Hamish Mackay (now) and Martin Belam (earlier) 

Starmer aiming to ‘pass emergency legislation in one day’ to save British Steel – as it happened

Parliament is being recalled on Saturday to vote on emergency legislation that will bring British Steel under government control
  
  

Keir Starmer
Keir Starmer Photograph: Carl Court/Getty Images

Closing summary

For the second time today, we’re closing this blog. Here’s a round-up of the day’s main developments:

  • Keir Starmer is stepping in to seize control of British Steel to stop its Chinese owner shutting the Scunthorpe plant in an unprecedented move that paves the way for likely nationalisation

  • The prime minister was granted a recall of parliament on Saturday, with MPs set to debate emergency laws that will give the business secretary, Jonathan Reynolds, the power to direct the company

  • The government is aiming to “pass emergency legislation in one day”, Starmer said, with the Lords also being recalled

  • Meanwhile, Michael Gove is among seven new appointees to the House of Lords by Rishi Sunak in his resignation honours list. James Cleverly, Jeremy Hunt, Mel Stride and Grant Shapps are among those receiving knighthoods

  • Rachel Reeves has said that the government needs to go “further and faster on delivering growth that is felt by families up and down the country” after February’s GDP figures showed an unexpected growth of 0.5%, and January’s figures were revised up slightly

Thanks for reading.

Analysis: British Steel facing crisis within crisis

Blast furnaces have been making steel in Britain for 300 years, ever since they helped start the Industrial Revolution. This weekend, parliament will sit for the first Saturday in decades as it tries to keep the last two furnaces running for a bit longer.

Keir Starmer has recalled MPs to discuss emergency powers to direct steel companies, including British Steel’s Scunthorpe steelworks, to “preserve capability and ensure public safety”. The move would be short of nationalisation, but it would give the government more influence on the steel industry than at any point since Margaret Thatcher.

The government is scrambling to save Scunthorpe after its Chinese owner, Jingye Steel Group, last month said it was considering closing it, with the likely loss of 2,700 jobs. Starmer and the business secretary, Jonathan Reynolds, hope to keep the plant running for the next few weeks while they work out the longer-term plan, with nationalisation one option.

British Steel is facing a crisis within a crisis: in the short term – the next week or so – it needs materials, including iron pellets and coking coal, or else it faces the prospect of the furnaces cooling beyond easy or affordable recovery. Customers would flee, making job losses inevitable.

People with knowledge of this week’s talks between the UK government and Jingye said it appeared that the government had run out of patience with the Chinese company’s negotiating. The government had offered to buy the raw materials to keep the blast furnaces running in the short term but that offer was not taken up. Parliament may be able to avert the short-term crisis on Saturday.

Updated

Badenoch: Labour 'bungled' negotiations over British Steel

Kemi Badenoch has said Labour “bungled” negotiations over British Steel and are now “scrambling for a solution” that will come at a big cost to taxpayers.

The Conservative leader said:

The Labour government have landed themselves in a steel crisis entirely of their own making. They’ve made poor decisions and let the unions dictate their actions.

As business secretary, I negotiated a modernisation plan with British Steel to limit job losses and keep the plant running, including introducing an electric arc furnace in Teesside, similar to what we did with Tata at Port Talbot steelworks.

However, the union-led Labour Government have bungled the negotiations, insisting on a Scunthorpe-only deal that the company has deemed unviable. Keir Starmer should have seen this coming.

She added:

Now the British public can see the Government scrambling for a solution to a problem they created and could have resolved months ago. It is inevitable that it’s going to cost taxpayers a lot of money.

The Green Party has said it will support nationalising British Steel in tomorrow’s vote.

Green MP Ellie Chowns said nationalisation was “the only sure way to secure this strategically important sector so vital to national security and British jobs”.

She added:

Public ownership of key sectors like steel, water, energy and transport has always been Green Party policy.

And where it is in the public interest to have public ownership of a key strategic industry, which appears to be the case with Scunthorpe Steelworks, Greens are in full support.

Taking British Steel into public ownership provides the opportunity to help drive the green industrial revolution, supporting Scunthorpe Steelworks to make the transition from blast furnaces to electric arcs, which are cheaper and far better for the environment to run.

Supporting decarbonisation of steel will further enable the UK to produce the green steel necessary to transition to a green economy, such as wind turbines and trains.

Business secretary Jonathan Reynolds has now issued a statement on British Steel. It doesn’t add much to what Starmer said earlier. Reynolds, like the PM, emphasises the strategic importance of being able produce steel in the UK.

He said:

We will always do what is necessary to keep Britain secure at home and strong abroad. We are doing what previous governments have failed to, acting in the national interest to help secure UK steelmaking for the future

We negotiated with British Steel’s owners in good faith ever since coming to office. We made a generous offer of support to the company and I am deeply disappointed that we have been forced to take these measures, but Jingye have not been forthright throughout this process, and left us no choice but to act.

We’re in a new and changing world where it’s never been more important to support our security and build our resilience, so that we can have strength abroad and renewal at home, and that’s what this government has done.

Updated

Beginning nationalisation process 'absolutely the right thing to do', says Unite

The Unite union has welcomed Starmer’s comments, saying that beginning the process of nationalisation is “absolutely the right thing to do”.

Here is general secretary Sharon Graham’s full statement:

I am pleased that the government has listened to representations by Unite and other steel unions over the future of British Steel.

Ministers could not have allowed a foundation industry to go under with the loss of more than 3,000 jobs and key skills.

It is absolutely the right thing to do to begin the process of nationalisation.

