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Rishi Sunak is planning to delay energy efficiency targets for rented homes following pressure from landlords about the cost of the improvements.

The overhaul is part of a wider review of the government’s environmental policies, which some Tory MPs fear are too expensive and will hurt the party’s chances at the next general election.

Politics Live: Green policies shouldn’t penalise people, says Gove

The current proposals would see all new tenancies required to have an energy performance certificate (EPC) rating of C or above by 2025 – where A is the best and G is the worst – with this expanded to all existing tenancies by 2028.

The policy is intended to reduce bills for tenants and stop leaky homes adding to emissions, but on Tuesday night, a Whitehall source pointed to the cost it would have on landlords.

They told Sky News: “We remain committed to our environmental objectives but we cannot overburden landlords facing cost of living pressures…we support delaying requirements for new minimum energy efficiency requirements in the private rented sector.”

As well as delaying the targets, the government wants to overhaul the EPC system.

More on Net Zero

The source said: “More generally, we recognise that the EPC system which was designed as an informational tool to meet the requirement of EU membership, needs fundamental reform. Further details will be set out as soon as possible.”

The change, first reported by the Financial Times, is likely to anger campaigners who earlier this week urged the government to stick to its plan.

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What is the UK’s net zero climate plan?

After Michael Gove, the Housing Secretary, said he believed ministers were asking “too much too quickly” of landlords, Chris Venables, political director of the Green Alliance think tank, said: “With millions of people on the front line of a cost-of-living crisis driven by sky-rocketing energy bills, it is alarming to see Sunak proposing to weaken already insufficient plans to make sure renters have well-insulated homes.

“Letting landlords off the hook will only further risk the government missing its legally binding climate and fuel poverty targets, never mind playing politics with the lives of the elderly and the vulnerable as we head into another difficult winter.”

Climate change think tank E3G estimated that improving energy efficiency would save renters an average of £570, but landlords would be expected to pay the first £10,000 of any energy efficiency work themselves.

Ben Beadle, chief executive of the National Residential Landlords Association, said ministers need to develop a proper plan that includes a fair financial package to support improvements in the private rented sector.

Flagship recycling policy to be delayed

The government also confirmed on Tuesday that it is delaying its flagship recycling reforms by a year following industry warnings the scheme will drive up food prices.

The Department for the Environment, Food and Rural Affairs (DEFRA) said plans to force manufacturers to cover the costs of collecting and recycling packaging will be pushed back by a year to help drive down inflation.

The Extended Producers Responsibility (EPR) scheme was due to come into effect in October 2024, but will now take off in October 2025.

The change follows months of campaigning from food and retail bosses, who argued the reforms will cost manufacturers £2bn annually and likely prompt further price increases.

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What are the Conservatives’ green policies – and what could be scrapped?

DEFRA said it will use the additional year to discuss with industry ways to “reduce the costs of implementation wherever possible”.

The government is reviewing its green policies after the Conservative’s narrow and unexpected by-election victory in Uxbridge last week.

Labour’s loss was widely attributed to a backlash over the expansion of ULEZ, which would charge drivers of old polluting petrol and diesel vehicles at least £12.50 per day.

The result has reignited a debate on the cost and speed of policies to reduce carbon emissions.

Some Tories believe creating a dividing line with Labour on the issue will help them gain ground on the Opposition in the polls.

On Monday, Downing Street said that ministers are scrutinising existing net zero pledges “in light of some of the cost-of-living challenges”.

And Rishi Sunak said that while the UK is still committed to reaching the climate target by 2050, any legislation to encourage a green switch would have to be “proportionate and pragmatic” and not add extra costs and “hassle” to households.

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China Merchants Bank tokenizes $3.8B fund on BNB Chain in Hong Kong

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China Merchants Bank tokenizes .8B fund on BNB Chain in Hong Kong

China Merchants Bank tokenizes .8B fund on BNB Chain in Hong Kong

CMBI’s tokenization initiative with BNB Chain builds on its previous work with Singapore-based DigiFT, which tokenized its fund on Solana in August.

