Connect with us

Published

on

The week of the Conservative Party conference began with a grim warning about taxes.

Now at their highest level since records began 70 years ago, taxes are also unlikely to come down anytime soon, according to the Institute for Fiscal Studies.

Where does this leave the Conservatives, the party which preaches lower taxes but has presided over a record rise since 2019?

Tory conference live: Emergency cabinet meeting considered for HS2

This party conference is, in the words of one former minister I spoke to, “the survival conference” – a year on from Liz Truss announcing a series of unfunded tax cuts which saw the bond markets tank and her premiership unravel.

Accordingly, Rishi Sunak has staunchly refused to commit to any tax cuts at this stage, saying the best tax cut he can give people is getting inflation under control.

The chancellor has gone further, telling a newspaper it will be “virtually impossible” to deliver tax cuts until the economic outlook improves.

More on Conservatives

But this is where economic realities collide with politics – an election year in which the Conservatives are well behind and the party restive for a positive message.

Please use Chrome browser for a more accessible video player

Political forecast for Tory conference

Michael Gove expressed the views of many when he told Sunday Morning with Trevor Phillips that he hoped for tax cuts before the general election.

Senior figures on the right went further, with Sir Jacob Rees-Mogg telling Sky News the time for signalling was over, calling for action in the autumn statement in November.

“We don’t need signals, we need action,” he said. “I think the autumn statement is a time to say, this is what we are doing on this particular tax. I would be in favour of reversing the increasing corporation tax, as Liz Truss is.

“I’d be in favour of abolishing death duties, which I think is eminently affordable. But we need to do things, not promise them.”

Please use Chrome browser for a more accessible video player

Government divided over tax

Read more:
Will just the rich benefit from inheritance tax cut?
Inheritance tax ‘punitive and unfair’- minister

Speculation has been rife that the prime minister is planning a pre-election giveaway on inheritance tax.

Tory sources point out it is widely unpopular even though only 4% of estates are liable for it.

There are also spending cuts under consideration, with the High Speed 2 rail line, winter fuel payments for richer pensioners and some benefits being looked at for potential savings.

But after a decade of austerity, and the realities of an ageing populations and pressures on the health service, savings will not be easy or popular.

Please use Chrome browser for a more accessible video player

Sunday Morning with Trevor Phillips

Jeremy Hunt will today insist sunlit uplands are within reach, saying the British economy has grown faster since 2010 than others in Europe.

The party will also confirm it will accept recommendations to raise the national living wage to at least £11 an hour in 2024 – meeting a manifesto commitment to raise the wages of the lowest paid to two-thirds of the median earnings.

Whether this will make up for increases in rent, energy bills, food and childcare costs will be one of the questions voters weigh up at the next election.

Ms Truss will be appearing in Manchester, at a rally for economic growth in which she will call for corporation tax to be cut back – an aim Mr Hunt used to strongly support. How much support she receives there from activists will be closely watched.

Click to subscribe to Politics at Jack and Sam’s wherever you get your podcasts

Tories know from recent experience the perils of promising tax cuts which don’t add up.

They also have a party desperate for a voter-friendly message to end the gloom – and fear the chancellor’s speech later may not provide it.

Continue Reading

Politics

Montana’s Bitcoin reserve bill rejected by House lawmakers

Published

on

By

Montana’s Bitcoin reserve bill rejected by House lawmakers

Montana’s House of Representatives voted 41-59 against a bill that could have seen the US state establish a Bitcoin reserve.

Continue Reading

Politics

Starmer says ‘US is right’ about UK and Europe needing to take more responsibility for defence

Published

on

By

Starmer says 'US is right' about UK and Europe needing to take more responsibility for defence

Sir Keir Starmer has said the United States “is right” about the UK and Europe needing to take more responsibility for defence and security.

The prime minister, speaking at the Scottish Labour conference in Glasgow on Sunday, said he is clear Britain “will take a leading responsibility” in protecting the continent.

“Instability in Europe always washes up on our shores,” he said.

“And this is a generational moment. I’ve been saying for some time that we Europeans – including the United Kingdom – have to do more for our defence and security. The US is right about that.”

He added “we can’t cling to the comforts of the past” as it is “time to take responsibility for our security”.

Politics latest: Starmer’s stinging rebuke of Reform

Donald Trump sparked an emergency meeting of European leaders this week after he said European NATO members should spend more on defence, while the US should spend less.

