Afternoon summary
For a full list of all the stories covered on the blog today, do scroll through the list of key event headlines near the top of the blog.
Councils claim shake-up will require extra funding because Reed planning more new bodies than had been expected
Jonathan Carr-West, chief executive of the LGIU local government thinktank, said in a statement on today’s reorganisation announcement (see 1.50pm) that in deciding how to replace two-tier councils with unitary authorities the government has “in general opted for more, smaller councils rather than fewer, larger ones”.
Carr-West did not make a value judgment about this. “What matters is not how big a council is, but how well it works,” he said.
But the County Councils Network, representing county councils that will be scrapped in the form in which they now exist, is more critical of this aspect of the reorganisation. In a statement, Sean Matthews, its chair elect, said:
Today’s decisions show how far ministers have departed from the statutory criteria and programme’s original aims. Whilst larger unitary councils will be created in some areas, most will see city and urban areas carved out and the creation of multiple smaller authorities in others. With unprecedented levels of splitting services and boundary change, this approach will inevitably end up costing local taxpayers more while causing greater fragmentation and upheaval to services for the most vulnerable - with new rural councils potentially most exposed to significant additional costs and service risks …
If these decisions ultimately proceed to implementation, CCN and its member councils will do all they can to ensure the establishment of safe and legal authorities. But it is now abundantly clear that the government will have no choice but to provide a more significant injection of funding than announced today to ensure many of these new councils are not reliant on exceptional financial support from day one.
Matthews is the Reform UK leader of Lincolnshire county council.
Updated
Nigel Farage, the Reform UK leader, is complaining that his party has not been given any seats in the House of Lords. (See 4.31pm.) He says:
The House of Lords appointments are the uniparty writ large.
Once again there is nothing for Reform and we get an even more unrepresentative upper house.
Andy Burnham is on the cusp of becoming prime minister without having set out a detailed policy agenda. While he has discussed in broad terms how he wants to change Britain, we don’t know much about the specifics.
But we did learn a bit more about him this afternoon when he released a video on TikTok setting out his likes and dislikes. It turns out he’s against: single-file queing at bars, playing loud music on public transport, having Yorkshire pudding with Christmas dinner, clapping when a plane lands, voice notes, getting phones out at gigs, and people leaving football matches early.
And he is in favour of: taking your shoes off when you enter the house, and (most controversially) adding milk first when making tea. “It softens the teabag,” he claims.
My colleague Pippa Crerar is not impressed; she says videos like this are fine, but a bit of “proper scrutiny” should come first.
Updated
Ministers propose ban on sale of loudest fireworks to protect residents, pets and wild animals
Ministers are proposing to ban the sale of the loudest fireworks to individuals to protect the interests of families, pets and wild animals.
Announcing a consultation, Kate Dearden, the consumer protection minister, said that professionals would still be able to buy these fireworks for displays. But the loudest fireworks would not be on sale generally.
She said:
Extremely loud fireworks used by individuals at all hours of the day and night has become a nightmare for many communities in recent years. The sound of large explosions on residential streets is a cause of fear, disrupted sleep, and does huge harm to our beloved pets. It is a practice that also often goes alongside wider forms of anti-social behaviour.
Fireworks used properly are great fun, and we want the professional displays which bring communities together to continue. That’s why we’re looking to limit the sale of loud fireworks only to these displays, and take them out of the hands of those who use them irresponsibly. This will crack down on anti-social behaviour and protect Britain’s pets.
Who are the 26 people getting peerages?
Here are the new peerages announced today.
Labour peers
1) Alison Garnham - Chief Executive, Child Poverty Action Group.
2) Alison Lowe OBE - Deputy Mayor for Policing and Crime in West Yorkshire.
3) Barbara Mills KC - Chair of the Bar Council of England and Wales (2025), family law barrister and Joint Head of Chambers at 4PB.
4) Cathy Ashley OBE - Chief Executive of Family Rights Group and former Chair of the Holocaust Memorial Day Trust.
5) Christina McAnea – Former General Secretary of UNISON.
6) June Sarpong OBE - Broadcaster, charity campaigner and social equity advocate.
7) The Rt Hon Ken Macintosh DL – Former Presiding Officer of the Scottish Parliament.
8) Kitty Ussher - British economist, former Member of Parliament for Burnley and former Economic Secretary to the Treasury.
9) Marcus Davey CBE – Former CEO and Artistic Director of the Roundhouse.
10) Martin McTague OBE - National Chair of the Federation of Small Businesses.
11) Nick Stace OBE - Chief Global Impact Officer at Howden Group.