Discussions have been positive and whilst a longer-term plan needs to be developed, this gives workers the reprieve we have been asking for.

It is essential that Scunthorpe receives the relevant infrastructure and kit to allow it to thrive as a modern steel producer long into the future.

Unite is also urging the government to consider making steel an area of critical national infrastructure and ensure that UK steel is used on all infrastructure projects. This move is needed to back the British steel industry as a whole.

It is also vital that the government tackles the issue of industrial energy costs.

If you’re wondering why the Scunthorpe steelworks is of such importance for the UK, my colleagues Rowena Mason, Eleni Courea and Jasper Jolly say this in their report:

Scunthorpe is the last remaining steelworks capable of making steel from iron ore and so is seen by some people as strategically important for the UK. However, Jingye last month said it planned to close the plant’s two blast furnaces, putting 2,700 jobs at risk. It has since refused to pay for new raw materials, with coal and iron ore deliveries to Immingham port not yet paid for.

The government had offered £500m in financial support to switch the blast furnaces to cleaner electric arc furnaces, but Jingye had requested much more.

Talks this week are thought to have stalled when Jingye balked at the conditions attached to the offer to pay for new raw materials. The delays in reaching an agreement had caused increasing alarm among workers, who feared at least one blast furnace might be forced to close as soon as next week, leading to job losses.

We’ve got a bit more from the PM, who said government plans to take control of the British Steel plant in Scunthorpe aims to “preserve all viable options” for the operation.

Asked to clarify whether the emergency legislation to be debated in the Commons and Lords on Saturday amounts to nationalisation, or as a precursor to nationalisation, Starmer said:

Well, what we’re doing tomorrow is passing legislation to take control of the plant and to preserve all viable options.

It doesn’t mean all options are on the table, but it means all options remain viable.

But the step we’re taking tomorrow is the step of taking control, because it’s necessary now to do that.

He added:

Obviously, negotiations will be going on for some time, but now is the time to take this action, to take control of the plant.

He did not directly answer when asked about the costs of the plan to secure Scunthorpe, nor why a similar plan was not presented to save the Port Talbot steelworks.

The last time parliament was recalled during recess was in 2021, when Afghanistan had to be evacuated during the Taliban takeover.

It is also the first recall of parliament on a Saturday since 1982.

Just ahead of Starmer’s press conference, No 10 said the bill up for debate tomorrow “provides the government with the power to direct steel companies in England, which we will use to protect the Scunthorpe site”.

Here’s the full statement:

The prime minister has been clear, his government will always act in the national interest. All actions we take are in the name of British industry, British jobs and for British workers.

Tomorrow, parliament will be recalled to debate the Steel Industry (Special Measures) bill. The bill provides the government with the power to direct steel companies in England, which we will use to protect the Scunthorpe site. It enables the UK government to preserve capability and ensure public safety. It also ensures all options remain viable for the future of the plant and the livelihoods it supports.

We have been negotiating with British Steel’s owners in good faith ever since coming to office. We have always been clear there is a bright future for steel in the UK. All options remain on the table.

Government will aim to 'pass emergency legislation in one day' to save British Steel

The government will “pass emergency legislation in one day” to protect the British Steel plant in Scunthorpe, Starmer said.

Speaking in Downing Street, the Prime Minister said:

We will act with urgency. Now, we should be clear this situation and our response is unique.

While it is true that we are facing a new era of global instability, our concerns about this plant and negotiations to protect it have been running for years.

This moment could have happened at any time, but it has happened now, and I will not stand by. There is no time to waste.

So we are recalling Parliament tomorrow for a Saturday sitting. We will pass emergency legislation in one day to give the Business Secretary the powers to do everything possible to stop the closure of these blast furnaces.

And as I have said, we will keep all options on the table.

Starmer: future of British Steel hangs in the balance

The future of British Steel “hangs in the balance,” the prime minister has said after MPs were recalled to parliament for a vote on the Scunthorpe site.

In a statement on Friday afternoon, Sir Keir Starmer said:

As prime minister, I will always act in the national interest to protect British jobs and British workers.

This afternoon, the future of British Steel hangs in the balance.

Jobs, investment, growth, our economic and national security are all on the line.

Summary of the day

  • Parliament is to be recalled tomorrow for a rare Saturday sitting to discuss the nationalisation of British Steel. The Commons is expected to sit at 11am and the Lords at noon. MPs will debate legislation to allow the government to “direct steel companies in England”, Downing Street has said

  • Michael Gove is among seven new appointees to the House of Lords by Rishi Sunak in his resignation honours list. James Cleverly, Jeremy Hunt, Mel Stride and Grant Shapps are among those receiving knighthoods

  • Rachel Reeves has said that the government needs to go “further and faster on delivering growth that is felt by families up and down the country” after February’s GDP figures showed an unexpected growth of 0.5%, and January’s figures were revised up slightly

  • Liberal Democrat leader Ed Davey has called for Keir Starmer to convene a virtual summit of world leaders to present a unified response to the imposition of tariffs by Donald Trump’s US administration

  • Analysis by PA Media suggests that Reform UK is running more candidates in England’s May local election than any other party

  • Civil servants in 16 Ministry of Housing, Communities and Local Government (MCHLG) offices have voted for strike action

  • Labour MP Rebecca Long-Bailey has paid tribute to activist Anne Harper, who has died. The co-founder of Barnsley Women Against Pit Closures in the 1980s, Harper was married to former National Union of Mineworkers leader Arthur Scargill from 1961 until they divorced in 2001

Thank you so much for all your comments, which I always enjoy. There will be a politics live blog tomorrow to cover the recall of parliament, and I should be back with you again on Monday. I hope you have as peaceful, enjoyable and restful a weekend as you can. See you soon.

