Spending review now settled, says Downing Street
The government's latest spending plans are settled, the prime minister's official spokesman has said.
Chancellor Rachel Reeves is expected to expected to announce funding increases for the NHS, schools and defence, along with a number of infrastructure projects, when she sets out her day-to-say spending and investment plans for each department in Wednesday's Spending Review.
Home Secretary Yvette Cooper was the last to fix a deal on Monday afternoon, following public warnings from police chiefs, calling for more money.
Housing Secretary Angela Rayner reached a deal with Reeves and the Treasury on Sunday evening.
Reeves has loosened Treasury borrowing rules to free up about £113bn for investment in infrastructure projects, but will need to squeeze budgets elsewhere in order meet her own rules, which include not borrowing to fund day-to-day spending.
Last week, she admitted that she had been forced to turn down requests for funding for projects she would have wanted to back.
Ministers seeking to protect their budgets remained locked in budget talks over the weekend.
Announcing ministerial negotiations over the government's spending review had been completed, the prime minister's official spokesman said the chancellor would be investing in public services and growth.
"The spending review is settled - we will be focused on investing in Britain's renewal so that all working people are better off," he said.
"The first job of the government was to stabilise the British economy and the public finances, and now we move into a new chapter to deliver the promise and change."
The Home Office had argued privately that police numbers must be maintained for the government to deliver its policy commitments on neighbourhood policing, but that under the spending proposals this would not be possible.
Police chiefs including Sir Mark Rowley, the commissioner of the Metropolitan Police, had publicly lobbyied the government for more money in recent weeks, and there were suggestions the Treasury might have "imposed" a settlement on the Home Office.
Over the weekend, Technology Secretary Peter Kyle told the BBC's Sunday with Laura Kuenssberg the chancellor was facing pressure from all departments for additional funding.
Kyle said "every part of society was struggling" and declined to rule out a squeeze on policing.
The last-minute talks with Cooper come ahead of what is set to be a highly significant week for every part of government.
Reeves has already U-turned on removing Winter Fuel payments from all but the poorest pensioners, and will now give these 75% of pensioners, which will cost an estimated £1.25bn.
The government has also pledged to hike defence spending, invest £86bn in science and technology, and give free school meals to half a million more children.
To balance the spending, Reeves has announced a £14bn package of savings in March, including £4.8bn of welfare cuts.
However, opponents have accused the government of having the wrong priorities.
Conservative shadow home secretary Chris Philp said: "They have chosen to prioritise spending on Ed Miliband's mad green projects, on inflation-busting pay rises for their trade union paymasters and spending £100bn a year – five times the police budget – on debt interest payments."
Liberal Democrat leader Sir Ed Davey has urged the chancellor to rule out cuts to social care, which is financed through local councils.
He said the government would have "more money in the pot, more growth, more revenue" if it pursued closer trading ties with Europe.
Home secretary yet to agree deal days before spending review
Spending Review: Massive cheques from the chancellor for some - but what do totals hide?
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Yahoo
2 hours ago
- Yahoo
World leaders call for deescalation after US bombs Iran
World capitals reacted to the surprise US attack on Iranian nuclear sites with a mix of calls for restraint and statements of condemnation. Trump had indicated on Friday he would make a decision in the next two weeks as to whether the US would bomb Iran in support of Israel, but the suddenness of the weekend strikes suggested that deadline was a red herring, with The Atlantic reporting that the president had already made up his mind last week. As the impact of the strikes was still being assessed Sunday, European and Gulf leaders appeared united in calls for diplomacy and restraint, while Iran's longtime allies, China and Russia, criticized the aerial assault as a gross escalation that could lead to further war. British Prime Minister Keir Starmer, whose foreign minister met with Iran's top diplomat last week as part of European efforts to avert the strikes, in a post on X urged Iran 'to return to the negotiating table and reach a diplomatic solution to end this crisis.' The plea for diplomacy was echoed by French President Emmanuel Macron, who in his own social media post Sunday called for restraint from Tehran and a return to 'dialogue,' as well as a commitment by Iran to renounce nuclear weapons. German Chancellor Friedrich Merz called on Iran to 'immediately begin negotiations with the US and Israel' to find a diplomatic resolution. The German government believes 'significant parts' of Tehran's nuclear program were impacted in the strikes, but a precise assessment was not immediately possible. The European Union also echoed bloc leaders' calls for restraint, with the EU's top diplomat Kaja Kallas writing on social media that she urged 'all sides to step back, return to the negotiating table and prevent further escalation.' European Council President Antonio Costa said the bloc would work with allies to find a 'peaceful solution' to the conflict, and stressed the human toll of further possible attacks: 'Too many civilians will once again be the victims of a further escalation,' he said. United Nations chief António Guterres said in a statement that he was 'gravely alarmed by the use of force by the United States against Iran,' adding that the strikes represented a 'dangerous escalation' for the region. 