‘A total farce’: Labour furious as govt reveals cost of Rwanda policy

Published

11 months ago

December 8, 2023

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Rishi Sunak is facing fresh pressure over his Rwanda policy after it emerged the scheme has already cost £240m, despite never being used.

The government spent a further £100m in the 2023-24 financial year while flights remained grounded amid a series of legal setbacks – on top of the £140m previously paid out.

According to a letter from the Home Office to committee chairs, ministers expect additional costs of £50m in the coming year, which would bring the total to £290m.

Politics – latest: Rwanda vote not about leadership, says Rishi Sunak

It comes just hours after Mr Sunak vowed to “finish the job” of reviving his plan to deport some asylum seekers to Kigali – despite the prospect of a bitter parliamentary battle.

Home Office official Matthew Rycroft wrote to Home Affairs Committee chair Dame Diana Johnson, and Public Accounts Committee chair Dame Meg Hillier, on Thursday.

His letter said: “Ministers have agreed that I can disclose now the payments so far in the 2023-24 financial year.

“There has been one payment of £100m, paid in April this year as part of the Economic Transformation and Integration Fund mentioned above.

“The UK government has not paid any more to the government of Rwanda thus far.

“This was entirely separate to the treaty – the government of Rwanda did not ask for any payment in order for a treaty to be signed, nor was any offered.”

Labour described the revelation as “incredible” – with shadow home secretary Yvette Cooper saying: “How many more blank cheques will Rishi Sunak write before the Tories come clean about this scheme being a total farce?

“Britain simply can’t afford more of this costly chaos from the Conservatives.”

The government hopes to rush emergency legislation through parliament for MPs and peers to declare that Rwanda is a safe destination for asylum seekers.

Mr Sunak earlier insisted his new law would end the “merry-go-round of legal challenges”.

In the Commons, Tory right-wingers may seek to beef up the bill by calling for it to effectively override international law.

MPs will get their first chance to debate and vote on the Safety of Rwanda (Asylum and Immigration) Bill on Tuesday.

The prime minister dismissed suggestions he will make it a confidence vote, meaning that MPs would have the whip withdrawn if they defied him.

Under the government’s plan first unveiled in April 2022, people who arrive in the UK by irregular means – such as on small boats – could be sent on a one-way trip to Rwanda, where the Kigali government would decide on their refugee status.

Politics

NY Supreme Court allows Greenidge to keep mining, but challenges remain

Published

33 mins ago

November 15, 2024

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NY Supreme Court allows Greenidge to keep mining, but challenges remain

The state Department of Environmental Conservation botched the permitting process, but it still gets a do-over.

Politics

UK economy grows by 0.1% between July and September – slower than expected

Published

33 mins ago

November 15, 2024

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UK economy grows by 0.1% between July and September - slower than expected

The UK economy grew by 0.1% between July and September, according to the Office for National Statistics (ONS).

However, despite the small positive GDP growth recorded in the third quarter, the economy shrank by 0.1% in September, dragging down overall growth for the three month period.

The growth was also slower than what had been expected by experts and a drop from the 0.5% growth between April and June, the ONS said.

Economists polled by Reuters and the Bank of England had forecast an expansion of 0.2%, slowing from the rapid growth seen over the first half of 2024 when the economy was rebounding from last year’s shallow recession.

And the metric that Labour has said it is most focused on – the GDP per capita, or the economic output divided by the number of people in the country – also fell by 0.1%.

Reacting to the figures, Chancellor of the Exchequer Rachel Reeves said: “Am I satisfied with the numbers published today? Of course not. I want growth to be stronger, to come sooner, and also to be felt by families right across the country.”

“It’s why in my Mansion House speech last night, I announced some of the biggest reforms of our pension system in a generation to unlock long term patient capital, up to £80bn to help invest in small businesses and scale up businesses and in the infrastructure needs,” Ms Reeves later told Sky News in an interview.

“We’re four months into this government. There’s a lot more to do to turn around the growth performance of the last decade or so.”

New economy data tests chancellor’s growth plan

The sluggish services sector – which makes up the bulk of the British economy – was a particular drag on growth over the past three months. It expanded by 0.1%, cancelling out the 0.8% growth in the construction sector.

The UK’s GDP for the most recent quarter is lower than the 0.7% growth in the US and 0.4% in the Eurozone.

The figures have pushed the UK towards the bottom of the G7 growth table for the third quarter of the year.

It was expected to meet the same 0.2% growth figures reported in Germany and Japan – but fell below that after a slow September.

The pound remained stable following the news, hovering around $1.267. The FTSE 100, meanwhile, opened the day down by 0.4%.

The Bank of England last week predicted that Ms Reeves’s first budget as chancellor will increase inflation by up to half a percentage point over the next two years, contributing to a slower decline in interest rates than previously thought.

Announcing a widely anticipated 0.25 percentage point cut in the base rate to 4.75%, the Bank’s Monetary Policy Committee (MPC) forecast that inflation will return “sustainably” to its target of 2% in the first half of 2027, a year later than at its last meeting.

The Bank’s quarterly report found Ms Reeves’s £70bn package of tax and borrowing measures will place upward pressure on prices, as well as delivering a three-quarter point increase to GDP next year.