Promising growth in British car production could be cut short unless a deal is reached with the European Union (EU) in the coming months, an industry body has warned.
Britain recorded the best May for car production in four years, according to data from the Society of Motor Manufacturers and Traders (SMMT).
But this figure was largely driven by exports to the EU.
The vast majority (79.5%) of the nearly 80,000 (79,406) cars produced in the UK in May 2023 were for export.
Domestic demand accounted for just 16,188 vehicles despite growing by 45%. That growth in demand in the UK was nearly double the 23% rise in exports.
However, of the exports, more than half (56%) of the cars were made for Europe, with less than a third (28%) of exports going to the next largest markets: the United States, China, Japan and Australia.
The dominance of export in British car-making has led the SMMT to call for continued tariff-free trade between the European Union and the UK, particularly for electric vehicles (EVs).
The organisation says EVs will face tougher rules of origin requirements – regulations that limit the value of material from a different country – from January unless the UK and EU can agree to have them postponed.
While production was up 27% from May 2022, an increase of 16,762 vehicles, it’s still 32% below the output of May 2019.
The car manufacturing sector has grappled with tough economic conditions in the form of slow economic growth, high inflation and rising rates.
There was an especially large growth in hybrid electric, plug-in hybrid and EV volumes – up 95% in May to 27,636 units, equivalent to 35% of all cars made in the month.
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Thesale of new petrol and diesel vehicles is banned from 2030 in an effort to reduce CO2 emissions.
This transition has been cast into doubt by Logistics UK, which has freight companies and suppliers as members. It said efforts to decarbonise were being hampered by high costs, a lack of Treasury support and an inadequate public charging network, meaning the transition to EVs can’t continue without state aid.
There are currently no battery factories in the UK, though Tata, the owner of the UK’s largest carmaker, Jaguar Land Rover, was reported to be building a gigafactory in Somerset.
Police dealing with a “major incident” in Nottingham have closed multiple roads around the city.
Officers and other emergency services at several locations are dealing with an “ongoing serious incident”, according to Nottinghamshire police.
The Nottingham Express Transit (NET) tram network also said it has suspended all services due to “major police incidents around the city and suburbs”.
Emergency services are present at areas including the Maid Marian Way junction of Upper Parliament Street.
Image: Pic: West Bridgford Wire News
Other roads cordoned off include Ilkeston Road, Milton Street, Maples Street, and Woodborough Road, from the junction with Magdala Road into the city.
A statement from the police said: “There are multiple road closures in place throughout the city while the incident is being investigated.
“We are asking the public and motorists to please avoid the following areas and plan alternate routes.”
Police have not confirmed what the incident is involving, but Twitter user Robbie Paul-Stone wrote someone was “being treated on the side of the road”.
“I didn’t see any cars. It’s also closed by Theatre Royal but couldn’t see anything (that was about 7.15am),” he wrote.
The prime minister leaves Washington with some progress on two of his goals on this trip: to get his foot in the door on the global response to the risks of artificial intelligence, and deepen economic ties with our biggest trading partner.
The announcement of the first global AI summit to discuss how the world might multilaterally mitigate risk in London is a win.
Mr Sunak wanted to use this visit to directly impress upon President Joe Biden that the UK has the knowhow to take a bigger lead in the regulation of AI, and this summit is a start in the bigger push to locate any global watchdog in London.
And from the language used by Mr Biden at the news conference, it looks like Mr Sunak succeeded.
The US president told his audience in the East Room of the White House: “We’re looking to Great Britain to help me in that effort to figure out a way through [the handling of AI].
“So we’re in full cooperation. Because there’s no one country we have greater faith in being able to negotiate this. We’re in lockstep.”
For a country that has been shut out of negotiations between the EU and US on regulatory frameworks, this would have been very welcome language.
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0:57
What did Rishi Sunak get out of his US trip?
Mr Sunak prides himself on his knowledge of AI and thinks it’s an area where he can stake ground for the UK.
He likes to share an essay with AI novices called Why AI Will Save The World by Marc Andreessen, which presents a bullish case of how artificial intelligence can enhance our lives.
But, as Mr Sunak told me in our interview this week, he is also very cognisant of the existential threat to humanity it poses if left unchecked, and needs grasping quickly given that AI is evolving faster than expected.
