The home secretary has said that “we’re not going to save the planet by bankrupting the British people” in response to reports the government is looking at watering down some of its key green pledges
Among the changes being considering are the pushing back of a ban on the sales of new vehicles with internal combustion engines (ICE) from 2030 to 2035 – and a weakening of plans to phase out gas boilers by 2035.
After calling an emergency meeting of his cabinet this morning, Rishi Sunak is set to outline his next steps in a news conference at 4.30pm today.
Suella Braverman told Sky News that, while the government remains committed to the goal of achieving net zero greenhouse gas emissions by 2050, “we need to put economic growth first”.
“We need to put household costs and budgets first. We need to put the cost of living first,” she added.
“And we’re only going to achieve that net zero target whereby people and the British people can go about their daily lives using their cars, using the facilities that are available.”
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The chair of Ford UK says a delay to the 2030 deadline for selling ICE vehicles would undermine the “ambition, commitment and consistency” they need from the UK government.
The 2030 ban on ICE vehicles is considered a key plank of the government’s goal of achieving net zero because experts say it will encourage people to switch to zero-emission electric vehicles sooner.
In a statement, Mr Sunak said: “No leak will stop me beginning the process of telling the country how and why we need to change.
“As a first step, I’ll be giving a speech this week to set out an important long-term decision we need to make so our country becomes the place I know we all want it to be for our children.”
Conservative MPs are particularly angry at the potential delay to the ending of the sale of internal combustion engines to 2035.
One branded the move “anti-business” given how much has been invested into electric vehicles (EV) and the associated infrastructure.
Could watering down net zero pledges trigger Tory civil war?
An unusual late-night statement from the prime minister triggered by leaks to the media regarding the government’s plans to water down its net zero pledges: Rishi Sunak is continuing to draw the battlelines for the next general election.
Green policy is a contentious topic for both main parties – Keir Starmer, like Sunak, has been heavily criticised for abandoning his green pledges.
But as politicians struggle to balance the cost of going green with boosting the UK’s recovering economy, how much political pain could this really inflict on the prime minister?
Despite a vocal group of critics, behind the scenes many Tory MPs are keen on the climbdown.
One Tory backbencher told Sky News that being “pragmatic and outcome-focused beats virtue signalling every time”.
And Marco Longhi, a Tory MP with a red wall constituency, told me the PM’s decision was extremely welcome.
He said: “While fully behind efforts to deliver a greener planet I am not going to support policies that are only affordable by the richest.”
And at a time when the Conservative party is 19 points behind in the polls – with Labour on 44 points and the Tories lagging on 26 points – Rishi Sunak is keen to make some bold policy decisions in an attempt to close that gap.
However, it remains to be seen whether this is the smartest policy area in which to do that.
According to a YouGov poll from August, 33% of those surveyed said they believe the government should be spending more on the environment and climate change, and 49% believe Sunak’s government isn’t doing enough to reduce carbon emissions.
So, with tentative public support for a green economy, Sunak’s predicted climbdown is an electoral gamble he will be hoping pays off at the ballot box.
They told Sky’s deputy political editor Sam Coates that a push back on the petrol and diesel ban would mean breaking a promise the prime minister made to Conservative MPs privately.
One minister said they would be “staggered” if the ban was delayed, telling Sky News: “Every automotive company is investing in EV, we’ve just given Tata all this money to make batteries, it’s bonkers.”
Tory MPs Chris Skidmore, Alok Sharma and Sir Simon Clarke all complained publicly about the potential watering down of the pledges.
One senior Tory MP told Sky News this morning that the change in policy “has absolutely nothing to do with protecting the British public”, but rather the “sign of a government that’s desperately trying to cling onto power through dangerous and disingenuous rhetoric”.
They added: “It is an outright lie that tackling the climate crisis has to be at the cost of ordinary people, while letting off the hook the rich and powerful fossil fuel companies that are overwhelmingly responsible for the climate crisis the world is already experiencing.”