'There is no military solution. The only path forward is diplomacy. The only hope is peace,' Guterres said, calling on UN members to deescalate the conflict. The UN's nuclear watchdog, the International Atomic Energy Agency, said Sunday that it found no increase in off-site radiation levels after the strikes on the nuclear facilities, and that it would continue to monitor the situation. The UN Security Council was expected to meet later on Sunday to discuss the situation. China's foreign ministry said Sunday that Beijing 'strongly condemns' the US strikes on Iranian nuclear sites, accusing Washington of violating international law and escalating regional tensions. 'China calls on all parties to the conflict, especially Israel, to cease fire as soon as possible,' the ministry said in a statement, adding that Beijing was 'willing to work with the international community to uphold justice and restore peace and stability in the Middle East.' Russia's Foreign Ministry said Moscow 'strongly condemned' the strikes, echoing China's accusation that they represented 'a gross violation of international law, the U.N. Charter, and U.N. Security Council resolutions.' Senior Kremlin official and former president Dmitry Medvedev went further, suggesting Trump's decision to strike Iran had 'started a new war for the U.S.,' and that the Iranian regime would likely be strengthened by Washington's involvement. In a post on X, Medvedev, who is the deputy chair of Russian President Vladimir Putin's Security Council, indicated that a 'number of countries' could also decide to supply Tehran with nuclear weapons following the US strikes. Israeli Prime Minister Benjamin Netanyahu praised the US strikes, saying they were carried out 'in full coordination' with Israel. He said US President Donald Trump's leadership 'created a pivot of history that can help lead the Middle East and beyond to a future of prosperity and peace.' Netanyahu's main political opponents also praised the operation: Opposition party leader Yair Lapid dismissed critics of the strikes as 'useful idiots.' Saudi Arabia — a longtime rival of Iran's which has in recent months seen slightly improved ties with Tehran — voiced 'deep concern' over the targeting of the Iranian nuclear sites, and reiterated prior remarks which 'condemned and denounced the violation of the sovereignty' of Iran. It urged restraint and de-escalation. Qatar — the globe's third largest exporter of LNG — regretted the 'deterioration of the situation' in its 'sisterly' nation of Iran and called for an immediate cease in hostilities. However, a statement from its foreign ministry notably did not mention who conducted the attacks. Abu Dhabi said the strikes threatened to pull the region 'into deeper levels of instability' and stressed the need for immediate de-escalation. The foreign ministry called on members of the United Nations' Security Council to 'uphold their responsibilities' in response to the hostilities. Oman, which sits across the Strait of Hormuz from Iran and has hosted talks between Washington and Tehran over Iran's nuclear program, said it 'deplores' the US strikes, which it characterized as an 'illegal aggression,' adding that the attack contravened international agreements allowing Iran to develop a 'peaceful' nuclear program. The Kingdom of Bahrain called for negotiations to restart between the US and Iran, adding that a diplomatic approach 'is essential to restoring regional peace and security and to protecting the peoples of the region from the consequences of war,' according to the state news agency. The country, which is home to a US military base, urged civilian drivers to avoid main roads Sunday as a precaution: Tehran has previously indicated it would consider attacking regional US military bases if Washington decided to strike the country.
The Hill
4 hours ago
- The Hill
Nations react to US strikes on Iran with many calling for diplomacy
Several close U.S. allies urged a return to the negotiating table following American strikes on Iran that fueled fears of a wider conflict, while noting the threat posed by Tehran's nuclear program. Some countries and groups in the region, including those that support Iran, condemned the move while also urging de-escalation. U.S. President Donald Trump described the damage as 'monumental' after the U.S. hit three Iranian nuclear sites, though the U.S. assessment was unfinished. Iranian Foreign Minister Abbas Araghchi said the U.S. had 'crossed a very big red line,' the time for diplomacy was over and Iran had the right to defend itself. Here is a look at the global reaction: U.N. Secretary-General António Guterres said he was 'gravely alarmed' by the use of force by the United States. 'There is a growing risk that this conflict could rapidly get out of control — with catastrophic consequences for civilians, the region, and the world,' he said in a statement on the social media platform X. 'I call on Member States to de-escalate.' 'There is no military solution. The only path forward is diplomacy.' British Prime Minister Keir Starmer warned of escalation beyond the Middle East as he called for all sides to negotiate a diplomatic end to the crisis, saying stability was the priority in the volatile region. The U.K., along with the European Union, France and Germany, tried unsuccessfully to broker a diplomatic solution in Geneva last week with Iran. Starmer said Iran's nuclear program posed a grave threat to global security. 