Thursday briefing: Rachel Reeves heads to Washington in pursuit of a trade deal – will she get one?
Good morning. I'm Annie Kelly, I'll be bringing you First Edition alongside Archie for the next few weeks.
It's probably fair to say the annual spring meeting of the International Monetary Fund (IMF) has not traditionally been an event high on drama. Not so this year, as Rachel Reeves and her fellow finance ministers from around the globe have been blown into Washington DC on the chilly winds of global economic chaos caused by Donald Trump's 'America First' economic policies, pithily described in a recent Guardian leader as 'part oligarchic enrichment scheme, part mobster shakedown'.
Reeves arrived for the four-day event hot on the heels of the news that the world economy has, says the IMF, suffered a 'major negative shock' from Trump's tariffs with the lender slashing global growth estimates across all major political economies, including the UK.
Reeves will have a big few days ahead of her as she strives to negotiate with the US administration and return home with a firm prospect of a big, beautiful trade deal to calm the nation's jangling nerves.
For today's newsletter, I talked with the Guardian's senior economics correspondent Richard Partington about what she'll be hoping to come home with … and if she'll get it. First, today's headlines.
Ukraine | At least nine people have been killed and more than 60 wounded in a 'massive' missile attack on Kyiv, according to Ukraine's state emergency service. It is among the deadliest attacks on the capital of the three-year war.
Labour | Keir Starmer is under pressure from more than 60 Labour MPs to allow thousands of young Europeans to live and work in the UK, a move seen as key to unlocking a more ambitious trade reset with Brussels.
Health | Adults with severe peanut allergies can be desensitised by daily exposure, according to the first clinical trial of its kind. After being given steadily increasing doses of peanut flour over a period of months, two-thirds of the trial participants were able to eat the equivalent of five peanuts without reacting.
NHS | NHS staff are so tired they are dying in car crashes and posing a major threat to patients, the service's safety watchdog will warn on Thursday. Fatigue among frontline personnel causing them to make mistakes is a 'significant' risk to patients, according to the Health Services Safety Investigation Body (HSSIB).
Music | Oasis fans have collectively lost more than £2m to scams since tickets for its reunion tour went on sale last year, a major bank has estimated. Lloyds Banking Group based the calculation on the volume of fraud reports made by its own customers. Oasis fans make up more than half (56%) of all reported concert ticket scams so far this year, losing £436 on average.
Rachel Reeves is walking a tricky line in Washington DC as she attempts to negotiate a trade deal with the US this week. She will have to balance the political pressure to deliver good news on a deal and protect Britain's interests, while at the same time being sure not to even appear confrontational or oppositional to a hyper-sensitive Trump.
Her first face-to-face meetings with Scott Bessent, the US treasury secretary, will be key to whether she comes back home with anything solid to show for her time in the US. Her conversations with him will hopefully lay the foundations of any future trade deal the UK will be able to strike, with Reeves saying they would be talking about 'how we can build on the trade relationship that we have'.
How good are Reeves's prospects?
According to Richard, the chancellor arrived in Washington in a relatively good position.
Back at home, her Labour government has been dealing with almost universally bad news on the economic front and has so far failed to deliver the growth that they promised, but in the US he believes she has the space to negotiate a favourable deal.
'There is £60bn worth of bilateral trade between our two countries and this is significant,' he points out. Yet he also says a big challenge for Reeves will be getting the deal prioritised amid the clamour this week. Trump's focus is also likely to be on China, with whom he has the biggest grievances, but where he is also softening his position to open up space.
'Reeves has flown into Washington with every other finance minister, each one of them trying to cut a deal with the Trump administration,' he says. 'There is a queue around the block to get time with the US administration.'
Yesterday Reeves also seemed very keen to manage – or even dampen – expectations, dashing hopes of an early breakthrough during this week's negotiations, saying although she is confident a deal can be struck she is 'not going to rush' into anything.
What does she want?
