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Hundreds of thousands of protesters march across France for third week in a row

31 October 2026 at 18:33

Hundreds of thousands of people gathered in France to protest against the rising cost of living and deteriorating school conditions as youth-led protests spread to Italy and Germany.

With six months to go until the presidential election, France’s largest cities including Paris, Lyon and Marseille saw marches for a third consecutive Saturday.

The French interior ministry said 320,000 people took to the streets across the country on Saturday in what were largely peaceful protests. Student unions put the figure at half a million, including 200,000 in Paris.

Arrests were significantly lower than during previous demonstrations, although tensions and clashes emerged in Marseille, Paris and Lyon as marches dispersed.

French authorities described the situation nationwide as “generally calm” in the early afternoon. France deployed 70,000 police officers to contain what it feared would be another day of unrest.

Many protesters wore Halloween costumes despite French Interior Minister Laurent Nuñez warning that face coverings could result in fines of €150.

Other European cities including Rome, Milan, Berlin and Frankfurt also experienced a day of youth-led protests against the cost of living and, in Germany, military spending.

The protests in over 30 German cities were ignited by a youth-led initiative called Gen Z regelt (Gen Z gets things done) and remained largely peaceful despite the police cancelling a planned march in Cologne after some participants wore face coverings and set off smoke bombs.

In Italy, the police carried out 60 searches across 23 cities targeting people suspected of inciting violence a mass demonstrations on Friday, according to news agency ANSA.

Zohran Mamdani Is Brushing Off The Backlash Against His Public Grocery Stores

30 October 2026 at 17:22

New York City Mayor Zohran Mamdani knows what they’re saying about his grocery plan. 

Conservative media outlets and right-wing commentators have, for more than a year, been practically apoplectic about Mamdani’s push to open five municipal stores to sell discounted food. Local Republicans have responded to the initiative by comparing Mamdani to Fidel Castro and Hugo Chavez. Last year, as Mamdani made the plan a central plank of his campaign, Fox Business published a dramatic piece featuring interviews with “descendants of socialism” from Eastern Europe and Cuba suggesting Mamdani’s agenda was reminiscent of the “vivid memories,” “tales of woe” and “scars” they experienced. 

Now, the plan is underway. The first store is set to open its doors by the end of next year, and Mamdani is thoroughly unmoved by the backlash. In a conversation with TPM last week, the mayor dug into the details of his grocery store plan and brushed off the critics. 

“If I listen to that commentary every day, I would become afraid of my own shadow,” Mamdani said with a laugh. “And I think, for too long, we have allowed the right to dictate the entirety of the discussion. And we have limited ourselves to a response to a landscape that they have created.” 

As he sat in the Governor’s Room of City Hall, Mamdani emphasized his words by tapping his hand against the large conference table. It’s a gesture that would go unnoticed if it were not for his signature silver rings gently rapping against the wood. The sound served as periodic punctuation as he expressed his frustration with the limitations of Democratic politics as usual and his enthusiasm for the city-run stores.

“It is time for us to ask ourselves, what is our party for?” he asked. “And to me, the answer has to be the working class. It’s the only majority in this country. And then what can we do to materially change the lives of those working class New Yorkers or Americans?” 

Those are the people who inspired Mamdani’s groceries initiative. The mayor explained that he settled on the idea during his campaign last year based on conversations with city residents.

“If you ask New Yorkers, .. what are the costs that you’re reckoning with as part of the skyrocketing cost of living crisis in our city? … What is pushing you to reconsider if you should be living in this city? … Again and again, you hear about housing, childcare, groceries,” Mamdani said. “We’d hear about public transit, we’d hear about other things, but groceries would always be up there.”

Data shows it’s gotten far more expensive to eat in New York City. A report released by the state comptroller last year showed food prices in the metropolitan area were up over 25 percent since 2019. And as Mamdani and his advisers looked at ways to confront the issue, they became adamant new approaches were needed. 

“When everyone is telling you that prices are too high, the common refrain is therefore we should subsidize the private market further,” said Mamdani. “And yet, what we’ve seen is that we’ve explored those kinds of strategies here in New York City. They have not had a substantial impact on the cost of groceries.”

The plan is rooted in a very New York “tradition.” Mayor Fiorello La Guardia, a progressive New Deal Republican who steered the city through the Great Depression, opened public markets that gave street vendors support and space for their businesses. That vision has continued with Essex Market, a warren of shops and restaurants on the Lower East Side that the city has operated since the 1990s. 

Mamdani describes La Guardia as “an inspiration each and every day.” One of New York’s five new grocery stores is being constructed at La Marqueta in East Harlem’s El Barrio, a site that was home to one of the original 1930’s markets. More recently, a similar public grocery store initiative has begun in Atlanta. 

Despite the histrionics — including dire warnings from Fox News and right-wing think tankers that Mamdani’s stores could cause widespread food shortages — the actual plan is fairly limited in its scope. There will just be five stores (one in each of New York City’s boroughs). In addition to La Marqueta, another is planned for a city-owned site at Hunts Point in The Bronx. That store, which has been dubbed The Peninsula, is slated to be the first to open towards the end of next year. The other three locations, which will be in Brooklyn, Queens, and on Staten Island, have not been identified yet. Mamdani has pledged to open all of them by the end of his term in 2029. 

Inside the stores, a slate of items that Mamdani’s team has dubbed a “core basket” will be offered at a 30 percent discount that will be adjusted monthly and pegged to the market rate. This includes produce, meat, seafood, dairy, and a selection of pantry staples. Other items will be on sale at standard prices. The city estimates this will save customers roughly $90 per month.

Those market rate costs for the majority of goods in the grocery stores are hardly in line with the visions of Havana spun by the right. The “government-run” moniker conservatives have slapped on the project is also an exaggeration. Mamdani’s grocery stores are actually a public-private partnership. The New York City Economic Development Corporation currently has proposals out looking to rent privately owned sites for the final three stores. They also have accepted bids from experienced operators to run all of the venues. 

Some of the criticism of the plan has been based on its potential cost to taxpayers. The city initially invested $70 million to cover construction and real estate expenditures associated with the five sites. According to officials, with solicitations for sites and operators ongoing, the final annual cost of the program is not clear. However, they are confident having the spaces paid for will be sufficient incentive to enable the store operators to offer the “core basket.” If necessary, the city may also provide further subsidy beyond covering real estate capital costs to ensure operators can stock the discounted items. Furthermore, they expect the NYCEDC’s competitive bidding process will help identify companies who can keep the stores’ overhead low. 

In the interview with TPM, Mamdani insisted the plan will be “sustainable.” And, thus far, the mayor has a track record of managing the costs of his ambitious programs. This year, Mamdani, who inherited an approximately $12 billion deficit when he took office in January, balanced the city budget. While much has been made of the fact that the feat required some help from the governor’s mansion and a delay in pension payments that will need to be dealt with down the road, Mamdani made up nearly half the difference by finding new revenue through taxes on the wealthy and cost-saving measures like cutting unnecessary overtime. 

Joseph Hernandez, the Republican candidate for state comptroller, has been one of the more vocal critics of Mamdani’s municipal grocery stores. He’s unveiled estimates claiming the plan could cost $200 million. There are some issues with that figure. Along with the initial $70 million in construction costs and an estimated $106 million in projected operating costs, Hernandez’s tab includes a supposed $30 million that he says will be lost by other businesses from competing with the stores. 

“We can absolutely afford it,” Mamdani said with a laugh. “We are a city budget that has significantly north of $100 billion on an annual level — and we already spend about $850 million in programs that seek to address food insecurity, ranging from our school system to funding food pantries.”

“What we’re talking about here is a drop in the bucket of what the city already spends,” he added. “But one that will be felt by every single New Yorker who goes to these stores.”

Mamdani further argued that those who raise questions about the price of social programs “prefer not to see the cost today” of the underlying issues those initiatives seek to address. 

“We are dealing with the costs of food insecurity every single day. We’re sitting down to talk in the wealthiest city in the wealthiest country in the history of the world and yet one in four New Yorkers are in poverty,” Mamdani said. “It is not tenable, it is not acceptable.”

