Eighty days into government after a landslide election win, Sir Keir Starmer came to Liverpool as the first Labour prime minister in 15 years to address conference.
It should have been a joyous victory lap, but instead this is a PM already stumbling, wrong-footed by a row over the amount of freebies he took as leader of the opposition, and dysfunction in Number 10.
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A year ago in the very same conference hall, Sir Keir was being cheered on stage almost like a rock star, with staffers nearly in tears as their leader made his pitch to become prime minister.
And while the reception was still very warm as he delivered his speech on Tuesday, the country is fast cooling on their new leader.
The hope – and hunger – on display at last year’s conference when Labour were on the cusp of power, and Sir Keir was riding high in the polls, has given way to the hard reality of governing.
New polling by Opinium reveals that the prime minister’s approval rating has dropped 45 points to -26 since he became the country’s leader. It now makes him – by a point – less popular than his predecessor Rishi Sunak.
Meanwhile, the row over the prime minister taking free clothes, holidays and tickets to football matches and concerts has also cut through, with two-thirds of people in a recent YouGov poll saying it was wrong to do it.
So his task at conference was to try to get his “mission-led” government back on track and try to convey the purpose of the short-term pain he is warning us all about.
It was a speech of three parts.
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Starmer: ‘Light at the end of the tunnel’
The first was to convey the “change begins” message by running through some of the measures his new government have put in train – from setting up a new border security command to beginning planning reforms or launching Great British Energy to invest in renewable power.
The second was to “fix the foundations” as he explained the “tough decisions” he was making, and acknowledging the decision to cut winter fuel allowance had driven concern. His message was consistent to that in the election and immediate aftermath – change will take time and “it will be hard”.
The third element was to try to inject some sense of where the country could end up.
He told the audience: “The truth is that if we take long-term decisions now, if we stick to the driving purpose behind everything we do – higher economic growth, so living standards rise in every community; our NHS facing the future – waiting lists at your hospital down; safer streets in your community; stronger borders; more opportunities for your children; clean British energy power in your home – then that light at the end of this tunnel, that Britain belongs to you, we get there much more quickly.”
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This was another Starmer speech brimming with rhetoric around “national renewal” and a government “in the service of working people”. But for his massive majority, the announcements in this speech were modest.
When this government says “change begins”, the word “begins” is doing a lot of heavy lifting.
Insiders tell me that the inheritance from the Conservatives was much worse than they thought, the chancellor is finding her job much more difficult than she expected, and improvements to public services will be coming at the end of the parliament.
But while the public might have sympathy for that, where the leadership seems to be falling down is on the culture change that Sir Keir promised when he was leader of the opposition.
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‘Describe Starmer’s speech in one word?’
His was to be a government of service. He was going to restore trust in politics. He was going to heal the “wounds of trust” between voters and those who govern.
On this, Starmer has struggled, as the message discipline and slickness of the leadership campaign gives way to infighting and rows over freebies.
Away from the podium speeches and around the fringes of this conference, in a late night bar or over a quiet coffee, the mood is defensive and a little deflated.
There is private admission from senior ministers and staffers that the PM has got into a mess over the “free gear Keir” row.
Two figures tell me that it should have been shut down earlier and more emphatically, instead of running over the weekend into conference.
“We should have killed it off, it looks bad,” said one senior government figure.
Another expressed frustration that the government had gone off message and Downing Street didn’t clean it up quickly enough, with the headlines over donations kick starting the conference, adding: “We need to get back to the missions.”
One figure told me Starmer had been “upset” by all of it, particularly as it has brought his wife Victoria into the spotlight.
You can only imagine the frustration he must privately be feeling as he comes into the first conference in 15 years where Labour are in power on the backfoot, with his ratings falling and public opprobrium just weeks after delivering a landslide.
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PM needs to ‘lift’ conference
There is also unhappiness around the Number 10 leaks. On the side-lines, political operatives are whispering about the fury felt among many of the backroom special advisers who are seeing their pay cut as they move into government, while Sue Gray’s pay rise puts her on more than the prime minister.
“The advisers hate Sue Gray,” is how one figure put it.
It is a huge frustration to Starmer, who I am told highly values her advice.
Cabinet ministers also speak highly of Ms Gray in private. One told me: “On the machinery of government, she’s really helpful linking up different departments and cabinet ministers and helping us work out how it is done.”
Those who know the PM well say that Ms Gray is not going anywhere, and that the task after this conference will be to get the barnacles off the boat and focus relentlessly again on the missions.
Sir Keir wanted to lift voters’ eyes back to the horizon and “the light at the end of the tunnel” in his first conference as prime minister.
But instead he is personally weighed down by his promise to do things differently and his decision to take over £107,000 in freebies in the last parliament.
It’s hard to sell a message of “change begins” when there are questions about whether your actions match your words.
The last blast furnaces left operating in Britain could see their fate sealed within days, after their Chinese owners took the decision to cut off the crucial supply of ingredients keeping them running.
Jingye, the owner of British Steel in Scunthorpe, has, according to union representatives, cancelled future orders for the iron ore, coal and other raw materials needed to keep the furnaces running.
The upshot is that they may have to close next month – even sooner than the earliest date suggested for its closure.
Read more: Thousands of jobs at risk as British Steel consults unions over closure
The fate of the blast furnaces – the last two domestic sources of virgin steel, made from iron ore rather than recycled – is likely to be determined in a matter of days, with the Department for Business and Trade now actively pondering nationalisation.
The upshot is that even as Britain contends with a trade war across the Atlantic, it is now working against the clock to secure the future of steelmaking at Scunthorpe.
