President Donald Trump’s decision to slap a 25 per cent import tax on cars is “very concerning” but the UK will not be “jumping into a trade war” with America, Sir Keir Starmer has said.
The tariff on vehicles imported to the US will come into effect next Wednesday in a blow to the UK automotive industry.
The prime minister said the UK would continue “intense discussions” with the US on closer trade ties, including measures to ease tariffs, but stressed that all options remained on the table if talks failed.
At a press conference in Paris, Sir Keir said: “I think tariffs are very concerning, there’s no doubt about that.
“And I’m really clear in my mind that the sector, the industry, does not want a trade war.
“That’s why, first and foremost, we’ve got to work with the sector, work with industry, in our response in relation to this.”
He added: “But look, we always have to put the national interest first and that’s why I’ve also been clear that as we’ve engaged in those negotiations, those discussions, we will keep all options on the table.”
Trump announces 25% tariffs on vehicle imports in fresh blow to Reeves
Spring statement 2025 summary: Key takeaways from benefit cuts to tax crackdowns
Reeves’ benefit cuts to plunge 250,000 people into poverty, government admits
Tax calculator: See how Rachel Reeves’ spring statement will affect you
Spring Statement latest news
- Wealthy and pensioners at risk of new tax raid in autumn Budget, experts warn
- Starmer says all options 'on the table' in response to Trump's latest tariffs
- Starmer refuses to rule out further tax rises in October budget
- Starmer backs Reeves’ claim welfare reforms won’t push people into poverty
- 'Russia is filibustering': Starmer calls for Ukraine peace talks deadline
Badenoch: Reeves' smoke and mirrors has failed
14:55 , Jabed AhmedRachel Reeves’ smoke and mirrors have failed. Everyone can see this chaotic emergency budget for what it is👇 pic.twitter.com/Zf2VD9vPGt
— Kemi Badenoch (@KemiBadenoch) March 27, 2025
Starmer refuses to rule out further tax rises
14:46 , Jabed AhmedSir Keir Starmer said the decision not to increase tax at the spring statement “indicates the mindset” of the government when asked if there would be hikes in the autumn.
The prime minister declined to explicitly rule out the prospect of tax rises in the budget later this year, but said ministers had “kept good” to manifesto promises not to raise certain taxes.
He said: “The first thing to say is we haven’t raised tax in the spring statement, and I think at every press conference I did before yesterday, the challenge to me was, ‘you’re going to have to raise taxes in the spring statement, aren’t you?’
“And I said ‘wait ’til the spring statement’, we got the spring statement and we haven’t (raised taxes).
“What we’ve done is build on the stability that we need and to go further and faster on security and growth in what is undoubtedly a changed world.
“We did have manifesto commitments in relation to tax and what taxes we wouldn’t raise, and we kept good to those promises.
“Obviously, I’m not going to write future budgets – every prime minister and chancellor from every government always takes that position.
“But if you look at the pattern, if you like, or the intent for both the budget and the spring statement, you’ll see that when it comes to the decisions we’ve had to make, we have not taken the decision to increase tax, and I think that indicates the mindset that we bring to this.”
Starmer says all options 'on the table' in response to Trump's latest tariffs
14:42 , Jabed AhmedAll options remain “on the table” for responding to tariffs, the Prime Minister has said in response to Donald Trump’s announcement of new levies on cars.
Sir Keir Starmer told a press conference in Paris: “Tariffs are very concerning, there’s no doubt about that, and I’m very clear in my mind that the sector, the industry doesn’t want a trade war.
“And that’s why first and foremost we have got to work with the sector, work with the industry in our response to this.
“I think we need to keep, as ever, pragmatic and clear-eyed. We are engaged, as you know, in intense discussions with the US on economic arrangements on a number of fronts, but including to mitigate tariffs, and we will continue in that way because I think that rather than jumping into a trade war it is better pragmatically to come to an agreed way forward on this, if we can, and that’s why we’re intensely engaging in the way that we are.
“But look, we always have to put the national interest first and that’s why I’ve also been clear that as we’ve engaged in those negotiations, those discussions, we will keep all options on the table.
“The industry doesn’t want a trade war, but it’s important we keep all options on the table.
“But I’m working hard with others to make progress on economic arrangements which I hope will better serve our country than a trade war which will not in my view.”
