Office for Budget Responsibility says Rachel Reeves ‘had every right to expect that the [report] would not be publicly available until she sat down at the end of her budget speech’
Q: Yesterday you said Rachel Reeves was lying. Today you are saying she gave out false information. Are you still accusing her of being a liar?
Badenoch replies: “Yes.”
Continue reading...MP for Hampstead and Highgate in London denies allegations and condemns ‘flawed and farcical’ trial
A court in Bangladesh has sentenced the British MP Tulip Siddiq to two years in jail after a judge ruled she was complicit in corrupt land deals with her aunt, the country’s deposed prime minister Sheikh Hasina.
In a ruling on Monday, a judge found Siddiq, the Labour MP for Hampstead and Highgate, guilty of misusing her “special influence” as a British politician to coerce Hasina into giving valuable pieces of land to her mother, brother and sister.
Continue reading...Spokesperson says move – seen as a victory for Zarah Sultana – shows organisation is ‘a truly member-led party’
Kemi Badenoch has reiterated her calls for the chancellor to resign on the BBC’s Sunday with Laura Kuenssberg programme, after accusing Rachel Reeves of breaking promises not to raise taxes.
In this year’s budget, Reeves froze tax thresholds for three years longer than previously planned, meaning that as wages rise more people will have to start paying income tax.
The chancellor called an emergency press conference telling everyone about how terrible the state of the finances were and now we have seen that the OBR had told her the complete opposite. She was raising taxes to pay for welfare.
The only thing that was unfunded was the welfare payments which she has made and she’s doing it on the backs of a lot of people out there who are working very hard and getting poorer. And because of that, I believe she should resign.
The shadow chancellor, Mel Stride, has written to the FCA (the Financial Conduct Authority). Hopefully there will be an investigation, because it looks like what she was doing was trying to pitch-roll her budget – tell everyone how awful it would be and then they wouldn’t be as upset when she finally announced it – and still sneak in those tax rises to pay for welfare. That’s not how we should be running this process.
Continue reading...Peter Kyle denies unfair dismissal policy U-turn is breach of manifesto pledge but unions and Labour MPs criticise decision
On Wednesday Kemi Badenoch had to respond to Rachel Reeves’s speech because, by convention, with budgets that’s a job for the leader of the opposition, not the shadow chancellor. And normally no one takes much interest, because what’s in the budget is more interesting.
But Badenoch’s speech has attracted a lot of attention, for two reasons. First, even by Badenoch’s standards, it was unusually personal, and brutal. The full text is here, but it’s best to watch it to get a full sense of what it was like. As an example of precision, parliamentary viciousness, it was like Norman Tebbit in the 1970s. Some people were appalled, but Tories have said it was easily her best Commons peformance to date and that view is shared by others too. Even Alastair Campbell and Rory Stewart, the gods of centrist punditry, judged it to be highly effective.
When I walked in for prime minister’s questions, I thought, ‘Oh my goodness, she looks absolutely broken, this OBR leak must be very upsetting for her, I’ll pull my punches.’
And then she launched into the most extraordinary tirade against the Conservatives in her own speech. So she started it … And I thought, ‘Well, I’m not pulling any punches now.’
Well, you can’t please everybody.
But I also have to deal with a barrage of abuse every single week at prime minister’s questions. The prime minister can get very personal. Labour MPs shouting – there’s only 120 Conservatives. There’s well over 400 Labour MPs.
Continue reading...While some call budget ‘tactical victory’, few MPs believe it is enough for Labour to beat Reform
Labour MPs have said they believe Keir Starmer’s leadership is safe until at least the May elections, after a budget that avoided any major damaging measures but which few MPs believe will revive the party’s fortunes.
More than a dozen previously loyal MPs told the Guardian they did not believe the budget would shift the fundamentals required for the party to beat Reform. “It only delays what is inevitable,” one minister said.
