Connect with us

Published

on

Rachel Reeves has defended her decision not to restore a cap on bankers’ bonuses, arguing businesses do not need “more chopping and changing”.

The shadow chancellor said that when the government scrapped the cap under Liz Truss, Labour did not “feel that was the right priority in that budget”.

But she said much stronger rules were now in place since the 2008 financial crash, when the cap was first introduced, and that it was no longer her priority to restore it.

“What I hear loud and clear from business is that what it will take to get them to invest in Britain is stability and the last thing they need is more chopping and changing,” she said.

“The chopping and changing has got to end if we’re going to give stability to business and that’s why we will not be bringing that back.”

Politics latest:
Labour ‘under no illusions about scale of task ahead’

Shadow chancellor Rachel Reeves addressing 400 business leaders at the Kia Oval.
Pic: PA
Image:
Shadow chancellor Rachel Reeves addressing 400 business leaders at the Kia Oval on 1 February 2024. Pic: PA

Addressing Labour’s business conference in central London this morning, Ms Reeves also announced she would not increase the headline rate of corporation tax of 25% during the first term of a Labour government but left the door open to changes in the rate in the future.

She said: “There have been 26 changes to our corporation tax arrangements in this parliament alone. We can’t go on like this.

“The next Labour government will make the pro-business choice and the pro-growth choice: We will cap the headline rate of corporation tax at its current rate of 25% for the next parliament.

“And should our competitiveness come under threat, if necessary we will act.”

Ms Reeves also said Labour would maintain full expensing and the annual investment allowance and would provide a “road map” for business taxation within the first six months of government.

Ms Reeves has sought to portray herself as pro-business during her time as shadow chancellor, in contrast to her predecessor John McDonnell, who led Labour’s economic policy when Jeremy Corbyn was the leader of the Opposition.

Will Labour stick to £28bn a year green pledge?

However, the shadow chancellor is facing scrutiny over Labour’s pledge to spend £28bn a year on green projects until 2030 if the party comes into power.

In a Q&A following her speech, Ms Reeves failed to commit to the policy, which some in Labour want Sir Keir Starmer to drop because it allows the Conservatives to cast doubt on the party’s commitment to fiscal discipline.

Asked by Sky News’s political editor Beth Rigby whether the pledge had become “an albatross around your neck” that “threatens to unravel all the hard work you’ve done to be trusted with economic competence”, Ms Reeves said there were “big opportunities to invest alongside business in the jobs and the industries of the future”.

Please use Chrome browser for a more accessible video player

Will Labour spend £28bn?

But she said it was “absolutely essential that all of our policies are consistent with our fiscal rules” and that the green prosperity plan “was no exception to that”.

The shadow chancellor said that after the next budget, the party will “set out our plans and ensure they are consistent with our fiscal rules because they will always take precedence to guarantee the economic security of family finances and of businesses as well”.

Labour leader Sir Keir Starmer and shadow chancellor Rachel Reeves during a visit to the London Stock Exchange Group, to outline Labour's plans to bring growth and stability back to Britain's economy. Picture date: Friday September 22, 2023.
Image:
Sir Keir Starmer and Rachel Reeves during a visit to the London Stock Exchange Group last year. Pic: PA

Tories attack Labour over bonus cap change

The cap on bankers’ bonuses was first introduced in the wake of the 2008 financial crisis to limit annual payouts to twice a banker’s salary, but it was scrapped by former chancellor Kwasi Kwarteng during Ms Truss’s short time as prime minister.

During Prime Minister’s Questions this week, Rishi Sunak seized on the issue to argue that voters “cannot trust a word he [Sir Keir Starmer] says”.

“I was genuinely surprised that, after recently and repeatedly attacking not just me but the government for lifting the bonus cap, the shadow chancellor has announced, just today, that she now supports the government’s policy on the bankers’ bonus cap.”

Read more:
Starmer promises to ‘fix stagnation’ in pitch to business

Labour reports to underpin new ‘party of business’ stance

Please use Chrome browser for a more accessible video player

Sunak: ‘It’s the same old Labour party’

Ms Reeves and other senior Labour figures had been vocal critics of the government’s decision to axe the cap during a cost of living crisis, saying only three months ago that the decision to allow unlimited bonuses to be earned again “tells you everything you need to know about this government”.

The issue has caused some division within Labour, with Anas Sarwar, the party’s leader in Scotland, previously criticising Ms Truss as a “Thatcher tribute act” who would rather “boost bankers’ bonuses than help those in need”.

He told reporters in Westminster today that he stood by his previous words but added: “You have got to look at it in the balance. We have got to inspire confidence for them to make the strategic investments, but we can’t return to a situation where they get away with it.

“I’m not here to defend bankers’ bonuses, I’m not here to defend banks. That is something the UK Treasury has got to keep an eye on.”

Stephen Flynn, the SNP’s leader in Westminster and Labour’s main opponent in Scotland, sarcastically praised Mr Sunak for convincing the Labour Party to agree to a “bleak future”, saying it was a “great achievement” for the government.

Continue Reading

UK

Families of British Air India crash victims ‘feel utterly abandoned’ and hit out at government

Published

on

By

Families of British Air India crash victims 'feel utterly abandoned' and hit out at government

The families of three of the British victims of last week’s Air India crash in Ahmedabad have criticised the UK government’s response to the disaster, saying they “feel utterly abandoned”.

It comes after an Air India Dreamliner crashed shortly after take-off from Ahmedabad airport in western India, killing 229 passengers and 12 crew. One person on the flight survived.

Among the passengers and crew on the Gatwick-bound aircraft were 169 Indian nationals, 53 Britons, seven Portuguese nationals and one Canadian national.

