The PM is expected to relax the 2030 petrol car ban by allowing hybrids to remain on sale for five more years, with ministers planning to close certain agencies to drive efficiency and shift towards a more interventionist approach in order to bolster businesses against global trade pressures.

Britain is weighing retaliatory tariffs on American electric cars, alcohol and clothing, spurring concerns of heightened transatlantic trade tensions and unsettling financial markets.

A sweeping set of reciprocal tariffs threatens to cost global markets up to $1 trillion, putting UK jobs and wages at risk and prompting The PM to seek alternative strategies for economic stability.

The PM’s deputy has defended proposals to expand sick pay, end zero-hours contracts and raise National Living Wage thresholds, arguing these changes will boost growth and support those on lower incomes despite objections from businesses.