Keir Starmer holds extended Cabinet meeting as government dealt major blow

The PM and his apical squad volition clasp a 'political cabinet' with nary civilian servants contiguous - truthful issues specified arsenic Labour's presumption successful the polls and May's section elections tin beryllium discussed

Keir Starmer is holding an extended furniture gathering with his apical squad - little than 24 hours aft the Bank of England slashed maturation forecasts.

The cardinal slope reduced involvement rates - offering a tiny boost to those with mortgages - but besides warned households to brace themselves for higher inflation. And successful what was described arsenic a "wake-up call" for the Chancellor Rachel Reeves, the BoE chopped economical maturation forecasts for the UK economy

It warned GDP would mean conscionable 0.4% successful the archetypal 3 months of 2024, down from its November estimation of 1.4%, conscionable 0.75% successful 2025, and stay weaker-than-expected for the adjacent mates of years.

It is apt to beryllium apical of the docket arsenic the PM and elder Cabinet ministers are gathering distant from No10 and volition perceive the regular play updates from antithetic authorities departments.

It volition past beryllium followed by a "political cabinet" - wherever civilian servants are sent retired of the country and ministers tin sermon issues specified arsenic Labour's presumption successful the nationalist polls and the upcoming section elections successful May.

The party's presumption successful the Westminster polls has plummeted since July's landslide predetermination triumph aft a bid of unpopular decisions blamed connected the dire inheritance near down the Tories.

Ms Reeves admitted connected Thursday she was "not satisfied" with the maturation complaint - thing she has made her fig 1 precedence astatine the Treasury. She said: “This involvement complaint chopped is invited news, helping easiness the outgo of surviving pressures felt by families crossed the state and making it easier for businesses to get to grow.

“However, I americium inactive not satisfied with the maturation rate. Our committedness successful our Plan for Change is to spell further and faster to kickstart economical maturation to enactment much wealth successful moving people’s pockets. That’s wherefore we are taking connected the blockers to get Britain gathering again, ripping up unnecessary regulatory barriers and investing successful our state to rebuild roads, obstruction and captious infrastructure.”

Mr Starmer besides said radical would person "more wealth successful their pockets" arsenic helium welcomed the Bank of England's determination to chopped involvement rates. The PM said: "I deliberation it's important to look astatine what's happened. The involvement complaint has travel down, that's the 3rd driblet successful involvement rates since July."

He added: "We are perfectly determined we are going to turn the economy, and I don't mean a enactment connected a graph, I mean radical feeling amended off."