12) Parvais Jabbar MBE - Human rights expert, co-founder and Co-Executive Director of The Death Penalty Project.
13) Roberto Neri - CEO of The Ivors Academy and a Director of UK Music.
14) The Rt Hon Sir Sadiq Khan - Mayor of London and former Member of Parliament for Tooting.
15) Saul Lehrfreund MBE - Human rights expert, co-founder and Co-Executive Director of The Death Penalty Project.
16) Tim J Smith CBE – Former Chief Executive of the Food Standards Agency.
Lib Dem peers
1) Dave McCobb – Liberal Democrat Director of Field Campaigns. Former Hull City Councillor of 22 years.
2) Hannah Kitching – Chair of the Yorkshire Liberal Democrats and Town Mayor of Penistone. Former NHS physiotherapist and Barnsley councillor.
3) Julia Aglionby – Executive Director of the Foundation for Common Land. Agricultural valuer and former Liberal Democrat parliamentary candidate.
4) Mark Petterson – Director of Warwick Energy Limited. Pioneer of UK offshore wind and long-standing adviser to the Liberal Democrats.
5) Dr Tim Leunig – Chief Economist at Nesta and Visiting Professor at LSE. Former senior civil servant and economic adviser.
Tory peers
1) David Ross - Entrepreneur and Philanthropist. Co-Founder of Carphone Warehouse, Sponsor and Chair of David Ross Education Trust, Founder of the Nevill Holt Festival and former Chair of the National Portrait Gallery.
2) General Sir Patrick Sanders KCB CBE DSO - Lately Chief of the General Staff, British Army.
3) Professor Swaran Singh - Professor of Social and Community Psychiatry, University of Warwick; Consultant Psychiatrist, Coventry and Warwickshire Partnership NHS Trust and former Equality and Human Rights Commissioner.
My colleague Peter Walker has been checking Ross’s record as a donor to the party.
Also getting a peerage, for the Tories, is businessman David Ross. He has donated just under £1.5m to the party in a whole series of donations since 2001, so patience does finally pay off.
Crossbench peers
1) The Rt Hon Sir Brian Leveson - Investigatory Powers Commissioner. Former President of the Queen’s Bench Division and Lord Justice of Appeal. Former Chair of the Sentencing Council and Chair of the Leveson Inquiry into the Culture, Practices and Ethics of the Press.
2) Sir Chris Wormald KCB - Former Cabinet Secretary and Head of the Civil Service.
Foreign Office accused of abandoning countries 'on frontlines of conflict and climate crisis' as details of aid cuts revealed
The Foreign Office has announced details of its aid cuts over the next three years.
The figures are set out in its annual report, which fleshes out in detail the impact of cuts already announced by the government. Keir Starmer announced huge cuts to aid spending last year to free up more money for defence.
Commenting on today’s figures, Monica Harding, the Lib Dem international development spokesperson, said:
The government has announced the details of its reduced UK aid budget, outlining the funds allocated to each country.
The latest figures make grim reading, with a 56% cut to Africa, 39% to Afghanistan and 55% to Syria …
UK aid and development saves lives, promotes Britain’s influence, while also keeping us safe here in the UK. The government’s short-term decisions to slash aid only makes us more vulnerable here at home.
I urge the new prime minister to change course and repair the damage these cuts have already done.
He has a chance to turn things around, but time is running out
Romilly Greenhill, CEO of Bond, a network of aid organisations, said in a statement:
By slashing UK aid funding to countries like Ethiopia, Malawi, Mozambique, Rwanda, Sierra Leone and Uganda, this Labour government is abandoning communities on the frontlines of conflict and the climate crisis and risks plunging these countries populations into poverty and instability.
While the foreign secretary has repeatedly stated that fragile and conflict affected countries will be prioritised and protected such as OPT [the occupied Palestinian territories], Sudan and Ukraine, cuts to countries such as Afghanistan, DRC, Myanmar, Somalia and Syria tell a different story.
Here is an extract from the Bond briefing itemising the cuts set out in the Foreign Office document.
-Malawi will see a gradual cut by 90% in comparison to pre-cut levels, from £50mn in 2025/26, to £20mn in 2026/27, £10mn in 2027/28 to only £5mn in 2028/29.
-Mozambique will also see gradual reduction by 90% in comparison to pre-cut levels, from £50.5mn in 2025/26, to £27.8mn in 2026/27, £15.9mn in 2027/28 to only £5mn in 2028/29.
