Prime minister accused of ‘another screeching U-turn’ having previously rejected calls to impose levy
Renewable power companies will have their revenues capped in England and Wales, after the government bowed to pressure to clamp down on runaway profits.
The announcement late on Tuesday night provoked immediate accusations that Downing Street had performed “another screeching U-turn” – having previously rejected calls to impose a windfall tax on power giants.
Continue reading...Pensions hedging crisis shows how the City never seems equipped to handle the next big financial hazard
Pension funds have found themselves embroiled in a byzantine world of exotic financial trading that many of them appear to have badly misunderstood.
On Tuesday, a third rescue mission in little more than a fortnight was announced by the Bank of England, which is reprising its role in the 2008 financial crisis as the City’s lifeboat.
Continue reading...Sterling falls more than a cent to below $1.10 after Andrew Bailey tells pension firms they have ‘got to get this done’
The pound has fallen sharply against the dollar after Andrew Bailey warned the Bank of England would not extend its emergency intervention in financial markets beyond this week, after the turmoil sparked by the government’s mini-budget.
Sterling skidded by more than a cent against the dollar to below $1.10 after the Bank’s governor insisted the £65bn scheme to purchase UK government bonds would not be continued beyond the deadline on Friday.
Continue reading...Latest updates: Labour leader hoping to put party on war footing ahead of next election
In the supreme court Dorothy Bain KC, the lord advocate, the Scottish government’s most senior law officer, is now setting out her case.
Here is the 50-page submission to the court setting our her case that was released in July.
Despite the political context of this reference, the questions the court has to decide are limited to technical questions of law. The court will decide them by applying legal principles.
The court will require time after the hearing to prepare its judgement. The hearing is the tip of the iceberg. We also have more than 8000 pages of written material to consider.
Therefore, as usual, is likely to be some months before we get our judgement.
Continue reading...Restructuring includes departure of Sam White, as party leader seeks to capitalise on slump in Tory support
Keir Starmer has announced a major shake-up of his political team, including the departure of his chief of staff, Sam White, saying Labour was being put on an immediate election footing.
Boosted by turmoil in the Conservative party and a string of hefty leads in opinion polls, Starmer said the party needed to move into the next phase of election readiness.
Continue reading...UK’s highest court asked to allow Scottish parliament to resolve ‘festering issue’ without Westminster approval
The UK’s highest court has been told the question of Scotland’s independence is a “live and significant one”, and has been urged to authorise a fresh referendum next year.
Dorothy Bain KC, the lord advocate and Scotland’s top law officer, told the supreme court on Tuesday morning that Scottish voters had consistently elected MPs and MSPs who backed independence.
Continue reading...UK spy chief says Kremlin does not appear to be engaged in preliminary steps despite Putin’s threats
The head of GCHQ has said the UK spy agency has not seen any indicators that Russia is preparing to use a tactical nuclear weapon in or around Ukraine despite recent bellicose statements from Vladimir Putin.
Jeremy Fleming, speaking on Tuesday morning, said it was one of GCHQ’s tasks to monitor whether the Kremlin was taking any of the preliminary steps needed before a tactical weapon was being made ready.
Continue reading...Exclusive: Meetings while in Saudi Arabia undisclosed due to ‘administrative oversight’, says business department
The chancellor, Kwasi Kwarteng, held undisclosed meetings with senior executives of Saudi Arabian firms when he was the business secretary, documents acquired by the Guardian show.
The meetings occurred in January, when Kwarteng visited the kingdom for a two-day trip under his previous ministerial role.
Continue reading...Veteran official gets permanent secretary role instead of reformer as fiscal plan is brought forward by three weeks
Liz Truss has overruled Kwasi Kwarteng’s top appointment at the Treasury and handed the role to a veteran Treasury official, one of a series of moves designed to calm markets and backbenchers.
It was also announced that the chancellor will set out plans to shore up the public finances three weeks earlier than planned and publish long-awaited forecasts by the Office for Budget Responsibility at the same time.
Continue reading...Files on Russian intelligence officer and ‘lady-killer’ Eugene Ivanov littered with reports of drunkenness
Eugene Ivanov, the Russian spy at the centre of the 1963 Profumo scandal, was a philandering alcoholic whose weakness for women and drink M15 hoped to exploit to get him to defect, but who ended up toppling the Macmillan government by chance, according to newly released intelligence files.
He arrived at the Russian embassy in London as assistant naval attache in 1960 but M15 suspected he was an intelligence officer, partly because he didn’t seem to know much about ships and also he carried an umbrella.