'Iran can never be allowed to develop a nuclear weapon and the U.S. has taken action to alleviate that threat,' Starmer said. Dmitry Medvedev, who serves as deputy head of President Vladimir Putin's Security Council, said several countries were prepared to supply Tehran with nuclear weapons. He didn't specify which countries, but said the U.S. attack caused minimal damage and would not stop Tehran from pursuing nuclear weapons. Russia's Foreign Ministry said it 'strongly condemned' the airstrikes and called them a 'a gross violation of international law, the U.N. Charter, and U.N. Security Council resolutions.' The Iraqi government condemned the U.S. strikes, saying the military escalation created a grave threat to peace and security in the Middle East. It said it poses serious risks to regional stability and called for diplomatic efforts to de-escalate the crisis. 'The continuation of such attacks risks dangerous escalation with consequences that extend beyond the borders of any single state, threatening the security of the entire region and the world,' government spokesman Bassem al-Awadi said in the statement. President Abdel Fattah el-Sissi warned of 'grave repercussions' for expanding the Middle East conflict and urged a return to negotiations. Saudi Arabia, which previously condemned Israel's strikes on Iran's nuclear facilities and military leaders, expressed 'deep concern' about the U.S. airstrikes, but stopped short of condemning them. 'The Kingdom underscores the need to exert all possible efforts to exercise restraint, de-escalate tensions, and avoid further escalation,' the Foreign Ministry said in a statement. Qatar, which is home to the largest U.S. military base in the Middle East, said it 'regrets' escalating tensions in the Israel-Iran war. Its Foreign Ministry in a statement urged all parties to show restraint and 'avoid escalation, which the peoples of the region, burdened by conflicts and their tragic humanitarian repercussions, cannot tolerate.' Qatar has served as a key mediator in the Israel-Hamas war. Both the Houthi rebels in Yemen and Hamas condemned the U.S. strikes. The Houthi political bureau in a statement called on Muslim nations to join 'the Jihad and resistance option as one front against the Zionist-American arrogance.' Hamas and the Houthis are part of Iran's so-called Axis of Resistance, a collection of pro-Iranian proxies stretching from Yemen to Lebanon that for years gave the Islamic Republic considerable power across the region. Lebanese President Joseph Aoun said the U.S. bombing could lead to a regional conflict that no country could bear and called for negotiations. 'Lebanon, its leadership, parties, and people, are aware today, more than ever before, that it has paid a heavy price for the wars that erupted on its land and in the region,' Aoun said in a statement on X. 'It is unwilling to pay more.' Pakistan blasted the U.S. strikes as a 'deeply disturbing' escalation just days after it nominated Trump for the Nobel Peace Prize for his diplomatic intervention with the India-Pakistan crisis. 'These attacks violate all norms of international law,' the government said in a statement. 'Iran has the legitimate right to defend itself under the U.N. Charter.' China condemned U.S. strikes on Iran, calling them a serious violation of international law that further inflamed tensions in the Middle East. In a statement, the Chinese Foreign Ministry urged all parties — especially Israel — to implement a cease-fire and begin dialogue. 'China is willing to work with the international community to pool efforts together and uphold justice, and contribute to the work for restoring peace and stability in the Middle East,' the ministry said. The European Union's top diplomat said Iran must not be allowed to develop a nuclear weapon, but she urged those involved in the conflict to show restraint. 'I urge all sides to step back, return to the negotiating table and prevent further escalation,' EU foreign policy chief Kaja Kallas said in a post on social media. Foreign Minister Antonio Tajani said Iran's nuclear facilities 'represented a danger for the entire area' but hoped the action could lead to de-escalation in the conflict and negotiations. Deputy Prime Minister Simon Harris called the U.S. airstrikes 'an extraordinarily dangerous escalation of a conflict that already best be described as a tinderbox.' Ireland, which has been especially critical of Israel's war in Gaza, echoed other European calls for negotiations that would prevent Iran from getting a nuclear weapon. 'We're now entering a moment of particular danger,' Harris said. 'The chances now of a spiral of escalation are more likely than ever before, and there is a real prospect now of the international community losing all control of this very, very volatile conflict.' Foreign Minister Penny Wong said Australia's government endorsed the U.S. strikes. 'We support action to prevent Iran getting a nuclear weapon and that is what this is,' she said. Her remarks to Channel Nine news Monday were firmer than an official statement supplied Sunday by her government immediately after the strikes that stopped short of backing them. 