UK and France order more Storm Shadow missiles and step up military co-operation
Storm Shadow, or as the French call it SCALP, is a long-range missile which has been supplied by both the British and French to Ukraine, allowing Kyiv to strike targets deep inside Russian territory.
The two countries have discussed co-operation on a replacement for years but, as French president Emmanuel Macron visits the UK, the nations will commit on Thursday towards the next phase of the project for Storm Shadow's successor.
The joint development will help to sustain more than 1,300 jobs in the UK, according to the Government.
On the third day of Mr Macron's UK state visit, he and Sir Keir Starmer will also agree to deepen nuclear ties.
Britain and France, the only two nuclear powers in Europe, will state in a declaration that their nuclear deterrents – while independent – can be co-ordinated, with the aim of deterring threats like Russia from attacking Europe.
The declaration comes at a time when Donald Trump's US administration is calling on European Nato powers to take on a larger role in the alliance.
Prime Minister Sir Keir Starmer said: 'From war in Europe, to new nuclear risks and daily cyber-attacks – the threats we face are multiplying.
'As close partners and Nato allies, the UK and France have a deep history of defence collaboration and today's agreements take our partnership to the next level.
'We stand ready to use our shared might to advance our joint capabilities – equipping us for the decades to come while supporting thousands of UK jobs and keeping our people safe.'
Defence Secretary John Healey said: 'The UK and France are stepping up together to meet today's threats and tomorrow's challenges. We are committed to driving defence as an engine for growth, delivering better fighting capabilities faster, and ensuring our armed forces can operate side by side – from the High North to the Black Sea.
'This partnership strengthens our leadership in Europe, ensures continued support for Ukraine, and sends a clear signal to our adversaries that we stand stronger, together.'
Building on the 2010 Lancaster House treaties between France and the UK, the two countries will also bolster a shared military venture, known as the Combined Joint Force.
They also plan to forge closer military industrial ties, including in AI and direct energy weapons, as part of a programme dubbed the 'Entente Industrielle' by the UK Government.
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In February 2025, the UK government updated their alcohol duty rates and ended a temporary concession on wine that had been in place since 1 August 2023. The reprieve had been an 18-month-long move to help wine producers adjust to a new way of calculating alcohol duties. Namely, tariffs are now calculated by alcohol strength (ABV), rather than volume. This could be seen as a gentle push for consumers to more closely consider the strength of what they're drinking, and it aligns with a wider, societal trend towards moderating consumption. 'This approach is supported by public health experts including clinical advisors to the Department of Health and Social Care,' HM Treasury told Euronews. In 2024, the UK wine market, including fortified wine, was worth around £12.3 billion (€14.3bn), according to data from the Wine and Spirit Trade Association (WSTA). 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While this might not seem like a huge rise, it follows the key taxation change in August 2023, which saw 11.5-14.5% ABV wine pay 44p more tax, rising from £2.23 (€2.58) per bottle of still wine to £2.67 (€3.09). Added to this, upcoming EPR charges — based on packaging weight — will add extra expense that cannot always be passed on to consumers. Related The Big Question: Will CBD drinks be the new way to relax and socialise? Some suggest this change in duty is disproportionately affecting some producers, as their climates are more suited to certain wine styles. 'The hotter the climate, the higher the strength of the wine,' explained Stannard. Sunny climates produce grapes with more sugar, sugar ferments into alcohol and therefore the more sugar, the stronger the ABV. For example, medium to low alcohol white wines in the 10-11.5% ABV category, such as Muscadet, Soave and Pinot Grigio often come from cooler regions like France, Northern Italy and Germany. Wines with an ABV of 13.5-15% are those most affected by the end of the wine reprieve and typically come from warmer climates like Spain and southern Italy, as well as further afield, like Argentina, USA and Australia. This category includes wines such as Grenache (Garnacha), Shiraz (Syrah) and US Chardonnay. Some Californian reds have even become famous for being over 15% ABV. The wineries themselves are not responsible for paying the alcohol duty; that falls to the importers. While it's too soon to have concrete data on producer sales, the long term effect is predicted to manifest in numerous ways. Freddie Long, export manager at Spain's Long Wines, told Euronews that he expects a decrease in sales for high-alcohol Spanish red wines this year. On the other hand, Jessica Marzo, Director at Italica, a specialist importer of Italian wines said: 'We expect the demand for Italian wines will remain the same as previous years. 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Europe's iPhone price gap: Where you'll pay the most and least Many importers stockpiled ahead of the 1 February change so much of the wine sold in the UK over the past few months will not have paid the increased duty rates. However, the impact on consumer habits may be visible in the year ahead. 'Within the Treasury, their modelling is a straight assumption that if you increase taxes by 3-4% there will be no impact on consumer behaviour so you can assume your revenue will go up by 3-4% too. There is plenty of evidence that that isn't true,' Stannard told Euronews. It's at a retailer's discretion if they choose to absorb extra costs. If 100% of charges have been passed down to the customer, here's how they might be affecting your glass. A 250ml glass of 11% still wine would be 3p more expensive. A 250ml glass of 11.5% still wine would be 5p cheaper. A 250ml glass of 13% still wine will be 8p more expensive. Hardly a bank-breaking increase, but if everyone in the supply chain adds a bit extra for profit, it may lead to much bigger price hikes. Related Which European economy stands to suffer the most from US tariffs? The US is the biggest importer of wine in the world by value. Germany is the largest by volume, closely followed by the UK which comes second in both measurements. Australia, France and Italy are the UK's favourite wine producers, with Spain coming in fourth, by volume and by value. In 2024, the UK imported 1.6 billion litres of wine. Much of that is imported in bulk, from new world producers like Australia, New Zealand and South Africa, bottled in the UK and redistributed. Around 20% of the bulk wine is re-exported in bottles to northern Europe. For producers, the major concern is that globally there is an oversupply of wine, WSTA's Simon Stannard told Euronews. Consumption rates are declining and although production rates have dropped a little over the past few years, the supply is still outweighing the demand. Reflecting on various trends impacting wine purchasing, Stannard added: 'Looking at the last 12 months, I think we'll see volume declines but whether those are any more significant than what is a relatively long-term trend [remains to be seen]. Value wise, overall value will be relatively static.' Though not solely caused by changes in taxation, many large producers of all wines, across the world, are looking at how they can produce lower ABV products. This will take time and there are limitations on how much strength can be reduced. This nonetheless aligns with overall market trends as people seek to lower their alcohol consumption. To support the demand for lower alcohol products, the industry is hoping for new reforms in the UK to match EU regulation on what can be labelled as wine. 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