Lucy Powell says Labour must stand by promise not to raise key taxes

New deputy leader also calls on government to lift two-child benefit cap urgently and in full

Labour should stand by its manifesto commitment not to raise income tax, national insurance or VAT, its deputy leader, Lucy Powell, has said in a challenge that will put pressure on Rachel Reeves.

With the Treasury examining whether to raise income tax to plug a £30bn fiscal hole, Powell said it was “really important we stand by the promises we were elected on and do what we said we would do”.

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Lucy Powell urged ministers to rethink legal action against Labour donor’s firm

Exclusive: Intervention by deputy leadership contender could have saved company based in her Manchester constituency millions

Lucy Powell urged ministers to reconsider costly legal proceedings against a property development firm in her constituency founded by a Labour donor, in a move that could have saved his company millions, the Guardian can disclose.

Powell, who is the favourite to be elected Labour’s deputy leader this week, wrote to Angela Rayner on behalf of Urban Splash, a property developer in Manchester founded by party donor Tom Bloxham.

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Starmer gives keynote speech at Labour party conference, introduced by Hillsborough campaigner Margaret Aspinall – UK politics live

Prime minister will focus on economic growth as an ‘antidote to division’ in address that will seek to strike a more combative, hopeful tone

Wes Streeting, the health secretary, has said that Tony Blair could play a positive role in Gaza helping to lead the administration there proposed under Donald Trump’s peace plan.

In an interview on LBC, Streeting said that Blair’s decision to involve the UK in the Iraq war was “a catastrophic error” that had “devasting consequences”. He said that he personally opposed it at the time.

I also think about Tony Blair’s other legacy, great legacy, which is Northern Ireland, and there he showed that he could bring together sworn enemies to broker a lasting peace.

So if Tony Blair can put those skills to use, if he’s got the confidence of both the Israelis, the Palestinians, and the regional players, as seems to be the case, then great. If he can make that contribution, and that can be another legacy, a positive legacy under his belt, then so much the better.

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Lucy Powell: Labour should raise gambling taxes to axe two-child benefit cap

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.

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Starmer urged to apologise to Epstein victims over Mandelson appointment — UK politics live

Kemi Badenoch and Ed Davey attack PM’s record over US ambassador during commons debate that was skipped by Starmer

Vikram Dodd is the Guardian’s crime correspondent.

Police expect to arrest 50 more people following Saturday’s large far-right-led march through London, the commissioner of the Metropolitan police said this morning.

If you are Conservative right-minded, then the future is Reform. The country is going to change a lot. The same people who thought that Brexit would not happen think that Reform will not happen. They are in for a shock.

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Bridget Phillipson and Lucy Powell set for two-horse race to be Labour deputy

Education secretary and Manchester MP look destined for face-off as three other candidates struggle for MP nominations

Labour’s deputy leadership contest is set to be a race between the education secretary, Bridget Phillipson, and the ousted cabinet minister Lucy Powell, as three other candidates in the race struggled to make nominations.

Phillipson comfortably cleared the hurdle of 80 nominations on Wednesday evening with backing from 116 MPs, but Powell was not yet at the threshold with 77 nominations.

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Starmer says he has confidence in Peter Mandelson amid calls to sack him over Epstein ties – UK politics live

PM was grilled by Kemi Badenoch on suitability of Mandelson for job as US ambassador

Helena Horton is a Guardian environment reporter.

Emma Reynolds, the new environment secretary, had a difficult job this morning: meeting a group of farmers after Labour caused fury in the rural community by introducing a new inheritance tax.

The Treasury reserve, designed to be used for “genuinely unforeseen, unaffordable and unavoidable pressures” has recently been used to fund higher public sector pay and compensation payouts.

In a letter to ministers, the chancellor said Treasury would only consider providing reserve funds to departments that have already maximised their savings …

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Labour insiders form new centre-left network in bid to change party’s direction

Exclusive: Andy Burnham-backed Mainstream group will inevitably influence looming deputy leadership contest

Keir Starmer is facing fresh pressure from Labour insiders, days after a sweeping government reshuffle, as party figures from the left and centre mobilise through a network, backed by Andy Burnham, designed to change Labour’s direction.

The network, called Mainstream, will inevitably influence Labour’s looming deputy leadership contest, with Burnham already throwing his weight behind former cabinet minister Louise Haigh as well as Lucy Powell, the former Commons leader.

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Starmer confirms willingness to make concessions on welfare bill, saying reforms must be fair – UK politics live

‘We want to see reform implemented with Labour values of fairness,’ the PM says

In his final answer Starmer explained how he thought government and business should work together.

A true partnership is not two people or two bodies trying to do the same thing. It’s two people or bodies realising they bring different things to the table.

Government shouldn’t try to run businesses. It’s done that in the past and it doesn’t work particularly well.

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Philp’s ‘patronising’ comment about Britons’ work ethic show Tories ‘out of touch’, TUC says – politics live

General secretary highlights ‘legacy of 14 years of falling living standards under the Tories’

In an article for the Guardian, the Labour MP Clive Lewis said Rachel Reeves’ growth speech this week means the party has abandoned its pre-election green commitments.

