Category Archives: Economic policy

No bounce for the Tories after tax-cutting budget, poll shows

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Opinium poll for the Observer reveals the public is unimpressed with Jeremy Hunt’s attempt to woo them by trimming national insurance

Rishi Sunak has received no poll bounce after cutting taxes in last week’s autumn statement, according to the latest Opinium poll for the Observer.

Following a week in which the chancellor, Jeremy Hunt, described a reduction in national insurance as “the biggest tax cut on work since the 1980s” Labour’s lead has increased to 16 percentage points over the Tories.

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Rishi Sunak says immigration must fall but declines to say which new measures he backs – as it happened

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Net migration to the UK in 2023 is estimated at 672,000, and the PM says a more ‘sustainable’ level is needed. This live blog is closed

When Nigel Farage was leading the Brexit party, it was considerably influential for a party with no MPs, winning the European elections in 2019 and helping to push the Conservative party into a harder position on Brexit. After the 2019 election it was renamed Reform UK, Richard Tice took over as leader and it became much more marginal. But in an interview on the Today programme this morning Tice claimed that the government’s failure to bring down immigration was presenting it with an opportunity. He told the programme:

The British people voted to control immigration, and the government have betrayed the people’s promises. And that’s why so many thousands of people, former Tory members, are joining us. Our polling numbers – we got record polling last week, four different polls where we’re in double figures. This week, we’ve had Tory donors joining us. Frankly, I fully expect Tory MPs who are furious and angry with the government to be calling me next week.

[Cleverly] has made the point that he says that it was not aimed at a particular place. Knowing James well, he’s not the sort of person, in my opinion, who would have made that kind of remark in that kind of context.

But he has accepted that this was certainly unparliamentary language and he has rightly apologised.

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Autumn statement live: Jeremy Hunt cuts national insurance as OBR downgrades UK growth forecast

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Chancellor cuts employee national insurance to 10% while abolishing class 2 national insurance

Keir Starmer has said that a pause in hostilities between Israel and Hamas must be used to tackle the “urgent and unacceptable humanitarian catastrophe” in Gaza.

Welcoming the deal, which is expected to involve the release of 50 hostages being held by Hamas and a number of women and teenagers from Israeli jails, the Labour leader said his party had been calling for “a substantial humanitarian pause”. He said:

There must be immediate access to aid, food, water, fuel and medicine to ensure hospitals function and lives are saved. Aid and fuel need to not just get in but be distributed widely and safely.

We must also use the space this pause creates to take more steps on a path towards a full cessation of hostilities rather than an escalation of violence.

The real function of the projected spending squeeze is as a trap for Labour. If the opposition rejects the Tory trajectory, it will be accused of planning a profligate spree with public money. And if it pledges adherence to impossible targets, it will enter government with its hands bound too tight to deliver prompt satisfaction to the people who voted for it.

Keir Starmer and Rachel Reeves have so far operated a sensible policy of not walking into traps of this kind. That approach restored swing voters’ trust in Labour as stewards of the economy. But it tests the patience of an activist base that sees reversal of austerity as a moral imperative and can smell the incipient disappointment in promises of fiscal discipline.

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OBR halves UK growth forecast and warns inflation will exceed 2% target until 2025

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Despite £27bn windfall for the autumn statement, government forecaster warns of generally more difficult outlook until 2028

The government’s official forecaster has slashed its predictions for economic growth over the next two years, and warned that inflation could take until 2025 to come back to the official 2% target.

In an updated financial health check to accompany the autumn statement, the Office for Budget Responsibility (OBR) said a more resilient economy this year had handed the chancellor a £27bn budget windfall, but it warned of a more difficult outlook up to 2028 than previously forecast at the time of the budget in March.

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Autumn statement: Jeremy Hunt looks to cut UK taxes and ‘turbo-charge growth’

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Amid less gloomy OBR forecasts the chancellor is expected to take first steps towards cutting personal taxes

Jeremy Hunt will announce 110 measures to boost Britain’s stagnant economy and bow to demands from anxious Tory MPs for tax cuts when he delivers his second autumn statement on Wednesday.

In one of the last set-piece economic events before the general election, the chancellor will pledge to “turbo charge” growth while taking the first steps to cut personal taxes after recent sharp increases.

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UK borrows less than expected this year as Hunt lines up giveaways

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Chancellor says bringing down inflation remains one of his main aims as he prepares autumn statement

The UK government borrowed less than expected in the first seven months of the financial year as Jeremy Hunt puts the last-minute touches to a series of pre-election giveaways in his autumn statement on Wednesday.

