UK politics live: Keir Starmer defends Chagos Islands return as Argentina demands Falklands back
Keir Starmer says under the Chagos Islands deal the US-UK Diego Garcia base is secure
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A row has erupted after Sir Keir Starmer’s government announced the handover in exchange for a 99-year lease on a key military base.
Argentina seized on the decision, vowing to secure “full sovereignty” over the Falklands, with foreign minister Diana Mondino hailing the Chagos deal a victory and promising to take “concrete action” on the disputed territory next.
The geopolitical fallout followed the prime minister to Cheshire, where Labour ministers pledged nearly £22 billion to develop carbon capture projects in Merseyside and Teesside.
During a speech today at a glassmaking factory, the PM defended the decision to return the territory to Mauritius claiming that the move ensures continued security of the key military base.
Sir Keir promised workers that the new investment would create thousands of jobs and attract private investment while helping the UK meet its net zero targets.
He described today’s investment announcement as a demonstration of “the politics of renewal in action” and declared the new political divide between Labour and the Tories is ‘investment or decline’.
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Argentina says it will take ‘full sovereignty’ of Falklands after Chagos Islands return
Keir Starmer announces £21.7 billion funding for carbon capture in speech
With the prime minister’s speech on Labour’s new vision for carbon capture over, let’s take a look back at what has been announced.
- ‘National renewal’: The prime minister hailed the government’s plans for two carbon capture clusters in Merseyside and Teesside “politics of national renewal in action”.
- Job Creation: Announcing the plans at a glassmaking factory in Cheshire, Starmer promised the investment would create 4,000 direct jobs and lead to up to 50,000 jobs in the wider supply chain.
- End of Coal Era: The PM highlighted the significance of this week, marking the closure of the last coal-fired electricity plant. He said: “I know what we lost when we lost coal. But I also know how we can rewrite our story in the ink of the future.”
- Chancellor’s remarks: Chancellor Rachel Reeves announced a substantial £21.7 billion investment for the projects, calling it a “massive opportunity” to attract further investment.
- ‘Historic shift’: Energy secretary Ed Miliband praised the end of coal-fired electricity as a “historic week for Britain’s energy system” and condemned the “dither and delay” of the Tories.
- Future focus: Starmer concluded the speech by claiming that the UK is poised to compete globally in clean energy, adding: “We’re putting ourselves in the position not just to be in that global race, but to win that global race.”
Boris Johnson slams Chagos Islands decision as ‘political correctness’
The former prime minister has slammed Sir Keir Starmer’s decision to return the Chagos Islands to Mauritius, branding it a product of “sheer political correctness”.
Mr Johnson told GB News: “Get out your maps, get out your atlases, check out the Chagos Islands, see where they are, see where Mauritius is. A long way away.
“What is this claim? It’s nonsense, it’s total nonsense. Why are we doing this? Sheer political correctness, desire to look like the good guys, a desire to look as though we are unbundling the last relics of our empire. It’s nonsense.”
20 ex-Tory MPs back James Cleverly as next leader
A group of 20 former Tory MPs have thrown their weight behind James Cleverly to become the next Tory leader, our Whitehall editor Kate Devlin reports.
The former foreign secretary, at the centre of a row over the Chagos Islands, has the experience needed they argue.
The group, who all lost their seats at this summer’s general election write: “As James has said, now is not the time for an apprentice.
He is easily the most experienced candidate, having been party chairman, foreign secretary and home secretary.
As party chairman, he helped Boris Johnson deliver the 80-seat majority that broke the deadlock and got Brexit done. He knows what we need to do to get back to winning ways.”
Cabinet ministers don’t need to pay back freebies, says Starmer
Sir Keir Starmer has clarified that cabinet ministers are not obligated to repay gifts following his own decision to return over £6,000 in donations amid a growing controversy.
While addressing the issue, he said: “No, I mean, look, we’re going to draw up some principles so that everyone can see the basis on which donations etcetera can be accepted.
“We’re working on that. Until they’re drawn up, I decided to repay so that any future activities of me or anybody else will be (in line with) whatever the new principles are.”
The prime minister insisted that his repayment was a personal choice, designed to ensure that future actions align with upcoming guidelines.
He added: “I’m not saying others should do the same, but that’s why I did what I did.”
Starmer keeps promise to Rantzen on assisted dying vote
Now on assisted dying, Sir Keir Starmer promised to fulfil his commitment made to assisted dying advocate Dame Esther Rantzen regarding the parliamentary vote on the matter.
He told journalists: “I made a promise to Esther Rantzen before the election that we would provide time for a debate and a vote on assisted dying.
“And obviously that opportunity has now arisen, and I’m very pleased that I’m able, as it were, to make good on the promise I made to Esther Rantzen. The Government will be neutral on this.”
Bank of England urged to be cautious on interest rate cuts
The central bank’s chief economist has advised to be careful over interest rate reductions amid shifting economic conditions.
Huw Pill told an audience at the Institute of Chartered Accountants in England and Wales (ICAEW) that borrowing costs will need to be gradually reduced to keep inflation sustainably close to target levels.
“At present, there is ample reason for caution in assessing the dissipation of inflation persistence,” he said.
The comments come a day after Bank of England governor Andrew Bailey signalled “more aggressive” rate cuts could be on the way.
He added: “While further cuts in Bank Rate remain in prospect should the economic and inflation outlook evolve broadly as expected, it will be important to guard against the risk of cutting rates either too far or too fast.
“For me, the need for such caution points to a gradual withdrawal of monetary policy restriction.”
PM defends Chagos Islands handover
Unsurprisingly, the prime minister has been asked about the ongoing geopolitical row over the Chagos Islands.
Sir Keir Starmer defended the decision to return the territory to Mauritius claiming that the move ensures continued security of the Diego Garcia military base.
Responding to questions about the agreement, he told reporters in Liverpool: “The single most important thing was ensuring that we had a secure base, the joint US in particular, UK base, hugely important to the US, hugely important to us.
“We’ve now secured that and that is why you saw such warm words from the US yesterday.”
Starmer dismisses government delivering ‘doom and gloom’ message
The prime minister has been challenged over his previous remarks regarding UK’s finances and a £22 billion black hole in public finances.
He said: “We’ve got to take difficult decisions in the Budget in relation to the missing money from the last government really tough decisions, like for example, the winter fuel payment, to stabilise the economy.
“Because I’m absolutely convinced that only by stabilising the economy, can we attract the investment that we need in relation to your challenge.”
He added: “In relation to your challenge, as it were, that aren’t we putting off investment, quite the opposite.”
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Starmer takes questions from the press
Sir Keir Starmer is now taking questions from the press.
Someone reminded the prime minister that the carbon capture technology project is “not new” and it was a Conservative idea.
He replied: “The Tories spoke about this, but they did not put the money aside.”
Sir Keir added that his government’s attempt to seek private investment represents “the difference between invest or decline”
“We were elected for change,” he added.
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