Britain and the EU have an understanding on what needs to be done to resolve issues surrounding the Northern Ireland Protocol but a deal is “by no means done”, Rishi Sunak has said.
Speaking during a question and answer session after his speech at the Munich Security Conference, the prime minister said Britain wanted to have a positive relationship with the bloc.
But he said that there were “real issues that need resolving”.
“The way that the protocol has been implemented, it’s causing very real challenges for families, for people, for businesses on the ground,” he said.
“We’re engaging in those conversations with the European Union all the time and we have been for a while, but what I’d say is there is still work to do.
“There are still challenges to work through. We have not resolved all these issues.
“No, there isn’t a deal that has been done, there is an understanding of what needs to be done.”
Mr Sunak added that “we’re working through (the issues) hard and we will work through them intensely with the EU, but we are by no means done”.
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2:36
Hope of NI Brexit breakthrough
Speaking after discussions with Mr Sunak, who was in Northern Ireland on Friday to hold talks with political leaders, she told reporters: “We have always believed that a deal on the protocol was possible and we’ve always known it was necessary.
“It is clear that significant progress has been made and we are very heartened by that. We now want to see a speedy concluding of matters.
“The bottom line is that we have to ensure that any deal provides for ongoing access to the European single market, no hardening of the border on the island of Ireland and a protection of the Good Friday Agreement in all of its parts.
“It seems to us that it’s very much game on.”
Image: Mary Lou McDonald with Michelle O’Neill
She said if these terms are reached it is then “a matter for everyone, for each of the political parties to step up, get back to work and deliver for people here in the north of Ireland”.
This is likely aimed at the DUP and other unionists, who have collapsed the Stormont assembly in protest over the protocol.
After emerging from talks with Mr Sunak, DUP leader Sir Jeffrey Donaldson said while “progress has been made” on the Northern Ireland Protocol, there is “still some work required”.
Image: DUP leader Sir Jeffrey Donaldson
He warned that “if and when a final agreement is reached, we will want to carefully consider the detail of that agreement and decide if the agreement does, in fact meet our seven tests”.
These “seven tests” were set out by the party in 2021 and include no new checks of any sort on goods being traded between GB and NI.
Asked if he will compromise on these tests for a deal to pass muster, Sir Jeffrey said it “is not a question of compromising”, but rather the “UK government honouring the commitments they’ve made”.
Rishi Sunak may not want to look like he is jumping the gun over new deal
Rishi Sunak very much downplaying reports that there could be a deal revealed as soon as Monday.
I guess the question is, whether that is an indication of genuine delays and problems and that there may not be something coming in the imminent future, or whether this is more strategy.
I think when you look at some of the choreography of the last few days, discussions going on in Belfast, the foreign secretary in Brussels yesterday, and meetings with EU leaders in Munich, it feels like there is something more substantial that is moving there.
So what may be going on, quite frankly, is an attempt not to sound too presumptuous in terms of revealing a deal without the DUP’s permission. Because of course, it is the DUP, unionist politicians in Northern Ireland, that really need to approve of this deal.
Because if they don’t, they will refuse to go back into power-sharing in Belfast and it means the democratic institutions, the executive, and the assembly there, won’t sit again.
So Rishi Sunak is trying to keep multiple audiences happy here, and that is potentially why he doesn’t want to sound too presumptuous or looking like he is jumping the gun in announcing any potential deal on the Northern Ireland Protocol.
The mechanism has left Northern Ireland without a devolved power-sharing executive since early last year.
The protocol has overshadowed Northern Irish politics since it was agreed upon as part of the Brexit deal in a bid to avoid a hard border on the island of Ireland.
Members of the unionist community are unhappy with the difficulties it creates for trade between Northern Ireland and Great Britain, with the DUP refusing to cooperate with forming a devolved Executive in Stormont until the issues are resolved.
Sir Keir Starmer has suspended four Labour MPs today for “repeated breaches of party discipline”.
Brian Leishman, Chris Hinchliff, Neil Duncan-Jordan and Rachael Maskell were suspended from the parliamentary Labour Party and will sit as independent MPs.
However, Sky News understands that this isn’t the only reason behind the decision, and that more suspensions could come.