For the mayor, the situation calls for a different kind of politics. He described himself as “unwilling” to simply point at the problem “and then hope that somebody comes up with a solution.”

“This is a city of innovation. It’s a city of imagination. It’s time we bring those kinds of ethos to our politics as well,” Mamdani declared. 

The idea that the new stores will hurt other businesses has been one of the more persistent arguments from critics of the plan. A group of minority-owned bodegas and supermarkets has even sued to stop the initiative. Yet Mamdani argues his stores are fundamentally different, particularly from bodegas which typically offer ‘round-the-clock service and core items that won’t be available in the municipal shops. 

“The biggest things that drive revenue for bodegas are tobacco, lottery tickets, and alcohol. We’re not selling those,” Mamdani explained. “Our goal here is not to compete with fundamental parts of New York City.”

Mamdani, who noted there are thriving bodegas in the immediate vicinity of the existing public Essex Market, also framed it as fairly simple math. 

“We’re speaking about a city that has north of 10,000 bodegas, north of a thousand different grocery operators. We’re talking about five city-run grocery stores,” he said emphatically as his ring tapped against the wooden table. 

As they select locations for the stores, city officials are looking for neighborhoods where there isn’t much competition. They are aiming for locations with insufficient grocery store options as well as a high rate of residents accessing public benefits. Though the goal is to ensure the discounted food will be easily accessible for lower income New Yorkers, the stores will be available to anyone who wants to shop at them. 

“These are stores for everyone,” Mamdani said.

In building out his vision for the municipal grocery stores, Mamdani named his chief of staff, Elle Bisgaard-Church, who he calls his “left hand,” as a key force behind the project. He also pointed to Deputy Mayor for Economic Justice Julie Su, the highest ranking City Hall official with the stores in their portfolio, and NYCEDC Executive Vice President Jamie Horton as being among the key officials overseeing the plan. 

New York City Mayor Zohran Mamdani at a food distribution center on July 27, 2026. Mamdani announced that the five upcoming city-owned grocery stores will offer a 30 percent discount on produce, meat, bread, and milk when they begin to open next year. (Photo by Spencer Platt/Getty Images)

Speaking to TPM, Horton said one key aspect of the program for Mamdani is ensuring that the stores will be a “pleasant experience” without “stigma.” The solicitations for operators and sites specify the visual language and design elements that will be part of creating an elevated environment inside the shops. 

“It’s really important that this is an example of public excellence, that the public sector can deliver a high quality experience. It’s also about providing a service … that treats folks with dignity, that this isn’t a handout for folks, it’s that the government is delivering for its people,” Horton said. 

Overall, Mamdani said a core goal of the project is making a real change in the environment for city residents. 

“I am tired of the fact that politics has increasingly become an act of describing working peoples’ struggles as opposed to putting forward what you will do about those struggles,” he said, before asking, “How are you going to deliver them a different reality?”

That ethos and desire to take concrete steps to address cost of living has been the central plank of Mamdani’s platform. As he ran for office last year, the grocery stores were one of the highest profile parts of his campaign along with a partial rent freeze and a plan for fast, free city buses. Mamdani delivered on the rent freeze for certain stabilized units in June. While the plan for free buses has run into legislative opposition, in July, Mamdani and Gov. Kathy Hochul unveiled a road map to speed up service. 

At every turn, Mamdani’s various proposals have faced backlash and questions about costs. The criticism has been amplified by Mamdani’s membership in the Democratic Socialists of America. All of this has, for better or worse, made Mamdani a national figure who has received both positive attention and ire from President Donald Trump. Last June, after Mamdani won the Democratic primary en route to City Hall, Trump took to social media and blasted him as “a 100% Communist Lunatic.” Less than five months later, after Mamdani was victorious in the general election, the two had a warm meeting in the Oval Office where the president heaped praise on the new mayor. 

“I met with a man who’s a very rational person. I met with a man who wants to see — really wants to see — New York be great again,” Trump said, adding, “I’ll be cheering for him.”

Along with the rhetoric, Trump’s allies have also played their part in the opposition to Mamdani’s grocery plan. One of the legal complaints from store owners was filed with the America First Policy Institute, a right wing dark money group chaired by Larry Kudlow, the former director of the National Economic Council in the Trump White House. 

Mamdani smiled broadly as he offered some choice words for Kudlow. 

“Larry must love paying a lot of money for eggs,” Mamdani said, adding, “There will always be opposition wherever there is innovation and wherever there is imagination. And we welcome it. We are fully confident in the legality of this program and even more so than the legality, the urgent necessity of it.”

While the mayor clearly has his critics, Mamdani and the swirl of national buzz around his rise helped turn “affordability” into one of the major talking points of this election cycle. And, in New York, the most recent polling shows his popularity has surged to nearly 70 percent favorability. 

Mamdani believes his fellow Democrats need to be less preoccupied with their detractors. 

“I think you simply have to prepare and expect for this kind of backlash. What it is, is a backlash to any kind of change. And if you want to avoid backlash, then all you will do is just steward the status quo. And that is exactly what has gotten us to this point,” he said. “It is critically important that we stop the act of constructing an ever-lowering ceiling on our ideas.”

For Mamdani, his grocery stores epitomize this ambitious, unafraid vision and approach. 

“That is what is so exciting to me,” he said. “Politics so often is something that has to be translated to someone who lives outside of the political world. There is no translation required about cheaper groceries. You understand it when you’re checking out.”

“For too long, politicians have had things to say and they haven’t had anything to do,” he added. “And it’s time to make this city an example of what we can do for people.” 

5 things Westminster doesn’t know about the UK economy (but probably should)

30 October 2026 at 05:00

LONDON — Britain’s government runs on numbers — but what if they’re a shot in the dark?

From tepid economic growth to squeezed household incomes, this week’s budget from Chancellor John Healey was packed with grim figures about the state of play in the U.K. — and a host of costly measures to try and turn things around.

Yet it’s almost certain that the budget forecasts Healey relied upon Wednesday will be revised by the time the next fiscal event rolls around.

In this week’s episode of the Westminster Insider podcast, POLITICO unpacked the numbers that govern the U.K. — and found out just how many doubts there are about the information the country relies on.

1. True levels of immigration

Few issues divide Brits like immigration — but grappling with hard data on the issue has proven to be a repeated challenge to governments of all stripes.

For decades, immigration into the U.K. was calculated by the International Passenger Survey (IPS) — essentially people with clipboards at airports, train stations and ports asking people about their intention to stay in the U.K.

The Eurostar platform is pictured at St. Pancras station in London on Nov. 14, 2007. | Cate Gillon/Getty Images

But between 2012 and 2020, the number of European Union nationals coming into the country was off by 76% — or 93,000 people a year. The Office for National Statistics (ONS) only discovered this error after trialing a new approach to counting immigration that focused less heavily on the IPS, which was dropped altogether in 2025.

The ONS now uses this new measurement — relying on a combination of Home Office data, information from the Department for Work and Pensions and tax receipts.

But this was again wrong in the year to June 2023 — by 234,000 people.

The original numbers published by the ONS in November 2023 said net migration to the U.K. was 672,000. A year later, the ONS admitted there had been a mistake and said it was in fact 906,000.

Laura Gilbert, who ran data science in No. 10 Downing Street until last year, told POLITICO that net migration numbers are often incredibly misleading — and even the way we calculate those numbers is “highly spurious.”

Gilbert says the quality of the numbers on immigration normally improves months later, sometimes by “quite a lot.” But she warned, “if politicians are making a decision based on exact numbers, often they are using the first number that comes out, which is the worst one.”

2. The scale of unemployment

Healey and Prime Minister Andy Burnham have vowed to get welfare spending down “but in a Labour way.” Much of this will rest on getting young people into work, the subject of a 217-page report by Tony Blair-era minister Alan Milburn.

But Britain’s workforce — and the number of young people out of work — is counted by the Labour Force Survey (LFS), an ONS measurement beset with issues.

