Connect with us

Published

on

Chancellor Rachel Reeves has criticised post-financial crash regulation, saying it has “gone too far” – setting a course for cutting red tape in her first speech to Britain’s most important gathering of financiers and business leaders.

Increased rules on lenders that followed the 2008 crisis have had “unintended consequences”, Ms Reeves will say in her Mansion House address to industry and the City of London’s lord mayor.

“The UK has been regulating for risk, but not regulating for growth,” she will say.

It cannot be taken for granted that the UK will remain a global financial centre, she is expected to add.

Money blog: Britain’s most affordable town revealed

It’s anticipated Ms Reeves will on Thursday announce “growth-focused remits” for financial regulators and next year publish the first strategy for financial services growth and competitiveness.

Rachel Reeves
Image:
Rachel Reeves


Bank governor to point out ‘consequences’ of Brexit

Also at the Mansion House dinner the governor of the Bank of England Andrew Bailey will say the UK economy is bigger than we think because we’re not measuring it properly.

A new measure to be used by the Office for National Statistics (ONS) – which will include the value of data – will probably be “worth a per cent or two on GDP”. GDP is a key way of tracking economic growth and counts the value of everything produced.

Brexit has reduced the level of goods coming into the UK, Mr Bailey will also say, and the government must be alert to and welcome opportunities to rebuild relations.

Mr Bailey will caveat he takes no position on “Brexit per se” but does have to point out its consequences.

Please use Chrome browser for a more accessible video player

Bailey: Inflation expected to rise

In what appears to be a reference to the debate around UK immigration policy, Mr Bailey will also say the UK’s ageing population means there are fewer workers, which should be included in the discussion.

The greying labour force “makes the productivity and investment issue all the more important”.

“I will also say this: when we think about broad policy on labour supply, the economic arguments must feature in the debate,” he’s due to add.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

The exact numbers of people at work are unknown in part due to fewer people answering the phone when the ONS call.

Mr Bailey described this as “a substantial problem”.

He will say: “I do struggle to explain when my fellow [central bank] governors ask me why the British are particularly bad at this. The Bank, alongside other users, including the Treasury, continue to engage with the ONS on efforts to tackle these problems and improve the quality of UK labour market data.”

Continue Reading

Politics

Hard power is the world’s real currency once again – talking tough on defence won’t be enough

Published

on

By

Hard power is the world's real currency once again - talking tough on defence won't be enough

Remarkable – and relatively speaking a blessing – that the wake-up call for Britain to take defence seriously again did not come in the form of a military attack on UK soil, but instead was triggered by the verbal assault of Ukraine’s wartime leader by a sitting US president.

The lack of any physical destruction on British streets, though, should fool no one in government or wider society that the framework of security that has protected the country and its allies since the end of the Second World War is not at best cracked and at worst shattered.

Instead, check out one of the latest posts by Elon Musk, Donald Trump’s “disrupter-in-chief”.

He used his social media site X to say “I agree” with a call for the United States to leave NATO – a transatlantic alliance, and the bedrock of European security, that the new administration had until now continued to back at least in public.

It is yet another example of escalating hostility from the new Trump White House – which has sided with Russia against Ukraine, lashed out at its European partners over their values, and even suggested absorbing Canada as the 51st American state.

The alarming mood-change by a nation that is meant to be a friend surely demands an equally dramatic shift in approach by NATO’s 30 European allies and their Canadian partner.

Rather than stating the obvious – that American support can no longer be taken for granted – they should instead be actively adapting to a world in which it fundamentally no longer exists.

Please use Chrome browser for a more accessible video player

When Starmer met Zelenskyy: What happened?

Make no mistake, this would be a daunting and humbling prospect – perhaps too awful even to contemplate, in particular for the UK, which has tied itself militarily so closely to the US for pretty much everything from intelligence sharing and technology to nuclear weapons.

Britain is not alone. All European militaries, as well as Canada, to a greater or lesser extent rely heavily on their more powerful American partners.

Breaking that dependency would require a rapid expansion in military capabilities and capacity across the continent, as well as a huge effort to build up the defence industrial base required to produce weapons at scale and exploit emerging technologies.

Sir Keir Starmer – who is hosting a Ukraine summit of allies on Sunday – has rightly adopted the UK’s natural position of leadership in Europe in the wake of Donald Trump’s extraordinary hostility towards Volodymyr Zelenskyy. He gave the embattled Ukrainian president a warm embrace on Saturday when the two met at Downing Street.

Britain is one of Europe’s two nuclear-armed states, a powerful voice within NATO, and a permanent member of the United Nations Security Council.

Please use Chrome browser for a more accessible video player

All the times Zelenskyy thanked the US

But talking tough on defence and the need to support Ukraine as the US steps back is no longer enough in a world where hard power is the only real currency once again.

A pledge by the prime minister to increase defence spending to 2.5% of national income by 2027 and to 3% in the next parliament is of course a step in the right direction.

Yet unless it is accompanied by much greater speed and urgency coupled with a genuinely generational shift in the entire country’s approach to national security then it will go down in history as the headline-grabbing but otherwise empty gesture of a government that has forgotten what it means to be ready to fight wars.

Anneliese Dodds, who quit as international development secretary on Thursday over the prime minister’s plan to fund his increase in defence spending with a raid on the overseas aid budget, summed up the challenge well in her resignation letter.

She wrote that she supported the plan to lift the defence budget but said even 3% “may only be the start, and it will be impossible to raise the substantial resources needed just through tactical cuts to public spending”.

