Category Archives: Budget 2025

Starmer allies say ousting PM would be ‘reckless’ as fears grow over leadership challenge

Posted on by

Exclusive: No 10 said to be in ‘full bunker mode’ over fears of challenge after this month’s budget or May local elections

Downing Street has launched an extraordinary operation to protect Keir Starmer amid fears among the prime minister’s closest allies that he is vulnerable to a leadership challenge in the wake of the budget.

Starmer’s most senior political aides warned that any attempt to oust the prime minister over tanking poll ratings would be a “reckless” and “dangerous” move that could destabilise the markets, international relationships and the Labour party.

Continue reading...

Nandy rules out taking action to remove Robbie Gibb from BBC board – as it happened

Posted on by

Culture secretary also condemns MPs who dismiss BBC as ‘institutionally biased’ in swipe at Badenoch and Farage. This live blog is closed

Here is a round-up of what various lawyers and commentators have been saying about Donald Trump’s legal case against the BBC.

Joshua Rozenberg, the legal commentator and a former BBC journalist, has said in a post on his A Lawyer Writes Substack that the corporation should settle. He explains:

Given what Brito is claiming, the lawyer is unlikely to be impressed with the BBC’s assertion that “the purpose of editing the clip was to convey the message of the speech made by President Trump so that Panorama’s audience could better understand how it had been received by President Trump’s supporters and what was happening on the ground at that time”.

So the BBC would be well advised to draft a retraction and apology in terms that the president’s lawyer finds acceptable. Brito is also calling for this to be broadcast as prominently as the original programme. And the corporation will have to pay compensation.

George Peretz KC, chair of the Society of Labour Lawyers, says on Bluesky, commenting on Rozenberg’s blog, that the BBC might be better off with a more robust approach.

So at the moment, despite @joshuarozenberg.bsky.social’s piece, I wonder whether a better BBC response would be the Arkell v Pressdram one. proftomcrick.com/2014/04/29/a...

(At least to the extent he’s seeking more than a formal apology limited to the obvious mistake and a very modest offer of compensation.)

There is, after all, the risk of a dangerous precedent here. The BBC will often offend foreign leaders – some worse than Trump. Sometimes it will make factual mistakes in reporting on them. Yield to Trump now, and who next?

Mark Stephens, a media lawyer, told BBC Breakfast that a court case could reflect badly on Trump. He said:

Every damning quote that he’s ever uttered is going to be played back to him and picked over – not great PR.

Trump risks turning what’s currently a PR skirmish with the BBC very much on the back foot into a global headline that the court finds Trump’s words were incendiary …

George Freeman, executive director of the Media Law Resource Center in New York and a former lawyer for the New York Times, told the BBC that Trump “has a long record of unsuccessful libel suits – and an even longer record of letters like the one you received that don’t end up as lawsuits at all”.

Christopher Steele, the former MI6 officer who is trying to recover costs from Trump after the president sued him unsuccessfully in the UK, says Trump’s latest threat is preposterous.

Donald Trump’s threat to sue the BBC in London is preposterous. He remains in breach of English High Court orders in a case he brought and lost against Orbis 18 months ago. So any further abuse of the UK courts by him for such legal tourism and intimidation should be prohibited.

Robert Peston, ITV’s political editor, says the BBC has been told Trump does not have a case.

The legal advice to the BBC I am told is that President Trump was not meaningfully damaged by Panorama’s manipulation of his 6 January speech, and that therefore there is no legal necessity to pay him compensation. The BBC board is therefore likely to resist and fight his demand to be “appropriately compensated” out of court, and will risk him carrying through on his threat to seek $1bn in damages by going to court.

These times are difficult for the BBC but we will get through it. We will get through it and we will thrive. This narrative will not just be given by our enemies. It’s our narrative. We own things.

I see the free press under pressure. I see the weaponisation. I think we have to fight for our journalism.

We have made some mistakes that have cost us but we need to fight for that.

Continue reading...

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

Posted on by

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”.