-Rwanda will see a gradual reduction by 83% in comparison to pre-cut levels, from £28mn in 2025/26, to £12mn in 2026/27, £6.6mn in 2027/28 to £5mn in 2028/29.
-Sierra Leone will see gradual cuts by 83% from pre-cut levels, from £16mn in 2025/26, to £9mn in 2026/27 and then £5mn from 2027/28 onwards.
-Somalia will see a gradual reduction by 49% from pre-cut levels, from £107mn in 2025/26, to £69.2mn from 2026/27 onwards.
-Uganda will see a 59% gradual cut in comparison to pre-cut levels, from £43mn in 2025/26, to £20mn in 2026/27, and £18mn from 2027/28 onwards.
Sadiq Khan given seat in Lords, as Starmer creates 26 new peers days before he leaves No 10
Pippa Crerar is the Guardian’s political editor.
Sadiq Khan has been given a peerage by Keir Starmer just days before the prime minister stands down, potentially opening the door to one of Labour’s most high profile mayors joining Andy Burnham’s cabinet in future.
While Burnham and Khan have worked closely together over the years, the Guardian understands the London mayor has told the PM-in-waiting he has no wish to be a minister in his government right now. Sources close to the mayor said he was committed to focusing on the last two years of his current term, and has not yet announced whether he wants to seek a fourth term in 2028.
Burnham has previously called for an overhaul of the House of Lords, proposing to turn the second chamber into a ‘senate of regions and nations’, with seats for the country’s metro mayors, presumably also including London.
Downing Street sources suggested Khan’s elevation comes as part of a regular honours list, rather than being linked specifically to Starmer’s departure. But the timing is unusual, with peerages usually tied to political events and most commonly appearing in spring or autumn.
It comes after Starmer signalled last week that he could hand out resignation honours when he leaves Downing Street, despite pledging three years ago he would not do so when he eventually stood down.
The full list of 26 people getting peerages is here.
Updated
Lisa O’Carroll is a senior Guardian correspondent covering post-Brexit issues.
Nick Thomas-Symonds is hoping to stay in post as EU relations minister in the new Andy Burnham cabinet.
EU diplomats also believe he has a decent chance, given that Burnham has no desire to introduce uncertainty to the repaired relations with the EU.
Speaking at an event marking his departure and retirement, the EU ambassador to the UK, Pedro Serrano, said the “remarkable ... progress” in transforming the shattered relations with the UK after Brexit had been partly down to the “direct involvement” of Thomas-Symonds.
He said the next EU-UK summit would mark the conclusion of several key agreements developed under Keir Starmer.
Thomas-Symonds spoke of the “legacy of cooperation” he had built with the EU over the last three years (including when Labour was in opposition). “We look ahead to the next summit, where we continue to deliver on the issues that matter to citizens and to businesses,” he said.
And, while I’m plugging Guardian content on Andy Burnham, do read the first instalment of Daniel Boffey’s excellent long profile of Burnham. This is how it starts.
Andy Burnham had emerged victorious, but niggling doubts remained about his mandate. It was the summer of 1987 and the 17-year-old had represented Labour in a school hustings as Margaret Thatcher and Neil Kinnock were battling it out in that year’s general election.
“Andy was standing against another guy, a really nice guy who was the Conservative candidate,” said Steve Harrington, a former English teacher at St Aelred’s Catholic high school, in Newton-le-Willows, Merseyside. “Andy gave a speech, which was excellent, then the other guy came on to make his speech and Andy’s fans – unbeknown to Andy – snatched the plug out of the microphone. So they couldn’t hear what he was saying. Andy won by a landslide. Having said that, he probably would have anyway, as it was a heavily Labour area … But he was innocent, he hadn’t been involved in [the prank] and wouldn’t have been.”
If there was a whiff of illegitimacy to Burnham’s first election, his uncontested selection by the Labour party to be the UK’s next prime minister now leaves him with a particularly fraught task: create the change he has promised without clear electoral backing. He will need to outline a vision more sharply than the outgoing prime minister, Keir Starmer, defying his critics’ caricature of him as a man without principle: a “Captain Flip-flop”.
(Do read the second instalment too – but it’s not out yet.)
The latest episode of the Guardian’s Politics Weekly UK is out. It features Pippa Crerar and Kiran Stacey talking about Shabana Mahmood being lined up to be Andy Burnham’s chancellor.
MI5 lied about relations with neo-Nazi informant, watchdog says
MI5 has been reprimanded by a watchdog for lying about its relationship with a neo-Nazi informant, who had exploited his role with the spy agency to violently threaten his girlfriend. Dan Sabbagh has the story.