Reeves's ultimate wish would be to fly home with a blanket exemption from the 10% trade tariffs Trump has imposed on the UK, and with an agreed trade deal under her belt. But, again, she has indicated that this is almost certain not to happen.
The UK has already offered concessions in the hope of getting tariffs cut, such as offering to reduce the digital services tax on US tech companies. One of her reported aims this week is to secure a carve-out tariff reductions for the 25% levies placed on cars, aluminium and steel to try and stave off the job losses that UK car industry bosses have warned could be just weeks away.
However, as economics editor Heather Stewart reported last night, Reeves has already pushed back on leaked plans that suggested that the US was preparing to issue a series of demands, including the government drop its standards on agricultural products such as hormone-fed beef.
Reeves needs to hold her position in the coming days on deal-breakers for the voting public like the prospect of being forced to import chlorinated chicken or give away parts of the NHS. She also needs to make sure that she isn't alienating or cutting off the UK's relationships with other trading partners, like the European Union.
'I think a good scenario for her would be some kind of positive public commitment on both sides about an intention to strike a deal and deepen economic links,' says Richard. 'Something she can hold up and say, 'look what I got done'.
What are her main challenges to getting what she wants?
A problem Reeves shares with all the other finance ministers trying to secure agreements with the US this week is – you guessed it – that they are trying to negotiate with a wildly erratic and unpredictable partner.
'The whole process has this sense of peril and brinkmanship,' says Richard. As a reporter, Richard says he finds reporting on Trump's economic policies 'just completely mad. I wake up in the mornings and check the news on tariffs like I'm checking the weather because it's so changeable. It is hard to be authoritative on something that is constantly shifting so imagine what it's like to be trying to nail down the details of a trade deal.'
One thing Reeves will be aware of is that even if she does manage to carve out some concessions or reprieves from the blanket 10% tariff Trump has imposed on all trading partners, the chilling economic effect of his policies so far is almost inevitably going to be felt by both businesses and consumers in the UK and beyond for months or years to come.
One problem Labour has, says Richard, is that the government's gloomy and downbeat rhetoric on the economy since the party came to power last year has already affected business and consumer confidence.
'People here responded to that already – they didn't start that business or make that hire or buy that new kitchen,' he says. Now with the tariffs and global economy sliding, Reeves is potentially facing the prospect of having to raise taxes, cut spending or break her own fiscal promises in the Autumn budget,'which will increase the pressure on her to come home with good news' says Richard.
Sign up to First Edition
Our morning email breaks down the key stories of the day, telling you what's happening and why it matters
after newsletter promotion
Rafael Behr thinks Nigel Farage has found his next 'vehicle for economic and cultural grievance' in net zero – and challenges Keir Starmer to start firmly defending the much-needed green transition. Charlie Lindlar, acting deputy editor, newsletters
The legendary Peter Bradshaw has done a wonderful job of delivering a brief history of popes in film and TV and decodes the enduring cinematic appeal of the Holy Father. Annie
The Turner prize shortlist is out, and features all sorts of works from videotape sculptures to war trauma paintings. For his money, though, Jonathan Jones thinks 'this shortlist's lack of connection with the realities of contemporary Britain is just another way to dig the ailing Turner prize deeper into irrelevance and empty bourgeois ritual'. Charlie
Sean Ingle's piece on the Kenyan athlete Faith Kipyegon's 'audacious' bid to become the first woman to run a sub-four minute mile is a testament to her ambition to push the boundaries of women's sports. Annie
Here's Adrian Chiles on why he hates pigeons. Need we say any more? Charlie
Football | Substitute Jean-Philippe Mateta's 83rd-minute goal earned Crystal Palace a 2-2 draw at Arsenal – and gives Liverpool the chance to secure the Premier League title against Tottenham on Sunday. In the Women's Super League, two goals from Catarina Macario, a penalty from Guro Reiten and Mia Fishel's strike gave Chelsea a 4-0 win against Crystal Palace.
