Keir Starmer announces new ‘once in a generation’ UK-Germany treaty
In a press conference alongside Olaf Scholz, Keir Starmer said he was “delighted” to be back in Germany “at this moment of opportunity for our two countries”.
Starmer announced a new UK-Germany treaty, describing it as a “once in a generation chance to deliver for working people in Britain and in Germany”.
Starmer added:
A new agreement, a testament to the depth an potential of our relationship. With deeper links on science, technology, development, people, business [and] culture. A boost to our trading relations.
Germany, of course already the UK’s second largest trading partner in the world, and through that a chance to create jobs here and in the United Kingdom. And to deliver that most precious of goods for both of our countries: economic growth.”
Key events
After Scholz gave a speech in German, Starmer spoke to share his “sincere condolences for the shocking attack in Solingen last week”.
He added:
Our country knows what it is like to experience such senseless and despicable acts and our thoughts are with all the families affected by this terrible event.”
German chancellor Olaf Scholz started the press conference by congratulating Keir Starmer on becoming prime minister. “Germany and the United Kingdom are good friends, close partners and trusted allies,” added Scholz.
Scholz said:
The both of us will be working hard to ensure that this relationship continues to thrive.”
Keir Starmer is due to hold a press conference with Olaf Scholz soon. You can watch via the live stream at the top of the page. You may need to refresh the page for it to come up.
Chancellor Rachel Reeves has refused to rule out a rise in inheritance tax or capital gains tax, reports the PA news agency.
Asked directly whether she could rule out the tax increases, she replied:
I’m not going to write a budget two months ahead of delivering it. We’re going to have to make difficult decisions in a range of areas.”
Speaking to broadcasters in Scotland on Wednesday, Reeves said:
The UK economy is just emerging from the recession that we entered into last year, and two quarters of positive economic growth is not going to reverse more than a decade of economic stagnation.
Much work is needed to rebuild the foundations of our economy so we can rebuild Britain and make working people better off, and that is why growing our economy is absolutely essential.”
She continued:
Unless we grow the economy, we’re going to continue to be in a situation where taxes are at too high a level and public spending is not sustainable.
We’ve got to break out of this doom loop, which is why growing the economy is the number one priority of this new government.”
Chancellor Rachel Reeves has said the Scottish government is “as guilty” as the Tories on the country’s finances.
Experts from the Scottish Fiscal Commission (SFC) said on Tuesday Scottish ministers may struggle to balance the country’s budget due to above-expectation public sector pay deals, the council tax freeze and benefit reforms, as well as uncertainty about the level of funding coming from Westminster.
While the Scottish government attacked decisions made at Westminster for the country’s financial strife, the chancellor used a visit north of the border to hit back, reports the PA news agency.
“The SNP Government is as guilty as the Conservative government of spending more than they were bringing in, and now the Scottish government are having to make difficult decisions,” she said.
Reeves added:
Anas Sarwar and the Labour opposition in Scotland were warning the SNP about the unsustainable position they were in.
They SNP refused to listen, they made decision that were not sustainable and now it is Scottish people who are paying the price for the decisions of the Scottish government.”
Chancellor Rachel Reeves defended the decision to restrict winter fuel payments despite rising energy bills.
The PA news agency reports that Reeves told broadcasters in Scotland:
When I became chancellor of the exchequer, I inherited a £22bn black hole in the public finances.
Taking no action wasn’t an option, because that would have made it difficult for the government to finance its needs, and we would have ended him up in the same position that the previous Conservative government ended up in, with mortgage rates and interest rates spiking and pensions being put in peril.
So we had to take difficult decisions in very challenging circumstances, because the previous government was overspending by £22bn just this year alone, and we’ve had to take action to get approval for public finances.”
She added:
It’s not decision I wanted to make. It was a decision that I had to make in incredibly challenging circumstances to put our public finances on a firm footing.”
Here is our main story on Keir Starmer’s visit to Berlin today, courtesy of my colleagues, Peter Walker, Lisa O’Carroll and Kiran Stacey. Published prior to Starmer’s trip on Wednesday, they wrote:
Keir Starmer has promised to “turn a corner on Brexit” and rebuild productive relationships with EU member states in advance of a flying visit to Berlin for talks with the German chancellor, Olaf Scholz, expected to focus on defence and trade.
The prime minister said the trip was part of wider efforts to restore the “broken relationships” with European neighbours left by the last government.
It was, he added, a “once-in-a-generation opportunity to reset our relationship” with Europe.
Starmer, who will head on to Paris on Wednesday to see Emmanuel Macron and attend the opening of the Paris Paralympics, will also meet German business leaders and the German president, Frank-Walter Steinmeier, in a stopover lasting less than 18 hours.
His attempt to renegotiate Britain’s European relationships is part of a broader strategy of taking controversial decisions early on in his term as prime minister and reap the rewards for them closer to the next election.
You can read the full report here:
Rachel Hall
Lots of pensioners will need support this winter who won’t be eligible for the new winter fuel payment threshold, an ex-Labour minister has warned.
