PM says step up in defence spending can safeguard the future of NATO

PM Keir Starmer has underlined the UK’s ‘cast iron commitment’ to spending 2.5% of GDP on defence to respond to growing threats, ahead of a NATO summit

Prime Minister Keir Starmer has underlined the UK’s ‘cast iron commitment’ to spending 2.5% of GDP on defence to respond to growing threats, ahead of a NATO summit where he will say a step up in defence spending can safeguard the future of the Alliance.  

At the summit in Washington D.C., the PM will emphasise his determination to face down global threats to Britain and its western allies. He will praise NATO members’ efforts to increase defence spending and say that further increases in spending will help the alliance tackle the nature of today’s threats.  

The Prime Minister has also confirmed today that he will launch the Government’s Strategic Defence Review next week, with detailed preparatory work already undertaken by Defence Secretary John Healey – who will oversee the review.  

The review will determine the future defence posture of the UK, the capabilities needed and will set out a roadmap to achieving 2.5% of GDP on defence. He will confirm that the review will put a ‘NATO-first’ policy at the heart of Britain’s defence plans.  

Prime Minister Keir Starmer said: “There is no more important duty for me as Prime Minister than keeping the people of our country safe.  

“At a time when we face multiple threats at home and abroad, we must make sure we are ready to defend ourselves. That’s why I have immediately ordered a root-and-branch review that will secure Britain’s defences for the future.  

“Working with our most important partners around the world, our Strategic Defence Review will make sure the UK is sending a clear message to those who seek to undermine peace and democracy – you will not succeed.”

Defence Secretary John Healey said: “Britain’s commitment to NATO is unshakeable. We cannot have prosperity without security and we must never take our ability to live freely for granted. 

“The world is increasingly volatile with rapidly changing global threats. In the footsteps of Bevin, our government will help ensure we have a strong NATO in this increasingly insecure world. 

“Our government’s first duty is to keep the country safe. That’s why we will increase defence spending and launch a Strategic Defence Review to ensure we have the capabilities needed to protect the UK now and in the future. The Review will also set out defence reforms to secure faster procurement and better value for money.”

Foreign Secretary, David Lammy, said: “NATO is part of Britain’s DNA. 75 years ago, Ernest Bevin helped to establish NATO. Today, as then, our commitment to NATO is completely unshakeable.

“We cannot have stability and prosperity without national security. That’s why NATO is the ultimate guarantor of our ability to live freely and build a more prosperous future, for the people of this country and our Allies.

“Ukraine’s security is our security, so our priority for Washington must be to show that NATO support for Ukraine remains iron-clad, and our support will be sustained. Putin thinks he can outwait the West, but he is mistaken.” 

Building on our existing global defence partnerships such as AUKUS and GCAP, the Prime Minister is determined to make sure the UK is one of the leading defence players on the world stage, and alongside our like-minded partners prove that progressive, peaceful democracies will ultimately triumph over tyranny.  

The Strategic Defence Review will consider the nature of the threats we face – including Putin’s ongoing brutal invasion of Ukraine, continued instability in the Middle East and the rise of authoritarian countries – and the capabilities we need to tackle them.  

That includes the shape of our Armed Forces and their readiness to fight, enhancing our defence partnerships, developing a new defence industrial strategy, ensuring our defence staff have the capabilities and skills needed, and delivering procurement reform. 

The Review will be conducted in consultation with allies, industry and external experts and its recommendations will be reported to the Prime Minister and Defence Secretary, as well as being laid before parliament.  

A major element of the Strategic Defence Review will be an emphasis on deepening our defence ties with NATO countries and other international partners. 

Over the next two days, the Prime Minister will meet the UK’s most important allies for the first time on the international stage, to drive forward progress on defence and other priorities – including supporting Ukraine against Russia’s ongoing illegal war, which has now entered its third year.

Russia’s attack on Ukraine children’s hospital ‘a depraved act of violence’

Statement by UK Permanent Representative to the UN Ambassador Barbara Woodward at the UN Security Council meeting on Ukraine

I would like to start by thanking Under Secretary-General Msuya and Doctor Zhovnir for their briefings. And I welcome the participation of Ukraine, Poland and the EU in our meeting today.

“I offer the UK government’s deepest condolences to Doctor Zhovnir and the victims of Russia’s latest appalling airstrikes across Ukraine, and to their families and their loved ones. 