For example, between 2019 and 2024, the LFS missed 1 million workers because people with full-time jobs are less likely to answer the phone to surveyors during the week, according to the Resolution Foundation think tank.

The Office for Budget Responsibility (OBR) admitted just this week that the survey is too unreliable to measure productivity. “In recent years, falling response rates have significantly affected the quality of the LFS, making it more difficult to estimate reliably the number of workers and the hours they work,” the watchdog said.

Gilbert says Healey’s claim that there are “1 million young people out of work” is unlikely to be accurate.

The number of NEETs — people not in education, employment or training — is also based on figures from a subset of the LFS, which is particularly susceptible to inaccuracies.

Healey leaves No. 11 Downing St. in London to present the budget to Parliament on Oct. 28, 2026. | Peter Nicholls/Getty Images

“I think being within 50,000 on either side of that number is very unlikely to be the sort of level of accuracy that you’re at,” Gilbert said. “It’s entirely spurious, if I’m completely honest, but it’s a big number, you write it down, and everyone reads the papers.”

Ben Warner, who set up 10DS, Downing Street’s data science unit, says the LFS can’t accurately measure the number of entrepreneurs arriving in the country, either, making it difficult for ministers to know if decisions — such as a much-hyped tax relief for founders — are actually encouraging people to come to the U.K.

“I’m willing to bet you a hundred quid [we don’t have accurate numbers] at the level that you would need to make thoughtful policy around this,” Warner said. “I am sure there are people who have very, very good knowledge of the economic statistics. But if you’re a minister, you don’t necessarily have access.”

3. Where inflation and GDP sit

These are hugely important measures for a government: Are costs rising for households — and is the British economy growing?

But buried inside this week’s budget assessment by the OBR was a startling admission: There is a one in five chance inflation in 2027 will come in at over 4.5% … and the same chance it will be under 2.5%. They are profoundly different outcomes for the cost of living, a top political issue.

Warner told POLITICO, “The whole thing is mental. We are discussing the uncertainty of the numbers and pretending that these are real.”

Gilbert says there are knock-on effects at play: problems with net migration numbers and workforce data bleed into inflation and GDP projections.

“Understanding migration tells us about the demographics of the country, and when we look at how many people are in work, and that is wildly undercounted, it looks like there are more people who are unemployed, which has a knock-on effect on GDP and inflation,” she explained.

4. The number of kids on free school meals

The number of pupils in England on free school meals is just over 2.2 million, according to government statistics from the start of this year. That’s more than a quarter of all children in the country.

But Gilbert warns that these numbers are likely to be overestimated because schools “game the system” when census data is collected. “So for anyone who has children in school they may have received a text message that says don’t send them to school with a packed lunch — because the schools get funding based on how many children are on school meals,” she said.

5. The number of rough sleepers on the streets

One of Burnham’s flagship promises when he became prime minister was to end homelessness in the U.K., and Wednesday’s budget put £432 million towards precisely that promise.

Yet the way rough sleepers are counted in the U.K. varies according to each council, with some areas relying on an estimate and others on a street count — sending workers out to physically count the number of people on the streets on a particular day in autumn.

Tents line the side of Euston Road in London on Nov. 13, 2025. | Dan Kitwood/Getty Images

Some councils have swapped between methods — which can make it look as though they have dramatically reduced their rough sleepers from one year to the next.

For example, in 2017 Brighton and Hove Council used an estimate of rough sleepers which put that number at 176. The following year, the council used a street count — but this took place on a snowy night, so the number fell to 68.

This made it appear as though the number of people experiencing homelessness had been more than halved.

What Trump can learn from Lula and Netanyahu

28 October 2026 at 20:38

At some point, maybe around the time Joe Biden declared on the debate stage that he “finally beat Medicare,” Washington got the idea that defeating an old man in an election was easy.

Not always.

Just days before an American election viewed by many voters as an opportunity to neuter an unpopular 80-year-old president, voters in Brazil and Israel delivered a vivid reminder that an old man in his country’s highest office usually didn’t get there by accident.

In Brazil, a decisive majority of voters on Sunday returned left-wing President Luiz Inácio Lula da Silva for a fourth term, defying expectations that Brazilians were ready to discard the fiery trade unionist as yesterday’s man. In Israel’s Tuesday election, Prime Minister Benjamin Netanyahu — the longest-serving premier in his country’s history — lost his parliamentary majority but may have thwarted his opponents from electing a viable governing coalition.

Lula, 81, and Netanyahu, 77, have almost nothing in common except their age and political resilience. They have towered over their countries for more than a generation, outfoxed prosecutors and humiliated electoral rivals, enraged and entranced Washington. They have done it with the loyal support of voters on the left and right who view each man in heroic terms, as a tireless champion of their interests and a shield against the most fearsome enemies.

President Donald Trump has, at times, shared those political traits. If he has one more escape act left in him, it would look more like what we’ve just seen in Israel and Brazil than anything in Trump’s second term so far.

Since returning to office in 2025, Trump has failed to deliver policy victories that most voters can feel in their own lives, while shedding some of the most important parts of the political identity that forged his populist base. He ran for president in 2024 pledging to whip inflation and railing against needless foreign wars. Trump’s signature acts this term — passing the One Big Beautiful Bill Act, waging a global trade war, attempting regime change in Iran — have made health care, consumer goods and energy more expensive.

What is his closing message in the midterm election? Trump makes one argument consistently: that Democrats are crazy. But you’d be hard-pressed to find a convincing through line in a series of campaign-trail monologues boasting about the economy, trashing individual Democratic candidates as weirdos and subversives, musing about renaming oceans, defending the Cheesecake Factory and admiring Jon Husted’s rock-hard bod.

Compare this to what voters heard in Brazil and Israel: relentless, ruthless, shameless appeals to the political coalitions that Lula and Netanyahu forged over decades.

In Brazil, Lula tapped into the regional and class-based divisions that have defined his electoral career, while offering a buffet of new economic promises to voters in his base. He hiked welfare payments, promised voters free public transit on weekends and endorsed a shorter workweek. His 45-year-old opponent, Flavio Bolsonaro, stumbled in the final days with a dismissive comment alluding to an accident Lula suffered as a young metalworker — a remark apparently taken by many voters as a gratuitous sneer at the working class.

In Netanyahu’s fight for political survival, the Israeli leader delivered an apocalyptic message aimed at polarizing the electorate to his advantage. He posted an AI-generated image of a nuclear strike on Tel Aviv, branded his challengers as soft on Iran and derided Arab political parties as an enemy within. Israeli and American news outlets have reported that Netanyahu pushed the military for a new wave of attacks on Iran before the election, an escalation that might have reshaped the campaign’s final days.

If Trump had approached the midterms with Lula- or Netanyahu-like focus and vigor, he would probably still be a very unpopular president. But he might be a very unpopular president with a firm grip on the red states that control the Senate, instead of scrambling in October to defend Kansas and Mississippi.

Trump’s populist campaign tactics have been comparatively slapdash and unresponsive to voters’ real needs. He floated giving away $5,000 checks to Americans if Republicans keep control of Congress, only to see lawmakers from his own party pan the idea as a budget buster. He has handed out locally tailored goodies — new funding pledges for a pipeline in Alaska, tariff exemptions as a gift to Maine — that might make a difference on the margins but can’t substitute for a national message on the cost of living.

And Trump has not made a concerted effort to heal the breach within the MAGA base over the war in Iran. He has toggled between Bibi-like warnings about nuclear attacks on Southern California and assurances that the war will end after the November election, all while fuel prices stay painfully high for the people who put him in office.

It may add up to the least effective campaign ever for the man who has overwhelmed American politics for 11 and a half years.

And yet, the midterms are not the end of the story.

Even a broad defeat for Republicans next week would leave Trump with half a term to work with. Two more years to recover his footing, return to political basics, reconnect with his base and fight, fight, fight for relevance and recovery. There is a bag of tricks available to him, if he were to get serious about salvaging his presidency.

For Trump’s opponents, the warning from abroad remains: Beware the old man in a hurry.

Burnham’s budget blasts British baked beans

28 October 2026 at 18:54

LONDON — Andy Burnham’s love affair with beans is well documented.