Tories accuse Reed of 'gerrymandering local government for party political advantage'
The Tories have claimed that Steve Reed’s council reorganisation for England (see 1.50pm) is designed to help Labour.
James Cleverly, the shadow local government secretary, said:
The maps speak for themselves: these top-down changes are purely partisan.
Having tried and failed to cancel local elections two years running, Steve Reed is once again fiddling with democracy. His legacy will be one of taking power away from local communities, imposing an unfair funding review on councils, and gerrymandering local government for party political advantage.
As an example, the Tories said Reed was expanding the boundaries under Labour control like Exeter city council, Plymouth city council and Lincoln city council.
Ministers shelve plan to stop paying volunteer coastguards
Ministers have shelved a plan to stop paying volunteer coastguards for attending rescues.
In a written ministerial statement today, Keir Mather, a transport minister, said the government would not go ahead with a proposal to move the service to an “expenses-only volunteer model” in September in the light of the backlash the original plan provoked.
He said there would be further consultation on how to move ahead.
The Maritime and Coastguard Agency (MCA) originally took the decision to stop paying volunteers for call-outs after a court of appeal ruling said that this arrangement meant that they counted as workers in legal terms. The MCA argued that, in order to retain flexibility, it would be better to have the coastguards operating on an expenses-only basis.
Responding to the announcement, Richard Holden, the shadow transport secretary, said:
We welcome this latest U-turn from Labour, but they should never have let it get to this situation in the first place.
Our coastguard rescue officers bravely put their lives at risk day in and day out. The least they deserve is a small payment in recognition of the vital work they do.
Reed gives details of how more than 100 councils to be axed as part of unitary authority reorganisation plan for England
Steve Reed, local government secretary, has confirmed plans for councils to be reorganised in 14 areas.
The government was already committed to getting rid of the two-tier council system in place in large parts of England. This system results in people having some services provided by a big country council and other services provided by a smaller, separate district council.
Reed is introducing unitary councils instead, which will mean residents just having to vote for one council that will provide all their main local authority services. Some places already have unitary councils, but Reed is making them universal.
Today Reed announced details of how that will happen in 14 county areas.
In a statement to MPs, Reed said:
Once all decisions are taken, we will have cut the number of councils from 317 to a maximum of 173.
This will simplify and strengthen local government serving over 20 million people and reorganisation’ll also support city growth.
Reed described this as “the most ambitious programme of local government reform in a generation, replacing the inefficient two-tier system with new unitary councils so that all parts of our country are ready for devolution”.
There are further details here.
And here is the government’s list of the 14 county areas affected, and the decisions taken about how many unitary councils they will get.
1) Gloucestershire: 7 councils being reorganised into 1 unitary. This will unite the Gloucester-Cheltenham growth corridor and Golden Valley cyber cluster under one council, with reorganisation expected to deliver savings by reducing duplication across services and leadership.
2) Derby and Derbyshire: 10 councils being reorganised into 2 unitaries. This will let Derby expand in all directions while reflecting the county’s distinct north/south geographies and creating two strong partners in the East Midlands Combined County Authority.
3) Warwickshire: 6 councils being reorganised into 2 unitaries. This will allow each new council to focus on the specific needs of its communities, tackling health inequalities in the north and improving access to services for older and rural residents in the south.
4) Worcestershire: 7 councils being reorganised into 2 unitaries. This will reflect the county’s different economies and identities in the north and south, balancing scale with staying connected to communities.
5) Oxfordshire: 6 councils being reorganised into 3 unitaries. This will address Oxford’s housing constraints, better reflect the city’s economic geography, and ensure Oxford has its own seat at the table when regional powers and funding are agreed with government.
6) Hertfordshire: 11 councils being reorganised into 4 unitaries. This will reflect the county’s distinct economic areas, keeping public services organised around where people live, work and travel.
7) Leicester, Leicestershire and Rutland: 10 councils being reorganised into 2 unitaries. This will expand Leicester’s boundary to reflect how the city actually functions, unlocking around 30,000 homes and 67 hectares of employment land, and creating a stronger platform for future devolution.
8) Nottingham and Nottinghamshire: 9 councils being reorganised into 2 unitaries. This will bring most of Nottingham’s urban area under one council, supporting the Mayoral authority’s growth ambitions and creating a more balanced urban-rural mix.
9) East Sussex and Brighton and Hove: 7 councils being reorganised into 2 unitaries with boundary modifications. This will expand Brighton and Hove’s planning footprint and tax base to tackle housing unaffordability and support growth across connected communities.
