Rishi Sunak tackled on LBC Radio by mother who cannot afford to heat home

Chancellor faces warnings that he has not done enough to address biggest fall in living standards on record

Rishi Sunak has been tackled by a single mother who cannot afford to heat her home and has had to take on two extra jobs, as the chancellor faced warnings that he has not done enough to address the biggest fall in living standards on record.

He was challenged on LBC Radio by Hezel, a single mother, who said she had a good salary “on paper” but rising costs had put “an intense strain” on her ability to provide for her children.

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‘Sticking-plaster measures’: Sunak fails to ease pain of surging costs, say firms

Hospitality, manufacturing and haulage sectors say spring statement falls far short of the help needed

The spring statement did not deliver much to help Lesters, a small but growing packaging company struggling with rising costs.

The Staffordshire-based firm’s energy bills will rise from £7,000 a month to £18,000 when the current contract runs out. Speaking after Rishi Sunak’s spring statement, Lesters’ managing director, Billy Hutchinson, said the chancellor had offered nothing to help on this key issue.

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Rishi Sunak to promise ‘security for working families’ in spring statement

Chancellor expected to announce fuel duty cut in package of measures to tackle cost of living crisis

Rishi Sunak will promise “security” to cash-strapped families as he announces a fresh package of measures to tackle the cost of living crisis on Wednesday, but will continue to underline the importance of fixing the public finances.

The chancellor has been under intense pressure to take action to help households with the rocketing cost of fuel and other essentials. The financial expert Martin Lewis told MPs on Tuesday that many households are facing a “fiscal punch in the face” when the energy price cap rises next month.

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Rishi Sunak handed borrowing boost before spring statement

Figures improve chances of fuel duty or other tax cuts but inflation drives up cost of government debt

Rishi Sunak has been handed a boost from figures showing lower government borrowing than official estimates on the eve of the spring statement.

The figures come despite a sharp rise in debt interest payments last month amid soaring inflation.

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Treasury considers ways to ease cost of living in spring statement

Reluctant to make big fiscal changes, chancellor Rishi Sunak considers tax adjustments and fuel duty cut

The Treasury has drawn up a range of options to help with the cost of living crisis – including a 1p cut to income tax, raising the national insurance threshold and a significant cut to fuel duty.

But government sources said Rishi Sunak, the chancellor, was still reluctant to make big fiscal changes.

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Raise benefits and pensions to help lower earners, thinktank tells Rishi Sunak

Resolution Foundation says pegging benefits to inflation will target help to needy better than scrapping NI rise

Rishi Sunak should consider raising benefits and pensions to keep pace with inflation, research has suggested, as the chancellor faced increasing pressure to tackle the cost-of-living squeeze in this week’s spring budgetary statement.

Increasing benefits by an extra five percentage points, by 8.1% rather than the 3.1% currently planned, would give four times as much help for low-to-middle income households for every pound spent as scrapping the planned national insurance rise, the Resolution Foundation said.

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Rishi Sunak urged to restore UK aid spending after Ukraine invasion

Leading thinktank finds cuts made during pandemic have harmed the UK as well as recipient countries

Rishi Sunak is being urged to boost aid UK spending in this week’s mini-budget after an in-depth study by a leading thinktank showed government cuts had the biggest negative impact on the world’s poorest countries.

The campaign group One said the aid budget was at “breaking point” and would come under renewed pressure as a result of humanitarian and refugee spending in response to the war in Ukraine.

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Priority is to cut taxes, says Rishi Sunak before spring statement

Chancellor believed to be considering cut in fuel duty among measures to tackle cost of living crisis

Rishi Sunak has promised that tax increases are “done”, as he dropped a heavy hint that he is preparing measures to tackle the rising cost of living in next week’s spring statement.

The Institute for Fiscal Studies (IFS) said this week that Sunak had announced more tax rises in two years – worth 2% of GDP – than Gordon Brown did in a decade.

