Devolved nations demand urgent meeting with chancellor as Tory top team doubles down on plan to cut spending

Published

2 years ago

October 1, 2022

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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.

“[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.

“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.

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.

UK

Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Published

8 hours ago

November 22, 2024

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Two people detained during a security incident at Gatwick Airport have been allowed to continue their journeys after a suspect package saw a “large part” of the South Terminal evacuated.

The terminal was closed for hours after the discovery of a “suspected prohibited item” in a passenger’s luggage sparked an emergency response. It reopened at around 3.45pm.

Officers from the EOD (Explosive Ordnance Disposal) team “made the package safe” before handing the airport back to its operator, Sussex Police said.

Their statement continued: “Two people who were detained while enquiries were ongoing have subsequently been allowed to continue their journeys.

“There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel.”

The force also thanked the public and airport staff for their patience while the incident was ongoing.

Earlier the airport, which is the UK’s second busiest, said the terminal was evacuated after a “security incident”.

“The earlier security alert has now been resolved and cleared by police,” it later said in a statement on Friday afternoon.

“The South Terminal is reopening to staff and will be open to passengers shortly.”

Gatwick said some flights were cancelled while others were delayed.

It said passengers should contact their airlines for any updates on flights.

Footage on social media taken outside the airport showed crowds of travellers heading away from the terminal building.

“Arrived at London Gatwick for routine connection. Got through customs to find out they’re evacuating the entire airport,” one passenger said.

“Even people through security are being taken outside. Trains shut down,” another passenger added, who said “thousands” of people were forced to leave.

Another passenger said people near the gates were being told to stay there and not go back to the departure lounge.

People outside the airport were handed blankets and water, passengers told Sky News.

The airport said its North Terminal was still operating normally.

Gatwick Express said its trains did not call at Gatwick Airport during the police response, but the airport said trains would start calling there again once the terminal was fully reopened.

More than 600 flights were due to take off or land at Gatwick on Friday, amounting to more than 121,000 passenger seats, according to aviation analytics firm Cirium.

UK

Gatwick: What are your rights if your flight is delayed or cancelled?

Published

11 hours ago

November 22, 2024

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Gatwick: What are your rights if your flight is delayed or cancelled?

Gatwick Airport’s South Terminal has been heavily disrupted after a “suspected prohibited item” was discovered in luggage, leaving passengers in limbo.

Some passengers were reportedly left on planes that weren’t taking off, while others were stranded in the airport for hours after Gatwick made the announcement this morning.

Sussex Police said the explosive ordnance disposal team was being sent in “as a precaution” and a security cordon was put in place.

It now says the incident has been resolved and cleared – but warned there were still “some delays and cancellations”.

Gatwick Airport latest updates

The airport, which is the UK’s second busiest, was set to see off some 316 departing flights today, according to aviation analytics website Cirium.

But what are the rights of passengers if their flights are delayed or cancelled?

Your rights during delays

Your flight is covered by UK law if it departs from a UK airport, arrives at a UK airport on a UK or EU airline, or arrives at an EU airport on a UK airline.

When it comes to significant delays, UK law says airlines must provide you with care and assistance.

Significant delays are classed as:

More than two hours for short-haul flights of under 1,500km (932 miles)
More than three hours for medium-haul flights of 1,500km-3,500km (932-2,175 miles)
More than four hours for long-haul flights of over 3,500km

Here’s what the law says the airline must provide you with until it is able to fly you to your destination:

A reasonable amount of food and drink
A means for you to communicate (often by refunding the cost of your calls)
Accommodation, if you are re-routed the next day
Transport to and from the accommodation (or your home, if you are able to return there)

It says this must be provided for you for however long delays last, irrespective of what has caused them.

Airlines may not always be able to arrange care and assistance for all passengers during major disruptions directly, but the UK Civil Aviation Authority (CAA) says you can organise the things listed for yourself and then claim the cost back from your airline later if you keep every receipt and do not spend more than is deemed reasonable.

In other words, don’t splash out on things like alcohol and luxury hotels during your wait and expect to claim your money back later.

What are your rights if your flight is cancelled?

If your flight is cancelled, the airline must either give you a refund or book you on an alternative flight.

You can get your money back for all parts of a ticket you haven’t used, the CAA says.

If you have booked a return flight and the outbound leg is cancelled, for example, you can get the full cost of the return ticket back from your airline.

“If you are a transfer passenger and you have already completed part of your journey, you are also entitled to a flight back to your original departure point when your connecting flight is cancelled and you decide not to continue your journey,” it adds.

If you still want to travel, your airline must find you an alternative flight – whether it is the next available one, or a flight at an alternative, later date.

