The US is “our closest ally” but “nothing is off the table” in response to Donald Trump’s 10% tariffs on imports from the UK, the business secretary has said.
In a statement following the US president’s nearly hour-long address to the world, Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers.
“That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.”
Mr Reynolds reiterated the statements from the prime minister and his cabinet over the past few days, saying the US is “our closest ally”, and the government’s approach is to “remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today”.
Image: Business Secretary Jonathan Reynolds says “nothing is off the table” following the tariffs announcement. Pic: PA
But he continued: “We have a range of tools at our disposal, and we will not hesitate to act. We will continue to engage with UK businesses, including on their assessment of the impact of any further steps we take.
“Nobody wants a trade war, and our intention remains to secure a deal. But nothing is off the table, and the government will do everything necessary to defend the UK’s national interest.”
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‘Get back round the negotiating table’, say Tories
The Conservative Party’s shadow business and trade secretary described the US president’s announcement as “disappointing news which will worry working families across the country”.
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6:39
Sky’s Ed Conway examines how economies across the world are impacted by tariffs
Andrew Griffith hit out at the government for having “failed to negotiate with President Trump’s team for too many months after the election, failed to keep our experienced top trade negotiator, and failed to get a deal to avoid the imposition of these tariffs by our closest trading partner”.
“The chancellor’s emergency budget of just a week ago with its inadequate headroom is now at risk, casting uncertainty about more taxes or spending cuts,” he continued. “Sadly, it is British businesses and workers who will pay the price for Labour’s failure.”
He called on ministers to “swallow their pride” and “get back round the negotiating table to agree a fair deal to protect jobs and consumers in both the UK and the US alike”.
Relief in Westminster – but concessions to Trump to come
It has been quite a rollercoaster for the government, where they went from the hope that they could avoid tariffs, that they could get that economic deal, to the realisation that was not going to happen, and then the anticipation of how hard would the UK be hit.
In Westminster tonight, there is actual relief because the UK is going to have a 10% baseline tariff – but that is the least onerous of all the tariffs we saw President Trump announce.
He held up a chart of the worst offenders, and the UK was well at the bottom of that list.
No 10 sources were telling me as President Trump was in the Rose Garden that while no tariffs are good, and it’s not what they want, the fact the UK has tariffs that are lower than others vindicates their approach.
They say it’s important because the difference between a 20% tariff and a 10% tariff is thousands of jobs.
Where to next? No 10 says it will “keep negotiating, keep cool and calm”, and reiterated Sir Keir Starmer’s desire to “negotiate a sustainable trade deal”.
“Of course want to get tariffs lowered. Tomorrow we will continue with that work,” a source added.
Another source said the 10% tariff shows that “the UK is in the friendlies club, as much as that is worth anything”.
Overnight, people will be number-crunching, trying to work out what it means for the UK. There is a 25% tariff on cars which could hit billions in UK exports, in addition to the blanket 10% tariff.
But despite this being lower than many other countries, GDP will take a hit, with forecasts being downgraded probably as we speak.
I think the government’s approach will be to not retaliate and try to speed up that economic deal in the hope that they can lower the tariffs even further.
There will be concessions. For example, the UK could lower the Digital Services Tax, which is imposed on the UK profits of tech giants. Will they loosen regulation on social media companies or agricultural products?
But for now, there is relief the UK has not been hit as hard as many others.
Liberal Democrat leader Sir Ed Davey has reacted furiously to Mr Trump’s announcement of a “destructive trade war”, and called on the government to stand up against “Trump’s attempts to divide and rule”.
“The prime minister should bring our Commonwealth and European partners together in a coalition of the willing against Trump’s tariffs, using retaliatory tariffs where necessary and signing new trade deals with each other where possible.”
Speaking on Wednesday evening at a White House event entitled ‘Make America Wealthy Again’, the US president unleashed sweeping tariffs across the globe.
Mr Trump held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.
The UK’s rate of 10% was perhaps a shot across the bow over the 20% VAT rate, though the president’s suggested a 10% tariff imbalance between the two nations. Nonetheless, tariffs of 10% could directly reduce UK GDP by between 0.01% and 0.06%, according to Capital Economics.
A 25% duty on all car imports from around the world is also being imposed from midnight in the US – 5am on Thursday, UK time.
The UK government had been hoping to negotiate an economic deal with the US in a bid to avoid the tariffs, but to no avail. The government says negotiations will continue.
The Confederation of British Industry said “negotiating stronger trading relationships with all like-minded partners will be foundational to any success”.
The business secretary is expected to make a statement in the House of Commons on Thursday, and we are also expecting to hear from the prime minister.
A groundbreaking new cancer treatment, hailed by patients as “game-changing”, will be available via the NHS from today.
The drug capivasertib has been shown in trials to slow the spread of the most common form of incurable breast cancer.
Taken in conjunction with an already-available hormonal therapy, it has been shown in trials to double how long treatment will keep the cancer cells from progressing.
“I don’t look at myself anymore as a dying person,” says Elen Hughes, who has been using the drug since February this year.