And this goes beyond just the PM’s personal interests – from a UK perspective, in a post-Brexitworld where London no longer acts as the natural transatlantic bridge between Washington and Brussels, Mr Sunak is trying to stake a claim to leadership elsewhere.
The UK’s leadership on Ukraine, kickstarted by Boris Johnson and continued by Mr Sunak, has been noted, both on Capitol Hill and in the White House.
While Washington has size and scale, London, say UK officials, can demonstrate first-mover advantage, unencumbered by the EU.
What Mr Sunak wants to show is that the UK can be a nimble operator – and from his remarks at the news conference, President Biden looks like he could have bought in.
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3:07
Sunak warns against AI ‘scaremongering’
For there’s no doubt, after that scratchy period during the Johnson years and Truss days, that relations were strained.
Mr Sunak has remedied that: in the Oval Office on Thursday, the two leaders spent 40 minutes in a one-on-one meeting, and another 30 minutes in a more formal bilateral with advisers.
No 10 insiders tell me they were pleasantly surprised by Mr Biden’s warm language following those discussions in the news conference.
There is a feeling on the plane back to London that Mr Sunak landed his pitch to be a leader in AI regulation with the US.
Time will tell whether the UK’s hosting of a global conference on mitigating AI risks in the autumn will evolve into the UK hosting the first AI global regulator, something the PM is pushing for.
From a No 10 perspective, this is an administration that is getting wins on the international stage, be it the Windsor Framework with Brussels or the Hiroshima accord with Japan.
And from a prime ministerial perspective, the foreign policy progress Mr Sunak’s making is perhaps the most successful aspect of his first six months in No 10.
This is a leader who seems genuinely comfortable on the global stage and seems to build genuine rapport with allies from the EU’s Ursula von der Leyen to Mr Biden.
As for the deepening of economic ties between our two nations, the announcement of the Atlantic Declaration to strengthen the special relationship was a further sign that allies are trying to cut China out of supply chains amid fears of Beijing’s growing aggression.
But the hard reality is that the free trade deal hailed as a big Brexit win for the British people had failed to materialise after Mr Biden, perhaps constrained by congressional constraints, put that trade deal in the deep freeze.
Read more: PM blames pandemic and war for failure to strike US trade deal Sunak criticises Starmer over ‘bizarre’ North Sea oil and gas ban
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Mr Sunak has long said that he wants to focus on the quality rather than speed when it comes to trade deals (the US-UK deal will be looked at again in 2025), but the hard facts are that the Conservatives promised a free trade deal with the US by the end of 2022, and that deal has failed it materialise.
It is a broken promise.
When I asked the PM in Washington on Thursday to acknowledge this government had failed on this election pledge on Thursday, Mr Sunak said the “macroeconomic situation had evolved” and insisted that the UK-US economic partnership was still strong and reflected new threats.
“Since [that pledge] then we’ve had a pandemic. We’ve had a war in Ukraine and that has changed the macroeconomic situation,” he said.
“And the right response to that is to ensure that we’re focusing our engagement economically on the things that will make the most difference to the British people.
“The real challenge we face are the threats to our economic security. And actually what I’ll be talking to President Biden about today is how can the UK and the US work together to ensure that security for our citizens? I think that’s the thing that we should be focusing on right now.”
No trade deal, but for this PM, the special relationship looks in good shape.
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3:07
US-UK relationship ‘in real good shape’
An Atlantic Declaration that maps out future cooperation on issues such as artificial intelligence, key supply chains and defence manufacturing is a result.
On politics and policy, the special relationship between not just the US, but the UK on a wider global stage is looking in better shape than it’s been for a good few years.
It might not be a vote winner for Mr Sunak come the next general election, but he comes across as the prime minister who believes this is the right thing to do for Britain’s post Brexit relevance and prosperity.
He is a leader who is winning points on the world stage, but still desperately behind in the polls.
Nearly 45,000 people have arrived in the UK on small boats since the government signed its “world-first” deal to send asylum seekers to Rwanda, new analysis shows.
A review of government figures by the Press Association shows that since 1 January, almost 5,000 people have crossed the Channel into the UK, including more than 1,000 in the last week alone.
