Connect with us

Published

on

The economy could have crashed had the government not found savings by cutting winter fuel payments for pensioners, a minister has said.

Lucy Powell told Sunday Morning With Trevor Phillips that the loss of the benefit, which will now be means tested, was necessary because of a “£22bn blackhole” left behind by the Conservatives.

Politics Live: Labour ‘stands by’ national insurance pledge

Labour claim this is a worse deficit than they had expected, requiring them to make difficult choices.

Asked why pensioners had been targeted in the cuts – when public sector workers are in line for an above-inflation pay rise – Ms Powell said: “Finding savings in the current year that you are in is very difficult indeed.

“And why we had to do that was because if we didn’t, we would have seen the markets losing confidence, potentially a run on the pound, the economy crashing, and the people who pay the heaviest price for that are not you and me, Trevor, the people who pay the heaviest price when the economy crashes are the poorest in society.”

She added the public sector pay awards “were on the desks of ministers before the election, and they chose not to budget for them”.

More on Budget

She said this along with “nearly £7bn underfunding on the asylum system” had left a blackhole of £22bn.

Please use Chrome browser for a more accessible video player

Labour MP wants winter payment rethink

They knew they had these things on their desk, and they put their head in the sand, and they didn’t take the difficult decisions that they needed to take because they knew they were going to lose the election and it was going to fall to us to do,” Ms Powell said.

“And that’s why we’ve had to make some of these really difficult decisions around means testing the winter payment so that the poorest pensioners continue to receive it but some of the wealthiest pensioners won’t.

Read more from Sky News:
243-question form to get winter payment

Are you still eligible for the payment?

The Conservatives have denied covering up the extent of the shortfall in the nation’s finances and say Labour is using that as a “smokescreen” for cuts they had always planned.

Please use Chrome browser for a more accessible video player

Who will be hit by the Budget?

The Tories and Liberal Democrats are pushing for a Commons vote to block the winter fuel payments change when parliament returns from summer recess tomorrow. Some Labour MPs have voiced opposition to the measure too.

A packed legislative agenda is on the cards, with bills on nationalising rail, renters rights and regulating water companies expected to be among the priorities of the new government.

The first budget is set to be announced in October, which Prime Minister Sir Keir Starmer has previously warned will be “painful” – though he said those with the “broadest shoulders should bear the heavier burden”.

Ms Powell, the leader of the House of Commons, would not be drawn on what this could mean, saying she is not part of those discussions.

Inheritance tax, capital gains tax and fuel duty have all been mooted as possible taxes that could go up.

Ms Powell said Labour will “stand by” its election promise not to raise national insurance, VAT or income tax.

Referencing a song by Oasis, which Ms Powell was able to get tickets to, she said: “I’m afraid we do look back in anger at what the last government left to this government in the economic inheritance and now we’re faced with some really challenging choices.”

Continue Reading

Politics

Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Published

on

By

Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil ends crypto tax exemption, imposes 17.5% flat rate on gains

Brazil scraps crypto tax exemption for small traders, enforces flat 17.5% rate across all gains, including self-custody and offshore holdings.

Continue Reading

Politics

A scrambled G7 agenda as world leaders scramble to de-escalate the Israel-Iran conflict

Published

on

By

A scrambled G7 agenda as world leaders scramble to de-escalate the Israel-Iran conflict

The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.

Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.

Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.

But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.

Canadian Prime Minister Mark Carney is greeted by President Donald Trump as he arrives at the West Wing of the White House, Tuesday, May 6, 2025, in Washington. (AP Photo/Mark Schiefelbein)
Image:
Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP

Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.

All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.

Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.

More on G7 Summit

“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”

Prime Minister Sir Keir Starmer (right) is greeted by Prime Minister of Canada Mark Carney as he arrives at Rideau Cottage in Ottawa
Image:
Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7

But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.

Read more from Sky News:
Parade celebrates US Army anniversary – and Trump’s 79th birthday
US politician shot dead and another wounded – as suspect named

👉Listen to The World with Richard Engel and Yalda Hakim on your podcast app👈

Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.

With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.

Continue Reading

Politics

Bitcoin must upgrade or fall victim to quantum computing in 5 years

Published

on

By

Bitcoin must upgrade or fall victim to quantum computing in 5 years

Bitcoin must upgrade or fall victim to quantum computing in 5 years

Unless Bitcoin upgrades its core cryptography in the next five years, the trust it has built over 16 years could be wiped out by a single quantum attack. Urgent upgrades are needed to protect the world’s leading cryptocurrency.

Continue Reading

Trending