Rachel Reeves accuses Tories of ‘gaslighting’ public over economy

Shadow chancellor will highlight Labour’s plans to boost economy and say Conservatives are ‘out of touch’

Rachel Reeves will draw the economic battle lines for the next general election on Tuesday, challenging the government’s claims that the economy is turning a corner when millions are still struggling with the cost of living.

The shadow chancellor will accuse Rishi Sunak and Jeremy Hunt of “gaslighting” the public with over-optimistic statements about the UK economy that are “out of touch” with most people’s lives.

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Top Labour figures met financial services firms after £150k donation

OpenDemocracy investigation names attenders, including Keir Starmer, at Edinburgh meeting to discuss party’s banking policies

Senior members of the shadow cabinet have held a private meeting with a group of financial services companies to discuss the party’s banking policies just weeks after one of the companies donated £150,000 to the party.

Six senior Labour figures – including the leader, Keir Starmer, the shadow chancellor, Rachel Reeves, and the shadow business secretary, Jonathan Reynolds – attended the meeting in Edinburgh last December, according to an investigation by the website OpenDemocracy.

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Labour membership falls by 23,000 over Gaza and green policies

Party claims financial position still strong as it continues to hold a commanding lead in opinion polls

Labour has suffered a sharp fall in membership over the past two months following controversies over its policy on Gaza and its U-turn on green investment, according to figures released to its National Executive Committee (NEC). The drop of more than 23,000 members comes despite the party holding a commanding lead in the opinion polls, which suggests it is now seen by the wider electorate as ready and able to form the next government, after 14 years of Tory rule.

Labour sources said the party’s overall financial position remained strong despite membership subscriptions falling off, because donations large and small were healthy, and the expectation was that the unions would still give very substantial backing to the election effort.

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Tory party fined £10,750 by Electoral Commission for not accurately reporting non-cash donations – UK politics live

Donations were related to an employee seconded to the party by a donor

The Conservative party has been fined £10,750 by the Electoral Commission for failing to accurately report non-cash donations worth more than £200,000.

The donations related to an employee who had been seconded to the party by a donor. The commission said:

The party under-reported non-cash donations, in the form of an employee seconded to the party by a donor between April 2020 to December 2023. The non-cash donations were under reported by more than £200,000, when the seconded employee went from part-time to full-time work at the party.

The party also reported late a single non-cash donation relating to the same seconded employee, in December 2023.

Our investigation into the Conservative and Unionist Party found a number of donations inaccurately reported or reported late. The political finance laws we enforce are there to ensure transparency in how parties are funded and to increase public confidence in our system, so it’s important donations are fully and clearly reported.

Where we find offences, we carefully consider the circumstances before deciding whether to impose a sanction. We take into account a range of factors before making our final decision, including proportionality.

Penny Mordaunt is not going to become the leader of the Conservative party with a coronation. That idea is inconceivable.

In defence of Rishi Sunak, it is quite hard for a leader to be, at this stage in his leadership, significantly more popular than the party, because the two get quite closely identified and the Conservative party’s popularity fell before Rishi Sunak did, so I wouldn’t hold him personally responsible.

I think we’ve been in office for a long time, and I agree with you that the changes of leadership didn’t help. I was not in favour of removing Boris Johnson, as you may remember, but that has happened and parties need to deal with the current situation, not what might have been.

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Labour steps up preparations to govern as Reeves attacks ‘unfunded’ Tory tax cuts

Shadow cabinet talk with Whitehall officials after Keir Starmer meets head of civil service

All members of Keir Starmer’s shadow cabinet are to meet top civil servants in Whitehall departments before Easter as Labour steps up preparations to form the next government, according to senior party sources.

The Observer has been told that Starmer recently held a first round of so-called “access talks” with the cabinet secretary Simon Case, the head of the civil service, at a “neutral venue” in London, to kick off an exchange of information between the official opposition and Whitehall in advance of a potential handover of power.

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UK politics: Sunak refuses to say how abolition of national insurance would be funded – as it happened

PM says ‘people trust me on these things’ and refuses to be drawn on whether government would forgo entire £46bn raised from measure

Keir Starmer has accused Jeremy Hunt of repeating the budget mistakes made by Liz Truss during her disastrous premiership.

In comments on the budget during a visit to a building site this morning, Starmer focused on Hunt’s proposal to abolish employees’ national insurance over time, saying that this was a bigger unfunded tax promise than those in Truss’s mini-budget. (See 9.28am.)

How humiliating was that for the government yesterday?

We’ve argued for years that they should get rid of the non-dom tax status, they’ve resisted that. And now, completely out of ideas, the only decent policy they’ve got is the one that they’ve lifted from us.

Nothing that Jeremy Hunt did yesterday, nor anything the OBR said, changes anything very significantly. Which is a shame. Because that means we are still:

-heading for a parliament in which people will on average be worse off at the end than at the start,

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Bank of England governor dampens hopes of interest rate cut

Andrew Bailey says cost of living had been higher than expected in December despite ‘encouraging’ inflation news

The Bank of England governor has doused hopes that better-than-expected inflation news last month will accelerate cuts in interest rates, stressing the need for further evidence of wage moderation before Threadneedle Street moves.

