Connect with us

Published

on

Rishi Sunak has insisted national debt is “on schedule” to fall – despite one of his ministers coming under fire for making the same claim.

Laura Trott, the chief secretary to the Treasury, was accused of not knowing the “basic facts of her job” after she repeatedly claimed debt is falling as a proportion of gross domestic product (GDP).

Her claims came despite the latest official projections which suggest there will be an increase in debt over the next five years.

The Office for Budget Responsibility (OBR) said in November that debt is forecast to climb as a percentage of national income from 89% in 2023/24 to 92.8% in 2028/29.

Reducing debt is one of the five pledges Mr Sunak made to the public at the start of 2023, along with cutting NHS waiting lists and “stopping the boats”.

Ms Trott was presented with the OBR forecast during an interview on BBC Radio 4’s PM programme – and responded by saying she had “different figures”.

She said the prime minister’s central pledge was that “debt needs to be falling over the five-year fiscal forecast as a percentage of GDP, which it is”.

Politics latest: PM dismisses ‘clearly ridiculous’ Vladimir Putin claim

When challenged, Ms Trott appeared to say quietly “I’m not sure” – to which presenter Evan Davis said: “This is really basic… I’m amazed that you don’t know that debt is rising.”

The minister replied: “I think I need to have the figures. I’ve got different figures which… I think we just need to… yeah.”

LAURA TROTT
Image:
Treasury minister Laura Trott has been accused of not knowing the ‘basic facts’ of her job


Speaking to broadcasters on Friday, the prime minister appeared to defend Ms Trott.

Asked how the public could have confidence in the economy following the minister’s remarks, Mr Sunak said: “Debt is on schedule to fall as measured by the independent Office of Budget Responsibility, which they’ve affirmed at the last autumn statement that the chancellor gave.

“But our plan for the economy is working – inflation has come down from 11% to 4%. Mortgage rates are starting to come down, wages are rising and because economic conditions are now improving, we’ve been able to start cutting people’s taxes.”

‘It’s terrifying these people are in charge’

The OBR forecast Mr Davis cited says debt will start to fall in the latter half of this decade, but it will still be higher in five years than it is currently.

The projection is that debt will rise from 89% of GDP now to 93.2% in 2026/27. It will then decline in the final two years to 92.8% of GDP by 2028/29.

This was highlighted by a Downing Street spokesperson when contacted for comment. They said it meant the government was “on track to meet our commitment to have debt falling in five years’ time”.

Please use Chrome browser for a more accessible video player

What is fiscal headroom?

Mr Sunak’s description of debt as being “on schedule” to fall is different to the language he has used in the past, when he claimed it had already been reduced.

The claim earned him a rebuke from the statistics watchdog, which said he may have caused “confusion” and “undermined trust in the government’s use of statistics”.

To measure debt, the government tends to use public sector net debt (PSND) excluding the Bank of England (BoE).

Public sector net debt on its own is forecast to drop by around 4% as a share of GDP over the next five years, but underlying debt, excluding the state bank, is set to rise by around 4% in the same period.

PSND, excluding the BoE, is forecast to drop slightly at the end of the five-year projection – from 93.2% in 2027/28 to 92.8% – but that is still higher than the 89% it is currently.

Read more:
Rishi Sunak set to struggle to meet key pledge as debt grows
Dentist PM visited to promote ‘recovery plan’ not taking NHS patients

Labour said it was “terrifying” that people like Ms Trott were in charge of the country’s finances.

The party‘s shadow chief secretary to the Treasury, Darren Jones, said: “The Tories have crashed the economy and doubled the national debt over the last decade.

“This evening we discover that Laura Trott, Jeremy Hunt’s number two, doesn’t even know the basic facts of her job.

“It’s terrifying to think these people are not just in charge of the country’s finances, but still think they can lecture anyone else.”

Continue Reading

Politics

5 countries where crypto is (surprisingly) tax-free in 2025

Published

on

By

5 countries where crypto is (surprisingly) tax-free in 2025

5 countries where crypto is (surprisingly) tax-free in 2025

Looking to live tax-free with crypto in 2025? These five countries, including the Cayman Islands, UAE and Germany, still offer legal, zero-tax treatment for cryptocurrencies.

Continue Reading

Politics

Children with special needs will ‘always’ have ‘legal right’ to support, education secretary says

Published

on

By

Children with special needs will 'always' have 'legal right' to support, education secretary says

The education secretary has said children with special needs will “always” have a legal right to additional support as she sought to quell a looming row over potential cuts.

The government is facing a potential repeat of the debacle over welfare reform due to suggestions it could scrap tailored plans for children and young people with special needs in the classroom.

Politics latest: Minister says ‘those with broadest shoulders should pay more tax’

Speaking in the Commons on Monday, Bridget Phillipson failed to rule out abolishing education, health and care plans (EHCPs) – legally-binding plans to ensure children and young people receive bespoke support in either mainstream or specialist schools.

