Tory tax break for banks has cost UK public purse £6bn, says TUC

Exclusive: Chancellor urged to reverse Rishi Sunak’s tax surcharge cuts to claw back billions in lost revenue

Tax cuts for big banks have deprived the UK government of £6bn in revenues, according to campaigners, who are calling on the chancellor, John Healey, to increase taxes and force lenders to pay their “fair share” in the budget.

Calculations by the Trades Union Congress (TUC), which represents unions with more than 5.3 million members across England and Wales, shows that the public purse is billions of pounds worse off as a result of tax cuts introduced under the Tory chancellor Rishi Sunak in 2023.

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UK urged to strengthen financial muscle of national wealth fund to aid economy

Unions, thinktanks and others say overhaul could provide investment Britain needs

Unions, thinktanks, environmental groups and charities have come together to call on ministers to boost the financial firepower of the national wealth fund to empower it to invest more in Britain and rebalance the country’s economy.

Lower energy bills, the revitalisation of the UK’s industrial heartlands and the provision of more high-quality jobs could all be unlocked by scaling up the NWF, according to a statement from organisations including the TUC, Greenpeace, WWF and the New Economics Foundation.

Turbocharging the retrofitting of homes and buildings.

Giving the public a bigger stake in critical infrastructure through taking part-ownership stakes in key projects.

Launching a targeted investment programme to bring new green industries to communities hit hardest by deindustrialisation.

Supporting a network of regional banks to funnel money into the small businesses that hold up local economies.

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Khan addresses Polanski in Urdu at London assembly, mocking Green leader’s byelection video – UK politics live

It comes after the Green leader, who is standing as a candidate in the Holborn and St Pancras byelection, recorded a campaign video in Urdu

Andrew Griffith has delivered his speech, and he is now taking questions.

Q: You want the government to pause the making tax digital programme. Is that an admission that the last government got this wrong when it introduced it?

It is an admission that despite [good] intentions, the execution of that has left a lot to be desired.

In fact, coming to parliament from business, I can confess the law that we pass the most often is the law of unintended consequences. And I think making tax digital is a good example of that.

The truth is that Burnham and Miliband ignored the advice they were given – which was that if they were determined to sanction Israel, they should not do so before the Israeli election on 27 October.

It may not be surprising that this was the message from the Israeli foreign minister, Gideon Sa’ar, when Miliband called him on 11 August to warn sanctions were imminent. ‘He said postpone it until after the elections,’ a diplomatic source confirms. It was also the message the Israeli embassy in London – and its new chargé d’affaires Chris Cantor – was relaying to the Foreign Office. ‘Their message was clear: why do it now? Wait until after the elections, because something might change,’ a senior Labour figure says.

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Farage hints that Reform’s £72m donations may not be legal under new elections bill – UK politics live

In an interview about the donations, he said they are compliant with the law ‘today’

Andy Burnham has cancelled engagements today and tomorrow following the death of his father Roy, who was suffering from Alzheimer’s, the Press Association reports.

Burnham has spoken about his father’s illness which meant that he did not know his son had become prime minister.

[We] will continue bringing forward further reforms to strengthen confidence in our democracy.

Following on from the previous minister for democracy’s letter to you of 10 July 2026, we wanted to reiterate the government’s concerns, shared by many members of the public and parliamentarians, about the rise in the volume and concentration of money in UK politics. We have to limit the way financial power can end up dominating political power, to get to a politics that works for all people in all places.

We believe spending limits on parties and candidates are too high, and ought to be reduced.

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UK unions split over donations cap as TUC chief says ‘super-rich’ corrupting politics

Sources say there are ‘significant differences’ in opinion as debate inflamed by crypto billionaires’ £72m donations to Reform

The head of Britain’s trade union movement, Paul Nowak, has said the government must act to “stop the super-rich corrupting our politics”, as union leaders met on Monday to discuss possible support for a domestic cap on donations.

Union leaders are split on the prospect of limiting domestic donations to political parties, with many including the GMB fearing it would lead a future rightwing government to curb union donations.

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Farage’s plan for equal pay legislation may cost female workers money, say unions

General secretary of TUC calls Reform proposal ‘a smokescreen for slashing women’s rights’

A law proposed by Nigel Farage to “strengthen women’s rights” could cost female workers money by removing equal pay for work of equal value, unions have said.

A proposal, made by Reform UK days before the Makerfield byelection, to introduce a “women and motherhood protection act” that it says will restore equality before the law has been described as “shameless and deceptive”.

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Young people ‘more likely to leave for health reasons when in low-paid, insecure jobs’

Research for TUC analyses link between job quality and economic inactivity, as UK youth unemployment rises

Young people in the UK are more likely to leave their job for health reasons and become economically inactive when they work in insecure, low-paid sectors, a study has found.

Research carried out for the Trades Union Congress by the consultancy Timewise charts a connection between the jobs young people are most likely to do – in hospitality, retail and care, for example – and the proportion of people leaving because of ill health.

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Business secretary claims workers’ rights bill U-turn doesn’t breach Labour’s manifesto – UK politics live

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.

