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Labour says it has obtained a leaked document showing proposed delays to HS2 would end up increasing the cost of the project for the government.

Ministers announced last week that the construction of the northwest sections – from Birmingham to Crewe, then Crewe to Manchester – would be delayed by two years to spread the cost and save money.

But shadow transport secretary Louise Haigh said advice written by officials in the Department for Transport had “blown apart” the money-saving claim and “laid bare the consequences of the decision”.

Politics live: Date set for Johnson to face MPs over partygate

Brandishing the papers during an urgent question in the Commons, the Labour MP said: “[The transport secretary’s] chief justification was to balance the nation’s books. But here his own department admit what he will not – the delay itself will increase costs.

“They admit it will cost jobs, that construction firms could go bust. And they cannot rule out slashing high-speed trains serving Stoke, Macclesfield and Stafford all together.”

Ms Haigh also said officials warned about the London hub at Euston, saying trains could be forced to terminate on the outskirts of the capital instead until 2041.

“Is there anything more emblematic of this failed government than their flagship levelling up project that neither makes it to the north or to central London,” added the shadow minister.

“Isn’t it time the minister came clean? This absurd plan will hit jobs, hurt growth and cost taxpayers even more.

“Last year they crashed the economy and once again they are asking the country to pay the price… this announcement proves once and for all the Conservatives can’t fix the problem because the Conservatives are the problem.”

Rail minister Huw Merriman said the government did not comment on leaked documents.

But he added: “It is an entirely responsible government approach to balance the commitments that we make… [with] public spending pressures, as there are right now due to the help this government has given to those facing increased energy costs to the continued costs from the pandemic, and therefore to the impact on the amount of borrowing.

“Over £100bn is required each year, or was last year, in order to service the overdraft. That’s greater than the amount we spend on defence.

“It would be entirely irresponsible of any government to look at all of its portfolio without those figures in mind.”

Read more:
HS2 explained: What is it and why are parts being delayed?

The Birmingham to Crewe section of HS2 was due for extension between 2030 and 2034 to help boost transport in the north of England.

But last week, transport secretary Mark Harper said the window has now shifted to 2032 to 2036, while services will not extend to Manchester until the 2040s.

Mr Harper also hinted at delays to services coming into Euston.

The original price tag for the project back in 2009 was £37.5bn, but some estimates now put the cost at more than £100bn.

A planned extension to Leeds was already shelved in November 2021.

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The government announced delays to the construction of HS2 last week.

As well as facing criticism over the delays, the government was attacked for the method of its announcement.

Ministers snuck the news out in a written statement late on Thursday afternoon as parliament was ending its sittings for the week, rather than sending someone to the Commons to explain the decision.

Labour’s Ms Haigh said: “18 months ago they slashed Northern Powerhouse rail, they binned HS2 to Leeds, they sold out the north of England and here we are again – huge changes affecting billions in investment and jobs announced at 5pm on Thursday minutes before this House rose.

“We now know why the secretary of state was so desperate to dodge scrutiny.”

Mr Merriman apologised for the timing, accepting it was “discourteous to honourable members”.

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Stock markets slump for second day running after Trump announces tariffs – in worst day for indexes since COVID

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Stock markets slump for second day running after Trump announces tariffs - in worst day for indexes since COVID

Worldwide stock markets have plummeted for the second day running as the fallout from Donald Trump’s global tariffs continues.

While European and Asian markets suffered notable falls, American indexes were the worst hit, with Wall Street closing to a sea of red on Friday following Thursday’s rout – the worst day in US markets since the COVID-19 pandemic.

As it happened: Worst week’s trading in five years

All three of the US’s major indexes were down by more than 5% at market close; The Dow Jones Industrial Average plummeted 5.5%, the S&P 500 was 5.97% lower, and the Nasdaq Composite slipped 5.82%.

The Nasdaq was also 22% below its record-high set in December, which indicates a bear market.

Read more: What’s a bear market?

Ever since the US president announced the tariffs on Wednesday evening, analysts estimate that around $4.9trn (£3.8trn) has been wiped off the value of the global stock market.

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Mr Trump has remained unapologetic as the markets struggle, posting in all-caps on Truth Social before the markets closed that “only the weak will fail”.

The UK’s leading stock market, the FTSE 100, also suffered its worst daily drop in more than five years, closing 4.95% down, a level not seen since March 2020.

And the Japanese exchange Nikkei 225 dropped by 2.75% at end of trading, down 20% from its recent peak in July last year.