10) Staffordshire and Stoke-on-Trent: 10 councils being reorganised into 2 unitaries. This will support Stoke’s growth opportunities across a natural north/south split, minimising service disruption and achieving strong financial sustainability.
11) Lancashire, Blackburn with Darwen and Blackpool: 15 councils being reorganised into 4 unitaries. This will reflect Lancashire’s diverse urban, rural and coastal communities, aligned with existing economic areas and transport links, with a clear structure for future devolution.
12) Kent and Medway: 14 councils being reorganised into 4 unitaries. This will align councils with housing markets and local need, support Medway’s growth, and maintain locally responsive services while strengthening local voices through neighbourhood committees.
13) Devon, Plymouth and Torbay: 11 councils being reorganised into 4 unitaries. This will align boundaries with economic geography to unlock housing and infrastructure growth, supporting Plymouth’s defence sector and Exeter’s expansion as key urban engines.
14) Lincolnshire, North Lincolnshire and North East Lincolnshire: 10 councils being reorganised into 4 unitaries. This will give Lincoln the space to grow while striking the best balance between urban and rural service delivery and securing Lincoln a distinct voice in devolution
Starmer announces UK investment to help deliver Swedish fighter jets to Ukraine
In Kyiv Keir Starmer has held a press conference with the Ukrainian president, Volodymyr Zelenskyy. Starmer said the mood was shifting in Russia, with Vladimir Putin being “forced to admit that his illegal invasion is causing real problems at home for him.”
Jakub Krupa has more on the Starmer visit, and the backlash Zelenskyy is facing about his decision to sack his defence minister, on his Europe live blog,
To coincide with the trip, Starmer has also announced that the UK is “investing €300m to help deliver advanced Swedish Gripen fighter jets to Ukraine, strengthening Ukraine’s ability to defend its skies from Russian attacks, while supporting thousands of highly skilled jobs across the UK.”
ITV’s political editor Robert Peston has also weighed in on Andy Burnham’s probable decision to make Shabana Mahmood his chancellor. Peston, who is unusual among political editors in having spent a lot of time covering business and economics, thinks the decision is likely to go wrong.
Here’s an extract from his post.
According to those who know Burnham’s mind, he and his transition team just want someone at Number 11 who will simply execute their will. The plan is to drive the economy from 10 Downing Street.
On this model, poor Mahmood would be a cipher for Burnham and his cabal. And she would be a fabulous cipher at that, because her revealed skill at the Home Office is to brook no opposition from officials and to drive reform.
If this is Burnham’s plan, it is hugely risky, and I suspect it would end in tears.
Burnham won’t personally have the time to micromanage the Treasury. No prime minister does.
And the Treasury, like no other department, can only be led by someone - the Chancellor - with personal expert authority and a plan. In all other circumstances, the Chancellor is led by officials.
Also I very much doubt Mahmood would allow herself to be any prime minister’s puppet or cipher in any case.
Nationalising British Steel does not mean Labour 'going back to 1970s', minister tells MPs
Nationalising British Steel does not mean Labour is going back to the 1970s, a minister told MPs.
Blair McDougall, a business minister, was speaking in the Commons in response to an urgent question about the British Steel announcement.
Rebecca Paul, a Conservative asked him:
Britain’s steel industry is not competitive because of high energy costs and excessive red tape.
But instead of addressing the root causes, this Labour government reverts back to its default solution of nationalisation. Why is this government so keen to take us back to the 1970s?
And McDougall replied:
I simply don’t accept the idea that we’re all going to be in flares and wearing kipper ties and going back to the 1970s simply because we have a government which is willing to intervene rather than standing by and letting people and communities fall onto the scrapheap.
The Conservatives and the Liberal Democrats, like business secretary Peter Kyle (see 9.47am), are also sounding off about the “Las Malvinas son Argentinas” banner waved by Argentinian players after they beat England in the World Cup semi-final last night.
Although it could be seen as a harmless taunt, the Conservatives have put out this statement from their shadow sports minister, Louie French.
The Falklands are British. That is not up for discussion.
Last night’s pathetic stunt by the Argentinian team was shameful and Fifa must the throw the book at them.
And Ed Davey, the Lib Dem leader, said:
In August 2024 Rodri and Álvaro Morata were rightly banned for one match for singing “Gibraltar is Spain”.
Now the Argentine players who celebrated with the “Falklands are Argentine” banner must be barred from the final.
Sienna Rodgers from the House magazine has more on the Green party reaction to Shabana Mahmood being lined up to be Andy Burnham’s chancellor.