Comment | Labour’s big betrayal: This war on the poor will backfire badly – not least among its own MPs
14:39 , Jabed AhmedOur chief political commentator John Rentoul writes:
Labour’s war on the poor will backfire badly – not least among its MPs
'Russia is filibustering': Starmer calls for Ukraine peace talks deadline
14:30 , Jabed AhmedSir Keir Starmer has accused Vladimir Putin of “filibustering” to delay Donald Trump’s peace talks.
He said: “They are playing games, and they’re playing for time. It is a classic from the Putin playbook.”
The prime minister said allies in Paris agreed “we should be setting a framework and a deadline of delivering real progress, and that we should hold them to that deadline”.
He added: “We’ve agreed that we must go further now to support the peace process, support Ukraine and increase the pressure on Russia to get serious.”
Defence secretary John Healey will chair the next Ukraine contact group meeting on 11 April to deliver “more military aid and keep Ukraine in the fight because peace comes through strength”.
The prime minister said allies had agreed to increase sanctions and bring Russia to the table “in days and weeks, not months and months”. He warned: “We are in the mood for deadlines.”
Sir Keir said the allies discussed a “full or partial ceasefire” leading to a “just and lasting peace”. He added: “That remains our shared goal.”
The UK, French and German chiefs of defence will meet in Ukraine to discuss support for Kyiv. Sir Keir said: “The coalition of the willing is stronger and broader than it’s ever been.”
He added: “This will require the engagement and support of the United States,” but insisted allies are “more resolute today” than in recent weeks.
Follow our coverage of the Ukraine war below:
Ukraine war latest: British military to head to Kyiv as part of ‘reassurance force’
Labour MP asks if government can ‘find a lost moral compass’ after aid cuts
14:22 , Jabed AhmedA Labour MP has asked if the government can rediscover its moral compass after aid cuts.
Barry Gardiner (Brent West) said he was unhappy aid had been reduced to 0.3% of GDP in order to fund higher defence spending.
Mr Gardiner said: “I was proud to serve in this House when Tony Blair and Gordon Brown established the department for international development and when they established the ‘drop the debt’ campaign.
“I was proud when the leader and I stood on a manifesto which committed us, promised that we would restore the international aid budget to 0.7% of GNI. So could we have a debate please in Government time on how it may be possible to find a lost moral compass.”
Commons leader Lucy Powell said: “We all share the pride that the previous Labour government did in the area of debt reduction and aid for some of the poorest countries across the world. We’re also proud that we have a commitment which remains to returning our aid budget to 0.7% of GDP.”
Ms Powell then referred to the statement to the Commons by Sir Keir Starmer announcing the extra defence spending and aid budget cut. She added: “We remain absolutely committed to returning the aid budget to the 0.7% levels we said.”
Downing Street says government has made ‘generous offer’ to British Steel
14:06 , Jabed AhmedDowning Street said the Government had made a “generous offer” to British Steel.
The Prime Minister’s official spokesman said: “We’ve made a generous offer to British Steel designed to deliver a sustainable future for staff, industry and the local community… we’ve got a two and half billion-pound plan to rebuild the sector.
“We will continue to work with British Steel and with the company’s owners to secure its future and deliver a good outcome.
“But we’ve made that offer and that’s obviously up to the company involved.”
For context,
More than 2,000 jobs at British Steel could be at risk after the company announced it is in talks over the possible closure of furnaces.
British Steel, the second-largest producer in the country, has launched a redundancy consultation on shutting two blast furnaces in Scunthorpe. More than half of the company’s 3,500-strong workforce could potentially be impacted.
The full report below:
Thousands of British Steel jobs at risk after government offer to go green rejected
Downing Street 'disappointed' by US car tariffs and vows to protect national interest
13:48 , Jabed AhmedDowning Street said the UK was “disappointed” by the US decision to impose tariffs on the car industry and would “not hesitate to respond in the national interest”.
But Number 10 said Britain was seeking a “pragmatic approach” with ongoing “productive” discussions about a wider economic deal.
The prime minister’s official spokesman said: “We are obviously disappointed by the US decision to impose global tariffs on the auto industry, and I think, as we said previously, we’ll keep all options on the table and we’ll always take a position that protects the national interest.
“But also as we’ve said we’re taking a pragmatic approach to our discussions with the United States. We continue to have productive discussions on securing a wider economic deal.
“These conversations are ongoing and are going to continue.”
Asked whether the prime minister was worried the UK looked weak, he said: “We’re going to keep all options on the table and will never hesitate to respond in the national interest, but we’re taking a pragmatic approach.”
