Labour accuses Hunt of being ‘out of touch’ on economy as polls open in Kingswood and Wellingborough – UK politics live | Politics

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  • February 15, 2024
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Labour: Hunt’s ‘insulting’ comments on economy show he is ‘out of touch’

Labour have suggested Chancellor Jeremy Hunt’s comments on the UK entering technical recession meant he and his party were “out of touch” with voters, and demanded a general election.

In comments after figures showed the UK economy was in recession, Hunt told broadcasters:

We always expected growth to be weaker while we prioritised tackling inflation, that means higher interest rates, and that is the right thing to do because you can’t have long-term healthy growth with high inflation.

But also for families when there is a cost-of-living crisis, when the cost of their weekly shop is going up, their energy bills are much higher, it is the right thing to do.

The underlying picture here is an economy that is more resilient than most people predicted, inflation is coming down, real wages have been going up now for six months.

If we stick to our guns, independent forecasters say that by the early summer we could start to see interest rates falling and that will be a very important relief for families with mortgages.

Hunt also said that “there are signs the British economy is turning a corner”, claiming:

Forecasters agree that growth will strengthen over the next few years, wages are rising faster than prices, mortgage rates are down and unemployment remains low. Although times are still tough for many families, we must stick to the plan – cutting taxes on work and business to build a stronger economy.

In his January 2023 pledges, prime minister Rishi Sunak promised “We will grow the economy, creating better-paid jobs and opportunity right across the country.”

A spokesperson for the Labour Party said: “Jeremy Hunt’s comments are as insulting as they are out of touch. The Conservatives’ failure to take any responsibility for Rishi’s recession show why we need an election.”

Key events

Yesterday former Labour leader Neil Kinnock endorsed Vaughan Gething to be the next Labour leader in Wales and first minister there. This morning Gething has shared a video of Kinnock’s endorsement.

Neil Kinnock is a giant of our movement.

Few people know so acutely what it takes to lead our party. I’m honoured to have his support.

When your ballot arrives from tomorrow, you have the power to help us build our future, together – for Wales, for Labour, for you. pic.twitter.com/1JdKwTDiPL

— Vaughan Gething (@vaughangething) February 15, 2024

Rachel Reeves has said that Labour’s support for tax cuts in the forthcoming March budget is dependent on the state of the nation’s finances at the time.

She told the media at her press conference:

That [support] depends on the state of the public finances and the projections set out by the OBR.

I objected to the increases in National Insurance when Rishi Sunak tried to increase them as chancellor because I thought it was wrong to increase taxes on working people in the middle of a cost of living crisis.

We supported the cuts to National Insurance when the Government finally got around to doing that, but I will never make any commitments either around spending increases or tax cuts without being able to say where the money is going to come from.

A little bit before Rachel Reeves was giving her speech on Labour’s plan for economic growth – this does feel very much like I am doing a parallel business live blog today – Jeremy Hunt was continuing his media round. On GB News he said the UK will have “the most competitive business taxes in the world”.

PA Media quote him saying:

I have not changed my position, our future as a country is to have the most competitive business taxes in the world, and that’s why in the autumn statement we cut corporation tax.”

I’ve never hidden from the fact that I had to increase taxes in my first autumn statement as Chancellor but nor have I ever said anything other than I think the most successful economies in the long run have lighter taxes, and as soon as the chance arose I would start to bring down the tax burden.

Independent forecasters say if we stick to that plan we’ll get inflation right down, interest rates could start to fall in a matter of months and that is the thing that matters most to families.

When they’re making a choice for the future of this country they want to know that they have people who will do the right thing, even if it’s not always the easy thing.

Asked about murmurs this morning from Jeremy Hunt that he was planning to tax cuts which might entail spending cuts on public services, Rachel Reeves says:

I do recognise that our public services are under huge pressure, unlike perhaps the Conservatives do, which is why I’ve said there does need to be an immediate injection of cash into our public services.

Which is why we would end the tax break where non-dom’s don’t pay taxes in the country in which they live, why we would end the tax break where private schools are not paying VAT or business rates, why we would change the rules about how the bonuses of private equity managers are taxed.

And we would use all of that money to fund an immediate of injection of cash into the public services, which are on their knees today. But then we’ve got to have a serious plan to grow the economy

Rachel Reeves says she “rejects entirely” accusations that there is little difference between Labour and Conservative plans on the economy for growth.

She said:

We’ve got a comprehensive plan for growth that has been drawn up with business. Let me just give you a few examples of that. Labour would reform the planning system to get Britain building again. There are at the moment, something like £200bn worth of projects waiting for connections to our grid system, but they are being held back by restrictions in the planning rules.

