Displaying items by tag: Government

The Government borrowed £151.9 billion in the year to March, up £20.7 billion from the previous year, raising concerns about the nation’s financial stability. The figures, revealed as Rachel Reeves visits Washington to negotiate a trade deal with the USA, come amid mounting pressure to cut public spending or increase taxes in order to meet her strict borrowing rules. Reeves has insisted that borrowing will not fund daily spending, but economists warn that sluggish growth, rising interest rates, and looming US tariffs could force her hand. Economists predict tax hikes may be necessary, especially if a trade agreement with the USA cannot be reached. Meanwhile, the IMF downgraded the UK’s 2025 growth forecast from 1.6% to 1.1%, citing inflation, borrowing costs, and trade disruptions. Despite higher tax revenues, debt interest rose to £4.3 billion in March, the highest since the 1960s. Both political and economic leaders are scrutinising every area of government spending, while critics blame the borrowing spike on poor fiscal management and short-sighted policies.

Leading UK charities are urging Keir Starmer to urgently scrap the two-child benefit cap, warning it could push child poverty to record levels by the end of this parliament. A letter signed by organisations such as Barnardo’s, Save the Children, and Citizens Advice has told the Government that removing the cap is the most cost-effective measure to reduce poverty. The two-child limit, introduced in 2017, restricts child tax credits and universal credit to the first two children in most households. Critics argue this penalises larger families and disproportionately affects low-income homes. The End Child Poverty Coalition predicts the long-awaited child poverty strategy may not appear until June, while the Child Poverty Action Group estimates child poverty could rise from 4.5 million to 4.8 million children by 2029. Scrapping the limit could lift 350,000 children out of poverty overnight and lessen the severity for 700,000 more. While the Scottish government has pledged to mitigate the policy, nationwide reform remains uncertain and urgently needed.

A critical shipment of raw materials has arrived in the UK to keep British Steel’s blast furnaces in Scunthorpe operational. Following the breakdown of talks with Chinese owner Jingye, the UK government intervened, securing coking coal and iron ore from the US and Australia to prevent furnace shutdowns and potential irreparable damage. This action has brought  'huge relief' to workers and offered renewed hope for the plant’s future. British Steel is the UK’s last producer of virgin steel - vital for national infrastructure, defence, and the economy. Nearly three thousand jobs were at stake, and the government passed emergency legislation to secure operations while working on future ownership plans. Concerns mounted when Jingye ceased raw material orders and began selling existing supplies. Government ministers and union leaders stress the strategic importance of maintaining domestic steel production. Meanwhile, tensions with Beijing have escalated, with warnings that foreign ownership of essential industries must be carefully scrutinised. As the furnaces stay lit, questions remain about long-term stability and national control over vital infrastructure.

The Government has offered to buy the critical raw materials - particularly coking coal - needed to keep British Steel’s blast furnaces running in Scunthorpe. Without this urgent purchase, steel production could halt within weeks and may not be restartable. The offer is directed to Chinese owner Jingye, which has deemed the plant financially unsustainable. Talks continue between British Steel and government officials, with ministers preferring a commercial solution but not ruling out nationalisation. One of the two furnaces, 'Bess,' is scheduled for temporary shutdown on 14 April to conserve remaining materials. The Government hopes to buy time for further negotiations, though frustrations with Jingye’s perceived withdrawal have grown. A new long-term partner may be sought. Unions warn of an 'extreme emergency' and are calling for nationalisation to protect 2,700 jobs and preserve UK steelmaking. A final decision must be made within days to secure new coal and iron ore supplies.

The Government has announced a major new initiative to restore neighbourhood policing, aiming to rebuild public trust and enhance community safety. Under the Neighbourhood Policing Guarantee, 13,000 additional officers will be deployed by 2029 - an increase of more than 50%. Every neighbourhood will have named, contactable officers and guaranteed police patrols during peak times, ending the postcode lottery in law enforcement standards. Each police force will also appoint an antisocial behaviour lead to respond to local issues with tailored action plans. The initiative includes new powers through the Crime and Policing Bill to address antisocial behaviour, shoplifting, and phone theft. Retailers and hospitality leaders have welcomed the measures, recognising visible policing as essential for revitalising high streets and ensuring safe neighbourhoods across the UK.