But who are the four MPs suspended? And how critical were they of the government?
Brian Leishman
Image: Pic: UK Parliament
The MP for Alloa and Grangemouth was first elected in last year’s general election. While the constituency was contested for the first time that year, it would have been an SNP seat notionally.
Mr Leishman is also a member of the Socialist Campaign Group inside Labour and was previously elected to Perth and Kinross Council in 2022.
A frequent voter against the government, he has criticised his party for not doing enough to save Grangemouth oil refinery, and rebelled against votes on the Winter Fuel Allowance and welfare.
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From April: Minister defends refinery closure
In a statement, he said: “I am a proud Labour member, and I remain committed to the party.”
He added that he wishes “to remain a Labour MP and deliver the positive change many voters are craving,” but added he voted against the government on some issues to represent his constituents.
“I firmly believe that it is not my duty as an MP to make people poorer, especially those that have suffered because of austerity and its dire consequences,” he said.
“It is the honour of my life to be the MP for Alloa and Grangemouth, and my priority remains representing and fighting for constituents, whether they voted for me or not.”
Chris Hinchliff
Image: Pic: UK Parliament
Another 2024 newcomer to Parliament, the MP for North East Hertfordshire is one of the younger politicians at 31 years old.
He won the constituency for the first time since it was established in 1997.
As MP, Mr Hinchliff has supported rebellions on cuts to welfare and the Winter Fuel Allowance, and also proposed amendments to the government’s Planning and Infrastructure Bill – criticising the government’s consultation with private finance groups – in April.
So far, the MP hasn’t made a public statement, but he had previously said he didn’t mind losing the whip over his opposition to the welfare cuts.
The MP for Poole was also elected in the 2024 election, winning his seat from the Conservatives by just 18 votes. It was the first time Labour had won in the constituency.
Before standing for election, Mr Duncan-Jordan was a regional officer for UNISON, one of the largest trade unions in the UK.
He’s been an outspoken critic of proposed cuts to welfare and disability payments, calling the welfare bill a “dog’s dinner” and last year leading an early day motion to postpone an end to the Winter Fuel Allowance.
In response to losing the whip, said in a statement: “I understood this could come at a cost, but I couldn’t support making disabled people poorer”.
“Although I’ve been suspended from the Parliamentary Labour Party today,” he added, “I’ve been part of the Labour and trade union movement for 40 years and remain as committed as ever to its values.
“To my constituents: it’s business as usual. I remain your hardworking local MP, I will continue to take up your concerns and speak up for Poole.”
Rachael Maskell
Image: Pic: UK Parliament
Shortly before 4pm, the MP for York Central became the fourth MP to be suspended by the government for rebelling.
In Parliament since 2015, Ms Maskell led the welfare rebellion against the government’s reforms – and voted against them even after they were significantly watered down.
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Maskell slams ‘Dickensian’ welfare cuts
Earlier this month, she told Sky News presenterGareth Barlow: “No one feels comfortable when the family is arguing, and that’s why listening is so important.
“I want to see instituted back in the heart of the party a recognition of the role of backbenchers.”
And speaking to Sky’s chief political correspondent Jon Craig after her suspension, she said: “The reason I have been suspended is because I voted in the way I did. I believe I am fighting for people that really matter, the poorest people in society.
“That is why the Labour Party was created – I will never give up that fight.”
Sir Keir Starmer has said former Tory ministers have “serious questions to answer” about how the names of Afghans who worked with UK forces were exposed.
Nearly 7,000 Afghan nationals are being relocated to the UK after their names were accidentally sent in an email in February 2022, when Boris Johnson was prime minister, but the leak was only discovered by the British military in August 2023, when Rishi Sunak was PM.
A super-injunction, preventing the reporting of the mistake, was imposed that year in an attempt to prevent the Taliban from finding out about the leak.
The Conservative government at the time then started transporting thousands of Afghans to the UK in secret as they were in danger.
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Victim of Afghan data breach speaks to Sky
Kicking off Prime Minister’s Questions, Sir Keir said: “Ministers who served under the party opposite have serious questions to answer about how this was ever allowed to happen.
“The chair of the defence committee has indicated that he intends to hold further inquiries.
