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Rishi Sunak’s watering down of climate pledges is not a “cynical ploy” – but is rather the prime minister doing “what is right”, Business Secretary Kemi Badenoch has said.

Last night, Mr Sunak announced a raft of changes to the UK’s climate pledges, including delaying the ban on the sale of new internal combustion engine (ICE) vehicles by five years to 2035.

The prime minister explained that he was making the changes as the previous plans were unaffordable and unachievable.

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However, as Sky science and technology editor Tom Clarke explained, the decision seemed to be more about politics – and the general election expected next year – than the climate.

And Ms Badeonch told Sky News this morning: “This is not some sort of cynical ploy.”

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Net zero change ‘not a cynical ploy’

“This is the right thing to do, and I fully support the prime minister.”

More on Kemi Badenoch

Mr Sunak defended his change of direction this morning, telling the BBC that the UK’s decarbonising ambitions are “more ambitious than pretty much any major economy in the world”.

The move has been welcomed by some Conservative MPs, who, believing it may be popular with voters, have been calling for green policies to be delayed to avoid exacerbating the cost of living crisis.

But it has been opposed by sections of the business community, opposition parties, and campaigners – including Al Gore.

One of the critics of the move was Lord Goldsmith, a Conservative former minister.

Ms Badenoch said: “I know Zac Goldsmith very well. He is a friend… I fundamentally disagree with what he has said.

“We are listening to the concerns people are raising with us. Most people in this country do not have the kind of money that he has.”

Trade Secretary Kemi Badenoch speaks, at the BMW Mini plant at Cowley in Oxford, as the company announced plans to build its next-generation electric Mini in Oxford after securing a Government funding package. Picture date: Monday September 11, 2023.
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Kemi Badenoch at the MINI plant in Oxford last week

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Last week, Ms Badenoch visited the BMW MINI plant in Oxford as the company announced it would build its next generation electric vehicles there, securing government funding in the process.

She was asked if yesterday’s roll-back was known about when she announced the deal.

The business secretary said: “Well, I had been making representations to the prime minister – he had not made his decision known to all of us.

“But these were conversations that we were having, So I’m quite pleased that this has happened.”

Sam Coates: Climate changes may jar with Sunak’s image as a stable leader

The car industry was one of the most vocal critics of the government’s changes, as many had planned to stop selling ICE vehicles in seven years time.

Ford was the most sceptical, saying that the new path undermined the “ambition, commitment and consistency” needed for the UK.

Ms Badenoch pointed out the US car giant made the statement “without even hearing what the announcement was”, and added that Toyota welcomed the move.

When asked about criticism from the chief executive of EON – who claimed the changes would mean people have to live in draughty homes – Ms Badenoch urged the leader of the energy giant to “actually look at what the prime minister announced”.

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UK’s new net zero plans

Daisy Powell-Chandler, the head of energy and environment at polling company Public First, explained to Sky News how the public tends to hold a dim view of parties that water down green policies.

She said: “The public aren’t very keen on that, including Conservative and Labour swing voters.

“Most people think that the government should be doing more rather than less to reach net zero.

“So about three times more people think the government should be doing more on the environment than think they should be doing less.

“And there’s an extraordinary consensus right across the age range. For example, climate change these days is amongst people’s tier one concerns.

“It’s just below things like the NHS, but it’s still up there in the top five on most trackers.”

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Sarah Jones, Labour’s shadow industry and decarbonisation minister, told Sky News that her party would return the deadline for ICE sales to 2030, but would not unpick other parts of the changes announced yesterday.

She said that on heat pumps, for example, the government “has utterly failed” to get close to the previous target, and that it was more important to focus on insulating homes first.

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US moves to drop Bitcoin advocate Roger Ver’s tax case with $50M deal

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US moves to drop Bitcoin advocate Roger Ver’s tax case with M deal

US moves to drop Bitcoin advocate Roger Ver’s tax case with M deal

Less than a week after reports of an agreement between the “Bitcoin Jesus” and US authorities, Roger Ver’s 2024 criminal tax case may be nearing an end.