Continue reading...Flagship Labour plan to be replaced with six-month threshold after Peter Kyle vows to not let businesses ‘lose’ under new law
The government is to ditch its flagship policy from the workers’ rights bill, removing the right to protection from unfair dismissal from the first day of employment and replacing it with a six-month threshold.
The move comes after the business secretary, Peter Kyle, told businesses at the CBI conference this week that he would listen to concerns about the effects of the law change on hiring. A trade union source told the Guardian: “They’ve capitulated and there may be more to come.”
Continue reading...PM says: ‘We kept to our manifesto in terms of what we’ve promised. But I accept the challenge that we’ve asked everybody to contribute’
The Conservative party is attacking the budget on the grounds that Rachel Reeves is putting up taxes supposedly to fund more spending on benefit claimants. Even though the rationale for this claim is questionable, the Tories were making it before the budget was announced, and Kemi Badenoch firmed it up last night, claiming it was a “Benefits Street budget”.
On LBC this morning, asked if the budget meant “alarm clock Britain paying for Benefits Street”, Reeves said she did not accept that. She said 60% of the families that would benefit from the removal of the two-child benefit cap (the most expensive welfare announcement in the budget) were in work.
I don’t think children should be punished by this pernicious policy any longer. And the cost to society of this is huge, the cost for councils of temporary accommodation, when people can no longer afford the rent, putting families in B&Bs, kids having to move to school all the time because parents have moved from B&B to another lot of temporary accommodation, and there’s costs for years to come, because all the evidence shows that kids that are growing up poor are less likely to get into work and more reliant on the welfare state in the future for them.
So this is a good investment in those kids, to give them the chances that I want for my kids, and everyone wants for their kids. It also saves money for taxpayers on that accommodation, on those additional health costs, and ensuring that those kids grow up to be productive adults.
Continue reading...By the time the chancellor reached the dispatch box, the OBR had accidentally published its verdict in full online
Shortly before midday on Wednesday, a series of headlines about Rachel Reeves’s budget began appearing on the Reuters newswire, sending instant ripples though financial markets.
The details were jaw-dropping: they appeared to spell out the key policies of the chancellor’s budget more than 40 minutes before she was due to deliver them to a crowded Commons chamber.
Continue reading...By the time the chancellor reached the dispatch box, the OBR had accidentally published its verdict in full online
Shortly before midday on Wednesday, a series of headlines about Rachel Reeves’s budget began appearing on the Reuters newswire, sending instant ripples though financial markets.
The details were jaw-dropping: they appeared to spell out the key policies of the chancellor’s budget more than 40 minutes before she was due to deliver them to a crowded Commons chamber.
Continue reading...Government announces overnight levy ahead of tomorrow’s budget
John McFall is standing down early as Lord Speaker in the House of Lords so that he can care for his wife, Joan, who has was Parkinson’s. According to Sam Blewett and Bethany Dawson in their London Playbook briefing for Politico, the main candidates to replace him are Michael Forsyth, a rightwing Scottish secretary in the final two years of the John Major government, and Deborah Bull, a crossbencher and former Royal Opera House creative director. They reports:
Labour isn’t expected to put forward a candidate as McFall’s previous political affiliation means it’s seen as another party’s turn to rule the roost, Noah [Keate] writes in to say. Forsyth has garnered support from some Labour grandees who like his traditional approach and aversion to modernization while Bull has being promoted by some female peers keen for a woman to take charge. One Tory peer described Forsyth as a “political animal” who may struggle to encourage a consensus across the chamber. A list of candidates’ register of interests and election addresses (up to 300 words) will be emailed to all peers on Dec. 1. Watch your inboxes!
Transport secretary Heidi Alexander rejected a rival proposal from Arora Group, saying Heathrow’s own plans were “the most credible and deliverable option”.
The Heathrow proposals involve building a 3,500-metre runway and require a new M25 tunnel and bridges to be built 130 metres west of the existing motorway.
