Labour promise of free breakfasts ‘first step on the road to rebuilding childcare’

Shadow education secretary Bridget Phillipson to announce plan to fund breakfast clubs in every primary school

Labour will rebuild a new childcare system to ease the pressure on parents from the “end of parental leave right through to the end of primary school”, shadow education secretary Bridget Phillipson said, starting with a pledge on free breakfast clubs.

Phillipson will announce on Wednesday that fully funded breakfast clubs for every primary school in England would be funded by the revenues raised by restoring the top rate of income tax to 45p, if Labour were elected.

Continue reading...

‘Great British Railways is dead’: rail industry at lowest ebb since the days of Railtrack

Grant Shapps ‘revolutionary’ GBR plan faces huge challenges

Barely 18 months have elapsed since a starry-eyed Grant Shapps unveiled the blueprint for a “revolutionary” Great British Railways, but it already has the flavour of an optimistic misnomer. Even an adequate British railway would be welcomed by those passengers stranded by everything from Avanti’s collapse to failing infrastructure and unprecedented strikes.

Only a fraction of the timetabled trains continue to run between London and Britain’s biggest cities, though operator Avanti has pledged to start its recovery to full service this week. National strikes, the likes of which had not been seen for 30 years, are now a regular occurrence, with little sign of breakthrough in talks. Infrastructure projects have been pared back or shelved, with the public all but gaslit with reannounced schemes for new railways.

Continue reading...

Truss and Kwarteng had row over sterling crisis response, say Whitehall sources

First signs of friction between PM and chancellor emerge as pound falls to historic low following mini-budget

The first signs of friction between Liz Truss and Kwasi Kwarteng over how to deal with the tanking pound have emerged, after the pair met in No 10 to thrash out how to respond on Monday.

Downing Street rebuffed talk of a split between No 10 and No 11 over how to deal with the market reaction to the mini-budget, and denied that there was a row.

Continue reading...

Homeowners warned of ‘significant’ rise in UK interest rates

Bank of England’s chief economist speaks out after mini-budget, with financial markets expecting rates to reach up to 6%

Britain’s homeowners have been warned to brace themselves for a “significant” increase in interest rates from the Bank of England in response to Kwasi Kwarteng’s tax-cutting mini-budget last week.

Huw Pill, Threadneedle Street’s chief economist, added to the concerns of millions of mortgage payers who have already seen hundreds of home loan products pulled by lenders in anticipation of a big increase in the cost of borrowing.

Continue reading...

Great British Energy: what is it, what would it do and how would it be funded?

The details behind Keir Starmer’s proposed publicly owned energy company when Labour take power

The key pledge of Keir Starmer’s Labour conference speech was the proposed launch of Great British Energy, a publicly owned energy company to invest in clean UK power as part of the party’s commitment to “fight the Tories on economic growth”. But how does it work, and is it the same as renationalising energy?

Continue reading...

‘Fiscal sustainability’ plus rising borrowing costs could add up to cuts

To make the sums work, some suggest Kwasi Kwarteng may include deep spending reductions in his medium-term fiscal plan

When Kwasi Kwarteng met City figures on Tuesday, the Treasury said he had “reiterated the government’s commitment to fiscal sustainability”: though the grim faces of attendees in the official photos suggested they may not have been terribly reassured.

Some analysts are now warning that with borrowing costs rising sharply, and the chancellor determined not to water down his radical tax plans, “fiscal sustainability” points to one thing: spending cuts.

Continue reading...

Keir Starmer promises to launch publicly-owned UK energy company as he hails ‘Labour moment’ – UK politics live

Latest updates: the Labour party leader used his conference speech to spell out his plan for the UK

The decision to pay Liz Truss’s new chief of staff, Mark Fullbrook, through a private company has been dropped after criticism from within the Conservatives as well as from opposition parties.

The government admitted over the weekend that Fullbrook would be paid through his lobbying firm, a move that could have helped him avoid paying tax. He had previously claimed the firm had stopped all commercial activities.