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‘Make or break’: Chancellor warned businesses can’t take more tax hikes in budget

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'Make or break': Chancellor warned businesses can't take more tax hikes in budget

Rachel Reeves has been warned that firms face a “make-or-break moment” at next month’s budget.

The British Chamber of Commerce (BCC) urged the chancellor, who is widely expected to announce tax hikes in November’s budget to fill a gap in the public finances, to steer clear of increasing levies on businesses.

Ms Reeves raised taxes by £40bn last year and the BCC said business confidence had not recovered since.

“Last year’s budget took the wind from their sails, and they have been struggling to find momentum ever since,” BCC director-general Shevaun Haviland said.

She said firms felt “drained” and could not plan ahead as they expected “further tax demands to be laid at their feet” when the budget is delivered on 26 November.

“The chancellor must seize this moment and use her budget to deliver a pro-growth agenda that can restore optimism and belief amongst business leaders,” Ms Haviland added.

“This year’s budget will be a make-or-break moment for many firms.”

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Labour might U-turn on farming tax: What do farmers think?

The BCC also called for a reform of business rates and the removal of the windfall tax on gas and oil introduced by the last government.

In its submission, the industry body outlined more than 60 recommendations, including the proposal of further infrastructure investment, cuts to customs barriers and action on skill shortages.

Earlier this year, Prime Minister Sir Keir Starmer announced Labour would aim to approve 150 major infrastructure projects by the next election, with Labour already pledging to support expansions of both Heathrow and Gatwick airports – another of the BCC’s requests.

While the Treasury would not comment on budget speculation, a spokesperson insisted Ms Reeves would “strike the right balance” between ensuring funding for public services and securing economic growth.

She has vowed to stick to Labour’s manifesto pledges not to raise taxes on “working people”.

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Is Britain heading towards a new financial crisis?

Household spending on the wane

The BCC’s plea to halt further tax rises on businesses comes as retail sales growth slowed in September.

“With the budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months,” Helen Dickinson, chief executive of the British Retail Consortium (BRC), said.

“Rising inflation and a potentially taxing budget is weighing on the minds of many households planning their Christmas spending.”

Total retail sales in the UK increased by 2.3% year-on-year in September, against growth of 2% in September 2024 and above the 12-month average growth of 2.1%, according to BRC and KPMG data.

While food sales were up by 4.3% year-on-year, this was largely driven by inflation rather than volume growth.

Non-food sales growth slowed to 0.7% against the growth of 1.7% last September, making it below the 12-month average growth of 0.9%.

Total retail sales in the UK increased in September compared to the year before. File pic: PA
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Total retail sales in the UK increased in September compared to the year before. File pic: PA

Read more:
Goldman chief delivers warning to Reeves over tax hikes
Reeves urged to break election pledge and raise major tax

Online non-food sales only increased by 1% against last September’s growth of 3.4%, which was below the 12-month average growth of 1.8%.

“The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table,” Ms Dickinson said.

“By exempting these shops when the budget announcements are made, the chancellor can reduce the inflationary pressures hammering businesses and households alike.”

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Starmer and other leaders have fallen into line on Trump’s Gaza plan – now it must deliver

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Starmer and other leaders have fallen into line on Trump's Gaza plan - now it must deliver

I’ve been around a while and seen a lot of the insides of international summits over the years, but this one was truly extraordinary.

Over 20 leaders flew to Sharm el-Sheikh in Egypt from all over the world – Indonesia, Pakistan, Norway, Canada – to witness the signing of Donald Trump’s peace plan.

Gaza deal signed – as it happened

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‘We have peace in Middle East’

This historic day was pure theatre for Trump from start to finish. Flying in from Israel, where he had met hostage families and then addressed the Israeli parliament, he arrived a whopping three hours late, keeping a gaggle of world leaders waiting.

We stood around in corridors watching them move from one room to another to hold meetings with each other, presumably to talk about phase two of Trump’s peace deal.

Testimony to the power of Trump

At one point, Sir Keir Starmer’s meeting with his Turkish counterpart included France’s Emmanuel Macro. That then somehow morphed into a summit which also brought in the Germans, Italy’s Prime Minister Giorgia Meloni, and the leaders of Egypt and Qatar. More chairs kept coming into the room until there was the equivalent of a cabinet table of leaders and advisors sitting in a long line facing each other.

