Category Archives: Rachel Reeves

Rachel Reeves’ pension plan could damage the north, says ex-minister

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Lord Jim O’Neill says small businesses could lose out from merger of local government schemes to create large fund

Government plans to create one of the largest pension schemes in the world from a merger of 87 local authority retirement funds could undermine investment in groundbreaking businesses across the north of England, according to former Treasury adviser Lord Jim O’Neill.

Innovative startup businesses, many of them spun out of universities in Manchester, Leeds and Sheffield, could lose out if the Treasury creates a big fund interested only in backing large companies, he said.

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UK recovery ‘will accelerate and force Bank to keep interest rates higher for longer’

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Niesr forecasts raise doubts over chance of further cuts by Bank of England before end of year

The UK’s economic recovery will accelerate over the next year, forcing the Bank of England to keep interest rates higher for longer, according to the National Institute of Economic and Social Research (Niesr).

Signalling that bets on further interest rate cuts before the end of the year could be misplaced, the thinktank said a modest economic recovery and the threat from persistent inflationary trends should make the central bank more cautious about reducing the cost of borrowing.

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UK pensioners left on ‘financial cliff edge’ by cuts to winter fuel payments

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New analysis shows tens of thousands of older people may end up worse off than those who retain energy benefit

Tens of thousands of pensioners are on a financial cliff edge because of the government’s decision to radically restrict winter fuel payments, a new analysis has revealed. The chancellor, Rachel Reeves, opted to introduce a means test for the payments, with only those on pension credit qualifying, stating it was one of the “difficult decisions” she had to make, as she accused the Tories of leaving £22bn in unfunded commitments.

The decision removes the payments from about 10 million pensioners in England and Wales. Officials said this weekend the policy would be among a package of measures “to fix the foundations of the economy”.

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Relief for borrowers as UK interest rates cut but little sign big reductions to come

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Incremental cuts likely over two to three years with rates expected to stay well above pre-Covid levels of 0.75%

Borrowers will breathe a collective sigh of relief. The Bank of England has cut interest rates by a quarter point to 5% and major lenders are shaving their best-buy mortgage offers in response.

Those wanting to get on the housing ladder should find property slightly more affordable after the cut, which ends a year of ultra-high borrowing costs and is the first rate cut in more than four years.

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Greens say Labour should focus more on building council homes and that new housing plan is flawed – UK politics live

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Rayner says housing target system will raise number of homes planned to 370,000 and confirmed targets will be mandatory

Balls, who, of course, is a former Labour cabinet minister, and a former shadow chancellor, questions whether Reeves is right to suggest that Jeremy Hunt is wholly to blame for the black hole. He says that other cabinet ministers and departments drew up the spending plans that she says were unfunded.

Reeves repeats the point she has been making all morning about how the public were misled. (See 8.06am.)

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Winter fuel payments to be restricted as Reeves says there is £22bn spending shortfall – UK politics live

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Chancellor suggests budget, on 30 October, will involve tax rises and cuts to spending and benefits

Downing Street has refused to comment on a report saying junior doctors are being offered a pay rise worth about 20% over two years.

In a story for the Times, Steven Swinford reports:

The British Medical Association’s (BMA) junior doctors committee has recommended an offer that includes a backdated pay rise of 4.05 per cent for 2023-24, on top of an existing increase of between 8.8 per cent and 10.3 per cent.

Junior doctors will be given a further pay rise of 6 per cent for 2024-25, which will be topped up by a consolidated £1,000 payment. This is equivalent to a pay rise of between 7 per cent and 9 per cent.

As we’ve said before, we’re committed to working to find a solution, resolving this dispute, but I can’t get into detailed running commentary on negotiations.

We’ve been honest with the public and the sector about the economic circumstances we face. But the government is determined to do the hard work necessary to finally bring these strikes to an end.

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Hospital and road projects face cuts to plug £22bn fiscal hole, Reeves says

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Social care and winter fuel payments also targeted as chancellor accuses Tories of covering up scale of fiscal shortfall

Rachel Reeves has scrapped the social care cap and curbed winter fuel payments, as well as announcing big cuts to hospital and road projects, as she seeks to plug what she called a £22bn hole in public spending that was “covered up” by the Conservative government.

In a statement to the Commons that mixed detailed economics and partisan politics, the chancellor justified the cuts with the repeated mantra: “If we cannot afford it, we cannot do it.”

