Connect with us

Published

on

Controversial left-wing firebrand George Galloway has won the Rochdale by-election.

The former Labour MP and Celebrity Big Brother contestant, who was standing for the Workers Party of Britain, won 12,335 votes, a majority of 5,697.

Independent candidate David Anthony Tully came in second with 6,638 votes, followed by Conservative runner Paul Ellison with 3,731.

Labour had been expected to win the seat until its campaign was thrown into disarray by leaked recordings of their candidate Azhar Ali making alleged antisemitic comments, obtained by the Daily Mail.

The party withdrew its support from Mr Ali, but by this time it was too late to remove his name from the ballot paper.

Mr Galloway campaigned heavily on the Palestinian cause in Gaza, aiming to use the issue to mobilise Muslim voters in Rochdale.

Rival candidate Simon Danczuk, representing Reform UK, accused Mr Galloway of being divisive and said he would be the “MP for Gaza” rather than the Greater Manchester town.

More on George Galloway

Mr Danczuk himself previously represented the seat as a Labour MP but was barred from standing for the party in 2017 after apologising for “inappropriate” text messages sent to a 17-year-old girl.

Guy Otten, the Green Party candidate, also had party support withdrawn over comments made on social media but his name still appeared on the ballot paper.

Pic: PA
Image:
George Galloway. Pic: PA

Rochdale is one of the most deprived towns in England and has been the subject of grooming gang scandals in recent years, with a major report in January concluding that young girls were left “at the mercy” of paedophiles due to failings by senior police and council bosses.

Residents in the constituency likened the by-election to a “pantomime” and told Sky News they felt there were no credible candidates for what they called “the forgotten corner of England”.

The contest was triggered by the death of Labour stalwart Sir Tony Lloyd, who passed away in January following a battle with leukaemia.

The campaign was expected to be relatively straightforward for Labour until it emerged Mr Ali had suggested Israel was complicit in the massacre of its own people in the Hamas attacks on 7 October last year.

He apologised for the remarks, but further reports emerged that he had blamed “people in the media from certain Jewish quarters” for the suspension of a pro-Palestinian MP – prompting Labour to withdraw support for him.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the fullest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.

Continue Reading

Politics

Pound falls sharply and government gilt interest rates up after major budget tax rises

Published

on

By

Pound falls sharply and government gilt interest rates up after major budget tax rises

The pound has fallen sharply after the chancellor announced the biggest tax rises in a generation.

Over the last three days, sterling has dropped by 1.2% (in trade weighted terms) – the biggest fall in 18 months.

Between around 1.30pm and 5.30pm today, versus the dollar, it dropped from about 129.9c to the pound to about 128.6c. In the same period, against the euro, it went from 119.3c to the pound to about 118.4c.

In addition, yields for 10-year UK bonds – the cost or interest rate charged for long-term government borrowing – have gone past 4.5% for the first time in a year.

Ed Conway, Sky News’s economics and data editor, said those yields are “pretty much halfway towards the danger zone” – a zone identified by the Office for Budget Responsibility (OBR).

However, he said other European bonds had risen, too. “But the UK does seem to be moving faster than most of the others,” he added.

While cautioning that the budget is still very new, Conway said the “upshot” is that Rachel Reeves’s “room for manoeuvre” is already diminishing “because of market moves”.

Markets are reacting in “quite a violent way”, Conway said.

“It’s really unusual to see this after a budget, and that will have a bearing on how much this government will be able to afford in the future,” he added.

Please use Chrome browser for a more accessible video player

‘Raising taxes was not an easy decision’

A sudden rise in the yields of 10-year UK bonds followed Liz Truss’s disastrous “mini-budget” of September 2022, which led to a surge in the cost of borrowing for ordinary consumers, while the pound slumped to a 37-year low against the dollar.

It is “certainly not like that at the moment”, Conway said.

Nonetheless, market movements will be “enough to really concern people at the Treasury”, he added, “because it suggests that a lot of traders are looking at how much money this government is borrowing, and they’re saying: ‘Hang on, maybe we’re going to charge you more’.”

