Chancellor expected to give changed address after confirming plan to axe top rate of income tax has been scrapped
Q: Where does this leave your credibility?
Kwarteng says he has been in parliament for 12 years. He says ministers do sometimes change their minds.
I decided, along with the the prime minister, not to proceed [with the policy].
Continue reading...Influential former minister hints he will not vote for mini-budget measures, in blow to PM
Michael Gove said Liz Truss’s programme of tax cuts was deeply concerning and “not Conservative”, and hinted he would not vote for them, in a major blow to the prime minister’s authority.
Gove, who was removed as levelling up secretary before Boris Johnson left No 10 but remains a hugely influential Tory MP, said he could not back Truss’s abolition of the top 45p rate of tax, or the removal of the cap on bankers’ bonuses.
Continue reading...Latest updates: PM vows to press ahead with mini-budget plans and dismisses objections to top rate of tax being axed
Q: Are you absolutely committed to getting rid of the 45% rate of tax?
Yes, says Truss.
Continue reading...Climate and cost of living campaigners converged in London protests
Thousands of supporters of Just Stop Oil have blocked four bridges across the Thames.
Protesters blocked Waterloo Bridge, Westminster Bridge, Lambeth Bridge and Vauxhall Bridge with sit-down protests after marching from 25 points around the centre of London.
Continue reading...Electrical goods retailer keen to attract and retain workers as cost of living increases
Currys has raised pay for the third time in 13 months to attract and retain workers amid a labour shortage and rise in the cost of living.
The electrical goods retailer said that from 30 October it was increasing rates by 3.5% to a minimum of £10.35 an hour (£11.43 in London), only a month after a previous rise came into effect.
Continue reading...No 10 says PM has faith in chancellor, as Treasury minister says tax cuts are the ‘right plan’. This blog is now closed
Q: When would you get debt falling as a proprotion of GDP?
Starmer says Labour does want to get that down.
Continue reading...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.
Continue reading...Latest updates: Labour delegate says current electoral system allows Tories to get away with measures like ‘protecting bankers’ bonuses’
In June, as the RMT union launched what has become an ongoing series of strikes, Keir Starmer ordered Labour frontbenchers and shadow ministerial aides not to join picket lines. This infuriated leftwing Labour MPs and some union leaders, notably Sharon Graham, the general secretary of Unite.
At one point it looked as if there might be a huge row at conference about whether shadow ministers should or should not be allowed to join picket lines. But, in an interview with the Today programme this morning, Graham suggested that a truce of sorts has been agreed – even if the two sides do not entirely see eye to eye.
My issue about this … isn’t necessarily around one person on a picket line because, quite frankly, that isn’t the issue. The issue is the mood music [ordering shadow ministers not to join picket lines] suggests. It suggests a mood music that being on the picket line is somehow a bad thing. It’s a naughty step situation.
The party who is there to stick up for workers should not give the impression – that’s the problem, it gives the impression – that they are saying picket lines are not the place to be. And I think that it was unfortunate. I think it was a mistake. I think, to be honest with you, Labour knows it was a mistake. And I don’t actually think it’s holdable.
When people go on strike it is a last resort at the end of negotiations. And I can quite understand how people are driven to that … I support the right of individuals to go on strike, I support the trade unions doing the job that they are doing in representing their members.
I’m incredibly disappointed that as delegates we’ve been excluded from this key part of the conference’s democratic process.
This is an unprecedented move silencing members’ voices. Our CLP sent us here to Liverpool to promote our motion on public ownership and a Green New Deal, but we’ve been unfairly denied that right.
Continue reading...Phishing attacks have started to target people in difficult financial situations, ONS reports
Fraudsters have adapted their tactics to exploit the rising cost of living, officials have said.
A report from the Office for National Statistics (ONS) said anti-fraud squads had identified new trends as phishing attacks – when perpetrators attempt to trick users into clicking a bad link – have started to target those in difficult financial situations.
Continue reading...Soaring energy prices after invasion of Ukraine have added almost £10 to cost of charging family-sized car, says RAC
The price of charging an electric car using a public rapid charger has jumped by almost £10 since May because of soaring energy costs after Russia’s invasion of Ukraine.
The increased price of wholesale gas and electricity has pushed up the price to charge an average family-size car by 42% to above £32, according to analysis by the RAC. That was £9.60 more than in May, and £13.59 more than a year earlier.
Continue reading...Tax cuts to cost Treasury around £37bn in 2023-24, official figures reveal
There are no urgent questions in the morning, and so Kwasi Kwarteng, the chancellor, will be delivering his statement soon after 9.30am.
The Commons starts sitting at 9.30am, but they always begin with prayers in private, and so Kwarteng will be up a few minutes later.
The last time they did it one third of the beneficiaries were people buying second homes or buy to let, so we are sceptical that this is the magic bullet to increase homeownership. What we really need to do is to build more houses and to help get people onto the property ladder by increasing the supply of housing.
