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Rachel Reeves is set to deliver her spring statement on Tuesday, as she faces pressure to keep energy and fuel prices down amid Donald Trump’s Iran war.
As the conflict in the Middle East threatens Gulf refineries and shipping, economists have warned that the chancellor’s plan to tackle inflation will be threatened.
This year’s spring statement will give the latest update from the Office for Budget Responsibility (OBR), but will not contain policy measures.
Ms Reeves will insist that the government has the “right economic plan for the country”.
It comes as Donald Trump launches a fresh attack on Keir Starmer, stating that he is “very sad” to see that the relationship with the UK “is obviously not what it was”.
In an interview with The Sun, the US President warned that Britain was “not such a recognisable country” anymore.
The prime minister over the weekend said he would not allow US jets to deploy from UK bases to undertake the strikes on Iran.
Starmer has defended the decision, saying it was his “duty to judge what is in Britain’s national interest.”
Watch: Ed Davey slams ‘washed up old footballers and tax exiles’ in Dubai seeking UK protectionEd Davey slams ‘washed up old footballers and tax exiles’ in Dubai seeking UK protection
Maryam Zakir-Hussain3 March 2026 10:09
Irish premier says UN Security Council has been ‘paralysed’ for years
Micheal Martin has said the UN Security Council has been “paralysed” for “many years”.
Reiterating criticism of the UN that he made yesterday, the Irish premier said: “The UN is an urgent need of reform, and the Security Council, as it’s currently constituted, is not fit for purpose because of its composition.”
Speaking to the media ahead of a cabinet meeting on Tuesday, he said there is “no question” US strikes on Iran took place without a UN mandate.
Irish premier Micheal Martin (PA) (PA Media)
Maryam Zakir-Hussain3 March 2026 10:00
Zack Polanski accuses Keir Starmer of jumping into ‘another Middle East illegal war’Zack Polanski accuses Keir Starmer of jumping into ‘another Middle East illegal war’
Harriette Boucher3 March 2026 09:45
What will Reeves say in her spring statement?
Rachel Reeves’ spring statement is expected to be a low-key affair lasting only 20 minutes in the commons on Tuesday.
The government has said it will restrict itself to one “fiscal event” each year, meaning the chancellor is not due to unveil any policy measures.
Instead, she will use the speech to say that the economy is “stronger and more secure” and insist the government has the “right economic plan for the country”.
She will point to falling inflation and interest rates cuts as government successes.
Speaking in parliament on Tuesday, the chancellor will say: “This government has the right economic plan for our country in a world that has become yet more uncertain.
“Stability in the public finances, investment in infrastructure and reform to our economy.
“Building growth not on the contribution of a few people or a few parts of the country, but in every part of Britain with a state that doesn’t stand back, but steps up.”
Her statement comes amid a growing crisis in the Middle East, which economists warn could see energy and fuel prices rise.
The chancellor is expected to stress the importance of economic stability in an increasingly uncertain world.
Harriette Boucher3 March 2026 09:23
Starmer’s limited involvement in Middle East not an attempt to ‘pander to Muslim voters’, says Jones
Darren Jones has denied suggestions that the government’s limited involvement in the Middle East was because the prime minister was “pandering to Muslim voters”.
He told BBC Radio 4’s Today programme: “We’re obviously in discussions with the Americans about their operations, but the key point is, we are not militarily involved in the wider conflict in the Middle East, we are involved in a very discreet and narrow way to defend British interests, British citizens and British armed forces.”
The prime minister’s chief secretary said: “The UK will act in the interests of British citizens, regardless of their faith or where they are in the United Kingdom.
“I think the public would rightly say they don’t want to be involved in a wider war in the Middle East, but they would expect us to do whatever we can to defend British citizens.”
Darren Jones (PA Wire)
Harriette Boucher3 March 2026 09:05
Starmer stands by refusal to join Iran strikes after Trump lashes out at UKStarmer stands by refusal to join Iran strikes after Trump lashes out at UK
Harriette Boucher3 March 2026 08:59
Jones responds to Trump’s criticism of US-UK relations
Darren Jones has responded to the latest criticism from Donald Trump, insisting that the relationship between the US and UK “is important” and “will continue to be”.
The US president told The Sun that the relationship with the UK “is obviously not what it was”.
Asked whether the relationship had changed, the chief secretary to the prime minister told BBC Radio 4’s Today programme: “The UK-American relationship is important. It has been for a long time and will continue to be, and we’re working in collaboration right now in the Middle East on defensive action to protect British citizens.
“I think the president’s frustration, from the way he’s articulated it, has been that we were not involved in the initial American and Israeli strikes in Iran, but as the prime minister said to the House of Commons yesterday, we will only engage British armed forces when it’s in British interests with a clear plan and on a legal basis.
“We’re now doing that for defensive action, but we’re not going to be getting involved in a wider conflict in the Middle East.”
Harriette Boucher3 March 2026 08:50
Iran war could cause rise in energy prices and inflation, former chancellor says
A former Tory chancellor has warned that the Iran war could push up energy costs and inflation.
Jeremy Hunt told Sky News that his rule of thumb as chancellor was “if international oil and gas prices go up by 20 per cent, that’s 1 per cent higher inflation and half a percent lower growth. And you cannot ignore that kind of impact on the economy.”
He said the government would have to react to the events in Iran if the unrest continues.
Mr Hunt said that while there was “definitely a calmer backdrop” than previous statement by the chancellor, we are in a “very unpredictable world” and the UK is “more exposed” than other countries in rising energy prices.
Harriette Boucher3 March 2026 08:44
Davey calls for “tax exiles” in Dubai to start funding armed forces
Ed Davey has called for “tax exiles” and “washed up footballers” in Dubai to start paying taxes in the UK to fund the armed forces.
The Lib Dems leader asked Keir Starmer on Monday whether he agreed that it was “only right” that British expats in the region “start paying taxes to fund our Armed Forces just like the rest of us do”.
Mr Davey later said: “We rightly expect our Armed Forces to protect British citizens abroad.
“So it’s right that tax exiles should pay UK tax like the rest of us, whether they’re right-wing political pundits or washed-up footballers.”
Ed Davey (House of Commons)
Harriette Boucher3 March 2026 08:33
Jenrick criticises Starmer for putting US-UK relationship under strain
Robert Jenrick has said that Keir Starmer’s “failure to be a reliable ally” has placed the relationship with the US “under a lot of strain”.
His comments followed earlier ones from Donald Trump, who told The Sun the relationship with the UK “is obviously not what it was” .
The Reform UK Treasury spokesman told Times Radio that it was “sad” to see the “special relationship” phrased in that way.
Mr Jenrick said: “It’s bigger and deeper than one prime minister and one president and so I’m sure it can be built up again in the future.
“But it’s quite clear that the prime minister’s failure to be a reliable ally to the United States in this moment has placed it under a lot of strain, and that is a cause for concern.
“I’m actually more concerned about British interest, rather than what another leader, albeit a very important ally of ours, thinks of the United Kingdom.
“And there again, I think Starmer has got it wrong, because we’ve seen the drone attacks on our base in Cyprus, putting in danger our troops and the service families who live there.
“The prime minister’s response has been too slow. He should have made our bases available sooner and he should have used what military assets we have to defend that base more rigorously than he did.”
Robert Jenrick (Stefan Rousseau/PA Wire)
Harriette Boucher3 March 2026 08:19