UK pharma sector awaits further details from Trump on tariff concessions from US
Lisa O’Carroll
Lisa O’Carroll is a senior Guardian correspondent covering trade.
Deals on steel and tech are sealed, but two other sectors caught in the cross hairs of Donald Trump’s UK tariff deal are anxiously waiting for promises to be delivered by the US president today.
The US pledged a “significantly preferential” treatment of the UK’s pharma sector in June, which had yet to materialise.
While the presence of a GSK boss at last night’s banquet may indicate movement on a deal, the question is not just whether the UK gets a further discount on a 10% blanket tariff, but what is included.
The detail on the EU side has yet to materialise with Irish deputy prime minister Simon Harris telling the Guardian “a big body of work” has yet to be done to establish what exactly the 15% tariff would apply to.
Trump locked in a 15%top tariff rate for pharmaceuticals exported from the EU as part of the joint statement released at the end of August, with a zero or close to zero rate on “generic pharmaceuticals and their ingredients and chemical precursors”.
“We don’t have that list of what the generics is or for medical devices,” Harris said.
Trump’s decision to impose 15% tariffs on imports of pharma from EU is already breaching a World Trade Organization agreement that tariffs are not imposed on most medicines for public health reasons.
There is also an expectation both in the EU and in London that exports of wine and spirits will return to pre-Trump, rates when spirits were rated zero on import to the US and wine was rated between 0.5% and 1.8%.
Key events
Council spending in England on emergency housing for homeless families up 25% in past year, figures show
Patrick Butler
Patrick Butler is the Guardian’s social policy editor.
In one of the starkest indicators of the housing crisis, new official figures have revealed English councils spent £2.8bn providing housing emergency housing for homeless families last year, an annual increase of 25%.
The bill for so-called temporary accommodation – short-term lets and bed and breakfast hostels – has doubled in the last five years, and is and a growing threat to the financial viability of some councils.
Private landlords have been accused on “cashing in” on the crisis – a third of the 2024-25 bill (£844m) went on putting up families in bed and breakfast rooms, with a further £1bn spent on nightly paid short-term lets.
A Guardian investigation earlier this year found private landlords and hotel owners were charging councils up to 60% more than normal market rents for properties that were often dirty, overcrowded and unsuitable for families.
Spiralling rent, insecure tenures, shortages of social housing, and housing benefit freezes have driven an explosion in family homelessness in recent years, with some councils now spending over half their budget on temporary accommodation.
As of 31 March there were 131,000 households in temporary accommodation. These included 169,000 children – a figure some estimates predict will rise to nearly 200,000 by the end of the decade.
“Private providers are cashing in on this crisis, charging eyewatering sums for rooms where children are forced to eat, sleep and do their homework on beds shared with siblings,” said Mairi MacRae, director of campaigns at housing charity Shelter.
In the Royal Library at Windsor Castle, Queen Camilla and Melania Trump inspected a display case with drawings by Leonardo da Vinci, Raphael, and Holdein.
Among the other items they looked at were a prayer book belonging to Queen Elizabeth I and Charles I’s copy of Shakespeare’s second folio, which he read before his execution in 1649.
Robert Peston from ITV News has posted some footage on social media showing where the journalists are being held at Chequers as they wait for the Trump/Starmer press conference.
Ahead of the state visit, the Newsmax CEO Christopher Ruddy (see 10.11am) hosted a party attended by senior rightwing British politicians. In an article for the Daily Telegraph, Gordon Rayner says the event degenerated into a row between the senior Tories over record of the last government.
After [Nigel] Farage, [Marco] Rubio and [Scott] Bessent had left to attend another event, the Tory big beasts and a smattering of Reform bigwigs sat down to an evening of dinner and civil war.
[Boris] Johnson, [Liz] Truss, former transport secretary, Mark Harper, and broadcaster, Andrew Neil, argued about the Tories’ record in government, particularly on immigration, and what the future direction of travel should be.
Jacob Rees-Mogg, who could be regarded as the current standard-bearer of uniting the Right, (he even attended the Reform conference this month), tried and failed to argue that they should all work together for the good of the country. Reform members smiled wryly as they watched the Tories tear lumps out of each other.
There is a lot of talk in the UK at the moment from people how think the right can only win the next election if the Conservatives and Reform UK can somehow work together. The former Tory minister Steve Baker said only this week he thought some sort of deal was unacceptable.
But Rayner suggests that will be difficult. Referring to Boris Johnson, he quotes a “senior Reform figure” as saying:
[Johnson] elicits a visceral emotion in our members. One of the most consensual opinions among Reform members is that he was a disaster, and has already claimed the title of the man who ended the Conservative party’s chances of ever regaining power.
If we let him join Reform, there would be an exodus of 99.9% of our members.
