Presented by Lloyds Banking Group
London Playbook
By EMILIO CASALICCHIO
with NOAH KEATE
Good afternoon. This is Emilio Casalicchio.
THURSDAY CHEAT SHEET
— The government is talking tough about trade retaliation on Donald Trump. But it’s heart isn’t in it.
— Ministers insisted online harms protections are not on the table in trade talks with the U.S. But is it convincing?
— Transport chief Heidi Alexander risks a court battle after giving the green light to Luton airport expansion.
— Keir Starmer teed up a local elections battle against Reform leader Nigel Farage.
— SCOOP: Labour MPs are having a fight about (shock) internal rule changes.
**A message from Lloyds Banking Group: Right now, over 1.5 million households across the country are on waiting lists for social housing. At Lloyds Banking Group, we are continuing to champion social housing and that’s why we have supported £19.5 billion of funding to the sector since 2018. Find out what’s ahead**
TOP OF THE NEWSLIST
WE’RE NOT WIMPS, HONEST: The government published more than 400 pages listing U.S. products that might, maybe, possibly … one day … be slapped with tariffs in response to the 10 percent blanket duties Donald Trump announced on the U.K. overnight.
Do we even get this stuff from America? Live octopus, floating cranes and cork waste are among the thousands of products ministers are putting out to consultation, asking businesses for their views about launching a trade war with MAGA. It’s a war in slow-motion, however, seeing as the consultation won’t close for another month — although officials note the tariffs on motorbikes etc that were a feature of our previous trade dispute with the U.S. could be reinstated sooner.
Not much to consult on: The thing is, no businesses are expected to respond to the consultation demanding a full-blown trade war that would make the economic pain even worse. One business figure Playbook PM spoke to said hitting back would be “foolish” and welcomed the “strong political consensus that retaliation isn’t wise.” Instead, most firms are attempting to take the tariffs on the chin and hope the government strikes its long-promised trade deal with the White House.
Speaking of consensus: As he announced the consultation in a statement to the Commons, Business Secretary Jonathan Reynolds made clear his heart was far from in it. “It remains our belief that the best route to economic stability for working people is a negotiated deal with the U.S. that builds on our shared strengths,” he said.
Consensus and croissants: Prime Minister Keir Starmer said similar in a breakfast meeting this morning with bosses from the likes of Bentley, Unilever and Airbus. “We have a range of levers at our disposal, and we will continue our work with businesses across the country to understand their assessment of these options,” the PM said, while stressing “our intention remains to secure a deal, but nothing is off the table.”
Speaking of the deal: Ministers have been attempting to shoot down the scoop from our trade expert Graham Lanktree that the U.K. could review enforcement of its new online harms rules and digital competition regulations as part of an agreement. Such a move would be manna from heaven to the tech barons who’ve kissed the MAGA ring.
But not manna from heaven for … anti-online hate campaigners, who launched PDF missiles at the government to urge against watering down tech regulation. The Molly Rose Foundation wrote to Reynolds this morning saying it was “dismayed and appalled by the apparent willingness to trade-off children’s safety” to avoid tariffs. Labour MP and science and tech committee chair Chi Onwurah also raised it with Reynolds in the Commons.
But but but: The business secretary insisted the negotiations have not covered the issue. Asked about our scoop at his local elections campaign launch in Derbyshire this morning, Starmer said he would “act in the national interest” on trade, “but it’s also in the national interest to make sure our young people are safe when they’re online.” A spokesperson for Starmer said “our basic protections for children and vulnerable people are not up for negotiation.”
The thing is … none of this is conclusive as to whether there could be some watering down of enforcement. But doing so would be super awks for Starmer after he made a big show about the learnings from Netflix series Adolescence, even getting the writers into Downing Street for a love-in.
Other responses: Aside from talking tough and giving in to U.S. demands engaging in hard-fought negotiations, opposition MPs came up with other ideas to counter the U.S. tariffs. The Lib Dems suggested launching a “buy British” campaign while the Greens proposed forging trade alliances with the EU and Canada. Reform suggested … oh wait, Reform didn’t turn up to the House of Commons to discuss the matter. Nigel Farage tweeted that not ending up here in the first place would have been a better idea. Genius.
How can we help? The Conservatives took a bittersweet approach, offering on one hand to help the government with its trade talks (after even some Conservative MPs argued the Tories negotiated bad deals themselves) and on the other hand thumbing its nose about the kick in the teeth from Trump.
Nose-thumbing in action: Shadow Business Secretary Andrew Griffith dismissed claims from ministers the U.K. got a light beating compared with other nations, due to being hit with the baseline new U.S. tariff rate of 10 percent rather than more. He told Reynolds in the Commons the U.K. got “no special favors” from the U.S., adding: “I count over 125 countries and territories that have the same tariff levels as the U.S. as we now do so not that special.” Reynolds shot back that most of those nations have less complex trading relations with America.