Following a comparative assessment of the remaining proposals for Heathrow expansion, the government’s view is that the Northwest runway scheme brought forward by Heathrow Airport Limited offers the most credible and deliverable option, principally due to the relative maturity of its proposal, the comparative level of confidence in the feasibility and resilience of its surface access plans, and the stronger comfort it provides in relation to the efficient, resilient and sustainable operations of the airport over the long-term.
The HAL scheme is considered comparatively more mature in its approach to road infrastructure. While the HAL scheme requires major works to the M25, assessment indicates that the HWL scheme would also have a considerable impact on the M25.
Continue reading...Plan to remove relief from scheme that helps provide cars for disabled people likely to concern some Labour MPs
Rachel Reeves is expected to press ahead with scrapping about £300m in tax breaks for the Motability scheme that helps provide cars for disabled people, in a move likely to spark concerns among some Labour MPs.
The Treasury was reported to have been considering axing tax breaks up to £1bn but savings will not be as high as that figure, with concerns among ministers that some policy options could have led to Motability’s collapse.
Continue reading...Chancellor admits economy ‘feels stuck’ for many as she signals intention to freeze income tax thresholds
Rachel Reeves has promised to “grip the cost of living” in the budget as she prepares to scrap the two-child welfare limit and freeze rail fares, while putting forward a multibillion-pound tax-raising package.
The chancellor is preparing to give her second budget on Wednesday after weeks of uncertainty about the scale of the tax rises she will need to impose to plug a financial hole of about £20bn.
Freezing income tax thresholds for an extra two years to 2030, bringing more people into higher tax bands as wages rise.
Making salary sacrifice schemes less generous, including those for pension contributions.
Bringing in higher tax on the most expensive properties, including a surcharge on the highest-value houses.
A pay-per-mile scheme on electric cars to help fill the tax gap from petrol duty as more people opt for green vehicles.
Continue reading...Many fear competition and diversity will be diminished as Daily Mail owner wins race to buy newspaper
As the dust settles from the battle for the ownership of the Daily Telegraph, one man has been left standing: Lord Rothermere, whose family have been a mainstay of British newspapers for more than a century.
“This is a very British stitch-up,” said Lionel Barber, the former editor of the Financial Times. “Lord Rothermere has played a very astute poker hand, he’s shown patience and he’s the big winner.”
Continue reading...It would be expedient for Reform to take Labour’s advice and disavow ‘Putin talking points’
The discovery of a pro-Russian asset, Nathan Gill, at the heart of a British political party reads like the plot of a John Le Carré novel.
Russia was long known to have been trying to interfere in foreign politics with online bots and cyber-disinformation over the past decade.
Continue reading...Chancellor says ‘We can’t just carry on like this and muddle through. We have to make some decisions to get on a different path’
Prime minister Keir Starmer had a bilateral meeting with South African president Cyril Ramaphosa on the sidelines of the G20 summit on Friday.
The two leaders discussed the 11-hour flight from London to Johannesburg in brief remarks in front of reporters, according to the PA news agency.
Energy bills are still far higher than five years ago, on top of sky-high mortgages and rents and prices in the shops.
The government has pledged time and time again to bring down energy bills – it is time for them to live up to their word and stop tinkering, committing to a real long term plan.
Liberal Democrats have a plan: we would slash energy bills in half by removing the renewables levy from bills, creating new energy loans for homeowners to insulate their homes and boosting renewables – the cheapest, cleanest and most popular form of energy.
The home secretary’s plans ‘may leave people in a sense of limbo and unable to integrate’, Burnham said
Andy Burnham, the mayor of Greater Manchester, is giving a speech in Salford this afternoon where he will set out details of his “good growth” plans, but he has already explained much of it overnight in a news release.
Explaining what his “new model of economic growth” is, the Greater Manchester Combined Authority (the body Burnham runs) says:
Over the past decade, the city region has become the fastest growing part of the UK economy, driven by a high-performing centre unrecognisable from even 15 years ago.
