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Lindsay Hoyle starts by telling MPs that speakers from the parliaments in Fiji and Ukraine are in the gallery. And he says it is four years to the day since David Amess was murdered.
It’s PMQs. Here is the list of MPs down to ask a question.
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Voting in the Labour deputy leadership election opens today. Lucy Powell, the former Commons leader, is seen as the favourite and, as Jessica Elgot reports, Powell told supporters yesterday that, if she is elected, she will use the post to argue for changes in the way the government is operating. “We can’t sugarcoat the fact that things aren’t going well,” she said.
Powell is no longer a government minister and, if she is elected deputy leader, she will do the job from the backbenches. In an interview on Newsnight last night, Bridget Phillipson, the education secretary standing against Powell, said a Powell victory would be “destabilising” for the party. She said:
[Electing Powell] risks destabilising the party … we best achieve what we need to do together when we have those fierce conversations, including disagreements, behind closed doors.
Members need to understand that there’s a potential challenge around all of that – that if you’re not inside when the big decisions are being made, you’re not at that table, you’re not in those conversations.
Continue reading...Shadow chancellor sets out spending plans as party conference continues in Manchester
Mel Stride, the shadow chancellor, was doing an interview round for the Conservatives this morning, and Miatta Fahnbulleh, the faith and communities minister, was on the air on behalf of the government. They were both asked about the latest development in the flag phenomenon – the former footballer turned property developer Gary Neville saying that he took down a union flag flying at one of his building sites because he felt it was being used in a “negative fashion”.
Asked if Neville (a Labour supporter) had a point, Fahnbulleh told ITV’s Good Morning Britain:
I think he’s really right, that there are people who are trying to divide us at the moment …
I spent a lot of time going around our communities, talking to people. People are ground down. We’ve had a decade-and-a-half in which living standards haven’t budged and people have seen their communities held down. And you will get people trying to stoke division, trying to blame others, trying to stoke tension.
I think people that put up flags, the vast majority of people that do, do so for perfectly reasonable patriotic reasons. And I think reclaiming our flag as a flag of unity and decency and tolerance, which is the way most people see our flag, is a very positive thing.
So I’m afraid I really cannot agree with the comments that he’s made.
Continue reading...Mel Stride outlines plans to slash £47bn a year from public spending, including £23bn welfare cut
Overseas nationals denied benefits under a Conservative plan to limit social security to UK citizens would have the option to return to their own countries, the shadow chancellor, Mel Stride, has said.
Before his speech to the Conservative conference on Monday, Stride set out Tory proposals to cut £47bn a year from public spending, with the biggest chunk, £23bn coming from reductions in welfare.
Continue reading...Mayor of Greater Manchester says he would have to be ‘wrenched’ out of city and says he wants UK to rejoin EU. This live blog is closed
In her Today interview Rachel Reeves was asked about a FT report saying she will urge business leaders to highlight the risks of a Reform UK government in her speech later.
The FT say Reeves will tell the Labour conference.
Who is standing up for Britain’s stability. A Labour government that is resolute in cutting interest rates and borrowing or a Reform party that cheered on Liz Truss’ mini-budget?
Who is standing up for Britain’s businesses? A Labour government that is forging a closer relationship with our nearest trading partners or a Reform party that talks Britain down and is hungry to cut us off from the world?
Continue reading...Deputy leadership candidate says party needs to be ‘clear that our objective is to lift children out of poverty’
Labour should consider raising taxes on gambling firms to cover the cost of lifting the two-child benefit cap, the party’s deputy leadership candidate Lucy Powell has suggested.
The Manchester Central MP, who is battling with the education secretary, Bridget Phillipson, to succeed Angela Rayner as Labour’s deputy leader, also acknowledged the public was “exasperated” because of “some mistakes” Labour had made in office.