Please use Chrome browser for a more accessible video player

Will Trump and Starmer have a ‘Love Actually’ moment?

Sir Keir has said he will set out a path for the UK to spend 2.5% of GDP on defence, up from the current 2.3%, but has not indicated when that will be.

It is believed he may announce the details when he visits Mr Trump in Washington DC on Thursday, bringing forward the announcement that was expected in the spring when a defence spending review is published.

The prime minister reiterated the UK will “play our role” if required in Ukraine following a peace agreement after he earlier this week said the UK would send troops to be part of a peacekeeping force.

Pic: AP
Image:
Sir Keir will meet Donald Trump in the White House on Thursday. Pic: AP

However, his comments caused a row with Germany and Italy who said it was premature to commit to boots on the ground, although France agreed with the UK.

Sir Keir said: “As we enter a new phase in this conflict, we must now deepen our solidarity even further.”

He added: “There can be no discussion about Ukraine without Ukraine.

“And the people of Ukraine must have long-term security.”

Read more:
Starmer tells Zelenskyy this is ‘significant moment’ for European security
Sombre Starmer and Europe confront emerging new world order

This week has seen US officials meet their Russian counterparts in Saudi Arabia to discuss Ukraine – which has been met with indignation by Ukrainian President Volodymyr Zelenskyy as none of his team were invited.

No Europeans were invited either, sparking concern the US is pandering to Vladimir Putin.

Sir Keir has promised Mr Zelenskyy he will make the case for safeguarding Ukraine’s sovereignty when he meets with Mr Trump, who has called the Ukrainian president a dictator.

Mr Trump also said Sir Keir and French President Emmanuel Macron, who will visit the White House too this week, “haven’t done anything” to end the war.

Continue Reading

Politics

Starmer announces £200m for Grangemouth

Published

on

By

Starmer announces £200m for Grangemouth

The prime minister has announced £200m for Grangemouth ahead of the closure of Scotland’s last oil refinery.

Sir Keir Starmer, speaking at the Scottish Labour conference on Sunday, said the cash would come from the National Wealth Fund for an “investment in Scotland’s industrial future”.

Grangemouth oil refinery, on the banks of the Firth of Forth, is set to cease operation this summer and transition into an import terminal, making 400 workers redundant.

Politics latest: Starmer says US ‘is right’ and Europe needs to take more defence responsibility

Sir Keir said: “We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals, team up with business to get new industries off the ground and to attract private investors into the partnership we need.

“We will allocate £200m from the National Wealth Fund for investment in Grangemouth.”

The money comes on top of a £100m “growth plan” already in place for the area.

Scotland’s first minister, the SNP’s John Swinney, welcomed the announcement and said it is “important that the Scottish and UK governments work together on securing the future for the workforce”.

A general view of the Grangemouth Oil Refinery, on the Firth of Forth, near Falkirk, Scotland. PRESS ASSOCIATION Photo. Picture date: Friday December 2, 2016. Photo credit should read: Jane Barlow/PA Wire
Image:
The plant will become an import terminal. Pic: Jane Barlow/PA

Sir Keir said the new investment will be a partnership with the private sector, and he is expecting three times the amount the government is putting in to come from private investors.

The prime minister said he believes the transition to clean energy is a “golden opportunity for Britain, especially for Scotland”, and is essential for national security as it “gets Putin’s boots off our throat”.

However, he said oil and gas are also “vital for our security” so will be “part of the future of Scotland for decades to come”.

As well as the investment in Grangemouth’s future, Sir Keir said every person made redundant will get 18 months full pay and a skills and training offer “backed up with up to £10m”.

Any business in Grangemouth that takes on those workers will get National Insurance relief, he also said.

Read more:
Starmer’s challenge is to see if usual rules of special relationship still apply

Low paid jobs at risk from Labour’s tax increases on businesses

Petroineos, which owns Grangemouth, announced last September it was to close Grangemouth by this summer because it was unable to compete with sites in Asia, Africa and the Middle East.

The refinery is understood to have been losing about £395,000 a day when it made the announcement and was on course to lose about £153m this year.

The company said the decision would “safeguard fuel supply for Scotland” by converting the site into a terminal able to import petrol, diesel, aviation fuel and kerosene into Scotland.

However, it said that would only need a workforce of fewer than 100 employees.

Petroineos announced its intention to close the plant in November 2023 but union leaders had hoped it could remain open for longer to provide time for a green alternative to be established there.

Continue Reading

Trending