Please use Chrome browser for a more accessible video player

The pound has weakened and gilt yields – the cost of borrowing by the UK government – has increased in response to the budget, which saw Rachel Reeves introduce the biggest tax hike in a generation.

While Conway said it does not feel like a “crisis point”, he said the “calculus for this government” may be changing.

Jack Meaning, UK chief economist at Barclays, said market reaction was “materially different” to what happened in 2022.

Bond yields since Ms Reeves’s budget are up by about 0.3%, while in 2022 the rise was about 1.5%, he said.

Please use Chrome browser for a more accessible video player

Reeves acting like ‘compulsive liar’

The conversation Barclays is having with its customers is also different to that in 2022, Mr Meaning added.

At that time, people were wondering whether a “big crisis point” had been reached.

This time, he said the focus is on comments from the OBR about a potential rise in inflation, and the potential knock-on effect as the Bank of England makes decisions on interest rates in the next few months.

Read more:
Chancellor defends £40bn tax rises
Is the farmers’ inheritance tax the new pasty tax?

The prime minister’s official spokesperson refused to talk about bond prices.

“We don’t comment on market movements,” they said.

“The chancellor has been very clear that first and foremost, this budget has been about restoring fiscal stability, and she’s outlined two new robust fiscal rules, which put public finances on a sustainable path.”

Continue Reading

Politics

Budget 2024: Chancellor Rachel Reeves defends £40bn tax rises – ‘everything has to be paid for’

Published

on

By

Budget 2024: Chancellor Rachel Reeves defends £40bn tax rises - 'everything has to be paid for'

Rachel Reeves has defended raising taxes by the highest amount since 1993 as she said “everything has to be paid for”.

The chancellor announced £40bn worth of tax rises in Wednesday’s budget, with the lion’s share coming from a £25bn increase in employers’ National Insurance contributions.

She told Sky News’ Breakfast With Kay Burley that, unlike the previous Conservative government, she has included everything ministers will spend in their forecast, including £11.8bn compensation for victims of the infected blood scandal and £1.8bn for victims of the Post Office accounting scandal.

Politics latest: Hunt to step down from shadow cabinet

Ms Reeves insisted the tax rises would “fix the foundations and wipe the slate clean” and that this would be a one-off budget.

She added: “As a result of what we’ve done, we’re not going to have to come back and ever do a budget like this again, because we’ve brought everything out into the open.”

The chancellor also admitted growth “is largely unchanged” in the next five years, as revealed by the Office for Budget Responsibility’s (OBR) report on the budget.

But she said that is because she is looking at the economy in the long-term.

She said: “For the first time, the OBR are now looking at economic growth over a longer time frame.

“And that’s really important because often politicians make short-term decisions rather than things that are in the long term interests of the country.”

Please use Chrome browser for a more accessible video player

‘Raising taxes was not an easy decision’

Ms Reeves said she had to make the tax rises she did, despite promising not to raise taxes beyond Labour’s manifesto, because of “the circumstances that I inherited” from the Conservatives as she repeated they left a £22bn black hole.

“I could have swept that under the carpet and pretended it didn’t exist, or try and raise a bit of money this year and a bit more next year,” she said.

“I didn’t want to do that.

“I wanted to be open and honest, to wipe the slate clean, to put our public finances on a stable trajectory, to make sure that our NHS is properly funded so we can bring down those huge waiting lists.”

Read more:
Reeves promised to be the iron chancellor – but her first budget brings dramatic change

Chancellor’s hefty tax and spending plans are a huge gamble

Please use Chrome browser for a more accessible video player

UK’s economic growth forecast

Ms Reeves’ predecessor, the Conservative Party’s Jeremy Hunt, said Wednesday was a “bad day for trust in British politics” and said it will mean “lower pay, lower living standards, higher inflation, higher mortgages” for ordinary families.

