2025-04-08T08:35:49.000Z

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Good morning! The global economy faced significant upheaval yesterday, primarily due to the announcement of a radical new tariffs schedule by former U.S. President Donald Trump. In response to this economic turbulence, UK Prime Minister Keir Starmer has pledged to implement an approach described as “active government,” aiming to support the sectors most adversely affected by these trade policies, including the domestic car and steel industries.

However, some critics argue that a more accurate term for Starmer’s proposed actions would be “reactive government.” The reality is that, like many of his global counterparts, the UK Prime Minister finds himself with limited flexibility to proactively develop strategies in the face of such unpredictable political maneuvers coming from the United States.

Currently, Starmer and other world leaders are compelled to adopt a patient stance, awaiting Trump’s next moves, and then strategizing their counteractions accordingly. This situation is not just confined to the economic realm; it extends into matters of defense and security as well. The unpredictability of the U.S. administration presents an ongoing challenge for its allies worldwide.

Amidst this challenging environment, it's worth noting that Starmer could possess unique advantages. While often criticized for lacking a grand vision or strong ideological foundations, this very absence may allow him greater flexibility in responding to Trump’s policies. His non-ideological stance could enable him to navigate these turbulent waters without being constrained by rigid doctrines.

Starmer has frequently emphasized the need for enhancing the “agility” of the UK government to better deliver domestic policy. This is a quality that is now urgently needed on the global stage, as Downing Street must prepare to respond to Trump with as much finesse as possible.

Inside Politics is curated by Georgina Quach. For more of our insights, you can follow Stephen on Bluesky and X, and Georgina on Bluesky. Interested in previous editions of our newsletter? You can read them here. We encourage readers to share feedback, thoughts, or any political gossip by reaching out to us at insidepolitics@ft.com.

In Westminster, a new wave of speculation is emerging about a potential collaboration among right-leaning factions, often referred to as a movement to “unite the right.” Despite the leadership of both the Conservative and Reform UK parties attempting to quash this narrative, interest remains high.

According to recent discussions with my colleague Anna Gross, the possibility for some limited co-operation between the two parties could materialize after the local elections scheduled for May 1. While both parties have publicly dismissed the idea of a pre-election pact or a formal coalition, they both emphasize that their focus is on winning as many council seats as possible.

Nevertheless, insiders from both political camps suggest that there may be opportunities for narrower “confidence and supply” agreements. This scenario would involve one party supporting the other in local councils, allowing them to maintain governance even without an outright majority.

Historically, there are examples of such limited arrangements. In Southend back in 2016, the Conservatives found themselves just two councillors short of a majority and received support from Ukip, a precursor to Reform that was at that time led by Nigel Farage. A detailed memorandum of understanding from that arrangement can provide insights into how such partnerships might unfold again.

In 2019, the Brexit party, which later rebranded as Reform, successfully took control of Hartlepool Borough Council, largely owing to the support of Conservative councillors who opted to form a coalition. This collaboration was framed as putting the interests of the country above party allegiance.

However, any potential for similar co-operation following the upcoming local elections hinges on several critical conditions. Firstly, it requires that no party secures overall control, secondly, that the combined tally of Conservative and Reform councillors reaches a majority, and thirdly, that both parties are willing to work together on key confidence motions and budgetary matters.

While these conditions are considerable, the prospect of such arrangements may excite members from both parties who are eager to see them unite more formally ahead of the next general election.

At present, discussions about a Tory-Reform collaboration are reportedly “very donor-led.” According to a Conservative official, donors tend to be less emotionally tied to party histories, which opens the door for more pragmatic considerations.

There is a faction within both parties that agrees on the potential benefits of exploring this idea before the next general election, although enthusiasm appears to be lacking. Their argument rests on a pragmatic foundation: collaboration on the center and populist right could be advantageous if it means preventing the center-left from gaining power at No. 10.

As per the latest data from Politico’s poll of polls, neither party currently holds a commanding lead. However, the combined support for Reform (24 percent) and the Conservatives (22 percent) totals 46 percent, significantly surpassing the combined figures for Labour (24 percent) and the Liberal Democrats (13 percent), who together garner only 37 percent of the electorate's support.

A notable figure from Reform, who candidly expressed disdain for the Tories, stated that if a Conservative-Reform agreement could effectively prevent a Labour-led government, it raises the question: “why not engage in discussions?”

Despite the arguments in favor of collaboration, formal alliances seem unlikely at this juncture. Farage has publicly dismissed any notions of a partnership, stating, “there is no pact, there is no deal, we’re not the Conservative party. We’re not Tory-lite. We pretty much despise them for their level of betrayal.”

On the other hand, Tory leader Kemi Badenoch has remarked humorously that she “laughed” at rumors of a secret campaign to unite the right, suggesting that Reform struggles with its coherence, having recently suspended one of its five MPs.

In the coming weeks, we will see if any form of limited cooperation can be established between these two parties within local councils.

Moving on to another topic, the third season finale of the much-anticipated series White Lotus has been met with mixed reviews. Many viewers, including myself, found the 90-minute conclusion to be underwhelming, leading to the verdict that it might be better to skip it altogether.

On a lighter note, I encourage you to check out our weekly FT politics podcast, Political Fix. We are also launching a new semi-regular Q&A special, where I will address your most challenging questions. If you have something on your mind, don’t hesitate to reach out by the end of the week at politicalfix@ft.com. A voice note with your name and question would be even better—we may feature it on the show!

In other notable news, today’s top stories include:

• ‘Project Nectarine’: UK ministers are nearing a deal to secure billions from American media giant Comcast, which owns Universal, for the construction of what could become Europe’s largest theme park at a former Bedford brickworks site.
• Home Office ‘Frustrated’: Officials from the Home Office have accused the Department for Education of encouraging universities to lobby against reforms aimed at tightening the graduate visa, which currently allows international students to remain in the UK for two years post-graduation.
• Breaking Cloud Cover: A court has acknowledged the existence of a legal battle between Apple and the UK government, which is demanding access to the tech giant’s most secure cloud storage systems.
• Looming Job Cuts: Reports indicate that hospitals across England may be forced to cut over 100,000 jobs due to extensive reorganization and cost-cutting measures mandated by Wes Streeting and the NHS’s new chief executive, Denis Campbell of the Guardian.