Category Archives: Economic policy

Greens say Labour should focus more on building council homes and that new housing plan is flawed – UK politics live

Posted on by

Rayner says housing target system will raise number of homes planned to 370,000 and confirmed targets will be mandatory

Balls, who, of course, is a former Labour cabinet minister, and a former shadow chancellor, questions whether Reeves is right to suggest that Jeremy Hunt is wholly to blame for the black hole. He says that other cabinet ministers and departments drew up the spending plans that she says were unfunded.

Reeves repeats the point she has been making all morning about how the public were misled. (See 8.06am.)

Continue reading...

Winter fuel payments to be restricted as Reeves says there is £22bn spending shortfall – UK politics live

Posted on by

Chancellor suggests budget, on 30 October, will involve tax rises and cuts to spending and benefits

Downing Street has refused to comment on a report saying junior doctors are being offered a pay rise worth about 20% over two years.

In a story for the Times, Steven Swinford reports:

The British Medical Association’s (BMA) junior doctors committee has recommended an offer that includes a backdated pay rise of 4.05 per cent for 2023-24, on top of an existing increase of between 8.8 per cent and 10.3 per cent.

Junior doctors will be given a further pay rise of 6 per cent for 2024-25, which will be topped up by a consolidated £1,000 payment. This is equivalent to a pay rise of between 7 per cent and 9 per cent.

As we’ve said before, we’re committed to working to find a solution, resolving this dispute, but I can’t get into detailed running commentary on negotiations.

We’ve been honest with the public and the sector about the economic circumstances we face. But the government is determined to do the hard work necessary to finally bring these strikes to an end.

Continue reading...

Hospital and road projects face cuts to plug £22bn fiscal hole, Reeves says

Posted on by

Social care and winter fuel payments also targeted as chancellor accuses Tories of covering up scale of fiscal shortfall

Rachel Reeves has scrapped the social care cap and curbed winter fuel payments, as well as announcing big cuts to hospital and road projects, as she seeks to plug what she called a £22bn hole in public spending that was “covered up” by the Conservative government.

In a statement to the Commons that mixed detailed economics and partisan politics, the chancellor justified the cuts with the repeated mantra: “If we cannot afford it, we cannot do it.”

Continue reading...

How bad are Britain’s finances? Five questions on the state of the UK economy | Phillip Inman

Posted on by

Several factors restrict the Labour government’s room for manoeuvre in its agenda for growth

The economic outlook is improving, but a recovery from last year’s recession will be long and arduous without a boost to public investment.

Continue reading...

Rachel Reeves to delay some of Tories’ ‘unfunded’ road and hospital projects

Posted on by

Chancellor attempts to plug £20bn hole in spending but will commit to above-inflation public sector pay rise

Rachel Reeves is to delay a number of “unfunded” road and hospital projects on Monday as part of the Treasury’s anticipated plans to plug an apparent £20bn hole in spending left by the Conservatives, while committing to an above-inflation public sector pay rise.

The chancellor is expected to argue she has inherited capital projects that are “unfunded with unfeasible timelines” as part of her Treasury audit report to the Commons. The audit will be seen as an indication of the government’s early commitments and priorities.

Continue reading...

NatWest takes £24m hit from abandoned ‘Tell Sid’-style campaign

Posted on by

Bank left with costs from Sir Trevor McDonald-fronted campaign after early election halted rollout

NatWest was forced to spend £24m on the former Conservative government’s aborted “Tell Sid”-style campaign featuring Sir Trevor McDonald, which would have resulted in a chunk of the bank’s state-owned shares being sold to the general public in a highly anticipated privatisation drive.

The price tag emerged when the bank released its second-quarter results and announced it was snapping up a number of mortgages from the smaller rival Metro Bank for £2.4bn.

Continue reading...

Mandatory housing targets at core of economy-focused king’s speech

Posted on by

Planning reforms and transport policies included in package of more than 35 bills as Labour prioritises growth

Local councils will have to adopt mandatory housing targets within months under planning reforms to be unveiled on Wednesday as part of Keir Starmer’s first king’s speech, which the prime minister says will be focused on economic growth.

Starmer will introduce a package of more than 35 bills on Wednesday, the first Labour prime minister to do so in 15 years, as he looks to put the economy at the centre of his first year in office.

Continue reading...

Labour will not boost military spend without economic growth, says minister

Posted on by

Comments come as PM begins two-day US visit to urge Nato member countries to increase defence spending

The Labour government will not increase spending on the military unless it is also able to grow the economy, the armed forces minister has said, as Keir Starmer comes under pressure to say when Britain’s defence spending will hit 2.5% of GDP.

Luke Pollard said on Wednesday the government wanted to hit the target promised by the former prime minister Rishi Sunak, but would not be able to do so without economic growth.

Continue reading...

Keir Starmer and Angela Rayner to kickstart new era of devolution

Posted on by

On fifth day in office, PM and deputy will meet England’s regional mayors as Labour draws up new bill for king’s speech

Every area of England should take over key powers from Westminster, Keir Starmer will say as he and Angela Rayner declare an end to the “levelling up” agenda and look to kickstart a new era of devolution.

The prime minister and his deputy will meet every regional mayor in England on Tuesday on just their fifth day in office, as the party draws up a devolution bill to be launched as part of next week’s king’s speech.

Continue reading...

Labour to seek ‘stable position’ with Europe rather than reopen Brexit debate

Posted on by

Shadow business secretary says trying to rejoin single market or customs union would cause ‘more difficulties’

Labour would rather have stability in the UK’s relationship with Europe than try to seek accelerated economic growth by rejoining the EU’s single market or customs union, the shadow business secretary has said.

