‘High energy costs have held back businesses’, says Miliband as government announces industrial strategy – UK politics live | Politics
Miliband: 'High electricity costs have held back British businesses'
Energy secretary Ed Miliband has also commented on the announcement of the government’s promise to cut electricity costs for key business sectors.
He said:
For too long high electricity costs have held back British businesses, as a result of our reliance on gas sold on volatile international markets.
As part of our modern industrial strategy we’re unlocking the potential of British industry by slashing industrial electricity prices in key sectors.
We’re also doubling down on our clean power strengths with increased investment in growth industries from offshore wind to nuclear. This will deliver on our clean power mission and plan for change to bring down bills for households and businesses for good.
Chancellor Rachel Reeves said the plan would “see billions of pounds for investment and cutting-edge tech, ease energy costs, and upskill the nation.”
The government’s announcement can be found here.
Key events
The chancellor has joined other government ministers today in refusing to be drawn on whether the UK government thinks US strikes on Iran are legal or not.
Speaking to broadcasters, Rachel Reeves said “It is up to the US to make that case. We were not involved in these actions and, of course, we would never comment on the legal advice that the government receives.”
That line is slightly disingenuous, as prior to winning the election in 2024, the Labour party and shadow foreign secretary David Lammy had urged the then foreign secretary David Cameron to publish formal legal advice on whether Israel was breaching international humanitarian law in Gaza.
PA Media reports that Reeves continued by saying:
The Iranian regime has caused instability in the region for a long time and, of course, we share concerns [with the US] about that. The priority, though, at the moment is de-escalation and getting the Iranian regime back around the negotiating table. We believe very strongly that Iran should never be able to develop a nuclear weapon, but what is needed now is a return to the negotiating table to reduce that threat.
Reeves has been in Nuneaton with prime minister Kier Starmer, promoting the government’s new industrial strategy document.
Reeves talking to the media during a visit to Horiba Mira in Nuneaton. Photograph: Jacob King/PA
Green party's Denyer: industrial strategy is 'another missed opportunity' from Labour government
The Green party of England and Wales have responded to the government publishing its Modern Industrial Strategy for the UK document. Co-leader Carla Denyer said:
This industrial strategy looks like another missed opportunity from the Labour government. The move away from polluting oil and gas towards clean power offers huge wins for communities, for workers and for industry – but that requires government to make a clear plan to urgently phase out fossil fuels, make polluting companies pay to retrain workers, and to harness the skills and innovation this country has in bucket loads.
The investment in skills announced in today’s strategy is welcome, and the move towards clean sources of power like wind and solar offers huge opportunities for good-quality jobs in futureproofed industries.
But the failure to make a plan for those currently working in high-carbon industries is shortsighted. 3 million workers across the UK will need re-skilling and retraining in order to make the most of the green jobs boom, and fossil fuel giants must shoulder the cost of this.
We also need to see measures to ensure that all investment in the government’s GB Energy supports jobs and industries here in the UK rather than being lost overseas.
We have already seen decades of missed opportunities on this, leaving communities hollowed out and people forced out of work. This government must act fast to turn the corner and put Britain first in the race towards the economy of the future.
Denyer has announced that she is stepping down from the co-leader role later this year.
Davey: Starmer must appear before parliament over US strikes on Iran
The leader of the Liberal Democrats has called for the prime minister to make a statement in parliament in the wake of US strikes on Iran’s nuclear facilities and social media talk from Donald Trump about regime change in Tehran.
In a statement, Ed Davey said:
Trump’s strikes on Iran were a seismic moment which will have a profound effect on global security for many years to come.
But UK ministers are dodging questions on whether they support these strikes, and failing to guarantee that we won’t be dragged into another illegal American war in the Middle East.
The prime minister has not even spoken once in the Commons since this crisis began. He needs to come to parliament today, update the country on where the UK stands, and what he is doing to ensure the situation does not escalate any further.
The chair of the Labour party has described the Reform UK policy announcement of “the Britannia Card” as “a bonanza for billionaires.”
In a statement Ellie Reeves said:
Nigel Farage’s new policy is quite simply a bonanza for billionaires. Not only is this a golden giveaway to the rich, but experts warn this will leave a massive black hole in the country’s finances that working people will be left to pick up the bill for.
Reform UK is not serious or credible. Every family in the country would foot the bill for their dangerous and unfunded Liz Truss-style policies which would devastate Britain’s economy.
Rowena Mason
Rowena Mason, the Guardian’s Whitehall editor, has been at a Reform UK press conference this morning.
Nigel Farage has defended his plans to attract wealthy foreigners to the UK with a £250,000 tax giving them 10 years of residency, as Labour called it a “billionaire’s bonanza”.
