Downing Street says Trump’s tariffs signal ‘new era’ in global economics
Donald Trump’s tariffs signal a new global economic era, Downing Street has said, as economists warned that the British government would probably have to raise taxes in response.No 10 said on Friday the prime minister believed that this week’s trade announcement by the US president, which has started a global trade war and sent stock markets tumbling, marked a turning point in history.Keir Starmer is due to speak to European and Commonwealth leaders in a series of calls over the next few days before setting out on Monday how he intends to respond more fully.Senior MPs have called on him not to give too much ground to Washington in trade talks, cautioning against trying to become “the 51st US state”.The prime minister is expected to say next week that he wants to cut red tape and remove more planning restrictions in order to boost growth, but experts say this is unlikely to fill a new black hole in the autumn budget.
A Downing Street spokesperson said: “The global economic landscape is shifting, and we need to shift with it through overhauling our planning system, bringing forward our industrial strategy and cutting excess red tape.We are already embracing that new era and ready to tackle it.”Ministers have said they are still optimistic they can agree a trade deal with the US in the coming weeks that would avoid the worst of the direct impact of the tariffs.It is hoped negotiations will restart next week.The broad outlines of a deal have been drawn up and include concessions across a range of areas, including a lower digital services tax on US tech companies and reduced tariffs on some agricultural products.
The government has not denied reports that the deal includes a commitment to review enforcement of the UK’s online safety and digital competition regulations,Liam Byrne, the Labour chair of the business and trade select committee, warned ministers against making too many concessions,“President Trump’s tariffs could hit our economy so hard that we stand to lose billions and billions in tax revenues,So, yes, we should be flexible – but there are limits,” he said,“We’re not trying to become the 51st state of America.
Sacrificing high standards or strong competition rules would make us riskier, weaker and less productive.Crucially, any deal with the US must be matched by a bolder strategy to deepen ties with many, many like-minded free-trading nations around the world – starting with our closest neighbours in the EU.”Alistair Carmichael, the Liberal Democrat chair of the environment, food and rural affairs select committee, cautioned the government against giving away too much on agricultural and food policy.“The previous government gave away a lot but they gave it away in markets that didn’t matter so much.America is a market that matters, and if you give it up, you’ll never get it back,” he said.
“We have really high animal welfare and environmental standards and America works with very different rules,”Chi Onwurah, the Labour chair of the science and technology select committee, said that while successful trade talks were critical, “tech adoption is dependent on public trust as well as investment and it is important that the British people know tech policy is made in Britain for the benefit of Britain”,Economists say the likely slowdown in the global economy caused by tariffs will have such a significant impact on the UK – with or without a US trade deal – that it will force the chancellor, Rachel Reeves, to raise taxes in the autumn,Sign up to First EditionOur morning email breaks down the key stories of the day, telling you what’s happening and why it mattersafter newsletter promotionPaul Johnson, the director of the Institute for Fiscal Studies, said: “I would have thought the central expectation now must be that if she is sticking to her fiscal rules, she’ll need to increase taxes in the autumn by possibly some significant amount,“Taking the spending review as given, and given there’s not much more to be had from welfare, then there really is only tax.
”He said Labour’s promises not to increase major taxes including income tax, national insurance and VAT, meant one option might be a “defence and security levy”, with the proceeds earmarked for the planned increase in defence spending.Johnson added: “The one upside for Reeves is that it’s now going to be quite easy to make the argument that the world has changed.”Treasury sources say it is too early to start planning this year’s budget, but they stressed on Friday that Reeves intended to stick to her borrowing rules.“Our broader economic strategy remains the same – we need to offer stability to make the UK an attractive place to invest,” one Whitehall official said.Downing Street said on Friday that Starmer thought Trump’s tariffs would have as much impact on the global economy as his shift away from Europe was having on security policy.