In a statement, the families of three British citizens who lost their lives said they were calling on the UK government to “immediately step up its presence and response on the ground in Ahmedabad”.

The families said they rushed to India to be by their loved ones’ sides, “only to find a disjointed, inadequate, and painfully slow government reaction”.

“There is no UK leadership here, no medical team, no crisis professionals stationed at the hospital,” said a family spokesperson.

“We are forced to make appointments to see consular staff based 20 minutes away in a hotel, while our loved ones lie unidentified in an overstretched and under-resourced hospital.

“We’re not asking for miracles – we’re asking for presence, for compassion, for action,” another family member said.

“Right now, we feel utterly abandoned.”

Read more:
Who are some of the crash victims?
Survivor recounts moments before impact

The families listed a number of what they called “key concerns”, including a “lack of transparency and oversight in the identification and handling of remains”.

They also demanded a “full crisis team” at the hospital within 24 hours, a British-run identification unit, and financial support for relatives of the victims.

A local doctor had “confirmed” the delays in releasing the bodies were “linked to severe understaffing”, according to the families, who also called for an independent inquiry into the UK government’s response.

“Our loved ones were British citizens. They deserved better in life. They certainly deserve better in death,” the statement added.

Sky News has approached the UK’s Foreign, Commonwealth and Development Office for comment.

Families and friends of the victims have already expressed their anger and frustration – mostly aimed at the authorities in India – over the lack of information.

Continue Reading

UK

Tributes paid to mother-of-four among two skydivers who died in ‘tragic accident’

Published

on

By

Tributes paid to mother-of-four among two skydivers who died in 'tragic accident'

A mother-of-four was among two skydivers who died following a “tragic accident” at an airfield in Devon.

Belinda Taylor was pronounced dead at the scene following Friday afternoon’s incident in the area of Dunkeswell Aerodrome near Honiton.

On Facebook, her partner Scott Armstrong wrote: “I miss you so much, you were my best friend.

“Thank you for everything you’ve done for me, from making my children feel at home to putting up with my mess.

“… there’s just so much that I don’t have the words to express it.

“I feel so lost. I don’t know where home is without you.”

Dunkeswell Aerodrome. Pic: Google Street View
Image:
Dunkeswell Aerodrome near Honiton, Devon. Pic: Google Street View

Ms Taylor’s eldest son, Connor Bowles, paid tribute to a “selfless woman” who was also a grandmother to two young children.

Thanking investigators for their work so far, he told DevonLive: “She will be deeply missed and will leave an everlasting impression on all those she has met in life.”

The identity of the second skydiver who died is yet to be made public, but their family has been informed.

British Skydiving has confirmed it will be investigating the incident – with a report sent to the coroner, the Civil Aviation Authority and the police.

Read more UK news:
Woman to head MI6 for the first time
Cost of rural crime in Wales is surging

In a statement, SkydiveBuzz, which operates at the airfield, said its “deepest condolences go out to the families, friends and everyone affected by this devastating event”.

A spokesperson added: “Safety is, and always has been, our top priority. We are fully cooperating with the investigation and continue to uphold the highest possible standards in everything we do.

“No further details will be provided at this time. We respectfully ask for privacy for all those affected, including our team, during this incredibly difficult time.”

Continue Reading

UK

Career spy Blaise Metreweli to become first woman to head MI6

Published

on

By

Career spy Blaise Metreweli to become first woman to head MI6

Career spy Blaise Metreweli will become the first woman to head MI6 in a “historic appointment”, the prime minister has announced.

She will take over from Sir Richard Moore as the 18th Chief, also known as “C”, when he steps down in the autumn.

“The historic appointment of Blaise Metreweli comes at a time when the work of our intelligence services has never been more vital,” Sir Keir Starmer said in a statement released on Sunday night.

“The United Kingdom is facing threats on an unprecedented scale – be it aggressors who send their spy ships to our waters or hackers whose sophisticated cyber plots seek to disrupt our public services.”

Of the other main spy agencies, GCHQ is also under female command for the first time.

Anne Keast-Butler took on the role in 2023, while MI5 has previously twice been led by a woman.

Until now, a female spy chief had only headed MI6 – also known as the Secret Intelligence Service (SIS) – in the James Bond movies.

A motorboat passes by the MI6 building in Vauxhall, London. Pic: Reuters
Image:
Blaise Metreweli is the first woman to be named head of MI6. Pic: Reuters

Dame Judi Dench held the fictional role – called “M” in the films instead of “C” – between 1995 and 2015.

Ms Metreweli currently serves as “Q”, one of four director generals inside MI6.

The position – also made famous by the James Bond films, with the fictional “Q” producing an array of spy gadgets – means she is responsible for technology and innovation.

Ms Metreweli, a Cambridge graduate, joined MI6 in 1999.

Unlike the outgoing chief, who spent some of his service as a regular diplomat in the foreign office, including as ambassador to Turkey, she has spent her entire career as an intelligence officer.

Much of that time was dedicated to operational roles in the Middle East and Europe.

Ms Metreweli, who is highly regarded by colleagues, also worked as a director at MI5.

Read more:
Ex-government contractor charged under Official Secrets Act
The Wargame podcast: What if Russia attacked the UK?
Chancellor dismisses ‘hurt feelings’ after grooming gangs inquiry U-turn

In a statement, she said she was “proud and honoured to be asked to lead my service”.

“MI6 plays a vital role – with MI5 and GCHQ – in keeping the British people safe and promoting UK interests overseas,” she said.

“I look forward to continuing that work alongside the brave officers and agents of MI6 and our many international partners.”

Sir Richard said: “Blaise is a highly accomplished intelligence officer and leader, and one of our foremost thinkers on technology. I am excited to welcome her as the first female head of MI6.”

Continue Reading

Trending