Burnham promises to bring ‘substantial change’ as he gives first Commons address as prime minister – UK politics live

PM says he has a ‘clear diagnosis of what has gone wrong’ with UK, and pays tribute to Keir Starmer after his predecessor quit parliament

My colleague Richard Partington, the Guardian’s senior economics correspondent, grew up, like Andy Burnham, in the Warrington suburb of Culcheth. He has been home to find out what people there are saying about the new PM.

Yesterday, Kemi Badenoch announced a reshuffle, replacing Mel Stride with Andrew Griffith as shadow chancellor and Priti Patel with Tom Tugendhat as shadow foreign secretary.

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UK reports unexpected deficit of £1.8bn as John Healey prepares for first budget

July data shows total public debt was £2.98tn, or 94% of GDP – up £96bn on a year earlier

The UK government ran a larger than expected £1.8bn deficit in July, underlining the challenges facing the chancellor, John Healey, as he draws up his first budget.

City economists had expected a shortfall of zero for July, a month when Treasury receipts tend to be swollen by self-assessment income tax payments.

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Can Andy Burnham rewire the ‘Treasury brain’ to boost growth?

PM wants to reduce department’s stranglehold on public purse and bring long-term thinking to economic policy

Andy Burnham is far from the first prime minister to dream of taming the power of the mighty Treasury.

Boris Johnson all but forced the resignation of Sajid Javid by handpicking his team; Margaret Thatcher favoured her economic adviser Alan Walters over Nigel Lawson, prompting the latter’s furious resignation; and Tony Blair and Gordon Brown’s power struggle was the stuff of Whitehall legend.

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Healey urged to be bold on borrowing in first test of Burnham’s growth pledge

Some want the chancellor to exploit newly flexible fiscal rules – others want a more creative approach, such as borrowing from markets

With just 12 weeks to go until his first budget, new chancellor John Healey is seeking ways to ramp up public investment, without busting the Treasury’s fiscal rules – and some economists are urging him to be bold.

As he settles into No 11 Downing Street, the former defence secretary’s most immediate challenges concern day-to-day government spending.

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Healey urged to be bold on borrowing in first test of Burnham’s growth pledge

Some want the chancellor to exploit newly flexible fiscal rules – others want a more creative approach, such as borrowing from markets

With just 12 weeks to go until his first budget, new chancellor John Healey is seeking ways to ramp up public investment, without busting the Treasury’s fiscal rules – and some economists are urging him to be bold.

As he settles into No 11 Downing Street, the former defence secretary’s most immediate challenges concern day-to-day government spending.

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Calls for UK bank tax to fund cost of living help as HSBC profits hit £7.5bn

Levy could raise £19bn to help pay for Andy Burnham’s support for those struggling with bills, say campaigners

Campaigners have renewed calls for a windfall tax on UK banks that could raise £19bn towards Andy Burnham’s cost of living agenda, after HSBC raked in $10.1bn (£7.5bn) worth of profits in the second quarter of the year.

Bosses at HSBC reported on Tuesday that profits rose 60% year on year in the three months to the end of June, helped by fees from wealth management and insurance business, as well as higher interest rates, which allow the bank to charge more for loans and mortgages.

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Burnham to free mayors from ‘Treasury death grip’ with new devolved powers

Local leaders say plan will transform funding so English regions no longer rely on Whitehall handouts for projects

England’s regional mayors will be able to break out of the “death grip of the Treasury” by borrowing to invest in big projects under “transformational” plans to shift power out of Whitehall.

For the first time, mayors will keep a share of income tax generated in their area from 2028, as well as business rates totalling tens of millions of pounds by April 2027.

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Burnham does not rule out tax rises for social care reform as he fast-tracks Louise Casey’s review – UK politics live

The prime minister says that current inefficiencies in the system will be tackled first, as he reveals final recommendations will be out by summer 2027

Andy Burnham is speaking now.

In a reference to how he started campaing for social care reform almost two decades ago, he says it is good to see faces in the room “who’ve been on this journey with me for a long, a long time”.

When someone in your family is receiving care, you look at everything through new eyes, don’t you? You notice things that maybe you didn’t notice before because you watch it so closely and so carefully.

And I’ve just been really overwhelmed by their care, the skill in what they do, the professionalism.

Can I just remind everybody that nobody thought we could get everybody in off the streets?

So we can do difficult in this country and we can do it well.

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Assisted dying debate should come after end-of-life care reform, says Burnham

Introducing the legislation would be ‘very challenging’ until care system improved, PM says

Andy Burnham has said the assisted dying debate needs to wait until palliative care and social care are fixed, as he set out his path to resolving one of the most intractable problems in British politics.

The prime minister said he was not opposed to having the debate on assisted dying, but told reporters it would be “very challenging” to introduce the controversial legislation until the care system was in a better place.

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Gavin Newsom urges a national ‘billionaires’ tax’ while fighting one in California

California governor calls for national tax on super-wealthy and suggests the US should own a stake in AI companies

California’s governor, Gavin Newsom, called for a national “billionaires tax” on Friday as he fights a ballot measure targeting the ultra-wealthy in his home state.

