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Britain will not lower its standards or water down regulation in exchange for a trade deal with the US, the chancellor has confirmed.

Rachel Reeves was speaking ahead of a pivotal meeting with her American counterpart in Washington DC.

In an interview with Sky News, Ms Reeves said she was “confident” that a deal would be reached but said she had red lines on food and car standards, adding that changes to online safety were “non-negotiable for the British government”.

The comments mark the firmest commitment to a slew of rules and regulations that have long been a gripe for the Americans.

Rachel Reeves
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Rachel Reeves spoke to Sky’s Gurpreet Narwan

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The US administration is pushing for the UK to relax rules on agricultural exports, including hormone-treated beef.

While Britain could lower tariffs on some agricultural products that meet regulations, ministers have been clear that it will not lower its standards.

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However, the government has been less firm with its stance on online safety.

A tech red line

The US tech industry has fiercely opposed Britain’s Online Safety Act, which was introduced in 2023 and requires tech companies to shield children from harmful content online.

In an earlier draft UK-US trade deal, the British government was considering a review of the bill in the hope of swerving US tariffs.

However, the chancellor suggested that this was no longer on the table.

“On food standards, we’ve always been really clear that we’re not going to be watering down standards in the UK and similarly, we’ve just passed the Online Safety Act and the safety, particularly of our children, is non-negotiable for the British government,” she said.

She added that Britain was “not going to water down areas of road safety”, a move that could pave the way for American SUVs that have been engineered to protect passengers but not pedestrians.

While non-tariff barriers will remain intact, it was reported on Tuesday night that the UK could lower its automotive tariff from 10% to 2.5%.

The calculations behind Reeves’s red lines


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Gurpreet Narwan

Business and economics correspondent

@gurpreetnarwan

What can Britain offer the Americans if it’s not prepared to lower its standards?

Donald Trump has previously described non-tariff barriers that block US exporters as “cheating”.

Britain does have some scope to bring down tariff rates – and Rachel Reeves suggested that this was her focus – but ours is already a highly open economy, we don’t have huge scope to cut tariff rates.

The real prize for the Americans is in the realm of these non-tariff barriers.

There has been much speculation about what the UK could offer up, but the chancellor on Wednesday gave a comprehensive commitment that she would not dilute standards.

There are many who will breathe a collective sigh of relief – from UK farmers to road safety campaigners and parents of young children.

While the government is sensitive to any potential public backlash, it also has another factor to think about.

When Ms Reeves arrives back home, she will begin preparations for a UK-EU summit in London next month.

The UK’s food and road safety standards are, in many areas, in sync with Europe, and Britain is seeking even deeper integration.

Lowering standards for the Americans would make that deeper alignment with the Europeans impossible.

The chancellor has to decide which market is more valuable to Britain.

The answer is Europe.

Back at home, the chancellor suggested that she was still open to relaxing rules on the City of London, even though global financial markets have endured a period of turmoil, triggered by President Trump’s trade war.

Reforms at home?

In her Mansion House speech last November, the chancellor said post-2008 reforms had “gone too far” and set the course for deregulating the City.

Asked if that was a wise move in light of the recent sharp swings in the financial markets, Ms Reeves said: “I want regulators to regulate not just for risk but also for growth.

“We are making reforms and we have set out new remit letters to our financial services regulators.”

Britain’s borrowing costs hit their highest level in almost 30 years after Mr Trump’s Liberation Day tariffs announcements, a stark reminder that policy decisions in the US have the power to raise UK bond yields and in turn, affect the chancellor’s budget, dent her already small fiscal headroom and derail her plans for tax and spend.

However, the chancellor said she would not consider adapting her fiscal rules, which include a promise to cover day-to-day spending with tax receipts, even if it gives her more room to manoeuvre in the face of volatility.

“Fiscal rules are non-negotiable for a simple reason, that Britain must offer under this government fiscal and financial stability, which is so important in a world of global uncertainty,” she said.