Continue reading...

Second accidental release of prisoner ‘utterly unacceptable’, No 10 says, as Lammy blames system left by Tories – UK politics live

Posted on by

Lammy, standing in for Keir Starmer, avoided answering questions on the mistaken release during PMQs

David Lammy starts by saying the PM is in Brazil.

He says the thoughts of all MPs are still with the victims of the appalling attacks in Huntingdon and Peterborough, where, he says, he was at school for seven years.

Continue reading...

Reeves to lay groundwork for tax rises in ‘candid’ speech about budget

Posted on by

Chancellor to promise ‘fairness and opportunity’ but will not repeat manifesto pledge on tax, after PM’s hint at breach

Rachel Reeves will lay the groundwork for a tax-raising budget that could break Labour’s election promise on income tax, in a major speech in which she will be “candid” about the tough choices ahead.

The chancellor will give the speech as the markets open on Tuesday, when she will promise to make fair choices at this month’s budget but decline to repeat her manifesto pledge of no rise in income tax, VAT or national insurance.

Continue reading...

Three more Reform UK councillors expelled from party over ‘dishonest’ behaviour after leaked video meeting – UK politics live

Posted on by

Footage of online meeting showed Kent county council leader remonstrating with councillors

Earlier I pointed out that, in his Today interview this morning, the Reform MP Danny Kruger was strangely reticent when it came to explaining why the size of the civil service has grown so much in recent years. (See 11.09am.)

In his speech this morning Kruger was a bit more forthcoming. He said:

Let me be very clear. The growth of the civil service will be reversed. After falling in the wake of the global financial crisis, the headcount of the civil service rose again after Brexit – shame on the Tories – and it passed 500,000 in 2023.

Nothing works properly. It’s impossible to build anything. The streets are dirty and unsafe. Taxes and prices are far too high. Immigration is changing our country for the worse and far too fast. And we’re becoming poor, sick and unhappy. There is a malaise over Britain.

These problems are complex. But the effective cause of them is simple. Since 1997 we have had governments that, firstly don’t share the attitude of the country they govern, and secondly, they aren’t properly in charge of the state.

This announcement only reinforces climate policy as a dividing line in our politics, rather than being the unifying issue it once was.

And, for the Conservative party, it risks chasing votes from Reform at the expense of the wider electorate.

By undermining the judiciary we further erode public trust in the institutions of our democracy and therefore in democracy itself.

So I say to those seeking to villainise a judiciary that cannot easily answer back, who wilfully discredit our legal system for their own expediency – it’s time to show responsible leadership.

This is not just about short-term decisions to make it easier to deal with public concerns about immigration.

Our support for human rights has its origin in Magna Carta. How we deal with issues of human rights is fundamental to our ability to deal with autocracies and dictatorships.

In the world of power where the club of strong men want to carve the world up in their own interests, populism and polarisation are enablers.

And those politicians in the Western world who use populism and polarisation for their own short-term political ends risk handing a victory to our enemies.

Continue reading...

Cutting cash Isa limit will not boost stock market, MPs warn Rachel Reeves

Posted on by

Treasury committee says move in November budget could push up mortgage rates instead

Cutting the annual cash Isa allowance will not encourage many savers to switch to shares but could push up mortgage costs, MPs have warned the chancellor.

Adults can put up to £20,000 a year in a tax-free Isa and spread the money between cash and stock market investments as they choose. In the 2023-24 tax year, 66% of all contributions went into cash savings.

Continue reading...

NatWest boss warns against higher bank taxes as lender’s profits rise 30%

Posted on by

CEO says fiscal discipline should be balanced with ‘policies that create stability, consistency and support growth’

NatWest Group’s chief executive has warned the government against increasing taxes on banks in the autumn budget as the high street lender reported a 30% jump in profits.

Paul Thwaite said he understood the “difficult choices” that the chancellor, Rachel Reeves, had to make in order to help close a potential £30bn shortfall in the public finances but argued she needed to “balance fiscal discipline” with “policies that create stability, consistency and support growth”.