Speaking to BBC Radio 4’s Today programme, Chair of the Committee on Fuel Poverty Caroline Flint said that although the existing scheme was “poorly targeted”, since not all the 10 million pensioners need it to pay their bills, the new plans are too narrow.
“There needs to be consideration in the budget in the autumn of a winter plan for many, many people – pensioners and other households,” she said.
“There are some different ways in which the government could think about mitigating the impact of the loss of the winter fuel payment, and direct[ing] it those more in need. But again there are be people who will be above the pension credit threshold that currently stands as the option that need more help as well.”
Flint suggested several solutions, including endorsing consumer champion Martin Lewis’ suggestion to use council tax bands A-D, since these serve as a proxy for the neighbourhoods people live in and the income bands in those areas.
She also suggested widening the pool of people eligible for the warm homes discount.
Flint said she hoped there would be “a better plan going forward” coming out of the energy summit happening on Wednesday, which will see energy minister Miatta Fahnbulleh meet with energy supplier CEOs and Ofgem, Energy UK and Citizens Advice.
In the longer term, Flint said it was important to have “secure sources” of energy, such as renewables and low carbon options, to reduce costs, as well as to promote a “fabric first approach” to make homes warmer and reduce energy bills.
Anna Bawden
Vapes should only be sold from “behind the counter”, like cigarettes, and not be on display in shops, according to the British Medical Association.
In a report published on Wednesday, the doctors’ union called on ministers to introduce legislation to tackle the “growing epidemic” of vaping in the UK.
According to recent analysis by Action on Smoking and Health (Ash) 5.6 million adults in Britain vape, about 11% of the adult population. Vape use among children and young people has increased almost six-fold in the last decade, with 7.6% of 11-17 year olds now vaping, either regularly or occasionally, compared with 1.3% in 2014.
Vapes can help some people stop smoking, but they are not risk-free. Last year, the World Health Organization called for “urgent action” to protect children from e-cigarettes. Vaping can lead to nicotine addiction, while some devices have been found to contain other harmful substances, such as lead, or even spiked with the synthetic drug spice.
Labour announced in July’s king’s speech that it would revive the previous government’s tobacco and vapes bill. The Conservative’s proposed legislation included measures to ban disposable vapes and restrict flavours and packaging, but was shelved after the general election was called. Details of the exact regulations Labour wants to introduce have yet to be published.
The BMA said given the rising number of children and young people trying and smoking vapes, the government “must not shy away from taking brave action”.
You can read the full piece here:
Earlier today, Keir Starmer met German president Frank-Walter Steinmeier at the Bellevue Palace in Berlin, the first British prime minister to visit the palace since David Cameron in 2015.
According to the PA news agency, Steinmeier had made the invitation after they met earlier this summer at Euro 2024.
Starmer signed the palace guestbook in the entrance hall, which had been decorated with red, white and blue flowers, before holding a private bilateral meeting with Steinmeier.
Keir Starmer meets Olaf Scholz in Berlin
Keir Starmer has arrived at the German chancellery for his meeting with Olaf Scholz.
He was welcomed by Scholz and an honour guard of German soldiers as a military band played God Save The King and the German national anthem. The two men then went inside the chancellery for their bilateral meeting, at which they are expected to discuss a proposed treaty between the UK and Germany as well as other matters including the war in Ukraine.
Keir Starmer says he wants to ‘turn a corner on Brexit’ as he travels to Berlin for talks
Good morning and welcome to our coverage of UK politics as Keir Starmer meets the German chancellor, Olaf Scholz, on a flying visit to Berlin.
The British prime minister says he wants to “turn a corner on Brexit” with talks expected to focus on defence and trade.
But Nils Schmid, the foreign affairs spokesperson for the SPD’s parliamentary group, told BBC Radio 4’s Today that Germany would like a deal on youth mobility, despite UK reservations about anything that would open the door to free movement of labour.
More on this shortly. In other developments:
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Keir Starmer has given his strongest hint yet of tax rises to come in October’s budget, warning he will have to make “painful” decisions after finding what Labour says is a £22bn black hole in the public finances. Giving his first major speech from No 10 since becoming prime minister, Starmer said on Tuesday it would take years to clean up after the previous Conservative governments, which he said had overseen “14 years of rot”.
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Chancellor Rachel Reeves is scheduled to be in Glasgow today on a growth-related visit. She will make a trip to a manufacturing centre and host a business roundtable.
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Energy firm bosses will meet the government on Wednesday to discuss support for vulnerable households ahead of the winter. Ofgem has recently increased the price cap and it comes as the government is withdrawing winter fuel payments from millions of pensioner households not in receipt of benefits.
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Scotland’s financial watchdog has said Scottish ministers are largely responsible for a spending crisis that is leading to deep cuts to non-essential services. The Scottish Fiscal Commission, which has a similar role to the Office for Budget Responsibility in London, said ministers in Edinburgh had spent heavily on public sector pay deals without proper planning.
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A man is due to be sentenced for throwing a coffee cup at Reform UK leader and Clacton MP Nigel Farage on his battlebus during the general election campaign. Josh Greally, 28, of Clowne, Derbyshire, admitted a public order offence and will be sentenced today at Barnsley magistrates court.
