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Labour has pledged to bolster the power of the UK’s economic watchdog to prevent a repeat of the “disastrous mistakes” of Liz Truss’s mini-budget.

Labour leader Sir Keir Starmer has vowed to introduce legislation that would allow the Office for Budget Responsibility (OBR) to independently publish their own impact assessment of any major and permanent tax and spending changes.

His shadow chancellor, Rachel Reeves, said it meant that “never again” can the “disastrous mistakes” of the former prime minister be repeated, ahead of the first anniversary of her “fiscal event”.

Tories accuse Starmer of wanting to ‘return to agonies of the past’ – politics latest

The mini-budget last September spooked the markets and sparked a huge economic fallout, pushing up government borrowing costs and putting certain pension funds on the brink of collapse.

One of the reasons for the markets’ reaction was that Ms Truss and her chancellor, Kwasi Kwarteng, refused to publish the OBR’s independent forecasts for the public finances alongside the plans.

The party said under its plans, ministers would be forced to open their books to the forecasters – though any government wanting to disregard them could seek to reverse the legislation.

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It said families and businesses are “still paying the price” for her “crashing the economy” – with households coming off fixed rate mortgages paying an average of £220 more a month and inflation forecast to be the highest in the G7.

They have billed their proposal as a “fiscal lock” which would ensure fiscal stability by:

  • Amending the legal framework governing the OBR to guarantee that where a fiscal event makes permanent tax and spending changes over a certain threshold, the fiscal watchdog can independently publish a forecast of the impact
  • Setting out the threshold in a revised charter of budget responsibility, that would be voted on in Parliament
  • Ensuring that in the event of an emergency where changes must be introduced at speed and a forecast cannot be produced in time, the OBR would be allowed to set a date for when it can publish its forecast
  • Setting out a fixed timetable for budgets that would say major fiscal decisions are announced by the end of November each year, allowing businesses and families four months to prepare for the new tax year and avoiding major changes to policy at the last minute
  • Annual autumn budgets would be followed by a spring update in early March providing an updated forecast and minor policy changes

James Murray, Labour’s shadow financial secretary to the Treasury, told Sky News this morning it was “absolutely crucial to legislate because we all remember what happened a year ago”.

He accused the Tories of having “set the economy on fire” with the mini-budget that “sidelined the OBR”.

“Never again should a prime minister and a chancellor be able to play fast and loose with public finances and damage the economy and household budgets in the way they have,” he added.

Speaking ahead of a visit with the Labour leader to the London Stock Exchange on Friday, the shadow chancellor said: “The economic damage done by the Conservatives’ mini-budget was nothing short of disastrous and Britain is still paying the price, with higher mortgages, higher energy bills and higher prices in the shops.

“As chancellor, my mission will be to bring stability back to our economy because that is the only way we can bring growth back. Never again can a prime minister or chancellor be allowed to repeat the disastrous mistakes of last year’s mini-budget.

“Labour will introduce a new fiscal lock to strengthen the UK’s financial stability to prevent the turmoil we witnessed this time last year. Labour will ensure stability returns to our economy and on that rock of stability working people will be better off.”

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Truss ‘tried to fatten and slaughter the pig’

Labour has been seeking to pitch itself as fiscally prudent, prioritising stabilising the economy over big spending commitments in a move that has angered some unions and those on the left.

They have sought to weaponise the anniversary of the Truss mini-budget to hammer home their message of fiscal responsibility, while highlighting the government’s record on the economy.

Ms Truss’ £45bn package of unfunded tax cuts, which she admitted would primarily have benefited the wealthy, sent the pound tumbling, interest rates soaring and culminated with the Bank of England having to intervene to prevent pension markets from collapsing.

Although she rowed back on her measures and sacked her chancellor, Kwasi Kwarteng, it was not enough to save her administration from collapsing and she resigned after just 49 days in the job – making her the shortest serving prime minister in British history.