'Ultimately we want to see de-escalation and diplomacy,' Wong said. She would not say whether Australian satellite communications or signals intelligence were employed by the United States. Both countries are members of the Five Eyes intelligence sharing partnership. But Wong said the U.S. had been clear that 'this was a unilateral strike.' Left-wing Latin American governments expressed fierce opposition to the U.S. strikes. Iran-allied Venezuela called the attacks 'illegal, unjustifiable and extremely dangerous.' Colombian President Gustavo Petro said they were an insult to the Middle East. Chile's President Gabriel Boric said they violated 'rules we have established as humanity.' Mexico's Foreign Ministry made 'an urgent call for peace.' In contrast, Argentina's libertarian President Javier Milei, a loyal ally of Trump and Israeli Prime Minister Benjamin Netanyahu, praised the attacks on social media. 'Terrorism, never again,' his spokesperson said. Japanese Prime Minister Shigeru Ishiba told reporters it was crucial to calm the situation as soon as possible, adding that Iranian nuclear weapons development also must be prevented. He declined to comment on whether he supported the U.S. attacks on Iran. Vietnam called on parties to continue negotiation efforts and respect humanitarian law and International Atomic Energy Agency regulations. 'Vietnam is deeply concerned about the escalating and complex conflict in the Middle East, which poses a serious threat to the lives and safety of civilians, as well as to regional and global peace and stability,' Foreign Affairs Ministry spokeswoman Pham Thu Hang said in the statement. Thailand called on all parties to immediately stop all acts of violence and seek a peaceful resolution. 'Thailand expresses its grave concern over the escalating tensions between Israel and Iran, particularly in light of the recently intensified attacks and expansion of conflict by other parties, which pose a serious threat to regional peace and stability and risk further escalation, all of which is dangerous and affecting countless civilians,' the Foreign Affairs Ministry said in a statement. Pope Leo XIV made a strong appeal for peace during his Sunday Angelus prayer in St. Peter's square, calling for international diplomacy to 'silence the weapons.' After an open reference to the 'alarming' situation in Iran, the first American pontiff stressed that 'today more than ever, humanity cries out and invokes peace and it is a cry that demands reason and must not be stifled.' Pope Leo urged every member of the international community to take up their moral responsibility to 'stop the tragedy of war before it becomes an irreparable abyss.'
Los Angeles Times
5 hours ago
- Los Angeles Times
Oil rises as U.S. stock futures, Asian shares slip after American strike on Iran
NEW YORK — The price of oil rose and U.S. stock futures fell as global markets reacted to the American bombing of nuclear targets in Iran. The price of Brent crude oil, the international standard, rose 2.6% to $79 a barrel. U.S. crude rose 2.6% to $75.76 a barrel. U.S. forces attacked three Iranian nuclear sites early Sunday, further increasing the stakes in the war between Israel and Iran. Futures for the S&P 500 and the Dow Jones industrial average slipped 0.4%, while Nasdaq futures fell 0.5%. Treasury yields were little changed. The modest moves indicate markets are taking the latest development in stride. That was evident in early trading in Asia. Tokyo's Nikkei 225 index fell 0.6%. Other major regional markets also logged moderate declines. The conflict, which began with an Israeli attack against Iran on June 13, has sent oil prices yo-yo-ing, which has in turn caused seesaw moves for the U.S. stock market because of rising and ebbing fears that the war could disrupt the global flow of crude. Iran is a major producer of oil and sits on the narrow Strait of Hormuz, through which much of the world's crude passes. 'The situation remains highly fluid, and much hinges on whether Tehran opts for a restrained reaction or a more aggressive course of action,' Kristian Kerr, head of macro strategy at LPL Financial in Charlotte, N.C., said in a commentary. An Iran retaliation that includes closing off the waterway would be technically difficult to pull off, but traders are afraid Iran could severely disrupt transit through it, sending insurance rates soaring and making shippers nervous to move without U.S. Navy escorts. Some analysts think Iran is unlikely to close down the waterway because the country uses it to transport its own crude, mostly to China, and oil is a major revenue source for the government. 'It's a scorched-earth possibility, a Sherman-burning-Atlanta move,' said Tom Kloza, chief market analyst at Turner Mason & Co. 'It's not probable.' Kloza thinks oil futures will ease back down after initial fears blow over. Ed Yardeni, a longtime analyst, agreed, writing in a report that Tehran leaders would probably hold back. 'They aren't crazy,' he wrote in a note to investors Sunday. 'The price of oil should fall and stock markets around the world should climb higher.' Other experts aren't so sure. Andy Lipow, a Houston analyst who has covered oil markets for 45 years, said that countries are not always rational actors and that he wouldn't be surprised if Tehran lashed out for political or emotional reasons. 'If the Strait of Hormuz was completely shut down, oil prices would rise to $120 to $130 a barrel,' said Lipow, predicting that that would translate to about $4.50 a gallon at the pump in the U.S. and hurt consumers in other ways. 'It would mean higher prices for all those goods transported by truck, and it would be more difficult for the Fed to lower interest rates,' he said. In trading early Monday in Asia, Taiwan's Taiex fell 1.5% while the Kospi in South Korea lost 1%. Both Taiwan and South Korea rely heavily on oil imported through the Strait of Hormuz. Australia's S&P/ASX fell 0.7%, and the benchmark in New Zealand lost 0.5%.