Asked what items he would stockpile in case of an emergency, the prime minister picked the store-cupboard staple, together with soup and Twiglets.

Now bean producers are screaming betrayal.

As part of a stream of “everyday fixes” aimed at easing the cost of living, Chancellor John Healey said the government would suspend tariffs on more than 100 products, including imported chocolate, marmalade and Burnham’s beloved baked beans.

An analysis of the list — published in full today — reveals that tariffs of 16% will be removed on an array of finished bean products imported from around the world, many of which are also manufactured in the U.K.

While the raw beans used to make products like baked beans are mostly imported, the U.K. boasts a major bean processing industry which food executives fear could now be undermined by exporters such as China and the U.S.

Karen Betts, chief executive of the Food and Drink Federation, said the budget did “nothing to ease the pressures food and drink manufacturers are under.”

“Instead, one of the chancellor’s flagship announcements, removing tariffs from some food and drink products, will have no meaningful impact on consumer prices,” Betts said. “But it will undermine British factories and their workers, grappling with much higher costs, producing the same products.

“The Treasury in particular has persistently failed to recognise the importance of food and drink manufacturing to jobs and prosperity the length and breadth of the U.K.,” Betts added.

Instead of making it easier to import rival products, Betts said the government should be addressing the “acute pressures” the sector is facing, including high energy costs and “overly complex” regulation.

A spokesperson for Princes Group, which produces Branston Baked Beans in the U.K., said removing tariffs on imported finished baked beans was “unlikely to have a meaningful impact on prices, particularly as there are currently no tariffs on the imported haricot beans used by U.K. manufacturers and no tariffs on EU imports.” 

“We believe measures that help address the higher costs of manufacturing food in the UK, particularly energy costs, would have a greater impact for both consumers and British businesses.”

According to the government, the move, together with existing tariff suspensions announced earlier this year, will reduce consumer costs by between £245 million and £595 million a year, saving households up to £21 on their food shop annually.

In response to a consultation on the changes, the government said it had taken the decision to exclude several products from the initial list “due to concerns about the impact on domestic production, developing countries, international considerations and other government policies.”

“The government recognises that for some remaining products, there may be some limited impacts on domestic producers of goods which will be able to be imported tariff-free for the specified period. However, the government considers the benefits of this to consumers, through reduced costs, outweigh those risks.”

The U.K. government did not respond to a request for comment.

UK budget 2026: What to watch for as Healey vows ‘breathing space’ for Brits

27 October 2026 at 19:18

LONDON — John Healey wants to keep his debut budget low-key — but he’s also got to show the British public his boss really does feel their pain.

The chancellor delivers the first financial statement of the Andy Burnham era Wednesday. The pitch? “Breathing space for today” mixed with some “fresh hope for the future.”

But with war in Iran driving up costs worldwide, government borrowing at its highest level in a year, and businesses warning they’re taxed to the max, Healey is up against it.

Here’s how POLITICO’s team of reporters will be poring over the big fiscal moment, unveiled at 12.30 p.m. U.K. time Wednesday.

U.K. Political Editor Dan Bloom

I’ll flip straight to the big table two-thirds of the way through the ‘red book,’ where Treasury officials list the total tax rises and spending cuts, and then the “headroom” against Healey’s fiscal rules in the executive summary.

The briefing suggests these numbers will be smaller than the £26 billion in tax rises and £23.6 billion in headroom former Chancellor Rachel Reeves notched up in March this year.

The Treasury has turned this into its comms strategy, pointing to “everyday fixes” and non-tax measures like scrapping business red tape. But these numbers will also show how Donald Trump’s war in Iran has reined in Burnham’s ambitions.

And they are indicative of something else — the budget just isn’t the main event this time. In the next seven weeks or so we’re expecting [former minister] Alan Milburn’s review of the benefit system, a U.K.-EU summit, a “10-year plan” and a white paper on “rewiring the state.”

Then next year is the spending review. That’s when the really hard choices will come — and the budget will give us a sign of how hard, since it will map out a path for departmental spending over the next few years.

U.K. Political Correspondent Sam Blewett

Andy Burnham’s team has been speaking a lot about “everyday fixes” — cheapo policies that can rectify real-life niggles. 

Headphone dodgers? You’re fined. Being ripped off by parking fines? We’ve got your backs. Balking at the cost of the supermarket shop? Gone are the tariffs on your gherkins.

That will buy the government a fair amount of goodwill, building a sense that the government isn’t entirely a useless beast being buffeted by global horror shows. But it’ll only go so far.

Burnham departs Downing Street in London for prime minister’s questions on Oct. 21, 2026. | Leon Neal/Getty Images

Healey is under pressure to show bold action on what really matters too — actual interventions that bring down the cost of living. We know already there will be support for household energy bills, a fuel duty freeze, support for pensioners and a hike to the minimum wage. All eyes will be on whether Healey has any more surprises on this front.

As costly as any support is for the exchequer, will it all pale in comparison to the effects of the Strait of Hormuz-sealing war with Iran? This is a self-declared “cost of living government” after all.

First, I’ll scour watchdog the Office for Budget Responsibility’s forecasts to see where the semi-official number crunchers reckon real household disposable income is headed. Then the analysts at the Institute for Fiscal Studies and the Resolution Foundation will provide more insight.

After that, the voices that really matter will be those sitting down to ever-costlier dinner, nursing pricy pints and rolling their eyes at the petrol pumps. Will this budget give Brits enough reason to believe Burnham’s new government is a force for good, trying to ease the pain? Or will they deem the new-look administration just the same old ineffective bureaucrats who need sweeping away in favor of a more radical response?

Senior Foreign Correspondent Esther Webber and U.K. Defense Reporter Mason Boycott-Owen

The number one thing we’ll be looking out for in today’s budget is how exactly Healey — who quit as defense secretary in the dying days of Keir Starmer’s government over exactly this issue — tries to demonstrate he is raising defense spending against a tough backdrop.

The chancellor has tried to manage expectations for the Ministry of Defence at the budget pretty closely, initially stating that he would only seek to cover a £4.7 billion pound shortfall in its already-unveiled Defence Investment Plan.

In recent weeks, however, the Treasury has suggested he could do more to show the U.K. is moving towards spending 3% of GDP on defense, something Healey sees as an important marker on the way to meeting the NATO target of 3.5%.

Media reports leading up to Wednesday suggest an increase will come from money funneled into the British Business Bank and National Wealth Fund.

But could he have something else in his back pocket? Healey is well aware of the potential for awkward questions about his commitment to follow through on the promises he made just four months ago that he said were crucial to U.K. security, now that he’s in charge of the money.

Financial Services Reporter Eleanor Myers

A hike in bank taxes is all but inevitable in today’s budget – but the City of London will be nervously watching how high the increase goes. Along with the lenders, I’ll be looking out for how much taxes are raised, whether any changes are temporary, and whether the City — Britain’s financial powerhouse — gets anything in return.

The easiest move for Healey is to increase the surcharge banks pay on top of corporation tax. That currently stands at 3%, after Conservative Chancellor Jeremy Hunt reduced it from 8% in 2023 to account for higher corporation taxes. Healey could simply reverse the surcharge to 8%, which would be unpopular with the banks and might not even go far enough for campaigners: the Trades Union Congress has called for an increase to 16%.

I’ll also be closely watching for how the bond markets react to the first budget under Burnham. Despite the prime minister describing Britain as “in hock” to the bond markets before he took office, odds are on for a “boring” budget, without any huge spending commitments that might spike borrowing costs.

People view the City of London from Parliament Hill on Jan. 3, 2025. | Benjamin Cremel/AFP via Getty Images

But any cautious policy changes designed to placate the bond market will have to be tempered alongside demands from the Labour Party. It’s a tricky balance, and Labour MPs showed under Keir Starmer that they were willing to rebel when it mattered.

Senior U.K. Energy Correspondent Charlie Cooper

A sharp, painful spike in energy bills is coming for Britain; at this budget we’ll find out how much power Healey and Burnham have to help.