Continue reading...Chancellor’s invitation criticised as ‘strange timing’ with Treasury looking at whether to raise duties on £12bn sector
The chancellor, Rachel Reeves, has been urged to cancel plans to be the guest of honour at an event hosted by the chief lobbyist of the gambling industry while the Treasury is in the midst of a review of taxes on the £12bn sector.
Reeves is slated to appear at a “private reception” for business leaders, organised by the corporate communications company Brunswick, at the forthcoming Labour party conference in Liverpool.
Continue reading...Report shows 334 companies backed by Future Fund, set up in May 2020 by then chancellor, have since gone under
UK taxpayers have lost £400m following the collapse of hundreds of startups backed by a heavily criticised Covid-era investment fund launched by Rishi Sunak when he was chancellor.
The Future Fund spent £1.14bn backing 1,190 companies, some of them of types not usually associated with government portfolios such as the sex party organiser Killing Kittens and the now defunct festival tickets business Pollen.
Continue reading...Concern for ‘anchor tenants’ as trade body warns that stores could put up prices or cut jobs to protect profits
Up to 400 large shops are at risk of closure with as many as 100,000 jobs at risk if the government goes ahead with plans to hit stores with higher business rates, retailers have warned.
Some of the UK’s largest retail premises, including supermarkets and department stores, would face higher property tax charges under new rules being considered by the government before November’s budget.
Continue reading...Government to use tax breaks and other financial incentives to encourage people to have more children
Greece has announced drastic measures, including tax breaks and other financial incentives, to address a population decline that is on course to make it the oldest nation in Europe.
The prime minister said the €1.6bn (£1.4bn) relief package had been dictated by one of the biggest challenges facing the Mediterranean nation : a demographic crisis of unprecedented scale.
Continue reading...The £18m deal to acquire Challenge Recruitment Group assets from administration repaid private funders in full
The UK exchequer is chasing about £90m in unpaid taxes after a temporary staffing business was rescued from insolvency proceedings in an £18m deal that reimbursed private funders in full.
The main assets of Challenge Recruitment Group, which counted Tesco, Sainsbury’s and Co-op among its top customers, were acquired from administration in July by the US website swipejobs, in what appears to be the second time the British staffing business has emerged from insolvency while owing tens of millions of pounds to the exchequer.
Continue reading...Investor jitters follow report by IPPR, with stock market value of sector cut by almost £8bn in morning trading
UK bank shares tumbled on Friday, cutting the stock market value of the sector by almost £8bn in morning trading, as fresh calls for a windfall tax on large lenders in the autumn budget spooked investors.
Calls for a tax grab, in a paper written by the Institute for Public Policy Research (IPPR) thinktank, took a toll on some of the UK’s biggest high street banks. NatWest Group suffered the biggest drop on Friday morning, registering a decline of as much as 5% in its share price, while Lloyds Banking Group and Barclays followed close behind, falling 4.5% and 3.6% respectively. HSBC dropped more than 1%.
Continue reading...Exclusive: Chancellor also looking at tweaks to capital gains tax to try to bridge £40bn-plus spending gap before budget
The Treasury is looking at ways to raise more money from inheritance tax amid growing pressure on the country’s finances ahead of the autumn budget, sources have told the Guardian.
Officials have been tasked with examining whether tightening rules on the gifting of money and assets could be one way of addressing a gap between revenue and spending that is estimated to reach more than £40bn.
Continue reading...Former PM says ‘exceptional’ aim to spend 5% of GDP should be a joint Nato and European initiative financed via bonds or a defence fund
This is what Gordon Brown said in his Today programme interview when asked to give more details of his plan to exempt from extra defence spending from the fiscal rules. He said other European countries were already looking at this, and that having a European-wide initiative would persuade the bond markets that in this case the rise in borrowing was justified. He said:
If you look around Europe at the moment, you’ll see that the Germans are looking at what they can do outside the fiscal rules. The European stability and growth pact is exempting a lot of defence money from the normal fiscal rules. The French are looking at other ways of doing it. The Polish have already done that.