“Since 23rd February 2022, in repeated attacks on Ukraine, Russia has killed Ukrainian children. Russia has maimed and injured Ukrainian children. Russia has abducted Ukrainian children. And yesterday, Russia came back for wounded and sick children in Okhmatdyt hospital. This is cowardly depravity. And this must stop.

https://twitter.com/i/status/1810710320932958211

“I visited Okhmatdyt Hospital last December. It has become a refuge for children injured in attacks across Ukraine.

“I saw for myself the dedication of Doctor Zhovnir and his staff and the care they provide. I met two young girls, among many, who were resolutely learning to walk again with prosthetics.

“One had been injured in Russia’s attack on Kharkiv, the other in Russia’s attack against Kramatorsk railway station. Colleagues, intentionally directing attacks against civilians and civilian objects constitutes war crimes. The ICC has already issued arrest warrants for the Russian President, former Defence Minister, the Chief of the General Staff and the Commissioner for Children’s Rights for suspected war crimes. 

“Since 23rd February 2022, Russia has violated the UN Charter and repeatedly breached international humanitarian law. Its conduct is a disgrace to the Security Council and especially to the President’s seat. Colleagues, we must join together to condemn Russia’s actions and stand foursquare behind the UN Charter and its guarantees of sovereignty and territorial integrity, and behind international law and international humanitarian law. 

“For our part, the UK, together with our partners, will continue to ensure Ukraine is able to defend itself from these barbaric acts of violence. As confirmed by my Defence Secretary this weekend in Odessa, where he announced new military aid for Ukraine’s defence.

“At the NATO summit this week, we will demonstrate our resolve to support Ukraine for as long as it takes. We will also work to ensure accountability and justice for the Ukrainian people. And we will support Ukraine to secure a just and lasting peace in line with the UN Charter. 

“I want to commend the exceptional resilience of the Ukrainian people, and in particular, to pay tribute to the Ukrainian emergency services, especially over the last 48 hours.

“I also express my admiration for the doctors and other hospital workers at Okhmatdyt and for their patience.

“In conclusion, I call on Russia again to end its aggression against Ukraine and immediately, completely and unconditionally withdraw all its forces from Ukraine’s internationally recognised borders and stop killing Ukrainian children.”

Widespread international condemnation – quite rightly – then, but meanwhile in Gaza schools and refugee camps are being attacked by daily missile strikes … what’s the difference? – Ed.

Fixing the Foundations

Chancellor unveils a new era for economic growth

  • Chancellor pledges she will take action to fix the foundations of the economy to make everyone, not just a few, better off.
  • Government to get Britain building by taking immediate action on planning reform and unblocking stalled sites to unlock thousands of homes.
  • Immediate removal of the de facto ban on onshore wind in England as government starts delivering on clean energy mission to cut bills for families and boost energy independence. 

The Chancellor yesterday (8 July) promised to take immediate action to fix the foundations of the economy, rebuild Britain and make every part of the country​ better off.

In her first speech as Chancellor, Rachel Reeves pledged to leaders of some of the UK’s pioneering industries to build growth on strong and secure foundations built on stability, investment and reform, and forged through a new partnership with the private sector.

Addressing the difficult economic inheritance this government faces, she committed to taking immediate action to drive sustained economic growth, the only route to improving the prosperity of our country and the living standards of working people.

Setting out her first steps to deliver on the government’s commitments in its manifesto that every action it takes will be based on sound money and economy stability, the Chancellor promised a new economic model that will grow the economy and keep taxes, inflation and mortgages as low as possible.

The Chancellor said had the UK economy grown at the average rate of OECD economies over the fourteen years from 2010, it would be £143.3 billion larger – worth £5,053 for every household in the country. This could have brought in an additional £58 billion in tax revenues in the last year alone to sustain our public services.

Taking decisive action, the government is today announcing a series of measures to lay the foundations for a dynamic, modern and growing economy, including taking urgent steps to build 1.5 million homes over the next five years and the immediate removal of the de facto ban on onshore wind in England, as part of its clean energy mission.

Chancellor of the Exchequer Rachel Reeves said: “Today I am taking immediate action to fix Britain’s economic foundations.

By growing our economy we can rebuild Britain and make every part of the country better off.”

Deputy Prime Minister Angela Rayner said:“Our country is under new management and a new era for economic growth will be built on secure foundations.

