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Transport Secretary Mark Harper has said he will look at plans to revive the northern section of HS2 through private investment with “an open mind”.

Speaking at a Conservative Home conference in central London, the minister said he and Rishi Sunak had given a “commitment” to the Tory mayor of the West Midlands, Andy Street, to examine any proposal he brought forward – after the government decided last year to scrap the leg between Birmingham and Manchester.

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Mr Harper confirmed that Mr Street and Labour’s mayor of Greater Manchester, Andy Burnham, had now commissioned a study into how it could be done through partnerships with business, following reports over the weekend.

And while the transport secretary said he was “somewhat sceptical” about whether the private sector could take on the project without cash from the public purse, he promised to meet the two regional leaders, adding: “I will listen to them.”

The prime minister announced his plan to axe the northern leg of HS2 during the Conservative Party conference in 2023, saying the “economic case” for the line had “massively weakened with the changes to business travel post-COVID”.

But he was met with fierce opposition from both Mr Street and Mr Burnham, with the latter accusing the government of treating people in the north of England as “second-class citizens”.

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Transport secretary Mark Harper
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Transport secretary Mark Harper speaking in central London on Tuesday

Rail minister Huw Merriman was also at Tuesday’s event, and asked by Sky News if he was as “openminded” to the private investment plan as Mr Harper, he said: “As a Conservative, I always welcome private sector investment in the railway.”

However, in what appeared to be a warning to the mayors, he added: “Our plan is clear. They might have something else they want to actually bring forward, we will see what it is, that’s their proposal.

“Our plan is we are not taking HS2 further north. Eventually, we will then look to sell that land off, so we’ll need to make sure… there is no overlap on what other people [want] to do themselves.

“That is our plan, then we are going to invest in all these projects across the North and the Midlands that I just think ultimately will deliver more regional growth to every part of the country that needs it.”

Mayor of the West Midlands Andy Street speaks to the media about HS2 during the Conservative Party annual conference at the Manchester Central convention complex. Picture date: Monday October 2, 2023.
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Mayor of the West Midlands Andy Street opposed the cancelling of HS2 during the Conservative Party conference

When Mr Sunak made the announcement to scrap HS2 in October, he insisted “every single penny” of the £36bn being saved would be spent on “hundreds of new transport projects in the North and the Midlands, and across the country” – launching his flagship Network North project to collate the schemes.

But rather than just public transport plans, Mr Harper today confirmed £8.3bn of those savings would be focused on road improvement schemes.

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Asked by Sky News if it was right to divert HS2 cash from rail projects to roads, Mr Harper said: “We are rebalancing a little where we spend the money.

“Sixty percent of the journeys people make are by car, 4% of journeys that are made are by bus and 2% of journeys that are made are by train.

“So I think spending a third of the total transport budget on one train line was disproportionate. So what we are doing is rebalancing that funding.”

Pushed again on how it would encourage more people back on to public transport – a goal Mr Harper reiterated today – he told Sky News: “We are still spending a significant amount of the £36bn we have saved from HS2 on rail but we are spending some of it on improving our roads, enabling people to use buses.

“I think that is the right balance – more projects delivering more quickly for more people across the entire country.

“I just think we have rebalanced the transport spending better – still supporting public transport, still encouraging active travel, but also recognising most people use roads and we should put a significant investment into that as well.”

Rail minister Mr Merriman backed the transport secretary – despite earlier telling the conference rail was the “green, clean way to get around” and younger people were not taking up driving licences in the same numbers “because they see the train as their mode of transport”.

Rail minister Huw Merriman
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Rail minister Huw Merriman also attended the Conservative Home transport conference

He told Sky News: “We need our roads. And the fact is, if I cycle on the roads at the moment – or even driving the couple of miles to my station – then I am afraid to say the potholes are so vast.

“It is a series of ‘s’ bends and it is really dangerous because people are just avoiding them.

“I absolutely understand the need to take some of that money and put it across [roads]. But the important thing is it is all being spent on transport and everything should feed into each other as a system.”

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Building societies step up protest against Reeves’s cash ISA reforms

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Building societies step up protest against Reeves's cash ISA reforms

Building society chiefs will this week intensify their protests against the chancellor’s plans to cut cash ISA limits by warning that it will push up borrowing costs for homeowners and businesses.

Sky News has obtained the draft of a letter being circulated by the Building Societies Association (BSA) among its members which will demand that Rachel Reeves abandons a proposed move to slash savers’ annual cash ISA allowance from the existing £20,000 threshold.

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The draft letter, which is expected to be published this week, warns the chancellor that her decision would deter savers, disrupt Labour’s housebuilding ambitions and potentially present an obstacle to economic growth by triggering higher funding costs.

“Cash ISAs are a cornerstone of personal savings for millions across the UK, helping people from all walks of life to build financial resilience and achieve their savings goals,” the draft letter said.

