The recent UK local election results have unveiled a picture of "negative partisanship" which shows people voting according to the party they dislike, rather than the party they support, said Rob Ford, one of the academics behind the UK general election exit poll, who described voters as "pulling a Tory lever or an anti-Tory lever that comes in red, yellow or green depending on which part of the country you live". "Talk of who will end up in a coalition with who seems increasingly redundant", said Stephen Bush, in his Inside Politics newsletter. Recent UK elections also show the "old" trend of Labour increasing its vote from the 2023 local elections — at the Liberal Democrats’ expense, Fisher said. Conversely, the governing party tends to recover in general elections, which Ford assumes will happen.
UK consumer confidence rose in May for the fourth consecutive month to the highest level since Russia’s full-scale invasion of Ukraine, according to a closely watched barometer. Meanwhile, UK Chancellor Rishi Sunak has ruled out entering a coalition with the Democratic Unionist Party, and Jeremy Hunt, former health secretary and now a backbencher, has said that the Conservatives need a new economic plan before the next election or risk becoming uncompetitive with Labour.
The UK's defence secretary, Ben Wallace, has hinted that he will be a candidate for the role of NATO secretary-general when Jens Stoltenberg, the current holder, retires later this year. Wallace was asked during a visit to Germany whether he would like the job. "That’s a job I’d like," he said. "But I’m also loving the job I do now.” Reports suggest that Wallace would face opposition from those wanting someone from eastern Europe or, more broadly, a woman, while French officials would prefer an EU candidate.
Czech shoe company Botas has been saved by Vasky, a 25-year-old shoe company founded by Vaclav Stanek after he raised "tens of millions" of koruna to buy the business. Botas, which has made trainers since the 1920s, is known for providing footwear to Soviet sports stars and legends like Olympic champions Emil Zatopek and Vera Caslavska. The company still operates a network of stores across the Czech Republic and produces shoes for Nordic walkers and hikers. Botas was seeing a fall in output of trainers to 10,000 pairs per year and ceased production altogether at the start of this year. Vasky has six standalone shops and two production sites, turning over €11.1m last year, and will move production of Botas's shoes 100 km from their factory base in Skutec to their main site in Zlin.
UK Prime Minister Rishi Sunak has issued a warning to Russian President Vladimir Putin, stating that Western allies, including the UK, are “not going away” and will support Ukraine's resistance against the invasion. Speaking at the G7 summit in Japan, Sunak said that the west was “steadfast” in its support of Ukraine and that Russia would “pay a price” as he announced new areas of sanctions, which include banning Russian diamonds and prohibiting imports of Russian copper, aluminum and nickel. Amid hopes that allies will follow the UK's lead, Sunak also said he is “hopeful and confident” that Britain's partner countries will impose similar sanctions, making them more effective and ensuring that Russia pays a price for its “illegal activity”.
Public attitudes towards immigration in the UK have become more selective, with attitudes to its economics and cultural impacts softening, according to Gal Dem newspaper. A decade ago, reducing immigration was backed by two-thirds of the public regardless of the present level. Now, almost half of the public (42% in 2022) want to see fewer migrants overall, and a quarter of these are sincere in their wish. However, attitudes are more focused on specific groups of people, such as NHS staff, casual agricultural workers, and young people seeking visas for study and work. Even many of those with the most liberal views have a misperception that immigration levels have fallen since Brexit. The three possible political responses to high immigration are either to specify targets for reduction, opt for “continuity cakeism” and maintain the current level, or accept that migration is high and look for ways to manage the influx of people better.
Erden Atic, a representative of the Bosnian minority, is the newly appointed Mayor of the northern, Serb-dominated part of Mitrovica, Kosovo. The region is fraught with tension and violence due to the ethnic Serbs who are demanding autonomy, with fears that the situation could result in their claims leading to the development of a new ministate, like Srpska Republika in Bosnia. To avoid this situation, the five Western powers issued a statement urging Kurti’s officials to refrain from inflaming tensions. Albania fears that a backlash could occur if the Albanian authorities don’t cease what has been described as “repression of Serbs” by June 1 2021.
