Tag: News Story

STORY

The UK has agreed a trade deal with the Gulf Cooperation Council which ministers say will be worth £3.7 billion a year to the economy in the long term. The agreement covers Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, making the UK the first G7 country to agree a trade deal with the bloc.

The Government said the deal would remove tariffs on food exports, medical equipment and advanced manufacturing, while also including commitments on the free flow of data. Reuters reported that the agreement would remove 93% of GCC tariffs on British goods, with cars, aerospace, electronics and food and drink among the sectors expected to benefit.

Trade Secretary Peter Kyle said the agreement would give exporters greater certainty at a time of regional instability. Campaign groups have criticised the absence of enforceable human rights provisions and raised concerns about investor protection arrangements, but ministers said the deal would not weaken UK environmental or data protection standards.

STORY

Newly released Government documents have raised questions about the appointment of Andrew Mountbatten-Windsor as a UK trade envoy. The Guardian reported that ministers said there was no evidence of a formal due diligence or security vetting process when he was appointed to the role in 2001.

The papers also show that Queen Elizabeth II was keen for Andrew to have a prominent role promoting national interests. Sky News reported that a briefing note said no one else had been approached for the role and that his value was considered to be the high profile and commitment he could provide as a member of the Royal Family.

Andrew served as the UK’s special representative for international trade and investment between 2001 and 2011. The release of the documents follows parliamentary pressure for greater transparency over the appointment and wider scrutiny of his conduct while carrying out the public role.

STORY

Andy Burnham has said he would support major electoral reform if he became Prime Minister, including changes intended to make politics less focused on party conflict and more focused on problem-solving. The Greater Manchester Mayor made the comments in an interview with BBC Radio Manchester as he campaigns as Labour’s candidate in the Makerfield by-election.

Burnham has previously supported proportional representation for UK general elections and said the political system needed to become more place-led and long-term in its approach. He argued that politics in Britain was at risk of becoming broken unless power was shared more effectively and public trust was rebuilt.

The Makerfield contest is due on 18 June and is expected to be one of the most significant by-elections of the Parliament. Burnham is seeking a return to Westminster before any possible Labour leadership challenge, while Reform UK is expected to make the seat a major test of Labour support in the north-west.

STORY

Wes Streeting has called for capital gains tax to be brought into line with income tax as he continues to set out his case for Labour’s future direction. Reuters reported that the former Health Secretary said income made from owning assets should not be taxed less heavily than income earned from work.

The proposal would mean higher capital gains tax rates than those currently charged, with Reuters reporting that Streeting’s plan could raise rates from 18% to 24% at present to as much as 40% or 45%, depending on a taxpayer’s income band. A study cited in the report estimated that such a change could raise around £12 billion a year.

Streeting has said he would like to challenge Keir Starmer if there is a Labour leadership contest. His latest intervention comes as Andy Burnham also prepares for the Makerfield by-election, which is due to take place on 18 June and is expected to be closely watched by Labour MPs.

STORY

Long-term net migration to the UK nearly halved in 2025, according to new figures from the Office for National Statistics. Reuters reported that net migration fell to 171,000 in the 12 months to December, down from 331,000 a year earlier and well below the record peak of 944,000 in 2023.

The fall follows a series of restrictions introduced by successive Governments, including tighter rules on student dependants, higher salary thresholds for skilled worker visas and limits on overseas recruitment into the care sector. The Labour Government has also set out further reforms, including changes to settlement rules and measures aimed at increasing removals.

Home Secretary Shabana Mahmood (in photo) welcomed the fall but said there was more work to do to restore order and control to the immigration system. Business groups and immigration specialists have warned that sharp reductions in migration could add to labour shortages in sectors including care and hospitality.

STORY

Rachel Reeves has announced a summer cost of living package including free bus travel for children and targeted food tariff cuts. The Treasury said children aged five to 15 will be able to travel free on participating local bus services in England throughout August, as part of the Government’s Great British Summer Savings Scheme.

The Government also said it would launch a business engagement exercise on further targeted cuts to agri-food tariffs, including a planned suspension of tariffs on more than 100 types of products such as biscuits, chocolate, dried fruit and nuts. Ministers said the measures were intended to reduce pressure on household budgets during a period of higher prices linked to the conflict in Iran.

Reeves said her priority was protecting households from rising costs and said the package would help families enjoy the summer. Transport Secretary Heidi Alexander said free bus travel would help children and families during the school holidays, while transport and passenger groups welcomed the measure as a way of supporting affordable public transport.

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Wes Streeting has used his first Commons speech since resigning as Health Secretary to warn that Labour is “in the fight of our lives” against nationalism and risks losing unless it offers a clearer sense of change. Streeting told MPs that the party needed to be more ambitious in government and said Labour could not afford to leave voters feeling that politics had failed to improve their lives.

Streeting said Labour faced pressure from nationalist and populist parties across the UK, including Reform UK, the SNP and Plaid Cymru. He argued that the party needed to reclaim a confident sense of patriotism and show that government could deliver on housing, jobs and opportunity, particularly for younger people facing high costs, economic uncertainty and the impact of artificial intelligence.

The speech followed Streeting’s resignation from the Cabinet and his call for Keir Starmer to stand down as Prime Minister. While he did not launch a direct leadership bid in the Commons speech, his intervention added to wider pressure on Starmer after a period of Labour unrest, ministerial resignations and speculation about the party’s future direction.

STORY

The UK Government has relaxed sanctions rules to allow diesel and jet fuel made from Russian-origin crude oil to enter the country if it has been refined in other countries. Sky News reported that officials had issued a licence taking effect on Wednesday, with the arrangement subject to periodic review by the Business Secretary.

The change follows concerns about jet fuel supplies during the summer as the conflict in the Middle East disrupts global oil flows. The UK had previously banned oil products refined in third countries from Russian-origin crude as part of efforts to put financial pressure on Moscow over its war in Ukraine.

Other refined oil products made from Russian-origin crude, including petrochemicals and heating oil, remain banned. The decision is likely to attract political scrutiny because it comes after ministers had previously argued that stopping Russian oil from reaching UK markets was an important part of the sanctions regime.

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Backbench MPs will find out on Thursday which of them have secured priority for Private Members’ Bills in the new parliamentary session. The ballot will be drawn at 9am on 21 May by Nusrat Ghani (in photo), the Chairman of Ways and Means, in Committee Room 16.

Private Members’ Bills allow MPs who are not Government ministers to propose changes to the law. Ballot bills have the best chance of progressing because they are given priority in the limited amount of parliamentary time available for backbench legislation.

Twenty MPs will be drawn, with the last name called receiving the top place in the ballot. The successful MPs are due to introduce their Bills to the Commons on 17 June, with each MP choosing the issue they want to bring before Parliament.

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The House of Lords is debating health, housing and transport as peers continue scrutiny of the King’s Speech. The debate forms part of five days of Lords consideration of the Government’s legislative agenda following the State Opening of Parliament.

Previous Lords debates this week have covered justice, home affairs, the Union, education, culture, technology and energy security. The final Lords debate is scheduled for Thursday and will focus on foreign affairs, international relations and defence.

The King’s Speech sets out the Government’s priorities for the new parliamentary session, but the debates also allow peers to test ministers on wider policy direction. After the debates, bills will be introduced and members of both Houses will begin detailed scrutiny of the legislative programme.