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The Guardian Politics19 Apr 2026

Labour’s ‘crab-wise’ approach to closer EU ties must address damage of Brexit | Heather Stewart

The damage to the economy dwarfs the upsides from the various non-EU trade deals the UK has struck since 2016 Rachel Reeves joined EU finance ministers for dinner in Washington last week, on the sidelines of the International Monetary Fund spring meetings: the first time a chancellor had done so since Brexit. It was the latest symbolic step in Labour’s marked shift towards prioritising closer EU relations. Continue reading...

EconomyDefence
The Guardian Politics18 Apr 2026

‘It’s a twilight zone’: Iran war casts deep shadows over IMF gathering in Washington

Rachel Reeves joins global finance chiefs in highlighting how households and businesses are feeling the pain of higher energy prices The most severe energy shock since the 1970s, the risk of a global recession and households everywhere stomaching a renewed surge in the cost of living – hitting the most vulnerable hardest. In a sweltering hot Washington DC this week, the message at the International Monetary Fund meetings was chilling: things had been looking up for living standards around the wo

EconomyDefence
The Guardian Politics17 Apr 2026

Digested week: Hungary’s election result is rare good news in a depressing and surreal world | John Crace

Not least because JD Vance’s show of support for Viktor Orbán appears to have had opposite of desired effect So much of the news is depressing these days. The wars in Iran, Lebanon and Ukraine. The cost of living crisis. At times it feels as if the world has tipped into the surreal. Donald Trump posting photos of himself on his Truth Social account as the Risen Christ. A step too far even for Nigel Farage. And the US president picking a fight with the pope. Leo is a terrible man, apparently, for

PoliticsEconomyDefenceReformHousing
The Guardian Politics17 Apr 2026

Birmingham is awash with local election candidates – but will result be a ‘coalition of chaos’?

Some fear a fragmented field of hopefuls from Labour, the Conservatives, Greens, Reform and Independents could leave city ungovernable Paul Tilsley was 23 when he was first elected for the Liberal party in Birmingham’s 1968 council elections. At the time, the UK had an unpopular Labour government facing an economic crisis, tensions around immigration and US pressure to back military action abroad. Such a backdrop may seem familiar, but this May, the all-out local elections in Birmingham could no

PoliticsEconomyImmigrationDefenceEnvironment
The Guardian Politics17 Apr 2026

A question for those desperate to cut benefits to fund defence: who exactly are you willing to impoverish? | Polly Toynbee

George Robertson has joined Reform and the Tories in making the case. Look welfare recipients in the face and say that The benefits budget is now a magic money tree. Whenever Conservatives or Faragists make wild promises – tax cuts, more police, more punishment, more bonuses for marriage – and are asked how they would pay, the answer is always “welfare”. The sums are enormous. “Only the Conservatives will cut welfare spending by £23bn and get Britain working again,” the party insists. More unex

EconomyDefenceCrime
The Guardian Politics17 Apr 2026

Cuts to overseas aid will worsen shocks to global economy, David Miliband says

Exclusive: Former UK foreign secretary says poor and rich countries alike will be hit amid humanitarian crisis sparked by Iran war Cuts to overseas aid by countries including the US and the UK risk stoking global economic instability amid the humanitarian crisis resulting from the Iran war, David Miliband has said. The former British foreign secretary and head of the International Rescue Committee (IRC) said the US “abandoning” of its aid programme under Donald Trump would worsen shocks to the g

EconomyDefence
The Guardian Politics16 Apr 2026

Rachel Reeves warns other budgets may be cut to lift defence spending

Chancellor says she is ‘working through a range of options’ to boost the armed forces but does not want to put up taxes UK politics live – latest updates Rachel Reeves has warned “difficult choices” are required to increase defence spending and other budgets may have to be cut, including welfare. Under pressure for a faster rise in military spending amid the Iran conflict and Russia’s war in Ukraine, the chancellor said she was “working through a range of options” but preferred not to increase

PoliticsEconomyDefence
The Guardian Politics16 Apr 2026

SNP pledges to cap bread and milk prices if it wins Scotland’s parliamentary elections

John Swinney unveils his party’s manifesto, saying cost of living is the ‘defining issue’ for voters on 7 May The SNP will cap supermarket prices for essential goods like bread and milk if it retains power, John Swinney has pledged, after describing the cost of living as “the defining issue of this election”. With polls pointing to a fifth Holyrood term for the Scottish National party, its leader said he would use devolved public health powers to fix prices on 20 to 50 items such as bread, milk,

PoliticsEconomy
The Guardian Politics15 Apr 2026

Boosting military spending by slashing welfare is not the answer, senior Labour figures warn Reeves

MPs and peers say pitting defence and welfare against each other risks losing public support for increased spending on the military Senior Labour figures have warned that Rachel Reeves must find alternative ways to increase military spending rather than slashing welfare, saying it risks public support for investment in defence. Pressure has been mounting from Labour backbenchers for the Treasury to urgently agree the defence investment plan (Dip) after George Robertson, a former Nato secretary g

PoliticsEconomyDefence
The Guardian Politics15 Apr 2026

Reeves steps up criticism of Trump’s Iran war, branding it a ‘mistake’

UK chancellor tells US audience she is ‘not convinced that this conflict has made the world a safer place’ Middle East crisis – live updates Business live – latest updates Rachel Reeves has stepped up her criticism of Donald Trump’s war on Iran, describing it as a “mistake” that has destabilised the global economy and damaged living standards around the world. In a marked fraying of the transatlantic relationship, the UK chancellor said Trump breaking off from diplomatic talks with Iran and l

EconomyDefence
The Guardian Politics15 Apr 2026

Balancing UK’s welfare and defence spending ‘not zero-sum game’, minister says

Treasury minister James Murray hits back at George Robertson’s criticism over military budget UK politics live – latest updates A Treasury minister has said balancing welfare and defence spending “is not a zero-sum game”, amid stark warnings that the UK will have to increase its military budget to ensure national security during global volatility. James Murray, the chancellor’s deputy, said the government was pushing ahead with the biggest sustained increase in defence investments since the co

PoliticsEconomyDefence
The Guardian Politics15 Apr 2026

Trump warns US-UK trade deal ‘can always be changed’ with relations in ‘sad state’

President says he gave Britain ‘better deal than I had to’ but ally was ‘not there when we needed them’ on Iran Middle East crisis – live updates Business live – latest updates Donald Trump has threatened to row back on the trade deal the US signed with the UK last year, in his latest salvo against the British government over sharp differences about the US’s approach to the Middle East. The US president said the economic deal struck with the UK, which cut some of his tariffs on cars, aluminiu

EconomyDefence