Plaid Cymru’s Westminster leader Liz Saville Roberts MP has criticised Keir Starmer’s Labour government for taking differing approaches to Welsh and English jobs in the steel industry.

PA Media reports she said in a statement:

Parliament is being recalled tomorrow to debate the nationalisation of Scunthorpe steelworks.

But when global market forces devastated Welsh livelihoods in Port Talbot, Labour dismissed Plaid Cymru’s calls for nationalisation as ‘pipe dreams’.

In a real emergency, governments step up to defend their strategic interests. Plaid Cymru recognised the importance of Welsh steelmaking. Labour chose to look the other way.

When it was Wales, they mocked. Now it’s England, they act. Labour has taken Wales for granted for far too long – and the people of Wales won’t forget it.

After coming to power in 2024, the Westminster Labour government agreed a taxpayer-backed deal for the Port Talbot plant which was to provide £500m towards the construction of the new greener electric arc furnace at the site, with owners Tata paying £750m. About 500 jobs are expected to be created during its construction, however an estimated 1,900 jobs were expected to be lost with the closure of blast furnaces there.

Downing Street: parliament will debate bill to allow government to 'direct steel companies in England'

MPs will debate legislation to allow the government to “direct steel companies in England”, Downing Street has said, suggesting it stops short of a full renationalisation.

PA Media quotes a Downing Street spokesperson saying:

The prime minister has been clear, his government will always act in the national interest. All actions we take are in the name of British industry, British jobs and for British workers.

Tomorrow parliament will be recalled to debate the Steel Industry (Special Measures) Bill. The Bill provides the government with the power to direct steel companies in England, which we will use to protect the Scunthorpe site. It enables the UK government to preserve capability and ensure public safety. It also ensures all options remain viable for the future of the plant and the livelihoods it supports.

We have been negotiating with British Steel’s owners in good faith ever since coming to office. We have always been clear there is a bright future for steel in the UK. All options remain on the table.

Support for the recall of parliament tomorrow to discuss the renationalisation of British Steel has been welcomed in several political quarters.

Liberal Democrat leader Ed Davey said:

With Putin’s barbaric war in Europe and Donald Trump’s disastrous tariffs causing economic turmoil, the future of steel production in this country is of real importance and nothing should be off the table in this matter of national security.

Tomorrow must be seen as an opportunity to come forward with a serious plan for the sustainable future of domestic steel production. The public rightly deserves better than political opportunism and grandstanding.

I hope across all sides of the House that this message is understood and embraced. We Liberal Democrats stand ready to help constructively bring about an outcome that delivers real change. All politicians would do well to remember the country is watching.

Green party of England and Wales MP Ellie Chowns said nationalisation was “the only sure way to secure this strategically important sector so vital to national security and British jobs”.

PA Media reports she said “Public ownership of key sectors like steel, water, energy and transport has always been Green Party policy. Nationalisation of the steel industry could also help drive the green industrial revolution. From wind turbines to trains, steel will be needed for the transition to a green economy. We must not leave the future of steel communities to the whims of multinational companies or unhinged American presidents.”

Reform UK leader Nigel Farage also commented, with the MP for Clacton saying “China has no interest in keeping the steelworks open. Reform have been clear from the start that the only option we have to save this vital strategic asset – and thousands of jobs in the process – is to nationalise British Steel. We are calling on the government to do the right thing tomorrow and bring it back into public ownership.”

PA Media reports Farage also called on the government to acquire Liberty Steel Rotherham for its two electric arc furnaces.

Away from politicians, Greenpeace UK climate campaigner Lily-Rose Ellis said: “This parliamentary recall is a reassuring demonstration from the government that it is taking the issue seriously. The global race to a low-carbon economy is on, it’s important the UK and Scunthorpe don’t get left behind. The government must learn from the mistakes made at Port Talbot. We cannot afford to let that happen again, nor can it let steel production in the UK wither and die.”

Lib Dem deputy leader Cooper: Sunak peerages are 'parade of political flunkies'

Political correspondent Eleni Courea writes:

Michael Gove has been awarded a peerage by Rishi Sunak in a resignation honours list branded by opposition parties as an “ID parade of political flunkies” by Daisy Cooper, the deputy leader of the Liberal Democrats.

Cooper said their “fingerprints of failure are still felt on family finances”.

“They are rewards for the failure of a dreadful Conservative government that was rightly kicked out of office,” she said. “The fact that Rishi Sunak has dished out honours to his mates after all the damage they did is yet more proof of how out of touch the Conservatives still are.”

Read more from Eleni Courea here: ‘Parade of political flunkies’: MPs critical as Sunak awards Michael Gove a peerage

To whet your appetite for May’s local elections in some areas of England, the Election Maps UK account on X (née Twitter) has this aggregate of council byelections since last year’s general election.

It finds that of the 235 seats contested, Labour have won the most seats of all with 74, albeit having lost 42 seats. The Conservatives have made the most gains (24 gains) and have won 61 seats. The Liberal Democrats remained on 46, while Reform UK have made 14 gains.

It puts Green party gains at three, and today co-leader of the party in England and Wales, Adrian Ramsay, was sharing news that Ruairidh Paton had won a seat in St. Ann’s, Haringey.

House of Lords to also sit on Saturday over British Steel after recall of Commons

PA Media reports that the House of Lords will also sit on Satuday, from noon, alongside the highly unusual recall and weekend setting of the House of Commons. The future of British Steel is to be the subject of debate.