Green Party source on briefings Ed M won’t be chancellor: “The Labour briefings on the chancellor are a gift to us. Openly highlighting they don’t want change, briefing that the bankers don’t want Miliband, surreal levels of hitting the ball over the bar.”
Ministers give further details of how proposed fair pay agreements for care sector will work
Ministers have published new details of how the proposed fair pay agreements for workers in the care sector will work.
Stephen Kinnock, the care minister, has set out the plans in a written ministerial statement. And this is how the Department of Health and Social Care explains them in a news release.
Millions of care workers in England will be represented in upcoming negotiations on pay and working conditions through a new body established to deliver the first ever fair pay agreement for adult social care.
The new adult social care negotiating body will be set up by the end of the year, bringing together trade unions and employers to negotiate on behalf of the sector.
Through the body, care providers and workers will have voting rights on key issues including pay, terms and conditions, and wider employment matters through a regular negotiation process.
The body will also have an independent chair to oversee the negotiations between employer and worker representatives, who will be appointed in early 2027.
The first fair pay agreement for the sector is due to come into force in 2028-29. The government is investing £500m to help fund it.
Peter Kyle, the business secretary, has told workers at British Steel that nationalisation should give them certainty.
On a visit to the plan in Scunthorpe this morning, he said:
I know you’ve gone through a period of real uncertainty. And I know that uncertainty here means uncertainty for the whole community and the whole town as well.
I’ve been hearing about this loud and clear, and it’s been in the forefront of my mind.
But now you have certainty.
Ministers launch consultation on liberalising wedding venue laws for England and Wales
Couples could legally marry in forests, on beaches, at sea or in their gardens under new proposals, the Press Association reports. PA says a government consultation announced today, covering rules in England and Wales, could help cut the costs of weddings and mean two ceremonies are no longer required to cover different faiths. PA says:
The average wedding in England is estimated to cost more than £20,000, with venue hire alone typically accounting for around £6,000 without catering.
The system as it stands means some couples have two ceremonies – one where they feel their beliefs are best reflected and another making their marriage legal.
The Ministry of Justice (MoJ) said under proposed changes couples could more easily have legally recognised religious ceremonies, and that humanists could be allowed to carry out legally binding weddings for the first time.
Currently venues are licensed for weddings but the plans propose changing that to the celebrant, allowing couples to marry in any location.
Under the consultation, running from Thursday to September 24, forests, beaches, castles, canal boats and cruise ships at sea could become places to legally marry.
These reforms were first proposed by the Law Commission almost six years ago.
UK economy grew by 0.1% in May despite impact of Iran war
The UK economy returned to growth in May, despite the impact of the Iran war on energy costs, official figures show. Heather Stewart has the story.
Mahmood tipped for chancellor - how commentators are responding
Here is some reaction from journalists and commentators to the news that Shabana Mahmood is now expected to be Andy Burnham’s chancellor.
From Jennifer Williams, the FT’s Northern England correspondent
It seems to me there are a few reasons Burnham might choose Mahmood over Miliband despite bluesky thinking it’s outrageous. Many of them are not-ed reasons but not all
Ed basically has the potential to be too powerful. His own agenda (people don’t fundamentally change) coupled with a known ability to drive it through Whitehall, would be a rival for the centre of gravity, when the PM is still trying to set his own after a decade away
Secondly I have never ever thought the words “Ed Miliband” in well over a decade of coveting English devolution, despite him having a northern seat. That feels telling
Yes there’s the obvious immediate warring Labour factions going on, good to see that didn’t wait for Monday. But I wouldn’t really put Andy and Ed in the same bracket politically anyway. “Soft left” is unhelpfully vague and AB is actually quite hard to categorise, not least bc he moves
I think Shabana and Andy are closer than ppl might think in outlook. On immigration he’s not that fluffy - and his latest seat (almost the same as the old one) carries the same imperative. Where he would balk I think is if it feels cruel to him: some of the Morgan era rhetoric feels unlikely
I saw a clumsy quote from a Labour source earlier about Ed being London liberal and some of Andy’s people being working class northerners. These are distinctions that wind people up. But there is, from where I’m sitting, a difference in how these people view things, their electorates for one!
Finally, the markets. But if that was AB’s primary concern - ie if he was that worried Ed would freak them out - it may not have taken this long to reach a decision, assuming the decisions stands into Monday
NB I know Ed’s electorate is in Doncaster. I’m not sure it’s particularly reflected in his outlook, but it is in AB’s.
From the Guardian columnist Owen Jones
Where to even begin with these Labour briefings!
1) Louise Haigh is not working class.
