Sunday with Laura Kuenssberg New Year interview: unpopularity, the EU, asylum hotels, Ukraine and Venezuela

Well, I'm looking forward to 2026. Um I think it's going to be the year when we turn a corner as a country. Um a lot of the decisions we took in 2025 uh will come into force effectively in 2026. And I think that for many people who've waited 16 17 long years for their living standards to improve, for their public services to improve, um they need now to feel the change. And that's what 2026 is going to be about.

We've talked about renewing the country that will become a reality and each month there will be actions delivered which will make a material change to people across the country. So this is very much uh turning the corner whether that's on the economy um on education on defense and security. Um it's a year to look forward to. It's a year that I'm optimistic about. Um, and I think it will reflect the hard work that we put in already to turn the country around.

Well, I will be sitting in this seat by 2027.

Look, I'm not surprised that people are frustrated. I completely get that. Um the truth is since the crash in08, most people haven't seen their living standards improved. They haven't seen their public services move in the right direction. They've seen them move in the wrong direction and they've lost trust in politics.

So when we went to the electorate in 2024 saying uh our manifesto pledge is change many people said yes I want that change I'm fed up but then what happened um is that people wanted the change to come more quickly. I actually really understand that because if for example you were 30 uh let's say by way of example in 2008 when the 08 crash you've waited you're now 47 and you will feel well a good chunk of my life has gone without things getting better if you were perhaps 50 you would be near retirement now you'd say I want things to happen more quickly so I actually do understand the frustration my job I was given a five-year mandate to change this country around and I said we'd do it in a serious way with long-term measures that would actually benefit the country, not slogans, not easy answers, not all the things that failed so miserably over the last 14 years of the last government, but to do it differently and that's what we're doing.

Those comments are abhorrent. Um, and I condemn them utterly. So, let's be really clear uh about that. Um, as I made clear, I didn't know about those comments at the time um of uh welcoming um Alfata to this uh country. But what I would say just stepping back from it, Laura, is as you know with consular cases, one of the jobs of the British government, all British governments, not just this British government, uh where someone is being treated in an improper way in another country if they're a British national is to take action to try to alleviate that situation.

And that's why I acted in this case and actually previous prime ministers acted in exactly the same way in the actions they took to try to get him released because that's what happens in consular cases.

Well, of course I regret that. And um your point uh that uh somebody in government should have known is one I've made myself to uh the appropriate team because um I do think I should have been made aware and I wasn't made aware and uh that is a failing within the system which is why we're carrying out a review but in to meet your challenge yes it's a failing within the system it shouldn't have happened um and um I wasn't very pleased about it when I found out um hence we're taking remedial action

The number of people employment has gone up. Um the number of people who are inactive and now looking for work has gone up. That's a good thing. Um but um we obviously um need to meet the challenge of unemployment and we will meet that challenge of unemployment. I'm particularly concerned about young people who are unemployed and that's why we put in place a number of measures to ameliate that situation.

But I've long believed that on the economy the most important thing was to stabilize uh to make sure that um we've got growth in the system which we hadn't had before. And that's why I'm really pleased the IMF which looks across the board at different countries is likely to predict that 2025 uh we were the second highest growth in the G7. we're creating the conditions uh for further growth and for me that's the most important thing for the economy.

Yeah. Well, let me first push back on the America deal because there are key components of that deal which are in place and safeguarding jobs right now. Um, so we got the best deal in relation to tariffs on car exports the US. It's hugely important. And around the world, I think you would acknowledge most other countries say that they wish they had been able to get the deal that we got.

Well, I've always been clear that we need a closer relationship with the EU. That is in our national interest. Um, and we've taken important steps towards that with the EU UK reset and it is a reset. Um, relations between the UK and the EU uh are in the best position they've been for 10 years. And that has meant we've already taken steps.

We've already taken steps on food and agriculture to um align with the single market. That's the sovereign decision that we have taken. I think we should get closer and um if it's in our national interest, in our interest to have even closer alignment with the single market, then we should consider that. Uh we should go that far. We're already aligning on energy reconnecting to energy in Europe on emissions but I think the single market further alignment as I say if it's in our interest to do so we should take that step.

So what I mean by that is if you look at the deal we've already done with the EU on food and agriculture, we're aligning our rules so that we can access the single market. So that's a sovereign decision that we've made as a government that it's in our interest to do so. What I'm saying is there are other areas where we should consider whether it's in our interest to do the same and align with the single market. Now that needs to be considered on a sort of issue by issue, sectorby sector basis. Um but we've already done it with food and agriculture and that will be implemented this year.

That'll be another turning the corner moment as we get closer. What I would say about the customs union is that um I argued for a customs union for many years with the EU, but a lot of water has now gone under the bridge. I do understand why people are saying wouldn't it be better to go to the customs union. Um I actually think that now we've done deals with the um US which are in our national interest. Now we've done deals with India which are in our national interest.

um we are better looking to the single market rather than the customs union for our further alignment and it wouldn't be in our interest now to give up.

No, but we are looking at a youth mobility scheme which will be for young people to travel to work to um enjoy themselves in different European countries to have that experience. both our young people going to Europe, Europeans coming here, we've committed to that in principle. That is a good thing. I do think young people should have that opportunity. The question now will be uh what are the numbers?

What are the ages? What's the duration of the

Well, no. We're in the negotiations with the EU at the moment as to what that looks like. But have we committed in principle to young people having a limited um period of time when they can travel and work and experience other European countries? Yes, we have. I think that's a good thing.

That is not the return to freedom of movement. We're not going back to freedom of movement. But I personally think that young people having that opportunity is a very good thing.

