Daisy Cooper, the Liberal Democrat deputy leader, said taxpayers' money was being "rerouted at the request of Donald Trump" from frontline NHS services "into the pockets of big pharmaceutical companies". At the beginning of December, the UK agreed to pay 25% more for new medicines by 2035 to stop the US imposing trade tariffs on pharmaceutical products. The deal involves an increase in the baseline threshold used to assess whether medicines can be offered by the NHS. The National Institute for Health and Care Excellence (NICE) will increase the threshold by 25%: from £20,000-£30,000 to £25,000-£35,000. The government says this means NICE will be able to approve innovative medicines that deliver significant health improvements but might have previously been declined on cost-effectiveness grounds. It has suggested the deal will cost around £1bn a year by 2029. Others, including the Lancet medical journal, have said the cost to the NHS will be £3bn. Exact costs will depend on how many medicines are approved under the new system. Ms Cooper said it was "outrageous" the agreement was made without any public debate or parliamentary scrutiny - "just a decision by the Labour prime minister, Keir Starmer". She called on Sir Keir to "scrap this £3bn Trump tax" and instead invest it in social care. "There is no doubt at all that this money will not bring lots of new drugs to our NHS," she said. "Independent experts suggest it could just be three or four, possibly five at most. "What this money will do is simply increase the amount of money that we will pay for the existing drugs that we use, and it will be rerouted from frontline services... "That is why our message is clear: Scrap this £3bn 'Trump tax' and fix social care now." When the US-UK drug pricing deal was announced, NHS leaders backed the government's assessment that it would lead to tens of thousands of patients receiving groundbreaking new drugs. However, they warned the NHS receives too little funding to absorb the costs and said care, services and treatment budgets must not be raided. Read more:2025 second-highest year for small boat crossingsWorkers being 'hammered' while pensioners benefit Whitehall sources claimed the hike in drug prices will not be paid for out of budgets for NHS services but from hundreds of millions of pounds given to the NHS last year to cover the costs of the deal in its early years. Science Secretary Liz Kendall said the deal would "enable and incentivise life sciences companies to continue to invest and innovate right here in the UK". But Ms Cooper said the government needs to be "standing strong" against Mr Trump as he only understands "the language of strength". And she accused the government of being "all spin and no substance" as she said it has held only one meeting on social care after promising to launch cross-party talks to fix social care a year ago. Sky News has contacted the government for a comment.

For a prime minister who made "smashing the gangs" such a central pledge during the general election campaign, the numbers are politically toxic. Although, frankly, given the trajectory of the statistics in the first part of the year, the situation could have been even worse - with the figures tracking largely above the record number of migrant arrivals in 2022 until bad weather hit in the late autumn. But after 18 months in power, Sir Keir Starmer's entering another year without making any real progress on an issue which is hugely important to many voters. This seeming impotence - from successive governments - to stop the small boats and close asylum hotels has certainly fuelled the rapid rise in support for Reform UK. Not surprisingly, Nigel Farage has leapt on today's data to claim "smash the gangs is a complete disaster. One in, one out is a farce and the numbers have been huge." In a recent hardening of mainstream policy positioning, both Reform UK and the Conservatives now argue that anyone who arrived in the country illegally should be barred from claiming asylum - and that the UK needs to leave the European Convention on Human Rights in order to deliver that, and increase the number of deportations. "Small boat crossings are the inevitable product of a system that guarantees entry and obstructs removal," said shadow home secretary Chris Philp. "As long as the ECHR sits at the centre of our asylum system, illegal immigration is effectively hardwired in." Tough talk, but will action follow? As we saw with the PM's New Year's message on the economy, his approach has been to argue he understands people's anger - but to insist that new policies only just coming to fruition will soon start to make a big difference. The Home Office said in a statement: "The number of small boat crossings are shameful, and the British people deserve better. This government is taking action." It's certainly true that many of the catalogue of measures announced by ministers have only just come into force - or are yet to do so. The borders bill, finally passed in December, gives the police new counter-terror-style powers to try to tackle the gangs. Home Secretary Shabana Mahmood's Danish-inspired asylum reforms, announced in November, aim to make the asylum system less generous - and therefore less of an incentive to migrants. Read more: UK looking at Denmark model to cut illegal migrationAngola and Namibia agree to take back illegal migrants She wants to deter people from coming to the UK with plans to make refugee status temporary, not permanent, to restrict asylum seekers' benefits, and to require 20 years' residency before granting permanent settlement. The plans also seek to make deportations easier. Rather than leaving the ECHR, the government is working with other European countries to try to reform it from within. The one in one out deal with France began over the summer, and sees the UK sending back small boat migrants back across the Channel in exchange for people already in the French system. Thus far it's been small scale - with fewer than 200 people deported, and several attempting to get back to the UK even after being returned. And while ministers regularly celebrate the fruits of closer working with their European partners - a long-awaited French promise to allow the police to intervene to stop the boats in the water looks to be on ice once again, with unions reportedly resisting the order over health and safety concerns. Voters are ready to punish Starmer After so many false promises and failed schemes - the most notorious of which, the Rwanda plan, cost £700 million and deported just four volunteers - it's not surprising the British electorate are sceptical about government policies in this area. Sir Keir and Shabana Mahmood are hoping their multi-faceted, internationally collaborative approach will finally start to pay dividends in the new year. Frustrated voters expect resolutions - and they're prepared to punish politicians who don't deliver on their promises.

