Suspension of trade talks a political signal that Israeli leadership is increasingly isolated

Published

2 months ago

May 20, 2025

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The UK has suspended trade talks with Israel, in protest at what David Lammy called the “intolerable” conditions in Gaza, which he said would leave the population at risk of starvation.

This is, the foreign office confirms, a UK first, in suspending trade talks for a political or humanitarian reason. The Israeli ambassador in London, Tzipi Hotovely, will be summoned to the Foreign Office to deliver the message.

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This suspension, with immediate effect, is a political signal that the Israeli leadership is increasingly isolated even among its allies; and intended to ratchet up the pressure to let aid in.

It comes with a step change in the UK’s language on the humanitarian situation.

Keir Starmer on Monday night, in his joint statement with French President Emmanuel Macron and Canadian Prime Minister Mark Carney, said there would be “concrete steps” if food and medicine continued to be held up at borders; and this is one of the levers available.

David Lammy, announcing the move and targeted sanctions against West Bank settlers linked to violence, called it a “dark phase” in the conflict and said: “[Benjamin] Netanyahu’s actions have made this necessary.”

Trade talks were launched under Rishi Sunak’s government, and a 2030 Roadmap was agreed for boosting trade.

Gaza live: UK halts trade talks with Israel

But although the Labour government committed to continuing with it, the last round of talks was held more than a year ago.

Israel has, the UN say, not allowed trucks in for 11 weeks, after saying Hamas steal the aid intended for civilians. Some trucks entered on Tuesday, but aid agencies say it is nowhere near enough.

With the collapse of the latest talks between the two sides in Qatar last week, the ceasefire the UK is calling for looks far off.

Using economic measures to force the aid issue is likely to be a signal to other allies, including the European Union, to take similar steps.

Politics

Jingye and Whitehall officials hold talks over British Steel future

Published

3 hours ago

July 9, 2025

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Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

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Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.

Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.

“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”