Newsom, who is expected to run for president in 2028, published his proposal the day after California officials certified a ballot proposal to levy a one-time 5% tax on residents worth more than $1bn. The proposal, called the California Billionaire Tax Act, was brought by the Service Employees International Union-United Healthcare Workers West (SEIU-UHW) and would fund the state’s healthcare, education and food assistance programs.

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Britain ‘faces deindustrialisation’ without relief from high energy prices, survey warns

Make UK says manufacturers’ feedback shows sector at risk of collapse as it calls on Treasury to take action

Britain’s industrial sector is at risk of collapse as thousands of companies warn that they could face bankruptcy within the next year because of high energy prices, according to an industry survey.

The manufacturers’ body Make UK said the latest feedback from its members found that many would not be able to cope for much longer with energy costs that were twice the average in continental Europe and four times higher than in the US.

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Reeves’s tax cut on children’s meals a political ‘soundbite’, say restaurateurs

Chancellor’s measure to help families save money during summer holidays ‘won’t make any difference’

Cutting tax on children’s meals is a political “soundbite” that will make little difference to families or businesses, restaurateurs have said.

This week, Rachel Reeves, the chancellor, announced a temporary reduction in VAT on the children’s menu in restaurants from 20% to 5% between June and September, in order to help families with the cost of living crisis and offer a boost to the hospitality sector.

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Anthony Albanese visibly emotional after defending Labor’s capital gains tax and negative gearing changes

Prime minister launches impassioned argument in favour of much-maligned reforms announced in last week’s federal budget

A visibly emotional Anthony Albanese has launched an impassioned defence of Labor’s proposed changes to negative gearing, the capital gains tax discount and family trusts, saying he will “not allow Australia to become a country where aspiration is only for some”.

The prime minister has faced sustained criticism to the reforms, which include limiting negative gearing to new-builds while grandfathering existing properties, changing how CGT is calculated and imposing a new 30% minimum tax on discretionary trusts.

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Spending watchdog warns £38bn cost of Sizewell C nuclear plant is ‘risky’

National Audit Office says potential benefits are ‘considerable but uncertain’ while risks are ‘immediate and substantial’

The cost of the government’s £38bn nuclear plant in Suffolk is subject to “significant uncertainty” and may outweigh the benefits for UK households until at least 2064, according to the government’s spending watchdog.

The National Audit Office (NAO) has warned that although the potential benefits of the Sizewell C nuclear plant are considerable, they remain uncertain. The risks, however, are “immediate, substantial and borne by the public”.

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Starbucks’s retail arm gets £13.7m tax credit even as sales increase

Credit can be used to offset future bills as full-year losses at UK division widen to £41.3m and it adds 92 stores

Starbucks’s UK retail arm received a £13.7m corporation tax credit last year, even as its sales increased 6% and it added more than 90 stores.

The credit, which can be used to offset future tax bills, comes after losses widened to £41.3m in the 12 months to the end of September – almost matching the £40m it paid in royalty and licence fees to its parent company.

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New UK farm inheritance tax rule will cause ‘significant challenges’, say accountants

Levy on inherited farms and family businesses worth £2.5m or more comes into force 6 April

A new inheritance tax regime for UK farms and family businesses comes into force on Monday and will present “significant challenges” for those affected, according to accountants.

In October 2024 the government announced plans to levy inheritance tax on farms – prompting an outcry in many quarters.

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Zack Polanski tells NEU teachers’ union that Greens would abolish ‘toxic’ Ofsted – UK politics live

The Green party leader said Ofsted is a ‘failed institution’ and that teaching should move ‘toward a genuinely collaborative model’

Starmer complained about other parties whipping up division, and he specifically criticised Nick Timothy, the shadow justice secretary, for “complaining about Muslims praying in public”.

Labour, by contrast, values bringing people together, he said.

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OBR a backseat driver with out-of-date maps, thinktanks tell Rachel Reeves

Chancellor urged to reform Office for Budget Responsibility to open way to more public investment

Rachel Reeves must reform the Office for Budget Responsibility (OBR) to open the way to more public investment, an alliance of thinktanks has argued ahead of the chancellor’s spring forecast on Tuesday.

With Keir Starmer’s government under intense pressure after Labour’s defeat by the Greens in Thursday’s Gorton and Denton byelection, the thinktanks called on Reeves to review the watchdog’s remit.

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Don’t be fooled by recent good news, the UK economy is still in a precarious state

Labour MPs may clamour for bolder spending, but – like their Tory and Reform counterparts – they ask for the unaffordable

Too many Labour MPs want it all, and no amount of pleading from the top of government about the depleted public finances seems to make a difference.

The mainly leftist MPs want all the wrongs of the last 15 years put right and quickly. Their next opportunity to demand more cash arrives when Rachel Reeves delivers her spring statement on 3 March.

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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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