Devolved nations demand urgent meeting with chancellor as Tory top team doubles down on plan to cut spending
The devolved governments of the UK want an urgent meeting with Chancellor Kwasi Kwarteng to discuss immediate action to reverse the damaging effects of the mini-budget.
In a joint letter, the finance ministers of Wales, Scotland and Northern Ireland are warning that the government’s spending plans are a “huge gamble” that will mean another decade of austerity.
It comes as one of Liz Truss‘s closest political allies doubled down on the government’s economic policy, with warnings that major cuts in public spending are to come.
Levelling Up Secretary Simon Clarke, who is among the prime minister’s inner circle, told The Times that the British people need to expect significant cuts in public spending, because for too long the West has been living in a “fool’s paradise”.
Following on from Chancellor Kwasi Kwarteng‘s tax-cutting mini-budget, he said the government needs to make sure the “extremely large” state is in “full alignment with a lower tax economy”.
It has led to fears another period of austerity is just around the corner, with the hardest hit likely to be those reliant on welfare.
In their letter to Mr Kwarteng, Welsh Finance Minister Rebecca Evans joined finance ministers from Scotland and Northern Ireland in highlighting the profound impact of “the largest set of unfunded tax cuts for the rich in over 50 years” stating it was “a huge gamble on public finances and the health of our economy”
They warned against being condemned to another decade of austerity and expressed deep concern over reports that UK government departments would be asked to make spending cuts to balance the budget, which may have profound consequences for devolved budget settlements already eroded by inflation.
But Mr Clarke told The Times: “Western Europe is just living in a fool’s paradise whereby we can be ever less productive relative to our peers, and yet still enjoy a very large welfare state and persist in thinking that the two are somehow compatible over the medium to long term.
“They’re not. We need to address that… if we want those strong public services then we are going to have to pay for them.
“It is important that we look at a state which is extremely large, and look at how we can make sure that it is in full alignment with a lower tax economy.”
It comes on the eve of the Conservative Party conference and the chancellor defending his mini-budget by saying the government “had no other choice” than to do “something different” to spark the economy.
The mini-budget resulted in a tumultuous week which saw the pound fall to an all-time low against the dollar and the Bank of England being forced to spend billions to prevent a collapse of the pensions industry.
‘What the Thatcher government was doing in the 1980s’
Mr Clarke admitted it had been an “uncomfortable week” and defended Ms Truss, but said she would not be deflected from policies they predicted would be unpopular, and suggested her task was analogous to that faced by Margaret Thatcher in the 1980s.
“If I was to describe one word for Liz… it is purposeful,” he said. “She knew – and this was certainly something we discussed during the summer – that this would not be a comfortable process.
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PM acknowledges ‘some disruption’ to UK economy following mini-budget
“[She knew] particularly early on, there would be real potential unpopularity to be courted in seeking to say things and do things which weren’t going to be easy or quick wins. Frankly, she is doing what she believes is right.
“In some ways, there is an analogy with the 1980s and what the Thatcher government was seeking to do in terms of a reset moment where you fundamentally revisit how not just the previous government but multiple governments.”
‘We intend to be extremely rigorous’
Wales Secretary Sir Robert Buckland told Sky News that, while the government would work within its existing three-year spending review package, families could expect to find out what ministers are planning in the next few weeks.
Mr Buckland said he hopes the government’s upcoming announcements will be seen by the market as displaying “fiscal discipline”.
He appeared to confirm what Mr Clarke was suggesting when he said: “We intend to be extremely rigorous when it comes to bearing down on public expenditure.
“That will be developed in the weeks ahead. We’ve got a whole range of announcements coming out on not just spending, but supply-side reforms.
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Chair of OBR Richard Hughes says chancellor will be updated on Friday
“Whether it’s childcare… or… broadband connectivity, all these things add up to an overall package that is designed to, first of all, facilitate growth in the economy, but secondly to emphasise that the government is responsible.”
‘We had to do something different’
Overnight, Mr Kwarteng said the public expected public spending to be tightly controlled.
He wrote in The Daily Telegraph: “The British taxpayer expects their government to work as efficiently and effectively as possible, and we will deliver on that expectation.
“Not all the measures we announced last week will be universally popular. But we had to do something different. We had no other choice.”
The chancellor insisted he would produce a “credible plan” to get public finances on track with a “commitment to spending discipline”.
