Labour has been told to “be prepared for all scenarios”, amid the prospect of a Trump trade war due to the President-elect threatening to impose tariffs on all imports into the United States.
Trump is set to re-enter the White House today, just months after defeating Vice President Kamala Harris in 2024’s US Presidential Election.
He has vowed to slap a 25 per cent tariff on goods imported from Mexico and Canada – a punishment for what he says is their failure to curb the flow of drugs and undocumented migrants into the US.
These steeper measures could come into effect just hours after his inauguration later today.
When asked what the UK would do if the same tariffs were imposed on it, Darren Jones, the chief secretary to the Treasury, said the Government has a plan in place.
Speaking to Sky News, he said: “It’s not breaking news that the government prepares for all scenarios.”
However, he said that he believes that the former President’s return to the White House “could be an enormously positive thing with lots of opportunities”.
He said: “Britain is a brilliant country with huge capabilities and assets which are valued not just to the British people, but to the American economy and other parts of the world.”
“I have no doubt whatsoever that under the Trump administration, there are going to be plenty of opportunities that we can seize, and we should be positive about that and be strong about securing this deal.
“My broader point is that we shouldn’t be looking at President-elect Trump’s inauguration as a risk, or a bad thing for the UK. It could be an enormously positive thing with lots of opportunities.”
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Councils warn financial constraints threaten new housing delivery
Most local authorities will struggle to deliver new social housing at scale as their budgets are on the “brink of collapse”, according to research suggesting the Government’s “council housing revolution” may be in jeopardy.
A survey found two-thirds of 76 councils managing more than 870,000 homes said the viability of their dedicated budgets are under threat, with a risk many will not be able to balance the books by the end of the decade.
The research, commissioned by Southwark Council, also showed 93 per cent of councils’ housing budgets are showing signs of financial stress, with these councils taking or expecting to take “substantial action” – including tapping into emergency funds.
In total, 61per cent of councils have already cancelled, paused or delayed housebuilding projects, while more than a third have cut back on repairs and maintenance of council homes.
Nearly three-quarters (71 per cent) said they expect to abandon, pause or delay current council housing projects, while 68% are preparing to scale back commitments to redevelop or build new homes.
In addition, 28 per cent of councils said they are likely to sell council homes in a bid to secure financial stability, with 67 per cent confirming that, under current circumstances, there is high risk they will not be able to set a balanced budget by 2029.
Keir Starmer congratulates Donald Trump ahead of inauguration
Starmer is said to want to get a deal before Trump retakes officePA/REUTERS
Sir Keir Starmer has congratulated President-elect Donald Trump ahead of his inauguration, stating that the special relationship between the US and UK “will continue to flourish for years to come”.
Trump is set to re-enter the White House today, just months after defeating Vice President Kamala Harris in 2024’s US Presidential Election.
The Prime Minister paid tribute to the “depth of friendship” between the 47th president and the UK, and pledged to continue to “work together to ensure the success of both our countries and deliver for people on both sides of the Atlantic”.
In a statement on Sunday evening, the Prime Minister sent his congratulations to Trump.
“For centuries, the relationship between our two nations has been one of collaboration, cooperation and enduring partnership. It is a uniquely close bond,” Starmer said.
“Together, we have defended the world from tyranny and worked towards our mutual security and prosperity.”