Trade minister Douglas Alexander says Labour’s welfare bill rebels ‘trying to do their job well’ as No 10 considers concessions
Good morning. Irresistible force meets immovable object and … it turns out that the object is movable after all. Until yesterday afternoon, in public at least, ministers were insisting that they were fully committed to the welfare cuts in the universal credit (UC) and personal independence payment (Pip) bill – even though it has no chance of passing in its current form because so many Labour MPs have signed a reasoned amendment to kill it.
But last night it emerged that ministers are now looking at major concessions in a bid to get it through. Jessica Elgot, Kiran Stacey, Aletha Adu and Pippa Crerar have the details here.
This is how their story starts.
Number 10 is preparing to offer concessions to Labour MPs amid a major rebellion over the government’s planned welfare cuts.
Downing Street is understood to be considering watering down changes to the eligibility for disability benefits which had been significantly tightened by the reforms in the bill.More than 120 MPs are poised to rebel against the government next Tuesday and there remains division at the top of government over how to stem the growing anger.
Concessions under consideration include changes to the points needed for eligibility for personal independence payments (Pip), a benefit paid to those both in and out of work.
MPs also want to see changes made to other reforms affecting the health top-up for universal credit which applies to those who cannot work.
Archie Bland has more on this in his First Edition briefing.
Bland says: “Up until now, Downing Street appears to have been divided on the right way forward, with one source saying: ‘There is a camp for pulling it, a camp for concession and a small but insane camp for ploughing on.’ Reeves is understood to be particularly opposed to pulling the vote.”
This morning Douglas Alexander, the trade minister, has been on the interview round. While he did not announce any concessions, his tone could not have been more different from ministers, including Keir Starmer, speaking on this topic over the past few days. He was complimentary about the rebels, describing them as acting in good faith and implying their concerns were reasonable. And he said the government was listening.
He told Sky News:
The first thing that strikes you when you read the reasoned amendment [to block the bill, now signed by 126 Labour MPs] is the degree of commonality on the principles. Everyone agrees welfare needs reform and that the system was broken. Everyone recognises you’re trying to take people off benefit and into work, because that’s better for them and also better for our fiscal position. And everyone recognises that we need to protect the most vulnerable.
Where there is, honestly, some disagreement at the moment, is on the issue of ‘how do you give implementation to those principles?’ … The effect of what’s happened with this reasoned amendment being tabled is that that’s brought forward the discussion of how to give implementation to those principles.
So given the high level of agreement on the principles, the discussions over the coming days will really be about the implementation of those principles.
Alexander also said the rebels were, in effect, only doing their jobs as Labour MPs.
It’s right to recognise these issues touch very deeply the Labour party’s sense of itself and the rights and responsibilities of members of parliament.
What I see is everyone trying to do their job well, ministers trying to be open with parliament as to the ambitions that we have, members of parliament being clear as to their responsibility to scrutinise this legislation and get it right.
And that’s the character of the conversation that’s taking place between ministers and members of parliament in the hours and days ahead.
Here is the agenda for the day.
9.15am: Keir Starmer gives a speech at the British Chambers of Commerce Global annual conference in London. Graeme Wearden is covering the BCC conference on his business live blog.
But I will be monitoring the political speeches here too.
9.30am: The Ministry of Justice publishes quarterly criminal court statistics.
After 10.30am: Lucy Powell, leader of the Commons, takes questions from MPs on next week’s business.
After 11.30am: Starmer is expected to make a statement to MPs about the G7 and Nato summits.
11.30am: Downing Street holds a lobby briefing.
3.25pm: Kemi Badenoch speaks at the BCC conference.
If you want to contact me, please post a message below the line when comments are open (normally between 10am and 3pm at the moment), or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.
If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X, but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
Key events
Government won’t be using threats to win round rebels on welfare bill, Alexander says
Douglas Alexander, the trade minister, told Times Radio this morning that the government would not be using threats to get rebel MPs to support it on the welfare bills.
There have been reports saying some backbenchers were being told that, if they did not vote for the bill, they would never be considered for promotion to minister. Last year seven backbenchers faced an ever more severe punishment, suspension from the parliamentary party, for defying the whip in a parliamentary vote, although the size of the likely rebellion on the welfare bill has not made this a plausible strategy this time for No 10.
Alexander said:
I expect that there’ll be conversations with colleagues in the course of the coming day as to exactly how to make sure that this legislation progresses. …
I don’t think anyone has ever in human history been insulted into agreement. The fact is that our conversations that need to happen. I’m not coming on to your programme to threaten people or cajole people.