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Changes needed to fix ‘broken system’, as illegal migration ‘creating division across our country’, says home secretary

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Changes needed to fix 'broken system', as illegal migration 'creating division across our country', says home secretary

Home Secretary Shabana Mahmood has denied that her plans to clamp down on illegal immigration are “racist” – instead describing them as a “moral mission”.

Shabana Mahmood said illegal immigration was causing “huge divides” in the UK, and added: “I do believe we need to act if we are to retain public consent for having an asylum system at all.”

Politics latest: Mahmood dismisses ‘tittle-tattle’ over leadership rumours

Speaking on Sunday Morning with Trevor Phillips, Ms Mahmood said the government would set out changes to the asylum system in a bid to reduce the “pull factor” for those arriving in the UK via small boat.

The home secretary has been looking to Denmark for inspiration, where there are tighter rules on family reunions and restrictions on how long refugees can stay.

Measures that are expected to be announced on Monday include changing the rules so that people who are granted asylum in the UK will only be allowed to stay temporarily, and will have their refugee status subject to regular review.

The statutory legal duty to provide asylum seeker support, including housing and weekly allowances, is expected to be revoked.

More on Migrant Crisis

Ms Mahmood said such changes were needed to fix the “broken” asylum system.

‘Moral mission’

But asked how she would respond to those who believe the government has been “panicked into a racist immigration policy”, Ms Mahmood said: “I reject that entirely.”

“I am the child of immigrants,” she said. “My parents came to this country legally, in the late 60s and early 70s. This is a moral mission for me.”

Ms Mahmood said she had observed how illegal migration had been “creating division across our country”.

“I can see that it is polarising communities across the country. I can see that it is dividing people and making them estranged from one another. I don’t want to stand back and watch that happen in my country.”

What measures is the home secretary set to announce?

  • Refugee status will become temporary and subject to regular review – with people facing removal as soon as their home countries are deemed safe
  • New safe and legal routes to be introduced for those genuinely fleeing war and persecution
  • Changes to the legal framework that will require judges to prioritise public safety over migrants’ rights to a family life – amid fears that Article 8 of the European Convention on Human Rights has been used to frustrate removals
  • Using facial age estimation technology, a form of AI ,to rapidly assess a person’s age in a bid to deter people who pretend to be children in an attempt to claim asylum
  • Capped work and study routes for refugees will also be created  

Under current UK rules, people who are granted refugee status have it for five years and can then apply for indefinite leave to remain and get on a route to citizenship.

The government has already announced it will change the rules around indefinite leave to remain with a new set of requirements, including how much someone contributes to the UK and higher English language requirements.

The move to impose tighter restrictions have been interpreted as a way for Labour to counter the threat posed by Nigel Farage and Reform UK, which has laid out plans to deport people who already have ILR – which gives people the right to settle, work and study in the UK and even claim benefits, even if they do not then apply to be British citizens.

Ms Mahmood said that highlighting issues in the system did not amount to making “right-wing talking points or fake news” and that the government had a “genuine problem to fix”.

Although Ms Mahmood is seeking to emulate aspects of the Danish asylum system, she is not copying it in full.

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Inside Europe’s people-smuggling industry

In Denmark, asylum seekers’ access to public housing is restricted in certain areas where there are more than 30% of ethnic minorities, low levels of education and low incomes.

The home secretary said she was not going to “dictate where people live based on percentages”.

Asked if this was one of the measures the UK government may adopt, the home secretary said: “That’s not the sort of country that we are.”

Alongside bringing in measures to mimic Denmark, Ms Mahmood said she would also announce plans to reform the European Convention on Human Rights (ECHR) – aspects of which she said had been used to “frustrate the removal” of those with no right to be in the UK.

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Here’s how the Danish migration model works

Chris Philp, the shadow home secretary, said Labour’s plans to reduce immigration were merely a “series of gimmicks” while Zia Yusuf, Reform’s head of policy, claimed Ms Mahmood would be blocked from bringing in her plans by her own MPs.

Meanwhile, the SNP have branded the government’s reforms to asylum policy “outrageous”, and have accused Labour of “dancing to Nigel Farage’s tune on immigration”.

