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Since taking office nine months ago Sir Keir Starmer has weathered party rows about winter fuel payments, the two child benefit cap, WASPI women, airport expansion and cuts to international aid.

All of these decisions have been justified in the name of balancing the books – filling that notorious £22bn black hole, sticking to the fiscal rules, and in the pursuit of growth as the government’s number one priority.

But welfare reform feels like a far more existential row.

Health Secretary Wes Streeting argued on Sunday Morning With Trevor Phillips that the current system is “unsustainable”.

Ministers have been making the point for weeks that the health benefits bill for working-age people has ballooned by £20bn since the pandemic and is set to grow by another £18bn over the next five years, to £70bn.

But the detail of where those cuts could fall is proving highly divisive.

One proposal reportedly under consideration has been to freeze personal independence payments (PIPs) next year, rather than uprating them in line with inflation.

Charities have warned this would be a catastrophic real-terms cut to 3.6 million people.

Concerned left-wing backbenchers are calling on the government to tax the rich, not take from the most vulnerable.

The Sunday Times and Observer have now reported that Work and Pensions Secretary Liz Kendall has dropped the idea in response to the backlash.

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Streeting defends PM’s comments on ‘flabby’ public sector

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Streeting denies Labour ‘changing into Tories’
Planned PIP freeze set to be scrapped – reports
What cuts could be announced?

Wes Streeting denied reports of a cabinet row over the plan, insisting the final package of measures hasn’t yet been published and he and his cabinet colleagues haven’t seen it.

Not the final version perhaps – but given all backbench Labour MPs who were summoned to meetings with the Number 10 policy teams for briefings this week, that response is perhaps more than a little disingenuous.

In his interview with Sir Trevor Phillips, he went on to make the broader case for PIP reform – highlighting the thousand people who sign up to the benefit every day and arguing that the system needs to be “sustainable”, to “deliver for those that need it most” and “provide the right kind of support for the different types of need that exist”.

To me this signals the government are preparing to unveil a tighter set of PIP eligibility criteria, with a refocus on supporting those with the greatest needs.

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Liz Bates: Will there be a backlash over benefits?

Changes to incapacity benefit to better incentivise working – for those who can – are also clearly on the cards.

The health secretary has been hitting out at the “overdiagnosis” of mental health conditions, arguing that “going out to work is better for your mental and physical health, than being spent and being stuck at home”, and promising benefit reforms that will help support people back to work rather than “trapped in the benefits system”.

Turning Tory?

Starmer said this week the current welfare system couldn’t be defended on economic or moral grounds.

The Conservatives don’t disagree.

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Conservatives: Scrapping NHS England is ‘right thing’

Before the election, they proposed £12bn in cuts to the welfare bill, with a focus on getting people on long-term sickness back to work.

This morning, shadow education secretary Laura Trott claimed Labour denied that welfare cuts were needed during the election campaign and had wasted time in failing to include benefits reform in the King’s Speech.

“They’re coming to this chaotically, too late and without a plan,” she said.

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Notwithstanding the obvious critique that the Tories had 14 years to get a grip on the situation – what’s most striking here is that, yet again, the Labour government seems to be borrowing Conservative clothes.

When challenged by Sir Trevor this morning, Streeting denied they were turning Tory – claiming the case for welfare reform and supporting people into work is a Labour argument.

But, from increasing defence spending and cutting the aid budget to scrapping NHS England, there’s a definite pattern emerging.

If you didn’t know a Labour administration was in charge, you might have assumed these were the policies of a Conservative government.

It’s a strategy which makes many of his own backbenchers deeply uncomfortable.

But it’s doing a good job of neutering the Tory opposition.

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UK won’t give more visas to Indian workers, says PM

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UK won't give more visas to Indian workers, says PM

Sir Keir Starmer has said the government will not relax visa rules for India, as he embarks upon a two-day trade trip to Mumbai.

The prime minister touched down this morning with dozens of Britain’s most prominent business people, including bosses from BA, Barclays, Standard Chartered, BT and Rolls-Royce.

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The first full-blown trade mission to India since Theresa May was prime minister, it’s designed to boost ties between the two countries.

Sir Keir – whose face has been plastered over posters and billboards across Mumbai – will meet Indian Prime Minister Narendra Modi on Thursday, five months after the UK signed the first trade deal with India since Brexit.

The agreement has yet to be implemented, with controversial plans to waive national insurance for workers employed by big Indian businesses sent to the UK still the subject of a forthcoming consultation.

Sir Keir Starmer with his business delegation. Pic: PA
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Sir Keir Starmer with his business delegation. Pic: PA

However, the business delegation is likely to use the trip to lobby the prime minister not to put more taxes on them in the November budget.

Sir Keir has already turned down the wish of some CEOs on the trip to increase the number of visas.

Speaking to journalists on the plane on the way out, he said: “The visa situation hasn’t changed with the free trade agreement, and therefore we didn’t open up more visas.”

He told business that it wasn’t right to focus on visas, telling them: “The issue is not about visas.

“It’s about business-to-business engagement and investment and jobs and prosperity coming into the UK.”

