The government will on Monday welcome more than £50bn of investment in the British economy as Sir Keir Starmer tries to reset his administration after a first hundred days marked by scandal and infighting.
Sky News has learnt that the International Investment Summit in the City of London will comprise more than £50bn of deal announcements – or roughly twice the £28bn unveiled at the previous comparable gathering held under the former Conservative administration.
The total figure to be announced on Monday was still being finalised this weekend amid continuing negotiations with companies.
Sources said, however, that the final amount would “certainly” be in excess of £50bn.
The summit will be attended by executives from globally important companies such as Alphabet, BlackRock, Goldman Sachs and Deepmind.
In recent days, a row emerged involving DP World, which had been planning to announce a £1bn investment in the London Gateway port.
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The company threatened to cancel its attendance at the conference and review the investment in the wake of comments by the transport secretary, Louise Haigh, labelling its P&O Ferries subsidiary “a rogue operator”.
After Downing Street officials intervened, the dispute appeared to have been resolved this weekend, with the investment proceeding.
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Sky News can also reveal that the summit will include a behind-closed-doors session chaired by the business secretary, Jonathan Reynolds, and a number of chief executives.
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Image: Jonathan Reynolds is to meet with business leaders behind closed doors. File pic: Reuters
The group will, according to insiders, jointly scrutinise a green paper on industrial strategy that will also be published on Monday.
One invitee said they had been “asked to mark the government’s homework”.
A source close to Mr Reynolds said: “When the business secretary said this government would work in partnership with business, he meant it.
“We respect the expertise of business leaders and want their voice at the heart of policymaking.
“That’s why we’re getting them around the table before the strategy is published, so it works for the industries it’s designed to benefit.”
On Friday, Sky News revealed that Sir Keir would use his speech at the investment summit to say that his administration will scrutinise watchdogs across a range of industries to ensure that they are not acting as barriers to growth.
Sir Keir is said by officials to be determined to deliver the message that regulators such as Ofwat, Ofgem, the Prudential Regulation Authority and the Competition and Markets Authority should be focused on the competitiveness of the UK economy.
The event is being seen as a test of Labour’s economic agenda in the eyes of investors which wield influence over the destination of trillions of pounds of investment funding.
His speech will come, however, against the backdrop of a financial crisis at Thames Water, Britain’s biggest water utility, which is backed by sovereign wealth funds and pension funds from countries including Abu Dhabi, Canada and China.
Reports in recent weeks have suggested that global investors have become so alarmed by Ofwat’s approach to the Thames Water crisis that they are reluctant to commit further sums to British infrastructure projects.
On Thursday, the government appointed Poppy Gustafsson, the former boss of cybersecurity company Darktrace, as investment minister, ensuring that the government avoided the ignominy of staging Monday’s summit without a minister for investment being in place.
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There was one clear, united message from today’s virtual meeting of leaders – that they rejected Vladimir Putin’s “yes, but” approach to a ceasefire.
The “coalition of the willing” – the 27 leaders, plus NATO and the EU led by Sir Keir Starmer and Emmanuel Macron – want the Russian president to mirror Ukraine’s pledge for a 30-day pause in fighting, in order to hammer out a sustainable peace deal.
Sir Keir made that very clear, and suggested the attendees at the meeting were behind this approach.
The prime minister said: “Volodymyr [Zelenskyy] has committed to a 30-day unconditional ceasefire, but Mr Putin is trying to delay, saying there must be a painstaking study before a ceasefire can take place.
“Well, the world needs action, not a study, not empty words and conditions. So my message is very clear. Sooner or later, Putin will have to come to the table.”
Image: ‘Coalition of the willing’. Pic: Downing Street
There are two reasons for this challenge – an immediate end to fighting is a goal in itself, but many of those in today’s call, including Sir Keir, do not trust Mr Putin to uphold promises on peace and are trying to convince US President Donald Trump to be more clear-eyed about the Russian approach.
Challenging the Russian leader to follow the US request for a ceasefire and watching him refuse is designed to send a message to the White House as well as the Kremlin.
There were, however, bigger unknowns left hanging.
One of which was the clear signal from Sir Keir that he is still relying on a US security guarantee in order to bring on board a “coalition of the willing” who might be able to provide troops to Ukraine.
There are, however, many that don’t think that that US security guarantee is coming in any substantial way, based on the noises coming out of the US.
That is a big problem for the PM, as government sources tell me that the scope and the remit of any potential peacekeeping force is determined by what protection the US might be able to provide.
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The second issue that is being sidestepped by Sir Keir is what any peace keeping might be able to do in practice.
UK troops, like those of any NATO country, cannot engage directly with Russia in combat for fear of triggering a much bigger conflagration.
So if not that, then what is their purpose – a question repeatedly asked by experts like the former national security adviser Lord Ricketts.
I put exactly this to the PM, but did not get an answer. He suggested that we were a long way away from getting an an answer, even though military chiefs also appear to be meeting to “operationalise” plans on Thursday.
How can they operationalise a plan that does not, and currently cannot, have a remit?
Today Sir Keir heralded the participation of Canada, Australia and New Zealand on the call, as part of the effort.
But if the remit of the coalition of the willing isn’t clear, how can it truly be effective?
Sir Keir Starmer will host a virtual meeting of world leaders today to discuss peacekeeping in Ukraine, and he will use the call to say that now is the time for “concrete commitments”, Downing Street has said.
Around 25 leaders are expected to join the call this morning, in which they will discuss in more detail the peacekeeping mission the prime minister has called the ‘coalition of the willing’.
Sir Keir will ask allies to continue to ramp up military support to Ukraine.