The world we are heading for is a bumpy few weeks. The chancellor is now going to have quite a tough time because he has now set out plans to balance the books in November. That is going to be very hard.

Actually balancing the books in November is going to be harder than it would have been to show you are balancing the books last week because higher interest rates will make it harder to do. You might need £15bn worth of tough choices now that you didn’t need last Friday.

In the end, lower taxes will mean worse public services, or other people’s taxes having to go up, and it is those choices and ducking those choices that markets are looking at and saying that is not what serious policymaking looks like.

Continue reading...

Labour says financial turmoil is ‘just the tip of the iceberg’

Shadow health secretary condemns Kwasi Kwarteng’s ‘reckless gamble’ and says Labour ‘cavalry is coming’

The shadow health secretary, Wes Streeting, has said the “cavalry is coming” with the Labour party as he warned that the current turmoil on financial markets was “just the tip of the iceberg”.

Streeting criticised last week’s mini-budget from the chancellor, Kwasi Kwarteng, as a “reckless gamble”.

Continue reading...

Climate complacency has left firefighters ill-prepared, says union chief

Matt Wrack of Fire Brigades Union says ‘historic cuts’ have angered and demoralised his members

A “horrible complacency” about the impact of the climate emergency on the fire service has left it under-funded and ill-prepared, the general secretary of the Fire Brigades Union has warned.

Matt Wrack said firefighters were at the sharp end of tackling the impact of climate change and warned that this summer’s wildfires had to act as a “wake-up call” to the UK government to engage with those on the frontline.

Continue reading...

Ethics rules for London mayor must be strengthened, review finds

Boris Johnson may have failed to meet standard of public life when mayor over links to Jennifer Arcuri, GLA finds

Ethics rules for the London mayor must be strengthened as Boris Johnson may have failed to meet the standard expected of public figures over his failure to declare personal links to the US businesswoman Jennifer Arcuri, an inquiry into the affair has found.

An investigation by the Greater London Authority’s oversight committee said Johnson had opened himself up to “a perception of lack of due process and favouritism” over Arcuri’s inclusion on trade missions in an unofficial capacity.

Continue reading...

Home Office U-turn over deportation of Albanian asylum seekers

Letter undermines Priti Patel’s claim that Albanians arriving with ‘spurious’ claims could be removed quickly

The Home Office has conceded that it does not have the right to fast-track the deportation of Albanian asylum seekers after their arrival in the UK, in an abrupt policy U-turn.

Priti Patel, the former home secretary, signed a deal with the Albanian government in August to return those who arrive illegally. She claimed it meant the UK could quickly return asylum seekers who arrived in the UK and made “spurious” claims.

Continue reading...

Labour delegates urged to back PR to end ‘trickle-down democracy’ – UK politics live

Latest updates: Labour delegate says current electoral system allows Tories to get away with measures like ‘protecting bankers’ bonuses’

In June, as the RMT union launched what has become an ongoing series of strikes, Keir Starmer ordered Labour frontbenchers and shadow ministerial aides not to join picket lines. This infuriated leftwing Labour MPs and some union leaders, notably Sharon Graham, the general secretary of Unite.

At one point it looked as if there might be a huge row at conference about whether shadow ministers should or should not be allowed to join picket lines. But, in an interview with the Today programme this morning, Graham suggested that a truce of sorts has been agreed – even if the two sides do not entirely see eye to eye.

My issue about this … isn’t necessarily around one person on a picket line because, quite frankly, that isn’t the issue. The issue is the mood music [ordering shadow ministers not to join picket lines] suggests. It suggests a mood music that being on the picket line is somehow a bad thing. It’s a naughty step situation.

The party who is there to stick up for workers should not give the impression – that’s the problem, it gives the impression – that they are saying picket lines are not the place to be. And I think that it was unfortunate. I think it was a mistake. I think, to be honest with you, Labour knows it was a mistake. And I don’t actually think it’s holdable.

When people go on strike it is a last resort at the end of negotiations. And I can quite understand how people are driven to that … I support the right of individuals to go on strike, I support the trade unions doing the job that they are doing in representing their members.

