Connect with us

Published

on

There may be months to go until the general election, but in both style and substance the long campaign has already begun – with both leaders zoning in on fruitful attack lines and ignoring inconvenient truths.

In his first Sunday morning interview of the year on Sky’s Sunday Morning with Trevor Phillips, Sir Keir Starmer told Wilfred Frost the prime minister should set a date for the vote now and accused him of vainly waiting to clock up two years in Number 10 before calling an election.

A couple of miles across town, in another TV studio, Rishi Sunak seemed unable to make it more than a few minutes without uttering his rival’s name and suggesting questions for his interviewer to put to the Labour leader.

As far as policy is concerned, the crossfire has centred on that traditionally decisive ballot box issue – the economy.

For Labour, a definite pivot is in motion on the party’s 2021 conference pledge to spend £28bn a year on green investment.

The Tories have started vigorously targeting this expensive promise to try to turn it into an example of what they see as Labour profligacy.

Sir Keir said today if Rishi Sunak wanted a fight between “energy independence versus stagnation” then he should “bring it on”.

It’s a fact learned the hard way by many a party leader that the fight you want to have in an election campaign isn’t always the fight you get.

That’s probably why Sir Keir also tried to shift the emphasis from the precise figure to the broader promise of decarbonising electricity by 2030.

Please use Chrome browser for a more accessible video player

‘I want the election asap’

Many doubt either of these pledges can actually be met.

But for the Opposition, it’s the big-ticket borrowing that risks the votes – so it’s that which is being polished up into a more politically palatable offer.

There’s a similar sense of reality denial around the discussion on tax.

Rishi Sunak gave his clearest indication yet that more tax cuts are on the way in the March budget with a further big offer to voters ahead of the election.

The price of government debt and levels of revenue being brought in by frozen allowances and thresholds mean this is probably feasible in the short term.

Read more:
Can the spring budget reverse Sunak’s electoral fortunes?
PM accused of ‘desperate’ inheritance tax briefing

But the picture is more complicated if you look further ahead.

The prime minister says curbing benefit spending and making the state more efficient is the only way to sustainably cut the tax burden.

To start with, economists will point out that more expenditure in this area goes on benefits for households where someone works and on pensions.

But there are broader pressures too.

Please use Chrome browser for a more accessible video player

Party leaders gear up for election

Given more money is set to go to areas like health, defence and education, overall spending levels for the years after the election look implausibly tight.

So much so that many conclude the long-term fiscal lookahead is quite simply a fiction designed to clear the way for pre-ballot tax giveaways.

Once again, the priority here appears to be votes.

The rest can be dealt with when the election is won – or, indeed, lost.

Continue Reading

Politics

Jingye and Whitehall officials hold talks over British Steel future

Published

on

By

Jingye and Whitehall officials hold talks over British Steel future

The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.

Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.

Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.

Money blog: €1 home goes on sale – but there are T&Cs

Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.

Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.

Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.

More on British Steel

British Steel has not yet been formally nationalised, although that remains a probable outcome.

Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.

Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.

Please use Chrome browser for a more accessible video player

Inside the UK’s last blast furnaces

Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.

News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.

Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.

Read more from Sky News:
Is Britain going bankrupt?
Public finances in ‘relatively vulnerable position’, OBR warns

Follow The World
Follow The World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.

“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”

Continue Reading

Politics

Ethereum corporate treasuries critical for the ecosystem: Joseph Lubin

Published

on

By

Ethereum corporate treasuries critical for the ecosystem: Joseph Lubin

Ethereum corporate treasuries critical for the ecosystem: Joseph Lubin

Ethereum co-founder Joseph Lubin said that corporate ETH treasuries are vital for driving ecosystem growth.

Continue Reading

Politics

South Korea plans to lift crypto venture business restrictions

Published

on

By

South Korea plans to lift crypto venture business restrictions

South Korea plans to lift crypto venture business restrictions

South Korea may lift restrictions on crypto firms, allowing them venture status and access to tax breaks, funding and regulatory benefits.

Continue Reading

Trending