My colleagues Rowena Mason, Eleni Courea and Jasper Jolly have this report:

In a statement from the House of Commons, a spokesperson said: “The speaker of the House of Commons has granted a request from the government to recall the House at 11am on 12 April for the house to take forward legislative proposals to ensure the continued operation of British Steel blast furnaces is safeguarded.”

The form of how the government may take control of British Steel is not yet known.

Earlier in the week, government sources had said that nationalising British Steel was not an easy thing to do, and would be a measure of last resort.

One MP said the move was “going down extremely badly” with colleagues given no warning about the need to return to Westminster, when it had been well known for weeks that British Steel was in trouble.

PA media have published this full list of people awarded peerages in Rishi Sunak’s resignation honours list. It lists:

  • Michael Gove, former secretary of state for Levelling Up, Housing and Communities

  • Mark Harper, former secretary of state for Transport

  • Simon Hart, former chief whip of the House of Commons

  • Alister Jack, former secretary of state for Scotland

  • Stephen Massey, former chief executive officer of the Conservative party

  • Victoria Prentis, former attorney general

  • Eleanor Shawcross (Wolfson), former Head of the No 10 Policy Unit

Away from the world of politics, Sunak also requested from the king a knighthood for England cricket’s fast bowler James Anderson. James retired from test cricket in July having taken more wickets than any fast bowler in test history.

Rebecca Long-Bailey has posted on social media to mark the death of Anne Harper.

In a statement the Labour MP for Salford said:

I’m sad to hear that Anne (Scargill) Harper passed away. Anne was a community activists and co-founder of Barnsley Women Against Pit Closures, the first of a national network of branches. She consistently fought for political representation for working-class women, workers’ rights and anti-fascism. My condolences to her family. Rest in Peace.

Barnsley-born Harper was married to former National Union of Mineworkers leader Arthur Scargill from 1961 until they divorced in 2001.

The BBC reports that Harper’s death was confirmed by her friend and fellow activist Betty Cook, and that she had been living in a nursing home after developing dementia.

Gove becomes peer, Cleverly and Hunt receive knighthoods in Rishi Sunak's resignation honours list

Former Cabinet minister and Leave campaign leader Michael Gove has been awarded a peerage in Rishi Sunak’s resignation honours list.

Gove is now editor Spectator magazine. Sunak has appointed several other key allies to the House of Lords including former cabinet ministers Mark Harper, Victoria Prentis, Alister Jack, and Simon Hart. There are also peerages for Stephen Massey and Eleanor Shawcross. The latter was a former head of the policy unit in Downing Street, and Massey was chief executive of the Conservative party.

The House of Lords is the largest legislature in the world with over 800 unelected members, with the exception of the National People’s Congress of China, which numbers nearly 3,000 people.

Former Chancellor Jeremy Hunt and former foreign secretary James Cleverly have been awarded knighthoods. Cleverly was frontrunner among MPs to take over the leadership of the party from Sunak until the final round of voting.

Andrew Mitchell said he was “humbled and grateful for this wonderful personal news” as he also received a knighthood. Theresa Villiers has received a damehood, while Mel Stride and Grant Shapps also received knighthoods.

Parliament to be recalled on Saturday to discuss future of British Steel

Parliament is to be recalled tomorrow for a rare weekend sitting to discuss the future of British Steel. The Guardian understands MPs will attend a session from 11am.

The government has been under pressure to nationalise the industry after the steelworks in Scunthorpe came under threat of closure. Earlier care minister Stephen Kinnock said steel manufacturing was a matter of national security.

On Thursday, ministers were thought to have offered to provide funding for the purchase of raw materials such as iron ore and coking coal for Scunthorpe’s blast furnaces. That would have provided a stopgap solution to ensure the furnaces could keep burning while discussions continued about the plant’s longer-term future.

Chinese owner Jingye, which promised a “new chapter” in UK steelmaking when it rescued British Steel in 2020, said last month that the site’s two blast furnaces were no longer financially sustainable, raising fears for the future of 2,700 workers.

The most recent recall of parliament was in August 2021 due to the deteriorating situation in Afghanistan.

James Cleverly, Jeremy Hunt, Grant Shapps and Mel Stride to receive knighthoods – reports

Rishi Sunak’s resignation honours list is being confirmed today. Knighthoods are reported to be going to several senior figures from his time in government: Andrew Mitchell, James Cleverly, Jeremy Hunt, Grant Shapps and Mel Stride.

More details soon …

Civil servants in 16 Ministry of Housing, Communities and Local Government (MCHLG) offices have voted for strike action, PA Media reports.

Public and Commercial Services union general secretary Fran Heathcote said:

This second ballot win shows the strength of feeling and solidarity among our members working for MCHLG. Management forcing through changes to the way they work negatively impacts them all.

Our hard-working members have shown they can deliver for the public while working flexibly, but the combination of office closures ending location-neutral recruitment and enforcing rigid office attendance policies removes this choice. Managers need to come to the table with meaningful alternative plans or face strike action.

PA Media has done an analysis of the candidates standing across next month’s local election in some areas of England, and has concluded that Reform UK has more candidates standing than any other party. It found

  • Reform UK is standing 1,631 candidates, contesting 99.4% of seats. They have a full slate of candidates in 20 of the 23 local authorities holding elections. Research from the Labour party last week suggested at least 60 candidates were defections from the Conservatives

  • Conservatives have 1,596 candidates (97.3% of seats), and a full slate in 20 authorities

  • Labour have 1,543 candidates (94.0%) and a full slate in 19 authorities

  • The Lib Dems have candidates standing in every seat in nine of the 23 local authorities, while the Green party of England and Wales have a full slate in five

We have produced an interactive guide to which areas in England are having elections on 1 May – with several areas having postponed them.