Tennis | Former tennis world No 1 Andre Agassi will make his professional debut in the fast-growing sport of pickleball next week when he teams up with top ranked Anna Leigh Waters for the mixed doubles at the US Open Pickleball Championships.
Athletics | The London Marathon has revealed that it is permanently boycotting X, with the event director, Hugh Brasher, accusing the social media platform of 'descending into a gutter' since Elon Musk took charge.
'Crimea is lost, says Trump as he warns Zelenskyy on peace deal' – that's the story fronting the Guardian's print edition today. The Times goes with 'Zelensky is key obstacle to peace deal, says Trump' and the Daily Mail has 'Back my peace or lose all of Ukraine, Trump warns'. 'Trump: Zelensky to blame for no peace' says the Telegraph. In business news, the Financial Times reports 'Reeves ready to cut tariffs on US car imports in push for deal with Trump'. Reunion tour turmoil in the Metro: '£2m Oasis scam pain supernova'. Freddie: part of me wished I had tied' – the cricketer talks about his car crash recovery in the Mirror. 'The truth is he doesn't have the balls!' – vulgarity directed at Keir Starmer by Kemi Badenoch is the most pressing story for the Express today.
Trump's class war on Harvard
Is the US president exploiting popular resentment towards elite colleges to achieve his political goals? Ed Pilkington reports
A bit of good news to remind you that the world's not all bad
Slow-roasted pork with pearl barley and mushrooms. Rye pancakes with salmon, cream cheese and avocado. Beetroot tartare with horseradish and rye toasts, and a spelt side salad.
Rachel Dixon reports not from some trendy new Soho joint, but from a Denmark train company canteen, as she explores how the country transformed its population's diet for the better through the power of wholegrains.
Sign up here for a weekly roundup of The Upside, sent to you every Sunday
And finally, the Guardian's puzzles are here to keep you entertained throughout the day. Until tomorrow.
Quick crossword
Cryptic crossword
Wordiply
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Wales Online
an hour ago
- Wales Online
Everything we know about winter fuel payment U-turn
Everything we know about winter fuel payment U-turn Although the news is welcomed by many, there is still some confusion over what the announcement could mean Charities and MPs were among those who hit out at the move last year (Image: Getty Images/Image Source ) Huge changes have been announced to Labour's highly controversial policy, which limited how many pensioners could receive the Winter Fuel Payment. Rachel Reeves said more people would qualify for the allowance "this winter", and Prime Minister Sir Keir Starmer said he wanted to widen the threshold for winter fuel in a U-turn on one of his government's first major policies. However details of the changes and who will be eligible remain unclear, with Sir Starmer failing to confirm how many people will now get it during Prime Minister's Questions on Wednesday. The payment - which is worth up to £300 to help with energy bills during the coldest months - was paid only to those on pension credit last year, but the policy was widely blamed for Labour's poor local election results. It saw 10 million fewer pensioners receive the money in 2024. Charities and MPs were among those who hit out at the move, showing concern for those whose income was slightly too high to qualify but then had expensive energy costs to pay. However, the restriction came in a bid to same save around £1.3 billion. Although the news is welcomed by many, there is still some confusion over what the announcement could mean. For money-saving tips, sign up to our Money newsletter here Here is everything we know about it so far. Article continues below Winter Fuel Payment means tested Last year, the Labour government introduced means-testing for the Winter Fuel Payment, meaning only certain pensioners over 66 would receive the money, rather than all pensioners. This resulted in over nine million UK pensioners losing the additional cash last winter. The move sparked significant backlash against Labour, which has persisted. Legal challenges have been launched against the government's decision, with charities warning it could push more elderly Brits into poverty. Research by Unite Union revealed that over two-thirds of its retired members had to reduce their heating last winter, a third took fewer baths or showers, and 16% had to cut back on