When this has been done before, it has often fuelled an already hot market and many of the beneficiaries have been people buying a second or third home, rather than the first time buyers that we really want to help who are often trapped in private rented accommodation where they’re paying as much in rent every month as they would in a mortgage.
Continue reading...Annual Good Food Nation survey finds a fifth of Britons no longer turn on their oven to save money
Families have crossed Sunday roasts, stews and home baking off the menu and in drastic cases no longer use their oven, as soaring energy costs force big changes in the kitchen.
One in four home cooks said they were less likely to prepare a roast dinner, while a fifth were not baking as many cakes or biscuits, according to the annual Good Food Nation report.
Continue reading...The chancellor says the move will save 28m people £330 on average next year
Catholics outnumber Protestants in Northern Ireland for the first time, a demographic milestone for a state that was designed a century ago to have a permanent Protestant majority, my colleague Rory Carroll reports.
Thérèse Coffey is deputy prime minister as well as health secretary. Speaking on ITV’s Good Morning Britain this morning, and responding to a question from the former Labour MP Ed Balls, who was presenting, she said that as deputy PM whould be would “chairing things like the home affairs committee and different elements like that”. But she rejected claims this meant she would be doing the health job part time. She said:
I’m conscious that in two weeks we’ve already pulled together our plan for patients and we will continue to develop that.
I don’t think it will be a case of being part-time ... We don’t have fixed working hours.
Continue reading...Health experts encourage doctors to talk about nutrition and socio-economic circumstances
Children’s doctors plan to help poor families cope with the cost of living crisis and its feared impact on health, amid concern that cold homes this winter will lead to serious ill health.
In an unusual move, the Royal College of Paediatrics and Child Health (RCPCH) is issuing the UK’s paediatricians with detailed advice on how they can help households in poverty.
Continue reading...Sir Bob Kerslake calls on government to protect at-risk tenants as it did during pandemic
The former head of the civil service has warned of a looming “catastrophic” homelessness crisis caused by the cost of living unless the government reintroduces the eviction ban that protected tenants during the Covid-19 pandemic.
Sir Bob Kerslake, who chairs the Kerslake Commission on Homelessness and Rough Sleeping, said a failure to act “could see this become a homelessness as well as an economic crisis and the results could be catastrophic; with all the good achieved in reducing street homelessness since the pandemic lost, and any hope of the government meeting its manifesto pledge to end rough sleeping by 2024 gone”.
Continue reading...Latest updates: prime minister says she is willing to implement unpopular policies to try to boost growth in the UK
Rosie Cooper has indicated that she intends to stand down as Labour MP for West Lancashire to take up a new job as chair of the Mersey Care NHS foundation trust. In her statement announcing the move Cooper says that events in recent years have “undoubtedly taken their toll” – a reference to Cooper being targeted by a neo-Nazi who was jailed for life in 2019 for plotting to kill her.
Cooper’s statement implies she will resign and trigger a byelection. At the last election she had a majority of more than 8,000 over the Conservatives, and in a byelection Labour would be expected to hold the seat very easily.
Continue reading...Some parent bodies helping with core costs, raising fears of growing gap between rich and poor areas
Days into the new academic year, headteachers have raised the alarm about a looming funding crisis in schools, with some parents urged to make donations and parent-teacher associations on standby to plug funding gaps for classroom essentials.
As energy bills and wage costs rise, school leaders say money from PTA fundraising efforts will be needed to cover core costs rather than “nice to have” extras. In affluent areas where PTAs are able to raise huge sums, it could even be used to save jobs and help pay bills.
Continue reading...Businesses may struggle as consumers cut back spending amid high inflation and rising fuel costs, economists warn
The number of companies in England and Wales declared insolvent jumped by 43% in August, according to government data, which adds to concerns for the health of the UK economy.
There were 1,933 insolvencies in August, compared with 1,348 in the same month last year, the Insolvency Service said. It was 42% above the level in August 2019, before the Covid-19 pandemic hit.
Continue reading...Critics question chancellor’s idea of abolishing rules imposed after 2008 financial crash during cost of living crisis
The UK chancellor, Kwasi Kwarteng, is reportedly planning to scrap caps on bankers’ bonuses in a controversially timed move to attract more talent to the City of London.
A source close to Kwarteng confirmed the chancellor was considering lifting the cap but emphasised that no decision had been taken.
Continue reading...Outlook ‘uniquely uncertain’, says Partnership as it announces cost of living support for staff
The John Lewis Partnership has warned its annual staff bonus is at risk this year after it slumped to a first half loss of £99m and said the outlook in the run-up to Christmas was “uniquely uncertain”.
The group, which is staff-owned and includes the Waitrose supermarket chain, blamed soaring inflation for the loss in the 26 weeks to 30 July, which compared with a £29m loss before tax in the same period last year.
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