Starmer backs Reeves’ claim welfare reforms won’t push people into poverty
13:29 , Jabed AhmedSir Keir Starmer agrees with Rachel Reeves’ assertion that the Government’s welfare reforms will not push people into poverty, Downing Street said, despite an impact assessment estimating hundreds of thousands would be.
The Prime Minister’s official spokesman said: “Of course the Prime Minister shares the sentiment the Chancellor expressed this morning.
“The whole point of this Government’s agenda is to boost living standards and get people back to work so that people are less likely to be in poverty.”
Reynolds leaves door open to changes in digital services tax for US deal
13:15 , Jabed AhmedJonathan Reynolds declined to rule out changing or scrapping the digital services tax (DST) in exchange for exemptions from US tariffs, saying the tax was not something that “can never change”.
Asked whether he would rule out scrapping the tax on tech firms, the Trade Secretary said: “Tech companies paying a fair amount of tax in the UK is something that is incredibly important to us, and I think the British people.
“You will know that DST was introduced as a temporary measure in lieu of an international agreement.”
He added: “We have always been of the view as a country that this has to be something ideally agreed on an international basis, but it’s not that DST has been put in place as something that can never change or we can never have a conversation about it.
“So we are both committed to making sure tech companies pay a fair amount of tax in the UK, for their economic activity in the UK, but we understand the US has cited, as it has to countries around the world, concerns about the specific structure of that.
“So in terms of this conversation, they will want to talk to us about that, it’s not a major part of the conversation though I understand it’s obviously newsworthy given the prominence of all tech companies in our lives, but let’s remember what is our objective as a country here, it’s that fair rate of tax.
“But we have always been willing, the whole point of this was to do that on an international basis.”
Full report | Wealthy and pensioners at risk of new tax raid in autumn Budget, experts warn
13:09 , Jabed AhmedOur Whitehall Editor Kate Devlin reports:
Wealthy and pensioners at risk of new tax raid in autumn Budget, experts warn
Comment | Why Keir Starmer is more like Clement Attlee than you think
12:29 , Jabed Ahmed
Pensioners and wealthy at risk of tax raid in Budget, IFS warns
12:19 , Kate DevlinPensioners and wealthy could be at risk of another tax raid by Rachel Reeves in October, the highly-respected Institute for Fiscal Studies (IFS) think tank has warned.
Paul Johnson, the director of the IFS, said he was concerned pensions could be targeted because it “looks like a juicy place to go for a lot of money”.
At a briefing on Ms Reeves’ spring statement, he warned that it was a “risky and changing -US cars showed that “all too well”.
He added: “There is a good chance that economic and fiscal forecasts will deteriorate significantly between now and an Autumn Budget.
“If so, she will need to come back for more; which will likely mean raising taxes even further.
“That risks months of speculation over what those tax rises might be – a raid on pensions, a wealth tax on the richest, another hike to capital gains tax?”
He also warned that “mere speculation about increases can cause economic harm. With no sense of a tax strategy, we have no idea which way the Chancellor might turn”.
Ask political columnist Andrew Grice anything on Rachel Reeves’ spring budget
11:59 , Jabed AhmedThe Independent’s political commentator Andrew Grice is here to answer your questions about Rachel Reeves’ spring statement and its potential impact on the economy
Register to submit your question in the comments box under the article below. If you’re not already a member, click “sign up” in the comments section to leave your question. For a full guide on how to comment click here.
Don’t worry if you can’t see your question – they may be hidden until he joins the conversation to answer them. Then join him live on this page at 3pm as he tackles as many questions as he can.
Q&A: Ask our political columnist anything on Reeves’ spring budget
Reynolds calls for 'cool heads' over latest Trump tariffs
11:55 , Jabed AhmedBusiness Secretary Jonathan Reynolds has said it is a time for “cool heads” as the UK engages with the US over tariff plans despite holding a “different set of views” on trade policy.
“With the US, we’ve said that obviously we have a different set of views to where they’re coming from… you can understand and engage with that even if you don’t necessarily agree with it,” Mr Reynolds told a conference held by think tank Chatham House.
Decisions in the US come from a “belief on their side that it hasn’t got the right tools to deal with particularly overcapacity, and overproduction in some key sectors”, he said.
“This is a time for cool heads and pragmatism and this is how we’re approaching these things.”
The minister admitted that there were “concerns and tensions”, but also said that “the basis of a UK trade strategy has got to be in the UK’s national interest”, adding: “I can’t fight battles for other countries.”
Kruger accuses chancellor of rushing welfare cuts after economic crash
11:51 , Jabed AhmedShadow work and pensions minister Danny Kruger accused the chancellor of creating welfare policy in a “rush” because she “crashed the economy”.
