Category Archives: Economic policy

UK politics: Burnham denies preventing ministers from speaking about plans for closer relationship with EU – as it happened

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Prime minister wrote to ministers saying he did not want them to ‘advocate for specific options or opine on the likely outcome of the process’

Selling nicotine-free vapes to children under the age of 18 has become illegal from today, the government has said.

Children were already banned from buying vapes containing nicotine. But, under the Tobacco and Vapes Act, shops across the UK will now be banned from selling nicotine-free vapes, and nicotine pouches, to children.

Vaping can be a way to help established adult smokers who are already addicted to nicotine from tobacco to swap to a less dangerous product. Vaping is considered safer than smoking, but that is a low bar. Vapes should therefore never be used by children or non-smokers.

Some children have already come to harm from bad reactions to vapes. The long-term health harms of vaping in today’s children will only become clear over time. They are however unlikely to be good; inhaling multiple, often heated, chemicals into the lungs may well do irreversible harm.

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Budget 2026: £100 energy payment for millions and rise in bank tax as watchdog warns on stalling living standards – as it happened

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OBR says that living standards are forecast to rise by just 1% over the whole post-Covid decade

Martin Lewis said that, when he met John Healey this morning, the chancellor said that, having removed standing charges from gas bills, he would also like to get rid of them from electricity bills. Lewis said:

The chancellor said he will be talking to Ofgem about how they get rid of the charge on electricity as well, but that is ‘trickier’ apparently and will take longer.

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I would like to rejoin EU, says Burnham, but ‘British public are the bosses’ – UK politics live

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PM says talking about changing the relationship with the bloc would not be divisive but ‘can start to bring people together’

Speaking at his rough sleeping summit in Downing Street this morning, Andy Burnham expanded on the claim he made on Good Morning Britain about tackling rough sleeping being cheaper than ignoring the problem. (See 11.13am.)

He said:

We’ve also got to be conscious when we speak to the rest of the country, the taxpayers of this country, that actually to leave people sleeping rough has financial consequences. It doesn’t work for anybody and it doesn’t work for the public purse, because if you leave people in a position where they are in and out of A&E, and in and out of a hospital bed, that doesn’t make sense for anybody.

There is a rock-solid business case to do something to end homelessness, to put people on a path to recovery, so that they can contribute once again. And that should be the thinking that we take to this conversation.

Burnham is throwing another £432m at a problem he failed to solve in Greater Manchester. Under Labour, rough sleeping has hit record highs – yet their answer is always more taxpayers’ money and more empty promises.

[John] Healey must use his budget this week to cut taxes for working people, get the ballooning benefits bill under control, and stop pushing up energy prices.

John Healey is expected to confirm on Wednesday that the full state pension will rise by £489 to £13,036 – equivalent to 3.9%.

However, the rise will push about one million people on low incomes who rely on the state pension above the £12,570 personal allowance threshold, meaning they would be dragged into paying income tax.

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Brexit deal is not good enough for British public, says Andy Burnham

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EU exit has damaged economy and failed to bring promised benefits, says PM, but he rules out big pre-election changes

Brexit has not “played out” like it was promised to the public, has weakened the economy and the current deal is not good enough, Andy Burnham has said, while ruling out any major changes in the current parliament.

The prime minister said Britain had ended up with a “harder Brexit than was proposed in the referendum campaign” and it had not helped to control the small boats crisis. Backing the home secretary’s tougher immigration rules, he said Brexit had weakened the UK’s ability to control its borders as it could no longer send people back to Europe.

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Healey’s first budget to include big devolution package to boost growth

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Chancellor will build on Burnham’s promise that local leaders in England will no longer have to ‘come cap in hand to Westminster’

Andy Burnham has promised that local leaders in England will no longer have to come “cap in hand to Westminster” ahead of a fresh drive to devolve spending power in next week’s budget.

In his statement on Wednesday, the chancellor, John Healey, will include plans for a new £1.5bn borrowing facility, to be drawn up in collaboration with mayors over the next two years.

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Minister says 32 government services offline due to PHP code flaw – UK politics live

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Organisations around the world scrambling to fix a critical security flaw in the programming language PHP used by the majority of websites

The Office for National Statistics has also published a report on the gender pay gap. It says:

The gender pay gap for full-time employees has continued to decline in the UK. It was 6.8% in April 2026, down from 7.2% in April 2025. This compares with 9.4% a decade ago and 16.4% 25 years ago.