“The Chancellor and I will work in lockstep to kickstart the economy, unleashing housebuilding and powering local growth.

“Change starts now. We will unblock the bottlenecks and drive forward a transformational package to build the homes people need.”

Energy Security and Net Zero Secretary Ed Miliband said: “Every family has paid the price of the ban on onshore wind farms in higher energy bills.  This ban has undermined our energy security, put costs on people’s bills – especially those on lower incomes – and held us back in our fight against climate change.

“This Government is wasting no time in delivering the bold plan we need to take back control of our energy; boosting our energy independence and cutting bills for families as we tackle the climate crisis.

“Getting rid of this ban and giving priority for planning permission for much needed infrastructure sends an immediate signal to investors here and around the world that the UK is back in business, an immediate step in our mission to make Britain a clean energy superpower.”

The UK government is taking swift action on its central growth mission by announcing the following:

Planning

The government is taking swift action to identify and unblock key ‘stalled sites’ to get large housing schemes moving forward, starting with four sites across England to unlock over 14,000 homes: Liverpool Central Docks, Northstowe, Worcester Parkway and Langley Sutton Coldfield.

The Chancellor has also welcomed the Deputy Prime Minister’s commitment to make the economic benefit of development a central consideration when intervening in the planning system. This starts today by recovering two appealed planning applications for data centres in Buckinghamshire and Hertfordshire.

To facilitate this new approach, the Deputy Prime Minister will also write to local mayors and the Office for Investment to ensure that any investment opportunity with important planning considerations that comes across their desks is brought to her attention and to the Chancellor’s.

This will help to ensure the planning system can unlock major schemes from clean energy projects and transport infrastructure to film studios and art-entertainment venues.

The Chancellor has also confirmed that the government will support local authorities with 300 additional planning officers across the country. 

Further announcements will be made in the coming weeks to accelerate the development of housing and infrastructure, including launching a landmark consultation on an updated, growth-focused National Planning Policy Framework to include mandatory housing targets and a requirement to review greenbelt boundaries where necessary to meet them.

These will prioritise Brownfield and “grey belt” land for development to meet housing targets where needed, partnered with new ‘golden rules’ that will make sure the development this frees up will also deliver thousands of affordable homes, including more for social rent.

Critical major infrastructure

The current planning regime acts as a major brake on economic growth which is why the government will make the changes the country needs to forge ahead with new roads, railways, reservoirs, and other nationally significant infrastructure.

The government will set out new policy intentions for critical infrastructure in the coming months, ahead of updating relevant National Policy Statements within the next 12 months to provide certainty to industry. We will legislate to ensure they are updated at least every 5 years.

The government will also build on the Strategic Spatial Energy Plan which is being developed by the National Energy System Operator to speed up the roll out of clean power, and will seek to expand the use of spatial planning to other infrastructure sectors.

The Chancellor has asked the Secretaries of State for Transport and Energy Security and Net Zero to prioritise taking decisions on critical infrastructure projects which are with them now.

To go further, to help speed up delivery on infrastructure such as transport and energy, the government will review how it can unlock critical infrastructure, without weakening environment protections.

Alongside this, the government will make sure energy projects are prioritised in the planning system and consult on including onshore wind power developments in the Nationally Significant Infrastructure Projects (NSIP) planning regime.

Further details on ending the de facto ban on onshore wind will be set out later by the Department for Energy Security and Net Zero, and the Department for Levelling up, Housing and Communities.

Martha Lane Fox, President of the British Chambers of Commerce, said: “Fixing the foundations of the economy can provide businesses with the stability and certainty they need to unleash a wave of investment to create growth and new jobs.

“Labour’s pledges to create an industrial strategy, improve trade relations with the EU, and boost skills training all have capacity to make a huge difference. 

“Today’s commitment to deliver large scale infrastructure at greater pace, especially green energy projects and more housing where people want to live, is very welcome.

“But policy must be backed up with better skilled and resourced planning departments to deliver this step change. That’s why the pledge to fund an extra 300 planning officers is so important.

“It’s also why the BCC’s Planning Skills Fund has been set up in partnership with Government. It will develop an additional pipeline of new and upskilled planning talent to boost growth in our local economies.”

David Thomas, Chief Executive Officer, Barratt Developments’ said: “We welcome the Government’s commitment to reform of the planning system and their drive for growth.