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Rachel Reeves paves way for cuts and tax rises to fill shortfall left by Tories

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Chancellor will announce pause in work on a number of infrastructure projects, saying Conservatives ‘covered up’ true state of finances

Rachel Reeves will lay the ground for cuts to public spending, tax rises and delays to some major infrastructure projects on Monday as she sets out the toxic inheritance the Labour government inherited from the Tories.

She is expected to pause work on a string of infrastructure projects, including Boris Johnson’s flagship plan to build 40 new hospitals and the proposed two-mile road tunnel bypassing Stonehenge.

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Wealth taxes could raise £10bn to help plug Tory budget hole, say economists

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Reforms to inheritance and capital gains taxes could reduce £20bn shortfall and combat UK’s widening wealth gap

Rachel Reeves could quickly find around £10bn a year to plug half of the fiscal hole left by the Conservatives if she were to raise taxes on soaring levels of unearned wealth, according to leading economists.

New research by the independent Resolution Foundation published today finds that Britain is a country of “booming wealth” but “busted wealth taxes”, leaving ample potential for the chancellor of the exchequer to raise desperately needed funds by raising taxes on the richest.

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Rachel Reeves to delay some of Tories’ ‘unfunded’ road and hospital projects

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Chancellor attempts to plug £20bn hole in spending but will commit to above-inflation public sector pay rise

Rachel Reeves is to delay a number of “unfunded” road and hospital projects on Monday as part of the Treasury’s anticipated plans to plug an apparent £20bn hole in spending left by the Conservatives, while committing to an above-inflation public sector pay rise.

The chancellor is expected to argue she has inherited capital projects that are “unfunded with unfeasible timelines” as part of her Treasury audit report to the Commons. The audit will be seen as an indication of the government’s early commitments and priorities.

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Rachel Reeves expected to reveal £20bn shortfall in public finances

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Chancellor may raise some taxes in the autumn due to what Labour describes as its ‘shocking inheritance’ from Tories

Rachel Reeves is expected to reveal a £20bn hole in government spending for essential public services on Monday, paving the way for potential tax rises in the autumn budget.

Labour sources said the blame lay with the Tory government, describing it as a “shocking inheritance” and accusing the former chancellor of “presiding over a black hole and still campaigning for tax cuts”.

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Labour facing moment of truth over tax pledges, economists warn

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Experts say 5.5% pay increase for public sector not ‘consistent’ with spending plans that rule out tax rises

Labour is fast approaching a moment of truth over its election pledges on tax and spending, experts have warned, after Rachel Reeves indicated the government could agree above-inflation pay rises for public sector staff.

The chancellor promised a full statement on pay board recommendations that teachers and NHS workers should receive 5.5% pay awards, ahead of an autumn budget that is set to be one of the most difficult economic balancing acts in years.

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Wetherspoon’s boss Tim Martin praises economic ‘pedigree’ of Rachel Reeves

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Brexit supporter calls for new chancellor to ‘rectify tax inequality’ in hospitality industry

Tim Martin, the politically outspoken boss of the JD Wetherspoon pub chain, has praised the new Labour chancellor’s economic “pedigree”, as he called for tax changes to help the struggling hospitality sector.

Martin regularly publishes economic and political commentary alongside his company’s results and has previously voiced support for Brexit and Boris Johnson.

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‘The adults are back in the room’: Treasury minister promises new approach as Starmer’s government starts work – UK politics live

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Darren Jones says Labour government will ‘return to service of British people’ as Keir Starmer continues his tour of the UK

Keir Starmer has met Northern Ireland first minister Michelle O’Neill and deputy first minister Emma Little-Pengelly in Belfast, PA Media reports. PA says:

The prime minister is visiting Belfast following his trip to Scotland on Sunday, and will also visit Wales to round off a visit to the three devolved nations.

He arrived at Stormont Castle early on Monday morning as he begins his first full week in office, ahead of travelling to the Nato summit in Washington on Tuesday.

I expect that we will be challenged in the House of Commons.

Of course the Conservatives suffered a historic loss, but that doesn’t mean there’s no opposition in the House of Commons and of course, we have the House of Lords to get any legislation through as well.

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French stock market swings to gain after election surprise; Britvic agrees to improved Carlsberg offer – business live

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Live coverage of business, economics and markets after New Popular Front is largest party in second round of France’s election, with far-right third

The French election has meant that Marine Le Pen’s far-right National Rally (RN) will not be in power, but it has not settled what France’s new government will look like.