A year ago today, the government – then led by Boris Johnson – announced the deal with the east African nation. But 365 days on, no flights have taken off due to legal challenges lodged against the policy.
In November, it was confirmed the government had spent at least £140m on the programme so far. The first deportation flight was due to take off last June, but was grounded by a legal challenge from the European Court of Human Rights (ECHR).
The prime minister promised in January to end migrant Channel crossings when outlining his five priorities for his first year in office.
In an interview with ConservativeHome on Thursday, Rishi Sunak conceded his plan to stop small boats “won’t happen overnight” .
And when asked if he would achieve that by the next general election – widely expected to take place in 2024 – Mr Sunak appeared to dodge the question.
In lieu of the Rwanda plan, the government recently unveiled the Illegal Migration Bill, which is currently making its way through parliament.
The legislation includes a promise to “detain and swiftly remove” migrants and asylum seekers who enter the country illegally via the dangerous Channel crossings, and a pledge to cut the options to challenge or appeal deportation.
But critics have described the plans as “unworkable”, questioned whether they adhere to international human rights laws and raised concerns about how children will be treated.
A Home Office spokesperson said: “Our migration and economic development partnership will see people who come to the UK through dangerous and illegal routes relocated to Rwanda, where they will be given the opportunity to settle and rebuilt their lives.
“Rwanda is a safe and secure country and they stand ready to welcome and support refugees – provisions are in place for accommodation, education and employment, with an estimated capacity to relocate several thousands of people.
“We have a strong relationship with Rwanda and both sides are equally committed to delivering the policy and seeing people relocated as soon as possible.”
UK and EU officials will sign off on a new Brexit deal in London today, despite ongoing opposition from the Democratic Unionist Party (DUP).
The Windsor Framework – designed to address problems with the post-Brexit Northern Ireland Protocol – was agreed by Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen last month.
The plan was symbolically approved in the Commons earlier this week by a large margin after a vote on one of its elements – the Stormont brake – as well as getting the nod from the Council of the EU.
The Stormont brake is a mechanism that aims to allow assembly members to flag their concerns about changes to or introductions of new EU legislation that will affect the region, giving the UK government the option to veto them.
The DUP and some prominent Tory Brexiteers – including Boris Johnson and Liz Truss – voted against the deal, saying they still had concerns about EU law taking precedence in Northern Ireland.
DUP leader Sir Jeffrey Donaldson – whose party has refused to form an executive in Northern Ireland until the protocol, negotiated by Mr Johnson, was ditched – has said the new policy is unlikely to lead his party back into a power-sharing agreement in Stormont.
However, in a release ahead of the meeting, the government said the UK and EU had “fundamentally changed the old protocol, fixing the practical problems and securing a new way forward for a prosperous, stable future for Northern Ireland”.
Read more: What role will EU rules continue to play in Northern Ireland? The Boris Johnson and Brexit bandwagons seem to be fading – analysis
Foreign Secretary James Cleverly said the framework would deliver on the government’s commitment “to provide stability and certainty” for the region.
“The framework is the best deal for Northern Ireland, safeguarding its place in the Union and protecting the Belfast [Good Friday] Agreement,” he added.
Mr Cleverly will give formal approval to the framework today alongside the European Commission’s Maros Sefcovic.
Rishi Sunak has negotiated a deal on Northern Ireland and Brexit which his predecessors Liz Truss, Boris Johnson and Theresa May could not have secured.
Having convinced the EU figures he was a serious prime minister they do business with, Mr Sunak has produced a deal that has already turned the heads and won the support of several leading Brexiteers.
Follow live updates on new post-Brexit deal
Here are the five key sections of the text. The areas highlighted in yellow show exactly why they matter.
A fundamental truth remains, however.
Yes, Westminster will take back control of tax and subsidy rates in Northern Ireland.
Yes, there will be fewer checks on goods going from the mainland to Northern Ireland and yes, it appears Northern Ireland politicians will be able to block new EU rules.
However, Northern Ireland will remain in parts of the single market, ultimately overseen by EU judges.
This is the consequence of the deal that Boris Johnson struck in 2019, and cannot change.
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2:40
PM hails ‘decisive breakthrough’
Read more: Sunak unveils ‘Windsor Framework’ deal on Brexit What is the Northern Ireland Protocol? What are the DUP’s seven tests?