Speaking of the Liberal Democrats, their Treasury spokesperson Daisy Cooper has also given her view of today’s GDP figures for February. In a statement she said:

The government risks taking weed killer to any green shoots of recovery as the disastrous jobs tax is about to bite. With Donald Trump throwing the global economy into turmoil, ministers must face up to the new reality. They must scrap their growth-crushing jobs tax and jettison their misguided red lines refusing to negotiate a bespoke UK-EU customs union.

I mentioned earlier that Ed Davey was making a campaign visit to Shrewsbury ahead of May local elections across some parts of England. Inevitably, given the Liberal Democrat leader’s track record, there are photographs, and this time Davey was out in a canoe with local MP Helen Morgan and some of the Liberal Democrat councillors from the region.

Earlier, also with the local elections in England in mind, leader Nigel Farage was boasting of a council seat gain for Reform UK in Longdendale (Tameside). Claiming “Longdendale is the safest Labour ward deep in their heartlands” he described it as “Reform UK’s most extraordinary win yet”. Farage said “Labour’s vote is coming to us in the Midlands and the North”.

Reform UK took 46.6% of the vote, on an estimated turnout of 21%. Labour, the Conservatives and the Green party of England and Wales all lost vote share.

Our senior economics correspondent Richard Partington offers some analysis of today’s economic news, saying the GDP figures offer Rachel Reeves some light as UK enters the Trump tariff tunnel. Here is a snippet:

It is now likely the first quarter of the year – when British business leaders had claimed to be slashing jobs at among the sharpest rates since the 2008 financial crisis – will stand as the high point of 2025 for economic activity.

The unexpected February GDP reading could bode well as evidence of Britain heading into the Trump-induced turmoil from a stronger starting point than first feared. Economists had forecast growth of only 0.1% in February, while January’s GDP snapshot was revised up from a fall of 0.1% to zero.

February’s economic expansion was broad-based, including a 0.3% rise in services output, suggesting that consumers were ready to look through a gloomy backdrop and kept spending. Resilience in wage growth – which remains above inflation despite rising pressures on living costs – no doubt helped. There was also little evidence that higher business taxes and weaker demand for goods from overseas were hitting manufacturing output

You can read Richard Partington’s analysis here: GDP jump offers Rachel Reeves some light as UK enters Trump tariff tunnel

Reeves: UK needs to improve trading relations with US – and other countries

Rachel Reeves has said that the government needs to go “further and faster on delivering growth that is felt by families up and down the country”, and said the Starmer administration was “resolved to do everything we can” to obtain a favourable trade deal with the US in the wake of Donald Trump’s unilateral imposition of 10% tariffs on the UK.

In comments to broadcasters after February’s GDP figures showed higher-than-expected growth of 0.5%, the Chancellor said:

It is welcome news that the economy grew strongly in February and, of course, the numbers as well for January were revised up. But we do know that we need to go further and faster on delivering growth that is felt by families up and down the country.

So, we are not complacent about these numbers, there is more work to be done. Which is why we are reforming regulation, reforming our planning system to ensure that we can get Britain building and continue to grow our economy.

Reeves also spoke about the government’s ambition for a trade deal with the US, saying:

We continue to engage with our counterparts in the United States, and of course we want to secure the best deal possible for British jobs and British industry. And we are absolutely … resolved to do everything we can.

But, at the same time, we also want to improve trading relations with other countries around the world.

It’s why I hosted the Indian finance minister in London this week as part of our economic and financial dialogue, and to try and secure a free trade and investment treaty with India.

It’s also why we are having a summit with the European Union in May to improve our trading relations. I’ll be travelling to Poland later today to meet with my finance minister counterparts from across Europe.

The increase in gross domestic product in February was five times larger than the 0.1% that a poll of economists had forecast, while January’s figure of a fall of 0.1% was revised up to 0.0% growth. The Office for National Statistics said UK growth was across all sectors of the economy.

Responding to news that the economy had grown by 0.5%, Conservative shadow chancellor Mel Stride said “Since coming to office, Labour’s choices have killed growth stone dead.”

Liberal Democrat education spokesperson Munira Wilson welcomed what she described as “these green shoots of recovery”, but cautioned that tax decisions taken by Reeves risked growth being “choked off”.

Updated

It may be ever thus that governments claim small rises in GDP are a direct result of their policies, and that small dips are a result of global factors out of their control, but the Spectator’s Ross Clark has conceded “Reeves manages to grow the economy” in the magazine’s economics newsletter today. He writes:

Just when everyone seems to be revising down expectations of growth, real world data starts pointing in the opposite direction. The Office for National Statistics estimates this morning that GDP grew by 0.5 per cent in February. It also revised January’s figures upwards to give growth for the last quarter of 0.6 per cent, and annual growth of 1.4 per cent. That is almost looking healthy. For the moment, the Reeves Recession has been put on hold.

Yet these figures do look somewhat historic. They cover a period before the national insurance increases for employers took effect and, of course, before Donald Trump’s ‘Liberation Day’ turned global markets upside down. We won’t know the effect of tariffs for at least a couple of months.

No one will be happier with this morning’s figures than the Chancellor. The immediate threat to her position appears to have receded significantly. Besides the renewed growth in the UK economy, the focus of economic news has moved away from Britain’s performance and on to turmoil in the global economy. In the space of a month Britain has gone from looking the sick man of the developed world to being a relative haven of calm.