What I’m actually asking for is a European-wide initiative where individual countries will come together and say, Look, we all have to do this. We all have to find, let’s say, an extra 1%, because 5% of course is building on some of what’s already been spent.
Continue reading...Prime minister defends government’s handling of economy but will not give assurances over not raising income tax, employee NI or VAT
Ed Davey, the Liberal Democrat leader, has urged Keir Starmer to call Donald Trump to encourage him to use his influence to block Israel’s plans for a “full occupation” of Gaza.
In a statement, Davey said:
[Israeli PM Benjamin] Netanyahu’s latest proposals for the occupation of all of Gaza are utterly horrifying.
If realised, they will only wreak yet more destruction on Gazans - while gravely endangering the lives of the hostages still held in Hamas’ captivity.
I see NIESR is talking today about a £41.2bn hole in the UK public finances
Two things are newsworthy:
Continue reading...NIESR suggests a rise of 5p in the pound on basic and higher rate of income tax would fill the budget gap
Rachel Reeves will need to raise taxes to close a government spending gap that is on course to reach more than £40bn after a slowdown in economic growth and higher-than-expected inflation, according to a leading thinktank.
In a blow to Labour’s hopes of balancing the books without breaking manifesto commitments ruling out personal tax rises, the National Institute of Economic and Social Research (NIESR) said a number of factors would knock off course the chancellor’s plans to stay within Whitehall spending limits.
Continue reading...Anneliese Dodds urges government not to duck ‘big decisions’ in autumn budget
The Treasury should consider a wealth tax to close the growing gap in the public finances, according to a Labour former shadow chancellor.
Anneliese Dodds, who held the role under Keir Starmer in opposition, said ministers must have a “full and frank discussion” with the public about the “really big decisions” they had to take at this autumn’s budget.
Continue reading...Georges Elhedery’s comments come amid speculation the chancellor could make such a move in autumn budget
The boss of HSBC has joined a growing chorus of bankers cautioning Rachel Reeves against increasing taxes on banks in her autumn budget, warning it risked “eroding” investment and ultimately harming UK growth.
Georges Elhedery, its chief executive, said banks in the UK were already subject to the highest level of taxes on profits compared with other sectors, and paid more than in most other countries. He said placing further financial pressures on lenders could spell trouble for the UK economy.
Continue reading...Darren Jones also declines to rule out wealth tax when questioned about government plans
In an interview with the Times, Andrew Bailey, governor of the Bank of England, says firms are “adjusting employment and hours” in the light of last year’s rise in employer NICs. That sounds like a euphemism for cutting jobs. But he says, if the labour market slow down, the Bank may respond by cutting interest rates more aggressively.
Asked about this comment in an interview on the Today programme, Darren Jones, chief secretary to the Treasury, played down the impact of the budget. He said:
There’ve also been hundreds of thousands of new jobs created across the economy, and in the first quarter of the year [we had] the fastest growing economy in the G7, so we’re doing everything we can to create conditions for businesses to be profitable and to be able to grow.
Of course, we had that particular tax decision in the budget last year, because our commitment was to protect working people in their pay slips. And I recognise the independence of the bank governor.
Continue reading...Former chancellor says employees’ contributions should rise to help address a £6bn shortfall caused by recent U-turns
The Unite union has voted to re-examine its relationship with the Labour party in the light of the government’s failure to support its members in the Birmingham bin strike.
It has also said it was suspending Angela Rayner’s membership, given her role as minister in charge of the department that oversees local government. The union is in dispute with Birmingham city council over proposals to reorganise waste disposal services in the city, and Unite has repeatedly said the government should step in and force the Labour-led council to settle.
Unite is crystal clear it will call out bad employers regardless of the colour of their rosette. Angela Rayner has had every opportunity to intervene and resolve this dispute but has instead backed a rogue council that has peddled lies and smeared its workers fighting huge pay cuts.
The disgraceful actions of the government and a so-called Labour council, is essentially fire and rehire and makes a joke of the Employment Relations Act promises.
Continue reading...