In a press conference in London, attended by Zia Yusuf and party treasurer Nick Candy, Farage said he wanted to win back very wealthy people leaving the country and encourage them to spend money and create jobs in the UK.
Reform estimates 6,000 people would pay the tax and the proceeds would be used to give a £600 dividend for the lowest paid workers.
Farage rejected the idea that it was a Robin Hood tax, saying: “We are not stealing from the rich, we are encouraging them to come.”
Tax expert Dan Neidle suggested the policy could cost the UK £35bn over five years in lost revenue, highlighting the tax gap it would cause and arguing it would not get a high take up, especially as no government could guarantee a tax policy would be in place for 10 years.
Farage rejected this analysis as “nonsense”, with Reform sources saying those paying the £250,000 “landing fee” would still pay tax on any UK earnings – just not overseas gains.
Separately, the Reform UK leader said Israel and the US were right to attempt to destroy Iran’s nuclear capability by bombing it.
He also accused the attorney general, Richard Hermer, of being “frankly bordering on treacherous” for striking a deal to hand ownership of the Chagos Islands to Mauritius and lease back the military base there, claiming this had hindered the US bombing mission against Iran.
Asked whether he supported UK joining military action in Iran, he said: “I doubt they are going to ask for our help but they could do with our support.”
Matthew Pearce
The Liberal Democrats have said the government’s industrial strategy must mark a “new chapter” for British businesses.
Sarah Olney, the Liberal Democrat MP for Richmond Park and their business spokesperson, said:
If the Government is truly serious about backing British business, today’s announcement must be followed with U-turns on the damaging jobs tax and family farm tax – with revenue raised instead through the fairer ways we’ve set out – and negotiations on a new UK-EU customs union that will deliver new trading opportunities for businesses across the UK.
This strategy must contain real solutions to bring down businesses’ sky-high energy costs and upskill workers around the country.
Ministers must also ensure that across every sector, small businesses are right at the heart of this economic plan.”
Patrick Wintour
The Guardian’s diplomatic editor Patrick Wintour has this report on foreign secretary David Lammy’s comments this morning:
The UK foreign secretary, David Lammy, has repeatedly refused to say if the UK supported the US military strikes on Iran’s nuclear facilities on Saturday or whether they were legal.
Interviewed on BBC Radio 4’s Today programme on Monday for the first time since the US launched airstrikes on three Iranian nuclear facilities, he also sidestepped the question of whether he supported recent social media posts by Donald Trump that seemed to favour regime change in Tehran, saying that in all his discussions in the White House the sole focus had been on military targets.
Lammy said western allies were waiting for battlefield assessments of the impact of the strikes, but it was possible Iran still had a stockpile of highly enriched uranium, although the strikes “may also have set back Iran’s nuclear programme by several years”.
Ever since the US strikes, senior figures in the Labour government have tried to make their criticism of the action only implicit rather than explicit.
Lammy tried to focus on urging Iran to return to the negotiating table, insisting that Iran was in breach of its obligations by enriching uranium at levels of purity as high as 60%.
The UK Foreign Office has denied Iranian reports that in a phone call with the Iranian foreign minister, Abbas Araghchi, on Sunday, Lammy had expressed regret about the US strikes.
Asked if the airstrikes were legal, Lammy said three times it was for Washington to answer such questions.
You can read more of Patrick Wintour’s report here: David Lammy refuses to say if UK supported US strikes on Iran nuclear facilities
PA are carrying these quotes from health secretary Wes Streeting who has announced what he called “a rapid national investigation” into NHS maternity services.
For the past year, I have been meeting bereaved families from across the country who have lost babies or suffered serious harm during what should have been the most joyful time in their lives.
What they have experienced is devastating – deeply painful stories of trauma, loss, and a lack of basic compassion – caused by failures in NHS maternity care that should never have happened. Their bravery in speaking out has made it clear: we must act – and we must act now.
I know nobody wants better for women and babies than the thousands of NHS midwives, obstetricians, maternity and neonatal staff, and that the vast majority of births are safe and without incident, but it’s clear something is going wrong.
That’s why I’ve ordered a rapid national investigation to make sure these families get the truth and the accountability they deserve, and ensure no parent or baby is ever let down again. I want staff to come with us on this, to improve things for everyone.
We’re also taking immediate steps to hold failing services to account and give staff the tools they need to deliver the kind, safe, respectful care every family deserves.
Maternity care should be the litmus test by which this government is judged on patient safety, and I will do everything in my power to ensure no family has to suffer like this again.
Health is a devolved policy area.
Wes Streeting announces investigation into NHS maternity services in England
The health secretary, Wes Streeting, has announced the launch of a national investigation into NHS maternity services in England.
More details soon …
By the way, if you actually wanted to read the Modern Industrial Strategy document published by the government today, you can find it here.