Lisa Brankin, the chair of Ford UK, highlighted that her company had invested £430m in UK development and manufacturing facilities, with more cash to come to fit the 2030 timeframe.
Ms Brankin said: “This is the biggest industry transformation in over a century and the UK 2030 target is a vital catalyst to accelerate Ford into a cleaner future.
“Our business needs three things from the UK government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three.
“We need the policy focus trained on bolstering the EV market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high.”
A spokesperson for Jaguar Land Rover said: “We are committed to and on track to offer pure electric variants across our brands by 2030 and welcome certainty around legislation for the end of sale of petrol and diesel powered cars.
“We are investing £15bn over the next five years to electrify our luxury brands, which is key to JLR reaching net zero carbon emissions across our supply chain, products, and operations by 2039.”
Stellantis, the owner of Vauxhall, Fiat, Alfa Romeo and DS said: “Clarity is required from governments on important legislation, especially environmental issues that impact society as a whole.”
BMW MINI, which announced plans to construct its electric Mini in Oxford, said it “neither sought or was made any promises” about the timings of an ICE ban when the decision was made.
Asked about the EV industry, Ms Braverman said: “I’m not going to prejudge what the prime minister is going to set out in detail.
“But I would say I do commend him for taking difficult decisions, long-term decisions in the national interest and in the interest of the British people.”
Asked about the concerns raised by her Conservative MPs, Ms Braverman said “everyone should just wait until they hear the detail from the prime minister himself”.
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Darren Jones, Labour’s shadow chief secretary to the Treasury, said we will need to wait for the reaction of the car companies to the anticipated policy change.
He told Sky News that “part of the problem” is Mr Sunak’s “weak leadership”, and the way in which the changes first surfaced through a leak and with a “late night press release from the prime minister’s bunker”.
Rishi Sunak’s closest parliamentary aide when he was prime minister has been charged along with 14 others with election betting offences.
The 15, also including a current Welsh Senedd member and a former police officer, have been charged with cheating related to bets placed on the timing of the 2024 general election.
They are due to appear at Westminster Magistrates’ Court at 10am this Friday to face the charges.
The Gambling Commission said its investigation, which began in June last year, “focused on individuals suspected of using confidential information – specifically advance knowledge of the proposed election date – to gain an unfair advantage in betting markets”.
It opened the investigation after former Montgomeryshire MP Craig Williams, Mr Sunak’s former parliamentary private secretary, admitted placing a £100 bet on 19 May 2024 that the election would be in July.
Mr Sunak announced the general election would be on 4 July, three days after Williams, who was also an election candidate, placed the bet.
Williams, who was dropped as a candidate, admitted last June to placing a “flutter” on the election and said he “committed a serious error of judgement, not an offence”.
Current Senedd member, police officer and Tory campaign director charged
Among those charged is Russell George, a Conservative member of the Welsh Senedd, who returned to the front bench in October after stepping back from his role as spokesman for mid-Wales in June.
Over the weekend, the Welsh Conservatives re-selected him to be a candidate in the Senedd elections next year, but have now suspended him “pending outcome of the justice process”.
Image: Russell George has been suspended as a Member of the Senedd. Pic: Welsh Parliament
Other notable people charged are former police officer Jeremy Hunt, Tony Lee, the Conservatives’ former campaign director, and his wife, Laura Saunders, a former Tory election candidate, and Nick Mason, the Conservatives’ former chief data officer.
Many others are, or were, also Conservative Party staff. The party has said those still working for them have been suspended.
A Conservative Party spokesman said: “The Conservative Party believes that those working in politics must act with integrity. Current members of staff who have been charged are being suspended with immediate effect.
“These incidents took place in May last year. Our party is now under new leadership and we are cooperating fully with the Gambling Commission to ensure that their investigation can conclude swiftly and transparently.”
Image: Tony Lee was Conservative campaign director
Who are the 15 people charged?
