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The Guardian Politics1 Jul 2026

Keir Starmer forced on back foot at PMQs over ‘weak’ defence plan

Prime minister says he will take no lectures from Tories after Kemi Badenoch says investment plan is insufficient UK politics live – latest updates Keir Starmer was forced on the defensive in the Commons over his long-delayed defence investment plan announced this week, which critics argue leaves his successor as prime minister, expected to be Andy Burnham, with an extra £4.7bn to find in his first budget. Starmer defended his £298bn defence investment plan (Dip) at prime minister’s questions

PoliticsEconomyDefence
The Guardian Politics1 Jul 2026

The Burnham blueprint, as told by one of its architects – podcast

Andy Burnham has set out his economic plans for Britain. Neal Lawson, from the Burnham-aligned group Mainstream, explains the thinking behind it Helen Pidd has been one of Andy Burnham’s constituents for almost a decade now. She says she has seen Greater Manchester thrive on his watch. Now he wants to do for the rest of the country what he has done for her region. On Monday Burnham stood up in the People’s History Museum in Manchester and delivered his economic manifesto. Barring some 11th hour

Economy
The Guardian Politics30 Jun 2026

Northern Rail Project risks repeating costly HS2 failures, MPs warn

The £45bn scheme to link cities across north of England with new or upgraded lines has no convincing or properly costed plan, committee says Building Northern Powerhouse Rail (NPR) risks repeating the failures of HS2 with “no convincing plan” to deliver it within a £45bn budget, an influential committee of MPs has warned. The government announced in January its commitment and funding for the NPR project to connect cities across the north, consisting of new or upgraded lines between Liverpool, Ma

PoliticsEconomyDefence
The Guardian Politics30 Jun 2026

Burnham left with £4.7bn bill for Starmer’s new defence investment plan

Ally of PM-in-waiting says four-year boost for the armed forces is an ‘unexploded bomb’ Britain has finally grasped the nettle on defence, but tough choices lie ahead Andy Burnham will have to find an extra £4.7bn for defence in his first budget, after Keir Starmer announced a £298bn defence investment plan (Dip) without having fully identified how it will be funded. Sources close to the Makerfield MP said he would not try to renegotiate the Dip after the outgoing prime minister announced its

EconomyDefence
The Guardian Politics30 Jun 2026

Britain has finally grasped the nettle on defence, but tough choices lie ahead

The new PM must balance the security budget and other urgent spending priorities, with little room for manoeuvre Keir Starmer’s defence investment plan leaves behind spending problems that his successor will not be able to avoid. Military budgets will be well short of the UK’s Nato commitments by the end of the decade, and European allies and a combustible White House are likely to notice. Continue reading...

EconomyDefenceReform
The Guardian Politics30 Jun 2026

The Guardian view on the defence investment plan: the UK needs security, not dependency on a wayward US | Editorial

Sir Keir Starmer cuts civilian investment while deepening reliance on American power. That doesn’t feel like national renewal Since Brexit, Daphne du Maurier’s final novel, Rule Britannia, has been seen as a prescient warning about the UK cutting itself adrift from Europe. After joining and then leaving the EU’s predecessor, the Common Market, in a referendum, Du Maurier imagined the UK facing such economic instability that its prime minister submits to a US takeover. Britain is occupied by US f

PoliticsEconomyDefence
The Guardian Politics30 Jun 2026

Hospitality VAT cut: can it help the sector and at what cost to UK taxpayer?

Drop to 10% for pubs and eateries would be in line with most of Europe, but critics say it favours multinationals Business live – latest updates Nearly a quarter of hospitality businesses are losing money, fresh data has shown, reigniting calls among chefs, pub owners and restaurateurs for their sector to be handed a reduced rate of VAT. It may seem like a no-brainer because the measure would ease pressure on the ailing sector and put the UK in line with most European countries. But critics sa

EconomyHealthcare
The Guardian Politics30 Jun 2026

Labour MPs tell Burnham to ignore ‘deluded’ calls for more North Sea drilling

Critics debunk economic claims as research finds Rosebank development would produce estimated 250m tonnes of CO2 UK politics live – latest updates Scores of Labour MPs have urged the prospective prime minister Andy Burnham to rule out the “tin-eared” and “deluded” development of the Rosebank oilfield in the North Sea, which new research indicates would produce as much carbon dioxide as the UK does in 10 months. Estimates seen by the Guardian show that Rosebank, which mainly contains oil, would

PoliticsEconomyEnvironment
The Guardian Politics30 Jun 2026

Want to know what Andy Burnham would do in government? Take a look at his past | Frances Ryan

His plan for the country is still vague, but there are clues to what he thinks, on topics from inheritance tax to welfare and social care One week on from Keir Starmer’s resignation, Britain finds itself in a state of both certainty and ambiguity. It is almost guaranteed that Andy Burnham will be prime minister by the end of the summer, bar sudden scandal or meteorite. And yet, whether Burnham gets his expected coronation or not, the infancy of his return to Westminster coupled with the speed of

PoliticsEconomy
The Guardian Politics30 Jun 2026

‘Commanding heights of the economy’: the postwar blueprint that inspires Burnham

In the second of a series on nationalisation, we look at the lessons from Clement Attlee’s administration Will Andy Burnham ‘go big’ in expanding the role of the state? A prime minister with ambitious plans for state ownership. Private companies that put profits before investment. A country struggling with onerous debts. The UK in 2026 with a new prime minister weighing up how and what price public utilities can be nationalised? No, this was Clement Attlee’s government in 1945, committed to ta

EconomyDefence
The Guardian Politics29 Jun 2026

Asylum seekers to pay £10,000 towards living costs under new UK law

Means-tested scheme included in immigration and asylum bill condemned by charities for placing tax on refugees Asylum seekers will be ordered to pay about £10,000 to cover their state-funded living costs or be denied settled status in the UK under a new law to be considered by MPs on Tuesday. The means-tested scheme, compared by officials to student loans and included in the immigration and asylum bill, has been condemned by charities for placing a tax on refugees fleeing war, torture and famin

PoliticsEconomyImmigrationDefence
The Guardian Politics29 Jun 2026

High-street slot machines and casinos could face £460m tax rise under Burnham

Thinktank finds 43% of the public would support a move by Labour to raise taxes on adult gaming centres All-night slot machine shops and casinos could face a £460m tax rise if Andy Burnham acts on his concerns about the gambling industry as prime minister, after an influential thinktank found the policy would have public support. Known by some in the gambling sector as “slot sheds”, adult gaming centres (AGCs) have flooded UK high streets in recent years, disproportionately targeting economicall

Economy