Tensions are rising in Birmingham as an all-out bin strike continues, leaving rubbish uncollected and sparking health concerns, including reports of large rats and one resident allegedly being bitten. With the city council being overseen by commissioners after declaring bankruptcy, the Government has said it cannot legally intervene, insisting it remains a local matter. MPs from across the political spectrum have criticised the inaction, branding it a 'national embarrassment’. The Unite union, representing a small group of holdouts, is accused of blocking depots and preventing contingency plans. Communities minister Jim McMahon and Labour MP Preet Gill both called for a resolution, stressing the urgent need for compromise. Meanwhile, residents across the region remain frustrated by the visible impact and potential health risks of uncollected waste.

The Government has announced major welfare reforms aimed at cutting costs and encouraging work. The changes include stricter eligibility for Personal Independence Payments (PIP), reduced incapacity benefits, and new work incentives. From November 2026, PIP eligibility criteria will tighten, making it harder to qualify for support with daily living tasks. However, those with severe, lifelong conditions will no longer face reassessments. Incapacity benefits under Universal Credit will freeze at £97 per week from April 2025 and drop to £50 per week for new claimants in 2026. Young people under 22 will lose access to incapacity benefit top-ups, with funds redirected to training programs. To ease fears about job loss, those trying work will not face automatic reassessments. The government is investing £1bn to help disabled people and those with long-term conditions to enter the workforce. See

Keir Starmer has announced plans to abolish NHS England, aiming to cut bureaucracy and redirect funds to frontline healthcare. Calling it an ‘arms-length body’, he argued that scrapping it would eliminate duplication, saving money for nurses and patient care. Health secretary Wes Streeting acknowledged that up to 10,000 jobs could be cut, but said reform was necessary to reduce inefficiency. NHS England, established in 2013, oversees daily NHS operations with a £168 million budget. Last month, its chief executive Amanda Pritchard stepped down, reflecting mounting pressures. Starmer’s broader government efficiency plan includes AI-driven reforms to streamline state functions, aiming to save £45 billion, and to cut compliance costs for businesses by 25%. He criticised the state as overstretched and ineffective, promising to reduce regulatory burdens. Streeting called the move the ‘final nail in the coffin’ of the ‘disastrous’ 2012 NHS reorganisation, pledging to empower healthcare workers and shorten waiting times.

Bangladesh’s interim leader, Nobel laureate Muhammad Yunus, admits he was ‘dazzled’ when unexpectedly asked to take charge after Sheikh Hasina was ousted last year. Yunus, who returned to lead the country following a student-led uprising, prioritises restoring order and fixing the economy, which he describes as ‘devastated’. He plans to hold elections between December 2025 and March 2026, contingent on necessary reforms. Meanwhile, Hasina remains in exile in India, wanted in Bangladesh for alleged crimes against humanity. Amid ongoing unrest, critics accuse Yunus’s government of failing to ensure security for her Awami League members, some of whose homes have been vandalised. The interim government faces additional challenges after the Trump administration cut US foreign aid (last year it received $450 million). There are concerns about Bangladesh’s economic and political future: the nation, once hailed for its progress, is now struggling to regain stability under its new leadership.

Germany’s conservative leaders have argued that the country should quickly reintroduce compulsory military service. Friedrich Merz, leader of the new CDU/CSU government, argues that Europe must take greater responsibility for its defence, especially given NATO’s uncertain future. Defence spokesman Florian Hahn says the suspension of conscription ‘no longer fits the current threat situation’, and wants to see new conscripts before the end of 2025. Merz also supports a mandatory year of military or community service to strengthen personnel numbers. While conscription remains controversial, cross-party support for it is increasing. A new system, put in place by the previous government, will require 18-year-old men to complete a questionnaire about their interest in the army and their physical condition; for women it will be optional. A contingent of men and women will then be invited to a selection process. Without immediate action, Germany’s armed forces risk severe shortages in the coming years.