Speaking from the Conservative frontbench, he added: “So they’ve had an emergency budget with cuts to benefits for disabled people. Perhaps, if they weren’t in such a rush, they’d have realised that these crude reforms also impact carers – 150,000 people, who gave up income to look after a loved one, rely on carers allowance to make ends meet, and are now going to lose it.
“So they are balancing the books on the backs of the people least able to take the weight, and that’s Labour, making other people pay for the fiasco of their budget.
“First they came for the farmers, then they came for the pensioners, and now it’s the carers, the most important people in our society doing the most important job a human being can do, not for the money, but for the love. And it’s the least the Government can do to give them our support. It’s what we did in government, so why won’t they?
“Can the minister confirm whether carers allowance was a deliberate target of their reforms, or did they not realise the impact of what they were doing to Pip because of the rush they were in?”
In his response, work and pensions minister Sir Stephen Timms said Mr Kruger’s “outrage” is “a bit inappropriate”, adding: “We are well aware of the impacts this will have, and that is why we are consulting on those transitional arrangements.”
Labour MP urges government to scrap welfare cuts as ministers stand firm
11:47 , Jabed AhmedLabour MP Rachael Maskell has pressed the government to withdraw its cuts to welfare.
The York Central MP said: “Now we’ve had the impact assessment, we’ve seen that nearly 400,000 disabled people are going to be pushed further into poverty, 50,000 of them children, and 150,000 carers are going to lose the lifeline in providing that care. We don’t have a social care system to replace it. Besides, that’s more expensive.
“Today, I just want to speak truth to power, sometimes governments get things wrong, and I ask Government to seriously reflect on these policies. The first half of pathways to work is good, the second half is going to let a lot of people down. Please reflect and please withdraw this policy.”
Work and pensions minister Sir Stephen Timms replied: “I’m grateful to (Ms Maskell), but we won’t be withdrawing. We’ll certainly be reflecting, and we’ll be consulting properly on the content of the green paper.
“The figures that were published by the Office of Budget Responsibility yesterday showed that the benefit changes on their own would take 250,000 people, 200,000 adults below the poverty line, but that is before any consideration of the impact of the big commitment we are making to employment support, up to a billion pounds a year by the end of the parliament, and that will clearly have a very – my view – a very positive effect in reducing poverty.”
“I think the balance of this package will be a very, very positive one for reducing poverty in the UK,” he added.
Reynolds interrupted by protesters over UK’s sale of F35 jet parts to Israel
11:27 , Jabed AhmedTrade Secretary Jonathan Reynolds has been interrupted by pro-Palestinian protesters calling for an end to the sale of F35 jet parts to Israel.
At the start of Mr Reynolds’ appearance at a conference on trade hosted by the think tank Chatham House, a demonstrator shouted: “This man and his Government are complicit in genocide.
“The F35s are massacring Palestinian children. They have not stopped the trade of F35s.”
After the protester was removed from the event, Mr Reynolds said: “We have suspended arms exports to Israel.
“We have not suspended F35s because they are integral to our national security and the defence of Ukraine, and people will know the supply chain for the F35 means they cannot be isolated to one country.
“That decision was laid out very clearly in Parliament, so I’m quite happy if he wants to ask a question rather than jump on stage to have that engagement with him.”
He was then interrupted by another protester waving a Palestinian flag and calling for an end to F35 exports, who was subsequently removed.
Transport secretary: Tories promised rail users ‘the moon on a stick’ with no funds
11:12 , Jabed AhmedTory former ministers promised rail users “the moon on a stick paid for with fantasy money”, Transport Secretary Heidi Alexander has said.
Labour MP for Croydon East, Natasha Irons, said: “The Croydon area remodelling scheme is a plan that provides upgrades to East Croydon and Norwood Junction station in my constituency, and that improves services across the Brighton mainline and most of the south east.
“However, after the previous government withdrew funding for this vital infrastructure project, passengers continue to suffer delays and opportunities for growth across the south east remain untapped. So with the Government’s mission for growth and increased demand for rail services to Gatwick Airport, will she agree to look again at the Croydon area remodelling scheme?”
Ms Alexander said: “I’m sorry to say that the previous government recklessly over-promised on rail infrastructure projects, misleading passengers who have struggled to access the services that they deserve for far too long.
“In fact, I’d go as far as saying that Conservative ministers travelled around the country promising rail users the moon on a stick paid for with fantasy money.
