Parliament to be recalled next week over Afghanistan crisis – as PM calls another emergency Cobra meeting

Published

4 years ago

August 15, 2021

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Parliament will be recalled next week over the situation in Afghanistan, as the prime minister called a second emergency Cobra meeting later this afternoon to discuss the crisis.

MPs will return to Westminster on Wednesday to debate the government’s response to the crisis, with Taliban fighters having entered the capital Kabul after a lightning advance through the country.

Live updates on Afghanistan as government promises peaceful transition of power

The session will begin at 9.30am and will end at 2.30pm, while peers in the Lords will sit from 11am.

According to Sky’s deputy political editor Sam Coates, Conservative MPs have been told that there will be no virtual participation and while they are encouraged to return to Westminster, there will not be a three-line whip requiring them to do so.

MPs broke up for their summer recess on 22 July and had not been due to return until 6 September.

Calls for MPs to return to Westminster have been growing in recent days as the Taliban continues to make gains amid the withdrawal of US, UK and NATO troops.

Labour leader Sir Keir Starmer was among those calling for such a move, saying earlier on Sunday: “The situation in Afghanistan is deeply shocking and seems to be worsening by the hour.

“The immediate priority now must be to get all British personnel and support staff safely out of Kabul.

“The government has been silent while Afghanistan collapses, which let’s be clear will have ramifications for us here in the UK.

Analysis by Nick Martin, political correspondent

MPs returning to parliament three weeks early – cutting short the summer recess – is a sign of a deepening crisis for the UK government.

There are still thought to be thousands of British nationals in the Afghan capital and the pace of the Taliban advance has put them in greater risk.

An unpredictable force with a lethal track record are closing in and time is running out to get them to safety.

Downing Street sources say parliament will be recalled next week and that means MPs will be able to debate the situation.

Expect the prime minister to make a statement to the house. We could hear from the Defence Secretary Ben Wallace and the Foreign Secretary Dominic Raab.

It’s likely that the leader of the opposition Sir Keir Starmer will press the government for more details on Britain’s involvement.

He said on Sunday: “We need parliament recalled so the government can update MPs on how it plans to work with allies to avoid a humanitarian crisis and a return to the days of Afghanistan being a base for extremists whose purpose will be to threaten our interests, values and national security.”

The Lib Dem leader Ed Davey added: “The prime minister should call in all political parties and ensure that we respond with unity and purpose.”

Parliament went into recess on 22 July and wasn’t expected to return until September. It would be unfathomable to allow recess to continue given the escalation in Afghanistan.

The prime minister chaired a meeting of COBRA, the government’s emergency committee on Friday.

Now 600 troops are already on their way to the region.

Events are moving fast.

“We need parliament recalled so the government can update MPs on how it plans to work with allies to avoid a humanitarian crisis and a return to the days of Afghanistan being a base for extremists whose purpose will be to threaten our interests, values and national security.”

Reacting to news of the recall, Labour’s shadow foreign secretary Lisa Nandy told Sky News it was “extremely good news” but urged the government to act in the meantime to ensure Britons and those who have helped the UK in Afghanistan are transported out of the country.

“I suspect that this has taken so long because the government doesn’t have a clear strategy to deal with this,” she said.

“That’s what we need to hear from the prime minister this week. We need to hear that imminently.”

SNP Westminster leader Ian Blackford, another supporter of the recall, told Sky News: “I think many people will be asking what this has been for.

“There are questions that now need to be asked about the next steps. What do we do to try and give humanitarian support to those that need it.

“Many will have concerns about a potential breeding ground for terrorism and, I hate to say it, repeating some of the problems of the past.”

Sir Ed Davey, leader of the Liberal Democrats, also backed calls for a recall of parliament.

He has urged Boris Johnson to hold a “crisis meeting” with party leaders “given the tragedy unfolding before our eyes and the grave threat to national security this raises”.

“It is without doubt that we face a crucial point in history and, as a nation, we must act together before it is too late,” he said.

But Rory Stewart, a Conservative former international development secretary, said he found it “very difficult to understand, I’m afraid, how this will help at this stage”.

“The focus now needs to be on refugees, and humanitarian and development assistance for the fall-out from this tragedy,” he said.

The UK is currently evacuating British nationals and local translators – with 600 troops being sent to assist with this effort.

The Home Office said it is working to “protect British nationals and help former UK staff and other eligible people travel to the UK”.

“The Home Office has already resettled over 3,300 Afghan staff and their families who have worked for the UK,” it said in a statement.

“We will continue to fulfil our international obligations and moral commitments.”

A Foreign Office spokesperson said the UK had “reduced” its diplomatic presence in Afghanistan, “but our ambassador remains in Kabul and UK government staff continue to work to provide assistance to British nationals and to our Afghan staff”.

They added: “We are doing all we can to enable remaining British nationals, who want to leave Afghanistan, to do so.”

