Blog

STORY

The United Kingdom and the United States have unveiled a significant trade agreement aimed at reducing tariffs and enhancing economic ties between the two nations. This deal marks the first major bilateral trade accord since the UK’s departure from the European Union and the first under President Donald Trump’s renewed tariff regime. Under the new agreement, the United States will reduce tariffs on British car exports from 27.5% to 10% for up to 100,000 vehicles annually. Additionally, tariffs on British steel and aluminium exports will be eliminated entirely within specified quotas. Tariffs on US ethanol and UK-manufactured Rolls-Royce aircraft engines will also be removed.

President Trump hailed the deal as a “full and comprehensive” agreement that will “cement the relationship between the United States and the United Kingdom for many years to come.” He emphasised that the agreement would open up billions of dollars in new export opportunities for American producers and strengthen national security for both countries. UK Prime Minister Keir Starmer described the agreement as a “historic day” and a testament to the close working relationship between the two nations. He highlighted that the deal would boost trade, protect and create jobs, and open market access, particularly benefiting the UK’s automotive and steel industries.

The agreement maintains the UK’s food safety standards, with no concessions made on importing chlorine-washed chicken or hormone-treated beef. However, concerns have been raised about potential UK concessions on digital regulation and tech taxation, areas that remain under negotiation. While the agreement is seen as a significant step in strengthening US-UK economic relations, some opposition MPs have called for greater parliamentary scrutiny of the deal’s terms. The UK continues to pursue additional trade agreements, including recent negotiations with India and efforts to ease trade barriers with the European Union.

STORY

Newly elected Reform UK councillor Joel Tetlow is under intense scrutiny after sharing a controversial meme featuring Adolf Hitler on social media during VE Week commemorations. The post, which depicted Hitler overlooking a map of Europe with an apparent reference to small boats crossing the Channel, has sparked widespread condemnation and calls for his suspension.

Despite the backlash, Reform UK has decided not to suspend Councillor Tetlow. The party’s stance has been met with criticism from various quarters, including fellow politicians and community members. Sarah Smith, a local political figure, publicly called on Reform UK leader Nigel Farage to take immediate action, stating, “I am calling on Nigel Farage and Reform UK to immediately suspend Councillor Joel Tetlow from their party.”

Hyndburn MP Sarah Smith and Blackpool South MP Chris Webb both called the Reform to suspend the councillor who has just been elected to Lancashire County Council.

STORY

The Bank of England has reduced its base interest rate by 0.25 percentage points to 4.25%, marking the fourth cut since August 2024 and the most rapid easing of monetary policy since the 2008 financial crisis. This decision by the Monetary Policy Committee (MPC), which voted 8-1 in favour of the cut, aims to bolster the UK economy amid slowing inflation and heightened global trade tensions. Inflation has declined from a peak of 11.1% in October 2022 to 2.6% in March 2025, approaching the Bank’s 2% target.

The recent imposition of tariffs by the United States has introduced additional economic uncertainty, prompting the Bank to adjust its growth and inflation forecasts downward. Governor Andrew Bailey indicated that further rate cuts could be considered if economic conditions continue to deteriorate. For homeowners, the rate cut offers some relief. Approximately 590,000 borrowers with base-rate tracker mortgages will see immediate reductions in their monthly payments. However, the majority of mortgage holders on fixed-rate deals will not experience immediate changes. Looking ahead, financial markets anticipate additional rate reductions, potentially bringing the base rate down to 3.5% by the end of 2025. This outlook reflects ongoing concerns about economic growth and the impact of international trade developments.

STORY

The UK government has announced the appointment of Ms Kara Owen CMG CVO as His Majesty’s Ambassador to Ireland, succeeding Mr Paul Johnston and Ms Owen is set to assume her new role in September 2025. Ms Owen brings a wealth of diplomatic experience to the position. Her recent roles include serving as British High Commissioner to Singapore from 2019 to 2024, and as Director for the Americas at the Foreign and Commonwealth Office (FCO) between 2016 and 2019. Her career also encompasses postings in Paris, Hanoi, and Hong Kong, as well as senior positions within the FCO, including Director for Diversity and Equality and Head of Strategy and Network Department.

Mr Paul Johnston, who has served as Ambassador to Ireland since September 2020, will be concluding his tenure later this year. During his time in Dublin, Mr Johnston navigated significant events such as the implementation of the post-Brexit trade arrangements and the challenges posed by the COVID-19 pandemic. His prior diplomatic service includes roles as British Ambassador to Sweden and Deputy Permanent Representative to NATO. Ms Owen’s appointment comes at a pivotal time for UK-Ireland relations, with ongoing collaboration on trade, security, and cultural exchange.

STORY

On the 80th anniversary of Victory in Europe (VE) Day, Prime Minister Sir Keir Starmer outlined a comprehensive vision for a “defence dividend” aiming to intertwine national security enhancements with economic revitalisation. Speaking at the London Defence Conference, Starmer emphasised that increased defence spending should directly benefit working people across the UK. “Our task now is to seize the defence dividend—felt directly in the pockets of working people, rebuilding our industrial base, and creating the jobs of the future” Starmer stated. He announced a £563 million contract awarded to Rolls-Royce for the maintenance of the Royal Air Force’s Typhoon jets, highlighting it as a significant investment in Britain’s engineering sector.

The Prime Minister’s address also underscored the necessity of a unified national effort, calling on the state, businesses and society to collaborate in bolstering the nation’s security and prosperity. This initiative comes in response to shifting global dynamics, including the United States’ reduced role in European defence under President Donald Trump, prompting the UK to increase its defence spending to 2.5% of GDP which is the highest since the Cold War.

Defence Secretary John Healey echoed Starmer’s sentiments, warning that global threats are at their highest since 1945, with Russia’s actions in Ukraine serving as a stark reminder of ongoing international tensions. Healey emphasised the importance of national unity and proactive efforts to secure peace in Europe today. While the government’s commitment to increased defence spending aims to strengthen national security and stimulate economic growth, public opinion remains divided. Recent polls indicate that only 35% of the population supports increased defence expenditure, highlighting the need for transparent communication about the benefits of such investments.