She is still facing criticism over her actions, with the former Bank of England governor Mark Carney this week accusing her of turning Britain into “Argentina on the Channel” instead of “Singapore on the Thames”.

But Ms Truss has remained unrepentant, blaming “institutional bureaucracy” for her downfall.

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Why are abuse survivors losing faith in the grooming gang inquiry?

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Why are abuse survivors losing faith in the grooming gang inquiry?

The grooming gangs inquiry has been plunged into disarray this week before it has even started, as four survivors have quit the panel and two frontrunners for chairperson have withdrawn.

The inquiry was announced in June, but frustrations have grown over the pace of progress towards launching it, with pressure mounting on the government to appoint a chair and set out its terms of reference.

Survivors Fiona Goddard and Ellie-Ann Reynolds were first to stand down from their roles over concerns about who could head the inquiry and fears it may be “watered down” – something Sir Keir Starmer has denied, insisting that “injustice will have no place to hide”.

Both candidates shortlisted to lead the inquiry have now pulled out.

Here’s what we know about why panel members have quit and what the government has said in response.

Concerns over inquiry chairs

The resignations came after Sky News revealed the two shortlisted chairs for the inquiry were former police chief Jim Gamble and social worker Annie Hudson.

Jim Gamble and Annie Hudson emerged as the leading candidates
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Jim Gamble and Annie Hudson emerged as the leading candidates

Ms Goddard was the first to resign from the survivors’ liaison panel, expressing deep reservations about the candidates: “One has a background in police and the other, a social worker. The very two services that contributed most to the cover-up of the national mass rape and trafficking of children.

“This is a disturbing conflict of interest, and I fear the lack of trust in services from years of failings and corruption will have a negative impact in survivor engagement with this inquiry.”

The other survivors who resigned also took issue with the shortlisted chairs in their statements.

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Fiona Goddard speaking to Sky News in June

Ms Hudson withdrew her candidacy on Tuesday, while Mr Gamble pulled out of the running on Wednesday.

In a letter to Home Secretary Shabana Mahmood explaining his decision, Mr Gamble said it was “clear that a lack of confidence due to my previous occupation exists among some” and that he did not want to proceed without a consensus among the victims.

A Home Office spokesperson said: “We are disappointed that candidates to chair that inquiry have withdrawn. This is an extremely sensitive topic, and we have to take the time to appoint the best person suitable for the role.”

Speaking to Sky News after Mr Gamble’s resignation, Ms Reynolds said: “The minute that we found out their former employment, it raised red flags.”

She claimed they represented “the very institutions that have failed us” and that their views would not have been “unbiased” or “impartial”.

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Survivor Ellie-Ann Reynolds speaks after Gamble withdraws

During Prime Minister’s Questions on Wednesday, Sir Keir said his government “will find the right person to chair the inquiry”, but did not mention names.

Ms Reynolds and other victims have called for a judge to chair the inquiry, but Sir Keir said he ruled that out because it would require all ongoing criminal proceedings to finish before the inquiry could begin, leading to lengthy delays.

“We’ve waited years for the truth,” Ms Reynolds said. “The timing really doesn’t matter. As long as we know that it’s going to be done properly and impartially… we would be able to wait to ensure that that’s done.”

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PM explains judge stance and defends Jess Phillips

The full statutory inquiry into how cases of child sexual exploitation have been handled across England and Wales was announced by Sir Keir after an audit by Baroness Louise Casey found children had been failed by the systems in place to protect them.

On Wednesday, Sir Keir said Baroness Casey would be working in support of the inquiry.

Claims about poor treatment of survivors

Ms Reynolds said survivors were “kept in the dark” and “treated with contempt and ignored” when they asked about Home Office meetings and decisions. She said it was made clear that “speaking openly would jeopardise our place on the panel”.

She told Sky News that victims were “gaslit” and “manipulated” during the process and they had “very little faith in authorities and systems”.