On Friday night, Ms Truss acknowledged for the first time that “there has been disruption” to the UK economy following last week’s mini-budget.
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‘Liz Truss is a danger to the economy’ says Starmer
Asked on Friday whether she accepted this was a crisis of the government’s own making, the prime minister said: “It was very, very important that we took urgent steps to deal with the costs that families are facing this winter, putting in place the energy price guarantee for which we’ve had to borrow to cover the cost… but also making sure that we are not raising taxes at a time where there are global economic forces caused by the war in Ukraine that we need to deal with.
“I recognise there has been disruption. But it was really, really important that we were able to get help to families as soon as possible.”
Nick Thomas-Symonds, shadow international trade secretary, told Sky News on Saturday: “This is a Tory crisis, made in Downing Street… They’ve crashed the economy by handing out enormous unfunded tax cuts to the very wealthiest people, and it’s going to be working people across the country that pay the price for this.
“They’ve also trashed our international reputation… and… what the government has done is going to lead to economic pain for people that they have chosen… What the government needs to do is recall Parliament and withdraw this budget.”
Truss and Kwarteng met top officials from Britain’s Office for Budget Responsibility (OBR) on Friday.
Mr Kwarteng intends to publish an updated set of economic forecasts from the Office for Budget Responsibility (OBR) and a medium-term fiscal plan setting out how he plans to bring down government debt on 23 November.
Canterbury MP Rosie Duffield has resigned from the Labour Party.
The 53-year-old MP is the first to jump ship since the general election and in her resignation letter criticised the prime minister for accepting thousands of pounds worth of gifts.
She told Sir Keir Starmer the reason for leaving now is “the programme of policies you seem determined to stick to”, despite their unpopularity with the electorate and MPs.
In her letter she accused the prime minister and his top team of “sleaze, nepotism and apparent avarice” which are “off the scale”.
“I’m so ashamed of what you and your inner circle have done to tarnish and humiliate our once proud party,” she said.
Rosie Duffield. Pic: UK Parliament/Jessica Taylor/Handout via Reuters
Sir Keir has faced backlash after a Sky News report revealed he had received substantially more freebies than any other MP since becoming Labour leader.
Since December 2019, the prime minister received £107,145 in gifts, benefits, and hospitality – a specific category in parliament’s register of MPs’ interests.
Ms Duffield, who has previously clashed with the prime minister on gender issues, attacked the government for pursuing “cruel and unnecessary” policies as she resigned the Labour whip.
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She criticised the decision to keep the two-child benefit cap and means-test the winter fuel payment, and accused the prime minister of “hypocrisy” over his acceptance of free gifts from donors.
“Since the change of government in July, the revelations of hypocrisy have been staggering and increasingly outrageous,” she said.
“I cannot put into words how angry I and my colleagues are at your total lack of understanding about how you have made us all appear.”
Ms Duffield also mentioned the recent “treatment of Diane Abbott”, who said she thought she had been barred from standing by Labour ahead of the general election, before Sir Keir said she would be allowed to defend her Hackney North and Stoke Newington seat for the party.
Her relationship with the Labour leadership has long been strained and her decision to quit the party comes after seven other Labour MPs were suspended for rebelling by voting for a motion calling for the two-child benefit cap to be abolished.
“Someone with far-above-average wealth choosing to keep the Conservatives’ two-child limit to benefit payments which entrenches children in poverty, while inexplicably accepting expensive personal gifts of designer suits and glasses costing more than most of those people can grasp – this is entirely undeserving of holding the title of Labour prime minister,” she said.
Ms Duffield said she will continue to represent her constituents as an independent MP, “guided by my core Labour values”.
UK
King Charles hails ‘uniquely special’ Scotland as it marks Holyrood milestone – before being hugged by woman
The King has paid tribute to Scotland as a “uniquely special place” for the Royal Family as he marked the 25th anniversary of the Scottish parliament.
At the ceremony to commemorate a quarter of a century since parliament opened at Holyrood, the King said: “Speaking from a personal perspective, Scotland has always had a uniquely special place in the hearts of my family and myself.
“My beloved grandmother was proudly Scottish, my late mother especially treasured the time spent at Balmoral, and it was there in the most beloved of places, where she chose to spend her final days.”
He said we are all “united by our love of Scotland”, paying tribute to its “natural beauty”, “strength of character”, “diversity of its people”, “passions and frequently deeply held beliefs”.