“I look at myself as a thriving person, who will carry on thriving for as long as I possibly can.”
Image: Elen Hughes says capivasertib has extended her life and improved its quality
Mrs Hughes, from North Wales, was first diagnosed with primary breast cancer in 2008.
Eight years later, then aged 46 and with three young children, she was told the cancer had returned and spread.
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She says that capivasertib, which she has been able to access via private healthcare, has not only extended her life but improved its quality with fewer side effects than previous medications.
It also delays the need for more aggressive blanket treatments like chemotherapy.
Image: Capivasertib is now available from the NHS
“What people don’t understand is that they might look at the statistics and see that [the therapy] is effective for eight months versus two months, or whatever,” says Mrs Hughes.
“But in cancer, and the land that we live in, really we can do a lot in six months.”
Mrs Hughes says her cancer therapy has allowed her “to see my daughter get married” and believes it is “absolutely brilliant” that the new drug will be available to more patients via the NHS.
The National Institute for Health and Care Excellence approved capivasertib for NHS-use after two decades of research by UK teams.
Professor Nicholas Turner, from the Institute of Cancer Research which led the study, told Sky News it was a “great success story for British science”.
Image: Professor Nicholas Turner wants urgent genetic testing of patients with advanced breast cancers to see if they could benefit
The new drug is suitable for patients’ tumours with mutations or alterations in the PIK3CA, AKT1 or PTEN genes, which are found in approximately half of patients with advanced breast cancer.
With £99 a month to live off Aida has turned to a food bank.
“It’s very difficult. Extremely difficult. But I have to live,” says Aida Mascarenhas. The 75-year-old tells us £99 is all she has left after paying her bills. Aida’s accommodation is provided by the local authority.
“Ninety-nine pounds in a month – even for bedding, pillows or something. So many things for a house.”
At the food bank, Aida is called forward to collect handouts to get her through the week.
Image: Aida Mascarenhas uses food banks, saying she has just £99 left every month after bills
Image: Organisers are able to offer the basics like potatoes, pasta and spices
It’s three years since we last visited this food bank at the Marks Gate Community Hub in Romford, Essex, when the cost of living crisis was being described as the worst in a generation.
After three grinding years of making ends meet, the food bank organiser – and her clients – tell us things aren’t improving. In fact, they feel things have got even worse.
“Overall the cost of living crisis has gone up considerably since three years ago. It’s worse,” says Asma Haq, founder of the Marks Gate Relief Project.
“For charities like us it was a storm anyway and now it’s a hurricane. We are busy non-stop.”
Image: Asma Haq, founder of the Marks Gate Relief Project, thinks the cost of living crisis has worsened ‘considerably’
Asma is running around calling people forward – offering them basics like potatoes, pasta and spices.
She tells us some always come early, anxious the supplies will run out.
Next in line at the food bank is a woman dragging a large suitcase – pulling the zip back to shove in a large bottle of cooking oil and anything else the food bank will give her.
Image: This woman at the food bank is looking for basic groceries to keep her going
Asma describes almost all the people who come to the hub as non-white British, first-generation migrants.
She says most have broken or no English with little to no computer skills and want help to access a changing benefits system.
“It’s also about so many other barriers they face. A lot aren’t tech-savvy. They used to get a lot of council tax support which has been reduced considerably.
We’ve had people literally put their phones in our faces and say ‘do it for us’.”
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The threads of why people say they’re struggling weave through all communities. Across the road from the community centre we talk to people who again and again tell us they feel the cost of living has been forgotten about.
One woman tells us: “I don’t know how people are going to live. They keep putting it up and up and up. It’s everything. You’re worrying about the gas bill, the electric bill, the council bill.
“And I know people that’s desperate and they cannot pay their bills and they’re worried about ending up in court.”
Image: The cost of living crisis is being felt by this woman in Romford: ‘You’re worrying about the gas bill, the electric bill, the council bill’
Continuing to retrace our steps from three years ago, we head back to Barking in east London and revisit a launderette where we meet a familiar face – Myriam Sinon who has worked in the business for the last 10 years.
I ask her if she imagined we would be standing here three years after we last met and things wouldn’t have improved.
“I didn’t expect that it would be worse,” she says.
Image: Despite rising energy prices, this launderette in Barking has chosen not to increase prices
Image: Myriam Sinon, who works at the launderette, says customers are finding ways to share the cost of cleaning clothes
Myriam says electricity prices have quadrupled in the past three years – but the launderette has not increased prices, fearing it would drive customers away.
Everyone needs to wash things and she says people are finding ways to share the cost – gathering up washing from people they know to create a maximum load for the machines.
People are hoping to see an end in sight. But Myriam has a stark prediction if things don’t improve.
“There will be crime every time,” she says. “When people don’t get enough money they start stealing. They might kill you for a watch or phone.”
The government will fund any further local inquiries into the grooming gangs scandal that are deemed necessary, Sir Keir Starmer has said.