He told Sky News: “Because 30 times this year before the election, the chancellor said she had no plans to increase tax outside of what was explicitly written in the Labour manifesto.

“And we had the biggest tax raising budget in British history.”

The shadow chancellor said a Conservative budget would have taken “the harder path” by cutting the number of people on benefits to 2019 levels to fund public services, which he said would release £34bn a year.

He added he does not think “anyone actually believes this £22bn number… but she didn’t increase taxes by £22bn, she increased them by £40bn”.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

“This was not about her legacy. This was a choice,” he added.

“This was the budget that she wanted to do all along. And it’s a legitimate choice. It’s one I disagree with. But if she’d wanted to do that, she should have told us before the election we could have had the debate.”

Continue Reading

Politics

School smartphone ban will not become law after MP drops proposal, Sky News understands

Published

on

By

School smartphone ban will not become law after MP drops proposal, Sky News understands

Plans to ban smartphones in schools have been dropped after the government refused to support a change in the law, Sky News understands.

Josh MacAlister, the Labour MP for Whitehaven and Workington, put forward the proposal earlier this month to stop children “doom-scrolling” – the act of spending excessive amounts of time online consuming negative news or social media content.

However, upon revealing the details of his Safer Phones Bill, Number 10 immediately indicated it could not support the measure on the grounds that headteachers already have the power to ban phones – although it is not upheld in law.

It is understood Mr MacAlister has now dropped this element of his bill in the hope the government will support its other aspects.

Budget latest: Labour playing ‘silly games’, says IFS

Mr MacAlister’s bill, which received broad support from cross-party MPs, education unions and charities, also calls for the age of “internet adulthood” – the minimum age to create social media profiles and email accounts – to be raised from 13 to 16.

It also wants to strengthen the powers of the regulator Ofcom to protect children from apps that are designed to be addictive and to commit the government to review further regulation if needed of the design, supply, marketing and use of mobile phones by children under 16.

More on Education

Although the government indicated it could not back the phones ban, there has been some confusion on its overall position on the bill after some cabinet ministers, including Health Secretary Wes Streeting, signalled their support.

“Given the impact of smartphone use and addiction on the mental health of children and young people and the concerns from parents, this is a really timely debate,” he posted on X.

Speaking to Sky News earlier this month, Mr MacAlister, who chaired an independent review of children’s social care for the former government, said there was a “huge public health problem” with children around the world having increasing levels of mental health problems, issues with sleep and being impacted by phones in school.

“I’m only interested in one thing, which is making sure we can change the law to protect children and reduce screen time and get them back to having a healthier childhood,” he said.

“Parents are saying they’re facing an impossible choice between either keeping their kids off smartphones and ostracising them, or letting children get on these phones and seeing all the harmful effects that it can cause.

Labour MP Josh MacAlister is calling for a ban on smartphones in schools
Image:
Labour MP Josh MacAlister

“And we need to shape some collective rules that help parents and teachers make better choices for children.

“Children themselves are recognising the harm that comes with all of the doom-scrolling.”

Current guidance to schools in England intended to stop the use of mobile phones during the school day is non-statutory, and was introduced earlier this year by the previous Tory government.

Read more from Sky News:
Schools which ban mobile phones ‘get better GCSE grades’
Number of ‘severely absent’ school children 160% higher than pre-pandemic

Sky News has approached the government for comment. Earlier this month, a government spokesperson said: “We all want to find the best way of ensuring children are kept safe while also benefiting from the latest digital technology.

“The Online Safety Act will introduce strong safeguards for children, preventing them from accessing harmful and age-inappropriate content. This will include requiring companies to check the age of children so that parents can have peace of mind about the safety of their children online.

“The vast majority of schools already handle the use of mobile phones effectively, including with bans. Legislating for an outright ban would simply remove the autonomy from school leaders who know their pupils and their communities best.”

Mr MacAlister’s bill is due to have its second reading – the first opportunity MPs have to debate the contents of a bill – in March.

Continue Reading

Trending