A cross-party group of British politicians has called on the government to treat cryptocurrencies as gambling rather than regulate digital assets. The Treasury select committee’s report defined cryptocurrencies as “having no intrinsic value” and providing “no discernible social good”. The industry reacted angrily to the report, which came as the UK aims to become a “hub for crypto innovation”. It has set itself the goal of becoming competitive with other European capitals in the race for crypto supremacy. A new government policy could damage crypto's industry aspirations in the UK, CryptoUK's Ian Taylor has warned. Earlier this year, the Treasury said self-assessment tax forms would feature a standalone section for individuals and trusts that have disposed of cryptocurrencies. However, the report did not address how cryptocurrencies would be taxed, if they were treated as gambling.
Canada's whistleblowing legislation has never protected a whistleblower in the 16 years since it was brought in, according to David Hutton, a senior fellow at the Centre for Free Expression. The Public Servants Disclosure Protection Act, which has cost taxpayers over $100m in that time, has deterred people who want to report wrongdoing and effectively covers it up. More than 1,500 public servants have come forward with information about wrongdoing since 2007, yet only two managed to prove that they were targeted with reprisals. Critics have said that the law is insufficient and Bill C-290 needs to be passed.
The Washington Metropolitan Area Transit Authority (WMATA) has been "critically" exposed to cyberattacks since 2019, which could threaten train safety, according to a watchdog report. The report also claims the transit authority had failed to address 50 of the cybersecurity recommendations offered to it by oversight agencies. WMATA was hacked by a computer in Russia this year, the watchdog found, and has employed Russia-based IT workers. The vulnerability of transit systems to cyberattacks is well known, with transit agencies said to have the weakest cybersecurity when compared to other major sectors. There have been calls for the WMATA to beef up its cybersecurity in the wake of declining ridership during the Covid-19 pandemic and a shift towards the use of mobile fare cards and remote train piloting technology.
UK ministers have offered a package of subsidies and incentives, including higher energy subsidies, as they seek to convince Tata Motors to build a flagship battery factory in the UK for Jaguar Land Rover’s electric cars, according to people close to the discussions. A decision on whether to build the plant in Somerset or in Spain is believed to be imminent. The company has requested £500m ($618m) of financial assistance from the UK government. British ministers have prioritised the establishment of the plant to support the country’s car industry as it struggles to switch to electric vehicle production ahead of Brexit. High UK energy prices compared with European Union rivals have been the main issue for Tata despite its historic links with the UK.
The G7 summit, held in Hiroshima, Japan, is focusing on both heightened global economic uncertainty and a new common approach to China. Alongside climate change and artificial intelligence, President Joe Biden’s national security adviser, Jake Sullivan, has labelled the G7 as the “steering committee of the free world”, underlining the meeting's potential for a generational struggle in a new era of superpower rivalry. The seven countries involved in the summit include the US, UK, Japan, Canada, Germany, France and Italy. During the meeting, members have announced sanctions, including proposals to hit Russia’s diamond business, which has not yet been affected by western restrictions. They confirmed they will provide continued support for Ukraine for “as long as it takes”. Meanwhile, Russia has admitted to “problems” with oil and gas revenues, which have fallen to their lowest level in years, undermining the country’s ability to fund its war in Ukraine.
Despite being forced to borrow 256 billion euros from the International Monetary Fund and its Eurozone partners to balance its budget, Greece managed to do so in four years despite a quarter of its GDP being lost to recession. Half a million workers and a quarter of a million small enterprises collapsed, and behemoths like Viohalko, the country’s largest industrial group, shifted its headquarters abroad. Despite political upheaval Greece has reached a surplus in the first quarter of 2023 and is expecting to outperform the EU average in its return to AAA investment grade status. Half of the Greek workforce is made up of small companies and self-employed individuals, and though the government has been attempting to encourage mergers and farming co-operatives through tax breaks, many small businesses continue to struggle with Greece’s high energy inflation and dire bureaucracy.
NATO Secretary-General Jens Stoltenberg has said that NATO allies are providing an “unprecedented level of support” to Ukraine in its conflict against Russia. He noted that allies have supplied tanks, artillery, modernized air defense systems, and have trained and equipped nine Ukrainian brigades in the past two months. However, the issue of supplying Ukraine with Western fighter jets was avoided, and Stoltenberg suggested that the matter would continue to be discussed both within NATO and with Ukraine – perhaps at a defence ministers’ meeting in June. He also commented on NATO’s role in supply chain management. It is not enough just to supply equipment, but the capacity for maintaining that equipment has to be in place too, Stoltenberg said.