Here is an extract.

A growing suspicion looms that our government lacks a coherent governing philosophy or ideological compass beyond the vague pursuit of “growth”. But if growth at any cost is the mantra, the costs will soon become painfully clear. Why pledge to be clean and green, only to undermine that commitment with a Heathrow expansion promise six months later? Burning the furniture to stay warm doesn’t signal confidence – it reeks of panic.

Regardless of the motivation, Labour has crossed the Rubicon. Approving Heathrow expansion is an irreversible break with our pre-election pledges. In 2021, Reeves stood in front of the Labour party conference and declared that she would be the “first-ever green chancellor”. Now, Labour is accused of obstructing the climate and nature bill and abandoning its ambitious decarbonisation plans. The rapid turnaround is striking …

I do a bit. There are nine million working age adults who are not working. And as we compete globally with countries like, you know, South Korea, China, India, you know, we need a work ethic. We need everybody to be making a contribution. … we need to lift our game and to up our game.

Chris Philp was the architect of the Liz Truss budget which crashed the economy and sent family mortgages rocketing.

After the Conservatives’ economic failure left working people worse off, it takes some real brass neck for the Tory top team to tell the public that it’s really all their fault.

I was making the case that tax cuts…need to be accompanied by spending control or spending reductions … in order to show that the books are being balanced and to avoid the market reaction that we saw …

I made that case internally … but it wasn’t unfortunately listened to. I think had my suggestions been listened to a bit earlier, then there was a there’s a much higher chance that [the mini-budget] would have worked. And it’ll be always a matter of regret that those points weren’t taken on board.

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Closing UK parliament’s bars could put MPs at risk, says Commons leader

Lucy Powell said MPs and their aides would be ‘less well protected’ if they drank outside the Palace of Westminster

Closing all bars on the parliamentary estate could lead to security risks for MPs, the leader of the House of Commons has said.

The famous Strangers’ Bar in the Palace of Westminster has been temporarily closed while police investigate an alleged spiking incident. It is understood to have taken place on 7 January at about 6.30pm.

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Labour pledges to ‘clean up politics’ after outrage over Liz Truss honours list

Shadow front bencher says Keir Starmer would not have resignation honours after ‘appalling spectacle’ of ex-prime minister ‘rewarding cronies’

Labour last night promised there would be no resignation honour’s list issued by Keir Starmer if he were to become prime minister, as outrage grew over the list of peerages, knighthoods and other rewards showered by Liz Truss on those associated with her disastrous 49 days in office.

Shadow leader of the House, Lucy Powell, told the Observer: “The appalling spectacle of Truss rewarding her cronies for helping her crash the economy and cause mortgage misery for millions demeans politics.

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Keir Starmer promises to launch publicly-owned UK energy company as he hails ‘Labour moment’ – UK politics live

Latest updates: the Labour party leader used his conference speech to spell out his plan for the UK

The decision to pay Liz Truss’s new chief of staff, Mark Fullbrook, through a private company has been dropped after criticism from within the Conservatives as well as from opposition parties.

The government admitted over the weekend that Fullbrook would be paid through his lobbying firm, a move that could have helped him avoid paying tax. He had previously claimed the firm had stopped all commercial activities.

The world we are heading for is a bumpy few weeks. The chancellor is now going to have quite a tough time because he has now set out plans to balance the books in November. That is going to be very hard.

Actually balancing the books in November is going to be harder than it would have been to show you are balancing the books last week because higher interest rates will make it harder to do. You might need £15bn worth of tough choices now that you didn’t need last Friday.

In the end, lower taxes will mean worse public services, or other people’s taxes having to go up, and it is those choices and ducking those choices that markets are looking at and saying that is not what serious policymaking looks like.

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Labour pledges to strengthen the BBC’s independence and protect funding

Party would insulate broadcaster from political pressure, says shadow culture secretary, as Liz Truss prepares to wage war on it

Labour has pledged to strengthen the BBC’s political independence and retain it as a publicly-owned, public service broadcaster at the heart of British life, amid signs that a Tory government led by Liz Truss would wage war on the corporation.

Lucy Powell, the shadow culture secretary, told the Observer she is examining a series of reforms to insulate the BBC from political pressures, including ending “revolving door” appointments of people in politics to top posts in the corporation, and extending the charter renewal period from 10 to 15 or 20 years to reduce pressures on BBC leaders to toe the government line.

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Starmer beer claim ‘smears’ could drag on for weeks, top Labour figures warn

Shadow cabinet reveal their frustration after elections as police
re-examine allegations of Covid rules breach

Frustration is mounting within the shadow cabinet over Durham police’s decision to re-examine lockdown breach allegations against Keir Starmer, amid claims it has robbed them of the chance to herald Labour’s progress at the local elections.

Senior figures have already been dragged into debates over the conduct of their leader as they attempted to argue that Labour’s gains signalled it was on the road to building an election-winning programme.

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