He will also say countries need to increase economic pressure on Russia in the short term, and be prepared to support an eventual peace deal over the long term, should an agreement be reached.
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Attendees will also receive an update on the discussions of defence ministers and military chiefs in Paris this week, and they will all set out details of their own efforts to unlock further military support for Ukraine.
Downing Street has confirmed that some European countries, the EU Commission, NATO, Canada, Ukraine, Australia and New Zealand are expected to join the virtual meeting.
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1:27
Is a ceasefire in Ukraine still viable?
Starmer: The world needs to see action
In a statement ahead of the call, the prime minister said: “We can’t allow President Putin to play games with President Trump’s deal.
“The Kremlin’s complete disregard for President Trump’s ceasefire proposal only serves to demonstrate that Putin is not serious about peace.
“If Russia finally comes to the table, then we must be ready to monitor a ceasefire to ensure it is a serious and enduring peace, if they don’t, then we need to strain every sinew to ramp up economic pressure on Russia to secure an end to this war.”
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3:47
Peace ‘must be secure’, PM tells Sky News
He went on to accuse the Russian president of “trying to delay” by “saying there must be a painstaking study before a ceasefire can take place”.
“The world needs to see action, not a study or empty words and pointless conditions,” he continued.
“My message to the Kremlin could not be clearer: stop the barbaric attacks on Ukraine, once and for all, and agree to a ceasefire now. Until then, we will keep working around the clock to deliver peace.”
Sir Keir has said Britain could send peacekeepers to Ukraine in the event of a ceasefire deal, but has called on Washington to offer a security ‘backstop’ to those forces.
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2:14
Putin lists ceasefire conditions
Moscow has reportedly also presented a “list of demands” to the US to end the war, which would include international recognition of Russia’s claim to Crimea and four Ukrainian provinces and an agreement that foreign troops not be deployed in Ukraine.
Ukraine’s President Volodymyr Zelenskyy said Mr Putin’s remarks were “very predictable” and “very manipulative”, adding that the Russian president was preparing to reject the ceasefire proposal he agreed with the US.
The chancellor has insisted that “we do need to get a grip” on the welfare budget, saying the “current system is not working for anyone”.
Rachel Reeves said the “bill for welfare is going up by billions of pounds in the next few years”, and argued the system should “get people into work so that more people can fulfil their potential”.
Her comments come ahead of an expected announcement next week of “radical” reforms to the welfare system, with many fearing drastic cuts to support for the most vulnerable.
Asked by broadcasters on Friday about those fears, the chancellor said: “Well, we’ll set out our plans for welfare reform. But it is absolutely clear that the current system is not working for anyone.
“It is not working for people who need support, it’s not working to get people into work so that more people can fulfil their potential, and it’s not working for the taxpayer when the bill for welfare is going up by billions of pounds in the next few years.
“So we do need to get a grip. We need to spend more on national defence, we need to reform our public services, and we need to reform our broken welfare system.”
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3:05
Welfare system ‘letting people down’
Ms Reeves’s comments come after the work and pensions secretary said the current system has locked “millions” out of work and called it “dysfunctional” as the system places a person in binary categories of either “fit for work” or “not fit for work”.
The government has promised to either reform or replace the Work Capability Assessment – which determines if a person is fit for work or not – as they say it currently drives people who want to work “to a life on benefits”.
Ministers have been priming MPs and the public for cuts to a ballooning welfare bill since the start of the year, with details expected next week ahead of an announcement in the chancellor’s spring statement on 26 March.
Image: Rachel Reeves during a visit Babcock in Rosyth. Pic: PA
The expected welfare cuts
Ms Reeves is expected to announce several billion pounds of spending cuts after losing her £9.9bn headroom since the October budget, with the welfare budget a key target for cuts.
Fiscal headroom is the amount by which government can increase spending or cut taxes without breaking its own fiscal rules.
The welfare cuts are expected to include £5bn in savings by making it harder to qualify for Personal Independent Payments (PIP), which help people with the additional costs of their disability.
PIP payments next year are also expected to be frozen and the basic rate for Universal Credit paid to those searching for work, or in work, is expected to be increased while the rate for those judged as unfit for work will be cut.
The department for work and pensions said new figures show 1.8 million people are now considered too sick to look for work due to a “broken work capability assessment” so are on Universal Credit but getting no support to find work.
It said the number has almost quadrupled since the start of the pandemic when 360,000 were considered too sick to look for work.
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0:52
‘Government’s plan to cut welfare is terrifying’
Labour MPs concerned about cuts
A growing number of Labour MPs are publicly raising concerns and, in an unusual move, all 404 Labour MPs were asked to attend “welfare roundtables” in Downing Street with the Number 10 policy unit on Wednesday and Thursday.
On Wednesday, Sir Keir Starmer faced down Labour MPs unhappy over the rumoured welfare cuts – especially for disabled people.
Richard Burgon pleaded with him to make the “moral” choice, telling the Commons disabled people are “frightened” as he urged the PM to introduce a wealth tax instead of “making the poor and vulnerable pay”.
Sir Keir pledged to “protect those who need protecting”, but later added there is no “bottomless pit”.
He said the Tories “left a broken welfare system, which locks millions out of work, that is indefensible in my view, economically and morally”.
Image: Sir Keir Starmer was asked about the welfare cuts at PMQs
Another Labour MP, John Slinger, urged the PM to reassure the Commons he will “provide compassion to those who can’t work”.
Labour MP Nadia Whittome told the BBC the government should impose a wealth tax instead of “placing that burden on disabled people who have already borne the brunt of 14 years of austerity”.
She added that she “can’t look her mum in the eye and support this”.