If another airline is flying significantly sooner than yours is able to offer, you may have the right to be booked onto a rival airline’s flight, but this has to be negotiated with the company.

On last-minute cancellations, Naveen Dittakavi, founder and chief executive of Next Vacay, said: “If you’re already at the airport once the flight is cancelled, the best thing you can do is stay calm – you are protected against many things that might go wrong.

“Try calling the airline helpline rather than waiting to speak directly with the airport staff. The helpline is often more flexible and may provide you with an e-credit or voucher, or flexibility to change your travel dates quickly.”

Can you get compensation?

In some cases, airlines may have to provide compensation if your flight arrives at its destination more than three hours late – but that is only if the delay is deemed to be your airline’s fault.

Disruptions caused by things deemed “extraordinary circumstances” are not eligible for compensation, according to the CAA.

UK

Downing Street indicates Netanyahu would be arrested in UK after ICC warrant

Published

14 hours ago

November 22, 2024

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Downing Street indicates Netanyahu would be arrested in UK after ICC warrant

Downing Street has indicated Israeli Prime Minister Benjamin Netanyahu would be arrested if he arrived on British soil following an international arrest warrant being issued for him.

On Thursday, the International Criminal Court (ICC) issued arrest warrants for Netanyahu and former Israeli defence secretary Yoav Gallant for alleged war crimes and crimes against humanity related to the war in Gaza.

The UK government was reluctant to commit to saying Netanyahu would be arrested if he came to the UK but Sir Keir Starmer’s spokesman said the government would “fulfil its legal obligations” in relation to the arrest warrant.

“The UK will always comply with its legal obligations as set out by domestic law, and indeed international law,” he said.

He added the domestic process linked to ICC arrest warrants has never been used to date by the UK because the country has never been visited by anyone wanted by the international court.

Earlier on Friday, Home Secretary Yvette Cooper said it “wouldn’t be appropriate for me to comment” on the processes involved as the ICC is independent, although the UK is a member.

She told Sky News: “We’ve always respected the importance of international law, but in the majority of the cases that they pursue, they don’t become part of the British legal process.

“What I can say is that obviously, the UK government’s position remains that we believe the focus should be on getting a ceasefire in Gaza.”

However, Emily Thornberry, Labour chair of the foreign affairs committee in parliament, told Sky News: “If Netanyahu comes to Britain, our obligation under the Rome Convention would be to arrest him under the warrant from the ICC.

“Not really a question of should, we are required to because we are members of the ICC.”

After winning July’s election the government said it would not oppose the ICC’s right to issue the warrants.

Ireland, France and Italy have signalled they would arrest Netanyahu if he came to their countries.

Asked if police would arrest the Israeli leader in Ireland, Irish Taoiseach Simon Harris said: “Yes, absolutely. We support international courts and we apply their warrants.”

Germany said it would make a decision if Netanyahu came to Germany but said it is one of the “biggest supporters of the ICC”, partly as a result of history.

A German government spokesman said: “At the same time, it is a consequence of German history that we share unique relations and a great responsibility with Israel.”

An ICC arrest warrant was also issued for Hamas leader Mohammed Diab Ibrahim al Masri, the mastermind behind the 7 October attacks in Israel, for alleged war crimes and crimes against humanity.

Israel claims Al Masri was killed earlier this year but the ICC said that has not been confirmed, so it was issuing the arrest warrant.

Netanyahu’s office said the warrants against him and Gallant were “antisemitic” and said Israel “rejects with disgust the absurd and false actions”.

Neither Israel nor the US are members of the ICC. Israel has rejected the court’s jurisdiction and denies committing war crimes in Gaza.

US President Joe Biden described the warrants against Israeli leaders as “outrageous”, adding: “Whatever the ICC might imply, there is no equivalence – none – between Israel and Hamas.”

Former Israeli prime minister Naftali Bennett said the warrants for Netanyahu and Gallant were a “mark of shame” for the ICC.

The Board of Deputies of British Jews said the ICC’s decision sent a “terrible message”.

Hungarian Prime Minister Viktor Orban said on Friday he would invite Netanyahu to visit Hungary and he would guarantee the arrest warrant would “not be observed”.

The ICC originally said it was seeking arrest warrants for the three men in May for the alleged crimes and on Thursday announced that it had rejected challenges by Israel and issued warrants of arrest.

In its update, the ICC said it found “reasonable grounds to believe” that Netanyahu and Gallant “bear criminal responsibility” for alleged crimes.

These, the court said, include “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts”.

It is the first time a sitting leader of a major Western ally has been accused of war crimes and crimes against humanity by a global court of justice.