logo
Britain could recognise a Palestinian state 'within months' as PM gathers Cabinet TODAY to discuss Gaza crisis after Trump criticises Israel for starving civilians

Britain could recognise a Palestinian state 'within months' as PM gathers Cabinet TODAY to discuss Gaza crisis after Trump criticises Israel for starving civilians

Daily Mail​29-07-2025
Britain could recognise a Palestinian State as early as September if a new ceasefire plan helps to end the violence and humanitarian crisis in Gaza.
Sir Keir Starmer will host an urgent Cabinet meeting this afternoon as he seeks to set out a pathway to peace after a helpful intervention yesterday by Donald Trump.
The president criticised Israel, saying that reports and images of starvation in the battered enclave were 'real' despite Benjamin Netanyahu 's insistence that there was none.
Sir Keir shared plans he is working on with France and Germany to 'bring about a lasting peace' with Trump when they met in Scotland yesterday, Downing Street said.
If there is an end to the fighting, Britain could join France in recognising a Palestinian state at the UN General Assembly in September, the Times reported.
It comes as Sir Keir faces pressure, including from cabinet ministers, to take the step, despite critics saying it would reward Hamas for its October 7 attack on Israel.
Asked what would come out of the meeting, Technology Secretary Peter Kyle told LBC Labour 'went into the last election with a manifesto commitment to statehood for Palestine'.
'We've always said that this needs to be part of a process. It needs to be meaningful. And I think that we also see the crisis in front of us that is so unprecedented and it is so horrific, it's reached terrible levels of deprivation in Gaza,' he added.
The Prime Minister's official spokesman said: 'This week, the Prime Minister is focused on a pathway to peace to ensure immediate relief for those on the ground, and a sustainable route to a two-state solution.
'We are clear that the recognition of the Palestinian state is a matter of when, not if, but it must be one of the steps on the path to a two-state solution as part of a wider plan that delivers lasting security for both Palestinians and Israelis.'
Amid international alarm over starvation in Gaza, Israel announced at the weekend that it would suspend fighting in three areas for 10 hours a day and open secure routes for aid delivery.
The UK confirmed it was taking part in airdrops of aid into the territory.
Aid agencies have welcomed the new measures but said they were not enough to counter the rising hunger in the Palestinian territory.
Sir Keir said that the British public is 'revolted' at the scenes of desperation in Gaza as he appeared alongside Mr Trump at his Turnberry golf course on Monday.
'It's a humanitarian crisis, it's an absolute catastrophe.
'Nobody wants to see that. I think people in Britain are revolted at seeing what they're seeing on their screens, so we've got to get to that ceasefire.'
The US president hinted at sticking points in US-led negotiations over a peace deal, saying Palestinian militant group Hamas had become 'very difficult to deal with' in recent weeks.
He suggested this was because they only held a small remaining number of Israeli hostages.
Sir Keir has likened the plan he is working on with France and Germany to the coalition of the willing, the international effort to support Ukraine towards a lasting peace.
The Prime Minister's official spokesman said the plan would build 'on the collaboration to date that paves the way to a long-term solution on security in the region'.
Sir Keir is meanwhile facing calls from a growing number of MPs to recognise a Palestinian state immediately.
More than 250 cross-party MPs have now signed a letter calling for ministers to take the step, up from 221 on Friday.
Business Secretary Jonathan Reynolds on Monday dismissed the idea that there is a split at the top of Government over when to recognise a Palestinian state, saying 'we all want it to happen'.
Health Secretary Wes Streeting is among those to have signalled a desire for hastened action, calling for recognition 'while there's still a state of Palestine left to recognise', while Justice Secretary Shabana Mahmood said the Government wants to recognise a Palestinian state 'in contribution to a peace process'.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Trump vowed to end Ukraine war in first 24 hours of his presidency - nearly 200 days in, could he be close?
Trump vowed to end Ukraine war in first 24 hours of his presidency - nearly 200 days in, could he be close?

Sky News

time4 minutes ago

  • Sky News

Trump vowed to end Ukraine war in first 24 hours of his presidency - nearly 200 days in, could he be close?