Stoltenberg was also questioned on NATO spending targets. He has advocated a minimum of 2% of gross domestic product for NATO member spending, but noted that this target had been set nine years ago, and only seven of the then 30 member states had achieved it as of last year. He expressed the view that “The agreement we reached together in Wales in 2014 has made a significant difference. Until then, defense spending was going down. Since then, it has been going up, although not as much as I would like.” On the issue of Ukraine’s possible NATO admission, Stoltenberg commented that for now, NATO’s goal must be to “help Kyiv in the military conflict”. It must be ensured that Russia “doesn’t continue to attack a sovereign, independent nation in Ukraine.”
UK household energy bills could rise by around £118 ($155) per year under plans being considered by the government to meet its net-zero targets and improve gas and electricity supply security, according to a study by think tank Onward. Downing Street supports low-carbon hydrogen gas production to reach net-zero emissions by 2050. However, the “regressive and unfair” levy could cost £118 per year for the average dual fuel household, directly benefitting fewer customers, Onward warned. Jack Richardson, the think tank's head of energy and climate called for "carbon taxes on heavy industry" instead of household levies.
Michelle O’Neill, Sinn Fein’s first minister designate, has urged UK Chancellor Rishi Sunak to get the DUP back to Stormont following the party’s likely victory in Northern Ireland’s local government elections. With the traditionally unionist Protestant population now outnumbered by nationalist Catholics, Sinn Fein is set to become the largest party in local councils. Some early results, however, suggest the DUP has retained its base. Sinn Fein’s strong performance could boost calls for reunification. O’Neill called for action from both the UK and Irish governments to reunite Stormont’s power-sharing government.
UK Chancellor Jeremy Hunt has cautioned that pessimism could trigger a "self-fulfilling prophecy" of economic decline in the UK. In an opinion piece for The Telegraph, he blamed both the Left and the Right for portraying the country in a negative light, insisting that there are clear signs of economic improvement under Chancellor Rishi Sunak; inflation is falling, a recession is likely to be avoided and there will soon be a reduction in energy bills. However, Hunt revealed that critics have tried to question their economic priorities - especially within the context of local election losses.
Rishi Sunak, the UK's chancellor, has refused to reveal the level of legal migration that would be deemed "acceptable" and insists that the government must prioritise the economy over its pledge to reduce overall migration figures. Total migration numbers, which account for net migration, are set to reach a new high of over 700,000 from within the year of 2021 to 2022. Despite this, Sunak refused to specify when or how the UK's government expects to reduce the overall number. Sunak has said that the number of legal migrants is currently "too high."
The chairman of the UK's Competition and Markets Authority (CMA) Marcus Bokkerink has dismissed claims that his organisation is blocking acquisitions that could benefit the country. Earlier this month, the CMA drew criticism from Microsoft and Activision over its decision to block a $69bn acquisition of the latter by the former. Bokkerink said it was "surprised" by the reaction to the decision and argued that entrenched market power was bad for businesses that sought to compete and innovate. However, critics have claimed that regulators in the UK have been inhibiting the country's growth in the tech sector.
Canadian climate tech start-up Carbonhound has raised $1.3m in funding and created software to help small- and medium-sized businesses track their emissions and reduce their carbon footprints. The technology enables firms to view emissions levels in real time and streamline their efforts to meet the carbon-focused regulations and targets coming into force in markets around the world, said co-founder Sanders Lazier. "If you’re not a sustainable business, then you’re grabbing a smaller and smaller portion of market share every year”, he added.
Ukrainian President Volodymyr Zelenskiy will use his attendance at this year's G7 summit, set to be held in Japan, to appeal to countries such as Brazil and India for greater support while continuing to build on the support of the US and its allies in the struggle against Russia's invasion. Meanwhile, the G7 has also announced measures to counter economic coercion from China, in a bid to further push-back against Beijing's "hostile" actions.