Secondly, I asked Healey whether he sees the banks as making excessive profits, which would be the coherent justification for him to increase the surcharge on bank profits – as he is expected to do in the Budget next week.

He said: “You know the banks are the engine of investment in this country. The banks are doing well at the moment and that is good to see.

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‘If voters aren’t better off by the next election, we’re screwed’: Labour insiders voice fears over budget

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Some say party risks ‘looking twee’ by focusing on small fixes amid growing nervousness that budget lacks ambition

In the days since Labour’s annual conference, party insiders have been sharing a word cloud produced by the pollsters More in Common, which shows the phrases voters most associate with Andy Burnham.

Such polling is rarely flattering for politicians, and the prime minister’s version had its fair share of negatives. But one of the most prominent words in the cloud – and the one that has caught the imagination of Labour strategists – was “trying”.

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Tory plan to cut energy efficiency rule for builders will cost new home owners £1,000 a year, says thinktank – as it happened

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A researcher at a climate change think tank says the Conservative policy would be a ‘disaster for first time buyers’

Yesterday, as a gimmick, the Tories were handing out “Bottler Burnham” bottles of water (“0% strength”) to make a point about Burnham supposedly cancelling plans for an early election under pressure from the Tories. It is a version of a stunt they pulled in 2008 when they gave journalists bottles of a “Bottler Brown” beer. (Gordon Brown did pull plans for an early election at the last minute; this time the jibe is unfair, because there were no Burnham plans for an early election.)

The new bottles feature the image of Burnham produced by the Manchester artist Stan Chow.

The SNP’s effective ban on new nuclear energy in Scotland flies in the face of common-sense.

No part of Great Britain should be missing out on plans for new nuclear renewal.

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John Healey says Labour will stick to fiscal rules in first speech as chancellor – UK politics live

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The chancellor announced a new local apprenticeship service to boost opportunities for young people

Lisa O’Carroll is a senior Guardian correspondent.

The head of the SDLP, Claire Hanna, has called for an international mediator to resolve the continuing crisis over a unionist parade in a nationalist area close to Drumcree, the site of some of the worst violence of the troubles almost 30 years ago.

The truth is everybody has got to want to seek mediation and seek compromise and that’s what I’m trying to find, whether there’s that little chink on both sides that we can use to get to a decent compromise that means everybody can walk away with their head held high and their sense of honour.

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‘I can deliver’: Burnham pledges radical change on eve of Labour conference

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Exclusive: UK prime minister says delivering fiscal stability would be ‘crucial’ to be able to fix bigger problems

Andy Burnham has said he can deliver on his promise of radical change for the country despite severe economic headwinds, telling the Guardian: “There’s always things you can do; it’s just whether you’re prepared to do them.”

The prime minister acknowledged public finances were “challenging” ahead of next month’s budget but said delivering fiscal stability would be “crucial”, because only then would the government be able to focus on fixing bigger problems.

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Andy Burnham announces new homes scheme for first-time buyers

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Exclusive: Policy initiative for England will help more young people on to property ladder, prime minister tells Guardian

A new help-to-buy scheme aimed at giving first-time buyers who cannot rely on the “bank of mum and dad” is to be introduced in a big policy announcement by Andy Burnham.

The programme, called “Your first home”, is intended to help buyers in England who have a regular income but have been unable to save for a large deposit or don’t have financial support from their family.

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Healey appoints Labour manifesto writer, fuelling election speculation

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Exclusive: Economist Ravinder Athwal who worked in Keir Starmer’s team is poached from Flint Global

Ravinder Athwal, the economist who wrote Labour’s 2024 manifesto, is taking on a senior role as an adviser to John Healey, in a move likely to fuel speculation about an early general election.

The chancellor is keen to beef up his team before the critical budget on 28 October, as the economy is buffeted by high oil prices and rising government borrowing costs.

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UK losing up to £6.5bn a year in EU trade due to mismatched product rules

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IPPR finds failure to align testing standards has forced companies to abandon exporting to EU and is costing costing 0.18% of national income

The UK is losing out on annual exports to the EU that could be worth as much as £6.5bn without a deal with Brussels that allows manufacturers to jettison duplicate product testing.

In the latest attempt to calculate the loss of trade with the EU after Brexit, the IPPR thinktank said many companies have given up selling goods to the EU or set up subsidiaries inside the trade bloc after successive governments failed to secure a mutual recognition agreement that would avoid the extra administration costs.