hot meals due to the increased costs of trying to stay warm. The removal of the benefit was also linked to the rise in Reform Councillors in recent elections. Under the rules, you are eligible for the Winter Fuel Payment if you are over the state pension age of 66 and claiming one of the following benefits during the qualifying week: Income Support Income-based Jobseeker's Allowance Income-related Employment and Support Allowance Pension Credit Universal Credit What was announced this week? Although there have been no official announcements or changes today, one thing has been verified: Starmer's intention to increase the eligibility of pensioners for this winter's support payment. According to Jon Greer, Quilter's head of retirement policy, the Prime Minister's suggestion signifies a "notable shift in tone". Who will benefit from the U-turn? During Prime Minister's Questions, Sir Keir did not clarify who would benefit from the updated policy, despite acknowledging in a recent BBC interview that there was a pressing need for clarity. "We will look, again, as I said two weeks ago, at the eligibility for winter fuel, and of course, we'll set out how we pay for it," he responded when Conservative Party leader Kemi Badenoch queried about the number of pensioners, out of 10 million, who would have the allowance reinstated. The queries arose following Reeves' earlier statement that people "should be in no doubt that the means test will increase and more people will get winter fuel payment this winter". When will details be announced? Should the UK government wait until the Budget to announce the changes, it would be just prior to when payments are typically made. Eligible pensioners receive payments automatically in November or December. Under the current, short-lived system, individuals are required to claim pension credit - a top-up to the state pension for those on low incomes. Pressure from Welsh First Minister Eluned Morgan, who had previously urged the government to rethink the cuts to millions of retirees, welcomed the PM's surprise reversal on Wednesday. She says that Keir Starmer should now provide winter fuel payments to the "majority" of pensioners. Speaking to the BBC, Ms Morgan said millionaires shouldn't be getting the payment. She said: "I'm not sure if millionaires should be getting a winter fuel allowance. So let's just make sure that they don't get it." But Ms Morgan added: "People below that, that's where the conversation got to be. I do want the majority of pensioners - I think they made a massive contribution to the country." Martin Lewis comments The Money Saving Expert founder said he was "delighted" about the news, in a social media post.. He said it was worth "explaining" the two issues he had always had with the way that the Winter Fuel Payment means-test had been put in place. He said: "The first one is the level. Currently, for a single pensioner, only those earning under £11,800 a year get the £200 or £300 winter fuel help. Now with energy bills still high and other energy bill help being taken away, that really was a big hit to the pensioners who were just above that limit. "I'm hoping to see this limit increase from the current £11,800 up to £20,000 or more. Perhaps they might only do it and link it to higher-rate taxpayers." He added: "The means test that they linked Winter Fuel payment to was Pension Credit. Now, Pension Credit has long been a flawed benefit which has been critically underclaimed, and even now, after all the communication over Winter Fuel, there are still 700,000 eligible pensioners who should get Pension Credit and thus winter fuel payments who don't because they don't claim. "Often, it will be vulnerable people with onset dementia or people who just can't go through the complicated process, especially on forms, or the message hasn't been passed on to them as it's quite difficult to explain the level of income that you need to get it. "So let's just put that into perspective, 700,000 people who have a total income of under £11,800 a year are missing out on the Winter Fuel Payment, even though that's the level the government says they should get it. Article continues below "So my big message to the Chancellor is, don't just increase the threshold. You have to look at the means test mechanism to make sure that the most vulnerable pensioners in this country, if they have income below your threshold, actually get the Winter Fuel Payment. And my fingers are crossed they'll be listening."
