Starmer refuses to rule out raising income tax in budget
Keir Starmer has fuelled speculation that Labour may raise income tax in the autumn budget after refusing to reaffirm the party’s election pledge not to increase income tax, national insurance or VAT. Questioned in the Commons, he cited bleak new productivity forecasts from the Office for Budget Responsibility, which have deepened the £20 billion gap facing Rachel Reeves. Treasury officials are modelling options including a 1p or 2p rise in the basic rate of income tax, possibly offset by cuts to national insurance, to raise up to £8 billion annually. Reeves is also considering freezing tax thresholds, potentially drawing more workers into higher bands, and reviewing the windfall profits levy on oil and gas firms to encourage new investment. Starmer, while claiming there would be 'no return to austerity', said the poor fiscal inheritance from the previous government demanded 'difficult choices’. Critics accused Labour of preparing tax rises because it cannot control spending, while supporters argue that fair reform is needed to restore economic stability. See also
Farage overtakes Starmer in poll on who would make better PM
A new poll has placed Reform UK leader Nigel Farage ahead of Keir Starmer as the public’s preferred choice for prime minister - the first time he has led in such polling. The survey, conducted from 10 to 13 October among 1,141 people, found 33% favoured Farage and 30% Starmer, while 29% were undecided. Ipsos’s Keiran Pedley said the result marks 'an intriguing shift' in the political landscape, with growing public confidence in Reform’s economic and immigration policies - issues Britons see as most important. Separate YouGov research also shows Labour’s support slipping to a record low of 17%, tied with the Conservatives, while Reform leads with 27%. The Greens have 16% and the Liberal Democrats 15%. Farage’s growing appeal, fuelled by dissatisfaction with both major parties, signals rising volatility in UK politics. Pressure is mounting pressure on Labour ahead of the autumn budget and next year’s local and national elections.
No 'golden ticket' for refugees, says Starmer
Keir Starmer will announce major asylum policy reforms at a European summit in Copenhagen. Refugees granted asylum in the UK will no longer automatically receive settlement or family reunion rights, ending a longstanding route suspended in September. Previously, asylum-seekers could sponsor immediate family without meeting visa, income, or language requirements. Under the new policy, gaining indefinite leave to remain will take longer than the current five years, with a new benchmark of around ten years, though timescales may vary depending on individual contribution to UK society. Starmer insists settlement must be 'earned' and not seen as a 'golden ticket’. Along with these changes, the UK will partner with Denmark, investing £3m to address migration causes in the Western Balkans and encourage local job creation. Starmer argues the reforms will deter small boat crossings while still allowing sanctuary for genuine refugees. Critics fear the changes risk undermining family unity for those fleeing persecution. See
Andy Burnham warns UK needs 'wholesale change'
Greater Manchester mayor Andy Burnham has urged the Labour Party to pursue 'wholesale change' to confront what he described as an 'existential threat' to Britain. Speaking ahead of Labour’s annual conference in Liverpool, Burnham criticised the party’s leadership style under Keir Starmer as 'factional and divisive’. Though often tipped as a future leader, he insisted he was not plotting an immediate return to Westminster, but challenged Labour to present a clear plan to 'turn the country around’. He said he was willing to work with anyone serious about radical reform, citing his efforts to re-nationalise Manchester’s bus network as an example, and suggesting that core services such as housing, energy, water, and rail should return to public ownership. His intervention comes amid political turbulence for Starmer, following Angela Rayner’s resignation over tax errors, the sacking of Peter Mandelson for links to Jeffrey Epstein, and the departure of a senior aide over offensive leaked messages.
Trump meets Starmer as £150bn US investment is announced
Donald Trump has met Keir Starmer at Chequers during his second state visit to the UK, following the announcement of £150 billion in American investment. The funds, pledged by major firms including Blackstone, Prologis, and Palantir, are expected to create around 7,600 jobs across Britain. The leaders are set to sign a 'technology prosperity deal' to boost UK artificial intelligence development, while also discussing trade, investment, and foreign policy. The talks come after a Windsor Castle state banquet, where both Trump and the King hailed the 'special relationship' between the UK and US. While Starmer hopes to spotlight renewed transatlantic ties and economic opportunity, both governments face awkward questions, including ongoing controversies linked to Jeffrey Epstein and differing positions on Israel. Chancellor Rachel Reeves will also host a Downing Street reception for US and UK business leaders to showcase deeper cooperation. The visit marks a significant moment for strengthening economic and diplomatic bonds between the two nations.