Appearing before the House of Lords economics committee on Wednesday, Andrew Bailey said it was “encouraging” that inflation had remained unchanged at 4% in January but the previous month’s figure for the cost of living had been higher than predicted.

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Kemi Badenoch says death threats have ‘intensified’ since publication of Nadine Dorries book – UK politics live

Business secretary says people have ‘latched onto’ claims made in Nadine Dorries book that puts forward elaborate conspiracy theories

BMA junior doctors’ committee co-chairs Robert Laurenson and Vivek Trivedi said in a statement:

We have made every effort to work with the government in finding a fair solution to this dispute whilst trying to avoid strike action.

Even yesterday, we were willing to delay further strike action in exchange for a short extension of our current strike mandate.

In a show of goodwill, the BMA provided the Health Secretary with an option to delay further strike action.

She was asked to extend the current strike mandate for a short period - and thus allow talks to continue with the aim to achieve a resolution for this year’s dispute.

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Labour’s mixed messages on £28bn green pledge put it in worst of all worlds

Tories watch on delighted as Starmer repeats figure while the shadow Treasury team distance themselves

For weeks, Labour officials have been locked in meetings as they try to figure out how to present Westminster’s worst kept-secret: Keir Starmer’s slow U-turn away from his pledge to spend £28bn a year on the green economy.

Publicly, senior party figures insist that nothing has changed since last summer, when the shadow chancellor, Rachel Reeves, said the party would spend £28bn only if the party’s strict fiscal rules allowed.

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Labour accused of ‘massive backward step’ over decision to drop £28bn green investment pledge – UK politics live

A senior Labour frontbencher confirmed the party has ditched its commitment on green spending

Suella Braverman, the former home secretary, says reports that the government is giving up on plans for a returns agreement with Turkey are “very concerning”.

This decision by the Home Office is very concerning.

As Home Secretary I worked up proposals to list Turkey as a safe country : a member of the Council of Europe, a NATO ally and a Candidate country for EU accession.

The government should re-think this decision.

The Times said that ministers’ hopes for a returns deal, along the same lines as the current agreement with Albania, has collapsed after an internal review said Turkey was “a state that does not meet the criteria of being ‘generally safe’”.

Rishi Sunak and other leading Tories have hailed the Albania deal as a key success in the prime minister’s bid to stop small boats crossings in the Channel. But it now appears a similar agreement with Turkish president, Recep Tayyip Erdoğan is unlikely to happen.

Notably, the assessment also raises concerns over Turkey’s compliance with adverse rulings from the European court of human rights (ECHR), which the Home Office assessment said “raised questions about adherence to the rule of law”.

This is significant given Sunak’s plans not to comply with interim injunctions from the same court.

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Jeremy Hunt suggests tax cuts in budget won’t match last year’s £20bn giveaway – UK politics live

The chancellor said he wanted to manage people’s expectations ahead of the spring budget

The UK needs a government guided by clear purpose, Reeves says.

Labour has set out five missions. But they are all tied to the economic mission – to raise growth.

These are the symptoms of economic decline.

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Dublin not expecting EU objections to new trade rules for Northern Ireland – UK politics live

Irish foreign minister says he does ‘not anticipate any particular difficulties in respect of the EU side’

Back at the home affairs committee James Daly (Con) asks why so few police investigations end up in people being charged.

James Cleverly, the home secretary, says the Crown Prosecution Service is independent. He wants to make sure investigations are as professional as possible.

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Keir Starmer considers scaling back Labour’s £28bn green plans

Insiders fear further watering down of party’s flagship economic policy could leave leader open to charges of ‘flip-flopping’ by Tories

Labour is considering scaling back ambitious plans to borrow £28bn a year to invest in green jobs and industry amid fears the Conservatives will use the policy as a central line of attack in the general election campaign.

The Guardian understands that Keir Starmer and Rachel Reeves will discuss the party’s flagship economic policy next month, with senior Labour figures pushing to drop the £28bn commitment entirely while others want to retain key elements of the plan.

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Autumn statement live: Jeremy Hunt cuts national insurance as OBR downgrades UK growth forecast

Chancellor cuts employee national insurance to 10% while abolishing class 2 national insurance

Keir Starmer has said that a pause in hostilities between Israel and Hamas must be used to tackle the “urgent and unacceptable humanitarian catastrophe” in Gaza.

Welcoming the deal, which is expected to involve the release of 50 hostages being held by Hamas and a number of women and teenagers from Israeli jails, the Labour leader said his party had been calling for “a substantial humanitarian pause”. He said:

There must be immediate access to aid, food, water, fuel and medicine to ensure hospitals function and lives are saved. Aid and fuel need to not just get in but be distributed widely and safely.

We must also use the space this pause creates to take more steps on a path towards a full cessation of hostilities rather than an escalation of violence.