“Beyond their personal benefits, Cash ISAs play a vital role in the broader economy.

“The funds deposited in these accounts support lending, helping to keep mortgages and loans affordable and accessible.

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“Cutting Cash ISA limits would make this funding more scarce which would have the knock-on effect of making loans to households and businesses more expensive and harder to come by.

“This would undermine efforts to stimulate economic growth, including the government’s commitment to delivering 1.5 million new homes.

“Cutting the Cash ISA limit would send a discouraging message to savers, who are sensibly trying to plan for the future and undermine a product that has stood the test of time.”

The chancellor is reportedly preparing to announce a review of cash ISA limits as part of her Mansion House speech next week.

While individual building society bosses have come out publicly to express their opposition to the move, the BSA letter is likely to be viewed with concern by Treasury officials.

The Nationwide is by far Britain’s biggest building society, with the likes of the Coventry, Yorkshire and Skipton also ranking among the sector’s largest players.

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In the draft letter, which is likely to be signed by dozens of building society bosses, the BSA said the chancellor’s proposals “would make the whole ISA regime more complex and make it harder for people to transfer money between cash and investments”.

“Restricting Cash ISAs won’t encourage people to invest, as it won’t suddenly change their appetite to take on risk,” it said.

“We know that barriers to investing are primarily behavioural, therefore building confidence and awareness are far more important.”

The BSA called on Ms Reeves to back “a long-term consumer awareness and information campaign to educate people about the benefits of investing, alongside maintaining strong support for saving”.

“We therefore urge you to affirm your support for Cash ISAs by maintaining the current £20,000 limit.

“Preserving this threshold will enable households to continue building financial security while supporting broader economic stability and growth.”

The BSA declined to comment on Monday on the leaked letter, although one source said the final version was subject to revision.

The Treasury has so far refused to comment on its plans.

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Govt declines to rule out wealth tax after ex-Labour leader Lord Kinnock calls for wealth tax

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Govt declines to rule out wealth tax after ex-Labour leader Lord Kinnock calls for wealth tax

The government has declined to rule out a “wealth tax” after former Labour leader Neil Kinnock called for one to help the UK’s dwindling finances.

Lord Kinnock, who was leader from 1983 to 1992, told Sky News’ Sunday Morning With Trevor Phillips that imposing a 2% tax on assets valued above £10 million would bring in up to £11 billion a year.

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On Monday, Sir Keir Starmer’s spokesperson would not say if the government will or will not bring in a specific tax for the wealthiest.

Asked multiple times if the government will do so, he said: “The government is committed to the wealthiest in society paying their share in tax.

“The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”

He added the government has closed loopholes for non-doms, placed taxes on private jets and said the 1% wealthiest people in the UK pay one third of taxes.

Chancellor Rachel Reeves earlier this year insisted she would not impose a wealth tax in her autumn budget, something she also said in 2023 ahead of Labour winning the election last year.

Asked if her position has changed, Sir Keir’s spokesman referred back to her previous comments and said: “The government position is what I have said it is.”

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The previous day, Lord Kinnock told Sky News: “It’s not going to pay the bills, but that kind of levy does two things.

“One is to secure resources, which is very important in revenues.

“But the second thing it does is to say to the country, ‘we are the government of equity’.

“This is a country which is very substantially fed up with the fact that whatever happens in the world, whatever happens in the UK, the same interests come out on top unscathed all the time while everybody else is paying more for getting services.

“Now, I think that a gesture or a substantial gesture in the direction of equity fairness would make a big difference.”

The son of a coal miner, who became a member of the House of Lords in 2005, the Labour peer said asset values have “gone through the roof” in the past 20 years while economies and incomes have stagnated in real terms.

In reference to Chancellor Rachel Reeves refusing to change her fiscal rules, he said the government is giving the appearance it is “bogged down by their own imposed limitations”, which he said is “not actually the accurate picture”.

A wealth tax would help the government get out of that situation and would be backed by the “great majority of the general public”, he added.

His comments came after a bruising week for Prime Minister Sir Keir Starmer, who had to heavily water down a welfare bill meant to save £5.5bn after dozens of Labour MPs threatened to vote against it.

With those savings lost – and a previous U-turn on cutting winter fuel payments also reducing savings – the chancellor’s £9.9bn fiscal headroom has quickly dwindled.

In a hint of what could come, government minister Stephen Morgan told Wilfred Frost on Sky News Breakfast: “I hold dear the Labour values of making sure those that have the broadest shoulders pay, pay more tax.

“I think that’s absolutely right.”

He added that the government has already put a tax on private jets and on the profits of energy companies.

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UK sentences 2 men to prison over $2M cold-calling crypto scam

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UK sentences 2 men to prison over M cold-calling crypto scam

UK sentences 2 men to prison over M cold-calling crypto scam

Two men who admitted to running a crypto scheme that defrauded 65 investors have both been sentenced to over five years in prison.

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