U.K.'s Starmer faces major rebellion over welfare cuts
Labour's Mr. Starmer, who has had a bumpy first year in power since ousting the Conservatives in a landslide election victory last July, insisted that a vote on the proposed legislation would go ahead on Tuesday.
His government is under pressure to slash a spiralling benefits bill as Chancellor Rachel Reeves tries to generate much-needed growth from a sluggish U.K. economy.
The Premier's defiant words came as at least 120 Labour MPs, nearly a third of the 403 in parliament, publicly backed a move to block the proposals.
Media reports pointed to growing alarm behind the scenes in Mr. Starmer's Downing Street office at the scale of the mutiny.
One Minister told The Times daily that the mood was one of "panic", while a Labour Party insider told The Sun newspaper that many MPs were happy to rebel because "they are seeing poll after poll showing their seats going to (the anti-immigration party) Reform next election".
But Mr. Starmer, speaking from The Hague where he is attending a NATO summit, said he was elected to "change that which is broken", adding that the welfare system "doesn't work for anyone".
Spiralling welfare bill
"There will be a vote on Tuesday, we're going to make sure we reform the welfare system," he told LBC radio.
The rebels, who have signed an amendment that could effectively kill off the legislation, say it is poorly thought out and will push a quarter of a million more people into poverty.
The Universal Credit and Personal Independence Payment (Pip) Bill aims to restrict eligibility to welfare payments with the aim of getting more people back into work.
Latest official figures show that 3.7 million people in England and Wales claimed Pip, up from 2.05 million in 2019, with teenagers and young adults making up a growing proportion of claimants.
Leading Labour figures also called on the Prime Minister to reconsider.
Mayor of London Sadiq Khan said that ministers must "urgently think again" while Mayor of Greater Manchester in northwestern England Andy Burnham said that the sheer number of rebels ought to give Starmer pause for thought.
"When the PLP (parliamentary Labour Party) delivers its collective wisdom in such numbers, it is invariably right. And it is right on this," he said.
Labour's First Minister of Wales, Eluned Morgan, also called for a rethink.
Reform challenge
The row comes as Brexit figurehead Nigel Farage's far-right Reform UK continues to ride high in the polls.
Reform has consistently led national opinion polls for weeks now and won hundreds of councillors at local elections on May 1 amid widespread anger on a range of issues from creaking public services to crime, immigration and the ongoing cost of living crisis.
Although Reform only has five seats in parliament, it won 14 percent of the vote at last year's general election.
An Ipsos poll last week put the party on 34 percent, nine points ahead of Labour on 25 percent.
Although the next election is not due for another four years, the results — if replicated across the country — could hand the keys of number 10 Downing Street to Farage.
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Hindustan Times
27 minutes ago
- Hindustan Times
India, Britain seal trade deal to bring down tariffs, barriers; keep dairy out
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Britain's Prime Minister Keir Starmer and Prime Minister Narendra Modi shake hands after Britain's secretary of state for business and trade, Jonathan Reynolds and India's commerce minister Piyush Goyal, signed a free trade agreement at Chequers near Aylesbury, England on July 24 (via REUTERS) The two sides also unveiled plans to negotiate a Double Contribution Convention (DCC) to give a fillip to the services sector, especially finance and technology, by exempting employers of Indian workers from paying social security contributions in the UK for three years, and a Defence Industrial Roadmap for closer cooperation on military hardware. The DCC will come into force alongside the trade deal. India and Britain finalised the Comprehensive Economic and Trade Agreement in May after more than three years of negotiations, and the pact was signed by commerce minister Piyush Goyal and his UK counterpart Jonathan Reynolds during Modi's visit to Britain. The two sides gave a push to the negotiations amid economic turmoil unleashed by US President Donald Trump's tariff policies to overcome long-standing differences on issues such as levies on British alcohol and automobiles, and access to India's markets. Modi described the deal as 'not just an economic partnership, but a plan for shared prosperity' that will benefit India's youth, farmers, fishermen and MSME