It is now for politicians of all stripes to decide what they can accept, and how far the deal goes to satisfying their whims.
The Democratic Unionist Party (DUP) must now decide its approach.
Key MPs will make up their mind. The EU will watch whether Mr Sunak pulls his protocol bill.
It only takes 37 Tories to make Mr Sunak’s life hellish by voting with the opposition.
Rishi Sunak says Britain and the EU have an understanding on what needs to be done around the Northern Ireland Protocol, but that work still needs to be done.
The prime minister spoke about where things stand following his speech at the Munich Security Conference, saying that Britain wanted to have a positive relationship with the EU.
So what is actually going on?
I thought we had a Brexit deal, what is this agreement that Rishi Sunak is trying to get?
These talks are all about the part of the Brexit deal that relates to Northern Ireland.
Dubbed the “Northern Ireland Protocol”, it was agreed with the EU by Boris Johnson in 2020 – alongside the wider trade and co-operation treaty.
The point of it is to avoid a hard physical border on the island of Ireland – the only place where there is a land frontier between the UK and EU.
All parties agreed this was necessary to preserve peace on the island.
The protocol does this by placing Northern Ireland in a far tighter relationship with the EU, compared with the rest of the UK.
Since the Brexit deal fully came into force at the start of 2021, there has been an ongoing process to iron out the various issues it has thrown up relating to Northern Ireland.
That has escalated over time to the point where a new agreement is now being worked on.
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2:36
There’s new hope of a breakthrough to end years of deadlock between the UK and the European Union over post-Brexit trade arrangements
What practical changes are needed?
To avoid a hard border on the island of Ireland, physical checks take place when goods cross the Irish Sea from Great Britain to Northern Ireland.
Companies and traders in Northern Ireland also have to comply with EU single market rules.
This has all caused friction in the flows of goods coming from England, Wales and Scotland with shortages of certain items in shops and onerous paperwork for businesses.
EU rules on food stuffs has also meant a potential ban on sausages and other “chilled meats” coming from Great Britain.
There are also upsides of the deal though. As Northern Ireland essentially still has one foot in the EU single market, it’s easier for businesses there to trade on the continent.
What’s been the political fallout in Belfast?
Democratic Unionist Party (DUP) unionist politicians in Belfast believe Northern Ireland is being carved out from the rest of the UK and treated in too different a fashion.
This stems in part from the practical problems being experienced by businesses.
There’s also concern over a so-called “democratic deficit” whereby Northern Ireland takes on rules from Brussels that it has no say over.
There are more ideological issues too. The role played by the European Court of Justice is a big sticking point.
Because Northern Ireland is still subject to EU rules, Brussels believes its court should have a heavy involvement in resolving disputes.
The DUP and some Conservative MPs see this as an erosion of the UK’s sovereignty and incompatible with the aims of Brexit.
Image: The iconic site of Harland & Wolff’s shipyard in Belfast
How does this relate to the Northern Ireland assembly?
The DUP is one of two parties that shares power in the devolved government in Northern Ireland.
But the party has been staging a boycott and refusing to allow this executive to form or the elected assembly to sit until its concerns over the Brexit deal are addressed.
This has meant the democratic institutions that are supposed to be running public services in Northern Ireland and representing voters haven’t been functioning properly for more than a year.
Sinn Fein – the republican party that also shares powers in Belfast – has urged the DUP to approve the changes to the Brexit deal and go back into power-sharing as soon as possible.
What will be in the new deal?
We don’t really know. Downing Street has been keeping quiet about the details.
Speculation is that parts of it will look quite similar to plans outlined by the UK last year.
There may be a “green lane” and “red lane” system to separate goods destined for Northern Ireland from those at risk of being transported to the Republic and on to the EU.
This should reduce the need for physical checks and paperwork. Some sort of compromise is also likely on the role of the European Court of Justice.
There could potentially be a mechanism whereby the ECJ can only decide on a dispute after a referral from a separate arbitration panel or a Northern Irish court.
Read more: Britain and EU NI deal ‘by no means done’ Northern Ireland election delayed until January 2024
Will the DUP support it?
This is the big unknown. The party has come up with seven “tests” that it will apply to any deal when deciding whether to back it.
