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The Guardian - UK

Business

Heather Stewart

The world has changed – it’s time for a radical Labour rethink on the economy

Starmer Rachel Reeves Donald Trump Economy United Kingdom David Lammy United States

a camouflaged soldier lies on the ground with his rifle during Nato military exercises — As the peace dividend has evaporated, Labour and the UK need new ways to fund higher defence spending. Photograph: Robert Ghement/EPA

Principled political resignations are rare at Westminster, so Anneliese Dodds’s departure on Friday, over Labour’s cuts in aid to fund defence spending, was a significant moment.

In her powerful resignation letter, Dodds rightly highlighted the heavy costs of the cuts for some of the world’s poorest people, compounding the damage caused by the Trump administration shutting US aid projects.

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