However, the prime minister said it is his “strong belief” that the focus must be on implementing recommendations from the Alexis Jay national review before more investigations go ahead.
It follows a row over whether Labour is still committed to the five local inquiries it promised in January, after safeguarding minister Jess Phillips failed to provide an update on them in a statement to parliament hours before it closed for recess on Tuesday.
Image: Sir Keir Starmer joins police officers on patrol in Cambridgeshire. Pic: PA
Instead, Ms Phillips told MPs that local authorities will be able to access a £5m fund to support locally-led work on grooming gangs.
On Thursday morning, Home Secretary Yvette Cooper insisted the “victim-centred, locally-led inquiries” will still go ahead, while a Home Office source told Sky News more could take place in addition to the five.
Speaking to Sky News’ Rob Powell later on Thursday, Sir Keir confirmed that there could be more inquiries than those five but said the government must also “get on and implement the recommendations we’ve already got”.
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The prime minister said: “Of course, if there’s further local inquiries that are needed then we will put some funding behind that, and they should happen.
“But I don’t think that simply saying we need more inquiries when we haven’t even acted on the ones that we’ve had is necessarily the only way forward.”
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0:41
Yvette Cooper speaks to Sky News
Ms Phillips’s earlier comments led to accusations that the government was diluting the importance of the local inquiries by giving councils choice over how to use the funds.
Sky News understands she was due to host a briefing with MPs this afternoon at 5pm – the second she had held in 24 hours – in an attempt to calm concern amongst her colleagues.
Review recommendations ‘sat on a shelf’
Sir Keir insisted he is not watering down his commitment for the five local enquiries, but said the Jay recommendations were “sitting on a shelf under the last government” and he is “equally committed” to them.
He added: “At the most important level, if there is evidence of grooming that is coming to light now, we need a criminal investigation. I want the police investigation because I want perpetrators in the dock and I want justice delivered.”
In October 2022, Professor Alexis Jay finished a seven-year national inquiry into the many ways children in England and Wales had been sexually abused, including grooming gangs.
Girls as young as 11were groomed and raped across a number of towns and cities in England over a decade ago.
Prof Jay made 20 recommendations which haven’t been implemented yet, with Sir Keir saying on Thursday he will bring 17 of them forward.
However, the Tories and Reform UK want the government to fund a new national inquiry specifically into grooming gangs, demands for which first started last year after interventions by tech billionaire Elon Musk on his social media platform X.
Image: Elon Musk has been critical of Labour’s response to grooming gangs and has called for a national inquiry. Pic: Reuters
‘Fuelling confusion’
Reform leader Nigel Farage said the statement made by Ms Phillips “was one of the most cowardly things I have ever seen” as he repeated calls for a fresh inquiry.
Robert Jenrick, the shadow justice secretary, also told Sky News that ministers were “fuelling confusion” and that the “mess.. could have been avoided if the government backed a full national inquiry – not this piecemeal alternative”.
Tory leader Kemi Badenoch said the government needed to look at “state failings” and she would try and force a fresh vote on holding another national inquiry, which MPs voted down in January.
‘Political mess’
As well as facing criticism from the Opposition, there are signs of a backlash within Labour over how the issue has been handled.
Labour MPs angry with government decision grooming gangs
With about an hour until the House of Commons rose for Easter recess, the government announced it was taking a more “flexible” approach to the local grooming gang inquiries.
Safeguarding minister Jess Philips argued this was based on experience from certain affected areas, and that the government is funding new police investigations to re-open historic cases.
Speaking on Times Radio, former chair of the Equality and Human Rights Commission Sir Trevor Phillips called the move “utterly shameful” and claimed it was a political decision.
One Labour MP told Sky News: “Some people are very angry. I despair. I don’t disagree with many of our decisions but we just play to Reform – someone somewhere needs sacking.”
The government has insisted party political misinformation was fanning the flames of frustration in Labour.
The government also said it was not watering down the inquiries and was actually increasing the action being taken.
But while many Labour MPs have one eye on Reform in the rearview mirror, any accusations of being soft on grooming gangs only provides political ammunition to their adversaries.
One Labour MP told Sky News the issue had turned into a “political mess” and that they were being called “grooming sympathisers”.
On the update from Ms Phillips on Tuesday, they said it might have been the “right thing to do” but that it was “horrible politically”.
“We are all getting so much abuse. It’s just political naivety in the extreme.”
Ms Phillips later defended her decision, saying there was “far too much party political misinformation about the action that is being taken when everyone should be trying to support victims and survivors”.
“We are funding new police investigations to re-open historical cases, providing national support for locally led inquiries and action, and Louise Casey… is currently reviewing the nature, scale and ethnicity of grooming gangs offending across the country,” she said.
“We will not hesitate to go further, unlike the previous government, who showed no interest in this issue over 14 years and did nothing to progress the recommendations from the seven-year national inquiry when they had the chance.
“We will leave no stone unturned in pursuit of justice for victims and will be unrelenting in our crackdown on sick predators and perpetrators who prey on vulnerable children.”