
Portrait of the week: Ukraine talks, inflation rises and a new house for the Prince and Princess of Wales
Sir Keir Starmer, the Prime Minister, joined President Volodymyr Zelensky and the leaders of France, Germany, Italy, Finland, the EU and Nato in a visit to Washington three days after the Trump-Putin summit in Alaska. On his return he chaired a virtual meeting of a 'coalition of the willing' to discuss security guarantees for Ukraine. Asylum seekers were to be removed from the Bell Hotel, Epping, Essex, after the High Court granted an injunction sought by Epping Forest district council against their being housed there. The ten councils controlled by Reform would try to emulate Epping. The number of migrants arriving in England in small boats in the seven days to 18 August was 968. Ricky Jones, 58, a councillor suspended by the Labour party, who, speaking to a crowd in Walthamstow last year, said of 'disgusting Nazi fascists' that 'We need to cut all their throats and get rid of them all', was found not guilty of encouraging violent disorder by a jury.
Hashem Abedi, who was jailed for a minimum of 55 years in 2020 for helping to plan the Manchester Arena bombing in 2017, was charged with attempting to murder three prison officers at Frankland prison. The pressure group For Women Scotland lodged an action at the Court of Session, claiming rules on transgender pupils in schools and transgender people in custody are 'in clear breach' of a Supreme Court judgment in April. A Labour MP, Afzal Khan, resigned as Britain's trade envoy to Turkey after a visit to the self-declared Turkish Republic of Northern Cyprus. Terence Stamp, the glamorous 1960s film star, died aged 87.
Inflation rose from 3.6 to 3.8 per cent. Gilt yields, reflecting the cost of government borrowing, rose above the peak reached during Liz Truss's financial difficulties. GDP rose by 0.3 per cent in the second quarter, compared with 0.7 per cent in the first. The average two-year mortgage rate fell below 5 per cent for the first time since September 2022. Britain's largest bioethanol plant, in Hull, began closing down, following the removal in May of a 19 per cent tariff on ethanol imported from America. Britain's biggest power generator, German company RWE, blamed weak winds for a £1.8 billion fall in profits. The chain of 46 Soho House clubs was bought for £2 billion. The Met Police will axe 40 of its 93 horses to save money. No horses will run at race meetings on 10 September in protest at a proposed rise in betting tax. A-level grades were again the highest ever, with 28.3 per cent being A* or A. The Prince and Princess of Wales will move from Adelaide Cottage into the eight-bedroom Forest Lodge in Windsor Great Park.
Abroad
President Donald Trump of the United States and President Vladimir Putin of Russia met for three hours in Alaska without reaching an agreement on the war in Ukraine. Mr Putin had been greeted with a red carpet and a lift in the American presidential car. At the end of their meeting, Mr Putin said in English: 'Next time in Moscow.' Mr Trump had promised 'severe consequences' if Russia did not move towards a ceasefire, but after the meeting he said that the 'best way' was to go 'directly to a peace agreement'. He said that Ukraine could not reclaim Crimea or join Nato. But he added that Mr Putin had agreed that Russia would accept security guarantees for Ukraine; no American troops would set foot in Ukraine. At the Washington follow-up meeting, Mr Zelensky said that he and Mr Trump had had a 'very good conversation'. The plan was for a trilateral meeting, then for a bilateral one between Mr Putin and Mr Zelensky. Territory remained an unsolved problem. Four people in New York City died from Legionnaires' disease, which was traced to 12 cooling towers where bacteria were growing.
Hundreds of thousands of people gathered in Israel to call for an end to the Gaza war and an agreement to secure the release of the hostages held by Hamas. Tulsi Gabbard, the director of US national intelligence, said Britain had withdrawn its demand for access to global Apple users' data. Two boats carrying 90 migrants capsized off Lampedusa; 60 were rescued.