Continue reading...IFS says Kwasi Kwarteng’s mini-budget will leave ministers making serious reductions in public services
Kwasi Kwarteng will need to find £60bn of savings by 2026 to fill the gap left by unfunded tax cuts and the costs of extra borrowing triggered by a panicked reaction on international money markets to the chancellor’s “mini-budget”, according to the Institute for Fiscal Studies.
The UK will also struggle to hit the chancellor’s 2.5% growth target, with economic forecasts by the investment bank Citigroup that the IFS uses to underpin its analysis showing the UK will struggle to grow at more than 0.8% on average over the next five years.
Continue reading...Exclusive: Tory MPs warn PM she would lose vote on increasing benefits only in line with earnings rather than inflation
Liz Truss is teetering on the edge of performing another big U-turn as Tory MPs warned she would lose a vote on delivering a real-terms cut to benefits while new research showed the move could push an extra 450,000 people into poverty.
Despite desperate pleas for party unity from senior ministers after weeks of bitter infighting, the row over welfare threatened to overshadow the prime minister’s attempt to reassert her authority when the Commons returns from recess on Tuesday.
Continue reading...Exclusive: Lib Dems accuse PM of ‘taking taxpayer for a ride’ with expense of 20 overseas trips between January and June this year
Liz Truss racked up a bill of almost £2m on overseas visits during her final months as foreign secretary, according to new analysis that the Liberal Democrats said showed she had “quite literally been taking the taxpayer for a ride”.
In 20 trips during the first six months of the year, a total of £1.8m was spent, despite the now prime minister’s call for prudence with public money and government departments being told to find “efficiency savings”.
Continue reading...The PM and chancellor will try to stop panic spreading through the party after their high-risk economic plan threatens a ‘death spiral’
The prime minister, Liz Truss, and the chancellor, Kwasi Kwarteng, will face the wrath of Tory MPs at a succession of crisis meetings in parliament this week as their high-risk economic policies hit their poll ratings and spread panic in all wings of the party.
After a turbulent first five weeks at No 10 and an ill-disciplined, chaotic annual conference in Birmingham last week, Truss is expected to address the 1922 Committee of Tory backbenchers on Wednesday evening after taking on Keir Starmer at prime minister’s questions.
Continue reading...Tory minister, who denies any wrongdoing, reported for incident in hotel bar during party’s conference
The trade minister Conor Burns was sacked from the government and suspended as a Conservative MP after he was seen touching a young man’s thigh in a Tory conference hotel bar, it has been claimed.
According to the BBC on Saturday, an eyewitness said the former minister was seen with the man in the early hours of Tuesday in the Hyatt Regency hotel bar in Birmingham, which was a popular venue for conference attenders. Burns has denied any wrongdoing.
Continue reading...PM’s -47 net rating in Opinium poll worse than Boris Johnson’s at height of Partygate scandal
Liz Truss’s personal ratings are now even worse than those recorded for Boris Johnson at the height of the Partygate scandal, according to another Observer poll which will cause alarm among Tory MPs.
Truss’s personal approval rating of -47 is now the worst ever recorded for a prime minister in an Opinium poll for the Observer. It is a worse rating than that recorded for Johnson during Partygate and Theresa May in the weeks before her resignation.
Continue reading...US imposed ban on British meat during BSE epidemic but restriction was lifted earlier this year
British lamb has been exported to the US for the first time in more than 20 years after a ban put in place during the BSE epidemic was lifted.
US president Joe Biden committed to scrapping the ban on imports of British meat in September 2021.
Continue reading...Former Spice Girl, who attended Tory conference, makes apparent online criticism of Conor Burns
Mel B has made an apparent criticism of sacked Tory minister Conor Burns’s behaviour during a conversation with her at the Conservative party conference.
Burns was asked to step down from his role as a minister of state in the trade department and had the Conservative whip withdrawn pending an investigation into an allegation of “serious misconduct” on Friday, Downing Street said. He later denied having ever met the former Spice Girl singer.
Continue reading...Archbishop of Canterbury joins others worried about impact Tel Aviv switch could have on Palestinian peace talks
The archbishop of Canterbury has expressed concern about the potential for the British embassy to be moved from Tel Aviv to Jerusalem.
The UK prime minister, Liz Truss, told her Israeli counterpart Yair Lapid at the United Nations summit in New York last month that she was considering the relocation.
Continue reading...Chancellor must top up budgets or face industrial action and further recruitment issues, thinktank warns
More than 100,000 public sector workers would lose their jobs this year if the government refuses to fund higher than expected pay awards for nurses, doctors, teachers and care workers, according to the Institute for Fiscal Studies.
The IFS said the chancellor, Kwasi Kwarteng, faced a choice of either topping up public sector budgets or accepting the likelihood of industrial action, further problems recruiting and retaining staff, and a decline in quality of services already under extreme strain.
Continue reading...