“I would gladly meet with (Ms Irons) to discuss the Croydon area modelling scheme.”
Government claims welfare cuts will be implemented in 'compassionate way'
11:03 , Jabed AhmedThe government has claimed welfare cuts are being implemented in a “compassionate way” and are “definitely not being rushed”.
Liberal Democrat work and pensions spokesman Steve Darling, asking an urgent question on the impact of changes to personal independence payment (Pip) on recipients of carer’s allowance, told the Commons: “Yesterday saw the biggest cuts to carer’s allowance for decades.
“Whilst we need to manage down appropriately the benefits budget, this needs to be done in a way that is caring and compassionate and far from rushed that we saw yesterday. We’re looking at approximately (150,000) carers losing allowances under these proposals, half a billion pounds will be taken away from those who care.”
Mr Darling added it is “inappropriate to compare cuts to PIP to cuts to pocket money” after Treasury minister Darren Jones compared cutting benefits to reducing his children’s pocket money.
Work and pensions minister Sir Stephen Timms replied: “I very much agree with him that this all needs to be done in a managed and compassionate way. That is exactly how we’re doing it.
“I don’t agree with him that it’s being rushed. The changes won’t happen for over 18 months until November 2026, that’s when the change will take effect and they won’t affect current recipients of personal independence payments until their first award review after November 2026 and typically review periods are three years, so this is definitely not being rushed, it’ll happen in a properly planned, staged and careful way.”
Rachel Reeves says she won’t take free concert tickets in future after Sabrina Carpenter row
11:02 , Jabed Ahmed
Rachel Reeves says she won’t take free concert tickets after Sabrina Carpenter row
Scottish Government minister Christina McKelvie dies aged 57
10:52 , Jabed Ahmed
Scottish Government minister Christina McKelvie dies aged 57
Diane Abbott criticises government's welfare cuts
10:49 , Jabed AhmedVeteran left-winger Diane Abbott has criticised the government’s announced cuts to welfare.
Writing on X, the Hackney MP said: “ did not get into politics to make the poorest even poorer, or average households worse off. But that is what is happening.”
I did not get into politics to make the poorest even poorer, or average households worse off. But that is what is happening.
— Diane Abbott (@HackneyAbbott) March 27, 2025
The JRF finds that the average family will now be £750 a year worse off by 2029, vs today.
(credit to @alfie_stirling and @jrf_uk) pic.twitter.com/5EnGnQZCSy
Campaigner warns record child poverty ‘isn’t the change people voted for’
10:34 , Jabed AhmedAn anti-poverty campaigner said the latest DWP child poverty data should be seen as a “stark warning” to the government that action is needed.
They added that record high numbers of children in poverty “isn’t the change people voted for”.
Alison Garnham, chief executive of the Child Poverty Action Group and vice-chairwoman of End Child Poverty, said: “Today’s grim statistics are a stark warning that government’s own commitment to reduce child poverty will crash and burn unless it takes urgent action.
“The Government’s child poverty strategy must invest in children’s life chances, starting by scrapping the two-child limit.
“Record levels of kids living in poverty isn’t the change people voted for.”
Full report | Reeves on a double knife edge as she could be forced to order ‘blockbuster’ tax rises, say experts
10:06 , Jabed Ahmed
Reeves on knife edge as she may have to order ‘blockbuster’ tax rises
Number of UK children living in poverty at record high - official figures show
09:52 , Jabed AhmedThe number of children living in poverty across the UK has reached a new record high, according to figures from the Department for Work & Pensions.
Some 4.45 million children were estimated to be in households in relative low income, after housing costs, in the year to March 2024.
This is up from the previous record of 4.33 million in the 12 months to March 2023.
It is the highest figure since comparable records for the UK began in 2002/03.
A household is considered to be in relative poverty if it is below 60% of the median income after housing costs.
Think tank warns 2020s are a ‘disaster’ for UK living standards
09:50 , Jabed AhmedThe 2020s are shaping up to be a “disaster” for living standards in the UK, according to the Resolution Foundation.
The think tank’s research director James Smith said the current parliament, from 2024-29, was forecast to be the third-worst on record for household disposable incomes.
“We’re basically in a position where the 2020s is now looking like a disaster of a decade, even relative to the two preceding it, in terms of living standards,” he said.
He said “things really get worse” if you focus on the poorest half of the income distribution, who are “basically at recession levels”.
“We project incomes for this group falling about 3% or £500 on average.”