At the moment ittakes something like two years to build a wind farm, but it can take 13 years to get a connection to the grid because of bureaucracies in the system. We need to turn that around so that we get Britain building again and ensure that that crucial national infrastructure is coming online and we are determined to do that.

She went on to say:

We’ve set out reforms to the apprenticeship levy to turn it into a growth and skills levy, to help businesses to train up the next generation of workers and a modern industrial strategy with strategies already published for life sciences, for financial services, and for automotives, and more of those industrial strategies that have been worked on in conjunction with businesses.

Reeves: Hunt is being ‘dangerous’ and ‘misguided’ in giving a running commentary ahead of March budget

Rachel Reeves has criticised the chancellor Jeremy Hunt for giving a “running commentary” ahead of his March budget, branding his words “dangerous” and “misguided”.

She told the media during a Q&A session after giving a speech on Labour’s economic plans:

I do find it extraordinary that the actual Chancellor of the Exchequer is providing a running commentary on his own budget. Now, I worked at the Bank of England for many years, and I’ve been in politics for a long time. Now, I have never seen anything like it with the chancellor giving a running commentary. It is dangerous and it is very misguided, and I would urge him to stop this because it creates the uncertainty that is that we really don’t need.

Rachel Reeves, shadow chancellor, has said in response to a question about Labour’s plan:

Unlike this prime minister and this chancellor, Kier Starmer and I have got a real plan. A concrete plan for growth. And don’t just take our word for it, take the words of the businesses who have helped us devise these plans, whether it is reform of planning, or of pensions, the national wealth fund and GB energy.

This is all about getting the growth in our economy that we need. The Conservatives have no plan. We have a serious plan that we’ve worked on with business and the green prosperity plan is still there.

A national wealth fund to invest in carbon capture and storage, in green hydrogen, in our steel industry, as well as GB energy with an endowment to invest in nuclear, tidal and floating offshore wind, there’s a plan.

This government don’t have that. A Labour government will have to grow our economy and to secure that growth and investment that we need to turn things round after 14 years of conservative failure.

Rachel Reeves has been giving a speech about Labour’s plan for growth. She has asked whether anything in the country works better than it did 14 years ago. She finished the speech by saying:

Do our hospitals, our schools, our police work better than they did 14 years ago? Frankly, does anything in our country work better than when the Conservatives came to power 14 years ago?

He is further evidence today in black and white. Britain has fallen into recession.

It is time to turn the page on 14 years of Conservative failure. It is time to demand better than managed decline. It is time to start a new chapter for Britain.

She is taking questions now, the first one is from Faisal Islam of the BBC who asked about whether she recognised that it was “a relatively mild recession”, and then about Labour ditching its £28bn green development policy.

Labour have just put out an attack video clip on the prime minister over this morning’s economic news, labelling it “Rishi’s recession”. It features Rishi Sunak yesterday saying “I really believe that the economy has turned a corner” followed by a montage of talking head clips from this morning’s news show analysing the news that the country has fallen into recession.

They aren’t the only people trying to pin the recession personally on the prime minister. Earlier this morning Liberal Democrat leader Ed Davey said:

Rishi’s recession has savaged the British economy by decimating growth and leaving families to cope with spiralling prices. Years of Conservative chaos and a revolving door of Conservative chancellors has culminated in economic turmoil.

It’s hardworking Brits forced to pick up the tab for this mess, through high food prices, tax hikes and skyrocketing mortgage bills. This year the country will have the chance to kick out this incompetent and out of touch Government once and for all.

The Liberal Democrats were in coalition with the Conservatives from 2010 to 2015. The Conservatives have had five different Chancellors since July 2019.

Updated at 

Data from the department for energy security and net zero shows that 13% of households in England were in fuel poverty last year. While largely unchanged from 13.1% in 2022, the figure amounts to 3.17 million households.

The figures also reveal that well over a third (36.4%) of English households, some 8.91 million, were forced to spend more than 10% of their income, after housing costs, on energy bills, up from 6.66 million in 2022.

PA Media reports that Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said:

The numbers of households paying more than 10% of their income on energy is truly shocking, far exceeding previous estimates. The reality is that household energy debt is now at record levels, millions of people are living in cold, damp homes and children are suffering in mouldy conditions.

With the caveat that the Guardian has not independently verified the timing and location of this photograph, we appear to have our first dog at a polling station social media post from Wellingborough. This is, apparently, Monty.



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