Business
Target ‘divisive’ Reform in 2026, Keir Starmer tells ministers
Chas GeigerPolitics reporter
PAThe prime minister has drawn a series of sharp dividing lines with Nigel Farage’s Reform UK, in an attempt to begin reviving Labour’s and his own political fortunes in the new year.
Sir Keir Starmer told his political cabinet he wanted to make clear to voters that the choice was between his party “renewing the country” and Reform, who he accused of feeding on “grievance, decline and division”.
Labour and the PM’s own personal ratings have plummeted in opinion polls since the party’s landslide victory in the 2024 general election.
Reform has consistently led the polls, and is hoping to make further gains in May’s council elections in England, and parliamentary ones in Scotland and Wales.
Sir Keir told a meeting of his political cabinet – which took place without civil servants, while including deputy Labour leader Lucy Powell – the government should be “relentless” in focusing on the cost of living and delivering “change people can feel”.
He defined the choice as being between “a Labour government renewing the country or a Reform movement that feeds on grievance, decline and division”.
“They want a weaker state, they want to inject bile into our communities, they want to appease [Russian President Vladimir] Putin. This is the fight of our political lives and one that we must relish,” he said.
A Reform UK spokesman said the prime minister was continuing to show an “obsession” with the party because he knew how much of a threat it posed to his “failing government”.
“Two years ago Labour promised to get the cost of living under control. Since then they have failed on nearly every count as household bills have soared, taxes have skyrocketed, and economic growth has flatlined.
“They simply cannot be trusted,” the spokesman added.
Sir Keir also told ministers: “I do not underestimate the scale of the task. But I have no doubt about this team.
“Governments do not lose because polls go down. They lose when they lose belief or nerve. We will do neither.”
Ahead of a difficult set of elections for Labour in May, there has been plenty of speculation about the prime minister’s own future, with suggestions he will face a leadership challenge if the party fares badly in those polls.
Speaking earlier, Conservative leader Kemi Badenoch said Labour had “no plan, no agenda” and was led by a “weak prime minister who doesn’t know if he is going to be in the job for much longer”.
She said the country needed a government that focused on economic security. “Right now, our economy is in freefall,” she added.
The political part of the meeting at Downing Street took place after an official cabinet meeting, with civil servants present, which lasted less than 10 minutes.
During the first meeting, Sir Keir told his senior ministers their main challenge for 2026 was to show “hard work, focus and determination” in helping to ease the financial burden on households.
His renewed emphasis on cost-of-living issues came as he prepared to join world leaders in Paris for a meeting of Ukraine’s allies.
Sir Keir’s latest reset has been overshadowed by President Trump’s capture of Venezuelan leader Nicolas Maduro and the US president’s continued ambitions to take over Greenland.
At the end of 2025, Sir Keir told Parliament’s Liaison Committee he was frustrated at the slow pace of change.
“My experience as prime minister is of frustration that every time I go to pull a lever, there are a whole bunch of regulations, consultations and arm’s length bodies that mean the action from pulling the lever to delivery is longer than I think it ought to be, which is among the reasons I want to cut down on regulation generally and within government.”
At the cabinet meeting on Tuesday he said: “There’s a world of uncertainty and upheaval, but tackling the cost of living remains and must remain our focus.”
He added that voters would judge the government at the next election on whether they had delivered improvements to public services and the NHS.
Sir Keir argued the government’s policies were already paying off, with increases in the minimum wage, the Bank of England’s reductions in interest rates, and help with household energy bills.
Business
US job creation in 2025 slows to weakest since Covid
The number of jobs created in the US grew only modestly in December, as a weak year for the employment market in the world’s largest economy drew to a close.
Employers added 50,000 jobs in the final month of 2025, according to Labor Department data, which was fewer than expected. But the unemployment rate dipped to 4.4%.
Job gains last year were the smallest since 2020, when the Covid pandemic led to widespread cuts.
Businesses have been operating in an environment marked by US President Donald Trump’s dramatic policy changes, including tariffs, an immigration crackdown and cuts to government spending.
The US economy has held up in the face of these shifts, growing at an annual rate of 4.3% over the three months to September.
But the expansion – driven by steady consumer spending and a growth in exports – has not been accompanied by significant job creation.
On average, the US added just 49,000 roles per month in 2025, down from an estimated gain of two million a month the year before.
The Labor Department said the US also added 76,000 fewer new positions in October and November than previously estimated.
Retailers and manufacturers were among the sectors reporting losses last month, which were offset by hiring at health care employers, bars and restaurants.
The data underscores the mixed dynamics facing job-seekers in the US, where hiring has cooled markedly over the last year but fears of mass layoffs have not materialised.
The US Federal Reserve central bank has responded to the slowdown by cutting its key lending rate in hopes of giving the economy a boost, despite concerns that inflation is still bubbling.