These contain some specific requests, such as there being no checks on goods going from Great Britain to Northern Ireland and no border in the Irish Sea.
But there are also broader points such as allowing the people of Northern Ireland the same privileges as everyone else in the United Kingdom and guaranteeing the letter and spirit of the Good Friday Agreement.
There are also electoral considerations, a sizeable chunk of the unionist community in Northern Ireland believes the DUP should only go back into power-sharing if the Northern Ireland Protocol is scrapped completely.
So if the DUP is seen to cave too easily, the party could lose voters to more hard line rivals.
Will Tory MPs support it?
Again, we just don’t know. It’s also unclear whether MPs will actually get a Commons vote on the new agreement. Downing Street hasn’t committed to one.
But not allowing MPs to have a say would risk inflaming tensions with backbenchers.
The main audience the prime minister needs to please here is the “European Research Group” of pro-Brexit MPs.
They claim otherwise, but the caucus isn’t really as powerful as it was a few years ago.
Many senior members are now in government including the Home Secretary Suella Braverman, the Northern Ireland Secretary Chris Heaton-Harris and his junior minister Steve Baker.
They will all need to be happy before the deal is published. In fact, they could play a part in getting Eurosceptic colleagues on board.
The reaction of Boris Johnson could also prove crucial. If the former prime minister came out against his successor’s deal, that could galvanise backbench anger.
Labour has said it will lend Rishi Sunak votes if he can’t push the deal through on his own. But this would be an embarrassing development for the prime minister that would risk further instability in his own party.
What happens if Rishi Sunak can’t get everybody on board?
The prime minister can live with some dissent from his MPs. Failing to win the support of the DUP is more serious though, as it means the party will continue to block the formation of the devolved executive in Belfast.
If the objections from the DUP seem less forceful, Mr Sunak could proceed anyway and hope they eventually come onboard after May’s local elections.
If he runs into a solid roadblock with both his MPs and the DUP and can’t get further concessions from the EU, then there is still the option of invoking the Northern Ireland Protocol Act.
This is UK legislation currently making its way through Parliament that would strip away parts of the Brexit deal without the approval of the EU.
Many see it as contravening international law and using it risks a trade war with Brussels. That’s something the government could do without, given the delicate economic situation.
What if Rishi Sunak gets his deal through with support from everybody?
If the prime minister can fix the Brexit deal, restore power-sharing in Belfast and keep his party together then it will be the undeniable high point of his time in Downing Street so far.
He will be able to claim that he solved an issue that has bedevilled his three predecessors.
It also has the potential of being a significant political inflexion point.
If the economic situation improves and he can also bring forward tangible action on strikes and Channel crossings, then there is a chance that the gloomy electoral outlook for the government begins to brighten.
But I thought Boris Johnson said Brexit was done?
Yes, he did. He also promised that his deal would not lead to a border in the Irish Sea.
At the time, many inside and outside of politics warned that the text of the agreement he signed would mean checks between Great Britain and Northern Ireland.
The former prime minister and his allies now say no one expected the EU to enforce the agreement in such a strict and inflexible way. The real answer to all this may lie in the politics of the time.
In 2019, Boris Johnson was eager to get a deal agreed with Brussels and campaign in a general election on the back of it.
This meant some of the thornier parts of the treaty were somewhat played down at the time. But it also stored up problems that Rishi Sunak is now trying to fix.
If this deal goes through, will Brexit then be done?
It will be more “done” than it ever has been. But overall, not really.
For a start, the Northern Ireland Protocol has a consent mechanism built into it, meaning that members of the devolved assembly in Belfast will vote next year on whether to keep the arrangement.
If a simple majority of Stormont members approves the deal, then it will remain in place for four years, at which point another vote will take place.
If it passes with a higher approval percentage in both unionist and republican parties, then the next vote will happen in eight years’ time. Then there’s the issue of the UK signing trade deals with other countries around the world.
This could mean changes to domestic rules and regulations that would have a knock-on impact for Northern Ireland and for the UK’s broader relationship with the EU.
Future governments may also decide to take a different approach with Brussels meaning Brexit and the country’s relationship with its closest neighbours will stay a live issue for a good time yet.
Britain and the EU have an understanding on what needs to be done to resolve issues surrounding the Northern Ireland Protocol but a deal is “by no means done”, Rishi Sunak has said.