The government has just pushed out a joint statement from business leaders welcoming it, which says:
The Industrial Strategy launched today marks a significant step forward and a valuable opportunity for the business community to rally behind a new vision for the UK – boosting confidence, sentiment, and enthusiasm for investment.
From start-ups and small businesses to large corporates, businesses need a more attractive, stable environment that enables faster, easier, and more certain investment decisions.
We welcome the government’s engagement with businesses across the UK. Much of what we’ve shared has been heard and reflected in this strategy. While there’s more to do, we are ready to support the next steps.
We encourage businesses nationwide to get behind this strategy and champion the UK as the best place to live, work, invest, and do business.
The statement is signed by leaders of the British Chambers of Commerce, CBI and Federation of Small Businesses among others.
Miliband: 'High electricity costs have held back British businesses'
Energy secretary Ed Miliband has also commented on the announcement of the government’s promise to cut electricity costs for key business sectors.
He said:
For too long high electricity costs have held back British businesses, as a result of our reliance on gas sold on volatile international markets.
As part of our modern industrial strategy we’re unlocking the potential of British industry by slashing industrial electricity prices in key sectors.
We’re also doubling down on our clean power strengths with increased investment in growth industries from offshore wind to nuclear. This will deliver on our clean power mission and plan for change to bring down bills for households and businesses for good.
Chancellor Rachel Reeves said the plan would “see billions of pounds for investment and cutting-edge tech, ease energy costs, and upskill the nation.”
The government’s announcement can be found here.
Labour claims industrial strategy will cut energy costs for thousands of businesses
Prime minister Keir Starmer has said the government’s 10-year industrial strategy marks a “turning point for Britain’s economy”, with the promise that scrapping green levies will cut electricity costs for thousands of businesses.
Manufacturers have previously warned that power costs are far higher for UK businesses than competitors overseas.
From 2027, a new British Industrial Competitiveness Scheme will cut costs by up to £40 per megawatt hour for over 7,000 manufacturing firms by exempting them from levies on bills including the renewables obligation, feed-in tariffs and the capacity market.
About 500 of the most energy-intensive firms, including the steel industry, chemicals and glassmaking, will also see their network charges cut – they currently get a 60% discount through the British Industry Supercharger scheme, which will increase to 90% from 2026, PA Media reports.
In a statement promoting the announcement, Starmer said:
This industrial strategy marks a turning point for Britain’s economy and a clear break from the short-termism and sticking plasters of the past.
Chancellor Rachel Reeves and business secretary Jonathan Reynolds are expected to make a public appearance today to promote the strategy.
Green party of England and Wales MP Ellie Chowns has said it is “shocking” that foreign secretary David Lammy chose not to say whether the UK government thought US strikes on Iran were legal or not.
In a message posted to social media, the MP for North Herefordshire said:
Shocking that David Lammy on the BBC Radio 4 Today programme would not even acknowledge that the US bombing of Iran is illegal. This refusal to stand up to the US on the most basic principles of international law is shameful.
Shadow defence secretary James Cartlidge has said that the Conservatives back US strikes on Iran’s nuclear facilities, but that there is “a big question” over prime minister Keir Starmer’s position.
Appearing on GB News, Cartlidge said “I said that, in principle, if the US and Israelis came forward and said, ‘look, based on the intelligence we’ve seen, we think we now need to take decisive military action if we want to stop an Iranian nuclear weapons programme’ … we would support that. And so that’s our position. We support what’s happened, and obviously now need to see what happens next.”
He continued by saying “There is a big question about the prime minister’s position. It’s just not clear what he actually thinks of the attacks. If you look at the language he’s talking about recognising the action has happened, that he’s spoken to the president. Does he actually support the actual military action?”
Government ministers have declined to say whether the UK supports the US decision to strike at nuclear sites in Iran, but the foreign secretary said the uranium enrichment levels Iran was achieving was “not something that you can allow possibly to just let slide.”
David Lammy told listeners of the BBC Radio 4 Today programme:
I’m very conscious that when I met colleagues in the White House on Thursday that they were considering all of the options … we knew that, you knew that as journalists. And Donald Trump made a decision to act to degrade that capability. It may well have set back Iran by several years. That was a decision that he took.
I believe what the IAEA has found, and that is that Iran is enriching at 60% and there is no credible civilian justification for high enrichment at that level, that they have not been complying with their nuclear proliferation obligations. With all seriousness, this is not something that you can allow possibly to just let slide when it’s enrichment at 60%.
