Liberal Democrat leader Sir Ed Davey has called for a tax on the wealthiest instead of cutting support for “struggling pensioners”.
Speaking after arriving at the Lib Dem conference in Brighton on a jet ski, Sir Ed said his party is the only one offering up a solution on how to “plug the awful financial mess the Conservatives left us with”.
More than 10 million pensioners will lose winter fuel payments under government plans which have been heavily criticised by opposition MPs, some Labour MPs and charities.
Sir Ed told Sky News he would have levied a capital gains tax against the wealthiest instead.
Image: Sir Ed Davey arrived at the Lib Dem conference in Brighton on a jet ski. Pic: PA
“The Conservatives won’t admit there’s a problem, there is a problem, the financial deficit is large, the Conservatives ran the budget in a very bad way, there needs to be a solution to that,” he said.
“But withdrawing winter fuel payments from struggling pensioners isn’t the solution so we’ve put forward in the House of Commons our solution.
“We’ve said, look at the capital gains tax on the very, very wealthiest.
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“So there are alternatives to this. The government doesn’t have to do this.
“It has to clear up the Conservatives’ mess. But there are other ways, much fairer ways to do that.”
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Image: Sir Ed continued carrying out stunts as he arrived in Brighton
Sir Ed said his party would also reverse the tax cut the Conservatives gave banks “to deal with the deficit and avoid these painful policies”.
He said it is possible to give the winter fuel payments to all but the wealthiest pensioners and this has been done before with child benefit.
“But that’s not what the government are proposing,” he added.
“We’re going to be the best opposition in parliament, far better than the Conservatives by being constructive, by putting forward alternatives,” Sir Ed said.
“And I think we’re the only group of people doing that, saying this is where you should get the money from to plug the awful financial mess left by the Conservatives.
Labour’s first conference as a party of government in more than a decade was always going to be a carefully calibrated affair.
Too much celebration and jubilation a likely no-no, given the sombre picture Sir Keir Starmer has been painting since moving into Downing Street.
But the party probably hoped to avoid a full-on union showdown.
And yet, that looks to be on the horizon.
The motion being submitted by Unite is scathing – lashing out at the decision to cut winter fuel payments and squaring up to the current gloomy tone being adopted by the government.
Last week’s Commons vote saw just a limited rebellion among MPs.
If this motion makes it to the conference floor, members may not be so loyal to their leader.
That’s not to say any of this should – or will – bother Downing Street.
With a huge majority in parliament, Sir Keir Starmer can afford to rile a few allies now.
Providing he can get them back on side before 2029.
The union’s motion calls the cuts “cruel” and goes on to say: “We need a vision where pensioners are not the first to face a new wave of cuts.”
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.
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.
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“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.”
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.
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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.