While he was on the media round this morning, Conservative shadow minister for the environment Robbie Moore was pressed on how secure Kemi Badenoch was as opposition leader. This follows a report in the Times claiming Conservative donors are withholding backing for the party over concerns about her leadership and scepticism that she can see off the threat of voters shifting to support Reform UK.

Moore told Sky News viewers “Well, look, we’ve undoubtedly, as the Conservative party, had one of the biggest bruising general elections. We all know that, and it takes time to build back our base, build back that level of trust and support that we need from the wider electorate.”

He said Badenoch was providing “strong leadership” and they were a united parliamentary party with “plenty of fire in our belly and plenty of enthusiasm.”

Asked about the prospect of another Conservative leadership election before the year was out, Moore said “absolutely not” and that the party was “united” in holding the Labour government account under Badenoch’s leadership. He said:

We are not only having the task of holding this government to account and making sure that they are focusing on things that matter to our many hard working families and businesses across the UK, but also having to develop that relationship and that trust with the electorate that we lost at the general election. And of course, of course, that takes time.

In the article published overnight in the Times, Aubrey Allegretti, formerly of this parish, quoted anonymous shadow cabinet ministers who, he reported, said donors were holding out to see the results of the forthcoming local elections in England.

One was quoted as saying “My lot are waiting for evidence that their money will actually buy influence. It’s not clear how long she’ll last, and whether our party has learned to stop defenestrating leaders,” while another said “Some colleagues haven’t given up on leadership ambitions, and are keeping their donors to themselves for now because they sense she’ll be ousted next year.”

Under a revamp of the leadership rules, Badenoch is immune from a vote of no confidence until November, which will mark a year since she was elected by party members in a contest with Robert Jenrick.

Care minister Stephen Kinnock has told viewers of Sky News that “my heart goes out to steelworkers and their families and communities in Scunthorpe that are facing very challenging times.”

He said “It’s absolutely clear that we’re focused on getting a commercial deal with Jingye, the owners of the Scunthorpe steelworks. That commercial deal, I think can put the steelworks on a solid footing to ensure that it’s competitive and viable.”

He said:

Steel is an absolutely vital foundational industry for our economy, for our national security. And this government is committed to building a strong steel industry after many years of neglect from our Conservative predecessors. And we will ensure that happens.

But the right way forward is for a commercial deal, so that you have a business managing in a fast moving market, a highly competitive market. That is what’s best for the future of the steel industry, and that is the deal, that partnership, is what we need to build.

On Thursday, ministers were thought to have offered to provide funding for the purchase of raw materials such as iron ore and coking coal for Scunthorpe’s blast furnaces, with the government under mounting pressure to nationalise British Steel.

As well as making that call just now for Keir Starmer to call a summit over Trump’s trade tariffs, Liberal Democrat leader Ed Davey will be making a campaign visit to the River Severn later today, and the party has been pushing its campaign about water quality.

Speaking on LBC News this morning, spokesperson Munira Wilson said the Labour government had “taken some steps forward” but said it had not gone far enough.

Criticising what she described as “years of frankly neglect of our rivers and seas by the previous Conservative government”, she told listeners:

I don’t think the Labour government has gone far enough with their new legislation. We know that Ofwat as a water regulator is totally discredited. It doesn’t have the teeth to take action. So I think we need a new regulator with teeth that will actually be able to crack down on this disgrace. Because I think the public are shocked to see this disgusting sewage going into our precious waters and seas, day after day, month after month, year after year.

Liberal Democrat analysis of data claimed that the top ten longest sewage spills last year included one single sewage dump from South West Water into Salcombe Regis Stream lasting for 366 days due to the leap year.

The party is calling for a ban on bonuses for water company bosses, asserting that water company executives received over £20m in total last year – including basic pay, pension contributions and bonuses.

Davey calls on Starmer to hold 'summit of world leaders' over 'Trump's nonsensical economic policies'

Ed Davey has called on the prime minister to hold a summit of world leaders to work out a unified response to what the Liberal Democrat leader called “Donald Trump’s nonsensical economic policies.”

Davey also criticised the positions taken by Conservative opposition party leader Kemi Badenoch, and Reform UK’s Nigel Farage, the MP for Clacton.

The Liberal Democrat leader said:

Donald Trump’s nonsensical economic policies have thrown the world economy into crisis and put thousands of British jobs at risk. Now is not the time for complacency.

The prime minister should show the White House that we have alternatives by hosting a summit of world leaders and building an economic coalition of the willing.

Both Kemi Badenoch and Nigel Farage want the UK to go cap in hand to Trump and beg him for a trade deal. That is not the way to stand up for Britain or our national interest.

We need to show a united front and put pressure on the US to not just make this 90-day pause permanent, but remove their remaining tariffs on British businesses and our car industry completely.

The best way to end this trade war for good is by standing tall with our allies, not cowering in the corner.

Earlier today, speaking on Sky News, care minister Stephen Kinnock said the government was still pursuing a trade deal with Washington.

He told viewers “Things change all the time, so I think it’s best for us to stay focused on the fact that we have that objective of getting a trade deal with the US and [Business secretary] Johnny Reynolds and the prime minister and other colleagues are very focused on getting that deal.

“But of course, we also have to be prepared for the eventuality that we don’t get it immediately, or that it takes some time to come, and what that means is we’ve got to build a UK that stands strongly on its own two feet.”

Chancellor Rachel Reeves is expected in Poland today for informal discussions with her counterparts in the EU.