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Jacob Rees-Mogg says Ukraine war shows Partygate scandal was just ‘fluff’ – as it happened

Brexit opportunities minister says people will find Partygate scandal ‘fundamentally trivial’ in the context of war in Ukraine. This live blog has now closed.

“I think people respect honesty,” says Rishi Sunak. A few weeks ago this would have been seen as an obvious dig at Sunak’s boss, but it did not sound like that today. He was talking about Treasury policy in the early days of the Covid pandemic, and how he felt it was important to admit that government policy would not be able to save all jobs.

Now he’s talking about the family dog. He was oppoosed to getting a puppy for a long time, he says, but when he became chancellor, he was spending so much time at work that he lost the moral authority to say no.

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Gordon Brown urges Sunak to address cost of living crisis in spring statement

Ex-PM warns millions of people will fall into fuel poverty as bills price cap is lifted in April

Former prime minister Gordon Brown has warned the chancellor, Rishi Sunak, that millions more people will be plunged into fuel poverty unless the government uses next week’s spring statement to ease the UK’s cost of living crisis.

A letter to the chancellor, organised by Brown and signed by more than 70 Labour local government leaders, urged the chancellor to adopt a five-pronged approach to help those struggling to make ends meet.

Halt the 1.25 percentage-point increase in employee national insurance contributions.

Restore the £20 a week taken away from 6m households last October.

Provide significantly greater help for energy costs, targeted at the poorest households.

Put in place support for insulation costs for the poorest households as part of a programme for housing retrofits.

Update benefits this year in line with inflation rates.

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Tory row over testing casts shadow over PM’s Covid announcement

Analysis: cabinet colleagues horrified over wrangling between Rishi Sunak and Sajid Javid

Cabinet ministers were already waiting in No 10 on Monday morning when it became clear the sign-off for the prime minister’s much-anticipated end to Covid regulations was not going to be as perfunctory as they had imagined.

A festering row between Rishi Sunak’s Treasury and Sajid Javid’s health department was responsible, first reported by the Guardian last week and still unresolved.

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Covid restrictions and free mass testing to end in England on 1 April

Announcement by Boris Johnson shows Rishi Sunak has won out over Sajid Javid in cabinet battle over funding

Covid laws and free mass testing are to be swept away across England after Rishi Sunak won a cabinet battle on cutting the cost of the pandemic, prompting fears that the poor and vulnerable will pay the price.

Boris Johnson announced plans to end free testing for the general public from 1 April, saying it was time for people to “get our confidence back”.

Contact tracing will end from Thursday and contacts of people testing positive will no longer have to test or isolate.

Schools and other education settings will no longer be advised to test twice-weekly, with immediate effect.

NHS and social care staff will no longer get asymptomatic testing but this is expected to continue for patients and care home residents.

Covid passports will be scrapped from 1 April, with venues no longer recommended to use them. They will still be available for international travel.

The Office for National Statistics survey of Covid in the community will be maintained but in a slimmed-down version.

The Vivaldi study on care homes and Panoramic study on antivirals will continue, the government insisted, although it was not clear how they will be funded and whether enough testing is being done to support them.

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Ending all Covid restrictions ‘premature and not based on evidence’, says BMA

Council chair says decision not guided by data or made in consultation with health profession

Ending all Covid restrictions is premature and “not based on current evidence”, the British Medical Association has said, as experts warned dropping testing and self-isolation could lead to a surge in cases.

Boris Johnson told MPs last week that he was preparing to lift the legal requirement in England to self-isolate on 24 February, a month earlier than originally planned, with a formal announcement expected on Monday.

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UK and Scottish government agree deal on freeports in Scotland

Plan proposes two ‘green freeports’ based around low-emission industries

UK ministers and the Scottish government have reached a deal over proposed freeports in Scotland, after months of disagreement over what No 10 has billed as one of the main economic benefits of Brexit.