The latest energy price cap forecasts are brutal. Energy firms expect average, annual household bills to rise by more than £450 in January. They could go even higher in April. Why? Mainly because of gas. The fallout from the U.S.-Israeli war with Iran has sent wholesale prices soaring to levels not seen since December 2022.

Healey knows how bleak things look, but he may not have the fiscal firepower to offer much help. Burnham has hinted at removing gas standing charges from bills, which could save an average household a modest £27, according to one estimate. Meanwhile, payments to around 6 million low-income households — the Warm Homes Discount — are likely to get a top-up of between £100 and £150.

Businesses, meanwhile, could get details of a 10-year plan to bring their energy costs into line with European competitors, according to two people familiar with budget preparations.

But with the cost of living and cost of doing business set to rise so high, will that be it?

There’s “strong awareness” inside government “of how bad it will get,” said one senior government official. Unfortunately, they added, there are “not the pockets deep enough to do all the things we might like to do.”

Elsewhere, we’ll be watching closely to see whether net zero schemes — like the rollout of electric heat pumps — could face cuts to cover shortfalls in defense spending. 

Technology Reporter Joseph Bambridge

Healey put AI and innovation at the heart of his growth plan in a pre-budget speech back in September.

In that vein, the government has trailed a £600 million spending package to protect the U.K. from AI risks while growing its own share of the sector, calling it a “distinctively British” approach to mitigating risks from the technology while capturing the benefits.

The question now is whether more measures to support the U.K.’s tech and AI sector will come on Wednesday, with trade groups calling for bold moves to lower energy costs, tackle energy and planning delays, and help firms invest in AI and upskill workers.

Startups are also hoping for tax relief and further reforms to regulation and procurement rules. A relief for founders who re-invest their earnings in the U.K. has been a particular demand from the startup community, which has already bagged a win after Healey ruled out raising capital gains tax.

Trade groups are calling for bold moves to lower energy costs, tackle energy and planning delays, and help firms invest in AI and upskill workers. | Henry Nicholls/AFP via Getty Images

AI is also likely to play a significant role in the government’s plans to make Whitehall more efficient, as it did under Reeves.

The sector is also closely watching how the chancellor plans to meet his defense spending targets, in the hopes that drone makers and military tech firms might benefit from the uplift.

Trade Reporter Caroline Hug

I’m looking out for the chancellor’s VAT crackdown on foreign sellers, who register as U.K. based companies to avoid paying the tax. Healey is expected to make online marketplaces like Amazon, eBay and Temu responsible for collecting tax owed by all retailers.

We’re also waiting to see whether the government has more information on its de minimis crackdown, including whether it will introduce a handling fee for small packages below £135. The EU already has one in place.

Finally, we’ll be looking out for any more detail on the government’s suspension of tariffs on more than 100 food, drink, fuel and fertilizer products.


UK announces further tariff suspensions on food, drink and fuel

26 October 2026 at 23:30

LONDON — The U.K. government is removing import tariffs on more than 100 products, including food, drink and fuel, to ease the cost of living.

In a pre-budget announcement on Monday night, the Treasury said it would suspend tariffs on a number of popular food items, including baked beans, chocolate and gherkins, as well as fertilizer and kerosene heating oil.

The announcement, which follows a consultation earlier this year, comes after the government said last week that it would suspend import tariffs on over 250 goods that were due to expire on Dec. 31 until Dec. 2028.

Collectively, the government said the tariff suspensions would reduce consumer costs by around £245 million to £595 million a year.

“Today’s everyday fixes are just a small part of what we are doing to give families a bit of breathing space,” Chancellor John Healey said.

“Conflict in the Middle East and Europe is hitting families here at home through higher everyday costs. We can’t control global events, but we can act where we can make a difference.”

US inequality is getting worse in ways you might not expect

25 October 2026 at 11:00

The buzzword of the 2026 U.S. midterm elections may be affordability, but growing anger over inequality is behind the sentiment.

A Pew Research survey released in October 2026 found that roughly 6 in 10 Americans – including 4 in 10 Republicans – believe there’s too much inequality in the U.S. And a growing share from both major political parties state that the economy needs to be fundamentally rebuilt to address this.

This sentiment has, however, been difficult to convert into political results. Public support for California’s proposed wealth tax on billionaires has been waning ahead of the midterms, for example, and in 2025, Republicans passed President Donald Trump’s sweeping legislation that included tax cuts for the wealthy while cutting safety net programs.

I’m an economist who has been studying inequality for about two decades. My research confirms the trend of rising inequality since 1980, driven by the wealthiest pulling away not just from the middle class, but also from the “merely wealthy.” Overall, recent research underscores how policy choices – including taxation and public spending – enabled this 40-year rise in inequality.

Some policies enacted more recently appear to be accelerating this trend. An analysis by the Institute on Taxation and Economic Policy, a nonpartisan research organization, concluded that policy changes since the start of 2025 have imposed higher costs on everyone except the top 1%.

Inequality by the numbers

Recent federal data shows that wealth inequality continues to grow. The top 1% saw their share of wealth increase from 31.7% to 32.5% just between the first and second quarters of 2026, a jump of over $8.5 trillion. That caps a steady climb from 30.9% in the last quarter of 2024 – and from 27.4% in 1999.

These recent gains come at the expense of the middle class – the 40% between the bottom half and the top 10% – who hold only 28.8% of all wealth despite being a group that’s 40 times larger than the top 1%. And the middle’s share is shrinking, down from 32.9% in 1999 and 30.2% at the end of 2024, according to the data.

But the ultra-wealthy, those in the top 0.1%, are pulling away even from the rest of the rich, the data shows. This tiny elite owns 15% of all wealth – almost half of all the wealth of the top 1%. Both the top 0.1% and the next 0.9% saw their share of wealth increase, but the top 0.1% captured two-thirds of the gains between the first and second quarters of 2026.


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Even within the highest echelons of wealth concentration, these two groups are on different trajectories.

Crucially, the wealth of the top 0.1% is disproportionately boosted by corporate profits, which are up sharply overall. The top 0.1% reap the most from this growth because their portfolios’ value has soared on the promise of future increased profitability that’s driving up stock prices – especially thanks to the tech and artificial intelligence boom.

How taxes play a role

Since President Ronald Reagan’s tax cuts in the 1980s, the U.S. tax code has become less and less progressive, often through policy changes supported by both Republicans and Democrats.

The common argument for tax cuts is that they stimulate growth, but a growing body of research – including international studies – doesn’t back that up. A 2025 Brookings report notes that U.S. tax policy has gone through massive changes throughout history without any discernible effect on growth.

Nonetheless, congressional Republicans used their narrow majorities in 2025 to pass Trump’s sweeping policy and tax bill, which included provisions making most of his 2017 tax cuts permanent. Those included the historically low top-income tax rate and the lowest corporate tax rate since 1940.

It’s also important to understand that the top 0.1% have a different tax exposure from the rest of the top 1% because the composition of their wealth is different. They own as much in stocks and mutual funds as the next 0.9%, a group that is nine times larger, and those holdings are where most of their recent gains came from.

Furthermore, roughly three-quarters of the top 0.1%’s wealth portfolio consists of corporate and business ownership, allowing them to benefit from the Trump tax cuts in multiple ways – including lower tax rates and more opportunities to defer or avoid tax liability. Their massive holdings of stock mean that they can borrow against it for cash, usually tax-free, rather than having to sell shares.

By contrast, below that elite, real estate is a much more important component of wealth, while corporate equity is a smaller and smaller share. For the middle class, nearly two-thirds of wealth is held in their homes and retirement savings, while corporate and business ownership accounts for only 15%.

The new drivers of inequality

Much of the inequality debate focuses on the role that taxation has played. But other recent policy changes have shifted different kinds of costs on to low- and middle-income earners, while leaving the wealthy relatively unscathed.

One example is a provision in Trump’s 2025 legislation that allowed federal healthcare subsidies through the Affordable Car Act to lapse. Insurers and analysts expect the number of people signing up for coverage through ACA plans to drop by about 5 million due to higher premiums and face much higher out-of-pocket costs.

