Lammy, standing in for Keir Starmer, avoided answering questions on the mistaken release during PMQs
David Lammy starts by saying the PM is in Brazil.
He says the thoughts of all MPs are still with the victims of the appalling attacks in Huntingdon and Peterborough, where, he says, he was at school for seven years.
Continue reading...Chancellor to promise ‘fairness and opportunity’ but will not repeat manifesto pledge on tax, after PM’s hint at breach
Rachel Reeves will lay the groundwork for a tax-raising budget that could break Labour’s election promise on income tax, in a major speech in which she will be “candid” about the tough choices ahead.
The chancellor will give the speech as the markets open on Tuesday, when she will promise to make fair choices at this month’s budget but decline to repeat her manifesto pledge of no rise in income tax, VAT or national insurance.
Continue reading...Reform leader refuses to commit to keeping mechanism that guarantees how pensions are increased
Farage is speaking now. He says another “depressing budget hoves into view”. It will be a budget that “doesn’t have the guts to cut public spending”.
He says Britain has been living under an illusion.
I think for some years we’ve actually been living under an illusion. We’ve not been prepared to face up to just how much of an economic mess we genuinely in.
As we slipped down the global league tables, we kid ourselves that it’s OK, we’ve got GDP growth.
Continue reading...Party leader says proposal had been an ‘aspiration’ and accuses Tories and Labour of ‘wrecking the public finances’
Nigel Farage has rowed back from his party’s election promise to cut £90bn of taxes, accusing Labour and the Tories of “wrecking the public finances” and saying Reform UK would need to get public spending under control first.
The Reform leader rejected suggestions he had been forced to break manifesto promises in order to gain economic credibility, suggesting the proposal had only ever been an “aspiration”.
Continue reading...Exclusive: Chancellor hints at rises and calls out past ‘scaremongering’ over VAT on private schools and changes to non-doms
Rachel Reeves has said higher taxes on the UK’s wealthy will form part of next month’s budget, as she shrugged off the “scaremongering” and “bleating” of her critics, and stressed her determination to repair the public finances.
Speaking in Washington, where she is attending the annual meetings of the International Monetary Fund (IMF), the chancellor told the Guardian there “won’t be a return to austerity” and hinted at tax increases for the most well-off.
Continue reading...This blog is now closed, you can read more on this story here
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.
Continue reading...This blog is now closed, you can read more on this story here
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...