The real function of the projected spending squeeze is as a trap for Labour. If the opposition rejects the Tory trajectory, it will be accused of planning a profligate spree with public money. And if it pledges adherence to impossible targets, it will enter government with its hands bound too tight to deliver prompt satisfaction to the people who voted for it.

Keir Starmer and Rachel Reeves have so far operated a sensible policy of not walking into traps of this kind. That approach restored swing voters’ trust in Labour as stewards of the economy. But it tests the patience of an activist base that sees reversal of austerity as a moral imperative and can smell the incipient disappointment in promises of fiscal discipline.

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Autumn statement: Jeremy Hunt looks to cut UK taxes and ‘turbo-charge growth’

Amid less gloomy OBR forecasts the chancellor is expected to take first steps towards cutting personal taxes

Jeremy Hunt will announce 110 measures to boost Britain’s stagnant economy and bow to demands from anxious Tory MPs for tax cuts when he delivers his second autumn statement on Wednesday.

In one of the last set-piece economic events before the general election, the chancellor will pledge to “turbo charge” growth while taking the first steps to cut personal taxes after recent sharp increases.

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Labour motion to ban Truss-style budget meltdowns puts pressure on Tory MPs

Party loyalty would force Conservatives to vote against plan for fiscal responsibility

Read more: ‘I challenge Rishi Sunak: vote with Labour to stop a Truss-style disaster happening again,’ writes Rachel Reeves

Labour will force a Commons vote this week aimed at creating new legal safeguards against fiscal disasters such as Liz Truss’s catastrophic mini-budget, which sent the financial markets into meltdown and drove up mortgage rates.

The party’s plan for a “fiscal lock” to protect personal, family and the national finances from reckless politicians will be contained in an amendment to the king’s speech that will be voted on by MPs on Tuesday. The manoeuvre will present Conservative backbenchers with a dilemma over whether to back a Labour amendment, or vote against what is a plan designed to embed fiscal responsibility into the budgetary process, and protect it from wild or accidental political misjudgments.

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Keir Starmer defends his call for humanitarian pause in Gaza, saying it is quickest way to provide help – UK politics live

Labour leader says he thinks most practical way to get aid into Gaza is to have a humanitarian pause

Keir Starmer is delivering his speech to the North East Chamber of Commerce now.

He starts by saying they are near the A1, where there is a stretch of road that Rishi Sunak recently promised to upgrade.

It’s a story you see right across Britain. Infrastructure projects, some with billions already committed, businesses planning around the structures developed in rooms like this.

But the projects and investment get blocked by objections, consultations, legal challenges, ballooning costs delays, delays, delays – until it’s easier just to give up and move on.

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Rachel Reeves admits mistakes after being accused of plagiarism in new book

Shadow chancellor says she holds her ‘hands up’ in response to FT piece on seemingly copied passages in work on female economists

Rachel Reeves has said she holds her hands up and acknowledges making mistakes in her new book about female economists after she faced allegations of plagiarism.

The shadow chancellor admitted on Thursday that some sentences in her book, The Women Who Made Modern Economics, were “not properly referenced in the bibliography”.

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‘Securonomics’: five key business messages from Labour conference

With company chiefs in attendance and an endorsement from Mark Carney, shadow chancellor sought to demonstrate economic competence

At every turn in Labour’s annual conference in Liverpool, there are signs of big business on manoeuvres. Exhibition stands for Google, Ineos and Specsavers; slick videos for Amazon and Uber, fringe events sponsored by Deliveroo and Goldman Sachs, while even the parliamentary lounge – a retreat for MPs from the throng of 16,000 delegates – was sponsored by Lloyds Banking Group.

Labour was keen to demonstrate economic credibility by basking in the presence of company bosses. For business leaders, it was a chance to check out a potential government in waiting, with many commenting on the marked contrast with the Conservative conference in Manchester.

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Rachel Reeves says Labour will get rid of ‘obstacles created by antiquated planning system’ – UK politics live

Shadow chancellor will tell party conference that Labour wants to be the party of building and infrastructure

In normal circumstances, Labour conference would be front-page news, but this week’s event has being overshadowed by the war between Israel and Hamas. Rachel Reeves has been taking questions on this in her morning interviews and she stressed Labour’s support for Israel. In an interview with BBC Radio 4’s Today programme, asked about claims that the “occupation of Palestine” had provoked the attacks by Hamas, Reeves replied:

Gaza is not occupied by Israel.

The real cause of what is happening now is a terrorist attack. If Britain or any other country was attacked by terrorists, we would believe, and rightly so, that we have every right to defend ourselves, to get back hostages and to protect our citizens.

Speeding up the planning for critically important infrastructure by updating all national policy statements – which set out what types of projects the country needs – within the first six months of a Labour government.

Fast-tracking the planning process for priority growth areas of the economy, such as battery factories, laboratories, and 5G infrastructure.

If we want to spur investment, restore economic security, and revive growth. Then we must get Britain building again.

The Tories would have you believe we can’t build anything anymore. In fact, the single biggest obstacle to building infrastructure, to investment and to growth in this country is the Conservative party itself.

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