The talks between the government and Jingye broke down last week after the Chinese company, which bought British Steel out of receivership in 2020, rejected a £500m offer of public money to replace the existing furnaces with electric arc furnaces.
The sum is the same one it offered to Tata Steel, which has shut down the other remaining UK blast furnaces in Port Talbot and is planning to build electric furnaces – which have far lower carbon emissions.
These steel workers could soon be out of work
However, the owners argue that the amount is too little to justify extra investment at Scunthorpe, and said last week they were now consulting on the date of shutting both the blast furnaces and the attached steelworks.
Since British Steel is the main provider of steel rails to Network Rail – as well as other construction steels available from only a few sites in the world – the closure would leave the UK more reliant on imports for critical infrastructure sites.
However, since the site belongs to its Chinese owners, a decision to nationalise the site would involve radical steps government officials are wary of taking.
They also fear leaving taxpayers exposed to a potentially loss-making business for the long run.
The dilemma has been heightened by the sharp turn in geopolitical sentiment following Donald Trump’s return to the White House.
The incipient trade war and threatened cut in American support to Europe have sparked fresh calls for countries to act urgently to secure their own supplies of critical materials, especially those used for defence and infrastructure.
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Gareth Stace, head of UK Steel, the industry lobby group, said: “Talks seem to have broken down between government and British Steel.
“My advice to government is: please, Jonathan Reynolds, Business Secretary, get back round that negotiating table, thrash out a deal, and if a deal can’t be found in the next few days, then I fear for the very future of the sector, but also here for Scunthorpe steelworks.”
British Steel declined to comment.
UK
Prince Andrew’s Pitch@Palace branded ‘crude attempt to enrich himself’ as Chinese spy documents set to be released
Prince Andrew’s efforts to make money from his Pitch@Palace project have been branded as a “crude attempt to enrich himself” at the expense of “unsuspecting tech founders”, as new documents may shed more light on what he and his team have been attempting to sell.
Today is the deadline for documents to be released relating to Prince Andrew‘s former senior adviser Dominic Hampshire and his interactions with the alleged Chinese spy Yang Tengbo.
In February, an immigration tribunal heard how the intelligence services had contacted Mr Hampshire about Mr Yang back in 2022. Mr Yang helped set up Pitch@Palace China, a branch of the duke’s scheme to help young entrepreneurs.
The alleged Chinese spy, Yang Tengbo, has links with Prince Andrew
Yang Tengbo. Pic: Pitch@Palace
Judges banned Mr Yang from the UK, saying his association with a senior royal had made Prince Andrew “vulnerable” and posed a threat to national security. Mr Yang challenged that decision at the Special Immigration Appeals Commission (SIAC).
Since that hearing, media organisations have applied for certain documents relating to the case and Mr Hampshire’s support for Mr Yang to be made public. SIAC agreed to release some information of public interest. It is hoped they may include more details on deals that he was trying to do on behalf of Prince Andrew.
So what do we know about potential deals for Pitch@Palace so far?
In February, Sky News confirmed that palace officials had a meeting last summer with tech funding company StartupBootcamp to discuss a potential tie-up between them and Prince Andrew relating to his Pitch@Palace project.
The palace wasn’t involved in the fine details of a deal but wanted guarantees to make sure it wouldn’t impact the Royal Family in the future. Sky News understands from one source that the price being discussed for Pitch was around £750,000 – there are, however, reports that a deal may have stalled.
Photos we found on the Chinese Chamber of Commerce website show an event held in Asia between StartupBootcamp and Innovate Global, believed to be an offshoot of Pitch.
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Who is alleged Chinese spy, Yang Tengbo?
Documents, released in relation to the investigations into Mr Tengbo, have also shown how much the duke has always seen Pitch as a way of potentially making money. One document from 21 August 2021 clearly states “the duke needed money at the time, and saw the relationships with China through Pitch as one possible source of funding”.
But Prince Andrew’s apparent intention to use Pitch to make money has led to concerns about whether he is unfairly using the contacts and information he gained when he was a working royal.
Norman Baker, former MP and author of books on royal finances, believes it is “a crude attempt to enrich himself” and goes against what the tech entrepreneurs thought they were signing up for.
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He told Sky News: “The data given by these business people was given on the basis it was an official operation and not something for Prince Andrew, and so in my view, Prince Andrew had no right legally or morally to take the data which has been collected, a huge amount of data, and sell it…
“And quite clearly if you’re going to sell it off to StartupBootcamp, that is not what people had in mind. The entrepreneurs who joined Pitch@Palace did not do so to enrich Prince Andrew,” he said.
Rich Wilson was one tech entrepreneur who was approached at the start of Pitch@Palace to sign up, but he stepped away when he spotted a clause in the contract saying they’d be entitled to 2% equity in any funding he secured.
He feels Prince Andrew is continuing to use those he made a show of supporting.
He said: “It makes me feel sick. I think it’s terrible – that he is continuing to exploit unsuspecting tech founders in this way. A lot of them, I’m quite grey and old in the tooth now, I saw it coming, but clearly most didn’t. And a lot of them were quite young.
“It’ll be their first venture and you’re learning on the trot, so to speak. So to take advantage of people in such a major way – that’s an awful, sickening thing to do.”
We approached StartupBootcamp who said they had no comment to make, and the Duke of York’s office did not respond.
With reports that a deal may have stalled, it could be a big setback for the duke – especially with questions still about how he’ll continue to pay for his home on the Windsor estate now that the King no longer gives him financial support.
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