Speaking of special relationships: POLITICO has this afternoon published a big read on how the U.K. tried for months in vain to win a carve-out on the Trump tariffs, then realized at the last minute it wasn’t going to happen. It’s full of color and detail about the talks and how the government ended up chalking up 10 percent blanket tariffs as something of a win.
The big question is … whether the U.K. can get this 10 percent blanket tariff rate (and the 25 percent rate on cars) removed — or at least reduced to the 4 percent rate Reynolds told Radio 4 this morning was the actual average British tariff on U.S. goods. Downing Street would not comment on what it thinks might be possible. Starmer didn’t sound too hopeful when he described the tariff announcement at his local campaign launch as “the beginning of a new era” on global trade, rather than a “short-term tactical exercise” from Trump.
In the meantime: The government is doing its best to love-bomb businesses with as much advice and support as their “stakeholder engagement” staff can handle. One person representing a significant sector said the approach was “open door” and “like night and day” compared with the engagement under the Conservatives. There are numerous calls of various sizes being held with business reps.
Also in the meantime: U.S. stock markets are in turmoil following the Trump tariffs announcement. Details from colleagues across the pond here.
DRIVETIME DEBRIEF
WHO THE REAL ENEMY ARE: Keir Starmer made clear it’s Reform he’s worried about at the local elections. Launching his campaign he accused Nigel Farage of “fawning over” Vladimir Putin numerous times in a bid to contradict the Reform claim to be patriotic. Farage issued a video stating it was “clear we are the real threat to Labour” and dismissing the attacks about Putin.
PLANE SAILING: Transport Secretary Heidi Alexander overruled environmental concerns from planning bosses to approve the expansion of Luton airport. The planning inspectorate said almost doubling flight numbers via a new terminal would impact the relative peace and quiet in the Chilterns and could hurt ancient trees. But Alexander decided the benefit of more jobs and income to the local council income outweighed the environmental risks and gave a green light to the proposals. A government official said the move shows “we will stop at nothing to deliver economic growth and new infrastructure.”
No chance he wrote this: Keir Starmer tweeted about the Luton announcement that “they keep trying to block us but we keep building.”
Speaking of transport: Alexander also visited Hitatchi in the northeast to celebrate Arriva Group ordering £300 million worth of new trains. Arriva has been allowed to continue running services from Sunderland and Bradford to London until 2038 on an “open access” model — rather than the kind of franchising the government is abolishing in favor of nationalization. Open access operators take on full commercial risk, rather than subsidies from the government to run the services.
SCOOP — IT’S ALL GONE A BIT 2021: Labour is fighting with some of its own MPs over … internal rule changes, POLITICO’s Dan Bloom writes in. About 20 MPs met Labour officials on Wednesday to air concern about a proposed set of “standing orders” — which are being updated for the first time in more than a decade.
Bear with us … Changes will remove an MP’s “right to be heard” (i.e. speak to the parliamentary committee of the PLP) if they have the whip suspended or withdrawn in certain circumstances. One MP tells Dan they are “suspicious” of the change, which is proposed as part of a wider modernization. A second says with a crunch vote on welfare cuts looming, there are questions about due process for those disciplined in future. “There’s a lot of anger with how the PLP is run,” they add.
Softly, softly: After initial suggestions that MPs would vote on the changes next Monday, Labour officials say there will be a longer consultation. Advocates insist the changes are neither factional nor linked to any disagreements over policy, and instead would protect sensitive and confidential information being disclosed to MPs in discussions about sexual harassment cases.
TATE MAIL: U.K. government officials insist ministers never received a letter from Florida legal chief James Uthmeier inviting them to request the extradition of adrift men pinup Andrew Tate — despite a report in the Times that the British government failed to respond to such a request. A Downing Street spokesperson refused to comment on extradition requests but noted that the Romanian authorities have agreed to hand the Tates (wanted over alleged sexual offenses) to Britain once their own court process is complete.
**After Trump’s tariffs announcement yesterday, EU-U.S. relations are entering a new chapter. Join our online debrief later today at 4 p.m. CEST with editors from Brussels, Washington and London to get all the details and political consequences. Register here.**
BEYOND THE M25
PARMO HARM: The announcement that Whitehall is keeping a closer watch over Tees Valley Mayor Ben Houchen, following concerns about accounting and transparency over public contracts at the authority, landed here this morning. Houchen last September promised improvements in governance and culture following a damning Whitehall review into contract relating to the Teesside Freeport, but ministers are not satisfied with the proof of progress so have issued him with a so-called best value notice, meaning more hand-holding from Westminster for the next 12 months.