Fuad Awale, who is serving a life sentence for shooting two teenagers in the head in 2011, was moved to a close supervision centre (CSC) - a special unit for dangerous prisoners - after helping to take a prison officer hostage and threatening to kill him. He was later stopped from having contact with other prisoners, including one of the men who killed Fusilier Lee Rigby in Woolwich, southeast London, in 2013. Awale claimed it impacted his mental health and breached his human rights. The High Court last year agreed, ruling that his treatment had breached Article 8 of the European Convention on Human Rights (ECHR), his right to a private and family life. The ruling was discussed in parliament in November, when it was revealed that Awale was awarded £234,000 in legal costs by the High Court. Shadow justice secretary Robert Jenrick asked whether Justice Secretary David Lammy would pay any compensation to Awale out of his own pocket instead of using taxpayers' money if he wanted to follow the court's ruling. In a letter sent to Mr Jenrick on 29 December, Mr Lammy mentioned the previously unreported compensation amount of £7,500 for Awale, which he said "constitutes only a modest proportion of the overall settlement". "This payment was mandated following a court judgment against the department, after we had defended the claim in line with the established policy of contesting all litigation brought by prisoners convicted of terrorist offences - a policy that has remained consistent under successive governments," Mr Lammy added. Mr Jenrick accused the deputy prime minister of putting the ECHR "above the safety of officers and the interests of the British people" and "cowing to one of the most despicable terrorists in Britain" in a post on X. Read more from Sky News:'Horror movie' ski resort fire kills 40UK snow and ice warnings upgraded In a statement on Awale's High Court win, the Ministry of Justice repeated Mr Lammy's letter, saying: "This government will not be cowed by legal threats from prisoners. "The Separation Centre remains an essential operational tool to protect the public and other prisoners and when dangerous radicalisers pose a risk, they will be placed in one. "This government is committed to the European Convention on Human Rights. Commitment does not mean complacency, however, and we must keep under review whether the application of the convention is acting as a barrier to us protecting national security." It comes weeks after Mr Lammy met with ministers from member states signed up to the ECHR, who all agreed to consider reforming the treaty and tackle illegal migration within the existing framework. In a statement, the member states also called for changes to address decision-making in migration cases including in Article 8.

No migrants made the journey on New Year's Eve, the Home Office confirmed on Thursday, with the last recorded crossing made on 22 December. It means the overall number of arrivals last year ended up 9% below the all-time high of 45,774 in 2022. The total for 2025 was 13% higher than in 2024, when 36,816 migrants made the journey, and 41% higher than 2023's total of 29,437. The first half of 2025 saw 19,982 people arrive, a record number in that period. However, that pace slowed during the last two months of the year and there were long periods when no migrants arrived, including a 28-day run from 15 November to 12 December. There was an average of 62 people per small boat that arrived in 2025, which is up from 53 in 2024 and 49 in 2023. Charities estimate that at least 36 people died trying to make the journey last year, including an eight-year-old girl and her mother, who were crushed on a boat in May, the Mirror reports. The number of arrivals in 2025 has heaped pressure on Sir Keir Starmer's government, having entered office in July 2024 with a repeated vow to "smash the gangs" and reduce the number of crossings. Almost 65,000 migrants have arrived since then. The UK's Border Security Commander, Martin Hewitt, tasked with curbing Channel crossings, told MPs in October that the number of arrivals in 2025 was "frustrating" but that work to stop the smuggling route was "always going to take time". The government has also introduced and announced changes to legislation in a bid to stop Channel crossings, including: The Border Security, Asylum and Immigration Act, which became law in December, that introduces new criminal offences and allows law enforcement agencies to use counter terror-style powers to crack down on people-smuggling gangs.Plans for what Home Secretary Shabana Mahmood has described as "the most significant changes to our asylum system in modern times" in a bid to deter people from coming to the UK and make it easier to deport them.Making refugee status temporary, with regular reviews of the safety of the person's home country, and a wait of 20 years for permanent status. But the government faces a fight once again with its own MPs to get those measures through, with some Labour parliamentarians branding the measures "shameful" and echoing the rhetoric of Nigel Farage's Reform UK. Tap here to read more about the government's planned asylum reforms. Meanwhile, Tory leader Kemi Badenoch said the measures did not go far enough, adding that leaving the European Convention on Human Rights (ECHR) was necessary to address the problem. Both the Conservatives