UK’s largest bioethanol plant says it may have to close due to US-UK trade deal removing tariffs on imports
The UK’s largest bioethanol plant says it will stop production by mid-September unless the government acts, following the recent trade deal with the United States, PA Media reports. PA says:
Hull-based Vivergo Fuels said that, given “the strategic importance of a domestic ethanol supply”, the government has committed to formal negotiations to reach a “sustainable solution”.
But the firm, which is owned by Associated British Foods (ABF), said today that it is simultaneously beginning consultation with staff to wind down the plant, which employs more than 160 people, due to the uncertain situation.
The government described the company’s announcement as “disappointing”, coming as it had entered into negotiations with Vivergo about financial support on Wednesday …
Last month, Vivergo wrote to the wheat farmers who supply it, telling them it will have to close unless there is quick government intervention.
It said the removal of a 19% tariff on US ethanol imports, which formed part of the recent UK-US trade deal, was the “final blow”.
Starmer says government ‘shouldn’t try to run businesses’ as he explains his vision of partnership
In his final answer Starmer explained how he thought government and business should work together.
A true partnership is not two people or two bodies trying to do the same thing. It’s two people or bodies realising they bring different things to the table.
Government shouldn’t try to run businesses. It’s done that in the past and it doesn’t work particularly well.
So business should run business. Government should partner business by creating the conditions which makes it easier for businesses to run their businesses.
In response to a question about devolution, Starmer says Labour was originally “a bit wary” about metro mayors. But now he thinks they work really well.
Starmer insists he does undertand concerns businesses have about employment rights bill
Q: Do you get the concerns of business about the employment rights bill [which will increase costs for firms because it imposes high standards, particularly in relation to people doing casual work]?
Starmer says he does understand their concerns. They don’t hold back when they speak to him.
But he says a secure workforce is good for business. And he says many good businesses are already doing the things mandated in the bill.
Starmer says tariffs now likely to be feature of global trade for some time to come
At the BCC conference Keir Starmer has finished his speech. He is now taking questions. Clive Myrie, the broadcaster, is chairing the session and he starts by. asking about Iran.
Q: How worried should we be about what is happening in Iran?
Starmer says people should be concerned. But he says happily there is a ceasefire now.
I think I’m right in saying that the impact of international affairs on us domestically has never been so direct as it is at the moment.
He cites the Ukraine war, and its impact on oil prices, as an example.
He says the world has become more unstable.
And it is not just defence, he says. On trade, the situation has changed too, he says. He says the era of tariffs, introduced by President Trump, won’t end soon.
Whatever we think of tariffs, they are undoubtedly an attempt to change the way the world economy is run, and we have to recognise that.
I don’t think we’re going to be going back in a few weeks or months to how it was before this administration [President Trump’s in the US] came in. We’re in for a different future. We need to think through what that means.
The Commons authorities have confirmed that Keir Starmer will make a statement to MPs about the G7 and Nato summits at about 11.30am.
Starmer says government launching trade strategy
Starmer says the government is today launching its trade strategy.
Here is our overnight story about it, by Kiran Stacey and Jasper Jolly.
Here is the Department for Business and Trade’s news release about the strategy. And this is how DBT sums it up.
The strategy will make the UK the most connected nation in the world and secure billions worth of opportunities for businesses, helping deliver the economic growth needed to put money in people’s pockets, strengthen local economies, create jobs, and raise living standards.
It takes a more agile and targeted approach than the previous government’s, focusing on quicker, more practical deals that deliver faster benefits to UK businesses. It strengthens trade defences, expands export finance – especially for smaller firms – and aligns trade policy with national priorities like green growth and services. It’s a smarter, more responsive plan for a changing global economy.
UPDATE: Starmer said:
What we want to do is push not just for traditional trade agreements, but also for smaller deals that we can make quicker, at pace – whether that’s a digital trade agreement with Brazil, Thailand or Kenya; clean energy co-operation with the Philippines and Mexico, professional qualification recognition all around the world.
But perhaps most importantly, in this uncertain and challenging world, we will also give ourselves new powers on trade defence. To make sure that if your businesses are threatened by practices like dumping, that we have the right powers to defend you.
Starmer urges business to talk up opportunities, saying it’s time to stop doing ‘that British understatement thing’
Starmer says the government has stablised the economy, and is now moving to a new phase, where it is focusing on investment.
