Unite criticises Starmer’s ‘bleak vision of Britain’ as Sunak says warning of ‘painful’ budget lays ground for tax rises – live | Politics
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- August 27, 2024
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Unite chief says ‘bleak vision of Britain is not what we need now’ after Starmer’s speech
Sharon Graham, the general secretary of the Unite union, has criticised the “bleak vision” Keir Starmer delivered in his first major speech as prime minister, saying it’s “time to see the change that Labour promised”.
Graham, an outspoken critic of some of Labour policies, said:
We don’t need more excuses about fiscal responsibility or talk of wealth creation. We should not pit pensioners against workers, that is not a choice that should be on the table.
We now need Labour to have the courage to make the right choices. To be Labour and fight for change for workers and our communities.
She acknowledged that Britain “is in crisis” but said there is money to rebuild industry, infrastructure and public services if it is found in the right places. “If we taxed 1% on the wealthiest 1%, the so-called black hole would be gone,” she wrote in a tweet thread on X.
Starmer emphasised trying to stimulate growth in the economy (instead of just relying on tax rises or spending cuts), but Graham said Britain “can’t wait for growth” and the country’s industries “can’t wait for investment”.
Unite is calling on Labour to bring in an emergency 1% wealth tax on the assets of the super-rich to pay for 10% pay rises for public sector workers and fill more than 100,000 NHS vacancies.
The demand from Unite, Britain’s second biggest trade union, is in one of several motions to the Trades Union Congress, which meets in Brighton next month, that will expose tensions between the government and parts of the union movement.
Key events
Liz Truss considered scrapping all NHS cancer treatment after disastrous mini-budget, book claims
Former British prime minister Liz Truss considered scrapping all cancer treatment on the NHS in an attempt to repair the damage caused by her economic policies, according to claims contained within Sir Anthony Seldon’s book, Truss at 10: How Not to Be a rime Minister. Seldon is arguably Britain’s leading contemporary political historian. The Independent has this report on the extraordinary claim (we have not been able to independently verify it yet).
Sir Anthony’s book, Truss at 10: How Not to Be a Prime Minister, is deeply critical of Ms Truss, who was forced to resign in 2022 after she triggered an economic crisis by proposing the introduction of £45bn of unfunded tax cuts. She spent only 49 days in office.
The author claims that, in the immediate aftermath of the mini-Budget, Ms Truss and her chancellor, Kwasi Kwarteng, launched a desperate attempt to find spending cuts in an effort to restore stock-market confidence in their strategy.
Sir Anthony says a group of Ms Truss’s Tory aides met to discuss the issue. One of her senior advisers, Alex Boyd “was told that Truss and Kwarteng were thinking they could still sort out the black hole with severe cuts”: “We’ve been told that they’re looking at stopping cancer treatment on the NHS.”
Mr Boyd’s response was to ask “Is she being serious?” writes Sir Anthony, while other aides said she had “lost the plot”.
“She’s shouting at everyone that ‘We’ve got to find the money.’ When we tell her it can’t be done, she shouts back: ‘It’s not true. The money is there. You go and find it,’” they told the author.
Speaking to The Independent, Mr Kwarteng said: “I wasn’t involved in any conversations about restricting healthcare, but that doesn’t mean the prime minister and her team didn’t discuss this.”
The crown prince of Bahrain, Salman bin Hamad Al Khalifa, and the UK’s prime minister, Keir Starmer, have greeted each other in front of No10 before stepping inside.
“Obviously, there’s a long, very important history between our countries which we’re very proud of and very keen to build on,” Starmer said.
The crown prince replied:
Thank you for taking the time to see myself and my delegation. I would like to congratulate you on your speech today, laying out a very ambitious roadmap for the future.
The Sunni Muslim-ruled state of Bahrain is a close ally of the UK.
Since pro-democracy protests against the ruling Al Khalifa family swept Bahrain in 2011, many people linked with demonstrations have been incarcerated. The government has launched sweeping crackdowns on activists, press freedom, civil society, opposition political groups, and has sought to silence online criticism.
The director of the Institute for Fiscal Studies (IFS), Paul Johnson, has said the government has given itself “deep problems” by ruling out so many possible tax rises in the upcoming autumn budget (Labour has repeatedly ruled out raising VAT, national insurance and income tax on “working people”).
Johnson said direct taxes on people with average wages are “the lowest they’ve been in fifty years”(you can read more on the IFS’ analysis that average earners are facing lower levels of direct taxation here).
“Trying to significantly increase taxes without impacting that group of people will be very complex and potentially have some negative economic consequences,” he said, adding that Rachel Reeves, the chancellor, is left with “difficult and complex choices” ahead of her 30 October budget.
As my colleague Kiran Stacey reports in this story, Reeves has been looking at a number of ways to raise money at her first major fiscal event, including raising capital gains tax and inheritance tax. She is also thought to be planning to stick to the tight departmental budget constraints forecast under the last government’s spending plans, and changing the way debt is measured to exclude the Bank of England.
More than half a million applications for help have been made as part of a Scottish scheme that aims to help less well-off families with the costs of raising their children, PA Media reports.