Public sector borrowing between April and October was just above £98bn, according to the Office for National Statistics (ONS), and while this was £22bn higher than in the same period last year, it was almost £17bn less than the Office for Budget Responsibility (OBR) forecast in March.

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Boris Johnson ‘bamboozled’ by science and Matt Hancock had habit of saying things that were untrue, UK Covid inquiry hears – live

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Former chief scientific adviser Patrick Vallance revealed there was ‘complete lack of leadership’ at times in crisis

Vallance says that some of what he was doing during Covid would have been done by anyone else in the post of government chief scientific adviser (GCSA).

But he says because of his medical training, and his knowledge of vaccines (he had worked for GlaxoSmithKline before taking the GCSA job), he was probably more involved than another GCSA might have been.

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Sunak says he will cut taxes ‘over time’ as he reveals new economic priorities

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PM signals that business tax cuts more likely than personal ones as he sets out ‘next phase’ of government’s economic plan

Rishi Sunak has hinted at business tax cuts to boost economic growth as he promised to reduce the tax burden “carefully and sustainably” and “over time”.

In a speech on Monday the prime minister declined to give any specifics before the autumn statement, but stressed the focus was “very much the supply side” of the economy in a signal that business tax cuts are more likely than personal ones.

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Tax corporate polluters and rich to help tackle climate crisis, Jeremy Hunt told

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In letter to Guardian, campaigners say billions could be raised to help finance decarbonisation

Jeremy Hunt has been warned that combating the climate emergency will require higher taxes on wealth and big corporate polluters at the autumn statement rather than a package of giveaways for the rich.

In the run-up to the chancellor’s speech to the Commons on Wednesday, a group of 19 leading charities and campaigners – including Greenpeace, Christian Aid and Patriotic Millionaires UK – said billions of pounds could be raised to help finance decarbonisation.

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Labour motion to ban Truss-style budget meltdowns puts pressure on Tory MPs

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Party loyalty would force Conservatives to vote against plan for fiscal responsibility

Read more: ‘I challenge Rishi Sunak: vote with Labour to stop a Truss-style disaster happening again,’ writes Rachel Reeves

Labour will force a Commons vote this week aimed at creating new legal safeguards against fiscal disasters such as Liz Truss’s catastrophic mini-budget, which sent the financial markets into meltdown and drove up mortgage rates.

The party’s plan for a “fiscal lock” to protect personal, family and the national finances from reckless politicians will be contained in an amendment to the king’s speech that will be voted on by MPs on Tuesday. The manoeuvre will present Conservative backbenchers with a dilemma over whether to back a Labour amendment, or vote against what is a plan designed to embed fiscal responsibility into the budgetary process, and protect it from wild or accidental political misjudgments.

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Hunt urged to invest £30bn a year in infrastructure or risk ‘decade in doldrums’

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Thinktank says stronger than expected tax revenues have given chancellor scope for bold package in autumn statement

Jeremy Hunt risks condemning Britain to a decade in the doldrums unless he uses this month’s autumn statement to announce a £30bn-a-year investment plan to upgrade public infrastructure, a leading thinktank has warned.

The National Institute for Economic and Social Research (NIESR) said the chancellor should ignore calls by Tory MPs for pre-election tax cuts and instead focus on measures to boost growth through improvements to transport, digital networks, skills and housing.

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If interest rates rise again, it may be because inflation fears lost their anchor to reality

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The issue of ‘consumer expectations’ of inflation is hotly debated by economists, and might be a key factor in the Reserve Bank’s decision

If the Reserve Bank lifts interest rates on Tuesday, governor Michele Bullock may well cite the need to keep consumers’ expectations of inflation “anchored”.

But it’s not a simple task to determine what those expectations are and whether they are anchored to reality.

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Keir Starmer defends his call for humanitarian pause in Gaza, saying it is quickest way to provide help – UK politics live

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Labour leader says he thinks most practical way to get aid into Gaza is to have a humanitarian pause

Keir Starmer is delivering his speech to the North East Chamber of Commerce now.

He starts by saying they are near the A1, where there is a stretch of road that Rishi Sunak recently promised to upgrade.

It’s a story you see right across Britain. Infrastructure projects, some with billions already committed, businesses planning around the structures developed in rooms like this.

But the projects and investment get blocked by objections, consultations, legal challenges, ballooning costs delays, delays, delays – until it’s easier just to give up and move on.