“I welcome that and hope that those who are in office at the time will welcome that scrutiny.”
The data breach saw a defence official accidentally release details of almost 19,000 people seeking to flee Afghanistan after the return of the Taliban.
Conservative leader Kemi Badenoch avoided mentioning the data breach, but Lib Dem leader Sir Ed Davey said it was “shocking” how it had been kept secret for three years.
Sir Ed said the prime minister will have the Lib Dems’ support if he decides to pursue a public inquiry.
Mr Healey’s Tory predecessor, Sir Ben Wallace, said he makes “no apology” for applying for the initial four-month injunction and insisted it was “not a cover-up”.
The scheme, which had been kept under wraps until yesterday, has so far cost hundreds of millions of pounds.
However, the total cost to the taxpayer of existing schemes to assist Afghans who are deemed eligible for British support, as well as the additional cost from the breach, will come to at least £6bn.
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He said: “I’m really deeply uncomfortable with the idea that a government applies for a super-injunction.
“If there are any [other] super-injunctions in place, I just have to tell you – I don’t know about them. I haven’t been read into them.
“The important thing here now is that we’ve closed the scheme.”
Mr Healey was informed of the breach while in opposition, and earlier this year he commissioned a review that led to the injunction being lifted.
He said “accountability starts now” and added Labour had to deal with the risks, court papers, intelligence assessments and different schemes when they came to power last summer before they could lift the injunction.
The rate of inflation has risen by more than expected on the back of fuel and food price pressures, according to official figures which have prompted accusations of an own goal for the chancellor.
The Office for National Statistics (ONS) reported a 3.6% level for the 12 months to June – a pace not seen since January last year.
That was up from the 3.4% rate seen the previous month. Economists had expected no change.
ONS acting chief economist Richard Heys said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.
“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”
A key driver of food inflation has been meat prices.
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Beef, in particular, has shot up in cost – by more than 30% over the past year – according to Association of Independent Meat Suppliers data reported by FarmingUK.
Image: Beef has seen the biggest percentage increase in meat costs. Pic: PA
High global demand alongside raised production costs have been blamed.
But Kris Hamer, director of insight at the British Retail Consortium, said: “While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.
“Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising.”
It marked a clear claim that tax rises imposed on employers by Rachel Reeves from April have helped stoke inflation.
Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: “The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.”
Chancellor Rachel Reeves said of the data: “I know working people are still struggling with the cost of living. That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.
“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”
The wider ONS data is a timely reminder of the squeeze on living standards still being felt by many households – largely since the end of the COVID pandemic and subsequent energy-driven cost of living crisis.
Record rental costs alongside elevated borrowing costs – the latter a result of the Bank of England’s action to help keep a lid on inflation – have added to the burden on family budgets.
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8:30
Is the cost of living crisis over?
Most are still reeling from the effects of high energy bills.
The cost of gas and electricity is among the reasons why the pace of price growth for many goods and services remains above a level the Bank would ideally like to see.
Added to that is the toll placed on finances by wider hikes to bills. April saw those for water, council tax and many other essentials rise at an inflation-busting rate.
The inflation figures, along with employment data due tomorrow, are the last before the Bank of England is due to make its next interest rate decision on 7 August.
The vast majority of financial market participants, and many economists, expect a quarter point cut to 4%.
That forecast is largely based on the fact that wider economic data is suggesting a slowdown in both economic growth and the labour market – twin headaches for a chancellor gunning for growth and juggling hugely squeezed public finances.
Professor Joe Nellis, economic adviser at the advisory firm MHA, said of the ONS data: “This is a reminder that while price rises have slowed from the highs of 2021-23, the battle against inflation is far from over and there is no return to normality yet – especially for many households who are still feeling the squeeze on essentials such as food, energy, and services.
“However, while the Bank of England is expected to take a cautious approach to interest rate policy, we still expect a cut in interest rates when the Monetary Policy Committee next votes on 7th August.
“Despite inflation at 3.6% remaining above the official 2% target, a softening labour market – slowing wage growth and decreasing job vacancies – means that the MPC will predict inflation to begin falling as we head into the new year, justifying the lowering of interest rates.”