“From the central belt to the north Highlands, across the islands in Ayrshire, in the Borders, the cities, towns and villages, all the coastal communities, who I wonder, could not fail to be moved by this complex Caledonian kaleidoscope?,” he asked as presiding officer Alison Johnstone and the Queen sat beside him.
After he gave the speech, the King was hugged by a member of the public – who said she did so “because of him being unwell”.
The 75-year-old was diagnosed with cancer in February but has since returned to public duties.
Yvonne Macmillan, 59, from East Renfrewshire, attended the anniversary ceremony with her husband Russell who is registered blind and chosen as a “local hero” for work in their area.
“I asked him if he was feeling better and if I could give him a hug. I actually said to him: ‘Can I hug you?’,” she said.
“As I hugged him I said, ‘God bless you’, so it was like God giving him a hug.”
The King listens to the presiding officer of the Scottish parliament at Holyrood. Pic: PA
The Queen sits alongside the King as he makes his speech on Saturday. Pic: PA
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While Sir Tony Blair’s Labour government legislated for Scottish devolution in 1997 – parliament officially opened at Holyrood on 1 July 1999.
The King has made six visits to the parliament since 1999 – while his mother Queen Elizabeth II made 10 visits during her lifetime.
The King arrives at the Scottish parliament on Saturday. Pic: PA
Scottish First Minister John Swinney is one of a number of MSPs who have been at Holyrood since the start of devolution.
He said in his own speech in Edinburgh on Saturday that the parliament has “placed itself at the very heart of the nation”, describing it as a “vessel of enlightenment, invention and creativity”.
The King shakes hands with First Minister John Swinney in Edinburgh on Saturday. Pic: PA
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The SNP’s Christine Grahame is another MSP who has been there since the start.
“Free tuition, free prescriptions, game-changing policies to tackle child poverty, the ban on smoking, the baby box, ScotRail back in public ownership – none of this would have been possible without the Scottish parliament and the strength of our commitment to self-determination,” she said on Saturday.
The King said the devolved parliament has the ability to “touch and to improve the lives of so many individuals”.
Former first ministers Nicola Sturgeon and Humza Yousaf take a selfie as they wait for the King. Pic: PA
But he added that “there remains much more to be done” for Scotland, the rest of the UK, particularly with regards to climate change.
“Let this moment therefore be the beginning of the next chapter,” he told those assembled.
“The achievement of the past and the commitment shown in the present give us the soundest basis for confidence in the future.”
A moped riding phone thief was caught red-handed after police tracked the device down hours after he snatched it from a woman’s hand.
CCTV footage released by police showed a masked moped rider mount the pavement in Croydon, south London, to swipe a phone from a woman’s hand on 6 March, while another victim had theirs stolen while they waited for a bus an hour later.
Amari Scott, 20, looked surprised when confronted by officers inside a shop, where he was found with two mobile phones.
Amari Scott was caught red-handed. Pic: Met Police
“We’ve just had a moped rob a mobile phone off the pavement and the phone is pinging in this location,” one of the officers told him in body-worn camera footage before Scott was handcuffed and led away.
Police also recovered a stolen motorbike and Scott, from Sutton, south London, was later jailed for four years.
Two teenagers who committed four robberies in the space of just half an hour were also arrested as part of a crackdown in Croydon.
Aged 16 and 17, the teens were issued with referral orders after pleading guilty to charges of robbery, attempted robbery and attempted grievous bodily harm.
Amari Scott was jailed for four years. Pic: Met Police
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They were behind a spree of eight robberies across Croydon and nearby Bromley, including four within 30 minutes on the morning of 5 August.
Their crimes, which included the knife point robbery of a rough sleeper outside Croydon library, were caught on CCTV.
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One of the teenagers tried to discard a knife before she was arrested after a foot chase, telling officers: “The knife wasn’t mine”.
The other ran away, leaving a knife and his bag, but was lying in bed at home when he was arrested shortly after.
Two teenagers committed four robberies in 30 minutes. Pic: Met Police
The Metropolitan Police said officers are intensifying efforts to tackle robbery and theft, encouraging victims to report incidents as they happen to increase the chances of catching the criminals.
Chief Inspector James Weston said: “We understand the impact that robbery has on victims – it is invasive and frightening.
“That’s why our teams are working so hard to deter and catch offenders to reassure our local community.
“Thanks to the hard work of officers, our partners and community grassroots organisations, we are stepping up our efforts and tackling the issues that matter most to the people of Croydon.”
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