“Building more new homes will bring huge economic and social benefits to the UK, and it is vital that local and central government are united with industry to plan positively to deliver high quality new homes and developments across the country.”

Keith Anderson, Chief Executive Officer, Scottish Power said: “I welcome the clear sense of urgency and direction set out by the Chancellor today.

“Prioritising clean energy infrastructure and building at speed and at scale will unleash strong economic growth across the country.

“If the UK can halve the time it takes to get renewables, electricity grid and storage projects through the planning system, we’ll look to double our investment over the coming years.”

Henrik L. Pedersen, Chief Executive Officer, Associated British Ports said: “Associated British Ports has an ambitious project pipeline of major investments in port infrastructure including supporting the development of floating offshore wind in Wales as well as green hydrogen and carbon capture and storage in the Humber.

“The right enabling measures from Government will unlock these developments at pace. In this regard the Chancellor’s speech is very welcome and encouraging.”

Mark Reynolds, Chairman & Chief Executive Officer, Mace Grop, Co-Chair of the Construction Leadership Council said: “Today’s announcements show a welcome proactive approach to tackling the delays to the planning system that are costing the UK up to £11bn a year in growth and hampering the delivery of the homes and infrastructure we sorely need.

“The focus on cutting the red tape to progress nationally important projects, such as data centres, combined with increased resourcing of the planning departments, will bring a renewed energy and focus to the construction sector.

“It’s particularly welcome to see the Chancellor has put this at the top of her agenda – we stand fully behind the delivery of the Government’s ambitions.”

Kate Kenny, Senior Vice President, Jacobs said: ““We greatly welcome the changes outlined by the Chancellor today to simplify the planning regime and unlock greater investment in critical national infrastructure projects.

“The updating of National Policy Statements will also play a major role in providing clarity and certainty of pipeline for industry and its supply chains to invest in the long-term skills required to deliver the clean energy, transport, water and other significant infrastructure projects that the UK requires for a prosperous future.”

Tom Glover, UK Country Chair, RWE said: “We fully support the new government’s focus on unblocking the planning system, and welcome commitments to prioritise taking decisions on critical national infrastructure projects as soon as possible.

“Ensuring that local authorities are properly resourced to deliver a real acceleration in planning approvals is also crucial – we therefore welcome the announcement to fund an additional 300 planning officers. 

“As a leading renewables developer we are also pleased that the government are moving swiftly to end the ban of onshore wind, in the long-term this means committing to bring projects over 50MW back into the Nationally Significant Infrastructure Projects (NSIPs) regime. We look forward to further information on this in due course”.

Andrea Rossi, Chief Executive Officer, M&G said: “As a major investor in the real economy we welcome efforts to provide long-term policy certainty and the ambition to get Britain building. Speed and ambition are crucial.

“By providing clarity on infrastructure priorities, combined with a swifter planning system, we can deliver investment, kick-start the economy and secure good returns for UK pension policy holders.”   

Chris Cummings, Chief Executive Officer, The Investment Association said: “The Investment Management industry strongly supports the Chancellor’s ambition to drive economic growth. There is more our industry can do to support the UK economy and its people, and we are ready to work with the new government to achieve this.  

“Investment is the engine of economic growth, and our industry supports the government in finding innovative ways for more capital to be channelled into thriving British businesses and infrastructure projects. Removing blockers in the planning system will be key to this.

“It is vital we open straightforward ways for pension funds to invest in the housing, transport and energy projects we all rely on by removing regulatory obstacles and overturning the culture of “safetyism” that has curtailed economic growth.” 

Rob Perrins, Chief Executive Officer, Berkeley Group said:  “We’re hugely encouraged to see the clear priority and focus on housing delivery as part of the Government’s mission for growth.

“Today’s announcements are a very positive start and we will continue to work closely with Government to help unlock the potential of brownfield regeneration sites to deliver good green homes, both affordable and private. Reviving urban land has a vital role to play in driving the sustainable growth and productivity our country needs.”

Nick Jansa, Executive Managing Director EMEA, Ontario Teachers’ Pension Plan said: “We welcome the government’s announcement today on improvements to the planning system and removing barriers to investment in growing the UK’s critical infrastructure.”

Home Secretary launches new Border Security Command

Home Secretary Yvette Cooper has set out the first steps to establishing a new UK Border Security Command (BSC).