Ahead of her visit, a spokesperson for the Treasury said “the chancellor will be travelling to Warsaw to make the case for deeper defence financing cooperation with our European allies so together we deliver greater economic and national security in a changed world.”

Earlier, while appearing on Sky News, care minister Stephen Kinnock said the government was intent on “rebuilding our relations with our European partners and allies” which he said had been “so badly damaged after years of Conservative failure and incompetence.”

He told viewers that the government aimed for good deals with all major trading partners, saying “We hope [for] a good trade deal with the US [and] a removal of friction in terms of relations with the EU. You know, let’s not forget, the EU is still, by some margin, our most important trading partner. And so that combination of getting the trade policies right, along with an industrial strategy that builds our own capability, is the right way to go.”

Veteran Labour MP Diane Abbott has criticised the government for its spending priorities, after the announcement that the UK was to provide an additional £450m in support for Ukraine in its war effort against Vladimir Putin’s Russia.

Posting to social media, the 71-year-old, who has been an MP since 1987, said “There is plenty of money for war, just not for the winter fuel allowance.”

The UK and Germany are hosting a meeting of 50 nations at Nato’s headquarters in Brussels on Friday. British defence secretary John Healey and his German counterpart, defence minister Boris Pistorius, will co-chair the 27th Ukraine Defence Contact Group, a role previously performed by the US defense secretary until Donald Trump’s return to office.

European allies have announced a “surge” of military support for Ukraine, with the British government unveiling £450m (€516m / $580m) in UK-led aid. The funding will provide repairs and maintenance to vehicles and equipment as well as radar systems, anti-tank mines and hundreds of thousands of drones.

In comments briefed in advance, PA Media reported that Healey would tell the contact group:

The work of the Ukraine Defence Contact Group is vital to put Ukraine in the strongest possible position and pile pressure on Putin to help force him to end this terrible war.

We cannot jeopardise peace by forgetting the war, which is why today’s major package will surge support to Ukraine’s frontline fight. 2025 is the critical year for Ukraine. Our job as defence ministers is to put into the hands of the Ukrainian war fighters what they need. We must step up to deter Russian aggression by continuing to bolster Ukraine’s defences.”

Liberal Democrats say they welcome the move, but described the sums involved as “small change”. Defence spokesperson Helen Maguire said:

While we welcome any increase in support for Ukraine, this package is small change compared to what’s needed to combat Putin’s barbaric war. John Healey is right: 2025 is a critical year. But Britain needs to do more.

The UK must lead the charge in seizing the Russian assets held here in Britain -- funnelling oligarchs’ money to back Zelenskyy’s brave defence of Ukraine’s sovereignty. Without that, we risk failing Ukraine in their hour of greatest need.

My colleague Jakub Krupa is following events in Brussels on our Europe live blog.

Incidentally here is the ONS chart of GDP figures from 2007 to the present day, which shows the UK economic growth has essentially picked up a little since May 2023, after a period of post-pandemic stagnation.

You can follow the impact on markets of the GDP news and the latest tariff shenanigans coming out of Washington and Beijing with Kalyeena Makortoff on our business live blog.

Liberal Democrat spokesperson Munira Wilson was asked this morning about how well the party felt the government had been handling the imposition of tariffs on the UK and the broader global economy.

She was challenged by LBC News presenter Vanessa Baffoe whether, given Donald Trump’s sudden climbdown on some of the higher threatened tariffs, the government had been right to delay any immediate retaliation. Wilson told listeners:

Well, the Liberal Democrats have said all along, you’ve got to stand up to a bully. So I think what we want to see the prime minister doing is building an economic coalition of the willing, working with our allies to boost trade elsewhere, whilst the US has proven itself an unreliable partner

And that’s why Liberal Democrats have been consistently calling for the UK Government to work for a stronger and better trade deal with the EU, to cut red tape for our businesses, so that we can be exporting and boosting growth in our economy here with the EU.

The care minister has defended the government’s cautious response to developments in global trade after the sweeping imposition of tariffs by the US administration in Washington.

Stephen Kinnock said “If we were to just jump in one direction or the other every time there’s a new development, we would be jumping around all over the place. I don’t think that that’s going to be in the interest of our economy or of our national security or of our business community.”

Kinnock said he understood that the media “are keen for us to give a running commentary on what president Trump is doing” but argued that “we feel that it’s much better to show that we are acting in the national interest, that we are continuing to be very vigilant.”

He reiterated that “the prime minister has said all options are on the table. And if it does come to the point where retaliation is needed, then we are, of course, ready to do that.”

On Sky News, business correspondent Gurpreet Narwan dsescribed the economic news as “welcome” for the government, but cautioned that this might be “the last growth we see.”

She told viewers that businesses in the UK had faced “crippling tax rises, those national insurance contribution increases coming down the road, [and] confidence is falling” adding that “this feels a bit kind of redundant already, doesn’t it? Because of the week we’ve had, it might be the last growth we see now that Donald Trump has imposed sweeping tariffs on countries across the world.”

She continued “Businesses might be nervous about investing, for example, about hiring, and they still don’t know what Donald Trump is exactly up to. So overall, the outlook for the UK economy is pretty poor because of what Donald Trump is doing in the US.”

On the media round today for the Conservatives was shadow minister for the environment Robbie Moore, who said “of course, we welcome any growth figures” when asked about February’s GDP figures.

However, he expressed concern about the wider direction of the economy, telling Sky News viewers:

This is just for February, and we know that the OBR gave a huge amount of caution as we head into this year, projecting a reduction in growth. And also this is before all of those punitive tax increases kick in this month, like the jobs tax, employers national insurance increases, minimum wage increases, business rates increases.