Hundreds were killed by floods in northern Pakistan. Aid agencies warned of starvation in Burma's Rakhine State, which is under a military blockade. The communist mayor of Noisy-le-Sec in France said he had cancelled a screening of Barbie to protect town hall officials from 'insistent threats' from young Muslim men who accused the film of 'promoting homosexuality'. CSH

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The Independent
5 minutes ago
- The Independent
Irish leaders welcome clarity on EU-US trade deal and pharma tariffs cap of 15%
Ireland's premier and deputy premier have welcomed clarity on the EU-US trade deal, which sees the US commit to capping tariffs on pharma goods at 15%. Taoiseach Micheal Martin said the trade agreement represented a 'significant win' for the EU while Tanaiste Simon Harris said it offered an 'important shield' for Irish exporters. The EU struck a trade deal with the US on July 27, five days before Mr Trump said a 30% tariff would kick in for the bloc. The deal sees 15% tariffs on most EU goods including cars, semiconductors and pharmaceuticals entering the US. There are 'zero for zero' tariffs on a number of products including aircrafts and aircraft parts, some agricultural goods and certain chemicals – as well as EU purchases of US energy worth 750 billion dollars over three years. In the aftermath of the deal, it was not clear whether 15% would remain the rate for the pharma sector or be increased. The EU-US statement published on Thursday said that as of September 1, the US will apply a maximum tariff rate of 15% on generic pharmaceuticals, their ingredients and chemical precursors. 'The United States intends to promptly ensure that the tariff rate, comprised of the MFN (Most Favored Nation) tariff and the tariff imposed pursuant to Section 232 of the Trade Expansion Act of 1962, applied to originating goods of the European Union subject to Section 232 actions on pharmaceuticals, semiconductors, and lumber does not exceed 15%.' Mr Harris, Ireland's deputy premier and Minister for Foreign Affairs and Trade, welcomed the assurances for the pharmaceutical and semiconductor sectors. 'We welcome clarity that the deal includes a single, all-inclusive 15% tariff on EU goods,' Mr Harris said. 'We also now have assurance that this rate will extend to pharmaceuticals and semiconductors. 'This provides an important shield to Irish exporters that could have been subject to much larger tariffs pending the outcomes of Section 232 US investigations into these sectors.' Mr Harris said this offered a 'first step' to a more 'comprehensive and formal agreement with the US in the future'. 'Our intention now is to see what other carve outs can be made in areas of interest for Irish exporters.' Irish premier Micheal Martin said the statement brought 'greater clarity and certainty' to what the EU-US agreement would mean in practice. 'This is especially important for enterprises that either import from or export to the US,' he said. 'Given the scale of the pharmaceutical and semiconductor sectors in Ireland, it is important that the Joint Statement confirms that 15% is a ceiling that will apply to EU exports in these areas in all circumstances, including when the current US Section 232 investigations are concluded. 'While I have been clear all along that I do not support tariffs, this is a significant win for the EU. 'Given the significance of the airline sector to Ireland, a specific carve-out for aircraft and aircraft parts is also welcome. 'There are areas where further work remains to be done, including a potential carve-out for med-tech products and spirits. 'I hope this will be advanced as quickly as possible. We will continue to advocate for these sectors given their significant importance to our domestic economy.'


