Balancing UK’s welfare and defence spending ‘not zero-sum game’, minister says

Treasury minister James Murray hits back at George Robertson’s criticism over military budget

A Treasury minister has said balancing welfare and defence spending “is not a zero-sum game”, amid stark warnings that the UK will have to increase its military budget to ensure national security during global volatility.

James Murray, the chancellor’s deputy, said the government was pushing ahead with the biggest sustained increase in defence investments since the cold war, but he would not say when it would publish its delayed defence investment plan.

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Collapse of US-Iran talks heightens fears of prolonged energy shock

Oil prices and borrowing costs are expected to rise this week as tankers remain stranded in the Gulf

The failure of the US and Iran to reach a peace deal after marathon negotiations has put markets on alert for further oil and gas price rises.

With large numbers of oil tankers remaining stuck in the Gulf, the US vice-president, JD Vance, blamed the collapse of the talks on Tehran’s refusal to abandon its nuclear weapons programme, while Iranian sources hit back at “excessive” demands from Washington.

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‘You can feel it’: South Yorkshire revival gathers pace as new industries move in

From steel to screen, podcasts to defence, Sheffield’s economy is diversifying amid a wave of new investment

It has seen its fair share of Hollywood parties – albeit with a twist. Instead of champagne and caviar it is usually Guinness and scampi fries. Red carpet? There aren’t even cushions on the seats.

The tiny Sheffield pub, Fagan’s, has raised more than a few toasts in the last year as Adolescence, the Netflix hit made by two of its owners, scooped multiple awards at the Emmys and Golden Globes and became one of the world’s most-watched dramas.

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Keir Starmer faces Kemi Badenoch at prime minister’s questions – UK politics live

PM to face opposition leader and MPs in the House of Commons

Polanski says the government should be doing more to improve home insulation, and on the drive towards renewable energy.

And he says the government should commit to ensuring energy bills do not rise above the April-June price cap.

The government should guarantee right now that it will not allow energy bills to rise beyond the April-June price cap – instead setting aside approximately £8.4bn to prevent a rise of up to £300 per household that could be coming down the track.

No, it’s not cheap. But the alternative is unacceptable: if the price cap rises, we will see interest rate rises. Mortgage rates up. Bond yields up. And inflation up – and we will be back into the doom loop that has done untold damage to our economy and caused misery for households across the UK for years now.

There are ways to pay. Instead of scrapping the windfall tax on energy companies, as this government is planning to do, we should be strengthening it instead. We need a real, loophole-free windfall tax with no exemptions for reinvesting in fossil fuels. A robust tax that claws back every single pound of reckless profiteering from this crisis and repurposes it immediately to protect every home in the country. And while taxing extreme wealth in the ways we need to will take time to implement, there are levers the government could pull right now – like equalising capital gains tax with income tax and reforming the base, to raise £12bn.

It’s time for the government to act decisively, eliminate the uncertainty that is plaguing people and the markets and insulate us from some of the worst economic effects of Trump’s war.

This was not a war of self-defence, there was no imminent threat. Negotiations were ongoing. It was, as the BBC’s international editor said, a war of choice.

People across the Middle East are terrified of what Trump and Netanyanhu’s war will mean for them and their loved ones. And the repercussions are echoing across the world as instability spreads and oil prices spike.

People are already struggling so hard just to make ends meet. People feel like they’re running every day just to stay in the same place. The idea that yet again – for the second time in just a few years – that we are going to have to deal with another enormous spike in the cost of the basics is unacceptable.

It’s unacceptable because we didn’t need to be here. It’s unforgivable that just four years after we last saw an energy price shock, that one triggered by Putin’s illegal invasion of Ukraine, far too little has been done to protect this country, its people, and its economy – from the impact of yet another energy price shock.

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Most senior council officers in England say building work hit by delays

Funding uncertainty is main concern, despite Labour’s pledge to revitalise construction, survey shows

Almost two-thirds of senior council officers have said they are seeing construction projects delayed, despite the key role of local authorities in creating the wave of new housing and infrastructure promised by Labour.

Before Rachel Reeves’s spring forecast on Tuesday, a survey of senior council officers showed that 40% do not think the local authority they work for is well placed to follow through on its construction plans.

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OBR a backseat driver with out-of-date maps, thinktanks tell Rachel Reeves

Chancellor urged to reform Office for Budget Responsibility to open way to more public investment

Rachel Reeves must reform the Office for Budget Responsibility (OBR) to open the way to more public investment, an alliance of thinktanks has argued ahead of the chancellor’s spring forecast on Tuesday.

With Keir Starmer’s government under intense pressure after Labour’s defeat by the Greens in Thursday’s Gorton and Denton byelection, the thinktanks called on Reeves to review the watchdog’s remit.