Laura Trott, the shadow education secretary, said parents’ anxiety was “through the roof” following reports over the weekend that EHCPs could be scrapped.

She said parents “need and deserve answers” and asked: “Can she confirm that no parent or child will have their right to support reduced, replaced or removed as a result of her planned changes?”

Please use Chrome browser for a more accessible video player

Sophy’s thought on whether to scrap EHCPs

Ms Phillipson said SEND provision was a “serious and complex area” and that the government’s plans would be set out in a white paper that would be published later in the year.

More on Education

“I would say to all parents of children with SEND, there is no responsibility I take more seriously than our responsibility to some of the most vulnerable children in our country,” she said.

“We will ensure, as a government, that children get better access to more support, strengthened support, with a much sharper focus on early intervention.”

ECHPs are drawn up by local councils and are available to children and young people aged up to 25 who need more support than is provided by the Special Educational Needs and Disabilities (SEND) budget.

They identify educational, health and social needs and set out the additional support to meet those needs.

In total, there were 638,745 EHCPs in place in January 2025 – up 10.8% on the same point last year.

‘Rebel ready’

One Labour MP said they were concerned the government risked making the “same mistakes” over ECHPs as it did with the row over welfare, when it was eventually forced into a humiliating climbdown in the face of opposition by Labour MPs.

“The political risk is much higher even than with welfare, and I’m worried it’s being driven by a need to save money which it shouldn’t be,” they told Sky News.

“Some colleagues are rebel ready.”

The MP said the government should be “charting a transition from where we are now to where we need to be”, adding: “That may well be a future without ECHPs, because there is mainstream capacity – but that cannot be a removal of current provision.”

Later in the debate, Ms Phillipson said children with special educational needs and disabilities would “always” have a “legal right” to additional support as she accused a Conservative MP of attempting to “scare” parents.

“The guiding principle of any reform to the SEND system that we will set out will be about better support for children, strengthened support for children and improved support for children, both inside and outside of special schools,” she said.

Read more:
Government to ban ‘appalling’ non-disclosure agreements
Government declines to rule out wealth tax

“Improved inclusivity in mainstream schools, more specialist provision in mainstream schools, and absolutely drawing on the expertise of the specialist sector in creating the places where we need them, there will always be a legal right … to the additional support… that children with SEND need.”

Her words were echoed by schools minister Catherine McKinnell, who also did not rule out changing ECHPs.

She told the Politics Hub With Sophy Ridge that the government was “focused on reforming the whole system”.

“Children and families have been left in a system where they’ve had to fight for their child’s education, and that has to change,” she said.

She added that EHCPs have not necessarily “fixed the situation” for some children – but for others it’s “really important”.

Continue Reading

Politics

Government to ban ‘appalling’ non-disclosure agreements that silence victims of abuse at work

Published

on

By

Government to ban 'appalling' non-disclosure agreements that silence victims of abuse at work

Victims will no longer have to “suffer in silence”, the government has said, as it pledges to ban non-disclosure agreements (NDAs) designed to silence staff who’ve suffered harassment or discrimination.

Accusers of Harvey Weinstein, the former film producer and convicted sex offender, are among many in recent years who had to breach such agreements in order to speak out.

Labour has suggested an extra section in the Employment Rights Bill that would void NDAs that are intended to stop employees going public about harassment or discrimination.

The government said this would allow victims to come forward about their situation rather than remain “stuck in unwanted situations, through fear or desperation”.

Zelda Perkins, former assistant to Harvey Weinstein, led the calls for wrongful NDAs to be banned. Pic: Reuters
Image:
Zelda Perkins, former assistant to Harvey Weinstein, led the calls for wrongful NDAs to be banned. Pic: Reuters

Zelda Perkins, Weinstein’s former assistant and founder of Can’t Buy My Silence UK, said the changes would mark a “huge milestone” in combatting the “abuse of power”.

She added: “This victory belongs to the people who broke their NDAs, who risked everything to speak the truth when they were told they couldn’t. Without their courage, none of this would be happening.”

Deputy prime minister Angela Rayner said the government had “heard the calls from victims of harassment and discrimination” and was taking action to prevent people from having to “suffer in silence”.

More from UK

Please use Chrome browser for a more accessible video player

Weinstein found guilty of sex crime in retrial

An NDA is a broad term that describes any agreement that restricts what a signatory can say about something and was originally intended to protect commercially sensitive information.

Currently, a business can take an employee to court and seek compensation if they think a NDA has been broken – even if that person is a victim or witness of harassment or discrimination.

“Many high profile cases” have revealed NDAs are being manipulated to prevent people “speaking out about horrific experiences in the workplace”, the government said.

Announcing the amendments, employment minister Justin Madders said: “The misuse of NDAs to silence victims of harassment or discrimination is an appalling practice that this government has been determined to end.”

The bill is currently in the House of Lords, where it will be debated on 14 July, before going on to be discussed by MPs as well.

Continue Reading

Trending