Seven hours is a long time in US politics. At 10am, Donald Trump accused Russia of posing a threat to America's national security. By 5pm, Mr Trump said there was a "good prospect" of him meeting Vladimir Putin"soon". There had, he claimed, been "great progress" in talks between his special envoy Steve Witkoff and the Russian president. It's difficult to gauge the chances of a meeting between the two leaders without knowing what "great progress" means. Is Russia "inclined" towards agreeing a ceasefire, as Ukraine's president now claims? Is Mr Putin prepared to meet with his Ukrainian foe, Volodymyr Zelenskyy, too? The very fact that we're asking those questions suggests something shifted on a day when there was no expectation of a breakthrough.

Breakingviews - US punitive tariffs put India in a corner
Breakingviews - US punitive tariffs put India in a corner

Reuters

time30 minutes ago

  • Reuters

Breakingviews - US punitive tariffs put India in a corner

HONG KONG, Aug 7 (Reuters Breakingviews) - A worst-case scenario for India on U.S. tariffs is now the base case. New Delhi called Donald Trump's decision on Wednesday to double the levy on the South Asian nation's goods to 50% because of its Russian oil purchases "extremely unfortunate". That's an understatement. Negotiating down this high rate before it goes into effect in three weeks is now an urgent priority for Narendra Modi - and will require a major compromise from the Indian leader. The new rate can inflict serious pain on the $4 trillion economy. New Delhi failed to lower the initial 25% tariff unveiled by the U.S. president on April 2. That was bad but didn't leave India much worse off than its peers. Analysts at Citi, a U.S. bank, warn the higher levy could trim 80 basis points or more off GDP growth, which logged in at 6.5% in the year to March, and make exports to the U.S. "unviable". These amounted to $87 billion last year. Such a dramatic fallout would require the government to support its exporters, either through fiscal backing or a weakening of the currency. Both are deeply unattractive prospects because India's fiscal deficit is widening on the back of lower tax receipts and a stable rupee has underpinned its message to global investors and companies that the country is open for business. Now that India is backed into a corner, the simplest solution to stabilise ties with its largest trading partner is to stop buying Russian oil which comprises 40% of total crude imports. Though Modi's administration insists that those purchases are a "national compulsion", India can easily manage without the waning discounts from Moscow, and even more so if global oil prices remain little moved by this prospect--as they have so far. To be sure, giving Russia a cold shoulder would be a blow to India's effort to maintain a multi-polar foreign policy, but a 50% tariff is too much to bear and retaliating could cost it even more. The U.S. only backed down from its escalating standoff with China after the People's Republic squeezed supplies of rare earths, a sector where it has 90% of processing capacity. Though India supplies about 65% of generic drugs in the U.S. and American companies depend heavily on Indian IT services, these are easier to replicate elsewhere. Whether Trump will succeed in forcing China to give up Russian oil is unclear. India, though, has a weaker hand and little capacity to bluff. Follow Una Galani on LinkedIn, opens new tab and X, opens new tab.

How Gordon Brown's ‘baby bonds' failed to raise a nation of investors
How Gordon Brown's ‘baby bonds' failed to raise a nation of investors