This BSC will strengthen Britain’s border security and smash the criminal smuggling gangs making millions out of small boat crossings.

Rapid recruitment for an exceptional leader used to working in complex and challenging environments, for example, at senior levels of policing, intelligence or the military, will kick off today (Monday 8 July), with the new recruit expected to take up their post in the coming weeks.

Reporting directly to the Home Secretary, the Border Security Commander will provide strategic direction to work across agencies, drawing together the work of the National Crime Agency (NCA), intelligence agencies, police, Immigration Enforcement and Border Force, to better protect our borders and go after the smuggling gangs facilitating small boat crossings.

Following the Home Secretary’s instruction, a core team in the Home Office is establishing the remit, governance and strategic direction of the new command. Early legislation is being prepared to introduce new counter terror style powers and stronger measures to tackle organised immigration crime.

She has also commissioned a bespoke investigation from the department and the NCA into the latest routes, methods and tactics used by people smuggling gangs across Europe to inform a major law enforcement drive over the coming months.

The BSC will draw on substantial additional resources, with work to bring in more investigators, experts and analysts to tackle organised immigration crime starting on Monday. A significant number of these will be based across Europe, working with Europol and European police forces to disrupt the activity of the criminal smuggling gangs and ensure those profiting from people smuggling are brought to justice.

In a call to the Director General of the NCA, Graeme Biggar, the Home Secretary stressed the need to break the business model of the criminal smuggling gangs, going after their ability to communicate, move people across Europe and their profit.

The Home Secretary will have further calls this week with European interior ministers and with the Director General of Europol to discuss strengthening security cooperation.

Home Secretary, Yvette Cooper, said: “Criminal smuggling gangs are making millions out of small boat crossings, undermining our border security and putting lives at risk. We can’t carry on like this. We need to tackle the root of the problem, going after these dangerous criminals and bringing them to justice.

“The Border Security Command will be a major step change in UK enforcement efforts to tackle organised immigration crime, drawing on substantial resource to work across Europe and beyond to disrupt trafficking networks and to coordinate with prosecutors in Europe to deliver justice.

“Work is underway to bring in a Border Security Commander to lead this work – and we will begin recruitment on additional capacity in the National Crime Agency immediately.”

First Minister welcomes Prime Minister to Bute House

Talks focus on collaborative working and areas of shared interest

First Minister John Swinney welcomed Sir Keir Starmer to Bute House yesterday for one of his first engagements after being appointed as the new UK Prime Minister.  

Following an introductory telephone call on Friday, the two leaders met in Edinburgh to emphasise their joint commitment to working collaboratively on areas of shared interest.

They discussed a range of issues and areas where both the governments can work together, including advancing the Scottish Government’s core priorities of eradicating child poverty, growing the economy, prioritising net zero, and ensuring the delivery of effective public services. 

Deputy First Minister Kate Forbes and the new Secretary of State for Scotland Ian Murray joined the First Minister and Prime Minister for talks.

First Minister John Swinney said: “I was pleased to welcome Sir Keir to Bute House so soon after his appointment as UK Prime Minister.

“We continued our conversation about areas of shared interest. I believe there is an opportunity for collaborative working that can make a difference to people’s lives and I hope to work with Sir Keir’s new Government to deliver progress for the benefit of people in Scotland.

“Following our talks, I am confident we have established the foundation for a productive relationship between our two governments based on renewed respect for the devolution settlement.

“On a personal note, having been First Minister for two months and a minister for many years, I am very aware of the demands of office. I again offered Sir Keir and his family my congratulations on his appointment and my best wishes for what will be a demanding start to his term in office.” 

The UK’s position on the Middle East will be one of the ongoing issues Keir Starmer will have to address and a vocal protest by pro-Palestinian campaigners gathered outside Bute House calling for an end to arms supplies to Israel and an end to the slaughter of innocent children and families in Gaza.

First Minister to meet new Prime Minister in Scotland today

First Minister John Swinney will welcome new Prime Minister Sir Keir Starmer to Scotland today.

Speaking ahead of the meeting, the First Minister said: “I was really pleased to have the opportunity to speak to the Prime Minister on his first day in office and to congratulate him and wish him, and his family well.

“I look forward to welcoming the Prime Minister to Scotland where I hope to have constructive discussions with him on our shared priorities for the people of Scotland. This includes eradicating child poverty, growing the economy, prioritising net zero, and ensuring effective public services. 