Addressing the British Chambers of Commerce (BCC) conference on Thursday, Jonathan Reynolds acknowledged that Brexit had been “very difficult for businesses” because it had erected trade barriers, but said reopening the debate would be worse.

Continue reading...

Sunak defends decision not to take immediate action against Tories in betting scandal – as it happened

Posted on by

Prime minister faces claim Tories are ‘stealing the candlesticks’ on the way out of government

After a passage in his speech attack Labour on familiar grounds, Rishi Sunak also hit out at Reform UK.

[Reform UK] are not on the side of who you think they are.

Reform are standing candidates here in Scotland that are pro independence and anti monarchy.

Continue reading...

Starmer’s growth plan ‘doomed’ without access to EU markets, warn economists

Posted on by

Labour leader told if elected he will have to rejoin the customs union to meet party’s manifesto pledges, while 56% of voters say Brexit was bad for economy

A Labour government under Keir Starmer will fail to maximise the UK’s economic growth unless it takes the country back into the European Union’s single market and customs union, leading economists and diplomats have said.

The warnings come as an Opinium poll for the Observer finds that 56% of voters now believe Brexit has been bad for the UK economy as a whole, compared with just 12% who believe it has been economically beneficial.

Continue reading...

Expert economists back Labour’s plan to end economic stagnation in UK

Posted on by

Nobel prize winners and former Bank of England officials believe Rachel Reeves and Keir Starmer can bring about ‘desperately needed’ change

Labour’s plans for ending Britain’s long-term economic stagnation have been backed by a group of leading economists, including three Nobel prize winners and a former Bank of England deputy governor.

In a boost to the shadow chancellor, Rachel Reeves, the 16 UK and internationally based economists said change was “desperately needed” after the policy mistakes and failures of the past 14 years since the Conservatives took power.

Continue reading...

Jeremy Hunt: Liz Truss economic plans were ‘good thing to aim for’

Posted on by

Exclusive: Leaked recordings reveal chancellor ‘trying to achieve some of the same things’ as former prime minister

Jeremy Hunt said Liz Truss’s economic ambitions were a “good thing to aim for” and her disastrous mini-budget hadn’t left an impact on the economy, according to two leaked recordings obtained by the Guardian.

The chancellor was recorded at a meeting of students when he said he was “trying to basically achieve some of the same things” as the former prime minister, but that he was doing it “more gradually”.

Continue reading...

Investment in UK has trailed other G7 countries since mid-1990s, IPPR says

Posted on by

Institute for Public Policy Research urges Labour and Conservatives to reverse planned cuts

Investment in the UK has trailed other G7 countries including the US and Germany since the mid-1990s, according to a report that urges Labour and the Conservatives to reverse planned cuts to investment or risk long-term damage to economic growth.

The Institute for Public Policy Research (IPPR) thinktank found the UK was bottom of the G7 league for investment in 24 out of the last 30 years, using figures from the Organisation for Economic Co-operation and Development (OECD).

Continue reading...

Labour’s green plans will create 650,000 jobs, says Rachel Reeves

Posted on by

Party begins week of campaigning on economy under pressure to say if it will raise taxes to pay for £7.3bn plans

Labour will create more than 650,000 jobs with its green investment plans, Rachel Reeves has said, as the party kickstarts a week of campaigning on the economy.

The UK shadow chancellor has revealed new details about the £7.3bn green investment vehicle that Labour intends to create after the election, saying it will help create hundreds of thousands of new industrial jobs.

Continue reading...

Starmer promises ‘long-term strategy’ in business-friendly Labour manifesto

Posted on by

Labour puts economic policy and wealth creation at heart of pitch to win over former Conservative voters

Keir Starmer will put economic growth and wealth creation at the heart of Labour’s offer to voters as he launches a business-friendly manifesto targeted at former Conservative voters.

The Labour leader will launch his election manifesto in Greater Manchester on Thursday, promising to emphasise economic stability in a deliberate contrast to the Conservatives’ more policy-heavy offering earlier this week.

Continue reading...

Green party launches election manifesto with ‘honest’ tax proposal

Posted on by

Leaders outline ideas including wealth levy, rent controls, house-building, and water and energy firm nationalisation

The Greens have launched their election manifesto with an appeal to voters to help them into parliament as a challenge to what they termed the unambitious, “more of the same” policies of Labour.

Setting out their plans in Brighton and Hove, the location of one of the party’s key target seats, the co-leaders, Carla Denyer and Adrian Ramsay, said their proposals for higher taxes – mainly on wealthier people – were the only realistic way to improve public services and undertake vital environmental policies.

Continue reading...

Watchdog ends investigation into description of UK economy ‘going gangbusters’

Posted on by

Exclusive: ONS official’s remarks, not intended as comment on overall state of the economy, were later used by Sunak

The UK’s statistics watchdog has closed an investigation into remarks made by an official about the economy “going gangbusters” that were cited by Rishi Sunak.

It was looking into the comments made by chief economist of the Office for National Statistics (ONS) last month amid concerns that politicians could misuse economic data in the run-up to the election.

Continue reading...

UK clothing sales to EU plummet as Brexit red tape deters exporters

Posted on by

Small and medium-sized firms badly hit as huge drop in apparel sales helps fuel 18% slide in all-non food exports

UK exports of clothing and footwear to the EU have dived since Brexit, according to a new study that shows the extent to which complex regulations and red tape at the border have deterred firms from sending goods across the Channel.

Exports of clothing and footwear sold to EU countries have fallen from £7.4bn in 2019 to £2.7bn in 2023, helping fuel an 18% slump in sales of all non-food goods exports to countries covered by the EU single market, according to the consultancy Retail Economics and online marketplace Tradebyte.

Continue reading...