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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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New home secretary Shabana Mahmood says she will not run for deputy leader after Labour accused of ‘stitch-up’ over contest – UK politics live

The MP said police should be focusing on people who are members of the group, not those who ‘recklessly express support’ for it

Paul Nowak, the TUC general secretary, used his speech to conference this morning to say that the TUC expected the government to deliver its workers’ rights bill “in full”. He said employment rights were “overwhelmingly popular with voters across the political spectrum”.

And he condemned Reform UK for its stance on employment rights. After saying that Nigel Farage claimed to represent working class people, he went on:

Here’s the truth – there is a world of difference between what Nigel says and what Nigel does.

Every single Reform MP, including Mr Farage, voted against outlawing fire and rehire, against banning zero hours contracts and against day one rights for millions of workers.

Ask yourself this fundamental question. Do you believe in your gut that that Nigel Farage really cares about the people of Clacton when he’s off collecting his speaker’s fees in the United States?

Do you believe that Richard Tice really worries about the people of Skegness while he’s living it up at home in Dubai, or are they just rightwing conmen lining their own pockets?

I just have to say this. No amount of TikToks, or ozempic, or expensive haircuts, will ever hide the eager inner ugliness of Robert Jenrick.

The man who ordered murals painted over in a reception centre for children seeking asylum is indeed a xenophobe, an opportunistic xenophobe hoping to create a political climate that ends up with far right folks laying siege to hotels and black and Asian people being threatened and harassed on our streets.

If we look at the powerful geopolitical push factors, they’re things like regime change. We think Afghanistan, war, civil conflict. And when we look at people crossing in small boats, where do they come from? Well, the top nationalities: Afghan, Eritrea, Iranian, Syrian, Sudanese – just those five nationalities account for almost two thirds of all small boat arrivals, and these individuals are from some of the most chaotic parts of the world.

But there are also some pull factors, and the question is, why not claim asylum in France, why come to the UK? A number of reasons recur there when we speak with asylum seekers. It’s the presence of family members, the English language.

In those circumstances, typically, flagged upon the system, the UK government would be able to issue a speedy refuse refusal and try and effect removal.

As it is, people arrive, we don’t have that record, so we don’t know who they are.

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Sick pay changes could benefit UK firms by up to £2bn, TUC says

Exclusive: Analysis shows covering part of salaries from first day off can boost productivity and employee retention

Changes to sick pay to cover part of workers’ salaries from the first day off could end up benefiting British businesses by as much as £2bn, according to analysis commissioned by the UK’s main union body.

The Trades Union Congress (TUC), which is pushing for the government to stick with its plans for workers’ rights, said modelling showed businesses would gain benefits of £2.4bn thanks to productivity boosts, while facing direct costs of £425m to pay for extra sick days.

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Watchdog suggests alleged ‘two-tier’ sentencing guidelines may breach Equality Act – UK politics live

Lady Falkner, chair of the EHRC, says moves run the risk of positive discrimination

Here is the list of MPs down to ask a question.

PMQs is about to start.

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Britain’s biggest unions call for much closer UK-EU ties amid ‘volatile’ global economy

Exclusive: union umbrella body calls for new cooperation agreement ahead of Keir Starmer’s reset talks with Brussels

The UK should forge much closer ties with Europe amid an increasingly “volatile and unpredictable” global economy, Britain’s biggest trade unions will argue as they push for new workers’ rights across the continent.

In its first major intervention on Europe in five years, the Trades Union Congress (TUC) will call for a “much-needed” closer relationship with the EU, in a joint statement with European counterparts.

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Second Labour MP suspended by Labour amid offensive messages on WhatsApp group – UK politics live

Burnley’s Oliver Ryan suspended as details emerge about Trigger Me Timbers group

Downing Street has announced a mini-reshuffle following the sacking of Andrew Gwynne as a health minister over the weekend.

Ashley Dalton is replacing Gwynne as a health minister. Dalton was a backbencher.

Forcing those whose asylum applications have been rejected or who have overstayed their visas on to planes has never been the most effective way to return people and never will be. Being punitive just scares people into hiding. They lose contact with the authorities, living a life on the margins.

Voluntary returns are far more effective, and the government should know this because it was the last Labour administration that commissioned independent agencies to run a voluntary programme that saw numbers increase. Building trust with refugee and migrant communities and treating people with dignity and humanity was far more successful than an enforcement approach.

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Philp’s ‘patronising’ comment about Britons’ work ethic show Tories ‘out of touch’, TUC says – politics live

General secretary highlights ‘legacy of 14 years of falling living standards under the Tories’

In an article for the Guardian, the Labour MP Clive Lewis said Rachel Reeves’ growth speech this week means the party has abandoned its pre-election green commitments.

Here is an extract.

A growing suspicion looms that our government lacks a coherent governing philosophy or ideological compass beyond the vague pursuit of “growth”. But if growth at any cost is the mantra, the costs will soon become painfully clear. Why pledge to be clean and green, only to undermine that commitment with a Heathrow expansion promise six months later? Burning the furniture to stay warm doesn’t signal confidence – it reeks of panic.