She added: “These are unprecedented times, when strategic decisions for the sake of our country’s security cannot be ducked.”

Read more:
Starmer asks leaders to unite ahead of Ukraine summit
Israel agrees to Gaza ceasefire extension

Please use Chrome browser for a more accessible video player

Ukrainians react to White House meeting

Ms Dodds is right.

It is no longer good enough to treat defence, deterrence and wider national resilience as a niche subject that is delivered by an increasingly small, professional military.

Rather, it should once again be at the heart of the thinking of all government departments – from the Treasury and business to health and education – led by the prime minister, his national security adviser and the cabinet secretary.

This is not something new. It was normal during the Cold War years when, after two world wars, the whole country was acutely aware of the need to maintain costly but credible armed forces and a population that was ready to play its part in a crisis.

Continue Reading

Politics

UK to defend Ukraine peace deal with ‘coalition of willing’, Starmer says

Published

on

By

UK to defend Ukraine peace deal with 'coalition of willing', Starmer says

Sir Keir Starmer has suggested a coalition of European allies could step up and defend a potential deal for Ukraine to “guarantee the peace”.

The prime minister indicated some EU nations could be prepared to increase defence spending to protect any peace deal that is agreed between Ukraine and Russia.

But speaking at summit of EU leaders in central London, Sir Keir acknowledged that no such coalition had yet been formed and that “not every nation will feel able to contribute”.

Instead, he said “those willing” – though he did not state which countries this included – would “intensify planning now with real urgency”.

In a sign this could mean troops from member states being sent to Ukraine, he added: “The UK is prepared to back this with boots on the ground and planes in the air, together with others. Europe must do the heavy lifting.”

Continue Reading

Politics

‘We can still trust the Americans’, minister says despite breakdown between Trump and Zelenskyy

Published

on

By

'We can still trust the Americans', minister says despite breakdown between Trump and Zelenskyy

The UK can still trust the US with Ukraine’s future despite the bad-tempered clash at the White House between Donald Trump and Volodymyr Zelenskyy, a minister has said.

Cabinet Office minister Nick Thomas-Symonds told Sky’s Sunday Morning with Trevor Phillips there was “no ambiguity” over whether the US continued to be an important ally for Britain despite the unpleasant scenes that unfolded in the Oval Office on Friday.

There are concerns among Western leaders that the exchange – which resulted in Mr Zelenskyy leaving empty-handed and without having signed an important minerals deal to continue US support – could result in the White House withdrawing aid for Ukraine’s war effort.

Politics latest: Starmer hosts Ukraine war and security summit

But Mr Thomas-Symonds, who is also minister for the constitution and European Union relations, said he believed we could “still trust the Americans”.

And he said that in the event the US did pull financial support for Ukraine, the UK would “continue to be an honest broker” and “bring the different parties together”.

Echoing the US’s president’s language, he added: “We will also continue to make the case that peace is made from a position of strength, not a position of weakness.

More on Keir Starmer

“So, it remains critical to put Ukraine in the strongest possible position.”

On whether Britain could still trust the Americans, Mr Thomas-Symonds replied: “Yes, I do believe we can trust the Americans.

“We do have an ally in the United States that we can trust,” he continued. “There’s no ambiguity about that.”

Sir Keir Starmer’s desire to act as bridge between the US and Europe will be tested as he hosts a number of EU leaders for a summit in London.

Present will be the leaders of Italy, France, Germany, the Netherlands, Poland, Spain, Finland, Denmark, Norway, the Czech Republic and Romania. Canada and Turkey will also attend.

The PM’s role as a peacemaker takes on greater significance following the breakdown in relations between Mr Trump and Mr Zelenskyy that unfolded in front of the world’s TV cameras.

In the aftermath of the fallout, Sir Keir phoned Mr Zelenskyy and invited him to Downing Street on Saturday ahead of today’s summit in a show of support for Ukraine.

Please use Chrome browser for a more accessible video player

Blow-by-blow: Inside Zelenskyy and Trump’s clash

He also phoned the US president, saying his “driving purpose” was to “bridge this and get us back to the central focus”.

Turning to the scenes at the Oval Office on Friday, Mr Thomas-Symonds admitted he had “never seen anything quite like that”.

“Obviously that is not how it should have happened.”

His sentiments were echoed by shadow foreign secretary Priti Patel, who said she was “absolutely aghast” at “the whole spectacle” which saw Mr Trump accuse the Ukrainian president of “disrespecting” the United States and “gambling with World War Three”.

Read more:
Hard power is the world’s real currency once again

Starmer’s position as Trump’s new best friend will be tested

In a sign of how badly the meeting went, the minerals deal the pair had expected to sign – which would have established a new fund for the US to invest in Ukraine’s minerals, rare earth materials and other valuable natural resources – was put on ice.

Mr Trump viewed the minerals transaction as a fair way to recover the billions of dollars that the US has given Kyiv in its war effort and as necessary to guarantee further US military support for Ukraine.

Ms Patel said the scenes at the White House were “unedifying and undignified”.

“When we look at President Zelenskyy…I think he’s a hero,” she went on.

“He’s an absolute hero in the way in which he stood up to authoritarianism. He’s fighting for the sovereignty of his country.

“He also know when the going gets tough. You keep your disagreements not in front of cameras, but you keep them private. So, you know, we are where we are.”

Continue Reading

Trending