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Chancellor admits tax rises and spending cuts considered for budget

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Chancellor admits tax rises and spending cuts considered for budget

Rachel Reeves has told Sky News she is looking at both tax rises and spending cuts in the budget, in her first interview since being briefed on the scale of the fiscal black hole she faces.

“Of course, we’re looking at tax and spending as well,” the chancellor said when asked how she would deal with the country’s economic challenges in her 26 November statement.

Politics Hub: Follow latest updates

Ms Reeves was shown the first draft of the Office for Budget Responsibility’s (OBR) report, revealing the size of the black hole she must fill next month, on Friday 3 October.

She has never previously publicly confirmed tax rises are on the cards in the budget, going out of her way to avoid mentioning tax in interviews two weeks ago.

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Chancellor pledges not to raise VAT

Cabinet ministers had previously indicated they did not expect future spending cuts would be used to ensure the chancellor met her fiscal rules.

Ms Reeves also responded to questions about whether the economy was in a “doom loop” of annual tax rises to fill annual black holes. She appeared to concede she is trapped in such a loop.

Asked if she could promise she won’t allow the economy to get stuck in a doom loop cycle, Ms Reeves replied: “Nobody wants that cycle to end more than I do.”

She said that is why she is trying to grow the economy, and only when pushed a third time did she suggest she “would not use those (doom loop) words” because the UK had the strongest growing economy in the G7 in the first half of this year.

What’s facing Reeves?

Ms Reeves is expected to have to find up to £30bn at the budget to balance the books, after a U-turn on winter fuel and welfare reforms and a big productivity downgrade by the OBR, which means Britain is expected to earn less in future than previously predicted.

Yesterday, the IMF upgraded UK growth projections by 0.1 percentage points to 1.3% of GDP this year – but also trimmed its forecast by 0.1% next year, also putting it at 1.3%.

The UK growth prospects are 0.4 percentage points worse off than the IMF’s projects last autumn. The 1.3% GDP growth would be the second-fastest in the G7, behind the US.

Last night, the chancellor arrived in Washington for the annual IMF and World Bank conference.

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The big issues facing the UK economy

‘I won’t duck challenges’

In her Sky News interview, Ms Reeves said multiple challenges meant there was a fresh need to balance the books.

“I was really clear during the general election campaign – and we discussed this many times – that I would always make sure the numbers add up,” she said.

“Challenges are being thrown our way – whether that is the geopolitical uncertainties, the conflicts around the world, the increased tariffs and barriers to trade. And now this (OBR) review is looking at how productive our economy has been in the past and then projecting that forward.”

She was clear that relaxing the fiscal rules (the main one being that from 2029-30, the government’s day-to-day spending needs to rely on taxation alone, not borrowing) was not an option, making tax rises all but inevitable.

“I won’t duck those challenges,” she said.

“Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof.”

Pic: PA
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Pic: PA

Blame it on the B word?

Ms Reeves also lay responsibility for the scale of the black hole she’s facing at Brexit, along with austerity and the mini-budget.

This could risk a confrontation with the party’s own voters – one in five (19%) Leave voters backed Labour at the last election, playing a big role in assuring the party’s landslide victory.

The chancellor said: “Austerity, Brexit, and the ongoing impact of Liz Truss’s mini-budget, all of those things have weighed heavily on the UK economy.

“Already, people thought that the UK economy would be 4% smaller because of Brexit.

“Now, of course, we are undoing some of that damage by the deal that we did with the EU earlier this year on food and farming, goods moving between us and the continent, on energy and electricity trading, on an ambitious youth mobility scheme, but there is no doubting that the impact of Brexit is severe and long-lasting.”

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Crypto maturity demands systematic discipline over speculation

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Crypto maturity demands systematic discipline over speculation

Crypto maturity demands systematic discipline over speculation

Unlimited leverage and sentiment-driven valuations create cascading liquidations that wipe billions overnight. Crypto’s maturity demands systematic discipline.

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