Continue reading...

UK inflation unexpectedly remains at 3.8% for third month in a row

Posted on by

Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March

UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.

The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.

Continue reading...

Rachel Reeves says higher taxes on wealthy ‘part of the story’ for November budget

Posted on by

Exclusive: Chancellor hints at rises and calls out past ‘scaremongering’ over VAT on private schools and changes to non-doms

Rachel Reeves has said higher taxes on the UK’s wealthy will form part of next month’s budget, as she shrugged off the “scaremongering” and “bleating” of her critics, and stressed her determination to repair the public finances.

Speaking in Washington, where she is attending the annual meetings of the International Monetary Fund (IMF), the chancellor told the Guardian there “won’t be a return to austerity” and hinted at tax increases for the most well-off.

Continue reading...

Starmer only read China spy witness statements this morning, No 10 says, as Cleverly accuses PM of misquoting him – as it happened

Posted on by

This blog is now closed, you can read more on this story here

Lindsay Hoyle starts by telling MPs that speakers from the parliaments in Fiji and Ukraine are in the gallery. And he says it is four years to the day since David Amess was murdered.

It’s PMQs. Here is the list of MPs down to ask a question.

Continue reading...

Andy Burnham calls for UK to rejoin EU within his lifetime and rejects claim he is fiscally irresponsible – as it happened

Posted on by

Mayor of Greater Manchester says he would have to be ‘wrenched’ out of city and says he wants UK to rejoin EU. This live blog is closed

In her Today interview Rachel Reeves was asked about a FT report saying she will urge business leaders to highlight the risks of a Reform UK government in her speech later.

The FT say Reeves will tell the Labour conference.

Who is standing up for Britain’s stability. A Labour government that is resolute in cutting interest rates and borrowing or a Reform party that cheered on Liz Truss’ mini-budget?

Who is standing up for Britain’s businesses? A Labour government that is forging a closer relationship with our nearest trading partners or a Reform party that talks Britain down and is hungry to cut us off from the world?

Continue reading...

Rachel Reeves due to appear at gambling lobbyist’s event amid tax review

Posted on by

Chancellor’s invitation criticised as ‘strange timing’ with Treasury looking at whether to raise duties on £12bn sector

The chancellor, Rachel Reeves, has been urged to cancel plans to be the guest of honour at an event hosted by the chief lobbyist of the gambling industry while the Treasury is in the midst of a review of taxes on the £12bn sector.

Reeves is slated to appear at a “private reception” for business leaders, organised by the corporate communications company Brunswick, at the forthcoming Labour party conference in Liverpool.

Continue reading...

UK bank shares tumble after call for windfall tax on lenders in budget

Posted on by

Investor jitters follow report by IPPR, with stock market value of sector cut by almost £8bn in morning trading

UK bank shares tumbled on Friday, cutting the stock market value of the sector by almost £8bn in morning trading, as fresh calls for a windfall tax on large lenders in the autumn budget spooked investors.

Calls for a tax grab, in a paper written by the Institute for Public Policy Research (IPPR) thinktank, took a toll on some of the UK’s biggest high street banks. NatWest Group suffered the biggest drop on Friday morning, registering a decline of as much as 5% in its share price, while Lloyds Banking Group and Barclays followed close behind, falling 4.5% and 3.6% respectively. HSBC dropped more than 1%.

Continue reading...

Pre-budget lift for Rachel Reeves as UK business confidence rises

Posted on by

Despite concerns about economy, poll shows optimism about trading prospects at highest level since 2014

Confidence among UK businesses has grown despite anxiety about the state of the economy, in a rare slice of positive news for the chancellor, Rachel Reeves, in the run-up to her autumn budget.

An August poll of UK companies by Lloyds Bank showed that improved sentiment among manufacturers and retailers helped push overall optimism within UK plc up by two percentage points, with 54% of companies now feeling confident in the current environment.

Continue reading...