“I welcome the Prime Minister’s commitment to forge a positive relationship between our governments and for our part, the Scottish Government is committed to working constructively with the UK Government to build a better Scotland.”

WHATEVER your political allegiances. the relationship between the two governments is crucial to the people of Scotland. I’d like to think it will be more constructive than it has been in the recent past – Ed.

Chancellor Rachel Reeves delivers first address to HM Treasury staff

Chancellor of the Exchequer Rachel Reeves’ speech delivered to HM Treasury staff yesterday (Friday 5 July):

Thanks to all of you for being here. It is such an honour to be here today as the Chancellor of the Exchequer.

I know what a responsibility this brings – to guide our economy through uncertain times;

To restore stability in an age of insecurity;

To build prosperity that draws on the talents of working people.

The central mission of this new Government will be to restore economic growth.

During the election that was the Labour Party’s mission.

It is now our national mission.

And it will be for the Treasury to lead that mission.

Not growth for growth’s sake.

But growth for a purpose.

To make every part of our country better off.

To deliver on this mission, I want this to be the most pro-growth Treasury in our country’s history.

That will mean doing what the Treasury does best – building growth on a rock of economic stability.

But it also means taking on new challenges and new responsibilities.

To fix the foundations.

And to rebuild Britain;

To drive growth not just in a few pockets of our country but in every part of Britain.

To meet the challenges and seize the opportunities of the future – including our energy transition.

That is why this Treasury will play its full part in a new era of industrial strategy;

Working hand-in-glove with business, to make sure Britain is truly open to business once again.

And I know that in an uncertain world, if we can deliver the stability, investment and reform that the Prime Minister and I have set out, then Britain can reap the rewards.

But for families at home – I know that this is about more than just lines on a graph.

It is about tackling the causes of the cost of living crisis and making work pay.

Rebuilding our health service and our schools.

And driving opportunity in every part of Britain.

I will always hold in my minds eye the people across our country whose livelihoods, public services and aspirations will rise or fall based on the decisions we make here.

And I ask you to do the same – whether in Darlington, or Norwich, or in this building.

It is also a huge privilege to be the first ever female Chancellor of the Exchequer.

So every young woman and girl watching this:

Let today show that there should be no ceilings on your ambitions.

Your hopes,

or your dreams.

But there is a deeper responsibility too:

To women whose work is too often undervalued.

Who have borne the brunt of inequality.

And whose lives and interests are too often excluded from economic policymaking.

Together, we are going to change that.

Now, I have been a Member of Parliament for fourteen years now.

And if I’m honest, I’ve spent a lot of those years frustrated.

Talking, not doing.

Responding to constituents’ problems, but not being able to get to the root cause of those problems.

So as far as I’m concerned, there is no time to waste.

I will judge my time in office a success if I know that, at the end of it, there are working-class kids from ordinary backgrounds living richer lives, their horizons expanded, and their potential realised;

If we are leaving to the next generation a country that is more prosperous, with more good jobs paying decent wages, and a country better able to thrive in an uncertain world.

I know that a lot has been asked of you in the last few years – and I know, when the chips are down, staff at the Treasury have risen to the occasion, from furlough to energy price support.

I have often disagreed with the political choices that have been taken in this building.

But I have never been in any doubt about the talent, the dedication and the professionalism that Treasury staff have displayed.

I know too that at times it must have been frustrating for you, working under a weight of uncertainty, changes in direction, and without clarity of political purpose.

As Chancellor, I am determined to change that.

All our plans for government will rely on your hard work.

I’m under no illusion about the scale of the challenges we face.

The difficult choices that we will have to make.

I am not promising you that it will be easy.

There is a long road ahead.

It comes with a great weight of responsibility.

I embrace it.

It will demand hard work.

I am ready for it.

The British people have put their trust in this new government.

They have put their trust in us to run their economy.

And to protect their finances.

And that trust must not be squandered.

We’re a team.

It’s a new start.

So let’s get to work.

Thank you very much.

Funding commitments show UK as ‘force for global good’ at G7 Summit

SUNAK’S LAST STAND ON THE INTERNATIONAL STAGE?

The Prime Minister will make the case for a world economy that is more peaceful, stable, and prosperous and for bold reforms to global governance to make it more inclusive and responsive to citizens as he attends the second day of the G7 Leaders Summit in Italy today (Friday 14 June).