Our trailblazing devolution deals and unique partnership approach have fuelled annual growth of 3.1 per cent – more than double the rate of the country as a whole. A recent report from Oxford Economics praised Greater Manchester’s growth journey, calling us a “trailblazer for local devolution.”
A new strategic partnership between GMCA and GMPF [Greater Manchester Pension Fund] – the first of its kind in the country – will prioritise local investment and align the GMPF’s investment to our integrated pipeline. Projects in the integrated pipeline will be able to access patient capital that aims for sustainable growth and long-term impact.
We’ll invest in a way that makes the most of every pound, delivering social as well as economic benefits.
Our Greater Manchester baccalaureate is transforming technical education, giving young people a clear line of sight to high quality jobs in our growing economy, and we’re helping residents to live healthier, happier lives and access new employment and training opportunities through our Live Well approach.
Underpinning all this is the Bee Network – our safe, green and affordable public transport system, which is seamlessly connecting people and places like never before. Next year eight rail lines will be brought into the network, which already includes bus, rail, tram, and active travel routes.
I appreciate the support, but I couldn’t have brought forward a plan of the kind I brought forward today [his Manchester “good growth” plan] without being fully focused on my role as mayor of Greater Manchester.
And I’m providing leadership on growth, which is what I think the country needs, and is helpful to the government right now.
And we’re doing this in advance of the budget, I hope, to really bring to life the growth story for the government.
I would just finish by saying this; I think part of the country’s problem is the political culture of Westminster, which is playing out in front of us right now. You go to Manchester, and we’ve built a new economy, and a new way of doing politics, and more of that is what the country needs.
Continue reading...The Guardian spoke to more than a dozen contemporaries of Farage at Dulwich college, a public school in south London
Healey is now taking questions.
Q: How close are are we to war?
It is Labour that is the party of defence.
Continue reading...Health secretary says he is not comfortable with some elements of policy but that it is the right thing to do for the country
Wes Streeting has admitted he is not comfortable with forcibly deporting families under the home secretary’s migration plans, while maintaining it is still the right thing to do.
The health secretary said he thought the number of forced removals would be low under the proposed model, which is similar to Denmark’s, because there would be an increased financial incentive for people entering the UK illegally to return to their country of origin.
Continue reading...As Reform announces what it claims are £25bn in savings through cuts, Labour says ‘Farage’s fantasy numbers don’t add up’
Alf Dubs, the Labour peer and former MP who came to the UK on Kindertransport in 1939 and who campaigns on behalf of migrants, told the Today programme this morning that he was “depressed” by the asylum politicies announced by the government yesterday. He explained:
I find it upsetting that we’ve got to adopt such a hard line – what we need is a bit of compassion in our politics, and I think that some of the measures were going in the wrong direction, they won’t help.
The hard line approach will not, in fact, deter people from coming here – at least on the basis of people I spoke to in Calais, for example – I don’t think it will deter them.
I think there is a proper case for children, there’s a proper case for family reunion – when there are children who are on their own and who’ve got family in this country, then I think the right thing to do is to have family reunion and bringing children over here.
But to use children as a weapon, as the home secretary is doing, I think is a shabby thing – I’m lost for words, frankly, because my concern was that if we remove people who come here, what happens if they’ve had children in the meantime?
Continue reading...Labour MP calls government’s asylum plans ‘dystopian’ as home secretary announces measures in Commons
Momentum, the leftwing Labour group, has also denounced the government’s asylum plans. In a statement it says:
The home secretary’s new immigration plans are divisive and xenophobic.
Scapegoating migrants will not fix our public services or end austerity.
Draconian, unworkable and potentially illegal anti-asylum policies only feed Reform’s support.
The government has learnt nothing from the period since the general election.
Some of the legal changes being proposed are truly frightening:
Abolishing the right to a family life would ultimately affect many more people than asylum-seekers.
Continue reading...