Narendra Modi and Keir Starmer during a press conference in July. Pic: PA
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Narendra Modi and Keir Starmer during a press conference in July. Pic: PA

No birthday wishes for Putin

The prime minister sidestepped questions about Mr Modi’s support of Russian leader Vladimir Putin, whom he wished a happy birthday on social media. US President Donald Trump has increased tariffs against India, alleging that Indian purchases of Russian oil are supporting the war in Ukraine.

Asked about Mr Modi wishing Mr Putin happy birthday, and whether he had leverage to talk to Mr Modi about his relationship with Russia, Sir Keir sidestepped the question.

“Just for the record, I haven’t… sent birthday congratulations to Putin, nor am I going to do so,” he said.

“I don’t suppose that comes as a surprise. In relation to energy, and clamping down on Russian energy, our focus as the UK, and we’ve been leading on this, is on the shadow fleet, because we think that’s the most effective way.

“We’ve been one of the lead countries in relation to the shadow fleet, working with other countries.”

PM: We aren’t forcing wealthy people out

Sir Keir refused to give business leaders any comfort about the budget and tax hikes, despite saying in his conference speech that he recognised the last budget had an impact.

“What I acknowledged in my conference, and I’ve acknowledged a number of times now, is we asked a lot of business in the last budget. It’s important that I acknowledge that, and I also said that that had helped us with growth and stabilising the economy,” he added. “I’m not going to make any comment about the forthcoming budget, as you would expect; no prime minister or chancellor ever does.”

Asked if too many wealthy people were leaving London, he said: “No. We keep a careful eye on the figures, as you would expect.

“The measures that we took at the last budget are bringing a considerable amount of revenue into the government which is being used to fix things like the NHS. We keep a careful eye on the figures.”

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Spying trial collapsed after government refused to brand China a threat, says top prosecutor

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Spying trial collapsed after government refused to brand China a threat, says top prosecutor

A Chinese spying trial collapsed last month after the UK government would not label Beijing a national security threat, a top prosecutor has said.

Christopher Berry, 33, and former parliamentary researcher Christopher Cash, 30, were accused of espionage for China.

But the Crown Prosecution Service (CPS) announced on 15 September that the charges would be dropped, sparking criticism from Downing Street and MPs.

Berry, of Witney, Oxfordshire, and Cash, from Whitechapel, east London, had denied accusations of providing information prejudicial to the interests of the state in breach of the Official Secrets Act between December 2021 and February 2023.

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Director of public prosecutions Stephen Parkinson. Pic: PA
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Director of public prosecutions Stephen Parkinson. Pic: PA

Stephen Parkinson, the director of public prosecutions (DPP), told MPs in a letter on Tuesday that the CPS had tried “over many months” to get the evidence it needed to carry out the prosecution, but it had not been forthcoming from the Labour government.

However, Sir Keir Starmer insisted the decision to brand China a threat would have to have been taken under the last Conservative administration.

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The prime minister said: “You can’t prosecute someone two years later in relation to a designation that wasn’t in place at the time.”

It is understood that the decision to end the case came after a meeting of senior officials which, according to The Sunday Times, included Jonathan Powell, the national security adviser, and Sir Oliver Robins, the Foreign Office’s top diplomat.

To prove the case under the Official Secrets Act of 1911, prosecutors would have to show the defendants were acting for an “enemy”.

Both the current Labour government and the previous Conservative governments have not labelled China a risk to national security.

In his letter to the chairs of the Commons home and justice select committees, Mr Parkinson said: “It was considered that further evidence should be obtained.

“Efforts to obtain that evidence were made over many months, but notwithstanding the fact that further witness statements were provided, none of these stated that at the time of the offence China represented a threat to national security, and by late August 2025 it was realised that this evidence would not be forthcoming.

“When this became apparent, the case could not proceed.”

He also pointed out that in a separate case about Russian spying last year, a judge ruled that an “enemy” under the 1911 Act must be a country that represents a threat to national security of the UK “at the time of the offence”.

The prime minister answered reporters' questions about the collapse of the case while on a flight to Mumbai. Pic: PA
Image:
The prime minister answered reporters’ questions about the collapse of the case while on a flight to Mumbai. Pic: PA

How has the government responded?

Sir Keir has addressed the contents of the letter, which he said he had “read at speed”, while on board a flight to Mumbai, as part of the UK’s largest ever trade mission to India.

The PM said: “What matters is what the designation [of China] was in 2023, because that’s when the offence was committed and that’s when the relevant period was.

“Statements were drawn up at the time according to the then government policy, and they haven’t been changed in relation to it, that was the position then.

“I might just add, nor could the position change, because it was the designation at the time that matters.”

Sir Keir, a former director of public prosecutions, added that he wasn’t “saying that defensively”, but because “as a prosecutor, I know that… it is what the situation at the time that matters”.

He also declined to criticise the CPS or the DPP, as he said “it’s wise not to”.

Since the alleged spying offences took place, the new National Security Act has superseded elements of the 1911 Act.

But Conservatives, including shadow home secretary Chris Philp, insist that Sir Keir has “very serious questions to personally answer”.

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Major US labor union says Senate crypto bill lacks ‘meaningful safeguards’

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Major US labor union says Senate crypto bill lacks ‘meaningful safeguards’

Major US labor union says Senate crypto bill lacks ‘meaningful safeguards’

The AFL-CIO says the Senate’s crypto framework bill “provides the facade of regulation” that would expose workers’ retirement funds to risky assets.

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