So of course, we welcome it, but based on a lot of the conversations that I was having literally just yesterday with manufacturing and engineering businesses in my constituency of Keighley, their business certainty is very, very low.

Jamie Grierson is a senior news reporter for the Guardian

A senior economic adviser to Donald Trump has said it would take “an extraordinary deal” for any country, including the UK, to improve on the 10% tariff rate the US has imposed almost worldwide, pouring cold water on Downing Street’s hopes for a breakthrough.

Speaking to CNBC, Kevin Hassett, an economist and adviser to Trump, said any deal that would persuade the president to go below that would need to be “extraordinary”.

“I think everybody expects that the 10% baseline tariff is going to be the baseline,” he said. “It is going to take some kind of extraordinary deal for the president to go below there.”

While the UK is pressing for a reduction in tariffs through a trade deal, Downing Street has stressed throughout that the world has changed and the UK must also pursue other avenues for economic growth and agreements with other partners.

Read more from Jamie Grierson here: Trump’s economic adviser dampens Starmer’s hopes of tariffs relief

Speaking on LBC News, Liberal Democrat education spokesperson Munira Wilson welcomed what she described as “these green shoots of recovery” after GDP rose 0.5% in February, but said growth “risks being choked off because of the jobs tax”, in a reference to rising employer national insurance contributions.

Wilson warned that “additional cost, both in terms of national insurance rises and with business rates increasing on our high streets, is stifling growth. And that means less money going to the chancellor that can then be spent on rebuilding our broken public services, like our schools and hospitals.”

Stride: 0.5% GDP rise shows Labour have 'killed growth stone dead'

Responding to news that the economy had grown by 0.5%, shadow chancellor Mel Stride said “Since coming to office, Labour’s choices have killed growth stone dead.”

The shadow chancellor asserted that there was “still a long way to go to recover.”

Referring to chancellor Rachel Reeves’ spring statement, he said “At the emergency budget, the forecasts for growth, inflation and borrowing all moved in the wrong direction because of Labour’s decisions. Hardworking families deserve better than a Government crowing about sluggish growth whilst they will be £3,500 worse off because of the jobs tax.”

Reeves: GDP growth is 'encouraging sign, but we are not complacent'

Chancellor Rachel Reeves has responded to better than expected monthly GDP figures for February. In a statement, she said:

These growth figures are an encouraging sign, but we are not complacent. The world has changed and we have witnessed that change in recent weeks.

I know this is an anxious time for families who are worried about the cost of living and British businesses who are worried about what this change means for them.

This government will remain pragmatic and cool-headed as we seek to secure the best deal with the US that is in our national interest.

At the same time, we will be relentless in our work to kickstart economic growth, provide security for working people and renewal for Britain.

UK economy grows by 0.5% but tariff war impact yet to come

Phillip Inman is an economics writer for the Guardian

The UK economy unexpectedly expanded by 0.5% in February, according to official figures, in a boost for Rachel Reeves before an expected downturn triggered by Donald Trump’s tariff war.

Reversing a modest fall in January, the increase in gross domestic product in February could mark the last period of expansion before the threat of a global trade war dampens business investment and consumer spending.

A poll of economists had expected the economy to grow by 0.1% in February.

This month, consumers face inflation-busting utility bill and council tax increases while employers must cope with £25bn of tax rises.

Government critics are expected to accuse ministers of presiding over a long period of stagnation induced by last October’s tax-rising budget.

Kinnock: growth figures show 'the dividend from a government that is stable'

Care minister Stephen Kinnock has said that higher than expected GDP growth figures for February are “the dividend from a government that is stable”.

Speaking on Sky News, the Labour MP for Aberafan Maesteg said:

I think what we’re seeing is the dividend from a government that is stable, is focused on our growth mission, and is absolutely committed to supporting businesses across the country in terms of getting investment in and giving them the certainty they need.

He continued, telling viewers that the government was “freeing up planning so that can unleash businesses to invest,” and said that Labour were introducing “new rights for employees, which will, I think, really help to get a better relationship between employers and employees going across the economy.”

He also boasted of Labour’s increases to minimum wage rates, saying:

We’re seeing the rise in the living wage, which I think is also helping to put more money into the economy, giving consumers more confidence. That mixture of supply side and demand side measures are really helping to build an economy that is fit for the future.

Welcome and opening summary …

Good morning, and welcome to our rolling UK political coverage for Friday. Here are your headlines …

  • The UK economy unexpectedly expanded by 0.5% in February, according to official figures, in a boost for Rachel Reeves before an expected downturn triggered by Donald Trump’s tariff war

  • The chancellor said “These growth figures are an encouraging sign, but we are not complacent”. Shadow chancellor Mel Stride said the rise showed that growth had been killed “stone dead”

  • Keir Starmer has said he has still not spoken to the US president since he brought in trade tariffs which have destabilised the global economy

  • A record fine over freedom of speech breaches at the University of Sussex has sparked wider anxiety in the sector

  • The UK and Germany are co-chairing a meeting in Brussels over support for Ukraine. The government has announced a £450m “surge” of military support to Ukraine

Parliament is in recess, but there will be some local campaigning for the council elections in England scheduled for next month, including Liberal Democrat leader Ed Davey visiting the River Severn in Shrewsbury. The funeral of former Scottish government minister Christina McKelvie is due to take place in Glasgow.

It is Martin Belam with you today. You can reach me at martin.belam@theguardian.com if you have spotted typos or what you consider to be errors or omissions, or you have questions.

 

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