The New Popular Front (NFP), the hastily arranged coalition of left-wing parties, won the most seats, but it is far short of a parliamentary majority. The result will mean a lot of negotiation to agree on who will be the new prime minister – let alone on achieving anything meaningful in governing the country.

The French parliament is more divided than ever, made up mainly of three blocs (Left – 182 seats, Centre – 168 seats, Extreme Right – 143 seats) and a number of smaller ones. As we predicted before the elections, no bloc can claim an absolute majority.

Minority government

French political parties “are not used to making concessions in order to create a programme around a coalition with other parties”, and the NFP’s most prominent figure, Jean-Luc Mélenchon demanded its entire programme be implemented. “If political parties maintain such positions, a long period of instability will ensue,” said Ledent.

Learning to cooperate

“Excluding the 80 MPs from the far left and the 145 from the far right, there are over 350 MPs left to form a broad coalition ready to reform France, taking into account the diversity of opinions. In other European countries, including Germany, such a configuration would be quite natural and would result in a government with a clear majority.

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UK general election live: Labour suspends candidate Kevin Craig over Gambling Commission probe

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Party says it acted after being contacted by the regulator about the candidate for Central Suffolk and North Ipswich

All along the course of the Thames, turning north, meandering south, passing through locks, historic landmarks, Richmond and Kew, swelling beneath the House of Commons with the turning tide, and on to Docklands and beyond – concern for the health of the Thames has led many other ordinary people, who live, work or play on the water, to take up the fight for the health of the river.

The last 15 years of decline in rivers suggests they have much to do. In 2009, a year before the Conservatives first took power in a coalition with the Liberal Democrats, a quarter of English rivers were judged as being of good ecological standard, a marker which examines the flow, habitat and biological quality; by 2022 not one river was in a healthy state.

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JK Rowling agrees to meeting with Labour about gender transition policy

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Author responds after shadow chancellor says party would be ‘really happy’ to ‘give her assurances’

JK Rowling has agreed to a meeting with Labour after Rachel Reeves said the party would be “really happy” to “give her assurances” over its plans to change the process through which people can legally change gender.

Speaking in Scotland, Reeves said protection for women-only spaces would “absolutely stay”, adding: “We’re not going to be changing anything around biological sex … We’re really happy to talk to JK Rowling to give her assurances about that.”

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Starmer’s growth plan ‘doomed’ without access to EU markets, warn economists

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Labour leader told if elected he will have to rejoin the customs union to meet party’s manifesto pledges, while 56% of voters say Brexit was bad for economy

A Labour government under Keir Starmer will fail to maximise the UK’s economic growth unless it takes the country back into the European Union’s single market and customs union, leading economists and diplomats have said.

The warnings come as an Opinium poll for the Observer finds that 56% of voters now believe Brexit has been bad for the UK economy as a whole, compared with just 12% who believe it has been economically beneficial.

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Tory government ‘worst in postwar era’, claims expert study – as it happened

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Sir Anthony Seldon leads analysis that concludes that equality, growth and the UK’s standing in the world have all declined since 2010

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And here are some of the best pictures from yesterday’s campaigning. As more voting people than ever appear poised to turn away from the Tories, Sunak appeared in several photographs with sheep and lobsters as he visited North Devon, held by the Tories since 2015. The Guardian’s Archie bland named the sheep the “Dubious photo opportunity of the day”, after the sheep ran away:

Starmer, meanwhile, appeared on LBC where he clarified that Premier League Football Clubs would not be subject to a 10% transfer tax to fund clubs lower down the pyramid. “Let me just kill it dead, we’re not looking at that,” Starmer said. He also visited a tennis club and a pub in Reading West and mid Berkshire.

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Expert economists back Labour’s plan to end economic stagnation in UK

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Nobel prize winners and former Bank of England officials believe Rachel Reeves and Keir Starmer can bring about ‘desperately needed’ change

Labour’s plans for ending Britain’s long-term economic stagnation have been backed by a group of leading economists, including three Nobel prize winners and a former Bank of England deputy governor.

In a boost to the shadow chancellor, Rachel Reeves, the 16 UK and internationally based economists said change was “desperately needed” after the policy mistakes and failures of the past 14 years since the Conservatives took power.

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