Worth bearing in mind: The announcement means the government has dropped its pre-election pledge of a full National Audit Office investigation into accounting at Teesside, and instead issued a low-level corrective measure. “I’m pleased the government has recognized the real progress we’ve made — and confirmed there is no need for a National Audit Office investigation,” Houchen said in a statement. “That’s the right call, and it reflects the work we’ve done to improve governance while continuing to deliver for local people.”
IN SCOTLAND: West of Scotland MSP Jamie Greene has quit the Scottish Conservatives with immediate effect, writing that party leader Russell Findlay was bringing forward a “Reform-light agenda that appeals to the worst of our society.” Greene, who’s served in Holyrood since 2016, said elections were won from the center and “not on the right-wing fringes in a grotesque dance with Nigel Farage.” The Scotsman has the deets.
HEDGING THEIR BETS: 36 councils and two mayors from across the U.K. who represent more than 12 million people have written to the government calling for an urgent reform of gambling laws due to the number of slot machines and betting shops on high streets. ITV’s Shehab Khan saw their letter describing current legislation as “desperately out of date.”
GOVERNING IS HARD LATEST: Reform UK is aiming high in next month’s local elections, but hasn’t yet finalized how it will run councils it wins. The scoop from PoliticsHome’s Matilda Martin says the party hasn’t decided how it would elect council leaders and deputy leaders after Maria Botwell, a Reform councilor tasked with making the rulebook, resigned from the party last month. Perhaps Nigel Farage can think about it at his birthday party this evening.
IN HUNGARY: Prime Minister Viktor Orbán’s office confirmed Budapest would withdraw from the International Criminal Court (ICC) “in accordance with the constitutional and international legal frameworks.” The decision follows Israeli Prime Minister Benjamin Netanyahu arriving in the capital for a state visit despite being hit with an ICC arrest warrant for war crimes and crimes against humanity in Gaza. My continental colleagues have more info.
MIDDLE EAST LATEST: Syria accused Israel of trying to destabilize its government after deadly airstrikes destroyed a military base. In response, Israel warned Syria it would pay a “heavy price” for any aggression. The Times has more information.
**A message from Lloyds Banking Group: Tonight over, 164,000 children will go to bed in temporary accommodation. They will face real consequences over the course of their lives such as poorer health, lower wages and fewer opportunities. At Lloyds Banking Group, we are continuing to champion social housing and that’s why we have supported £19.5 billion in funding to the sector since 2018. We are going further – converting decommissioned data centers and former office sites into social housing, providing £200 million of funding for local projects, and working with the Government to unlock investment. Together with Crisis, we are calling for one million more homes at social rent over the next decade. Find out what's ahead.**
TONIGHT’S MEDIA ROUND
LEADING THE NEWS BULLETINS: Channel 5 News (5 p.m.), BBC News at Six, ITV Evening News (6.30 p.m.) and Channel 4 News (7 p.m.) all focus on the U.K. government’s response to U.S. President Donald Trump’s tariffs.
Tom Swarbrick at Drive (LBC, until 6 p.m.): National Farmers’ Union President Tom Bradshaw (5.05 p.m.) … Unite the Union General Secretary Sharon Graham (5.35 p.m.).
Drive with John Pienaar (Times Radio, until 7 p.m.): Labour Party Chair Ellie Reeves … Democratic U.S. House of Representatives member Don Beyer … George Osborne’s former Chief of Staff Rupert Harrison … former U.S. National Economic Forum Deputy Director Everett Eissenstat … Netherlands Ambassador to the U.K. Paul Huijts … Estonian Defense Minister Hanno Pevkur … More in Common’s Luke Tryl … APCO Worldwide’s Jo Tanner.
BBC PM (Radio 4, 5 p.m.): Sharon Graham … former U.S. Secretary of Labor Robert Reich.
News Hour (Sky News, 5 p.m.): Former U.S. Ambassador to Denmark Carla Sands (5.20 p.m.) … former U.K. Chief Trade Negotiator Crawford Falconer (5.30 p.m.) … Crossbench peer Karan Bilimoria (5.45 p.m.) … former Assistant U.S. Trade Representative Harry Broadman (6.30 p.m.) … U.N. Special Rapporteur for Myanmar Tom Andrews (6.45 p.m.).
Tonight With Andrew Marr (LBC, 6 p.m.): Ellie Reeves (6 p.m.) … Lib Dem Deputy Leader Daisy Cooper (6.10 p.m.) … Russian opposition activist Mikhail Khodorkovsky.
Dewbs and Co (GB News, 6 p.m.): Former Labour MP Bill Rammell.
GBN Tonight (GB News, 7 p.m.): Reform UK Leader Nigel Farage … former Tory MPs John Redwood and Heather Wheeler.
