18 h. ago Reeves should bend fiscal rules and borrow to fund defence, says Labour grandee

The current military threat in Europe demands Britain and its allies do whatever is needed to restore security, said Lord Hain.

Politics

20 h. ago Reeves will not raise taxes in Spring Statement, say officials

Chancellor will rely on a spending squeeze to try to ensure she complies with her fiscal rules

Politics

57 h. ago Call it a defence levy or even a patriot tax – but Labour is going to have to raise taxes, fast | Gaby Hinsliff

The world has shifted and defence spending has to rise. But time is running out for the government to make a case for itFive years ago this weekend, life as we knew it was suspended overnight. Though with hindsight it seems amazing that it took Britain so long to lock down in the face of a gathering pandemic, at the time the pace of events felt dizzyingly fast.It took a still-young government time to realise its manifesto was toast; that it would be forced into decisions either it or the public hated, which would nonetheless beat the alternative. The new chancellor, Rishi Sunak, was visibly reluctant to rip up a budget whose ink was barely dry and instead spend billions paying people not to go to work. Yet ironically, it is furlough for which history may remember him most kindly.Gaby Hinsliff is a Guardian columnist Continue reading...

Politics

3 d. ago Chancellor should raise taxes not cut spending to meet fiscal rules – think tank

Rachel Reeves faces a challenge to meet her fiscal rules amid faltering growth and higher borrowing costs.

Economics

7 d. ago Merz presses Greens to name their terms for German defence spending rise

‘What more do you want from us?’ asks chancellor-in-waiting as he seeks urgent support for fiscal rule changesGermany’s chancellor-in-waiting has tried to win over the Greens to his ambitious but controversial plans to raise the country’s defence spending, promising to expand the scope of the plans and demanding of them: “What more do you actually want from us?”The outgoing parliament met on Thursday to debate the creation of a €500bn (£420bn) fund for infrastructure investment and radical changes in Germany’s borrowing limits in order to boost defence spending. Continue reading...

Politics

7 d. ago Starmer faces down calls to change UK fiscal rules to avoid welfare cuts

Increasing number of Labour MPs are calling for tweaks to Rachel Reeves’ financial constraints

Politics

7 d. ago Merz makes offer to Greens as he seeks to increase German defence spending

Chancellor-in-waiting attempting to garner support for fiscal rule changes before new parliament convenesGermany’s would-be chancellor has attempted to win the support of the Greens for his proposed fiscal rule changes, offering to expand the scope of defence spending and demanding to know: “What more do you want from us?” The outgoing parliament is meeting to debate the creation of a €500bn (£420bn) fund for infrastructure investment and radical changes in Germany’s borrowing limits in order to boost defence spending. Continue reading...

Politics

7 d. ago Labour councils end investments in UK defence firms to win pro

Labour and Liberal Democrat councillors in Dudley, in the West Midlands, were the latest to vote to divest their pension funds from British defence companies.

Economics

1 week ago Government verdict on UK conscription as 'defences step up for new reality'

Intergovernmental Relations Minister Pat McFadden addressed the conscription issue after Labour announced major spending increases to the defence budget as the world gets more dangerous

Politics

2 w. ago Labour MPs urge British banks and fund managers to no longer class defence investments as 'unethical' as they bid to boost support for Ukraine

In an open letter, the group of parliamentarians demanded a 'rethink' of environmental, social and governance (ESG) frameworks for investing.

Economics

2 w. ago Labour MPs and peers urge banks to view UK defence investments as ethical

An open letter called for financial institutions to ‘rethink’ environment, social and governance requirements that often exclude defence investment.

Economics

2 w. ago FTSE 100 lags behind Europe after Germany outlines ‘seismic’ spending surge

European markets rose sharply after Germany announced a historic change to its fiscal rules to spend heavily on defence and infrastructure.

Politics

2 w. ago Starmer faces growing concerns from MPs over ‘brutal’ cuts to foreign aid budget

Sir Keir Starmer is facing increasing pressure from MPs over his decision to cut the overseas aid budget to fund an increase in defence spending

Politics

2 w. ago Defence spending 'must revive UK manufacturing': Government is urged to buy British in military push

Labour has been urged to use an increase in defence spending to boost UK industry - as governments across Europe face up to the need to rearm.

Economics

2 w. ago Brits back slashing aid to boost defence spending by 65% to 20% despite Labour backlash

YouGov research found that 65 per cent agree with the government's decision to fund the bump by trimming £6billion from aid by 2027.

Politics

2 w. ago Keir Starmer faces backbench rebellion over ‘shortsighted’ cuts to aid budget

MPs ask ‘what will be left of Labour programme?’ amid calls for rethink and plan to speak out against decisionLabour MP Emily Darlington: ‘International aid is as vital as defence spending – cutting either undermines British security’Keir Starmer is facing a backbench revolt by Labour MPs this week as anger mounts over the government’s decision to cut the international development budget by almost half in order to pay for an increase in defence spending.The Labour chair of the all-party select committee on international development, Sarah Champion, who has already called on the government to rethink the decision, has secured a debate in the Commons on Wednesday at which dozens of Labour backbenchers are considering intervening to express their dismay. Continue reading...

Politics

2 w. ago Blow for Keir Starmer as senior Labour minister quits over aid cut to fund defence

Anneliese Dodds said she knew there were no “easy paths” to increase defence spending

Politics

2 w. ago Anneliese Dodds resigns over Keir Starmer’s decision to cut aid budget

Exclusive: International development minister warns it will be ‘impossible’ to retain funding in Gaza, Sudan and UkraineAnneliese Dodds: soft left intellectual pushed to resign over Starmer’s slide rightUK politics live – latest updatesAnneliese Dodds, the international development minister, has quit her post over Keir Starmer’s decision to slash the international aid budget by almost half to pay for a generational increase in defence spending.The senior Labour MP, who attended cabinet, warned that the UK pulling back from development would bolster Russia, which has already been aggressively increasing its presence worldwide, as well as encouraging China’s attempts to rewrite global rules. Continue reading...

Politics

2 w. ago Labour overtakes Reform after Starmer’s defence spending boost, latest poll reveals

Labour retakes the lead in weekly tracker poll during a crucial week form Keir Starmer

Politics

3 w. ago Labour MPs hammer Defence Secretary John Healey on foreign aid cuts at bruising meeting as he vows withdrawal of cash will be slow

A group of a dozen Labour MPs - mostly with backgrounds in development - led a backlash against the plans in the meeting with Defence Secretary John Healy.

Economics