UK pharma sector awaits further details from Trump on tariff concessions from US
Lisa O’Carroll
Lisa O’Carroll is a senior Guardian correspondent covering trade.
Deals on steel and tech are sealed, but two other sectors caught in the cross hairs of Donald Trump’s UK tariff deal are anxiously waiting for promises to be delivered by the US president today.
The US pledged a “significantly preferential” treatment of the UK’s pharma sector in June, which had yet to materialise.
While the presence of a GSK boss at last night’s banquet may indicate movement on a deal, the question is not just whether the UK gets a further discount on a 10% blanket tariff, but what is included.
The detail on the EU side has yet to materialise with Irish deputy prime minister Simon Harris telling the Guardian “a big body of work” has yet to be done to establish what exactly the 15% tariff would apply to.
Trump locked in a 15%top tariff rate for pharmaceuticals exported from the EU as part of the joint statement released at the end of August, with a zero or close to zero rate on “generic pharmaceuticals and their ingredients and chemical precursors”.
“We don’t have that list of what the generics is or for medical devices,” Harris said.
Trump’s decision to impose 15% tariffs on imports of pharma from EU is already breaching a World Trade Organization agreement that tariffs are not imposed on most medicines for public health reasons.
There is also an expectation both in the EU and in London that exports of wine and spirits will return to pre-Trump, rates when spirits were rated zero on import to the US and wine was rated between 0.5% and 1.8%.
First migrant deported to France under ‘one in, one out’ deal
The first migrant has been sent back to France under the “one in, one out” returns deal, government sources have said. PA Media says:
The man from India was on board an Air France plane to Paris on Thursday, according to The Telegraph.
It comes as the government has faced fresh pressure over the migrant returns agreement, and reports of planned flights for removals being cancelled earlier this week.
Trump welcomes cancellation of US TV show over Charlie Kirk comments – after praising ‘free speech’ at king’s state banquet
Donald Trump and Keir Starmer are likely to face questions about freedom of speech at their press conference later.
The Trump administration has regularly accused European governments, including Britain’s, of suppressing free speech, particularly in the way they enforce hate speech laws against people posting on social media.
Despite reports that Trump would use his speech at the state banquet to make the case for free speech, the president only included a relatively brief reference to it. He said:
The legal, intellectual, cultural and political traditions of this kingdom have been among the highest achievements of mankind; there has really never been anything like it. The British Empire laid the foundations of law, liberty, free speech and individual rights virtually everywhere.
But later he delivered a quite different intervention on the subject. In a post on his Truth Social social media network, which he sent out later last night from Windsor Castle, Trump welcomed the news that the ABC has indefinitely suspended the show Jimmy Kimmel Live! over remarks the comedian made about the killing of the far-right commentator and activist Charlie Kirk.
Amy Sedghi has more on this story on our US politics live blog.
Here is BBC footage of President Trump’s arrival at Chequers.
MoD announces £1.5bn ‘strategic partnership deal with US tech firm Palantir
The Ministry of Defence has announced a £1.5bn “strategic partnership” with the American tech company Palantir.
In a news release, the MoD says:
[The partnership] will see Palantir invest up to £1.5bn to help make the UK a defence innovation leader and create up to 350 new jobs, making defence an engine for growth.
The new partnership, signed today by defence secretary John Healey, will help the UK military develop the latest digital tools and harness AI technology to accelerate decision making, improve targeting and keep the British people safe from evolving threats. Palantir has also announced plans for London to become the base for Palantir’s European defence business, establishing Britain as a hub for defence technology innovation across Europe.
The arrangement will also support the growth of British Defence Tech companies across the supply chain, with Palantir helping to mentor and develop UK companies. This will include helping British defence start-ups and SMEs to expand into US markets, including an offering on a pro bono basis.
Trump arrives at Chequers
Donald Trump has arrived at Chequers.
Donald Trump and his wife Melania posed for a photograph with King Charles and Queen Camilla in the grand grand Green Corridor at Windsor Castle before Trump headed to the PM’s country residence Chequers, PA Media reports. PA says:
The four posed for a joint photograph together in the atmospheric corridor which is lined with gilt edged historic paintings and antique furniture.
Outside at the sovereign’s entrance, the Kkng said a solo goodbye with Trump shaking his hands warmly and placing his other hand on top. The president said “thank you very much, everybody. He’s a great gentleman and a great King”.
The Windsor Castle detachment of The King’s Guard turned out in the Quadrangle outside to mark Trump’s departure. Although Melania attended the official parting of ways, she is in fact staying behind to carry out joint engagements, first with Camilla, and then the Princess of Wales.
She was joining the Queen for a tour of Queen Mary’s Doll’s House and the Royal Library in Windsor Castle.