Times

time33 minutes ago

  • Times

How Gordon Brown's ‘baby bonds' failed to raise a nation of investors

Rachel Reeves wants stubborn savers to embrace investing to earn better returns and boost the economy. The chancellor is looking to rip up red tape to let banks to nudge savers towards the stock market, and is also considering cutting back the cash Isa allowance to ensure more of our savings are invested. However, the New Labour chancellor Gordon Brown also had an ambition to create a healthier savings culture, and it did not exactly turn out as he had hoped. Brown wanted to raise a generation of investors by giving every baby at least £250 to kickstart the habit. When detailing the policy in his 2003 budget, he said: 'The child trust fund symbolises the difference between those who believe in modernising the welfare state and those who wish it to wither away. 'At age 18, on the basis of historic rates of return, the child trust fund will accumulate assets that will enable all young people to have more of the choices that were once available only to some.' The tax-free scheme was designed to encourage parents to invest for their children's future, and all babies born between September 1, 2002 and January 2, 2011 were eligible. In all, 6.3 million accounts were opened, and the government paid £2 billion into the accounts, which could be accessed from 18. Yet child trust funds were scrapped by the coalition government in 2011 and many have since been lost or forgotten. Some investors have even been locked out of their funds. The first children with funds turned 18 in September 2020. The latest available data shows the total value of the funds is about £9 billion. While up to 2.8 million accounts have now matured, of these, about a quarter (670,000) have not been claimed. On average it's estimated that each young person could have an account worth about £2,000. A further study revealed that most of the accounts did not have any money paid into them between April 2023 and April 2024, suggesting they've been abandoned as a savings vehicle. Maike Currie, an investment and savings expert who worked for Hargreaves Lansdown until recently, said: 'Child trust funds were a victim of the age of austerity after the 2008 financial crisis. 'On reflection, they were always doomed to fail — starting with the elaborate name. Many people were put off, thinking these were the preserve of trust fund babies, while others simply did not know about them. 'This simply reiterates the importance of awareness and education if you're to reignite a nation of investors. If the government today fails on getting this right, they will have another flop on their hands with disastrous consequences.' Education about these accounts was lacking — and remains the case, as shown by a trip by Money in April to one school where many pupils had no idea they had a child trust fund. The initial sum of £250 was doubled to £500 for low-income families. Children had a second payment when they reached seven. However, in 2010, the initial payment was reduced to £50, or £100 for lower-income families, and the second payment at seven scrapped. The first payment was abolished entirely in 2011. New parents were also invited to choose a home for the free cash. They could invest it in the stock market (either choosing the investments themselves or selecting a stakeholder version where the investments were chosen by the provider) or choose a savings-style account where interest was paid. If an account was not opened by the child's parent, HM Revenue & Customs set up a stakeholder account on the child's behalf. Many parents never engaged with the scheme. HMRC stepped in on behalf of 1.7 million parents (28 per cent) who failed to find a home for the £250 within the required 12-month period. All HMRC-allocated accounts were investment-based. According to the Share Foundation, a charity that helps to trace unclaimed funds, more than £400 million is sitting unclaimed in HMRC-allocated accounts. More than half of the unclaimed accounts worth £274 million belong to young adults on low incomes. About 55,000 trust funds mature every month and the charity forecasts that nearly £1 billion will be unclaimed for low-income young adults by the end of this parliament. Gavin Oldham from the Share Foundation said: 'Since September 2020, when the first account holders started turning 18, child trust fund owners have been able to withdraw funds or transfer savings into an adult Isa. 'Yet there's an enormous amount of money sitting unclaimed by youngsters, who could use it to go towards tuition fees, a first home or simply to kickstart their own savings for the future.' The charity has matched more than 85,000 young people with their child trust funds, recovering more than £165 million for young adult account owners. The accounts will continue to mature until 2029, when the last children to get a fund will turn 18, but the worry is that many won't be reunited with their money. • NatWest says stolen £8,500 child trust fund is not its problem There were many other criticisms of the scheme. For example, the investment options were limited and expensive. A parliamentary report highlighted that investment charges for managing the funds were 'very high'. Another issue is that no provision was made for children with disabilities who were unable to manage their own finances. A report has previously suggested 80,000 such young people were unable to access their funds without their families going through the Court of Protection — a process that can be costly and time-consuming. If the amount in the fund is relatively small, the legal fees might outweigh claiming the cash. Analysts have looked for positive outcomes. There was some evidence to show that the accounts appeared to have led some parents to open savings accounts for older siblings