But the central bank is divided about how much lower borrowing costs should go.
Analysts said the latest figures – which showed the jobless rate recovering to the 4.4% level where it stood in September – would do little to resolve those debates.
“Today’s report confirms what we think has been evident for some time—the labor market is no longer working in favour of job seekers,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management.
But she added: “Until the data provide a clearer direction, a divided Fed is likely to stay that way. Lower rates are likely coming this year, but the markets may have to be patient.”
Business
Global Healthcare Fund Offers $70 Million To Pinnacle Blooms For Expansion: Report
Pinnacle Blooms Network, the pediatric therapy venture of Bharath Healthcare Laboratories, has secured $70 million (Rs 630 crore) from Global Healthcare Fund to fuel its expansion plans.
The two-tranche Series A round, advised by Yukon Capital, is set to become one of the largest early-stage investments in child development infrastructure across Asia, reported Hindu Business Line.
The funding will be deployed in two phases. The first tranche of $70 million will support rapid domestic expansion and technology upgrades. A second follow-on tranche is planned as the company enters markets in Southeast Asia and the GCC.
Capital deployment will enable Pinnacle to scale its network from 70 to 300 multidisciplinary therapy centres within 24 months. It will also accelerate R&D for home-based TherapeuticAI solutions, support large-scale manufacturing of TherapySphere sensory rooms, and fund regulatory submissions for international market access.
At the core of the platform is the proprietary Pinnacle Child Development Operating System—a multi-patent-filed digital therapeutic ecosystem that measures, predicts, and personalizes every aspect of a child’s developmental journey across speech, motor, cognitive, and behavioral domains.
Aneesh Madhav, Chief Executive Officer, Yukon Capital, said, “Pinnacle has solved the fundamental problem in developmental health — how do you make therapy measurable, scalable, and accessible without losing the human element.”
Dr. Koti Reddy Saripalli, Founder G Chairman, Bharath Healthcare Laboratories, said, “The world has finally recognized that developmental health is not charity; it’s essential infrastructure. We’re not raising capital to grow. We’re raising capital to ensure that every child on earth who needs measurable therapy can access it.”
Business
Elon Musk’s Grok AI image editing limited to paid users after deepfakes
Elon Musk’s platform X has limited image editing with its AI tool Grok to paying users, after it came under fire for allowing people to make sexualised deepfakes.
There has been a significant backlash after the chatbot honoured requests from users to digitally alter images of other people by undressing them without their consent.
But Grok is now telling people asking it to make such material that only paid subscribers would be able to do so – meaning their name and payment information must be on file.
The BBC has approached X for comment.
Those who do not subscribe can still use Grok to edit images on its separate app and website.
“Musk has thrown his toys out of the pram in protest at being held to account for the tsunami of abuse,” said Professor Clare McGlynn, an expert in the legal regulation of pornography, sexual violence and online abuse.
“Instead of taking the responsible steps to ensure Grok could not be used for abusive purposes, it has withdrawn access for the vast majority of users.”
It comes after the government urged regulator Ofcom to use all its powers – up to and including an effective ban – against X over concerns about unlawful AI images created on the site.
Addressing concerns that sexualised images of adults and children had been generated by Grok, Prime Minister Sir Keir Starmer said it was “disgraceful” and “disgusting”.
He said Ofcom had the government’s “full support” to act on the content.
“It’s unlawful. We’re not going to tolerate it. I’ve asked for all options to be on the table,” he said in an interview with Greatest Hits Radio.
Government sources told BBC News: “We would expect Ofcom to use all powers at its disposal in regard to Grok and X.”
Ofcom’s powers under the Online Safety Act include being able to seek a court order to prevent third parties from helping the Elon Musk-owned platform raise money or be accessed in the UK.
The BBC has approached the regulator for comment.
Grok is a free tool which users can tag directly in posts or replies under other users’ posts to ask it for a particular response.
But the feature has also allowed people to request it to edit images – and ask it to digitally strip people of most of their clothing.
Grok has fulfilled many user requests asking it to edit images of women to show them in bikinis or little clothing – something those subject to such requests have told the BBC left them feeling “humiliated” and “dehumanised“.
However as of Friday morning, Grok has told users asking it to alter images uploaded to X that “image generation and editing are currently limited to paying subscribers”.
It adds users “can subscribe to unlock these features”.
Some posts on the platform seen by BBC News suggest only those with a blue tick “verified” mark – exclusive to X’s paid subscriber tier – were able to successfully request image edits to Grok.
Prof McGlynn said the move echoed X’s approach to pornographic Taylor Swift deepfakes on the platform last year – where it blocked searches for sexualised material generated of the popstar using a Grok AI video feature.
“He is doing this to stoke free speech arguments,” she added.
“He will claim regulation is stifling people’s use of this technology. But, all the regulation requires is that he takes necessary precautions to reduce harm.”
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