Powys County Times
an hour ago
- Powys County Times
Playgrounds must be saved to stop children being ‘glued to screens', MPs say
Playgrounds across England must be protected from being 'left to rot' so children can avoid being 'glued to screens', ministers have been told. A cross-party group of MPs are backing plans which would ensure town halls keep play parks in good order, while housing developers would be required to provide 'high quality, accessible, inclusive' areas for play on new build sites. The amendment to the Planning and Infrastructure Bill is expected to be considered when the legislation returns to the Commons on Monday. Some 49 MPs from the Labour Party, the Greens, and the Liberal Democrats, as well independents, have so far signalled their support for the amendment to the Bill, which would introduce a 'play sufficiency duty' in England. Similar measures already exist in Scotland and Wales, and require councils to regularly assess whether there are enough playgrounds and other play facilities in their areas. The amendment, introduced by Labour MP Tom Hayes, would also 'require new developments to provide high-quality, accessible, inclusive play opportunities which incorporate natural features and are integrated within broader public spaces', and could see councils withhold planning permission if new estates lead to a net loss of play areas. Mr Hayes, the MP for Bournemouth East, told the PA news agency: 'When playgrounds are left to rot, and we have the power to put things right, what message is that sending to families? 'New Clause 82 is a common-sense, no-cost way to protect the play spaces we have today and ensure developments in the future focus on children. 'England must join Scotland and Wales in providing a play sufficiency duty, and my amendment does just that.' In January, the Labour MP led a Westminster Hall debate on playgrounds, where he emphasised the importance of play to children's development and said the Government need to be on the 'side of playing children', as well as the 'side of working people' . The debate was the first of its kind in seven years, he said, and the longest in 17 years, when a national play strategy was introduced by the previous Labour government. Mr Hayes added: 'Children sitting GCSEs this year weren't even alive the last time a government, a Labour government, produced a national play strategy and funded playgrounds. 'Today children end up indoors, glued to screens because they don't have safe play spaces. For families on tight budgets, paying for indoor play isn't an option. 'They're left with bare patches of tarmac where a climbing frame should be, or rusted swing frames that only remind them of what used to be. 'Children growing up in cramped flats rely on playgrounds. My amendment supports their right to play and provides inclusive play areas for children with special educational needs and disabilities, too.'
South Wales Argus
an hour ago
- South Wales Argus
Playgrounds must be saved to stop children being ‘glued to screens', MPs say
A cross-party group of MPs are backing plans which would ensure town halls keep play parks in good order, while housing developers would be required to provide 'high quality, accessible, inclusive' areas for play on new build sites. The amendment to the Planning and Infrastructure Bill is expected to be considered when the legislation returns to the Commons on Monday. Some 49 MPs from the Labour Party, the Greens, and the Liberal Democrats, as well independents, have so far signalled their support for the amendment to the Bill, which would introduce a 'play sufficiency duty' in England. Similar measures already exist in Scotland and Wales, and require councils to regularly assess whether there are enough playgrounds and other play facilities in their areas. The amendment, introduced by Labour MP Tom Hayes, would also 'require new developments to provide high-quality, accessible, inclusive play opportunities which incorporate natural features and are integrated within broader public spaces', and could see councils withhold planning permission if new estates lead to a net loss of play areas. Mr Hayes, the MP for Bournemouth East, told the PA news agency: 'When playgrounds are left to rot, and we have the power to put things right, what message is that sending to families? 'New Clause 82 is a common-sense, no-cost way to protect the play spaces we have today and ensure developments in the future focus on children. 'England must join Scotland and Wales in providing a play sufficiency duty, and my amendment does just that.' In January, the Labour MP led a Westminster Hall debate on playgrounds, where he emphasised the importance of play to children's development and said the Government need to be on the 'side of playing children', as well as the 'side of working people' . The debate was the first of its kind in seven years, he said, and the longest in 17 years, when a national play strategy was introduced by the previous Labour government. Labour MP Tom Hayes, speaking during a Westminster Hall debate in January, where he urged the Government to consider the importance of playgrounds to children's development (Parliament TV/ Houses of Parliament) Mr Hayes added: 'Children sitting GCSEs this year weren't even alive the last time a government, a Labour government, produced a national play strategy and funded playgrounds. 'Today children end up indoors, glued to screens because they don't have safe play spaces. For families on tight budgets, paying for indoor play isn't an option. 'They're left with bare patches of tarmac where a climbing frame should be, or rusted swing frames that only remind them of what used to be. 'Children growing up in cramped flats rely on playgrounds. My amendment supports their right to play and provides inclusive play areas for children with special educational needs and disabilities, too.' The Ministry of Housing, Communities and Local Government was contacted for comment.