Similarly, Ms Goddard claimed a “toxic, fearful environment” had been created for survivors on the panel, with “condescending and controlling language” used towards them.

Safeguarding Minister Jess Phillips has said she “regrets” resignations from the inquiry and that it was “always sad when victims feel that they can’t take part in a process”.

Safeguarding minister Jess Phillips has faced calls to resign. Pic: PA
Image:
Safeguarding minister Jess Phillips has faced calls to resign. Pic: PA

On Wednesday, Sir Keir said: “I respect the views of all the survivors, and there are different views, I accept that.”

He added that the door was open for people to return to the inquiry panel if they wished.

Fears of ‘diluted’ inquiry

The survivors say they fear the inquiry could be diluted, suggesting the Home Office could broaden its scope beyond group-based sexual abuse and push for it to have a regional focus rather than being truly national.

Ms Goddard said the survivors had “repeatedly faced suggestions from officials to expand this inquiry” and that it risked being “watered down”.

Ms Reynolds said the “final turning point” in her decision to quit the panel was the “push to widen the remit of the National Inquiry in ways that downplay the racial and religious motivations behind our abuse”.

Ms Phillips said allegations that the inquiry is being diluted or intentionally delayed were “false” and that it would “remain laser-focused on grooming gangs”.

Read more from Sky News:
Phillips slams ‘idiot’ councils for not seeing grooming problem
Leading candidates to chair grooming gangs inquiry revealed

Ms Goddard claimed this amounted to the minister calling her “a liar” and said she should apologise and resign.

Ms Reynolds also said she believed Ms Phillips was “unfit for the role”.

During PMQs on Wednesday, Sir Keir defended the safeguarding minister, saying she and Baroness Casey were the “right people” to take the inquiry forward.

He insisted the inquiry “is not and will never be watered down” and that “its scope will not change”.

“It will examine the ethnicity and religion of the offenders, and we will find the right person to chair the inquiry,” he said.

‘They should start again’

The father of a grooming gang victim says the government “should start again” with the national inquiry.

Marlon West, whose daughter Scarlett was a victim of sexual exploitation in Manchester, told Sky News that public “faith” has been “lost”.

He described Ms Phillips in parliament this week as “unprofessional” and “defensive rather than listening to what survivors are saying.”

“I doubt she will resign but she has lost any kind of faith from the public, and more importantly with survivors and families.

He wants to see an inquiry with family members included alongside survivors on the panel.

“Not that I want to go on it, if I’m honest,” he said, “but it’s the families who are dealing with the services, not so much the survivors.

“It’s really important that they get family perspective. I think they should start again.”

Scarlett and her dad Marlon
Image:
Scarlett and her dad Marlon

Government denies ‘watered down’ approach

Home Secretary Shabana Mahmood responded to the resignations saying the scope of the inquiry “will not change” and that it will leave “no hiding place” for those involved in the scandal.

In an article for The Times, she vowed the probe “will never be watered down on my watch” – and said it will focus on how “some of the most vulnerable people in this country” were abused “at the hands of predatory monsters”.

The home secretary also insisted the inquiry will be “robust and rigorous” – with the power to compel witnesses, and examine the ethnicity and religion of the offenders.

Speaking to Times Radio on Wednesday, Ms Goddard said the Home Secretary’s statement was “reassuring” but reiterated that Ms Phillips should resign.

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Open banking will keep America at the forefront of financial innovation

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Open banking will keep America at the forefront of financial innovation

Open banking will keep America at the forefront of financial innovation

Open banking facilitates access to rural financial services and digital asset integration, but traditional banks pose potential restrictions.

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Prediction markets hit new high as Polymarket enters Sam Altman’s World

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Prediction markets hit new high as Polymarket enters Sam Altman’s World

Prediction markets hit new high as Polymarket enters Sam Altman’s World

World’s Polymarket Mini App integration came amid prediction markets surging past 2024 records, with $2 billion in weekly trading volumes.

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