The spike in energy costs, including gasoline, diesel and heating oil, is another case in point. They disproportionately affect low- and middle-income consumers but barely dent the budgets of the wealthy – while boosting the profits of companies engaged to the extraction, processing and transportation of oil. This divergence has been especially pronounced since the start of the conflict with Iran in February 2026, which has pushed up the global price of oil.

Then there are tariffs, which are fundamentally a consumption tax on imports. Economists at the New York Federal Reserve have found that these levies have inflicted a heavy hit on many common consumer goods. They estimated that prices for these items, which make up a much larger share of household budgets among the nonwealthy, would have fallen on average by 1% over the year without the tariffs. Instead, they have risen by 2.9%.

This acceleration in the redistribution of wealth from the middle class to the very top, in short, has an array of drivers. But they’re not inexorable forces of history. As economist Thomas Piketty put it in “A Brief History of Equality,” published in 2022: “Inequality is first of all a social, historical, and political construction.”

Markus Schneider, Associate Professor of Economics, University of Denver

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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‘Andy Time’: Why Burnham’s budget isn’t going to deliver a revolution

23 October 2026 at 04:00

LONDON — When Prime Minister Andy Burnham arrived a few minutes late to a meeting with regional mayors on Thursday, his Cabinet ally Angela Rayner had a name for it. She joked they were on “Andy Time.”

The rest of Britain is beginning to learn what that feels like.

Burnham entered 10 Downing Street three months ago promising a “new economic model.” However, the prime minister’s first budget next Wednesday will ask voters to wait a bit longer for it.

John Healey, Burnham’s top finance minister, is expected to announce cuts to business regulation, new steps to move power out of Whitehall and targeted cost-of-living help as energy bills surge due to the wars in Iran and Ukraine.

But while London’s banking sector is resigned to a tax rise, Healey is broadly not expected to completely overhaul tax regimes that many in Burnham’s center-left Labour Party have long seen as unfair. These include business rates, which treat high street shops more harshly than out-of-town delivery warehouses; capital gains tax, which charges less on income from assets than from work; and council tax on homes, which is based on valuations from 1991. 

Healey and his allies are already rolling out a pitch for lower-key changes to tax and spending than his predecessor, Rachel Reeves, insisting budgets are about more than their bottom-line “scorecard.” They point instead to thinning the “sludge” of business bureaucracy and helping “bloody-minded” entrepreneurs.

The reason behind this is about much more than war dragging on the British economy and keeping inflation high. Many radical reforms just aren’t ready yet. 

Next Wednesday will mark just 100 days since Burnham took office, after a whirlwind special election that ended the Greater Manchester mayor’s decade-long absence from parliament.

Burnham’s much-touted “10-year plan” to rewire Britain’s public realm is far from finished; its publication date is edging closer to Christmas. And many granular details of his plan for reform — including higher defense spending, welfare reforms and ownership of the water sector — will only come at a multi-year spending review some time in 2027. Healey is still trying to decide when that will happen.

POLITICO spoke to 22 current and former government officials, MPs and people who speak regularly to Downing Street to map out Burnham and Healey’s strategy, most of whom were granted anonymity to speak frankly. 

Several offered the view that Healey’s budget was designed to act as a stepping stone toward the 10-year plan and spending review, while not spooking the bond markets — which Burnham complained Britain was “in hock to” last year. That is despite Britain inching closer to a general election that the prime minister must call by summer 2029.

“They want it to be a non-event,” one person who speaks regularly to both 10 and 11 Downing Street said of the budget. 

Expectation management

This narrative has already left Healey’s allies bristling.

People are “accusing us of not making decisions and kicking the can down the road when actually this budget is incredibly difficult,” said one government official. This person added: “This is the first budget of this country that will have come to the House of Commons for scrutiny while the war in the Middle East is raging and an illegal invasion of Ukraine continues by Russia. The idea that this is by any means small is quite difficult to stomach.”

A second U.K. government official argued the budget would be “as ambitious as possible within the political context.” But a third government official said they believed the budget would be more “steady as she goes” than finished solutions to Britain’s problems.

Ruth Curtice, a former Treasury official who is now chief executive of the Resolution Foundation, a think tank focused on living standards, added: “In some ways it’s quite surprising to have such a small budget, given we have a new prime minister and chancellor and quite a lot has happened in the world since the last one.”

The opposition Conservative Party is preparing to seize on this “deferral budget” theme. Tory strategists are ready to paint it as a cowardly act from an administration they claim prefers sweeping vision to hard decisions. “Why act tomorrow when you can act today?” said one shadow cabinet minister. “Have some balls!”

Cameron Brown, a former Tory special adviser in the Treasury, was more sympathetic. “There’s no need to crystallize any kind of savings or cuts now,” when the spending review is looming anyway, he argued. Brown predicted a “tight and concise” but “intellectually coherent” package: “[Healey] will have some buffer at the end, a nice little cost of living package, Labour MPs will be happy, he’ll target the bad people — gamblers and banks — and he’ll push things down the road a bit.”

A Labour official voiced concern that a cautious budget could lose the goodwill Burnham has built with the public — as happened to his predecessor Keir Starmer, who promised “change” in his 2024 manifesto.

And Reeves’ former Political Secretary Matt Pound urged “caution” on deferring too many decisions to the 2027 spending review. “The truth is that they could end up putting a monumental amount of pressure on that spending review,” he told POLITICO’s Westminster Insider podcast in an interview released Friday. “There are already a lot of pressures they will need to fund.”

Hard to get

“Energy” will be the key thread linking Healey’s messages for the budget, a fourth U.K. government official said — from “breathing space” help with bills to building a more resilient infrastructure network. 

There will also be a “fiscal devolution roadmap” on budget day, setting out terms of how regional mayors can get more power and money and drawn up partly by Burnham’s new Manchester outpost, No. 10 North. Legislation to let them impose tourist taxes will be published in the coming weeks. And officials have talked behind the scenes about procurement and boosting Britain’s heavy industries; the budget needs to find almost £5 billion to plug a hole in a defense investment plan unveiled under Starmer.

Targeted cost-of-living measures appear likely to include scrapping “standing charges” on domestic gas bills, which cost the average household just over £100 a year. Burnham said Wednesday that he had asked Healey to look at the issue — though any help could be eclipsed by a predicted £276 rise in domestic bills this January.

The other message will be that the Treasury can do big, consequential things without raising taxes. Healey will make “a political argument that actually there are other types of budgets that you can have,” said the first government official quoted above, “busting through some of that sludge and ripping up a lot of that red tape.” Cash-strapped chancellors have reached for regulatory reform before, with mixed success.

MPs are looking closely at cost-of-living support. One backbencher in an affluent seat said any help had to be significant, because even their well-off constituents were struggling to take the holidays they wanted. Defense, by contrast, barely comes up on the doorstep: “There are hardly any votes in it, but it’s just something we have to do.”

There has been heavy engagement with Labour MPs, whose detachment from No. 10 helped force Starmer out in July. Treasury ministers Torsten Bell and James Murray are among those engaging while Chief Secretary to the Treasury Emma Reynolds handles tricky negotiations with Cabinet ministers, alongside No. 10 chief of staff James Purnell.

Healey has negotiated with Cabinet ministers and spoken to union leaders, banks and MPs — though not lobbyists. “No one can get to Healey,” said one. “It’s very smart. Let him do his job.”

Markets will look at the “headroom” — a snapshot of the buffer between Healey’s five-year plans and his self-imposed fiscal rules. The fourth official quoted above said Treasury officials have considered having only a small “headroom” buffer compared to the £21.7 billion left by Reeves, as it could be increased in future years. 

Reeves’ former political secretary, Pound, warned against this, telling Westminster Insider: “If the headroom is so low that it’s clear that they can’t clear the defense investment plan, for example, or the wider defense pressures, then I think that that could then start to have a bit of a knock-on effect that would be quite negative.”

However, headroom is merely a snapshot, often out of date by the time it is published. It is likely to be buffeted further by any events in the Middle East arising from the U.S. midterm results on Nov. 3.