I get that she has a Northern accent, but she is the privately educated daughter of a solicitor.
2) Blocking Ed Miliband from becoming Chancellor because of net zero during rolling heatwaves is a sign of abject political bankruptcy.
3) All of this indicates that Andy Burnham doesn’t have any clear sense of what he wants to do with power.
We’ve seen that film before, and we know how it ends.
4) The fact that there is all this chaotic briefing and counter-briefing already is a very bad sign indeed.
It’s itself a sign of a lack of central direction.
5) Shabana Mahmood as Chancellor just means the Treasury running economic policy, and the government sticking to the same agenda as before.
From Lucy Fisher, Whitehall editor at the Financial Times
What to expect from a Shabana Mahmood chancellorship?
She’s a migration hardliner and social conservative, who rejected Corbyn’s hard-left economic agenda in 2015
But on tax, spend & growth policies she’s been tight-lipped in recent years, leaving investors uncertain about what to expect if (as anticipated) she arrives in No 11 next week
One UK bank board member says her right-of-centre politics “would point to a [Rachel] Reeves continuity, which is the best we could hope for”
But Labour deputy leader Lucy Powell says Mahmood is in favour of “big change” and a “radical platform”
From the broadcaster and writer Steve Richards
If Shabana Mahmood is chancellor it’ll end in tears…quickly. Through no fault of her own she’s given little thought to economic policy and yet likes to make a splash as a minister. There will be no rapport with Andy Burnham. The media and market will approve..until they turn.
From Duncan Weldon, the economist and writer
I remain unconvinced that someone who has expressed no previous interest in fiscal policy, has no obvious economic policy expertise and whose views on the topic are unknown is an ideal candidate for Chancellor.
FWIW:
Miliband - obviously qualified. Effective minister. Brings political baggage. Probably (and somewhat unfairly) gets a negative market reaction.
Cooper/Reynolds - well qualified for the job. Less baggage, markets more neutral.
Streeting - has set out an agenda, markets probably welcome.
The flip side of a CHX not known to have especially strong views on economic policy is a bigger role and say for a beefed up Number Ten. Suspect Number Ten North, MHCLG, DBT, Transport, etc will have a larger role.
You absolutely do not need any formal training in economics to be a successful chancellor.
(And I’d add - the same is true of central bankers).
But it does help to have shown an active interest in economic policy debates.
Making Shabana Mahmood chancellor shows Burnham 'subservient to City' bankers, Green leader Zack Polanski says
Zack Polanski, the Green party leader, says reports saying Shabana Mahmood is now set to be Andy Burnham’s chancellor have shown he would be “subservient to the City”.
Polanski posted this on social media this morning.
We don’t know what the cabinet will be yet, but the mood music is ominous.
A Labour Party subservient to the City of London and harking back to the Blair years would be catastrophic for this country.
People simply won’t stand for Rip Off Britain any more.
And he posted this on a tweet that also included a picture of today’s Financial Times splash.
“City relieved” = Burnham’s government won’t challenge the power of the bankers, or tax their wealth.
Who is choosing our politicians - the people or the banking sector?
Updated
Argentina’s players’ Falklands banner entirely inappropriate, Kyle says
Argentina’s players’ behaviour was “entirely inappropriate” when they waved a banner in support of their country’s claims to the Falkland Islands after their World Cup semi-final win against England, Peter Kyle has said. As the Press Association reports, Argentina, the defending champions, beat the Three Lions 2-1 in Wednesday’s match in Atlanta. PA says:
Argentina fans celebrated their victory jubilantly, with some near the pitch holding a banner which read “Las Malvinas son Argentinas”, which translates to “The Falkland Islands are Argentinian”.
The banner referring to the dispute over the British overseas territory made its way to the players, who held it up as they revelled in their win.
They could face the prospect of disciplinary action from governing body Fifa for violating rules banning political messaging on the pitch.
Asked about Argentina’s players brandishing the banner, Kyle, the business secretary, told BBC Breakfast: “My reaction is that it was entirely inappropriate. Politics needs to be separate from football. In fact, the World Cup has one of its central tenets that politics is separate from football.
“That is now a matter for Fifa. I expect Fifa to do its investigation thoroughly.”
Kyle says independent assessor will decide if Jingye gets any compensation for British Steel nationalisation
Peter Kyle, the business secretary, has said it is possible that Jingye, the Chinese firm that used to own British Steel, won’t receive any compensation for its nationalisation.
Asked about this on Times Radio, Kyle said:
The legislation that went through parliament, which I saw through parliament, has a mechanism by which an independent assessor will now judge if or if not any compensation is due.