The Independent
5 minutes ago
- The Independent
What the UK's migration numbers really show
The number of asylum seekers housed in government hotels has risen in the first year under Labour, piling further pressure on Sir Keir Starmer to get a grip on the growing number of people making dangerous Channel crossings. It follows a High Court ruling on Tuesday that banned the use of The Bell Hotel in Epping, Essex, for asylum seekers after lawyers argued it had become a 'feeding ground for unrest' following a string of violent protests at the site. As Labour braces for a fresh round of legal action from revolting councils seeking similar bans in their areas, new Home Office figures reveal that the number of people claiming asylum in the past year soared to a record 111,000, while small boats continue to cross the Channel at increasing rates. The government has been repeatedly accused of failing to tackle immigration, with Reform UK leader Nigel Farage saying the 'public is right to be very angry' over the rise in asylum seekers being housed in hotels and shadow home secretary Chris Philp claiming ministers had 'lost control of our borders'. Shadow justice secretary Robert Jenrick has claimed that the country 'is well past breaking point', while Tory leader Kemi Badenoch questioned whether it would be possible to 'set up camps' for migrants, rather than housing them near local communities. While the number of asylum seekers housed in hotels is up eight per cent year-on-year, the numbers have been consistently falling since December last year. The number of people in hotels - 32,059 - is also significantly lower than the peak of over 56,000 under the Tory government in September 2023. Labour has also made progress on cutting the backlog of asylum claims and speeding up the number of deportations, with enforced returns up by 25 per cent and an increasing number of criminals deported in the year to June. Home Secretary Yvette Cooper said on Thursday that the numbers showed Labour had 'strengthened Britain's visa and immigration controls, cut asylum costs, and sharply increased enforcement and returns'. The bad news: asylum claims and small boats at record levels The number of migrants being housed temporarily in hotels has risen by eight per cent to 32,059 in the year to June. This was up from 29,585 at the same point last year, when the Conservatives were in power, but down from 32,345 in March, and has been falling since last December. That figure is still far below the peak of 56,000 asylum seekers living in hotels in September 2023. Shadow home secretary Chris Philp slammed 'weak' ministers for there being 'more immigrants in hotels than at the time of the election'. But Labour has blamed the Tories, with Ms Cooper on Thursday saying the party 'inherited a broken immigration and asylum system that the previous government left in chaos'. The party has said it is committed to ending the use of asylum hotels by the end of this Parliament and had already reduced asylum costs by 11 per cent. Enver Solomon, chief executive of charity the Refugee Council, said that 'there's still far too many people in hotels', adding: "Everyone agrees that hotels are the wrong answer – they cost the taxpayer billions, trap people in limbo and are flashpoints in communities.' The rising numbers in hotels come as a record number of people – 111,084 – submitted claims for asylum in the year ending June 2025, the highest number for any 12 months since records began in 2001. Small boat migrants – numbers of which have topped 50,000 so far this year under Labour – accounted for 39 per cent of these claims, but many thousands of people also claimed asylum after travelling to the UK on legal visas. In the year 2025 so far, some 6,700 people have claimed asylum after coming to the UK to study, and 5,900 people after arriving for work. Most applicants were from Pakistan, accounting for 10.1 per cent, followed by claimants from Afghanistan and Iran. Labour has made progress on slashing the backlog, with the number of people awaiting a decision continuing to fall. The total number waiting was 70,532 in June this year, down from more than 90,000 at the end of 2024, after the former Tory government stopped processing applications while they waited to see if they could send people to Rwanda under their failed deportation scheme. The numbers waiting for more than 12 months for a decision are also falling significantly, although some 19,000 are still waiting. Mr Solomon, of the Refugee Council, said that the government can be proud of the "genuine achievement" of bringing down the numbers but warned that "this good work is being put at risk by poor-quality decisions", with "nearly half of appeals" succeeding. Marley Morris, at the Institute for Public Policy Research (IPPR), agreed that there were 'signs of progress' since the Home Office sped up processing times. However, she said it needs to 'improve the quality of initial decision making and speed up the appeals process', and expand the 'stock of temporary accommodation' available for migrants to reduce spending on hotels, which cost £2.1bn in 2024-25. One area where Labour is making real progress is in the significant upturn in deportations. Enforced removals have increased by 25 per cent, with 9,100 people returned to their country of origin in the year to June. Voluntary returns - those leaving without enforcement - are also up by 13 per cent, with 26,761 people opting to leave the UK. This brings the total number of removals to over 35,000 in the year to June. There has also been a significant increase in assisted returns, where the Home Office provides support or even financial incentives for migrants to leave the UK. That figure has nearly doubled from 4,032 to 9,227. Earlier this year, The Independent revealed that the Home Office had paid £53m for assisted returns in the past four years, with each migrant receiving up to £3,000. The Home Office has reallocated some 1,000 staff to immigration enforcement, which it notes may have boosted returns. In particular, an increasing number of foreign criminals are being deported, with 5,265 offenders returned – around half of which were EU nationals. Earlier this year, the prime minister announced that specialist immigration enforcement teams were being sent into prisons to 'speed up the removal of prisoners who have no right to be in this country'. The latest figures are the highest number of criminals removed in years, but are still below the peak in 2016. Migrants and asylum-seekers coming from Albania, Romania, Brazil, and India are among the top nationalities being deported, figures show. But the top return destination for migrant removals is France, with 8,403 people sent there in the past year. The government's new one-in, one-out deal with France will allow a small number of migrants to be returned after crossing the Channel. But the numbers are small – understood to be around 50 people a week – and so far none are known to have been sent back.