Full report | Rachel Reeves begs Trump not to slap car tariffs on the UK
09:29 , Jabed Ahmed
Reeves vows to never accept free tickets again after Sabrina Carpenter row
09:14 , Jabed AhmedRachel Reeves has said she will not accept free tickets again after a row over her attendance at a Sabrina Carpenter concert.
The Chancellor told ITV’s Good Morning Britain she was given a box at the O2 Arena because of security concerns, adding: “I don’t have any intention of doing this again.
“I thought it was the right decision for my family on that occasion. But I do understand how people feel.”
Asked if this meant she would rule out all freebies in future, the Chancellor replied: “If it’s related to my job and it’s something that I need to do in my job, like I’m going to a formal dinner or a formal event, of course you have to accept hospitality.
“But, look, I went with a family member. I’m not intending to take concert tickets in the future.
“But, you know, it is a balancing act in my job to try and be a good parent, and also do my job, with some of the security challenges that I face in the job now.”
UK in 'intense negotiations with our US counterparts' over tariffs, Reeves says
09:03 , Jabed AhmedThe UK is in “intense negotiations at the moment with our US counterparts” over tariffs, Rachel Reeves told BBC Radio 4’s Today programme.
The talks include “cars and steel and every other type of tariff”, the Chancellor told the broadcaster.
She added: “That’s been ongoing since our Prime Minister, Keir Starmer, went to the White House to meet the US president just a few weeks ago. Those talks continue.”
Asked if the talks could lead to exemption for UK-based car companies, Ms Reeves replied: “Well, that’s what we’re working on. We’ve got a few more days left of those negotiations before these tariffs are due to come in.”
The US is “rightly concerned about countries that run persistent, large trade surpluses with them”, Ms Reeves said, but insisted the UK is “not one of those countries”.
Reeves calls minister ‘clumsy’ for comparing benefits to pocket money
08:55 , Jabed AhmedTreasury minister Darren Jones was “clumsy” in comparing benefits to pocket money, Rachel Reeves has said.
Asked if her deputy was right to make the comparison, the Chancellor told BBC Radio 4’s Today programme: “No, he was clumsy in his analogy, and he’s apologised for that.”
Pressed further on whether it was right to compare benefits with pocket money, she said: “Of course it’s not pocket money.”
The Chancellor added that the Office for Budget Responsibility had not yet scored the impact of the Back to Work programme and said the Government would work with the watchdog to assess the impact of its welfare cuts.
She said: “Far from seeing people lose money, we want people to be better off by having more support to get into work, and, of course, you are less likely to be in poverty, less likely to struggle with the cost of living, if you are in work, and especially if that work pays a decent wage.”
‘At odds with reality’ – British media react to Chancellor’s spring statement
08:45 , Jabed AhmedMedia outlets have roundly condemned Chancellor Rachel Reeves’ spring statement, which cut welfare spending and squeezed Whitehall budgets.
While some warned of further uncertainty, critics accused Ms Reeves of mismanaging public finances, and some warned of a return to austerity.
The Independent’s editorial says: “The case with which Labour built its general election win – that it would fix the foundations of the economy – has been left woefully exposed by the chancellor’s spring statement.”
Our editorial further warns Ms Reeves may have to return to parliament in the autumn with further cuts – or that parliament could become a “constant stream of mini-Budgets” undermining public confidence.
“The danger is that the chancellor will have to return to the Commons again in the summer, for the spending review, and then in the autumn Budget,” it reads.
“Perhaps yet again, in next year’s spring statement, with new proposals for tax rises and cuts to public spending plans.”
The Daily Telegraph is even more damning in its condemnation of the spring statement, accusing Ms Reeves of being “at odds with reality”.
“Rachel Reeves’s Spring Statement exhibited the same wishful thinking that underpinned her calamitous Budget, a Micawberesque hope that ‘something will turn up’ to stimulate growth even though her own policies are largely responsible for thwarting it,” it says.
“Arguably, it was the most disingenuous financial presentation of recent times, making those of Gordon Brown look positively transparent.”
DAILY MAIL: Deluded #TomorrowsPapersToday pic.twitter.com/9AgaPj1EJf
— Alfie Tobutt (@AlfieTobutt) March 26, 2025
Echoing the gloom, The Times writes Downing Street had “little to be cheerful about”.
“Yet real optimism about the UK’s prospects was sadly lacking,” it warns.
“Ms Reeves insisted the world was changing and with it the need to adapt her plans. What she failed to acknowledge was the role she herself has played in Britain’s underperforming economy.”