Speaking during a question and answer session after his speech at the Munich Security Conference, the prime minister said Britain wanted to have a positive relationship with the bloc.
But he said that there were “real issues that need resolving”.
“The way that the protocol has been implemented, it’s causing very real challenges for families, for people, for businesses on the ground,” he said.
“We’re engaging in those conversations with the European Union all the time and we have been for a while, but what I’d say is there is still work to do.
“There are still challenges to work through. We have not resolved all these issues.
“No, there isn’t a deal that has been done, there is an understanding of what needs to be done.”
Mr Sunak added that “we’re working through (the issues) hard and we will work through them intensely with the EU, but we are by no means done”.
It comes after Sinn Fein’s leader Mary Lou McDonald said “significant progress” had been made to resolve the row over the Northern Ireland Protocol and a deal is “very much game on”.
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2:36
Hope of NI Brexit breakthrough
Speaking after discussions with Mr Sunak, who was in Northern Ireland on Friday to hold talks with political leaders, she told reporters: “We have always believed that a deal on the protocol was possible and we’ve always known it was necessary.
“It is clear that significant progress has been made and we are very heartened by that. We now want to see a speedy concluding of matters.
Read more: Prime minister visits Belfast for talks on Northern Ireland Protocol Rishi Sunak and Ursula von der Leyen promise to ‘work together’ on Northern Ireland
“The bottom line is that we have to ensure that any deal provides for ongoing access to the European single market, no hardening of the border on the island of Ireland and a protection of the Good Friday Agreement in all of its parts.
“It seems to us that it’s very much game on.”
Image: Mary Lou McDonald with Michelle O’Neill
She said if these terms are reached it is then “a matter for everyone, for each of the political parties to step up, get back to work and deliver for people here in the north of Ireland”.
This is likely aimed at the DUP and other unionists, who have collapsed the Stormont assembly in protest over the protocol.
Mr Sunak travelled to Belfast, along with Northern Ireland Secretary Chris Heaton-Harris, to meet Stormont leaders amid mounting speculation a deal on post-Brexit trading arrangements could be days away.
After emerging from talks with Mr Sunak, DUP leader Sir Jeffrey Donaldson said while “progress has been made” on the Northern Ireland Protocol, there is “still some work required”.
Image: DUP leader Sir Jeffrey Donaldson
He warned that “if and when a final agreement is reached, we will want to carefully consider the detail of that agreement and decide if the agreement does, in fact meet our seven tests”.
These “seven tests” were set out by the party in 2021 and include no new checks of any sort on goods being traded between GB and NI.
Asked if he will compromise on these tests for a deal to pass muster, Sir Jeffrey said it “is not a question of compromising”, but rather the “UK government honouring the commitments they’ve made”.
Rishi Sunak may not want to look like he is jumping the gun over new deal
Rishi Sunak very much downplaying reports that there could be a deal revealed as soon as Monday.
I guess the question is, whether that is an indication of genuine delays and problems and that there may not be something coming in the imminent future, or whether this is more strategy.
I think when you look at some of the choreography of the last few days, discussions going on in Belfast, the foreign secretary in Brussels yesterday, and meetings with EU leaders in Munich, it feels like there is something more substantial that is moving there.
So what may be going on, quite frankly, is an attempt not to sound too presumptuous in terms of revealing a deal without the DUP’s permission. Because of course, it is the DUP, unionist politicians in Northern Ireland, that really need to approve of this deal.
Because if they don’t, they will refuse to go back into power-sharing in Belfast and it means the democratic institutions, the executive, and the assembly there, won’t sit again.
So Rishi Sunak is trying to keep multiple audiences happy here, and that is potentially why he doesn’t want to sound too presumptuous or looking like he is jumping the gun in announcing any potential deal on the Northern Ireland Protocol.
The mechanism has left Northern Ireland without a devolved power-sharing executive since early last year.
The protocol has overshadowed Northern Irish politics since it was agreed upon as part of the Brexit deal in a bid to avoid a hard border on the island of Ireland.
Members of the unionist community are unhappy with the difficulties it creates for trade between Northern Ireland and Great Britain, with the DUP refusing to cooperate with forming a devolved Executive in Stormont until the issues are resolved.