and Reform UK have pressed for quitting the human rights treaty as a way to tackle illegal immigration, but the Labour government has insisted it will not leave the ECHR and instead seeks to adjust how immigration cases are interpreted in UK law. Deputy Prime Minister David Lammy met ministers from ECHR member states last month, who agreed to consider reforming the treaty to address illegal migration. International cooperation has also formed part of the government's strategy, such as through the "one in, one out" returns deal with France that came into force in August. On 16 December, border security minister Alex Norris told peers that 193 migrants had been sent back to France and 195 had arrived in the UK under the returns deal so far. But the scheme has drawn criticism as being "no deterrent at all" by shadow home secretary Chris Philp, amid cases of two migrants returning to the UK after being removed to France under the deal, who were then deported again. Reacting to the total number of Channel crossings for 2025, Reform UK leader Nigel Farage wrote on X: "Smash the gangs is a complete disaster. One in, one out is a farce and the numbers have been huge. Many of the young men that arrived last year will do us great harm." Enver Solomon, chief executive of the Refugee Council, said: "Most men, women and children taking these journeys have fled oppressive regimes like the Taliban in Afghanistan and brutal civil wars in countries like Sudan. "No-one risks their life on a flimsy boat in the Channel except out of desperation to be safe in a country where they have family or community connections. "It's right the government wants to stop Channel crossings but plans that will punish people found to be refugees are unfair and not an effective deterrent." He added that there needs to be a "multi-pronged approach", including targeting gangs and international cooperation to ensure refugees can access safe and legal routes - something Ms Mahmood has included in plans to overhaul the asylum system. A Home Office spokesperson said: "The number of small boat crossings are shameful and the British people deserve better. "This government is taking action. We have removed almost 50,000 people who were here illegally, and our historic deal with the French means those who arrive on small boats are now being sent back. "The Home Secretary has announced the most sweeping reforms to tackle illegal migration in decades, removing the incentives that bring illegal migrants to the UK and scaling up the return of those with no right to be here."

While the chancellor did not increase income tax, national insurance contributions for employees or VAT, avoiding a manifesto breach, her November statement did see her extend a freeze on the first two until 2031. It means people face being dragged into paying higher rates as their wages rise over time. The Treasury has defended the policy as "fair and necessary". It's expected to raise £23bn in 2030-31 to help the government "deliver on the country's priorities" like cutting NHS waiting lists and debt. Sir Keir Starmer has promised people will "feel positive change" in their pockets this year. According to the Centre for Policy Studies (CPS), someone earning £50,000 today will be £505 worse off in real terms come 2031 despite their salary being forecast to increase by more than £6,000. On the flip side, pensioners and those on welfare are set to be better off. Thanks to the triple lock guaranteeing increases in line with inflation, earnings or 2.5%, whichever is higher, a pensioner could expect to be at least £306 better off in real terms in 2030-31. If people relying on the state pension are exempted from paying income tax even once the payment crosses the personal allowance threshold, they could be £537 better off. And increases to the standard rate of universal credit will mean someone on unemployment benefits will be £290 better off. Read more from Sky News:Michael Gove reveals a big regretBoat crossings 'politically toxic' for PM 'Raising taxes through the back door' The CPS - a centre-right think tank, which used Office for Budget Responsibility inflation and wage growth forecasts for its calculations - said the chancellor was "raising taxes for millions of workers through the back door". Daniel Herring, CPS head of economic and fiscal policy, said: "Labour's tax policy is quietly hammering workers while protecting pensioners and benefit recipients. "Freezing the personal allowance for income tax will hit everyone, but it's those who are dragged into higher tax bands who will really suffer, to the point where a worker on £50,000 today is set to actually be poorer in five years' time, despite getting pay rises." 'Hardworking people paying the price' Ms Reeves had criticised freezing tax thresholds in the past, as had been done by previous Tory governments. But at the budget, she said she was "asking everyone to make a contribution" to fund public services. A Treasury spokesman said: "In the budget we increased the national living wage and national minimum wage and took £150 off people's energy bills, extended the freeze on prescription fees, fuel duty and froze rail fares for the first time in 30 years." Conservative shadow chancellor Sir Mel Stride accused Ms Reeves of lacking the "backbone to control spending". "Hardworking people are paying the price," he added.