  • PM to call for peaceful, stable, prosperous world economy at G7. 
  • Millions of development funding to help tackle climate change in Africa. 
  • New programme to fund safe and responsible AI projects across the globe.

During a global outreach session focused on Artificial Intelligence and Energy, and Africa and the Mediterranean, he will argue that this means reforming the international financial system to unlock the finance we need to accelerate progress against the Sustainable Development Goals, strengthening the voices of the most vulnerable at the top table of international politics. 

He will outline the importance of supporting countries in delivering their own clean energy transitions, and in harnessing the opportunities presented by AI.

To support this he will announce multi-year ODA funding which could exceed £100m, including several high-impact African projects and a £20m expansion of the AI for Development programme into Asia – building on £38m the UK is already investing in Africa.

Prime Minister Rishi Sunak said: “The UK is committed to driving a more effective international system that improves lives for people across the globe and at home. 

“The green transition and the development of AI are key components of this, and the funding announced today will help ensure that these seismic changes happen in a way that works for all.”

The AI for Development programme, was launched at the Bletchley Park AI Safety Summit in November 2023 to fund safe and responsible AI projects for development around the world, beginning in Africa.  

The UK-Canada partnership, with support from the US, Australia, and other partners, will help ensure this ground-breaking technology is accessible to as many people as possible across the globe as well as deliver new AI labs to train the next generation of developers, policymakers and thought leaders, to drive responsible and inclusive AI policy. 

The funding outlined today includes £57m of ODA to the Climate Compatible Growth Programme, which will accelerate the roll-out of improved, climate resilient infrastructure in developing countries. It will provide even more countries across sub-Saharan Africa and Asia with the UK expertise needed to support improved, climate resilient infrastructure. 

The multi-year ODA funding will include up to £35 million into the Alliance for Green Infrastructure in Africa will catalyse greater investment into sustainable infrastructure projects across the continent. The finance will help to bridge Africa’s infrastructure deficit, by accelerating investment at scale into new green infrastructure.  

Partnering with the World Bank and the EU to support African regional electricity transmission and strengthen climate resilience, £15m will contribute to the Zambian side of the Zambia-Tanzania Interconnector as part of a $300m project that will link the Southern and East African Power Pools.

Leading with our development partners to invest in energy infrastructure in Zambia will aid the country to access clean energy. This is vital for poverty reduction and economic development.  

This investment, alongside a £300,000 contribution for mapping by the British Geological Survey in Angola, will be crucial in supporting the economic development along the length of the Lobito Corridor. 

The funding also includes £500,000 for an initiative to support planning, prioritisation and implementation of green infrastructure initiatives between the UK, the Government of Kenya and the wider G7.

Focusing on transport projects selected from the Africa Green Industrialisation Initiative (AGII), this innovative partnership will lead to closer cooperation with the Kenyan Government on strategic infrastructure and investment and is the first partnership between the G7’s Partnership for Global Infrastructure and Investment and AGII.

All very impressive – and lots of nice pictures for the family album – but is it enough to save the Tory government and Rishi Sunak’s job?

Forth Green Freeport open for business

The Forth Green Freeport (FGF) is officially “open for business” today, 12 June, following approval from the Scottish and UK Governments of its Outline Business Case.

This major step unlocks the investment incentives to deliver the green freeport vision.

Dame Susan Rice DBE, Chair of Forth Green Freeport, said: “This is it, Forth Green Freeport is officially open for business. It is an important time for the Green Freeport as we move through the business case development phase to delivery for Scotland.

“Through innovations in offshore wind manufacturing, assembly and commissioning, alongside innovative shipbuilding, modular assembly and hydrogen manufacture, the country’s net zero targets can be boosted by Forth Green Freeport.

“This is a long-term project and one which we know will deliver real benefits to the local communities through economic growth, skills re-training and training and access to high quality, green jobs.”

Responding to the news, Council Leader Cammy Day said: “The Forth Green Freeport is go – making North Edinburgh and the region open for significant investment and good, green, economic growth.

“The whole coastline has huge potential as we develop our city and address the climate emergency and, clearly, the Scottish and UK Governments agree. The news just this week of a global leader in sustainable energy potentially looking to invest in the Port of Leith is also testament to the opportunities Edinburgh has to offer.