According to The Sunday Telegraph, Britain’s ambassador to Afghanistan Sir Laurie Bristow is going to be flown out of the country by tonight.

Conservative MP Tom Tugendhat, who is chair of the Foreign Affairs Committee, said it was “quite clear that the battle for Afghanistan is now lost”.

“It’s been an abject defeat and the United States and United Kingdom have been routed,” he told Sky News.

“This is pretty stunning, frankly.

“It was a decision we took to withdraw and to announce that we wouldn’t be willing to fight, so perhaps it’s hardly surprising.

“What we’re now seeing is what we fought 20 years to stop, which is a Taliban victory in Afghanistan.”

The prime minister said on Friday that Britain’s sacrifices in the country were not “in vain” and that the “vast bulk” of British citizens in Afghanistan will be brought back over the “next few days”.

Politics

What is a wealth tax, how would it work in the UK and where else has one?

Published

1 hour ago

July 9, 2025

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What is a wealth tax, how would it work in the UK and where else has one?

The idea of a wealth tax has raised its head – yet again – as the government attempts to balance its books.

Downing Street refused to rule out a wealth tax after former Labour leader Lord Kinnock told Sky News he thinks the government should introduce one.

Sir Keir Starmer’s spokesman said: “The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

While there has never been a wealth tax in the UK, the notion was raised under Rishi Sunak after the COVID years – and rejected – and both Harold Wilson’s and James Callaghan’s Labour governments in the 1970s seriously considered implementing one.

Sky News looks at what a wealth tax is, how it could work in the UK, and which countries already have one.

What is a wealth tax?

A wealth tax is aimed at reducing economic inequality to redistribute wealth and to raise revenue.

It is a direct levy on all, or most of, an individual’s, household’s or business’s total net wealth, rather than their income.

The tax typically includes the total market value of assets, including savings, investments, property and other forms of wealth – minus a person’s debts.

Unlike capital gains tax, which is paid when an asset is sold at a profit, a wealth tax is normally an annual charge based on the value of assets owned, even if they are not sold.

A one-off wealth tax, often used after major crises, could also be an option to raise a substantial amount of revenue in one go.

How could it work in the UK?

Advocates of a UK wealth tax, including Lord Kinnock, have proposed an annual 2% tax on wealth above £10m.

Wealth tax campaign group Tax Justice UK has calculated this would affect about 20,000 people – fewer than 0.04% of the population – and raise £24bn a year.

Because of how few people would pay it, Tax Justice says that would make it easy for HMRC to collect the tax.

The group proposes people self-declare asset values, backed up by a compliance team at HMRC who could have a register of assets.

Which countries have or have had a wealth tax?

In 1990, 12 OECD (Organisation for Economic Co-operation and Development) countries had a net wealth tax, but just four have one now: Colombia, Norway, Spain and Switzerland.

France and Italy levy wealth taxes on selected assets.

Colombia

Since 2023, residents in the South American country are subject to tax on their worldwide wealth, but can exclude the value of their household up to 509m pesos (£92,500).

The tax is progressive, ranging from a 0.5% rate to 1.5% for the most wealthy until next year, then 1% for the wealthiest from 2027.

Norway

There is a 0.525% municipal wealth tax for individuals with net wealth exceeding 1.7m kroner (about £125,000) or 3.52m kroner (£256,000) for spouses.

Norway also has a state wealth tax of 0.475% based on assets exceeding a net capital tax basis of 1.7m kroner (£125,000) or 3.52m kroner (£256,000) for spouses, and 0.575% for net wealth in excess of 20.7m kroner (£1.5m).

The maximum combined wealth tax rate is 1.1%.

The Norwegian Labour coalition government also increased dividend tax to 20% in 2023, and with the wealth tax, it prompted about 80 affluent business owners, with an estimated net worth of £40bn, to leave Norway.

Spain

Residents in Spain have to pay a progressive wealth tax on worldwide assets, with a €700,000 (£600,000) tax free allowance per person in most areas and homes up to €300,000 (£250,000) tax exempt.

The progressive rate goes from 0.2% for taxable income for assets of €167,129 (£144,000) up to 3.5% for taxable income of €10.6m (£9.146m) and above.

It has been reported that more than 12,000 multimillionaires have left Spain since the government introduced the higher levy at the end of 2022.

Switzerland

All of the country’s cantons (districts) have a net wealth tax based on a person’s taxable net worth – different to total net worth.

It takes into account the balance of an individual’s worldwide gross assets, including bank account balances, bonds, shares, life insurances, cars, boats, properties, paintings, jewellery – minus debts.

Switzerland also works on a progressive rate, ranging from 0.3% to 0.5%, with a relatively low starting point at which people are taxed on their wealth, such as 50,000 CHF (£46,200) in several cantons.

Politics

Jingye and Whitehall officials hold talks over British Steel future

Published

4 hours ago

July 9, 2025

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Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

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Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.

Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.

“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”