Yes, of course.

Well, on asylum hotels, um, at their height there were 400 hotels and now there are about 197. Now, some of that some of that was before we came into power. I acknowledge that. But I think it is important with the hotels to just um remind ourselves what the sole cause of the hotels was. The last government didn't process asylum claims.

This was an absurd policy. I'm really pleased. We've removed uh 50,000 since we've been in office. These numbers are record numbers for the best part of a decade and I'm really pleased about that. But there's no alternative.

I have said I want to end asylum hotels by the end of this parliament. Well, that's what our manifest was.

And therefore, I've said uh to the system, to the relevant departments, I want to see that brought forward. I want to shorten that. Well, as soon as possible, but no longer the end of parliament. bring it forward. Um I want us to close hotels.

I think over coming months you'll see um evidence uh of that because the frustr you know the frustration of taxpayers that because of a mess left by the last government we've got tens of thousands of people who uh in limbo they're the taxpayers paying for their accommodation because the last government wouldn't process their claim. Not good enough.

Um and we need we need to I think advance uh on um the closure of asylum hotels where it was well I don't want to set a date Laura until we're absolutely sure that we can meet that date. What I do want to say is I'm determined we'll close them. Um and I have pushed the departments to say I want to see that timeline brought forward. I want to see this happening more quickly and as we turn a corner into 2026 you'll see evidence of that.

I certainly hope so. And obviously this starts with a caveat that none of this is certain. There's no straight road to what we all want to see, which is a just and lasting peace. I did speak to President Zilinsky just an hour or so um ago. Um I think that he's right in saying we're 90% of the way there, so that is a good thing.

I think that we're probably closer now than we've been for months, if not since the beginning of this conflict. As I say, there's always a caveat with me because we can't be certain. The sticking points are one, the security guarantees because um what is really important to Ukraine, to Europe, and the and to the UK is that um any deal if it's reached sticks and is lasting.

I think that we're much further advanced on that issue than we were um ever before. Um so serious progress um on the American and on the coalition are willing to a point now where one of the discussions we'll have on Tuesday is how do we integrate um what the Americans are putting on the table with what the coalition of willing countries have already American forces and European forces.

We we we've had military planning uh we've got military plans in place. So the question we're now on is how do we integrate those security guarantees that's a long way further forward than we were when we set up the coalition the willing the other sticking point of course is territory and daetsk in in particular um and I'm really really clear that issues um of territory have to be for Ukraine without being over optimistic because these things can move around. I do I mean 2026 seems to me the year in which we could make significant progress towards peace in Ukraine and what a difference that will make to the United Kingdom because people often say to me well you're spending a lot of time on Ukraine um what about the issues back at home they're directly linked. So to take energy costs they doubled at the beginning of this conflict back in this country they're still 40% higher as a result of the conflict. So every month through the letter box people are um paying more because of the conflict.

So it's in our interests uh to find a lasting peaceful solution to this conflict.

Well, I want to get all the material facts together and we simply haven't got the full picture uh at the moment. It's fast moving um and we need to piece that together. I can be really clear with you that there was no UK involvement in this operation and obviously we're working um in relation to British citizens and nationals who were there with our embassy. But we need to establish full um picture. I then need to speak to President Trump.

I need to speak to our allies. Um but I don't shy away from this. I've been um a lifelong advocate of international law and the importance of compliance with international um law, but um I want to ensure that I've got all the facts at my disposal. Um and we haven't got that at the moment. Um and we need to get that before we um come to a decision about um the consequences uh in relation to uh the actions that have been taken.

Well, I I want to um with the government um we take this very seriously. I want to establish all the facts. That's what we're doing. working within our own teams, working um with our US counterparts and of course I want to discuss this with allies. So I'm simply saying my preferred course of action is to make sure I've got all the facts at my disposal uh in relation to this and it's fast moving.

We clearly haven't got those facts at our disposal at the moment. Um and I want to be in that position.

Well, two responses to that. Firstly, I do think that we're in a more volatile world than we have been for many, many years. And I'm really struck by the fact that what is happening internationally has much more of a direct impact on the UK than at any time that most of us can remember. And there are various reasons for that. There are conflicts around the world.

Um there's climate issues um going on. They're all impacting back on the UK. And that's why um whenever I'm uh abroad on international work, I'm thinking about what's the impact back on the UK in relation to the

Yeah. relationship um between the US and the UK is one of the closest relationships in the world. It is vitally important for our defense, for our security, for our intelligence. It is my responsibility to make sure that relationship works um as the prime minister of this country working with the president of the United States. Um and um not only have I stepped up to that responsibility, um I have made it my business and I do get on with President Trump.

Well, Laura, under the last government, we saw constant chopping and changing of leadership of teams. It caused utter chaos. Utter chaos. And it's uh amongst the reasons that the tries were booted out so uh effectively at the last election. Nobody but nobody wants to go back to that.

It's not in our national interest. uh we know from that evidence uh what happens if you go down that chaotic path.

No.

Well, almost every week somebody writes that this is the worst week in politics. You can't have 52 worst weeks in politics. You don't win the general you don't win the general election on Twitter. Um and so there is an element in which you do have to just rise above that and remind yourself what's the change we've actually brought about. Um how's that made a material difference to people's lives?

I'm really proud of that. I'm really proud of what we're doing on child care, on um on lifting children out of poverty, on getting that record investment in, championing apprenticeships so young people can have the chance, we don't just walk past them. I'm proud of all that change. That's why I came into politics uh to do. I had nine years in opposition, most frustrating nine years of my life.

Um and I wouldn't swap a single day uh of being in power for a decade of being in opposition.