Figures published by Social Security Scotland showed since the Best Start grant and Best Start food schemes were set up, a total of £164.4m has been paid out. That comes after a total of 503,630 applications for help were received.
The figures were published ahead of the fifth anniversary of the introduction of two of the four payments included in the Best Start package of grants.
The Best Start grant school age payment provides families on certain benefits with a one-off payment of £314.45 being made to help with the costs of a child starting primary school. Since being established in 2019, it has provided £33.5m to more than 100,000 parents and carers.
Meanwhile, the Best Start foods payment is worth up £42.40 every four weeks to eligible families, with the money going to help them with the costs of buying healthy food. Overall, the scheme has given 86,000 parents and carers across Scotland assistance worth £57.1m.
To mark the fifth anniversary of these payments, social justice secretary Shirley-Anne Somerville urged Scots to check and see if they could be eligible for help.
She said: “Eradicating child poverty is the most important priority for our government and we are committed to making sure every child in Scotland has the best start in life.
“We have built a different social security system, one grounded in dignity, fairness and respect. Part of this is making it as straightforward as possible for people to access the financial support that people are entitled to.”
PA Media is reporting that Crown Prince of Bahrain Salman bin Hamad Al Khalifa has arrived in Downing Street.
Three Range Rovers are stationed outside Number 10 while the bilateral meeting takes place.
The Crown Prince and prime minister Keir Starmer are set to discuss heightened tensions and conflict in the Middle East, and trade and investment.
The End Fuel Poverty Coalition warns of potential ‘public health emergency’ this winter
As we reported in an earlier post, Rachel Reeves, the chancellor, is set to extend the household support fund, which is due to end next month and helps tens of thousands of households at risk of destitution with cash, food parcels, fuel vouchers and clothing.
The End Fuel Poverty Coalition said this is the “least” Labour needs to announce. The campaign group says the Treasury also needs to expand the warm home discounts, restore winter fuel payments and “evolve” standing charges, the daily fees that are applied whether you use any electricity or not.
Reacting to Starmer’s speech, Simon Francis, coordinator of the End Fuel Poverty Coalition, said:
The winter fuel payment axe is not about rot in the system, it is about basic fairness for older people facing soaring energy bills.
In real terms, the changes this winter mean that some older people will face the highest energy bills on record.
This has the potential to create a public health emergency which will actually create more pressure on the under-pressure NHS which the prime minister says he wants to fix.
The impact of living in cold damp homes is particularly harsh on those older people with a disability, a long term health condition or with poor mental health. It results in people turning to an NHS and, in some cases, can result in additional winter deaths.
Ending energy debt, extending the Household Support Fund, expanding Warm Home Discounts and evolving standing charges are all now needed urgently to help mitigate the impact of high bills and the axe to the Winter Fuel Payment.
But as well as support this winter, the public need to see a clear timetable for when the very real benefits of cheaper renewable energy and the Warm Homes Plan will kick in.
If the prime minister needs to find some ‘broad shoulders’ to pay for this support, let’s not forget that every month we hear about more massive profits for firms in the wider energy industry.
Sunak: Starmer’s speech is clearest indication of Labour’s plan to raise taxes
Rishi Sunak, the leader of the opposition, has responded to Keir Starmer’s speech this morning from Downing Street’s rose garden.
In a post on X, the former prime minister wrote:
Keir Starmer’s speech today was the clearest indication of what Labour has been planning to do all along – raise your taxes.
During the general election, Sunak repeatedly said during ITV’s head-to-head debate with Starmer that “independent Treasury officials” had costed Labour’s policies “and they amount to a £2,000 tax rise for everyone”. Starmer said this claim was a lie.
Amid dire polling numbers, the Conservatives said they would rule out changes to council tax bands and cutting discounts, would maintain protections on homes from capital gains tax, and would not increase stamp duty. Labour said it would match all those pledges. Starmer insisted today that he would not raise tax on “working people” (while not clarifying what this actually means), namely national insurance, VAT and income tax.
During his speech this morning, Starmer, who won July’s general election in a landslide, warned “things are worse than we ever imagined” because of a £22 billion “black hole” in the public finances, claiming to have found out last week that the Tories had borrowed almost £5 billion more than the Office for Budget Responsibility expected.
SNP will lose Scottish election without complete rethink, say senior party figures
Libby Brooks
Libby Brooks is the Guardian’s Scotland correspondent, based in Glasgow
The Scottish National party will lose the next Holyrood election without a fundamental rethink of purpose and policy while carrying out long-delayed internal reforms, senior figures have warned.
However, some have expressed doubt that the party’s leader, John Swinney, is strong enough to direct the scale of change required.
Before the SNP’s annual conference at the end of August, the Guardian spoke to more than 20 influential voices within the party, including current and former Scottish government ministers, senior activists and those ousted in July’s catastrophic general election defeat – in which the SNP was reduced from 46 to nine MPs as Labour swept the board across the country.
Many predict the SNP, which has enjoyed stratospheric electoral success over the past decade, faces “a doing” at the Scottish parliament elections in 2026 as Scottish Labour capitalises on the UK party’s Westminster win.