The Scottish government had resisted the idea of freeports – specific areas that offer tax breaks and other incentives to investors – which are intended to revitalise deprived areas but have been accused of encouraging tax avoidance and lower regulation.

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Four Johnson aides quit in fallout from Downing Street parties

Policy chief Munira Mirza was first to go, followed shortly by Jack Doyle, Dan Rosenfield and Martin Reynolds

Four of Boris Johnson’s key staff have quit as the fallout from the Downing Street party scandal continued to shake his hold on government.

Johnson’s longstanding policy chief Munira Mirza was the first to go, using a stinging resignation letter to accuse the prime minister of “scurrilous” behaviour when he falsely linked Keir Starmer to the failure to bring paedophile Jimmy Savile to justice.

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UK economy back to pre-pandemic levels in November

GDP expanded by 0.9% before impact of Omicron as Christmas shopping began early

The UK economy surpassed its pre-pandemic level for the first time in November after growing by 0.9% over the month, partly driven by an unexpected surge in early Christmas shopping.

The Office for National Statistics (ONS) said a jump in restaurant bookings and a rapid turnaround in construction output were also behind the growth that took the size of the economy 0.7% above its level before March 2020.

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The Guardian view on levelling up: a flagship policy adrift and becalmed | Editorial

More mayors and a shake-up of local government will not be enough to rebalance the economy and heal the north-south divide

Two years after Boris Johnson made “levelling up” the lodestar of his new administration, the public still struggles to understand what the prime minister means by it. A new YouGov poll has found that half of those questioned either had no idea what the phrase signifies, or were not completely sure. The government’s flagship domestic policy resembles a ghost vessel drifting in a mist of Whitehall obfuscation and procrastination.

After a torrid period, Mr Johnson badly needs this to change in the new year. However fuzzy the follow-through, the political logic of his original pledge to level up England remains crystal clear: as it seeks to hold together the new electoral coalition forged in the 2019 “Brexit election”, improving the situation and prospects of voters in the north and Midlands is fundamental to the government’s hopes of re-election. The pots of money distributed piecemeal via the various levelling-up funds – described as a “drop in the ocean” by the Centre for Cities thinktank – will not cut it. Having promised to restore pride, regenerate places and deliver economic growth in the “red wall”, a convincing plan is urgently required to demonstrate how this will be done. The indications are that this will not be forthcoming, partly for fear of antagonising voters in the more prosperous south.

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Christmas curbs could be brought in within days, says Sajid Javid

Health secretary expected to announce whether social mixing will be curtailed over festive period

Sajid Javid has made clear that fresh Covid restrictions could be imposed before Christmas to slow the spread of the Omicron variant, with ministers set to make a decision in days.

Government insiders expect an announcement to be made early next week about whether social mixing will be curtailed before the festive period – potentially including a cap on the number of families that can meet, or even hospitality closures.

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Liz Truss plays stateswoman as Tory leadership contenders line up for battle

The foreign secretary was doubtless happy to project an image of authority at a G7 meeting as chaos reigned in Downing Street

While Downing Street spent a disastrous week attempting to deal with scandals over parties and wallpaper – and the prime minister was juggling the crises with the birth of a daughter – things were somewhat more serene for another member of his top team.

Rather than dealing with resignations among staff or the latest revelations about Whitehall Christmas parties, foreign secretary Liz Truss has spent the weekend boosting her credentials as a stateswoman, using a meeting of her international counterparts in Liverpool to pitch herself as one of those protecting “the frontiers of freedom” around the world.

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ECB keeps interest rates on hold, warns of ‘transitory’ higher inflation – business live

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The global semiconductor shortage and ongoing disruption to supply chains continue to knock carmakers’ profits.

Volkswagen and Stellantis both suffered financial hits in the third quarter the year, as a result of the global shortage of computer chips, which has prevented the firms from producing as many vehicles as they had originally planned.

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