Pic: Reuters
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US indexes had the worst day of trading since the COVID-19 pandemic. Pic: Reuters

Trump holds trade deal talks – reports

It comes as a source told CNN that Mr Trump has been in discussions with Vietnamese, Indian and Israeli representatives to negotiate bespoke trade deals that could alleviate proposed tariffs on those countries before a deadline next week.

The source told the US broadcaster the talks were being held in advance of the reciprocal levies going into effect next week.

Vietnam faced one of the highest reciprocal tariffs announced by the US president this week, with 46% rates on imports. Israeli imports face a 17% rate, and Indian goods will be subject to 26% tariffs.

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Do Trump’s tariffs add up?

Read more:
Markets gave Trump a clear no-confidence vote
There were no winners from Trump’s tariff gameshow

China – hit with 34% tariffs on imported goods – has also announced it will issue its own levy of the same rate on US imports.

Mr Trump said China “played it wrong” and “panicked – the one thing they cannot afford to do” in another all-caps Truth Social post earlier on Friday.

Later, on Air Force One, the US president told reporters that “the beauty” of the tariffs is that they allow for negotiations, referencing talks with Chinese company ByteDance on the sale of social media app TikTok.

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Tariffs: Xi hits back at Trump

He said: “We have a situation with TikTok where China will probably say, ‘We’ll approve a deal, but will you do something on the tariffs?’

“The tariffs give us great power to negotiate. They always have.”

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Financial markets were always going to respond to Trump tariffs but they’re also battling with another problem

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Financial markets were always going to respond to Trump tariffs but they're also battling with another problem

Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.

The damage it will do is obvious: costs for companies will rise, hitting their earnings.

The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.

Tariffs latest: FTSE 100 suffers biggest daily drop since COVID

Financial investors had been gradually re-calibrating their expectations of Donald Trump over the past few months.

Hopes that his actions may not match his rhetoric were dashed on Wednesday as he imposed sweeping tariffs on the US’ trading partners, ratcheting up protectionism to a level not seen in more than a century.

Markets were always going to respond to that but they are also battling with another problem: the lack of certainty when it comes to Trump.

More on Donald Trump

He is a capricious figure and we can only guess his next move. Will he row back? How far is he willing to negotiate and offer concessions?

Read more:
There were no winners from Trump’s tariff gameshow
Trade war sparks ‘$2.2trn’ global market sell-off

These are massive unknowns, which are piled on to uncertainty about how countries will respond.

China has already retaliated and Europe has indicated it will go further.

That will compound the problems for the global economy and undoubtedly send shivers through the markets.

Much is yet to be determined, but if there’s one thing markets hate, it’s uncertainty.

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Court confirms sacking of South Korean president who declared martial law

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Court confirms sacking of South Korean president who declared martial law

South Korea’s constitutional court has confirmed the dismissal of President Yoon Suk Yeol, who was impeached in December after declaring martial law.

His decision to send troops onto the streets led to the country’s worst political crisis in decades.

The court ruled to uphold the impeachment saying the conservative leader “violated his duty as commander-in-chief by mobilising troops” when he declared martial law.

The president was also said to have taken actions “beyond the powers provided in the constitution”.

Demonstrators who stayed overnight near the constitutional court wait for the start of a rally calling for the president to step down. Pic: AP
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Demonstrators stayed overnight near the constitutional court. Pic: AP

Supporters and opponents of the president gathered in their thousands in central Seoul as they awaited the ruling.

The 64-year-old shocked MPs, the public and international allies in early December when he declared martial law, meaning all existing laws regarding civilians were suspended in place of military law.

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Highs and lows of Five-Year Keir
MP tells Sky News she was targeted online by Tate brothers

More on South Korea

The Constitutional Court is under heavy police security guard ahead of the announcement of the impeachment trial. Pic: AP
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The court was under heavy police security guard ahead of the announcement. Pic: AP

After suddenly declaring martial law, Mr Yoon sent hundreds of soldiers and police officers to the National Assembly.

He has argued that he sought to maintain order, but some senior military and police officers sent there have told hearings and investigators that Mr Yoon ordered them to drag out politicians to prevent an assembly vote on his decree.

His presidential powers were suspended when the opposition-dominated assembly voted to impeach him on 14 December, accusing him of rebellion.

The unanimous verdict to uphold parliament’s impeachment and remove Mr Yoon from office required the support of at least six of the court’s eight justices.

South Korea must hold a national election within two months to find a new leader.

Lee Jae-myung, leader of the main liberal opposition Democratic Party, is the early favourite to become the country’s next president, according to surveys.

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