“The way things are now, we run the real risk of not winning in 2026,” said one senior MSP. “We have to change course and John needs to be decisive.”
Stewart McDonald, a former MP for Glasgow South, who had cleared his Westminster desk before 4 July because he was so certain of defeat, said: “What does an SNP that has learned its lesson look and sound like? I don’t think it’s possible to overstate the scale of the challenge we are facing as a party.”
Almost all argued that countering the Labour message of change to voters who were desperate to get the Tories out of Downing Street was “incredibly difficult if not impossible”, as one former MP described it.
Starmer’s speech shows he is ‘taking the British public for fools’, Kemi Badenoch says
Shadow housing secretary, Kemi Badenoch, who is the current frontrunner to be the next leader of the Tory party, said Starmer’s speech shows he is “taking the British public for fools”.
In one of the first reactions from a senior Conservative MP, Badenoch was quoted by the BBC as saying: “Keir Starmer is taking the British public for fools, but his dishonest analysis won’t wash.”
“He campaigned on promises he couldn’t deliver and now he is being found out,” she adds.
Badenoch has long been considered the frontrunner in the Tory leadership contest (as per this recent YouGov poll). She has said the Conservatives “will speak the truth again” and return to its roots if she wins it. The MP for north west Essex has argued for leaving the European convention on human rights, a major dividing line within her party.
The former business secretary previously ran for the Tory leadership after the resignation of Boris Johnson and came fourth.
Rishi Sunak, the former prime minister and current leader of the opposition, will hand over to his successor on 2 November after an extended Conservative leadership contest.
The public didn’t vote for Labour to endure ‘more economic pain’, Green party co-leader says
The Green party co-leader, Carla Denyer, has reacted to Starmer’s speech. She said that people didn’t vote for Labour for more “economic pain” and said that the party could improve people’s lives if their economic agenda was bolder. She singled out Labour’s “refusal to tax the super-rich” as an example of a business as usual approach to politics.
Denyer, the newly elected MP for Bristol Central, has said she believes the four Green MPs elected to the Commons can put pressure on Starmer from the left. She wants Labour to be more radical on the climate, the housing crisis and the funding of public services.
In reaction to Starmer’s Downing Street speech, she said:
Enduring more economic pain and hardship isn’t what people voted for. They were told they were voting for change. Not voting for things to get worse before they get better. Labour needs to be honest about the fact that they could choose to make things better for everyone if they were bolder and braver.
What is being framed as tough choices is actually about political choices. People don’t need a constant reminder that the Tories broke Britain. They need a new approach, not misguided fiscal rules that are set to make things worse.
We must generate the funds needed for investment by shifting the burden away from the poorest onto the wealthiest. Labour’s refusal to tax the super-rich shows that business as usual is very much still in business.
Keir Starmer says the violent riots earlier this month exposed a deeply unhealthy society. But the health of a society can’t be improved if it is forced to swallow the same failed medicine. The government can choose to provide the investment our communities are crying out for. This would help create hope and unleash the goodness of people to improve their communities.
The Green Party manifesto proposed to raise up to £151bn a year in new taxes by 2029, including a new tax on the wealthy, which they claimed would raise about £15bn. Some analysts said many people this would affect would have likely left the UK to avoid paying the extra cash. The party also said there would be a tax rise for earners on more than £50,270.
Main takeaways from Starmer’s Downing Street speech
Here are some of the key takeaways from Keir Starmer’s first major speech as prime minister:
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Starmer warned that the government’s forthcoming Budget will be “painful” as he asked the country to “accept short-term pain for long-term good”.
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Starmer said those with the “broadest shoulders” will carry the heaviest burden. He stressed that taxes on “working people” – namely national insurance, VAT and income tax – will not be increased in the 30 October budget, but stressed that “things will get worse before they get better”.
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Starmer said removing winter fuel payments for millions of pensioners in England and Wales was difficult. There will be more “difficult” decisions to come, he said, pointing to the government inheriting a £22bn black hole in the public finances from the Conservatives.
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Starmer claimed to have found out last week that the Tories had borrowed almost £5 billion more than the Office for Budget Responsibility expected.
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Starmer said his government inherited a “societal black hole” made worse by recent rioting, which he said exposed the state of a “deeply unhealthy society”.
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The prime minister said his government has done more in seven weeks than the Conservative government did in seven years.
Ed Davey, the leader of the Liberal Democrats, has reacted to the prime minister’s speech. He said “only the out-of-touch Conservative Party will deny the scale of the challenges” facing the government, striking a broadly supportive tone of Starmer.
Davey – whose party won 72 seats in the general election (12.2% of the vote) – said:
From the millions stuck on NHS waiting lists to the millions struggling to make ends meet, the last Conservative government has left a toxic legacy. We need bold and ambitious action from the government to fix this mess.
Liberal Democrats will work tirelessly to put our positive ideas forward and hold the new government to account if they fail to rise to the challenges facing the country. Above all, people want urgent, ambitious action to fix the health and care crisis.
Only by getting people off NHS waiting lists can we get the economy growing strongly again and ensure more funding for our public services in the long-term.
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