And as with all budget briefings, some opposition politicians believe there is an element of expectation management. Conservatives suspect that headroom will come out higher than predicted — which Healey can paint as a victory.

Time is ticking

Then it’ll all be over — and Westminster will immediately start preparing for the next step.

A date was never confirmed for Burnham’s 10-year plan (beyond the latter part of 2026), but some officials believe it has already slipped slightly from the original intention. 

Downing Street and Cabinet Office officials remain determined to publish it in December, though some in Whitehall worry it might be delayed. “Knowing the things on the horizon and how big they are, I genuinely don’t see how you could make space for it,” said one official in another department.

While some Cabinet Office civil servants were first tasked to work on the plan in August, others only joined the team this month as it has grown, according to one person with knowledge of the staffing. Burnham’s ally Louise Haigh, the first secretary of state, is leading three “task forces” ahead of the plan on the cost of living, public control of utilities and the renewal of run-down high streets.

The 10-year plan won’t have all the answers, though. POLITICO reported this week that while it will contain a high-level vision, priorities and principles for the water industry’s future, much of the granular detail of how future ownership models will work is expected in the 2027 spending review. 

One Labour figure who has spoken to the government about the water industry said they believed ministers will choose “different horses for different courses” — an array of ownership models for various firms depending on how stricken they are. A second Labour figure talking to the government said: “You can’t do this in two years.”

The Labour official quoted earlier in this story said they feared the 10-year plan would be a let-down. “These big plans governments are always throwing forward to have a habit of turning out quite thin,” this person said. “At which point we all realize there was never a big plan all along.”

There are other plans to come, including an imminent plan to reform the welfare system by the former Labour Cabinet minister Alan Milburn, and a white paper in December that is due to set out a timetable, legislation and borders for plans to move more power outside Whitehall.

Devolution is one area where Burnham has moved quickly, pleasing many regional mayors. But some officials in the union movement fear that Burnham’s initial focus on devolution risks taking up bandwidth that could have been spent on other issues. A fifth government official added that they were worried all the conversations between different public bodies could crowd out the push for growth. They said: “I sit on Teams calls that are 30 people, all from different arms of the state. Sometimes I think — ‘You do know none of us are making this money?’”

‘Rubber hits the road’

Then there is the 2027 spending review. 

It will set out how the state allocates money across its arms for the next three to five years — turning these plans and the difficult trade-offs they require into reality.

The Treasury has previously confirmed it will set out the entire pathway to lift U.K. defense spending from 2.6% of GDP this year to 3.5% by 2035. It is also likely to address questions about Burnham’s pledge to create a state-funded national service for social care, funded by reducing the rise in the state pension.

There will be months of to-and-fro between Whitehall departments and a Treasury looking for cuts, efficiency savings or both to balance the books.

“The spending review is when the rubber hits the road,” said the fifth government official quoted above. “It’s already beginning. Departments are beginning to work out sacrificial lambs to offer up.”

Three people with knowledge of the conversations said Healey still hasn’t decided when in 2027 he wants to hold the spending review, though it is broadly expected no earlier than the summer. He has been privately musing with allies about the options.

Curtice said Healey’s options are essentially to hold a small fiscal event followed by a spending review next summer, or to hold a spending review with an annual budget simultaneously in fall 2027.

She added: “The big question we’ve posed for this budget — that we’re not necessarily expecting an answer to — is what is the spending total for the spending review that we know needs to come next year? Until we know the answer to that question, we don’t really know whether we can believe the path of tax and borrowing that is set out in the budget.”

Senior Conservatives argue the spending review will be so difficult that Burnham could call a snap election before it is due. He has insisted he will only force it in 2029.

Until then, much of the spending review work will fall to Reynolds. Her predecessor Darren Jones argued the existence of the 10-year plan and spending review meant it would be sensible for next week’s budget to be a little low-octane.

“The prime minister’s been clear that the 10-year plan is going to be the political strategy for the government,” Jones told POLITICO. “So I think it makes sense to do all of your public spending decisions after the publication of the 10-year plan. It would be odd if this October’s budget tried to deal with all the big trade-offs on defense, mayoral budgets, or more ownership of public utilities.

“So I think in many ways, actually the 10-year plan is more interesting this autumn in terms of the political strategy of the government. 

“And then 2027 will be the year in which ministers will have to start thinking about how to implement that strategy operationally, including in public spending decisions.”

Much of that will fall to Burnham himself.

Crowdsourcing

Rayner’s joke about “Andy Time” was not without cause.

Unlike Starmer, Burnham gets into the weeds of an issue even if it derails his schedule. The prime minister chews things over with colleagues so much that some have joked they could just remove his Downing Street desk, said the third government official quoted above. By contrast, Starmer used to retreat to No. 10’s first-floor study to read away from the hubbub.

Burnham’s approach can lead to Downing Street making decisions late in the day. One former No. 10 official said: “A Prime Minister needs to do 80 things in a day and if that goes to 60, then you end up massively behind.”

The flipside is that ministers and officials know what their leader actually wants from them — even if they are left to work out the detail.

“It’s like we’ve woken up from a political coma,” one backbench MP enthused. “I know what the prime minister thinks,” added the third government official quoted above.

Aides used to complain that Starmer, by contrast, tried to be efficient but would end meetings without setting a clear political direction. “Keir was always a stickler for time, even if the issue wasn’t resolved,” as one former colleague put it.

Kemi Badenoch, the Conservative leader, suggested this week that Burnham was failing to flesh out the detail behind his vision. “Talking about it is not making a decision,” she said of social care reform at prime minister’s questions. Burnham was visibly frustrated—insisting he was making the long-term decisions other politicians duck.

And for the prime minister’s allies and most of his MPs, the vibes remain good. The No. 10 environment is more relaxed and open. Junior ministers, in meetings over bacon sandwiches, feel they can share their views and be heard.

“There’s definitely still a buzz,” said the person who talks regularly to Downing Street, who was quoted earlier in this story. “But you don’t want to spend too much time buzzing while Rome burns. There’s a reality check that I feel is going to come imminently.”

Patrick Baker, Sascha O’Sullivan, Esther Webber and Emilio Casalicchio contributed reporting.

Trucker blockades in southern Italy ramp up pressure on Meloni

22 October 2026 at 18:52

ROME — Roadblocks by truckers in southern Italy are exposing the limits of Prime Minister Giorgia Meloni’s hardline approach toward protests, as she concedes she will have to take a carrot-and-stick approach to demonstrators struggling with soaring fuel costs.

The demonstrations across the south are fast spiraling into a full-blown economic crisis. Truck drivers and farmers protesting soaring diesel bills have blocked highways, ports and distribution centers this week, leaving supermarket shelves empty and petrol pumps dry. Airports in the south are also suffering from fuel shortages.

After a cabinet meeting on Thursday, the right-wing Meloni vowed to use a security decree to clear the roadblocks, but also pledged to give financial relief to farmers and fishermen crippled by the price of diesel.

Regarding the decree, she said her government would not be “blackmailed by those who use violence as an instrument of pressure.” But she cushioned that blow by acknowledging that financial relief measures were needed to offer “immediate responses, especially to workers, to people who are in difficulty, to families.”

With elections expected in spring next year, the truckers’ protests threaten to shift the political debate from immigration and crime to whether Italians can afford to keep their businesses running. 

Gaetano Amato, a lawmaker from Naples for the populist left 5Star Movement, accused the government of offering security measures instead of answers to the economic grievances driving the protests.

“The government has done nothing and is continuing to do nothing, because it is basing everything on security decrees,” he told POLITICO. 

Stefano Orlacchio, president of the opposition center-left Democratic Party’s youth wing in the southern region of Campania, also slammed the government’s response as “an anti-southern attitude.”

“The protests in the south aren’t being taken into consideration at all,” he told POLITICO.

Diesel squeeze

At the heart of the revolt is a squeeze that truckers say they can no longer absorb. Diesel prices in Italy have risen by about a third since the U.S. and Israeli strikes on Iran began, and the cost of a long haul journey like Naples to Milan has climbed with them. 

