The PM and his top team will hold a ‘political cabinet’ with no civil servants present – so issues such as Labour’s position in the polls and May’s local elections can be discussed
Watch live: Cabinet arrivals for meeting with Prime Minister
Keir Starmer is holding an extended cabinet meeting with his top team – less than 24 hours after the Bank of England slashed growth forecasts.
The central bank reduced interest rates – offering a small boost to those with mortgages – but also warned households to brace themselves for higher inflation. And in what was described as a “wake-up call” for the Chancellor Rachel Reeves, the BoE cut economic growth forecasts for the UK economy
It warned GDP would average just 0.4% in the first three months of 2024, down from its November estimate of 1.4%, just 0.75% in 2025, and remain weaker-than-expected for the next couple of years.
It is likely to be top of the agenda as the PM and senior Cabinet ministers are meeting away from No10 and will hear the regular weekly updates from different government departments.
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It will then be followed by a “political cabinet” – where civil servants are sent out of the room and ministers can discuss issues such as Labour’s position in the national polls and the upcoming local elections in May.
The party’s position in the Westminster polls has plummeted since July’s landslide election victory after a series of unpopular decisions blamed on the dire inheritance left behind the Tories.
Ms Reeves admitted on Thursday she was “not satisfied” with the growth rate – something she has made her number one priority at the Treasury. She said: “This interest rate cut is welcome news, helping ease the cost of living pressures felt by families across the country and making it easier for businesses to borrow to grow.
“However, I am still not satisfied with the growth rate. Our promise in our Plan for Change is to go further and faster to kickstart economic growth to put more money in working people’s pockets. That’s why we are taking on the blockers to get Britain building again, ripping up unnecessary regulatory barriers and investing in our country to rebuild roads, rail and vital infrastructure.”
Mr Starmer also said people would have “more money in their pockets” as he welcomed the Bank of England’s decision to cut interest rates. The PM said: “I think it’s important to look at what’s happened. The interest rate has come down, that’s the third drop in interest rates since July.”
He added: “We are absolutely determined we are going to grow the economy, and I don’t mean a line on a graph, I mean people feeling better off.”