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The UK and the EU have agreed a new trade deal – five years after Brexit kicked in.

Following six months of talks after Sir Keir Starmer promised a fresh deal when he became prime minister last July, the two sides have come to an agreement.

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Britain's Prime Minister Keir Starmer poses with European Commission President Ursula von der Leyen and European Council President Antonio Costa as they arrive to attend the UK-EU Summit at Lancaster House in London on May 19, 2025. HENRY NICHOLLS/Pool via REUTERS
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The two sides agreed the deal ahead of a UK-EU summit in London. Pic: Reuters

Here are the details:

eGates

British passport holders will be able to use more eGates in Europe to avoid the long border control queues that have become the norm since Brexit in many EU countries.

Pet travel

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Pet passports will be brought back so cats and dogs coming from the UK will no longer need pricey animal health certificates for every trip. After Brexit, pet owners had to get a certificate from a vet in the UK then a vet in the EU before returning.

Pic: iStock
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Pets will now be allowed to travel on a pet passport instead of having to have a health certificate every time they travel. Pic: iStock

Red tape on food and drink sales

A new sanitary and phytosanitary (SPS) deal has been agreed to reduce red tape currently needed to import and export food and drink between the UK and the EU.

There is no time limit to this part of the deal, which the government says will reduce the burden on businesses and reduce lorry queues at the border.

The “vast majority” of routine checks and certificates for animal and plant products will be removed completely, including between Great Britain and Northern Ireland.

The government says this could lower food prices and increase choice on supermarket shelves.

Some British foods that have been prevented from being sold in the EU since Brexit will be allowed back in again, including burgers and sausages.

Fishing rights

The current fishing deal agreed in 2020 will continue for 12 years.

There will be no increase in fish quotas.

The Cornish fishing village of Padstow.
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British fishing rights will continue for 12 years. Pic: PA

EU fishing vessels can fish in UK waters, but they require a valid licence, and there are annual negotiations on access and share of stock.

The UK government has announced a £360m investment into the fishing industry to go towards new technology and equipment to modernise the fleet, train the workforce, help revitalise coastal communities, support tourism and boost seafood exports.

Defence

A new security and defence partnership has been agreed so the UK defence industry can participate in the EU’s plan for a £150bn defence fund called Security Action for Europe (SAFE). This will support thousands of British jobs.

The UK and EU will also enhance cooperation over maritime security and accident reporting.

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Reeves: ‘Today is a really big day’

Carbon tax

The deal will see closer co-operation on emissions by the UK and the EU, linking their own emissions trading systems.

The UK’s scheme sets a cap on the total amount of greenhouse gas emissions allowed from the power generation sector, energy-intensive industries and aviation, with companies issued allowances that they can trade with each other.

Under the deal, UK businesses will avoid being hit by the EU’s carbon tax, due to come in next year, which would have handed £800m to the EU.

Steel

British steel exports will be protected from new EU rules and tariffs to save UK steel £25m a year.

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Sam Coates says plenty more negotiations will need to take place before a final agreement is reached.

Further talks:

Youth mobility scheme

The UK and the EU have agreed to more negotiations on a youth mobility scheme to allow people aged 18-30 in the UK and the EU to move freely between countries for a limited period.

The scheme would include visas for young people working, studying, volunteering, travelling and working as au pairs.

Erasmus

The EU and the UK have agreed they should work towards an Erasmus programme, the student exchange programme which was scrapped when Brexit took place.

Catching criminals

The two sides have agreed to enter talks about the UK having access to EU facial image data to help catch dangerous criminals.

They will also encourage Europol and the UK’s National Crime Agency to cooperate over criminal threats and exchanging information about terrorism and other serious crimes.

Migration

The two sides have agreed to further work on finding solutions to tackle illegal migration, including on returns and a joint commitment to tackle Channel crossings.

They will also begin talks on making it easier for people to get visas to work in the UK and the EU and recognising professional qualifications.

Analysis sharing on visa abuse by third country nationals will also be considered.

Electricity

The UK and the EU said they should explore the UK’s participation in the EU’s internal electricity market, including in its trading platforms.