Asked if it was possible that no compensation might be paid, Kyle replied:
There is that possibility. That is now the decision of the independent assessor that will make that decision.
Allan Bell, British Steel’s interim chief executive, has welcomed the news that his company has been nationalisted. In a statement, he said:
This is a momentous day for British Steel, and everyone connected with our business – our dedicated employees, our valued customers and suppliers, and the tens of thousands of people in our supply chains and local communities.
Much more than that, it is an historic day for Britain and UK manufacturing – one which safeguards our future and strengthens national security and infrastructure.
Reform UK says it is 'good government has finally listened' to its call for British Steel nationalisation
Reform UK is taking some credit for the British Steel nationalisation, because the party called for this earlier this year.
Richard Tice, the Reform UK deputy leader, issued this statement, asking for an assurance that the Chinese company Jingye won’t be paid compensation.
Reform UK called for the nationalisation of British Steel back in April last year to secure Britain’s critical virgin steelmaking capabilities for the next 50 years. It’s good to see the government has finally listened.
We now need a bold strategy that backs British industry by ensuring the use of British steel in both public and private sector procurement, as well as scrapping net zero which is crippling our industry with sky-high energy costs. We must be proudly patriotic in buying British steel.
Compensation should be no more than £1. This business comes with huge liabilities and will require billions of pounds of investment to rebuild the blast furnaces. Taxpayers should not be rewarding failed ownership.
Reform UK’s support for steel nationalisation is significant because it is more or less the only policy the party has that allows Kemi Badenoch to make her claim that Reform is leftwing. On almost every other measure, Reform is very rightwing.
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Starmer arrives in Kyiv
Jakub Krupa has more coverage of Keir Starmer’s trip to Ukraine on his Europe live blog.
Starmer nationalises British Steel and visits Ukraine on last full day as Labour leader
Good morning. Conventional wisdom has it that, once a PM announces they are going to stand down, all their power vanishes faster than water down a clear plughole. Broadly that’s correct. But in the last week or so Keir Starmer seems to have been acting with a decisiveness that eluded him for most of his time in office: finalising the defence investment plan; delivering the long-awaited apology to victims of forced adoption; over-ruling the security services to deliver the concession that got the Hillsborough law bill over the line; and finally securing a conditional pardon for Ruth Ellis.
This is not happening because being on the way out makes a PM more powerful. But it does help them focus, and forces them to give up on faffing around.
And we’ve seen another example today. On his last full day as Labour party leader, Starmer has nationalised British Steel.
In truth, this is something that has been in the pipeline for a while. But the steel industry (nationalisation) bill only got royal assent yesterday, and the government has used it to nationalise a company which was previously owned by the Chinese company Jingye and which was already under public control.
Here is the government’s news release. Here is our story by Jasper Jolly.
In a statement, Starmer said:
British Steel is part of the fabric of our nation and a cornerstone of Britain’s industrial strength.
Today’s decision secures the future of steelmaking in the UK, protects skilled jobs and safeguards a vital national capability.
This government will always act in the national interest to support British industry, strengthen our economy and ensure the industries we rely on can thrive long into the future.
But Starmer, who will be replaced by Andy Burnham as Labour leader tomorrow, and by Burnham as PM on Monday, won’t be at the British Steel plant in Scunthorpe to mark this. Instead he is on a visit to Ukraine.
As Starmer ties up his legacy, there is increasing focus on what Burnham will do when he takes office next week. As Pippa Crerar, Jessica Elgot and Kiran Stacey report, it is now thought that Burnham will appoint Shabana Mahmood, the current home secretary, as his chancellor.
Until recently Ed Miliband, the energy secretary, was favourite to be Burnham’s chancellor.
Here is the agenda for the day.
Morning: Keir Starmer is in Kyiv for a meeting with Volodymyr Zelenskyy, the Ukrainian president.
Morning: Peter Kyle, the business secretary, is expected to visit British Steel.
10am: Jeremy Pocklington, permanent secretary at the Ministry of Defence, gives evidence to the Commons public accounts committee about the defence investment plan.
11.30am: Downing Street holds a lobby briefing.
Afternoon: Kemi Badenoch is on a visit in Aberdeen.
And it is the final day the Commons is sitting before the summer recess. That means lots of written statements. There are 22 on the order paper, including ones covering local government reorganisation, the fair pay deal for care workers, the future of the undercover policing inquiry and laws relating to weddings.
I am afraid we are not able to open comments today for staffing reasons.
But if you want to contact me, do use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X, but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
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