Daily Mail
6 minutes ago
- Daily Mail
Labour rakes record £100 BILLION of taxes in July as Rachel Reeves plots new raid on middle classes to repair 'chronically weak' public finances
Labour raked in a record £100 billion of taxes last month – but fears are growing that Rachel Reeves is coming for more with the public finances in 'chronically weak condition'. The haul - the highest ever for July - was boosted by Rachel Reeves' employer national insurance raid. However, that policy is also blamed for making it harder for firms to hire and pushing up unemployment. Ms Reeves' tax hike saw national insurance bring in an extra £2.6 billion last month compared to last year and £9.5 billion extra for the financial year to date. It helped the government bring July's borrowing – the gap between tax revenues and spending – to a lower than expected £1.1 billion. That is down from £3.4 billion in July last year. However, total borrowing for the financial year so far, from April to July, is running at £60 billion, £6.7bn ahead of 2024. Even as the tax take surges, spending is ballooning thanks to pay rises for civil servants and Britain's soaring benefit bill. Meanwhile, Britain's debt pile stands at a staggering £2.89 trillion, or 96 per cent of the size of the economy. And the cost of servicing that debt so far this year is £41 billion. Economists think the Chancellor will need to put up taxes even further at this autumn's Budget as she looks to close a gap of £50 billion to meet fiscal rules that commit her to bring down borrowing and debt. That is fuelling speculation that she could stage raids on property tax, pension lump sums or inheritance tax, or carry out a 'stealth' hike by freezing income tax thresholds. Tory business spokesman Andrew Griffith said: 'With the amounts being squeezed out of taxpayers at record highs yet the Chancellor still craving more, either she quits her addiction to higher public spending or someone needs to send her to rehab.' Experts said the public finances remain fragile after U-turns on welfare reforms and winter fuel payments wrecked the Chancellor's plans and as traders in UK bonds, known as gilts, lose faith in Labour – pushing up the cost of borrowing to levels not seen since the 1990s. Meanwhile, economic growth is slowing and doubts are growing about whether Britain's dismal productivity growth – the ability to work more effectively and get more done per hour – can be restored to the levels needed to sustain a recovery. That looks increasingly likely to spell further painful tax rises in October's budget. Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, said: 'The big picture remains that the public finances are in chronically weak condition. 'The Chancellor faces surging gilt yields and a likely productivity downgrade from the OBR [Office for Budget Responsibility] in the October forecast round. 'The litany of policy U-turns has only compounded the Government's fiscal woes.' Alex Kerr, UK economist at Capital Economics, said: 'Today's release does little to brighten the gloomy outlook ahead of the Budget later this year.' Mr Kerr estimates the Chancellor may have to raise as much as £27 billion. 'Given that she is struggling to stick to existing spending plans and we doubt the gilt market will tolerate big increases in borrowing, most of that will have to be funded by tax rises.' Matt Swannell, chief economic advisor to the EY ITEM Club, said: 'The rising cost of government debt, changes to welfare reform and the possibility of a less optimistic growth forecast will very likely see tax rises introduced at the Autumn Budget if fiscal rules are to be met.' Darren Jones, Chief Secretary to the Treasury, said: 'Far too much taxpayer money is spent on interest payments for the longstanding national debt. 'That's why we're driving down government borrowing over the course of the parliament – so working people don't have to foot the bill and we can invest in better schools, hospitals, and services for working families.'