Regardless of the motivation, Labour has crossed the Rubicon. Approving Heathrow expansion is an irreversible break with our pre-election pledges. In 2021, Reeves stood in front of the Labour party conference and declared that she would be the “first-ever green chancellor”. Now, Labour is accused of obstructing the climate and nature bill and abandoning its ambitious decarbonisation plans. The rapid turnaround is striking …

I do a bit. There are nine million working age adults who are not working. And as we compete globally with countries like, you know, South Korea, China, India, you know, we need a work ethic. We need everybody to be making a contribution. … we need to lift our game and to up our game.

Chris Philp was the architect of the Liz Truss budget which crashed the economy and sent family mortgages rocketing.

After the Conservatives’ economic failure left working people worse off, it takes some real brass neck for the Tory top team to tell the public that it’s really all their fault.

I was making the case that tax cuts…need to be accompanied by spending control or spending reductions … in order to show that the books are being balanced and to avoid the market reaction that we saw …

I made that case internally … but it wasn’t unfortunately listened to. I think had my suggestions been listened to a bit earlier, then there was a there’s a much higher chance that [the mini-budget] would have worked. And it’ll be always a matter of regret that those points weren’t taken on board.

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One in six UK workers skipping meals to make ends meet, says TUC

Trade unions body finds 17% have skipped meal in past three months, and as many as 10% do so most days

As many as one in six workers in Britain are skipping meals to make ends meet as households remain under pressure from the higher cost of groceries, energy and other essentials.

Highlighting the impact of the cost of living crisis on working households, figures from the Trades Union Congress (TUC) showed 17% of full- or part-time workers had skipped a meal to reduce their spending in the past three months.

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Labour’s workers’ rights plans can win over Tory and Reform voters, says TUC

Trade union leaders meet ministers for final talks on employment rights bill before unveiling on Thursday

Labour can use its overhaul of workers’ rights to win over disaffected Tory and Reform voters, the TUC has said, as the government prepares to introduce landmark legislation that will grant new rights to 7 million workers.

Trade union leaders met ministers on Tuesday for final discussions on the employment rights bill before its announcement on Thursday.

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‘We need to hear about hope’: unions greet Keir Starmer TUC speech with mixed emotions

Enthusiasm for public sector pay awards tempered by concern over winter fuel payment cuts and job losses

“We’re hearing an awful lot about tough times: it’s like being in a Dickens novel. What comes after the tough times? We need to hear about hope.”

Onay Kasab, the national lead officer for the Unite trade union, was addressing a leftwing fringe meeting, but similar sentiments reverberated through the bars and coffee shops at this week’s TUC congress in Brighton.

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‘Tough decisions’ needed, Starmer tells cabinet, as he defends changes to winter fuel payments – UK politics live

PM and the chancellor, Rachel Reeves, defend move to restrict payment to only the poorest pensioners

Like the Telegraph (see 11.25am), the Times has also published a new article with a Tory endorsement for Kemi Badenoch, but this one is potentially more significant. Margaret Thatcher is no longer with us, but for Conservative party members she is still the one figure from the party’s recent past whose authority is more or less unquestioned and Peter Lilley has written an article claiming that Badenoch would be a worthy inheritor of her mantle. He says Thatcher was a scientist, and Badenoch is an engineering graduate. Like Thatcher, Badenoch is focused on facts, and what works, he says. He goes on:

Leadership candidates are under great pressure to make popular pledges, to abolish specific taxes or set a numerical limit on immigration. Kemi, rightly in my view, has refused to do so. Voters want lower taxes and much less immigration (as do I), but they have seen every glib promise broken. To convince them, a new leader will need to show first, that policies have been rigorously worked out in practical terms and second, that we truly believe in them rather than adopting them to win votes. As Margaret Thatcher said: “To carry conviction, you must have conviction.”

Conviction is the fruit of hard-nosed scepticism. Kemi’s approach is similar to Margaret Thatcher’s, for whom I once worked. When ministers took a policy to her which was in line with all her prejudices, expecting instant approval, she would tear into it, challenging every weakness. Only when satisfied that a policy was totally robust would she take it on board – but then she pursued it with unwavering conviction. Kemi is likewise willing to challenge, criticise and expose weaknesses, which does not endear her to everyone. But we cannot afford to go on adopting half-baked, unworkable policies.

We can rage at Labour’s actions, but the public won’t listen to our narrative – unless we have a leader who can communicate.

Kemi Badenoch is that person. She is blessed with that rare gift in politics: the X-factor that means she can not only communicate but achieve all important ‘cut-through’, so that the public actually notice.

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More than a million British workers not having a single day of paid time off, says TUC

Employees have lost out on holiday pay worth £2bn, according to new trade union research

Workers across Britain have lost out on holiday pay worth £2bn, with more than a million people going without a single day of paid time off, according to new research.

With unions gathering in Brighton this weekend for the first TUC conference under a Labour administration for 15 years, the body revealed new research showing the extent to which workers are being denied holiday pay. Workers are entitled to 28 days paid leave for a typical five-day week.

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