He says he wants Britain to be the best place in the world for enterprise. He goes on:
I do believe we’ve got to stop doing that British understatement thing – we do it all the time, including me – because, believe you me, this is a great moment to get on the phone to the world and say, ‘Take another look at Britain.’
He recalls talking recently to the boss of Nvidia, who told him that Britain was in a “Goldilocks” position on AI.
Starmer starts by praising the contribution to the country made by business.
None of the investment made by the government would be possible “without your contribution”, he says. “And I say thank you.”
Starmer does not spell it out directly, but he seems to be referring, at least in part, to the fact that business are now paying a lot more to the government in tax as a result in the rise in employer national insurance.
Keir Starmer speaks at BCC conference
Keir Starmer is now speaking at the British Chambers of Commerce conference.
There is a live feed at the top of the blog.
Trade minister Douglas Alexander says Labour’s welfare bill rebels ‘trying to do their job well’ as No 10 considers concessions
Good morning. Irresistible force meets immovable object and … it turns out that the object is movable after all. Until yesterday afternoon, in public at least, ministers were insisting that they were fully committed to the welfare cuts in the universal credit (UC) and personal independence payment (Pip) bill – even though it has no chance of passing in its current form because so many Labour MPs have signed a reasoned amendment to kill it.
But last night it emerged that ministers are now looking at major concessions in a bid to get it through. Jessica Elgot, Kiran Stacey, Aletha Adu and Pippa Crerar have the details here.
This is how their story starts.
Number 10 is preparing to offer concessions to Labour MPs amid a major rebellion over the government’s planned welfare cuts.
Downing Street is understood to be considering watering down changes to the eligibility for disability benefits which had been significantly tightened by the reforms in the bill.More than 120 MPs are poised to rebel against the government next Tuesday and there remains division at the top of government over how to stem the growing anger.
Concessions under consideration include changes to the points needed for eligibility for personal independence payments (Pip), a benefit paid to those both in and out of work.
MPs also want to see changes made to other reforms affecting the health top-up for universal credit which applies to those who cannot work.
Archie Bland has more on this in his First Edition briefing.
Bland says: “Up until now, Downing Street appears to have been divided on the right way forward, with one source saying: ‘There is a camp for pulling it, a camp for concession and a small but insane camp for ploughing on.’ Reeves is understood to be particularly opposed to pulling the vote.”
This morning Douglas Alexander, the trade minister, has been on the interview round. While he did not announce any concessions, his tone could not have been more different from ministers, including Keir Starmer, speaking on this topic over the past few days. He was complimentary about the rebels, describing them as acting in good faith and implying their concerns were reasonable. And he said the government was listening.
He told Sky News:
The first thing that strikes you when you read the reasoned amendment [to block the bill, now signed by 126 Labour MPs] is the degree of commonality on the principles. Everyone agrees welfare needs reform and that the system was broken. Everyone recognises you’re trying to take people off benefit and into work, because that’s better for them and also better for our fiscal position. And everyone recognises that we need to protect the most vulnerable.
Where there is, honestly, some disagreement at the moment, is on the issue of ‘how do you give implementation to those principles?’ … The effect of what’s happened with this reasoned amendment being tabled is that that’s brought forward the discussion of how to give implementation to those principles.
So given the high level of agreement on the principles, the discussions over the coming days will really be about the implementation of those principles.
Alexander also said the rebels were, in effect, only doing their jobs as Labour MPs.
It’s right to recognise these issues touch very deeply the Labour party’s sense of itself and the rights and responsibilities of members of parliament.
What I see is everyone trying to do their job well, ministers trying to be open with parliament as to the ambitions that we have, members of parliament being clear as to their responsibility to scrutinise this legislation and get it right.
And that’s the character of the conversation that’s taking place between ministers and members of parliament in the hours and days ahead.
Here is the agenda for the day.
9.15am: Keir Starmer gives a speech at the British Chambers of Commerce Global annual conference in London. Graeme Wearden is covering the BCC conference on his business live blog.
But I will be monitoring the political speeches here too.
9.30am: The Ministry of Justice publishes quarterly criminal court statistics.
After 10.30am: Lucy Powell, leader of the Commons, takes questions from MPs on next week’s business.
After 11.30am: Starmer is expected to make a statement to MPs about the G7 and Nato summits.
11.30am: Downing Street holds a lobby briefing.
3.25pm: Kemi Badenoch speaks at the BCC conference.
If you want to contact me, please post a message below the line when comments are open (normally between 10am and 3pm at the moment), or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.
If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X, but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
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