David Lammy, the foreign secretary, went further, saying during a visit to Brussels that he regretted a “return to protectionism” by the US, which was “something that we’ve not seen for nearly a century”.No 10 refused to echo Lammy’s language, but called Trump’s decision “disappointing”, in contrast with the US president himself, who said Starmer had told him he was “very happy” with the UK’s tariff of 10%.A No 10 spokesperson said: “We need to understand – just as we’ve understood it for defence and security – the changing world when it comes to trade and the economy.That’s where we are, with the beginning of a new era.”
Companies House collects just £1,250 in fines in corruption crackdown
The UK government agency responsible for overseeing a national register of companies has collected just £1,250 in fines after being given new powers to crack down on corruption, it has emerged.Companies House is implementing a series of reforms, amid embarrassing revelations about fraudsters and jokers signing up to the corporate register with names such as “Darth Vader” and “Santa Claus”.Measures include new identity verification checks for directors, after the agency admitted that up to 20% of the 4.9m companies on its database may have submitted false information.Since last autumn, the agency has also had powers to impose financial penalties for failure to comply with its rules, such as the requirement to file ownership information on time
‘Polyworking’: why do so many millennials have more than one job?
Americans are barely staying ahead of inflation. So how are they dealing with this issue? By working more.That’s one of the biggest takeaways from a new study by Academized, an outsourcing platform that connects writers and students. According to the report, more than half of millennials – who make up the largest percentage of workers in this country – are working more than one job to make extra money. What’s even more eye-raising is that nearly a quarter (24%) of those workers have three jobs and a third (33%) have four or more income-earning opportunities outside their full-time work
Meta and Pinterest believed to have donated to Molly Russell charity
Meta and Pinterest have reportedly made significant donations to the Molly Rose Foundation, a charity set up to campaign for internet safety.The foundation was set up in the name of 14-year-old Molly Russell, who took her own life in 2017 after viewing harmful material linked to suicide and self-harm on social media platforms.The foundation’s latest annual report refers to grants received from donors who wish to remain anonymous, with trustees agreeing to respect their request.According to the BBC, these payments are believed to have been made by Meta and Pinterest since 2024 and are expected to continue over a number of years. Details of the amounts reportedly donated have not been disclosed
Australia’s social media ban is attracting global praise – but we’re no closer to knowing how it would work
The smash hit Netflix show Adolescence, which explores a teenage murder fuelled by social media and toxic masculinity, has renewed calls for social media bans in some countries. One of the show’s stars this week said the UK should follow Australia’s lead in banning children aged under 16 from social media platforms.The ban has been praised in the US and UK, and is described as “world-leading” by the Australian government. Time magazine this week praised the prime minister, Anthony Albanese, for a “remarkable” policy that was “politically uncontroversial” on the basis that both major parties supported it.Left unsaid was all the criticism raised by mental health groups, LGBTQ+ groups and other campaigners during the rushed process to pass the bill in parliament last year
Oscar Allen gets his wings clipped as inept AFL allows money to talk louder than morals | Jonathan Horn
“It’s hard to get caught in a lie,” Rachel Menken says to Don Draper in one of the early episodes of Mad Men. “It wasn’t a lie,” Don replies. “It was ineptitude with insufficient cover.” Oscar Allen’s press conference during the week said a lot about the football landscape – the money, the media, the managers, the mangled English.As he spoke, West Coast Eagles Head of Football John Worsfold stood smirking within spoiling distance – part affable pharmacist, part hired hitman
County cricket day three: Worcestershire clinging on after battering from Banton – as it happened
In the end, Brian Charles Lara could rest easy, his record first-class score of 501 not out for Warwickshire against Durham in 1994 was not surpassed by Somerset’s Tom Banton. Resuming on 344 and with his county’s highest score freshly minted in his back pocket, Banton threw the blade at everything Worcestershire sent down on the third morning, a nick behind off the left-arm wrist‑spinner Tom Hinley the final act of an innings of 371.Not bad for a player who admitted to “hating” cricket during times of paucity in recent years. Banton will now be on England’s radar in both red and white ball formats. Fifties from Adam Hose and Brett D’Oliveira delayed a three-day defeat for the Pears but they seem sure to go mouldy on day four, trailing by 236 runs with half their second innings wickets lost
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