Armed forces minister Luke Pollard, in a separate media appearance, said the UK focus was on diplomacy, not military action. Appearing on Times Radio he said:
That was a decision that the US has taken. Our focus has been on the diplomatic effort that is necessary to get a lasting peace. That’s why that’s been the focus of the prime minister’s actions over the last few days, it’s why the defence secretary, myself, the foreign secretary and the minister for the Middle East have been engaging in diplomatic activity in the region, because we need to make sure that there is a route to a lasting peace here.
Armed forces minister Luke Pollard also appeared on the media round today, and stuck to the government line of not commenting on US action against Iran.
He told viewers of Sky News that “it’s not for me to comment on the particular US action, but we’re assessing the battle damage at the moment to understand the true extent of the strikes.”
Put to him that, as armed forces minister ,it was specifically his role to comment on military action, Pollard insisted “I’m not going to be able to comment on that question, but what we can say is that we were not involved in the military action that the US took.”
Continuing the theme also outlined by foreign secretary David Lammy this morning, Pollard said diplomacy was the only solution.
He said Britain’s focus was on putting “pressure on the Iranian regime to get back to negotiations because a diplomatic solution is how we bring this crisis to an end, with Iran not able to create a nuclear weapon, handing over their nuclear materials that they possess, and giving commitments that they won’t threaten regional stability by developing a nuclear weapon in the future.”
Lammy: Iran must 'get serious about off-ramp being made available to them'
Foreign secretary David Lammy has said that diplomacy is the only permanent solution to the UK’s longstanding concerns over Iran’s nuclear programme, and that Tehran’s government must “get serious about the off-ramp that is being made available to them” in the wake of US strikes on Iran’s nuclear facilities.
Lammy said that Iran had clearly been in breach of agreements by enriching uranium up to 60%, which he said was way above the levels of enrichment carried out by the UK.
He told listeners of the BBC Radio 4 Today programme:
I’m sorry that (the Joint Comprehensive Plan of Action) has since been breached, of course I am, but that’s why the international community is ultimately committed to this. And let’s be clear, if Iran is able to enrich beyond 60%, is able to get a weapon, what we will see is nuclear proliferation across the Middle East, the world will be seriously more dangerous than it is at the moment, that’s why it must be stopped.
The foreign secretary said a diplomatic solution was required because Iran retains the expertise and likely some of the materials to continue its enrichment programme.
He made a similar point in a separate appearance on BBC Breakfast, telling viewers:
I went straight to Geneva … to sit with the Iranians. I spent seven hours in Geneva to talk them down to this off-ramp. It is still the case that this can only be sorted out diplomatically, and Iran must now take that off-ramp.
Lammy declines to say whether UK government views US strikes on Iran as illegal
Foreign secretary David Lammy has repeatedly declined to say whether the British government believes that US strikes on Iran’s nuclear facilities were legal or illegal.
Pressed on the Radio 4 Today programme by Justin Webb, Lammy claimed there was no equivalence between the actions of Vladimir Putin invading Ukraine and the US strikes. Overnight US president Donald Trump appears to have floated the idea of the US backing regime change in Tehran.
Asked about the lawfulness of the strikes, the foreign secretary would only say: “Well, we weren’t involved, it’s for the Americans to discuss those issues.”
When it was put to him that it extraordinary he could not answer the question, he told listeners:
I don’t think it is extraordinary because this was not the UK’s action, we were not involved, we were clear when this began and Israel’s attacks began that we were not involved … so I don’t say it’s not legitimate, but I can tell you as foreign secretary that we were not involved.
Welcome and opening summary …
Good morning, and welcome to our rolling coverage of UK politics. Here are the headlines …
Foreign secretary David Lammy has repeatedly declined to say whether the British government believes US strikes on Iran were illegal. Prime minister Keir Starmer has warned of a “risk of escalation” in the Middle East and beyond, backing the strike on Iran’s nuclear facilities and calling on Tehran to return to negotiations
The government has promised electricity costs for thousands of businesses will be cut by scrapping green levies as a key part of a 10-year industrial strategy. Starmer said the plan marks a “turning point for Britain’s economy”
Reform UK are to offer wealthy foreigners and returning British expats a bespoke tax regime in exchange for a one-off payment of £250,000 with all funds collected redistributed to Britain’s lowest-paid workers, the party claims
There are quite a few things in the diary for the day. Chancellor Rachel Reeves and business secretary Jonathan Reynolds will be out promoting the government’s industry strategy. Health secretary Wes Streeting is giving a speech in London, while opposition leader Kemi Badenoch is appearing at a Policy Exchange event at lunchtime.
Minister Stephen Doughty will be appearing before the foreign affairs committee discussing the Chagos agreement, while Northern Ireland secretary Hilary Benn faces the Northern Ireland affairs committee. In the Commons there are questions on work and pensions and a general debate on Pride month.
It is Martin Belam with you today. You can reach me at martin.belam@theguardian.com.