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SEC silent on Canary Litecoin ETF amid gov shutdown

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SEC silent on Canary Litecoin ETF amid gov shutdown

SEC silent on Canary Litecoin ETF amid gov shutdown

The US Securities and Exchange Commission has seemingly missed its decision deadline for the Canary Litecoin ETF, adding to uncertainty amid a government shutdown and new generic listing standards.

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European Central Bank picks tech partners for digital euro

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European Central Bank picks tech partners for digital euro

European Central Bank picks tech partners for digital euro

The ECB said it had reached agreements with seven entities not yet involving “any payment” responsible for components of the digital euro, potentially launching in 2029.

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Michelle Mone says she won’t step down as Tory peer – and accuses chancellor of ‘endangering’ her

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Michelle Mone says she won't step down as Tory peer - and accuses chancellor of 'endangering' her

Baroness Michelle Mone says she will defy calls for her to step down from the House of Lords after PPE Medpro, a company founded by her husband, was ordered to repay £122m to the government for providing faulty PPE at the height of the COVID-19 pandemic.

The peer has faced calls to stand down from MPs across the political spectrum, including Chancellor Rachel Reeves, who earlier this week agreed with Baroness Mone’s contention that the government was pursuing a “vendetta” in trying to recover improper Covid funding.

“Too right we are,” she said in comments at the Labour Party conference.

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Baroness Mone ‘should resign’

In an extraordinary letter to the prime minister, Baroness Mone has accused Ms Reeves of endangering her and her family with her comments, citing the murders of Jo Cox and David Amess as evidence of the risks facing parliamentarians.

She also alleged ministerial interference in the civil and ongoing criminal investigations of PPE Medpro, and has called for an investigation into whether ministers have “improperly influenced” the Crown Prosecution Service and the National Crime Agency.

In the letter, sent from the private office of Baroness Mone OBE and seen by Sky News, she addresses the prime minister directly, writing in a personal capacity “first as a wife, second as a mother, and lastly as a Baroness.”

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£122m bill that may never be paid

Referring to Ms Reeves’ comments, she writes: “The chancellor’s deliberate use of the term “vendetta”, a word connoting vengeance, feud and blood feud, is incendiary and has directly increased the risks to my personal safety…. My family and I now live with a heightened and genuine fear of appearing in public.”

She goes on to accuse Reeves and health secretary Wes Streeting of “falsehoods” in demanding that she hand back £122m, pointing out that she was never a director of PPE Medpro and “never received a penny from it personally.”

While the company was founded by her husband Doug Barrowman, a High Court judgement this week confirmed that Baroness Mone introduced it to the government’s VIP fast lane for PPE providers, and lobbied on its behalf in negotiations.

She has previously admitted that £29m of profit from the PPE contract was passed to a family trust of which she and her children are beneficiaries.

The peer has also accused the Prime Minister of “a total lie” when “you stated in Parliament that my children had received £29m into their bank accounts.”

Baroness Mone said that following these comments, she had received threatening and abusive communications, and cited the death of TV presenter Caroline Flack, who took her own life, as showing “the fatal consequences of personalised public vilification”.

“Your cabinet members, by repeating this knowingly false claim, are inciting hostility and inflaming public hatred against me.”

Baroness Michelle Mone and her husband Doug Barrowman. Pic: PA
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Baroness Michelle Mone and her husband Doug Barrowman. Pic: PA

She has also accused the home secretary of influencing the NCA and Director of Public Prosecutions in unspecified meetings to discuss “high-profile cases”.

“That political influence is being brought to bear is, therefore, undeniable,” she said.

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On Wednesday, PPE Medpro was ordered to repay £122m paid for 25 million surgical gowns that failed to meet sterility standards in breach of its contract with the Department of Health and Social Care.

PPE Medpro was put into administration the day before the judgment, with assets of just £666,000.

Asked if Baroness Mone would step down from the Lords, a spokesman said: “Those calling for Baroness Mone’s resignation from the House of Lords would be well advised to read the open letter sent this morning to the prime minister, which sets out how this has now become a personal attack and vendetta, politically motivated with loss of all balance and objectivity.”

Sky News has asked Number 10 and the Treasury for a response to the allegations made by Baroness Mone.

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