Sir Keir Starmer set for Donald Trump trade talks as PM walks diplomatic line between EU allies and US on Gaza
Gaza and transatlantic trade are set to dominate talks between Donald Trump and Sir Keir Starmer when the pair meet in Scotland on Monday.
Downing Street said the prime minister would discuss “what more can be done to secure the ceasefire [in the Middle East] urgently”, during the meeting at the president’s Turnberry golf course in Ayrshire.
Talks in Qatar over a ceasefire ended on Thursday after the US and Israel withdrew their negotiating teams.
Mr Trump blamed Hamas for the collapse of negotiations as he left the US for Scotland, saying the militant group “didn’t want to make a deal… they want to die”.
Sir Keir has tried to forge close personal ties with the president, frequently praising his actions on the world stage despite clear foreign policy differences between the US and UK.
The approach seemed to pay off in May when Mr Trump announced the agreement of a trade deal with the UK that would see several tariffs lowered.
The two leaders are expected to discuss this agreement when they meet, with the prime minister likely to press the president for a lowering of outstanding tariffs on imports such as steel.
Prior to the visit, the White House said the talks would allow them to “refine the historic US-UK trade deal”.
Extracting promises from the president on the Middle East may be harder though.
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Should aid be dropped into Gaza?
Despite some reports that Mr Trump is growing frustrated with Israel, there is a clear difference in tone between the US and its Western allies.
As he did over the Ukraine war, Sir Keir will have to walk a diplomatic line between the UK’s European allies and the White House.
On Thursday, French President Emmanuel Macron announced his country would formally recognise a Palestinian state in September, the first member of the G7 to do so.
That move was dismissed by Mr Trump, who said it “doesn’t carry any weight”.
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The UK, French and German leaders spoke over the weekend and agreed to work together on the “next phase” in Gaza that would see transitional governance and security arrangements put in place, alongside the large-scale delivery of aid.
Under pressure from members of his own party and cabinet to follow France and signal formal recognition of Palestine, Sir Keir has gradually become more critical of Israel in recent months.
On Friday, the prime minister said “the starvation and denial of humanitarian aid to the Palestinian people, the increasing violence from extremist settler groups, and Israel’s disproportionate military escalation in Gaza are all indefensible”.
Government sources say UK recognition is a matter of “when, not if”, however, it’s thought Downing Street wants to ensure any announcement is made at a time when it can have the greatest diplomatic impact.
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Baby Zainab starved to death in Gaza
Cabinet ministers will be convened in the coming days, during the summer recess, to discuss the situation in Gaza.
The UK has also been working with Jordan to air drop supplies, after Israel said it would allow foreign countries to provide aid to the territory.
President Trump’s trip to Scotland comes ahead of his second state visit to the UK in September.
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Downing Street says Ukraine will also likely be discussed in the meeting with both men reflecting on what can be done to force Russia back to the negotiating table.
After the meeting at Turnberry, the prime minister will travel with the president to Aberdeen for a private engagement.
Mr Trump is also expected to meet Scottish First Minister John Swinney while in the country.
Chancellor Rachel Reeves has been urged to “reject the path of least resistance” and consider increasing taxes in the budget.
The Institute for Government (IfG), a leading think tank, said Labour’s “rash” and “unrealistic” approach to tax has left the chancellor reaching for “piecemeal changes”.
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The government has repeatedly said it will not increase VAT rates, income tax or national insurance at the budget in November.
But a report by the think tank calls on Ms Reeves to commit to serious tax reform, instead of reaching for an “eclectic grab bag of tax raisers”, which could further complicate the system.
It comes after the Resolution Foundation proposed a 2p cut in national insurance, matched by a 2p rise in income tax, to create a “level playing field” and protect workers’ pay.
Tory shadow work and pensions secretary Helen Whately said Ms Reeves was “preparing even more tax rises, set to hit families already struggling and choke off jobs at the very moment we need them most”.
She added: “Every Labour government ends the same way, with more people out of work, higher taxes and a bigger black hole in the public finances.”
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Ms Whately’s remarks came as the government announced a £25m funding boost for the expansion of youth hubs.
The Premier League has joined forces with Labour to support the expansion, with top football clubs signing up to help get more young people into work.
Work and Pensions Secretary Pat McFadden will be speaking to Sky News Breakfast about the plans this morning.
Scrapping two-child benefit limit would reduce child poverty, report suggests
Meanwhile, a report has suggested scrapping the controversial two-child benefit limit would reduce child poverty, but not necessarily help with a youngster’s early development and their readiness for school.
The Institute for Fiscal Studies (IFS) concluded the policy has “no statistically significant impact” on the proportion of children in England achieving what is known as a “good level of development” by age five.
The two-child limit, which was announced by the Conservatives in 2015 and came into effect in 2017, limits child tax credit and universal credit to the first two children in most households.
The government is expected to publish a strategy to tackle child poverty this autumn and has been under pressure to scrap the policy, which charities and organisations working in the sector estimate pulls more than 100 children a day into poverty.
Galaxy Digital’s Mike Novogratz says US crypto legislation will unleash new market participation, which could break the traditional four-year cycle.
US Commodity Futures Trading Commission acting chair Caroline Pham said her agency is looking to allow derivatives traders to post stablecoins and tokenized assets as collateral.
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