Politics latest: PM to abolish NHS England in bombshell announcement

Cause of North Sea crash 'yet to be determined'

Next, the prime minister is asked how "two giant ships can collide in the North Sea" - as happened near the British coast on Monday.

Sir Keir Starmer begins his answer by acknowledging those who are responding to the collision.

He says that the cause of the crash has "yet to be determined".

"But we have to get to the bottom of it."

Asked about the collision again, Starmer says the situation is "reasonably contained". 

'No return to austerity,' PM tells Sky News

Next to ask a question of the prime minister is our political editor Beth Rigby.

She starts by asking about both his plan to cut NHS England and the thousands of accompanying jobs, his comments about the expanding size of the state that seem to signal further job cuts to come, and his plans to make billions of pounds of savings by cutting welfare.

She asks if he stands by his pledge not to return to austerity.

Sir Keir Starmer replies directly: "There is no return to austerity. I said that to you before the election, and we're not going to austerity."

On welfare, the PM defends his rumoured plans to cut the bill by billions, saying: "We must support those that need support, but equally we must help who want to get back into work, into work. And at the moment, the system doesn't do that."

He says one in eight young people are not in work or training, which is "just not defensible" and reform is needed.

And what of Trump's tariffs?

Secondly, Beth asks the PM if he hopes to achieve a deal with Donald Trump to get the tariffs on the UK steel industry removed, or if he simply cannot trust the US president.

He replies: "Obviously I am disappointed to see global tariffs in relation to steel and aluminium.

"But I am going to take a pragmatic response to this, because we are negotiating and talking about an economic deal and agreement as we speak.

"And my strong view is that is the better way to deal with the trade that we want between our country and the US."

Starmer adds that "all options are on the table", but he wants to "be pragmatic" and "keep ensuring we keep our eyes on the prize".

'The power of government is gone'

Sir Keir Starmer is now taking questions from the media.

He's asked by the BBC how soon he can turn things around in the government.

The prime minister says Labour are "frustrated we can't get things done as quickly as we need to".

"I've not known a moment like this where the international instability is having such a direct effect on what happens back at home," he adds.

'We already had enough to do'

Starmer says the government already had "enough to do" with the economy and the NHS in turmoil.

"I'm not standing here saying it's the fault of somebody else," he adds, repeating his insistence that he's not criticising the civil service.

The prime minister points to the existence of "arms-length" bodies and regulations getting in the way of government - like NHS England, which he's just announced he's scrapping.

"The power of government is gone," he says, and he seems keen on bringing it back.

PM to abolish NHS England

Sir Keir Starmer has just confirmed plans to abolish the "arms-length body" NHS England.

He says this will bring management of the NHS "back into democratic control".

This move will put the NHS "back at the heart of government where it belongs," he says, "freeing it to focus on patients, less bureaucracy, with more money for nurses."

The prime minister adds that the NHS will "refocus" on cutting waiting times at "your hospital".

NHS England is the body which leads the National Health Service in England. It is responsible for delivering high-quality care, supporting staff, and ensuring value for money.

Health is a devolved matter, so the prime minister cannot abolish the equivalent bodies for Scotland, Wales, and Northern Ireland.

Starmer: 'I believe in the power of government - but the state is weaker than ever'

Sir Keir Starmer continues his speech in east Yorkshire, declaring: "I believe in the power of government. I've always believed in the power in government, and I've seen it at its best."

He points to the state's response to the riots last summer in the wake of the Southport murders, saying he saw a response that "was dynamic, it was strong it was urgent", describing it as "active government".

But he says that is not felt across the country.

The PM says the state currently employs more people than it has for decades, but says he does not see "good value everywhere", and it is "weaker than it has ever been".

"Overstretched, unfocused, trying to do too much, doing it badly, unable to deliver the security that people need," he says.

He goes on to argue that people want "active government" to make the "big decisions" and allow them to "get on with their lives".

"We don't want a bigger state, a more intrusive state, an overexpanding state, a state that demands more and more of people as it itself fails to deliver on core purposes, so we've got to change things."

'The best of the best on AI'

Technology is part of the solution, Starmer argues, saying: "If we push forward with digital reform of government, and we are going to do that, we can make massive savings - £45bn of savings."

He says ministers are "going to get the best of the best on AI working across government", and deploy them into every department to modernise them.

Having just criticised the Civil Service, Starmer says: "This is not about questioning the dedication or the effort of civil servants - it's about the system we've got in place, and that system in the end was created by politicians."

He again criticises "blockers" holding the country back

He says 139 homes are being "held up" in one part of the country because an assessment of the speed of cricket balls was not done by a qualified assessor, and "jumping spiders" are "stopping an entire new town".

To that end, the PM declares that Labour will scrap regulations to ensure that the government's pledge of building 1.5 million homes by the end of the parliament can be met.

For businesses, he sets a new target of cutting compliance costs for businesses by a quarter.

'We're in a changing world - and we feel it every day'

Sir Keir Starmer is in east Yorkshire this morning, where he is delivering a major speech on his plans for government reform.

The prime minister begins by re-emphasising Labour's election pledge: "Change."

He says: "That wasn't just about an offer to the British people, it was actually a statement about the world that we now live in.

"Because we're in a changing world, and I think we can feel it every day."

He points to global instability "developing before our very eyes", and the impact this has on working people.

On Ukraine, Starmer says he "profoundly believes that if we don't secure a just peace and a lasting peace, then that insecurity will continue".

That means, the PM says, higher prices and higher bills for people in Britain, with the cost of living crisis "going on for even longer".

'We must go further'

Starmer says the "fundamental" goal of politics at the moment is to take "tough decisions on security", which is why the UK is raising defence spending to 2.5% of GDP in the next few years.

"You're not strong if your energy security is exploited by [Vladimir] Putin," the prime minister says.

"And you're not strong if you lose control of your public finances, and you can't build your industries."

Starmer says NHS waiting lists have been coming down for five months over the winter months, but says we now need "greater urgency to go further and faster".

He says "every pound that we spend... must deliver for working people", which means reforming government, bringing it closer to local communities, to ensure it's working at "maximum power".

Watch live: Starmer delivers major speech on regulation

Prime Minister Keir Starmer is in east Yorkshire today, where he is expected to promise to cut the cost of regulation for businesses by 25%.

Starmer is setting out his plan to reshape the state to cope with an "era of instability".

The prime minister is expected to argue that global uncertainty means the government must "go further and faster in reshaping the state to make it work for working people".

ICYMI: Ousted Reform MP Rupert Lowe consulting lawyers over libel action, Sky News understands

Rupert Lowe is consulting lawyers about taking possible libel action against Reform UK, Sky News understands.

The Great Yarmouth MP has accused the party of making "untrue and false allegations" about him after he criticised leader Nigel Farage in the media, sparking a bitter public row.

A day after the 67-year-old questioned whether Mr Farage could make it as prime minister, Reform UK announced on Friday it had referred him to police and suspended him, alleging he made "verbal threats" against chairman Zia Yousaf.

The Met has launched an investigation into these claims, which Mr Lowe has vehemently denied.

Reform has also claimed it has received complaints from two female employees about serious bullying in Mr Lowe's constituency office.

The now independent MP has strenuously denied these claims as well, saying the allegations do not relate to him and were made by staff who themselves faced disciplinary action.

-SKY NEWS