Thursday's front page: Balancing the books on the backs of the poor https://t.co/VyaBMyoVO4#TomorrowsPapersToday pic.twitter.com/NfVyXTEtme
— The Mirror (@DailyMirror) March 26, 2025
UK and US must strike up a trade deal, Stride says
08:14 , Jabed AhmedThe UK needs to ensure it has the “right relationship” with the US and to put a trade deal in place to ensure it is “protected” from tariffs, shadow chancellor Mel Stride has said.
Speaking on ITV’s Good Morning Britain, Presenter Richard Madeley asked: “The Lib Dems this morning are saying that it’s time that the British government stood up to Donald Trump, confronted him and stopped being pushed around by him – what would the Conservatives think?”
Mr Stride replied: “I think they’re a hugely important trading partner.
“So if you take car trade, for example, and what may be about to happen on tariffs now, they’re our second largest export market, over 100,000 cars exported there per year, and a lot of jobs and livelihoods that depend upon that.
“So it’s very important in that context, for example, to get some kind of trade deal in place that means we are protected from those tariffs.”
He added: “I think it’s a balance between we want to make sure that we have the right relationship with America on all sorts of levels, including security as well as economic in order to make sure we get the very best for our country.”
Lib Dems: Government must 'toughen up' in wake of Trump's latest tariffs
07:57 , Jabed AhmedThe Government needs to “toughen up” and start placing retaliatory tariffs on US carmakers like Tesla, the Liberal Democrats said.
Asked what the Lib Dem response would be to the latest 25 per cent tariffs on all car imports to the US, the party’s deputy leader Daisy Cooper told BBC Radio 4’s Today programme: “I think there’s only one language that Donald Trump understands, and that is the language of strength.
“What we Liberal Democrats are very concerned about is that the Government strategy so far seems to be to cower in the corner and just ask Donald Trump to be nice to us and just to hope that he doesn’t do anything nasty.
“That is not a strategy. So we think the Government needs to toughen up.
“We think the Government needs to start preparing for retaliatory tariffs, and that those tariffs, that preparation, should start by looking at putting tariffs on Tesla cars, because clearly Elon Musk is a huge backer of Donald Trump, and that’s where we would start.”
Ms Cooper later urged the Chancellor to rule out tax breaks for “US tech barons” like Mr Musk, including ruling out scrapping or reducing the digital services tax.
Tories continue to pile on criticism of Reeves' spring statement
07:55 , Jabed AhmedShadow Chancellor Mel Stride has just spoken to ITV’s Good Morning Britain.
He said Rachel Reeves “came to office without a plan” and “talked down the economy”,
Asked why the economy has not grown and what he would say to the chancellor, Mr Stride said: “What I would be saying to her is that it’s all very well to President Trump and wars overseas and Vladimir Putin and the legacy, but what bit of this do you own?
“And I would say surely, what has happened is you came to office without a plan, you talked down the economy, you made out this fictitious £22 billion black hole that the OBR has debunked, that depressed the animal spirit.
“You just chose to borrow huge amounts of money, spend large amounts of money and tax the living daylights out of business, and that taxing of business led to growth being killed, stone dead.”
He also said Ms Reeves has not left the UK economy “enough headroom” to withstand a potential “world trade war”.
“If we have a world trade war, that headroom that Rachel Reeves rebuilt yesterday because she burned through all the last headroom, I’m afraid, will just not be sufficient,” he said.
Stride defends Tories record on the economy
07:49 , Jabed AhmedShadow chancellor Mel Stride has defended the previous Conservative government’s record on welfare reform in light of the spring statement.
He told ITV’s Good Morning Britain: “What we did when we were in power was we brought in reforms to the work capability assessment, that’s the gateway into long-term sickness and disability benefits.
“We saved £5 billion scored by the OBR, and that also the OBR said, would lead to 450,000 fewer people going on to those long term sickness and disability benefits and on a path potentially into work and I think that was a major achievement.
“Now we’d also consulted on reforms to the Personal Independence Payment, and that was a fundamental consultation looking at all sorts of different options, including a complete overhaul of Pip as a benefit.
“It’s a very blunt benefit, it’s not very effective, it’s not very targeted, it could do much better.
“So you could end up with a system that both saves the money but also does more for those people that need the help and that’s the key.”
For context,
Before the general election last year, the Conservatives pledged to halt the rising costs of welfare by reforming the benefits system if they won the election.
They said at the time it would help to save some £12 billion a year by the end of the next parliament by ensuring more working age people claiming benefits have a job.
