Tag: News Story

STORY

The debate over Britain’s future relationship with the European Union has returned to Westminster politics after senior Labour figures raised the prospect of closer ties or eventual re-entry. The Independent reported that former European officials warned the UK should not expect a bespoke arrangement if it sought to rejoin the bloc.

Sandro Gozi, a former Italian Europe minister and current MEP, said any future UK application would have to address the issues expected of any candidate country. The report said this could include questions around the euro, Schengen and the absence of the budget rebate the UK previously secured as a member state.

The issue has re-emerged after Wes Streeting (in photo) made pro-European arguments in his first speech from the back benches and Andy Burnham distanced himself from previous comments about reversing Brexit as he seeks support in Makerfield. Starmer has also suggested that rejoining the EU could be discussed years in the future, while maintaining that it is not the Government’s current policy.

STORY

A proposed rescue deal for Thames Water has reportedly been affected by political uncertainty around the future of the Government. The Guardian reported that ministers have been negotiating with a consortium of creditors led by Elliott Management over a possible takeover deal for the heavily indebted water company.

Government sources told the newspaper that the talks had run into difficulties partly because of uncertainty over whether Keir Starmer would remain Prime Minister. The report said some potential investors were concerned that Andy Burnham, if he eventually entered Downing Street, could take a more interventionist approach to utilities and public ownership.

A Government spokesperson said ministers would act in the national interest and that Thames Water remained financially stable, while the Government remained ready for all eventualities, including special administration if necessary. Thames Water has been attempting to avoid financial collapse after building up debts of more than £17 billion.

STORY

Andy Burnham has emerged as the clear favourite among Labour members in a poll on a possible future leadership contest. Sky News reported that a YouGov survey of Labour members placed the Greater Manchester mayor on 47% as first-choice candidate, ahead of Keir Starmer on 31%.

The poll was published as Burnham seeks to return to Parliament through the Makerfield by-election, although he has not yet been selected as Labour’s candidate. The by-election was triggered after Labour MP Josh Simons announced his intention to stand down, creating a possible route back to Westminster for the former cabinet minister.

The survey found Wes Streeting, who resigned as health secretary last week and said he would stand in any leadership race, on 4% as first choice. Starmer has continued to insist that he wants to lead Labour into the next general election, while allies have said the party should focus on governing rather than internal speculation.

STORY

UK employers cut hiring and posted fewer vacancies in April, according to official data that added to pressure on the Government over the state of the economy. Reuters reported that early payroll figures from HM Revenue and Customs showed a fall of 100,000 employees between March and April, the largest monthly drop since the early stages of the pandemic, though the Office for National Statistics said the estimate was likely to be revised.

The unemployment rate rose to 5.0% in the three months to March, while vacancies fell to their lowest level since early 2021. The ONS said lower-paying sectors including hospitality and retail had seen some of the largest falls in payroll numbers and vacancies over the latest period and across the year.

The figures come as ministers seek to demonstrate that the Government can deliver growth despite domestic political pressure and international economic uncertainty. Employers have warned that higher labour costs and employment law changes are affecting hiring plans, while the Government argues that its wider economic programme is designed to support investment and living standards.

STORY

Severn Trent has become the latest major employer to back the Government’s Youth Guarantee, pledging to create 400 employment opportunities for young people across the East and West Midlands. The Department for Work and Pensions said the roles would be created over three years and would include six-month paid work placements across the water industry.

The Government said 25 of the opportunities each year would be ringfenced for young people with experience of being in care. The scheme is intended to support 16 to 24-year-olds into work or training and forms part of a wider package of employment and skills measures.

Skills Minister Baroness Jacqui Smith (in photo) visited Severn Trent’s training academy in Coventry to mark the announcement. Ministers said the partnership would also help address skills shortages in the water sector, where the Government said 35% of skilled jobs were currently going unfilled.

STORY

The Pensions Commission has warned that 15 million people in the UK are currently undersaving for retirement, with the number potentially rising to 19 million without action. Its interim report said low and middle earners, self-employed workers and women were among the groups most at risk of inadequate retirement income.

The Commission said automatic enrolment had brought millions more people into workplace pension saving, but that the system remained unfinished. It found that 45% of working-age adults were not saving into a pension at all, despite many being in work, and that only a small proportion of wholly self-employed people were saving for retirement.

Pensions Minister Torsten Bell said Britain had got back into the pension saving habit but that tomorrow’s pensioners were still on track to be poorer than today’s. The Commission will take evidence over the next year before publishing final recommendations in early 2027.

STORY

The Government has introduced the Small Business Protections Bill as part of a new drive to tackle late payments to smaller firms. Ministers said the legislation would create the toughest late payment regime in the G7 and give small businesses greater certainty over the money they are owed.

The Bill includes a 60-day cap on payment terms for large firms paying smaller suppliers, mandatory interest on late payments and measures to ban retentions in construction contracts. The Small Business Commissioner would also receive stronger powers to investigate poor payment practices, adjudicate disputes and impose fines on persistent late payers.

Prime Minister Keir Starmer said small businesses were the backbone of the economy and should not be forced to spend time chasing unpaid invoices. Business Secretary Peter Kyle said late payments were costing the UK economy £11 billion a year and damaging growth, jobs and business confidence.

STORY

Ryan Edwards has been ordered to carry out 300 hours of unpaid work and pay compensation after vandalising flowers and tributes left for two teenagers who died in a crash in Hampshire. ITV News reported that Edwards, 18, of Fox Close in Warsash, was filmed kicking and trampling on memorial flowers placed at the scene in Corhampton where Mason Renhard, 17, and Damien Dean, 16, died in July 2025.

The memorial had been created after the two teenagers died when a grey Hyundai i20 collided with a tree on Corhampton Lane. Hampshire and Isle of Wight Constabulary said police were called at 2.47am on Sunday 13 July 2025 and that Damien, from Denmead, was the driver and Mason, from Eastleigh, was the passenger.

STORY

Fallon Wilkinson has been appointed as a new member of the Committee on Fuel Poverty for a three-year term. The Committee said Wilkinson joined on 13 April 2026 and will serve alongside existing recent appointees Professor Richard Fitton and Ross Armstrong. The appointments follow the departure of Anu Singh and Liz Bissett at the end of their terms.

The Committee on Fuel Poverty is an expert advisory body which advises on the effectiveness of policies designed to reduce fuel poverty. It also encourages co-ordination between organisations working in the area and monitors the Government’s progress on its Fuel Poverty Strategy. Its current annual research project is focused on the lived experience of fuel poor homes which have a heat pump.

Wilkinson has worked in the water retail sector for more than a decade and currently leads regulation and compliance at Water Plus. She is also chair of the national Retailer Wholesaler Group and has previously worked on energy market reform, energy efficiency, housing and local government policy. The Committee said she also brings experience of work with vulnerable groups, including as a board adviser at I Have a Voice CIC.

STORY

The International Monetary Fund has raised its forecast for UK economic growth this year and backed Rachel Reeves’s approach to the public finances. In its latest assessment, the IMF increased its 2026 UK growth forecast from 0.8% to 1.0%, citing stronger than expected economic data and a solid performance in the first quarter of the year.

The Fund said the Government should continue with its deficit reduction plans, while recognising the need to support growth. The assessment gives the Chancellor a boost at a difficult political moment, with the Government facing pressure over borrowing costs, the cost of living and wider uncertainty linked to the conflict in the Middle East. Reuters reported that Reeves said the IMF’s support showed the Government’s strategy was working and warned against putting economic progress at risk.

The IMF also warned that the UK still faces significant risks, including high energy prices, inflationary pressure and political instability. It said inflation could rise to just under 4% by the end of the year before returning to the Bank of England’s 2% target in 2027, provided energy prices stabilise. The Fund urged ministers to avoid unfunded or broad-based support measures, saying any help with living costs should be temporary, targeted and affordable.