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At the weekend, Downing Street said recognition of Palestine was “a matter of when, not if”.

So why now?

“We will recognise the state of Palestine in September before the United Nations General Assembly”, Sir Keir Starmer announced on Tuesday, in what looks like another U-turn.

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Was it pressure from the more than 250 MPs, most of whom are Labour, who wrote to the prime minister last week calling for recognition? Almost certainly.

The PM has a lot of form now for bowing to pressure from Labour MPs poised to rebel against government policy.

The demand to the PM in the letter orchestrated by Labour MP Sarah Champion, who chairs the all-party international development select committee, was for the government to recognise Palestine at the United Nations conference on the Middle East currently taking place in New York.

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Foreign Secretary David Lammy was cheered and applauded when he repeated the pledge made by Sir Keir in a near-empty room in Downing Street to TV cameras and just two journalists.

But there are conditions. And the early response from the Israelis was not encouraging.

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Lammy: ‘Time to abate suffering of Palestinians in Gaza’

First, the PM said, “end the appalling situation in Gaza“, then “a ceasefire, no annexation in the West Bank and a long-term peace process that delivers a two-state solution”.

Good luck, as they say, with that.

If the shift in the PM’s position wasn’t the result of pressure from MPs, was it a potential mutiny inside the cabinet?

It followed a lengthy cabinet meeting after ministers were dragged from their sun beds and allowed to dial in remotely rather than turn up at 10 Downing Street in person.

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It was reported before the meeting that seven cabinet ministers, including big hitters Mr Lammy and the Deputy Prime Minister Angela Rayner, backed recognising Palestine.

So yes, the PM could see that the way cabinet ministers were moving and holding out against recognition was becoming unsustainable.

Was it the result of pressure from President Macron. That was certainly a major factor too. After “le bromance” during the president’s state visit, the two leaders spoke at length at the weekend.

Asked what difference recognising Palestine would make in practice, Sir Keir said the aim was that it would help improve conditions on the ground in Gaza.

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Ahead of his statement, the PM briefed Israel’s Prime Minister Benjamin Netanyahu and the King of Jordan, whose country is spearheading the air drops of aid into Gaza. More phone calls with world leaders are planned in the coming hours.

Sir Keir wouldn’t answer a question about what assurances he’d received from President Trump during their talks in Scotland about using his influence with the Israeli PM to allow aid into Gaza.

That is the most urgent priority, as the PM acknowledged. And since President Trump, speaking about the horrible TV pictures from Gaza, memorably said “you can’t fake that” and “every ounce of food” should be allowed in, it seems he did indeed listen to Sir Keir’s pleas in Scotland.

So even if he has indeed bowed to pressure from MPs and cabinet ministers, Sir Keir has achieved a significant breakthrough in the past 48 hours or so.

He won’t please everyone, obviously, but no politician ever did in the Middle East.

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Crypto treasuries top $100B for Ethereum’s 10th anniversary: Finance Redefined

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Crypto treasuries top 0B for Ethereum’s 10th anniversary: Finance Redefined

Crypto treasuries top 0B for Ethereum’s 10th anniversary: Finance Redefined

Ethereum’s 10th anniversary celebration was marked by an uptick in institutional demand for Ether as an alternative treasury reserve asset, prompting Wall Street to look past Bitcoin.

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Hong Kong stablecoin stocks slide as new rules take effect, experts see healthy reset

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Hong Kong stablecoin stocks slide as new rules take effect, experts see healthy reset

Hong Kong stablecoin stocks slide as new rules take effect, experts see healthy reset

Stablecoin-linked stocks in Hong Kong plunged by double digits amid the city’s new regulatory transition, but experts say it’s a healthy correction.

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Chancellor Rachel Reeves dodges wealth tax calls from predecessor

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Chancellor Rachel Reeves dodges wealth tax calls from predecessor

Chancellor Rachel Reeves has dodged calls from her predecessor Anneliese Dodds for a wealth tax to be considered ahead of this autumn’s budget.

When Sir Keir Starmer became Labour leader in 2020, Ms Dodds was his first pick for shadow chancellor. However, she did not last long and was replaced by Ms Reeves, who then got the government job after last year’s election win.

Speaking to the Sky News political editor Beth Rigby on the Electoral Dysfunction podcast, Ms Dodds said she had examined wealth taxes when she was briefly in the shadow chancellor job and how one could be implemented.

She said: “I would hope the Treasury is considering that kind of evidence, as well as other changes that have been put forward.”

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‘Rachel Reeves would hate what you just said’

Asked today if about Ms Dodds’ intervention, Ms Reeves said: “Decisions around tax are decisions that are made at a budget and we’ll make those decisions in the appropriate way, but the number-one priority of this government is to grow the economy.

“And that means bringing more investment into Britain, creating more good jobs paying decent wages here in Britain.

Listen here to hear Ms Dodds’ full comments:

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“We’ve got to get the balance right on taxation because we want that investment, we want those jobs to come here.

“That’s why we’re reforming the planning system, secured three trade deals in the first year of this Labour government, cutting back on unnecessary regulation, and reforming our pension system to unlock money for businesses to be able to invest here in the UK.”

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What is a wealth tax?

The government’s financial position is stretched ahead of the next budget, due at the end of autumn.

Ms Reeves has committed herself to not changing her fiscal rules, leaving little wiggle room to avoid tax rises or spending cuts.

This is due to the government’s inability to save money through policies like welfare reform, which were gutted due to a rebellion of backbench Labour MPs.

Last week, Business Secretary Jonathan Reynolds branded the suggestion of a wealth tax “daft” – but he has less influence over the writing of the budget than the chancellor.

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Meanwhile, reports from the Daily Telegraph suggested that Deputy Prime Minister Angela Rayner backed increasing taxes, including reinstating the pensions lifetime allowance and a higher corporation tax level for banks.

Ms Dodds also wants to see those considered.

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