
The National Rally leader called Sir Keir’s “one-in, one-out” agreement with Emmanuel Macron, which includes Britain returning illegal arrivals in exchange for accepting a matching number of legitimate asylum seekers, a “sticking plaster” and “smokescreen”.
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Far-right, 30, and France’s most popular politician
He said that only a complete overhaul of French immigration policy would stop the Channel crossings.
Mr Bardella is currently leading in opinion polls to win the first round of France’s next presidential election, expected to happen in 2027, to replace Mr Macron.
The race for the new US Federal Reserve chair is nearing the finish line, with US President Donald Trump reportedly set to begin interviewing finalists for the top job this week.
According to a report from the Financial Times on Tuesday, Treasury Secretary Scott Bessent has presented a list of four names to the White House.
One of these is former Fed governor Kevin Warsh, whom Bessent is scheduled to meet with on Wednesday. Another is National Economic Council director Kevin Hassett, who is seen as the frontrunner for the role.
Another two names would be picked from a list of other finalists, which includes Fed governors Christopher Waller and Michelle Bowman, and BlackRock chief investment officer Rick Rieder.
Trump and Bessent are expected to hold at least one interview next week, as a decision looks likely to be announced in January.
However, Trump has revealed he already has his eye on one particular candidate.
“We’re going to be looking at a couple different people, but I have a pretty good idea of who I want,” Trump said to journalists on Air Force One on Tuesday.
Kevin Hassett is a frontrunner for Fed chair role
The upcoming round of interviews suggests that Hassett may not be the clear lock in for the role as previously thought, though he is seen as the favorite.
Earlier this month, prediction market odds on Kalshi and Polymarket shot up for Hassett significantly following comments from Trump at the White House on Dec. 2.
While welcoming guests, Trump labeled Hassett as “potential Fed chair” leading many to assume the president had let a major hint slip.
With Hassett’s odds spiking to 85% after Trump’s comments last week, they have since declined to around 73% for Hassett, while Warsh’s odds sit at 13% on Kalshi at the time of writing, which has floated around this range over December.
Regardless of who ends up taking over as chair, the move is bound to impact crypto markets under the new leadership.
If elected, Hassett has asserted that he will be apolitical in terms of running the Fed, despite his close ties to Trump. Speaking with The Wall Street Journal this week, Hassett said that “You just do the right thing” when asked if he would blindly follow orders from Trump.
“Suppose that inflation has gotten from, say, 2.5% to 4%. You can’t cut,” Hassett said, adding that he would rely on his own “judgment, which I think the president trusts.”