No food trade deal until we get youth mobility, EU tells Starmer
Brussels has warned that no deal on easing border checks for UK food imports will be reached unless Britain agrees to expand youth mobility schemes. The proposed sanitary and phytosanitary (SPS) agreement - central to Labour’s plan to reduce food costs by 2027 - would align rules on plants, animals, and food products, cutting supermarket prices and border delays. But EU negotiators insist progress depends on allowing more young Europeans aged 18 to 30 to live and work in the UK. Cabinet office minister Nick Thomas-Symonds pressed for urgency during talks in Brussels, stressing the need for relief as food inflation has risen for five consecutive months, with key staples up 5.1% annually. European diplomats, however, argue the SPS deal is more important for Britain than the EU. Meanwhile, UK firms face possible exclusion from bidding on EU defence projects worth €150 billion unless terms are finalised soon, with France resisting UK involvement. The Government faces mounting pressure as household food costs continue to climb.
Two candidates left for Labour deputy leadership
The Labour Party’s deputy leadership contest is narrowing to a likely two-horse race between Bridget Phillipson and Lucy Powell. Education secretary Phillipson became the first candidate to secure the required 80 nominations, with 116 backers including three cabinet ministers. She has emphasised immigration and border security as key concerns for voters, particularly in constituencies vulnerable to Reform UK advances. She highlighted her record of defeating populist opponents and promised to 'give hope' by tackling small boat crossings and improving public services. Powell, with 77 nominations, has drawn support from left-leaning MPs, presenting herself as more available for campaigning than a serving minister. Other contenders failed to gain sufficient momentum. While critics fear Phillipson may be seen as a Downing Street-backed 'coronation' candidate, her supporters argue she represents unity and strength. Meanwhile, Keir Starmer faces further scrutiny over his political judgment after he sacked Lord Mandelson as British ambassador to the USA, following the publication of email messages to Jeffrey Epstein. See
Rayner admits underpaying tax on Hove flat, but PM backs her
Deputy prime minister Angela Rayner has admitted underpaying stamp duty on her £800,000 flat in Hove, blaming reliance on flawed legal advice. The property purchase in May was part-funded by selling her stake in a Greater Manchester family home, which had been placed in trust to support her disabled son. Fresh advice later revealed that complexities in the trust meant she should have paid the higher rate reserved for second homes. Rayner has now alerted HMRC, pledged to pay the outstanding tax, and referred herself to the prime minister’s standards adviser for investigation. Sir Keir Starmer defended his deputy, praising her transparency and family priorities, while critics - led by Conservative leader Kemi Badenoch - argued her position was untenable. The case presents political difficulties for Labour, as Rayner previously criticised Conservative ministers over integrity issues. While some voiced sympathy for her circumstances, many continue to press for her removal. Downing Street has confirmed that an independent inquiry will now examine the matter.
Migrant boat crossings: France and UK aiming to curb the flow
Emmanuel Macron and Keir Starmer are engaged in critical talks aimed at curbing illegal Channel crossings in small boats. During Macron’s historic state visit to the UK, the first by a French president since 2008, the two leaders are negotiating enhanced border enforcement, including a ‘one in, one out’ migrant returns deal. The plan would allow the UK to return asylum seekers to France in exchange for accepting migrants with family ties in Britain. Macron stressed the importance of EU-level cooperation and reaffirmed the shared responsibility to combat irregular migration with humanity and fairness. Talks also include expanding French police powers to stop boats in shallow waters - a shift already showing signs of implementation. Despite optimism, challenges remain, including opposition from some EU countries. Small boat arrivals in the UK reached a record high in the first half of 2025, which underscores the urgency of finding ways of curbing the flow. Both nations hope for tangible progress in their joint response to people-smuggling networks.
Borrowing costs jump and pound falls on Chancellor's tears
Financial markets reacted sharply this week after Rachel Reeves appeared tearful during Prime Minister’s Questions, after the Government’s sudden U-turn on welfare reforms. Sterling fell by 1% against the dollar, while UK borrowing costs surged in one of the largest single-day moves since the market turmoil following Liz Truss’s 2022 mini-budget. The welfare reversal has left an almost £5 billion gap in Reeves’s fiscal plans, prompting investor concerns about how the Government will balance the books. While Downing Street insisted Reeves retains Starmer’s full support, analysts say the episode highlights market anxiety over potential leadership instability and future fiscal policy. Speculation mounted about possible tax rises in the autumn, though ministers reiterated pledges not to increase income tax, VAT, or National Insurance. Despite the turbulence, experts noted that markets are not as fragile as during the 2022 crisis.
