Category Archives: Politics

Liz Truss to attend first meeting of European Political Community

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Inaugural summit of EU initiative that aims to unite Europe on issues such as security and energy to take place in Prague

Liz Truss will attend the inaugural summit of the European Political Community (EPC) next week, an initiative by the EU aimed at uniting the continent to work together on security and other common projects.

The prime minister plans to attend the first EPC summit in Prague on 6 October, a No 10 source told the Guardian, despite her scepticism about the EU-led initiative.

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Germany unveils €200bn help for consumers and says it won’t follow UK’s route

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Finance minister announces €200bn fund to protect citizens from rising gas prices driven by Russia’s war in Ukraine

Germany’s finance minister has vowed that he will not follow the UK “down the path of an expansionary fiscal policy” as his government announced a €200bn (£177bn) fund designed to protect consumers and businesses from rising gas prices driven by Russia’s war in Ukraine.

Europe’s largest economy will reactivate an economic stabilising fund previously used during the global financial crisis and the coronavirus pandemic, said the chancellor, Olaf Scholz, at a joint press conference with the finance minister, Christian Lindner, and the economic minister, Robert Habeck, on Thursday afternoon.

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Treasury watchdog to ask Kwarteng to hand over growth forecasts

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Tory chair Mel Stride says watchdog needs to hear how chancellor will boost growth, and suggests one option might be via immigration

Kwasi Kwarteng will be called before parliament’s Treasury watchdog and asked to hand over independent growth forecasts, as its chairman said there is “not a very broad path” out of the current economic situation.

Mel Stride, a Conservative MP and chair of the Treasury committee, said Kwarteng was “very, very unlikely to reverse” the £45bn of unfunded permanent tax cuts he announced last Friday, even though that is an option. The alternative, he said, was to act quickly to “demonstrate to the markets that growth is realistic”. The third option would be deep cuts to public spending, but that would be difficult given the current pressure of inflation, Stride said.

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English district councils warn support services for poorest face axe

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Services such as debt advice and hardship funds under threat amid £400m bill caused by inflation

A network of councils in England is warning support services for families hit hardest by the cost of living crisis face being axed amid an unexpected £400m bill caused by soaring inflation.

Services that district councils have no legal obligation to provide – such as debt and benefits advice, hardship funds for families, homelessness prevention projects and help hubs for people facing poverty – are under threat.

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Most students think UK universities protect free speech, survey finds

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King’s College London finds 65% believe campuses places of ‘robust debate’ – but growing number disagrees

Most UK students say their universities are places of free speech and debate – although a growing number are aware of free speech being restricted on campus, a study published by King’s College London has found.

The analysis, by KCL’s Policy Institute, found that 65% of students agreed that “free speech and robust debate are well protected in my university”, a higher proportion than the 63% who felt that way in a survey three years ago.

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Bank of England in £65bn scramble to avert financial crisis

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Bank of England left with no action but to intervene after Kwasi Kwarteng’s mini-budget

The Bank of England has been forced into emergency action to halt a run on Britain’s pension funds after the impact of Kwasi Kwarteng’s ill-received mini budget prompted fears of a 2008-style financial crisis.

Threadneedle Street said the fallout from a dramatic rise in government borrowing costs since the chancellor’s statement had left it with no choice but to intervene to protect the UK’s financial system.

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EU biometric entry system could multiply delays at Dover

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Additional requirements would be time-consuming and threaten capacity, Dover port boss says

Post-Brexit Channel border delays could multiply from next May, with a five-person vehicle being held for up to 10 minutes if the EU goes ahead with a planned biometric entry system, the Port of Dover has said.

The entry-exit system (EES), which is due to start in May 2023, will require all non-EU nationals to register their fingerprints and be photographed before entering the bloc.

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Truss ‘standing by Kwarteng’ as Treasury defends plans despite market turmoil – as it happened

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No 10 says PM has faith in chancellor, as Treasury minister says tax cuts are the ‘right plan’. This blog is now closed

Q: When would you get debt falling as a proprotion of GDP?

Starmer says Labour does want to get that down.

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Will Labour’s energy plans work?

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While there are questions about the pace of Labour’s proposals, criticism in rightwing newspapers is bizarrely wide of the mark

Labour’s ambitious plan for zero-carbon power by 2030 raises legitimate questions – which we’ll come to shortly – but the commentary in rightwing newspapers is bizarrely wide of the mark.

Perhaps the strangest was a Daily Telegraph editorial that claimed Labour’s plan “would make the country more dependent on imported gas, not less”. As should be obvious, the opposite is true.

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

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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.

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

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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.

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

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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.

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Homeowners warned of ‘significant’ rise in UK interest rates

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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.

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

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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?

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

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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.

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

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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.

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

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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”.

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

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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.

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Ethics rules for London mayor must be strengthened, review finds

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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.

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Home Office U-turn over deportation of Albanian asylum seekers

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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.

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