• Simon Chatfield, 51, from Farnham • Russell George, 50, from Newtown, Wales (suspended Welsh Conservative Senedd member for Montgomeryshire) • Amy Hind, 34, from Loughton, Essex • Anthony Hind, 36, from Loughton, Essex • Jeremy Hunt, 55, from Horley (a former police officer, not the ex-chancellor) • Thomas James, 38, from Brecon, Wales • Charlotte Lang, 36, from Brixton • Anthony Lee, 47, Bristol (known as Tony, former director of Conservative Party campaigning) • Iain Makepeace, 47, from Newcastle Upon Tyne • Nick Mason, 51, from Gillingham (former Conservative Party chief data officer) • Paul Place, 53, from Hammersmith, London • Laura Saunders, 37, from Bristol (Tony Lee’s wife and Conservative 2024 candidate for Bristol North West who was then dropped) • James Ward, 40, from east London • Craig Williams, 39, from Llanfair Caereinion, Welshpool • Jacob Willmer, 39, from Richmond, London.
Labour candidate Kevin Craig was included in the investigation after placing a bet that he would lose his bid to become an MP, but was cleared of any wrongdoing in December.
Image: Laura Saunders was the party’s candidate in Bristol North West and is the wife of Tony Lee Pic: Laura Saunders for Bristol North West
Ellie Reeves, chair of the Labour Party, said: “This is a very serious development. The British people will expect that anyone found guilty of wrongdoing faces the full force of the law.
“Kemi Badenoch must make crystal clear that anyone found guilty of using insider information to cheat the system to try to enrich themselves has no place in the Conservative Party. No ifs, no buts.
“Labour is turning the page on 14 years of Conservative chaos and scandal and we’re turning our country round through our Plan for Change. Only Labour can be trusted to deliver security for working people and the renewal Britain needs.”
Met Police investigation
After the Gambling Commission began its investigation last June, the Metropolitan Police opened an inquiry into whether any of the political figures or police had committed misconduct in public office.
In August 2024, the Met said they would not be charging any of them, but they remained under investigation by the Gambling Commission into whether they had broken criminal gambling laws.
Four more people have attempted to take their own life in relation to the loan charge scandal, which has left tens of thousands of contractors facing huge bills for tax their employers should have paid, Sky News has learnt.
HMRC has made 17 referrals to the police watchdog (Independent Office for Police Conduct) over the suicide attempts of 14 people, up from the 13 referrals of 10 people previously known about in October 2023.
The figures, revealed in response to a Freedom of Information request by Sky News, come on top of the 10 known suicides of people caught up in the controversial tax crackdown, which has alarmed MPs across the political spectrum.
The loan charge was announced in George Osborne’s 2016 budget and made freelancers liable for years of retrospective income and national insurance tax after being paid their salaries in loans.
Image: Former Tory chancellor George Osborne
HMRC has been accused of harassing ordinary people who were victims of mis-selling, as the arrangement was widely promoted by lawyers, accountants and tax professionals in the 2000s and 2010s.
Labour has launched an independent review into the policy but campaigners have branded it a “sham” and “cover-up” as it doesn’t look at the principle of the loan charge, only ways to make people settle.
‘Trapped in an endless nightmare’
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Father-of-three Ray Newton is one thousands of people who paid an umbrella company to manage his fees while working as an IT contractor for Barclays Bank from 2009-2010.
They paid him in tax-free loans on the assurance it was “completely above board”, but in 2016 he was hit with an unexpected HMRC bill of £16,000.
Image: Ray Newton has faced demands for almost £60,000 from HMRC
Ray paid it off, but last year he suddenly faced demands for another £15,000 in income tax and £14,000 in interest that had been accruing the whole time without his knowledge. The “bombshell bill” also included £12,000 of inheritance tax on the loans despite them being classed as wages.
“Instead of going for the tax that was avoided they are going for the jugular,” said Ray, 70.
The bill arrived in the post after eight years of sporadic letters from HMRC saying Ray still needed to settle but not explaining why or by how much, often ignoring him when he inquired. It nearly destroyed him.