“Our extension of Edinburgh’s tram line to Newhaven is already unlocking many areas in the North of the city for long-term investment and regeneration plus, our £1.3 billion green vision for Granton Waterfront is creating a brand new sustainable coastal community, with thousands of net zero homes.

“Through the Edinburgh and South East Scotland City Region Deal we’ve already achieved massive success working collaboratively with our neighbouring councils, with central government and with the private sector. I’m looking forward to similar success with all the partners on the Forth Green Freeport.

“I’ve said all along that fair work and fair opportunities – with employers paying the real Living Wage and real benefits to the community – should be central to the Green Freeport’s plans.

“Following positive conversations with our partners, I’m pleased this is now confirmed with a Fair Work Charter right at the heart of everyone’s ambitions.

“Around 11,000 direct jobs are expected to be created as a result of the Forth Green Freeport, and we expect around 4,000 of those to be here in Edinburgh, which is major. This is of course long-term but we have the opportunity to not only boost employment opportunities but the skills we need in green industries as we address the climate challenge and work towards net zero as a city and country.”

UK shows ‘enduring commitment’ to Ukraine at G7 summit

UK WILL ‘LEAD FROM THE FRONT’ AT G7 SUMMIT

The Prime Minister will be clear that the UK will lead from the front on supporting international peace and security as he attends the G7 Leaders Summit in Italy against a backdrop of heightened volatility.

  • Support for Ukraine and securing peace in the Middle East priorities at G7 Leaders Summit.  
  • UK provides package of up to £242m funding for immediate humanitarian, energy and stabilisation needs in Ukraine.   
  • Leaders seek to leverage billions from immobilised Russian assets to support Ukraine.   

At the Summit, the Prime Minister will announce up to £242 million in bilateral assistance to Ukraine, to support immediate humanitarian, energy and stabilisation needs, and lay the foundations for longer term economic and social recovery and reconstruction.  

This funding demonstrates the UK’s continued international solidarity with Ukraine, and our flexibility in responding to immediate needs created by Russian aggression. Critical energy infrastructure, for example, has suffered from an intense Russian missile and bombing campaign over the past few months.  

A priority for the PM at the Summit will be to work with partners to agree a way to use immobilised Russian assets to support Ukraine. Last month, the Chancellor attended the G7 Finance Ministers and Central Bank Governors meeting, where the G7 discussed potential avenues to bring forward the extraordinary profits stemming from these assets, to the benefit of Ukraine.     

The UK and G7 leaders have been clear that Russian must pay for the damage it is causing Ukraine. We will explore all lawful avenues by which immobilised Russian assets can be used to support Ukraine. The value of the assets held in G7 jurisdictions is $285 billion. 

The UK was the first country to introduce legislation explicitly enabling us to keep sanctions in place until Russia pays for damage it has caused. We also introduced new powers to compel sanctioned individuals and entities to disclose assets they hold in the UK. 

Prime Minister Rishi Sunak said:  “We must be decisive and creative in our efforts to support Ukraine and end Putin’s illegal war at this critical moment. The UK remains at the forefront of the international response as we have been from the outset. We must move from ‘as long as it takes’ to ‘whatever it takes’ if we are to end this illegal war. 

“From Ukraine to the Middle East, we will be discussing significant global threats at the Summit. Such threats are why it is so vital to strengthen the UK’s national defence, through our commitment to spend 2.5% of GDP on defence by 2030.”

The UK has now committed almost £12.7 billion in military, humanitarian and economic support to Ukraine and has often been the first mover on vital lethal aid, from Storm Shadow cruise missiles to a squadron of Challenger 2 tanks.

The Prime Minister recently announced that the UK will send our largest-ever package of military equipment from the UK, designed to help push back the Russian invasion on land, sea and air. 

While at the summit, he will attend sessions on Ukraine; Illegal Migration; Economic Security and China; The Middle East; and a credible G7 and UK offer to ‘the global majority’.   

The Prime Minister will work to encourage G7 unity in response to the situation on the ground in Gaza, focused on the long-term goal of a stable and prosperous Middle East.   

He will press other leaders to recognise migration challenges ‘across the route’ and to take collective action.  

He will also seek to strengthen our economic security in relation to China and work collaboratively with partners to identify ways to ensure we leverage the revolution in green technologies for the benefit of the British people and our industries.