Pasquale, a truck driver with a Campania-based company, who asked POLITICO to withhold his surname for fear of retaliation, said a trip’s profit had now shrunk sharply once fuel, tolls and wages were covered, and that the extra cost was working its way down the supply chain to supermarket shelves. 

Far-right Transport Minister Matteo Salvini of the League party, who posed in a truck cab a few months ago, should “come spend a week with me and we’ll see how comfortable it is,” Pasquale quipped.

While a cap on fuel prices exists on paper, he added petrol stations had ignored it “in these days of chaos.”

Beyond fuel prices, Pasquale zeroed in on EU environmental rules that Italian businesses struggle to comply with, even as cheaper foreign produce continues to reach supermarket shelves. “How can you face something like that?” he asked.

The Brussels-based International Road Transport Union has also appealed directly to European Commission President Ursula von der Leyen for help. 

In a letter sent on Thursday and seen by POLITICO, the group and its national member associations said they did not support the blockades but warned that soaring diesel prices were pushing operators to the brink, calling for extended EU state aid and tougher rules on late payments from customers.

The blockades hit hundreds of supermarkets and dozens of distribution centers, according to retailers’ association Federdistribuzione. Fresh fruit, meat and fish ran out within days, followed by other food products, leaving some shops completely empty.

Carlo Alberto Buttarelli, the association’s president, put the damage at “tens of millions of euros,” with fresh food spoiling in trucks and warehouses. Supplies were beginning to resume in Sicily and Calabria on Thursday, but disruption remained in Campania. 

No room to maneuver

Meloni has limited resources to offer relief. Italy remains subject to EU deficit proceedings, constraining Rome’s room for additional spending, while the international instability driving fuel prices higher lies largely beyond her control.

Amato dismissed the announced support from the cabinet meeting on Thursday as money that had already been promised.

While the government’s reaction to last weekend’s northern protests, which were hijacked by masked gangs that looted shops and set fires, was to link the unrest to immigration and deploy troops, the southern unrest is harder for Meloni to handle because it demands concrete economic relief, said Marco Valbruzzi, a researcher at the University of Naples Federico II.

Frustrated voters could turn to the 5Star Movement, which has previously channeled economic discontent in the south, or abstain from voting altogether. 

The protests could also weaken the appeal of early elections expected in April or May next year. A winter of sustained protests would give Meloni a reason to wait until autumn 2027, hoping for an ease in international instability and improved fiscal flexibility. 

If economic grievances dominate the campaign, “she is playing an electoral game on a field that she cannot control,” Valbruzzi said.

Mobilisations en Italie, Espagne, Portugal, Belgique, Albanie, Allemagne : l’exemple français est-il en train de faire tache d’huile?

21 October 2026 at 16:47

Des mobilisations sociales, parfois violentes, viennent d’éclater dans plusieurs pays voisins. Certaines se revendiquent explicitement du mouvement lycéen français, comme c’est le cas en Italie du nord, d’autres sont liées à des problèmes de logement ou de coût de la vie. Assiste-t-on à une contagion de la colère ? Est-elle alimentée par des ingérences étrangères visant à affaiblir l’Europe ? Marcelo en discute avec Marion et Giorgio. Des questions? Des commentaires? Ecrivez-nous sur Whatsapp au +32 49 07 69 41

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Europe’s conservatives have 2 new targets in their campaign to weaken EU climate laws

20 October 2026 at 21:15

BRUSSELS — Center-right lawmakers in the European Parliament are intensifying efforts to weaken two EU climate laws, a campaign that could undermine the bloc’s push to cut planet-warming emissions.

The European People’s Party, the largest group in Parliament, will this week push for a three-year delay to rules on emissions of the climate pollutant methane, a change the fossil fuel sector and the U.S. government have lobbied hard for.

A growing number of EPP lawmakers now also want to delay — or scrap altogether — a new carbon price on transport and heating, known as ETS2, according to a document obtained by POLITICO. That puts them in line with several EU member countries, including Italy and Poland, which pushed for a delay to the new carbon price at a meeting of EU leaders in Brussels last week.

Both policies are central pillars in the EU’s effort to reduce its planet-warming emissions. A successful repeal of ETS2 in particular would be a blow to EU climate goals, as it covers around 40% of the bloc’s greenhouse gas emissions.

But it would also be a major victory for conservative and pro-business lawmakers and national governments that have been campaigning for less stringent EU climate laws in the name of industrial competitiveness.

Ax the tax

The EU Emissions Trading System, launched in 2005, requires power plants and factories in sectors like steel, chemicals and cement to acquire carbon allowances for every ton of carbon they emit. The total number of allowances is reduced each year, eventually reaching zero.

ETS2 applies the same idea to suppliers of fuel for transport and heating from 2028.

The cap-and-trade scheme will be a powerful tool for reducing emissions from these highly polluting activities. But many policymakers worry it will raise the cost of gasoline, diesel and natural gas and add to voters’ cost-of-living pressures.

Nine national delegations of the EPP — the Polish, Spanish, Italian, French, Romanian, Croatian, Slovenian, Slovak and Estonian — are now calling for ETS2 to be repealed, according to draft amendments obtained by POLITICO. “ETS2 should be deleted,” the amendment, sponsored by Polish EPP lawmaker Adam Jarubas, argues.

Another amendment in the same draft, backed by 10 national delegations, takes a softer approach and asks for ETS2 to be “postponed until 2031.”

EU legislators are already reviewing a proposed reform of the EU’s original Emissions Trading System, which makes amending ETS2 — which is contained in the same legislation as the first ETS — much simpler.

No majority in Parliament or among member countries currently supports delaying or repealing ETS2, but a string of elections next year raises the likelihood that more right-wing governments will be in power before ETS2 comes into force, adding momentum to the push to scrap or delay it.

Methane delay

Last week, the European Commission, the EU’s executive arm, proposed a year-long delay to rules that will require oil and gas importers to monitor, report, and eventually reduce emissions of the potent greenhouse gas.

The delay — which affects monitoring requirements and later obligations on methane intensity — followed months of lobbying from industry and member countries, which claimed the Commission provided insufficient clarity on how to comply. The U.S. government also pushed to delay the rules, which are currently due to come into force on Jan. 1, 2027.

But the proposed delay requires support from both governments and lawmakers, some of whom want to go well beyond the Commission’s revised timeline.

On Tuesday, European lawmakers voted to fast-track parliamentary discussions around the Commission’s proposed delay, laying the groundwork for a fresh vote Thursday. At that vote, the EPP is expected to campaign for a three-year delay of the rules, as well as possible further adjustments, according to one lawmaker familiar with the matter.

Dimitris Tsiodras, a European lawmaker, echoed industry concerns that compliance risks could deter cargoes from Europe if left unaddressed. “We cannot afford to put our energy supplies at further risk,” he told lawmakers.

Right-wingers against the rules will still face opposition from left-leaning lawmakers. Jutta Paulus, a German Greens lawmaker who steered the parliament’s position on the legislation in 2024, announced on Tuesday that her party would table an amendment to reject the delay altogether.

However, the EPP could reach an outright majority if it joined with right-wing and far-right groups.

The party is already exploring a deal with those groups if the Socialists and Democrats — the Parliament’s second-largest group — don’t cooperate with its push for a longer postponement, according to two people familiar with the matter. S&D lawmakers opposed extending the delay earlier this month, but a group spokesperson said the party has yet to adopt a formal position in negotiations.

A parliamentary push for a three-year delay could also invigorate member countries’ efforts to delay the rules further.

Member countries are currently divided, though many, including heavyweight France, support the one-year delay proposed by Brussels, according to two diplomats briefed on the matter.

Poland, Slovakia and Czechia, meanwhile, would prefer a three-year delay, but their luck in campaigning for an extension may depend on where Germany lands, the people said. Berlin is currently split between its socialist-controlled environment ministry and its center-right-controlled energy ministry, leaving countries uncertain whether they can formulate a joint position tomorrow, they added.

Italy is also trying to decide whether to opt for one year or more, two diplomats familiar with the matter said.

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