I’m incredibly disappointed that as delegates we’ve been excluded from this key part of the conference’s democratic process.

This is an unprecedented move silencing members’ voices. Our CLP sent us here to Liverpool to promote our motion on public ownership and a Green New Deal, but we’ve been unfairly denied that right.

Continue reading...

City sceptical about benefits of scrapping cap on banker bonuses

Sources at largest banks say the did not lobby for move nor expect it to result in major changes to pay packets

When City of London executives were summoned to No 11 Downing Street earlier this month, they were promised reforms that would boost growth, attract talented bankers and usher a new era of prosperity for financial services.

But what the chancellor, Kwasi Kwarteng, failed to mention to bank bosses was that their pay would become a lightning rod for controversy in the mini-budget that followed.

Continue reading...

Monday at the Labour conference: the highs and lows

Against a backdrop of the falling pound, the opposition sets out an alternative vision

“It will fall to us to fix the damage the Tories have done. We have done it before, we will do it again” – Rachel Reeves, the shadow chancellor, making her speech to conference on the day the pound hit a record low against the dollar.

Continue reading...

Party conference will be last before Labour governs, says Andy Burnham

Greater Manchester mayor predicts regaining lost ‘red wall’ seats in Q&A with Guardian editor-in-chief

Andy Burnham has said Labour is on the brink of government, predicting the party will win back all of the “red wall” seats it lost in 2019.

The Greater Manchester mayor also doubled down on calls for Labour to reinstate the 20p tax rate after planned cuts by Liz Truss, saying the money should be directed to public sector pay, and reiterated calls for nationalisation of the railways, calling it a “no-brainer”.

Continue reading...

Liz Truss ‘plans to loosen immigration rules to boost UK economy’

PM expected to expand shortage occupation list to help businesses fill jobs amid recession warnings

Liz Truss is expected to loosen immigration rules in an attempt to stimulate economic growth amid warnings of a recession.

The prime minister is set to expand the government’s shortage occupation list in order to help businesses fill vacancies by recruiting overseas workers with less bureaucracy.

Continue reading...

Keir Starmer defies call for changes to first past the post voting system

The Labour leader said electoral reform was not a priority and refused to make it one of the party’s election manifesto pledges

Keir Starmer has ruled out including any support for a change in the voting system in Labour’s election manifesto, as senior figures from across the party joined calls to back proportional representation (PR).

Labour’s annual conference, under way in Liverpool, is expected to back a motion calling for the party to drop its historical support for the first past the post system amid concerns that it has locked Labour out of power.

Continue reading...

Keir Starmer unveils green growth plan to counter Liz Truss’s tax cuts

Labour pledges a revolution in green energy to ‘boost jobs and slash emissions’

Keir Starmer will pledge to deliver a new era of economic growth and permanently lower energy bills by turning the UK into an independent green “superpower” before 2030, through a massive expansion of wind and solar energy.

Announcing details of the plan exclusively to the Observer, the Labour leader says he will double the amount of onshore wind, triple solar and more than quadruple offshore wind power, “re-industrialising” the country to create a zero carbon, self-sufficient electricity system, by the end of this decade.

Continue reading...

Kwasi Kwarteng could borrow for the right reasons. These are the wrong ones

Money spent on the green transition or skills would reap a dividend. But this cash is just going to the rich

The billions of pounds of extra borrowing signalled by Kwasi Kwarteng in his not-so-mini budget can be justified as long as the money isn’t flushed down the toilet.

Funds for renewable energy projects or to boost skills training would generate a return over the next decade.

Continue reading...

Birmingham broods over Tory treachery as Conservative party conference looms

Tax cuts for the rich have not gone down well in Ladywood, the city constituency due to host the Conservatives’ annual gathering

Only the most bullish Conservative party strategist would have dared forecast the centre of Britain’s second-biggest city turning Tory anytime soon.

Yet as the real-life implications of the government’s mini-budget continued to crystallise on Saturday, anyone even contemplating a Conservative victory in central Birmingham should now be judged beyond delusional.

Continue reading...