sector. Starmer said the agreement is the 'biggest and most economically significant trade deal' concluded by the UK since leaving the European Union (EU) in 2020 and also 'one of the most comprehensive deals' by India. Speaking at a media interaction with Starmer, Modi said: 'On the one hand, Indian textiles, footwear, gems and jewellery, seafood and engineering goods will get better market access in the UK. New opportunities will be created in the UK market for India's agricultural produce and processed food industry.' He added, 'On the other hand, products made in the UK, such as medical devices and aerospace parts, will be available to the people and industry of India at accessible and affordable rates.' The DCC, Modi said, will give new energy to the services sectors of both sides by boosting the ease of doing business. 'Along with this, the UK economy will get Indian skilled talent,' he said. He added that the deal between two democratic countries and major economies will strengthen global stability and prosperity. Starmer said that, apart from benefiting whisky distillers in Scotland and the services sector in London, Manchester, and Leeds, the deal will lower prices on Indian goods, including clothes, shoes, and food. 'It will add about £4.8 billion to the UK economy every year and £2.2 billion to wages and hundreds of millions of pounds to regions and nations up and down the UK,' he added. 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Other sectors where duties will be cut to zero are marine products (20%), transport and automobiles (18%) leather and footwear (16%), electrical machinery (14%), and aluminium (10%). The elimination of tariffs on textiles and clothing, from the current level of 12%, will enhance India's competitiveness against players such as Bangladesh and Vietnam and boost exports of value-added garments. Exporters of seafood, dairy and meat products are expected to benefit from the cut in levies on animal and marine products. In addition to cutting tariffs, the deal will streamline trade protocols and ensure protection for India's agricultural sector, which is the cornerstone of rural livelihoods and economic security, officials said. The benefits for Indian farmers in UK markets will match or exceed those enjoyed by exporters from Germany, the Netherlands and other EU members, and agricultural exports are forecast to rise by 20% in the next three years, they said. 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The inclusion of a first-of-its-kind trade and gender chapter in the trade deal aims to empower Indian women and ensure gender inclusion, with targeted support for women-led enterprises and workers. India-UK trade in goods and services was worth $57.8 billion (£42.6 billion) in January-December 2024, representing an 8.3% increase from 2023. India's imports from the UK totalled £17.1 billion, while its exports to the UK were worth £25.5 billion. Total bilateral trade in goods was worth £17.8 billion in 2024, while total bilateral trade in services amounted to £24.8 billion. India was Britain's 11th largest trading partner in this period, accounting for 2.4% of the UK's total trade. India's key exports to Britain include textiles, apparel and clothing accessories, pharmaceutical products, telecom and sound equipment, refined oil, electrical and electronic equipment, machinery appliances, iron and steel, and gems and jewellery. 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The Federation of Indian Chambers of Commerce and Industry (FICCI) also welcomed the trade deal, with its president, Harsha Vardhan Agarwal, stating that it marked a key milestone in India's evolving trade architecture. 'It complements the objectives of Atmanirbhar Bharat by empowering domestic industries to scale globally, engage competitively, and leverage value chains more effectively,' he said. Tufan Erginbilgic, the CEO of Rolls-Royce Plc, hailed the free trade agreement as a landmark in bilateral cooperation. 'We welcome the new UK-India roadmap for closer collaboration on defence, technology and innovation. Rolls-Royce is growing its aerospace capabilities in India, and we look forward to working with Indian partners to co-develop power and propulsion technologies for India and the world,' he said.
Hindustan Times
27 minutes ago
- Hindustan Times
‘Don't worry about it': PM Modi calms translator struggling to speak Hindi at presser in UK
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Time of India
44 minutes ago
- Time of India
India–UK pact aims to double trade to $112 billion by 2030: Here's who will benefit, what will become cheaper & how it will change jobs?
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