What they were talking about was how each country could help in phase two of the peace effort. Now Trump had, alongside fellow signatories of this deal – Egypt, Qatar, and Turkey – ended the war, could they maintain the peace?

As Starmer put it: “We can’t treat today as historic and let it drop tomorrow.”

But these mini summits in the margins happened by fault rather than design. This day really was designed to bear witness – and offer acknowledgement – to Trump. All of these leaders turned up pretty much in the dark as to what the day held, with his peace summit convened 48 hours earlier.

That they dropped plans to make their way to Egypt is testimony to the power Trump wields.

World leaders at the Gaza peace summit
Image:
World leaders at the Gaza peace summit

He was utterly omnipotent. First, there was the greeting ceremony, in which each leader filed in individually for a photo and handshake with him before all returning to the stage for the family photo.

Then, at the signing ceremony, Trump sat with his three fellow signatories as the world leaders stood behind him.

“This took 3,000 years to get to this point. Can you believe it?” Trump said as he signed that deal. “And it’s going to hold up, too. It’s going to hold up.”

Finally, in another giant hall, Trump gave a speech in which he ran through all the leaders who had turned up – praising them or fondly poking a bit of fun at them accordingly, as (most) of them stood behind him.

He teased Macron for sitting in the front row rather than joining the others on the stage, joking it wasn’t like him to be low-key. He described Meloni as a “beautiful young woman”.

“I’m not allowed to say it because usually it’s the end of your political career if you say it – she’s a beautiful young woman,” said Trump mid-speech. “You don’t mind being called beautiful, right? Because you are,” he turned to say to her – her reaction obscured from view.

Now for the ‘easy part’?

Soon after, the prime minister of Pakistan, invited to say a few remarks by Trump, renewed his call for the US president to be awarded the Nobel Peace Prize.

Having brokered the deal, Trump took the moment and made it into his summit on his terms, as fellow leaders fell into line, literally standing behind him. And in his characteristic bullishness, he told his audience in this final speech that the hard part – the ceasefire – had been done, and rebuilding Gaza was the easy part.

U.S. President Donald Trump talks to Prime Minister Sir Keir Starmer
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U.S. President Donald Trump talks to Prime Minister Sir Keir Starmer

That isn’t really what the rest of them believe: 92% of Gazans have been displaced, the Gaza Strip is a wasteland. Organising a peacekeeping force, getting Hamas to disarm and Israel to withdraw from the strip, putting together a technocratic team and peace board to oversee the running of Gaza still needs to be done.

This was a largely celebratory day, but there are concerns whether this deal will hold up. Trump says Hamas needs to disarm and disband, and yet one of their most senior leaders told Sky News a few days ago, it won’t.

Meanwhile, there is a growing humanitarian crisis in Gaza. The UK has in short order sent in £20m of aid to try to help with sanitation.

On the British side, the prime minister said he had offered to help demilitarise the strip, saying the UK can take a role in “monitoring the ceasefire but also decommissioning the capability of Hamas and their weaponry, drawing on our experience in Northern Ireland”.

“It’s really important we keep that focus. We mustn’t have any missteps now,” he said.

Drone footage of Gaa
Image:
Drone footage of Gaa

Trump’s peace board is still in its infancy – Starmer told me he isn’t going to sit on it, with the make-up still being discussed, while Tony Blair’s participation is controversial.

Trump said on the way over to Egypt that he was going to canvass opinion to make sure everyone is happy with the former prime minister’s presence. It comes after Bassem Naim of Hamas told Sky News that Blair was not welcome in Gaza after his role in the invasion of Iraq.

When I asked Starmer if he thought Trump should be awarded the Nobel Peace Prize he said “there’ll be plenty of people, I’m sure, nominating him” – as he paid tribute to him for getting “leaders to this position”.

Now the task for them all is to implement what Trump has set in train. If his plan works, he would be sitting on an achievement that has eluded successive US presidents for decades.

Trump should rightly be lauded for ending the war, now he must bring the peace.

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