Image: Ray attempted suicide over the stress of the loan charge
“I was literally begging – please tell me what it is I owe. It made me look as though I was a bad person… my wife actually left me and I got really in a state over this,” he said.
“I was having counselling, I was on antidepressant drugs, I was on sleeping pills. You know, my whole world was sort of falling apart. It was like being trapped in an endless nightmare.
“I did attempt suicide but I was stopped by a member of the public.”
Ray is now in a better place and is back with his wife, while HMRC has recently accepted the inheritance tax isn’t owed and giving him misleading or incorrect information.
But he is sceptical about the review.
“The government can’t afford or don’t want to afford the implications of a proper inquiry. This is going to be a whitewash.”
HMRC says it takes the wellbeing of all taxpayers seriously and is committed to identifying and supporting customers who need extra help with their tax affairs. It says it has made significant improvements to this service over the last few years.
Sky News spoke to several loan charge victims who said while they didn’t dispute owing tax, HMRC’s chaotic communication was making it harder to settle and move on.
“The impact has been devastating”
For father-of-two Stephen Bishop, the long drawn-out battle contributed to the breakdown of his marriage and led him to express suicidal thoughts.
He was told to join a loan scheme by the company which hired him and has since faced demands in unpaid tax ranging from £80,000 – more than he’d earn in a year – to £20,000 while a payment plan set up in 2018 was randomly cancelled.
It took many more years to reach a new settlement and after £18,000 was finally agreed upon, he was whacked with a £10,000 interest bill for the late payment.
Image: Stephen Bishop says the stress of HMRC’s conduct impacted his marriage
HMRC continued to contact him after he requested to go through his accountant due to his deteriorating mental health, with an inspector even showing up at his door.
“I can honestly understand why so many people have taken their own lives over this. The impact has been devastating on me,” he said.
What is being reviewed?
Since 2016, HMRC has agreed 25,000 settlements with employers and individuals over their use of loan schemes, which will raise around £4.2bn in revenue.
However, over 40,000 people and 5,000 employers are yet to settle.
Labour promised an “independent review” in opposition, with Treasury minister James Murray saying the loan charge had “become a nightmare for ordinary people… who are the victims of mis-selling and face financial ruin”.
Image: The loan charge has left many people facing financial ruin
After winning the election Mr Murray also attended a “harrowing meeting” where many loan charge victims “broke down in tears”, according to Greg Smith, Tory co-chairman of the Loan Charge and Taxpayer Fairness all-party parliamentary group (APPG), who suggested the “partial review” was down to “wilful ignorance or the bottom line” and warned it could lead to more suicides if people continue to face financial ruin.
Campaigners hoped the inquiry would look at the principle of retrospective tax legislation, the role of promoters who made profits from the schemes and HMRC’s conduct.
However, it will only examine the barriers facing those who have yet to settle and recommend ways for them to so do by the summer. And it is being run by former HMRC boss Ray McCann, leading some to question its independence.
‘Internal stitch-up’
Sir Iain Duncan Smith, former Tory leader and another long-term critic of the loan charge, called the review an “internal HMRC stitch-up… ran by an ex-HMRC honcho”.
He said the loan charge is a “disaster” made by the tax office for being slow to crack down on the loan schemes and the government should “draw a line under this and write the debt off”.
Image: Sir Iain Duncan Smith
“It seems to me any MP that goes to be a minister of the Treasury gets taken prisoner by them. This should be a full-scale review where apportioning blame is part of this,” Mr Duncan Smith added.
In a letter responding to concerns of the APPG, Mr Murray said it would have been “irresponsible for the government not to acknowledge the challenging fiscal circumstances that we inherited” and “that is the context in which this review takes place”.
He also defended Mr McCann’s independence, saying the former president of the Chartered Institute for Taxation is “a highly respected figure in the tax world whose name was suggested by one of the loan charge campaigners”.
The government declined to comment further while the review is ongoing.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK