Tag: News Story

STORY

Andy Burnham has launched his campaign for the Makerfield by-election, saying the contest should be used to send a message that Labour needs to change. The Greater Manchester Mayor is seeking to return to the House of Commons after being selected as Labour’s candidate for the seat.

The Guardian reported that Burnham used the campaign launch to set out positions on housing, immigration, the economy and electoral reform. He said the by-election was not about returning to Westminster for its own sake, but about changing the direction of politics and reconnecting Labour with communities that had lost confidence in the party.

The by-election follows the resignation of Josh Simons, who stepped down as MP to allow Burnham to stand. The contest is expected to be closely watched because of Labour’s internal tensions and the challenge from Reform UK in a seat Labour has historically held.

STORY

Keir Starmer’s Government is facing continuing political pressure over the cost of living, with households still affected by high prices, mortgage costs and weak real wage growth. Reuters reported that the Prime Minister’s early hopes of securing public confidence through economic competence have been undermined by persistent financial strain on voters.

The Government has announced targeted support measures, including help with transport costs and changes to energy bill pressures, but ministers face concern that the public may not feel a significant improvement before the next election. Labour’s poll ratings have fallen sharply since its 2024 general election victory, adding to wider questions over the Government’s political position.

Reeves has argued that stability and investment remain central to the Government’s economic strategy. However, the cost of living remains one of the most difficult political issues facing ministers, with inflation, fuel prices and slow productivity continuing to affect household finances.

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Government borrowing was higher than expected in April, adding pressure on Chancellor Rachel Reeves (in photo) as ministers seek to maintain control of the public finances. The Office for National Statistics said public sector net borrowing was £24.3 billion in April, above forecasts and higher than the same month last year.

The increase reflected higher spending on debt interest, benefits and pensions, alongside the wider impact of inflation on departmental budgets. Reuters reported that the figure was £3.4 billion above the level expected by economists polled by the news agency, underlining the challenge facing the Treasury as it seeks to meet its fiscal rules.

The figures come shortly after the International Monetary Fund raised its UK growth forecast but warned that the Government should avoid unfunded measures. Reeves has said the Government will continue to focus on economic stability, investment and reducing borrowing over time.

STORY

British companies have reported their most widespread fall in activity for more than a year, according to survey data cited by Reuters. The report said business activity had been hit by the economic effects of the Iran war and by political uncertainty in the UK.

The Guardian reported that the S&P Global purchasing managers’ index fell to 48.5 in May, below the 50 mark that separates growth from contraction and below economists’ expectations. The figures suggested pressure in the services sector, alongside a wider weakening in business confidence.

The data adds to pressure on ministers as they try to manage inflation, energy costs and uncertainty over the public finances. The Government has announced targeted cost of living and industrial support measures, but economists and businesses have warned that geopolitical instability could continue to affect prices, investment and consumer demand.

STORY

The Medicines and Healthcare products Regulatory Agency has launched a consultation on a proposed framework intended to make it quicker and less costly to develop therapies for rare diseases. The regulator said the new approach could help patients with rare conditions access treatments earlier where conventional development routes are difficult.

The proposed Rare Disease Therapies Regulatory Framework includes plans for an Investigational Marketing Authorisation and compressed development pathways. The MHRA said the framework is designed to address scientific, evidentiary and commercial barriers that can prevent rare disease therapies from reaching patients.

The Government said rare diseases affect up to 3.5 million people in the UK. The consultation will allow the pharmaceutical and life sciences sectors, patient groups and other stakeholders to comment before the framework is finalised.

STORY

The UK has announced up to £20 million in new funding to help contain an Ebola outbreak in eastern Democratic Republic of the Congo. The Foreign, Commonwealth and Development Office said the funding would support the World Health Organisation, UN agencies, international partners and NGOs responding to the outbreak.

The funding is intended to strengthen disease surveillance, support frontline health workers, improve infection prevention and control and help affected communities access care. The Government said most confirmed cases are in the Ituri region, an area already facing serious humanitarian and security challenges.

Foreign Secretary Yvette Cooper and the Health Secretary chaired a cross-government meeting to coordinate the UK response, including work to protect British nationals overseas. Ministers said the UK was also working with authorities in DRC and Uganda, the WHO and international partners on vaccines, treatments and diagnostics.

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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.

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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.

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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.