Newslinks for 7th April 2025

Reaction to US tariffs 1) Britain to suffer £22bn hit

“Donald Trump’s tariffs are set to deliver a £22bn blow to Britain, economists have warned. New analysis from KPMG predicts that the US president’s trade war will shave 0.8pc off the economy over the next two years, as 10pc tariffs threaten Rachel Reeves’s attempts to kickstart growth. This reduction will leave Britain £21.6bn worse off by 2027, according to KPMG, piling further pressure on public finances and increasing the likelihood of tax rises and spending cuts.” – Daily Telegraph

• Global stocks tumble as Donald Trump offers no respite from tariffs – FT
• UK could face ‘Eurozone-style economic meltdown’ after Trump tariffs pummel markets – Daily Express
• Global stock market meltdown leaves Wall Street fearing repeat of 1987’s Black Monday amid Trump tariff fallout – MailOnline

Comment

• Trump is exposing the utter incoherence of Starmer’s economic agenda – Nick Timothy, Daily Telegraph
• Trump’s fight for a third term has begun – and he could pull it off – Sarah Baxter, The i
• Americans kept asking me ‘What the hell is going on in Britain?’ – we need to be very worried by the answer – Harry Cole, The Sun
• Europe must invest in its own survival – The Times View

Reaction to US tariffs 2) Starmer to relax green rules to boost UK car industry

“Gas guzzling supercars are set to be exempted from the 2030 ban on new petrol vehicles as ministers scramble to help companies hit by Donald Trump’s tariff war. Sir Keir Starmer said he wanted to ‘back British brilliance’ as he confirmed yesterday that luxury vehicle manufacturers, such as Aston Martin, Bentley and McLaren, will be allowed to continue selling petrol-only models beyond the cut-off year. In a victory for ‘white van man’, ministers have also agreed to delay the ban on petrol and diesel vans until 2035.” – Daily Mail

• STEP UP A KEIR: Starmer’s plans to boost Britain’s pummelled motor industry – The Sun
• Government will step in to support key industries amid tariff turmoil, says Starmer – The Guardian

Comment

• Trump has proved what a humiliating position the UK is in – Ian Dunt, The i
• Keir Starmer can boost growth by turning Brexit Britain into true beacon of free trade – The Sun says

>Today:

• Condescending Keir has nowhere to hide from his terrible economic record – Gareth Davies

Workers facing a hit of up to £11,000 over the next five years due to Labour’s ‘job tax’

“Chancellor Rachel Reeves’ hike to employer National Insurance contributions (NICs), which she announced in October, is now in effect and is set to keep down wages. From 6 April, the rate of employer NICs rose from 13.8 per cent to 15 per cent as the Treasury attempts to raise around £25billion a year… The analysis revealed that of the £25.7billion hit to firms from Ms Reeves’ ‘jobs tax’ in 2029/30, around £19.5billion would get passed on to workers.” – MailOnline

• Business chiefs warn of high street bloodbath as Labour’s £25billion tax raid comes into force – The Sun
• Rachel Reeves facing legal action from care homes over national insurance tax raid – Daily Express
• State pension triple lock increase to be ‘wiped out’ by rising bills and winter fuel cuts – Daily Express

Comment

• The mission is rescuing the NHS and raising the state pension – Torsten Bell, Daily Express
• Trump’s tariffs have left Reeves in a hole of her own making – Liam Halligan, Daily Telegraph
• British employers do not have bottomless reserves of cash put aside in a piggy bank for the Government to draw on – Richard Walker, The Sun

Birmingham’s bin strike crisis could kill people as the weather heats up, experts warn

“The city has been plagued by ongoing bin strikes, causing streets to pile high with an estimated 170,000 tons of rubbish… Now, with highs of 21C forecast for the coming week, the increased heat could put residents at a huge risk of disease. As rats continue to thrive in the city’s squalor, with some reported being ‘the size of cats’, concerns have been raised the animals could begin to spread Weil’s disease.” – MailOnline

• Birmingham-style bin strikes threatened ‘up and down the country’ – The i

Comment

• Britain is in the grip of militant rule but one tax change could free us – Michael Mosbacher, Daily Telegraph

Tories must not try to ‘out-Farage Farage’, warns shadow Scottish secretary

“Andrew Bowie warned the Tories against “aping Nigel Farage at every opportunity”, telling Holyrood magazine that copying Mr Farage’s Reform UK party would attract too few voters for the Tories to return to government. The shadow Scottish secretary’s comments were published after Jamie Greene quit the party last Thursday, claiming it was pursuing a “Reform-lite agenda” under Russell Findlay, its new leader.” – Daily Telegraph

• Andrew Bowie: We’ve got a long way to go to win back the trust – Holyrood
• Areas receiving levelling-up funds show smaller Reform UK vote share, study finds – The Guardian
• Bombshell poll predicts how many seats Nigel Farage’s Reform will win at next election – Daily Express

>Today:

• The best case against a pact with Reform UK is that they’re openly trying to kill the Tory Party – Gavin Barwell

News in brief

• BBC’s Muslim ‘reverts’ was a dangerous blunder – James Price, UnHerd
• How Robert Jenrick became the unofficial Leader of the Opposition – Tom Jones, The Critic
• Tariff response: slash red tape and lure the non-doms back – Andrew Griffith, City.AM
• Showing Adolescence in schools lets parents off the hook – Cristina Odone, The Spectator
• Reform is ending Scotland’s indyref era – Dani Garavelli, Prospect