who did not benefit. However, it found the scheme did not have a statistically significant effect on the rate of savings for children overall. Education is essential when it comes to encouraging people to invest. Many prefer to keep their savings safe in risk-free cash accounts, where they are unlikely to keep pace with inflation. If you have long enough to ride out the ups and downs of the stock market, investing usually results in a much higher return. A £100 monthly investment into the average global equity fund for the past 18 years (£21,600) would today be worth about £52,800, according to analysis by the investment platform AJ Bell. The same £100 a month saved in an average child's savings account over the last 18 years at 2.93 per cent would today be worth about £28,465, according to Moneyfacts. That's 85 per cent less than if the money had been invested. Currie said: 'Education, awareness and ease are the cornerstones to creating a nation of investors or to put it differently: there needs to be a seismic shift in trust, ease and confidence. 'In the UK, investing is still associated with gambling — people must understand that when you're investing you're owning real assets and the potential for future growth. It's also about getting to grips with the concept of risk and understanding different levels of risk — and the hidden risks of holding too much cash against a backdrop of inflation and longer lives. These are big hurdles to overcome to establish a culture of retail investing in the UK.' • How to get a nation of savers investing Laith Khalaf from AJ Bell said that the UK had a long way to go before reaching the investing culture in the US. Khalaf said: 'The US has been a leader in terms of financial products such as unit trust funds, exchange traded funds, trackers and self-invested personal pensions. As a result there is a greater familiarity with investments and probably a greater risk appetite amongst everyday Americans. That's positive for US investors and stocks over the long term, but it's not without its risk.' In the UK there's perhaps not enough risk being taken, with many people holding large sums of cash and never considering the stock market. Khalaf said: 'At least £100 billion is sitting in cash Isa accounts held by savers with £20,000 or more in cash, but no stocks and shares Isa investments. 'The chancellor's efforts to ignite a retail investing revolution are therefore well met. Getting more people to invest in the stock market will be positive for their long-term wealth and for the economy as a whole. In particular a regular investment plan can help reassure those who don't like the full thrills and spills of the stock market because it leads to a smoother journey.' He added that some things needed to be addressed to encourage investing. 'For example, it's nothing short of bizarre that the Treasury wants people to invest in domestic stocks but charges stamp duty of 0.5 per cent on UK share purchases. An investor can buy shares in a US company like Apple with no stamp duty to pay, but if they buy £10,000 of London-listed AstraZeneca shares, they will pay the government £50 for the privilege.' • The Share Foundation is campaigning for the government to start automatically releasing unclaimed CTF funds once account holders turn 21.• You can search for lost CTF funds using a free HMRC-linked search tool. Have your national insurance number to hand. Tayo Olutunde, 22, received a £2,500 windfall last year when he decided to check whether he had a child trust fund account. Tayo, who lives in Leeds and is studying accounting and finance, watched a TikTok video that prompted him to check with his parents about a child trust fund. They remembered setting one up and contributing to it for a time but couldn't remember with which bank. Olutunde said: 'As a family we moved a lot, including abroad. The contributions would have stopped when we went abroad and the paperwork was lost. I came across the Share Foundation who helped me locate where my account was — with NatWest. 'It took a long time to access the money because I didn't know which address was registered with my account, so I kept failing security. Eventually I got through and found I had £2,400. I was shocked.' Olutunder decided to spend about £400 on a holiday to Italy to celebrate his 21st birthday and invested the rest. But he said more needs to be done to educate young people about the world of investing. He said: 'I have a friend who also located his child trust fund recently. He spent most of it on a fast car, which I'm not sure is the best use of the money.' Scott and Julie James were thrilled to receive the £250 from the government for their daughter Holly when she was born in 2009. The couple, who live in Glasgow, decided to invest the sum to start building a nest egg for her future. Scott, 54, who works as a company director, said: 'The government was giving away free money which was great. Sadly the rest of the scheme wasn't quite so impressive. We wanted to invest the money, knowing that stocks and shares perform better than cash over the longer term. 'But at the time we opened the account, there wasn't a huge number of companies to choose from, and those that did offer child trust funds had a limited investment choice and the charges were high.' They opened an account anyway and it was topped up with money from grandparents. But when junior Isas were launched two years later, Scott felt they offered a bigger range of investments and lower charges, so they started saving in one of those accounts instead. Scott says they are still saving for Holly, now aged 16, perhaps to help with a first property purchase or whatever she might need in adulthood. He said: 'The child trust fund was a nice try, but it just didn't work.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store