Motor vehicle and part exports would have been between £2.48bn and £3.42bn higher each year.

Electronic exports could have been between £1.17bn and £1.67bn higher.

Pharmaceutical exports would have had an estimated annual uplift of between £740m and £820m.

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Critics of UK government’s economic forecaster are ‘shooting the messenger’, say MPs

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Treasury committee rejects calls for fundamental reform of independent watchdog the Office for Budget Responsibility

Attacks on the government’s independent economic forecaster from left and right of the political spectrum are akin to “shooting the messenger”, according to an influential group of MPs.

The Treasury committee rejected “siren calls to fundamentally reform” the Office for Budget Responsibility (OBR) and said it should not be blamed when policymakers had to make tough decisions because of tight public finances.

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UK borrows £18bn in August, putting pressure on Healey before budget

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Some economists say it is now ‘inevitable’ that chancellor will need to raise taxes in the budget next month

The UK government borrowed a higher-than-expected £18.3bn last month, increasing the pressure on John Healey as he attempts to calm jittery bond markets before next month’s budget.

Some economists said it was “inevitable” that the chancellor would need to raise taxes on 28 October if he is to meet demands for extra spending on defence without further borrowing investors on international money markets.

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Andy Burnham does not rule out Brexit reversal being in next Labour manifesto

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PM says immediate focus is on rebuilding bridges with EU as he prepares for first meeting with Ursula von der Leyen

Andy Burnham has opened the door to fighting the next election on the UK rejoining the EU, but said his immediate priority was continuing to rebuild bridges with European allies.

The prime minister, who will hold his first meeting with the European Commission president, Ursula von der Leyen, on Tuesday, did not rule out including reversing Brexit in Labour’s next manifesto – but suggested the country should focus on securing closer trading ties first.

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George Osborne calls for UK to rejoin EU customs union and boost trade

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Ex-Tory chancellor says economy has ‘fallen off a cliff’ since Brexit but rejoining union could be ‘quite simple’

The former chancellor George Osborne said Britain’s economy had “fallen off a cliff” since Brexit and that rejoining the European Union’s customs union would be the fastest route to recovery.

Osborne, who was sacked as chancellor by Theresa May after being part of David Cameron’s cabinet at the time of the referendum, said it was important to rebuild links with the EU.

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UK chancellor urged to remove £100k childcare ‘cliff edge’ prompting parents to cut work hours

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Critics say threshold pushes higher-paid staff to cut back on work and often mothers to stop working to avoid losing entitlement

John Healey has been urged to fix the £100,000 childcare “cliff edge”, that means some higher-paid employees cut back on work to avoid losing their entitlement.

Since the latest expansion of taxpayer-funded childcare in 2024, families with young children in which both parents earn less than £100,000 a year can be entitled to 30 hours a week of care - or none at all, if one of them cross that threshold.

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Majority of Tory and Reform voters do not back cuts to disability benefits, survey finds

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Nearly half of respondents say spending on personal independence payments should be increased

There is little appetite for cuts to disability benefits even among Conservative and Reform voters, and proposals to reduce spending could prove politically risky, according to an authoritative national survey.

The British Social Attitudes (BSA) report found that while support for welfare spending as a whole had dipped sharply in recent years, just 7% of respondents backed cuts to disability benefits – and 49% said they should be increased.

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Camden Green councillor says he will fight Polanski to run in Starmer’s seat – UK politics live

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Hamza Chowdhury says he will challenge party leader and has received nominations from other Green councillors

Healey says Andy Burnham set out in his statement to MPs last week what he thought had gone wrong

The fundamentals of our economy [were] hollowed out through a series of past policy decisions, political power was centralised, weakening the relationships between the people, the businesses and the institutions who can make things happen beyond Whitehall. The economic enablers were privatised and outsourced, leaving accountability to a thicket of arm’s length bodies and regulators, too often without the predictability or the pace that underpins a thriving market economy. And our country was deindustrialised as the cost to make anything, to build anything here soared, and our dependence on unreliable sources grew, including in areas critical to our national security and sovereignty.

Let me be clear, I recognise that the costs of business, its energy bills, regulation, burdens, planning constraints, labour costs, have grown since Covid and I want to draw the line.

And whether it is the cost of business or the cost of living, the only way we deal with these in the long term is growth.

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