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Martin Lewis ambushes Badenoch on Good Morning Britain over student loans plan

Finance campaigner marches on to set and tells Tory leader her policy to cut interest rates will only help top earners

Kemi Badenoch has faced what could be described as the stuff of nightmares for a UK politician being interviewed about a personal finance policy: being ambushed and contradicted live on air by Martin Lewis.

As the Conservative leader was being interviewed on ITV about her party’s plans to cut interest rates for some student loans, Lewis, a campaigner and finance expert, marched on to the set to announce that he completely disagreed.

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Trump raises tariffs to 15% on imports from all countries

President announced increase from 10% using different authority from mechanism that supreme court struck down on Friday

Donald Trump announced on Saturday that he would raise a temporary tariff rate on US imports from all countries from 10% to 15%, less than 24 hours after the US supreme court ruled against the legality of his flagship trade policy.

Infuriated by the high court’s ruling on Friday that he had exceeded his authority and should have got congressional approval for the tariffs he introduced last year under the International Emergency Economic Powers Act (IEEPA), the US president railed against the justices who struck down his use of tariffs – calling them a “disgrace to the nation” – and ordered an immediate 10% tariff on all imports, in addition to any existing levies, under a separate law.

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Don’t be fooled by recent good news, the UK economy is still in a precarious state

Labour MPs may clamour for bolder spending, but – like their Tory and Reform counterparts – they ask for the unaffordable

Too many Labour MPs want it all, and no amount of pleading from the top of government about the depleted public finances seems to make a difference.

The mainly leftist MPs want all the wrongs of the last 15 years put right and quickly. Their next opportunity to demand more cash arrives when Rachel Reeves delivers her spring statement on 3 March.

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Starmer says Reform’s pledge to restore two-child benefit cap in full is ‘shameful’ – UK politics live

Reform UK’s Robert Jenrick has announced party’s plans to cut welfare spending

Robert Jenrick, Reform UK’s Treasury spokesperson, is giving his speech now.

He has announced, or confirmed, three measures to cut welfare spending.

The number claiming disability benefits for an attention disorder has more than doubled since Covid. We all know a significant number of these claims are spurious …

We will stop those with mild anxiety, depression, and similar conditions from claiming disability benefits and instead encourage them into the dignity of work.

We will end the abuse of the Motability scheme, where expensive cars are handed out for conditions like tennis elbow, and paid for by working people who can’t afford them themselves.

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OBR says its inadvertent release of budget report is ‘worst failure’ in its 15-year history – UK politics live

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.”

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OBR says inadvertent budget leak is ‘worst failure’ in its 15-year history

Investigation finds organisation’s leadership over many years was to blame for error, and similar breach happened earlier this year

Britain’s budget watchdog has said the early leak of its budget documents before Rachel Reeves made her speech was the “worst failure” in its 15-year history as it emerged a similar breach had occurred earlier this year.

The Office for Budget Responsibility (OBR) said an investigation had found that the leadership of the organisation, over many years, was to blame for the early release of its Economic and Fiscal Outlook (EFO) document online nearly an hour before Reeves’s address last Wednesday.

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Vote for collective leadership shows Your Party are ‘doing politics differently’ – UK politics live

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.

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Government to ditch day-one unfair dismissal policy from workers’ rights bill

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.”

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Starmer says budget did not break manifesto tax pledge – as it happened

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.

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Rachel Reeves targets UK’s wealthiest in £26bn tax-raising budget

Chancellor axes two-child benefit cap and cuts energy bills paid for by mansion tax and freezing tax thresholds

Rachel Reeves targeted Britain’s wealthiest households with a £26bn tax-raising budget to fund scrapping the two-child benefit policy and cutting energy bills.

On a chaotic day that involved key details of her budget accidentally being released early by the Office for Budget Responsibility (OBR), the chancellor defended the measures, saying she was “asking everyone to make a contribution to repair the public finances”, but that she wanted the wealthiest to pay the most.

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How Rachel Reeves’s budget was leaked 40 minutes early

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.

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How Rachel Reeves’s budget was leaked 40 minutes early

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.

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Reeves’s plan to cut cash Isa limit could raise mortgage rates, say finance bosses

Building societies fear consumers will be put off from saving if chancellor’s budget announces a 40% reduction

Rachel Reeves’s plan to slash the annual cash Isa limit by 40% could lead to higher mortgage rates and deter consumers from saving, finance bosses have said.

The chancellor is expected to cut the maximum amount people can put into tax-efficient cash individual savings accounts from £20,000 a year to £12,000 in Wednesday’s budget.

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Rachel Reeves promises to ‘grip the cost of living’ in autumn budget

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.

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