The party’s concerns were echoed by the Greens, whose deputy leader Mothin Ali said the furore over the number of people arriving in the UK on small boats was a “very manufactured problem”.

He told Sky News: “To me, it feels like a very manufactured problem. It’s a problem that’s been created to create outrage.”

Max Wilkinson, the Liberal Democrats’ home affairs spokesperson, told Sky News it was “right” that the government was aiming to tackle illegal migration, but said some of the language used had been a “bit uncomfortable”.

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Labour MPs fear wipe out at next local election – as chancellor’s career is ‘toast’

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Labour MPs fear wipe out at next local election - as chancellor's career is 'toast'

Many Labour MPs have been left shellshocked after the chaotic political self-sabotage of the past week.

Bafflement, anger, disappointment, and sheer frustration are all on relatively open display at the circular firing squad which seems to have surrounded the prime minister.

The botched effort to flush out backroom plotters and force Wes Streeting to declare his loyalty ahead of the budget has instead led even previously loyal Starmerites to predict the PM could be forced out of office before the local elections in May.

“We have so many councillors coming up for election across the country,” one says, “and at the moment it looks like they’re going to be wiped out. That’s our base – we just can’t afford to lose them. I like Keir [Starmer] but there’s only a limited window left to turn things around. There’s a real question of urgency.”

Another criticised a “boys club” at No 10 who they claimed have “undermined” the prime minister and “forgotten they’re meant to be serving the British people.”

There’s clearly widespread muttering about what to do next – and even a degree of enviousness at the lack of a regicidal 1922 committee mechanism, as enjoyed by the Tories.

“Leadership speculation is destabilising,” one said. “But there’s really no obvious strategy. Andy Burnham isn’t even an MP. You’d need a stalking horse candidate and we don’t have one. There’s no 1922. It’s very messy.”

More on Labour

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Starmer’s faithfuls are ‘losing faith’

Others are gunning for the chancellor after months of careful pitch-rolling for manifesto-breaching tax rises in the budget were ripped up overnight.

“Her career is toast,” one told me. “Rachel has just lost all credibility. She screwed up on the manifesto. She screwed up on the last two fiscal events, costing the party huge amounts of support and leaving the economy stagnating.

“Having now walked everyone up the mountain of tax rises and made us vote to support them on the opposition day debate two days ago, she’s now worried her job is at risk and has bottled it.

“Talk to any major business or investor and they are holding off investing in the UK until it is clear what the UK’s tax policy is going to be, putting us in a situation where the chancellor is going to have to go through this all over again in six months – which just means no real economic growth for another six months.”

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Why is the economy flatlining?

Read more:
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Former chancellor Osborne is shock contender to head HSBC

After less than 18 months in office, the government is stuck in a political morass largely of its own making.

Treasury sources have belatedly argued that the chancellor’s pre-budget change of heart on income tax is down to better-than-expected economic forecasts from the Office for Budget Responsibility.

That should be a cause of celebration. The question is whether she and the PM are now too damaged to make that case to the country – and rescue their benighted prospects.

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Man charged with murder of 17-year-old girl

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Man charged with murder of 17-year-old girl

A teenager has been charged with murder and attempted murder following the death of a 17-year-old girl, police have said.

Armed police were called to Cefn Fforest in Blackwood, Wales, at around 7.15am on Thursday after being told two people were seriously injured.

Lainie Williams was pronounced dead at the scene, while a second, a 38-year-old woman, who also sustained injuries, has been discharged from hospital.

Gwent Police said 18-year-old Cameron Cheng, a British national from Newbridge, Caerphilly, has also been charged with possession of a bladed article in a public place.

He is remanded to appear before Newport Magistrates’ Court on 17 November.

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Assistant Chief Constable Vicki Townsend said: “We understand that there has been a great deal of interest in this investigation.

More on Wales

“It is vital that people consider how their language, especially comments made online, could affect our ability to bring anyone found to have committed a criminal offence to justice.

“Even though we’ve reached this significant development in the investigation, our enquiries continue so it is likely that residents will continue to see officers in the area.

“So if anyone has any information, please speak to our officers or contact us in the usual way.”

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