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‘Securonomics’: five key business messages from Labour conference

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With company chiefs in attendance and an endorsement from Mark Carney, shadow chancellor sought to demonstrate economic competence

At every turn in Labour’s annual conference in Liverpool, there are signs of big business on manoeuvres. Exhibition stands for Google, Ineos and Specsavers; slick videos for Amazon and Uber, fringe events sponsored by Deliveroo and Goldman Sachs, while even the parliamentary lounge – a retreat for MPs from the throng of 16,000 delegates – was sponsored by Lloyds Banking Group.

Labour was keen to demonstrate economic credibility by basking in the presence of company bosses. For business leaders, it was a chance to check out a potential government in waiting, with many commenting on the marked contrast with the Conservative conference in Manchester.

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Keir Starmer says Labour will tackle obstacles holding back housebuilding as protester interrupts conference speech – as it happened

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Labour leader says party has ‘plan to get Britain building again’ after security breach where protester threw glitter on him at start of speech

Labour has published fresh details of how the community policy guarantee (see 9.43am) will work.

On community policing

On Starmer, told that after Reeves’ reassurance over economy, his speech designed to paint a ‘picture of hope’ & it ‘emotive rather than a big policy drop’> the word cloud on what Starmer’s about peppered with don’t know and even ‘nothing’. This his chance to hammer home values

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Rachel Reeves says Labour will get rid of ‘obstacles created by antiquated planning system’ – UK politics live

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Shadow chancellor will tell party conference that Labour wants to be the party of building and infrastructure

In normal circumstances, Labour conference would be front-page news, but this week’s event has being overshadowed by the war between Israel and Hamas. Rachel Reeves has been taking questions on this in her morning interviews and she stressed Labour’s support for Israel. In an interview with BBC Radio 4’s Today programme, asked about claims that the “occupation of Palestine” had provoked the attacks by Hamas, Reeves replied:

Gaza is not occupied by Israel.

The real cause of what is happening now is a terrorist attack. If Britain or any other country was attacked by terrorists, we would believe, and rightly so, that we have every right to defend ourselves, to get back hostages and to protect our citizens.

Speeding up the planning for critically important infrastructure by updating all national policy statements – which set out what types of projects the country needs – within the first six months of a Labour government.

Fast-tracking the planning process for priority growth areas of the economy, such as battery factories, laboratories, and 5G infrastructure.

If we want to spur investment, restore economic security, and revive growth. Then we must get Britain building again.

The Tories would have you believe we can’t build anything anymore. In fact, the single biggest obstacle to building infrastructure, to investment and to growth in this country is the Conservative party itself.

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Businesses are turning to Labour in droves, says Darren Jones

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Shadow chief secretary to the Treasury says multinationals are ‘crying out for stability and competence’

Businesses are “crying out for stability and competence” and are turning in droves to Labour after losing hope with the government the shadow chief secretary to the Treasury has said.

Speaking to the Guardian before a speech by his boss, Rachel Reeves, at the Labour conference, Darren Jones said the scale of renewed corporate interest in Labour meant he was spending almost the entire event meeting business leaders.

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Labour’s Wes Streeting interviewed at Labour party conference – UK politics live

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Shadow health secretary questioned by Guardian editor-in-chief, Katharine Viner

Q: You oppose the Rwanda policy because you don’t think it will work. If the supreme court rules it is legal, and deportations start and it is seen to be working, would you still reverse it.

Yes, says Starmer. He says it is the wrong policy. It is very expensive, and it only affect only a small number of people. And the policy does not deal with the problem at source.

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Tory swing voters switch to Labour after Sunak’s green retreat, poll finds

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Survey shows nearly 90% of 2019 Conservative voters say green industry is vital to UK’s economic growth

Almost nine in 10 voters who intend to switch their support from Conservative to Labour candidates in the next general election believe that “green growth” is important for the future of Britain’s economy, according to a poll.

Carried out by pollsters Opinium, the survey found that 82% of all respondents backed the growth of Britain’s green industry to boost the economy, in the same week that the prime minister announced a series of U-turns on the government’s green commitments in an attempt to create a dividing line with Labour before the election.

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Rishi Sunak shrugs off concerns that U-turns might make UK a ‘laughing stock’

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Prime minister says investors are excited about Britain and that he instinctively understands what the public wants

Rishi Sunak has rejected criticism that recent U-turns mean the UK cannot be taken seriously, as he fought to maintain order before a Conservative conference set to be dominated by questions about tax cuts and rivals jostling to succeed him.

In the traditional pre-conference TV interview, the prime minister again refused to say whether HS2 would extend as far as Manchester, the host city for the conference, which begins on Sunday afternoon.

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