Question Time (BBC Sounds and iPlayer 9 p.m. and BBC One, 10.40 p.m.): Culture Minister Chris Bryant … Shadow Welsh Secretary Mims Davies … Plaid Cymru Leader Rhun ap Iorwerth … journo Emily Sheffield … TUC Wales General Secretary Shavanah Taj.
Patrick Christys Tonight (GB News, 8 p.m.): Tory peer Shaun Bailey … former Labour adviser Matthew Torbitt … former Tory MP Anna Firth.
Newsnight (BBC Two, 10.30 p.m.): Center for Countering Digital Hate CEO Imran Ahmed.
TWEETING TOMORROW’S PAPERS TONIGHT: Jack Surfleet.
REVIEWING THE PAPERS TONIGHT: Times Radio (10.30 p.m.): Commentator Jonathan Lis and former Tory MP Julie Kirkbride … Sky News (10.30 p.m. and 11.30 p.m.): Labour peer Ayesha Hazarika and Total Politics Group’s Mark Wallace.
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WHERE TO FIND BOOZE IN WESTMINSTER TONIGHT
REAL ALES ALL ROUND: As Playbook reported this morning, Reform leader Nigel Farage is holding a “small” party to mark his birthday this evening.
TOMORROW’S WORLD
HAPPENING OVERNIGHT: The public accounts committee has a report out about dental services … while the business committee has an interim report out about countering Brexit and U.S. tariffs.
LABOUR OF LOVE: Keir Starmer marks five years as Labour leader.
WHAT THE GOVERNMENT WANTS TO TALK ABOUT: The future of the NHS and prison governors.
STILL HAPPENING: NATO foreign ministers, including David Lammy, continue meeting in Brussels.
COURT CIRCULAR: A court is expected to reach a verdict in the case of Livia Tossici-Bolt, on trial for breaching a protest buffer zone outside a Bournemouth abortion clinic — after MAGA-land decided the case was worth risking a diplomatic incident over.
On that note: There’s a reason the Donald Trump orbit picked this case up: A U.S. anti-abortion group is ploughing tons of cash into turning the abortion debate as toxic here as it is in America. It has been feeding stories back to the U.S. government which the vice president then spreads misinformation about. The Guardian’s Ben Quinn revealed how “Alliance Defending Freedom” is working to fuel the row.
ANY OTHER BUSINESS
PACKED LUNCH OR PALACE LUNCH: Subject to change, here are the lunch menus on the estate tomorrow: The Debate: Cajun chicken and bacon burger; Goan haddock curry with lentil freekeh and pickled red onion; soya corn dog with salad … Terrace Cafeteria: Sweet chilli and lime paneer with peppers, spring onions and ginger rice; fish and chips; Bratwurst hot dog with cramelized onion … River Restaurant: Roasted vegetable pasta bake with broccoli, fine bean salad and garlic bread; BBQ pulled pork burger with chips and salad; fish and chips.
SPOTTED: Keir Starmer received a serenade from popstar Olly Alexander at St Pancras station this morning. The PM was boarding a train to Chesterfield for his local elections campaign launch, while Alexander was drawing a crowd performing “King” by his band “Years and Years.” A direct tribute to Starmer perhaps?
ALSO SPOTTED: Greenpeace protestors climbing up the Foreign Office to tether a large poster to the pillars saying “Lammy Don’t Dally!” on introducing an oceans treaty.
COMING TOGETHER: News Hub Group, which includes the Politics UK X page, has merged with Chamber UK to form the Politics News Group. Announcement via, er, Politics UK here.
NEW GIG: BBC Deputy Pol Ed Vicki Young was confirmed as the next presenter of Politics Live from June following Jo Coburn’s departure.
MOVING ON UP: Lib Dem aide Julia Thaxton has been promoted to director of fundraising after working as their head of fundraising.
WELCOME BACK: Labour MP Elsie Blundell returned to parliament this week after her maternity leave.
WHAT I’VE BEEN READING: The harrowing report from the housing committee about kids in short-term accommodation, in particular the section titled “poor quality temporary accommodation,” detailing the shocking conditions some families are forced to live in. It mentions “instances of parents feeling unable to let babies crawl or play on the floor because of mice infestations.”
ON THIS DAY IN POLITICS: On April 3 1721 Robert Walpole became the first prime minister of Great Britain. On the same date in 1963 then-opposition leader Harold Wilson met JFK in Washington. (Pic here.) On the same date in 2016, the Panama Papers leaked, containing information about then Prime Minister David Cameron‘s business dealings … while in 2020, the government opened the NHS Nightingale Hospital, an overflow center to treat COVID patients during the pandemic.
WRITING PLAYBOOK TOMORROW MORNING: Andrew McDonald.
THANKS TO: My editor Ali Walker, reporter Noah Keate and the POLITICO production team for making it look nice.
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