What is the Northern Ireland Protocol and why does it matter?
The UK government says the protocol is not working and wants to override it with new legislation if the EU does not agree to changes – a move Brussels has warned is “illegal and unrealistic”.
However, tensions have cooled in recent months, with both sides pledging to work together to find a way forward.
Last month, the EU and the UK said there was a “new basis” for resolving the Northern Ireland Protocol row after an agreement was reached in sharing trade data.
Grant Shapps has said Liz Truss had the right priorities but failed as she did not try to deal with the “big structural issues” first.
The business secretary said he agreed the UK should have a low-tax economy, as the short-lived prime minister advocated, but inflation and debt needed to be dealt with first.
He was speaking the morning after Ms Truss released a 4,000-word essay in the Telegraph on Saturday night about what she had wanted to do as PM and why she thought it did not work.
Mr Shapps told Sky News’ Sophy Ridge on Sunday programme: “I noted that she said that they hadn’t prepared the ground for these big tax changes.
“And I think the truth is, and we know this, what you’ve got to do first is deal with the big sort of structural issues.
“Deal with inflation first, deal with the debt so you’re on a downward trajectory.
“And then you look towards tax cuts.”
“Everyone wants a lower tax economy,” he added.
Despite previously calling Ms Truss “tin-eared”, the business secretary refused to directly criticise Ms Truss’ leadership, which she called time on after just 44 days following the disastrous mini-budget in September.
He added that, as an MP and former Tory leader, she had the right to put her argument across in the article.
But he backed current PM Rishi Sunak in a backhanded swipe at his predecessor, saying the prime minister is tackling high inflation to ease pressure on the economy before growth can happen.
The head of the UK’s second biggest union has accused the government of having a “sinister reason” for “not doing a deal” with nurses to end their strike action.
Sharon Graham, general secretary of Unite, said the government is looking to privatise the NHS, which is why it “won’t come to the table”, and she claimed ministers were “pretending” that pay negotiations were going on.
It comes as NHS leaders are making contingency plans with the biggest walkout in the health service’s history looming.
Ambulance staff and nurses are both set to go on strike on 6 February – taking industrial action on the same day for the first time ever.
Image: Protesters outside Downing Street during a nurses’ strike this month
Politics latest: Cabinet minister dodges questions on Boris Johnson ‘sleaze’ allegations
Ms Graham told Sky News’ Sophy Ridge on Sunday programme: “This employer, being the government, is not interested in doing a deal as far as the NHS is concerned.
“I have to say we are concluding now that there must be a much more sinister reason for this because this level of self-harm is unprecedented.”
Asked what the reason could be, Ms Graham said: “I think that they are looking to privatise the NHS. Genuinely, I believe that they’re looking at this as the moment they can privatise the NHS.”
She also said that Prime Minister Rishi Sunak was “missing in action”.
“Now, it’s either that Rishi Sunak is not up to this job, that he doesn’t want to come into the negotiating room and to do this deal or there must be another reason as to why he’s allowing this self-harm to happen to the NHS.”
She suggested nurses would be willing to accept a 10% pay increase, but Health Secretary Steve Barclay has ruled this out – insisting it was “not affordable”.
He warned this would amount to an additional £3.6bn a year that would take money away from patient services.
Government ‘doesn’t want a resolution’
In perhaps her most scathing comments yet, Ms Graham said she believes it is “deliberate” that the government is “drawing out” talks.
She accused the government of “lying” on a number of issues, adding that she does not use this word lightly.
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0:44
10% pay rise for nurses ‘not affordable’
The alleged lies include ambulance workers not covering minimum safety levels during disputes, and that the government is continuing with talks.
“They are being disingenuous by pretending that there are talks going on about pay,” she said. “There are absolutely no talks going on about pay. Every general secretary will tell you that.”
She added she is “negotiating with somebody at the moment that I don’t think wants resolution”.
Mr Sunak has said his government is “very keen to have a constructive dialogue” with unions across the public sector – and stressed talks are ongoing to find a way of bringing strikes to an end.
He added: “But we do also need to make sure that those conversations are based on what’s reasonable, what’s responsible for the country as we tackle inflation, which is good for everybody if we can get that down as quickly as possible.”
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