Reeves rejects her own government's warning that welfare reforms could push 250,000 into poverty
07:42 , Jabed AhmedRachel Reeves has appeared to reject an official assessment of her welfare reforms, and said she is “absolutely certain” people will not be pushed into poverty.
She told the Sky News: “I am absolutely certain that our reforms, instead of pushing people into poverty, are going to get people into work.
“And we know that if you move from welfare into work, you are much less likely to be in poverty.
“That is our ambition, making people better off, not making people worse off, and also the welfare state will always be there for people who genuinely need it.”
For context,
Welfare cuts from the chancellor’s spring budget will leave an estimated 250,000 more people, including 50,000 children, in relative poverty after housing costs across Great Britain by 2030, according to the government’s own impact assessment.
Stride: Reeves attempting to 'dig herself out' of a 'masssive hole'
07:34 , Jabed AhmedChancellor Rachel Reeves is attempting to “dig herself out” of a “massive hole of her own creation” through her spring statement, shadow chancellor Mel Stride has said.
Of the statement, Mr Stride told ITV’s Good Morning Britain: “When she came to Parliament yesterday, of course, what she was doing was explaining how she was going to try and dig herself out of this massive hole of her own creation through taxing businesses and spending like there’s no tomorrow, putting up inflation, higher interest rates and all the consequences of that.
“Now, where the welfare debate therefore comes in, I think, is what you want to have done, actually, is to have got into office, had some serious principled welfare reform that would have made more savings, and be properly thought through with a proper plan.
“What you don’t want to do is what this government has done is to tank the economy and in order to try and desperately make the numbers add up, to suddenly rush around at the last minute and cobble together these savings in the way that she has.
“That’s not good for the taxpayer, and it’s also not fair to what are often a lot of very vulnerable people up and down the country.”
Reeves refuses to rule out further tax rises or spending cuts
07:28 , Jabed AhmedRachel Reeves has denied there will be further tax rises or spending cuts at the autumn budget, but stopped short of ruling them out entirely.
Asked by Times Radio if it were the truth she would have to return at the autumn budget with more cuts or tax rises, the Chancellor said: “No, it’s not.”
Asked if this meant she could rule out these measures, Ms Reeves replied: “What I’m saying is that there are loads of things that this Government are doing that are contributing to growth.”
She pointed to planning reforms as an example, citing the Office for Budget Responsibility’s analysis this would add “£3.4 million pounds to our public finances” as a result of economic growth.
The Chancellor added: “That shows if we go further and faster on delivering economic growth with our planning reforms, with our pensions reforms, with our regulatory reforms, we can both grow the economy and have more money for our public services. And that is what I’m focused on.”
Asked if she would resign in the event she broke her own fiscal rules to avoid tax rises or further cuts, Ms Reeves told the broadcaster: “I’m not going to break my fiscal rules. I’ve said they are non-negotiable and we will continue to meet them.”
Labour minister apologies for comparing disability benefit cuts to children's pocket money
07:26 , Jabed AhmedLast night, chief secretary to the treasury Darren Jones apologised for comparing disability benefits cuts to children’s pocket money.
Earlier on Wednesday, he told BBC Politics Live: “My understanding is what the impact assessment doesn't account for is the benefit that you get from our additional money into support for training, skills or work.
“Take, for example, if I said to my kids, 'I'm going to cut your pocket money by £10 per week, but you have to go and get a Saturday job'.
“The impact assessment on that basis would say that my kids were down £10, irrespective of how much money they get from their Saturday job.”
Watch his apology below:
Reeves responds to Trump's latest tariffs
07:21 , Jabed AhmedThe government is in discussion with the US about what tariffs will mean for the UK, Rachel Reeves said.
Asked about Donald Trump’s latest announcement that car imports would be slapped with 25% tariffs, the Chancellor told Times Radio: “The Prime Minister went to Washington just a couple of weeks ago and met the US president, and we are now having extensive talks with our counterparts in the US to protect trade between our countries, those conversations will continue.
“Obviously the announcements of tariffs is something that the US plan to bring in next week, but we are in discussions about what that means for the UK.
“A million British people work for American firms. A million Americans work for British firms. Our two economies are so closely intertwined.
“I believe – and we make this case to the United States – that free trade, fair trade, is good for both of our countries, but let’s see where we get to in the next few days.”
Good morning,
Welcome to The Independent’s live politics coverage.
Chancellor Rachel Reeves is on the morning media round for the government, following her spring budget on Wednesday.
Shadow chancellor Mel Stride is on for the Conservatives.
We will bring you the latest lines right here.
