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.”
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.
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“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 £28bna 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”.
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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”.
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.”
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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.
Addressing the City Academy Voices choir directly, the bishop of Fulham said: “I write to apologise for the distress and offence I caused in bringing the concert to a premature end.
“This should not have happened … I also apologise for remarks which were made in haste, and which have understandably caused hurt and distress.”
Image: The bishop, in his dressing gown, gave the choir a dressing down
Mr Baker had demanded for the performance to stop because it was 10pm – and says he didn’t realise the choir had booked the church until 11pm.
In the statement obtained by Sky News, he added: “I have lived here on site at St Andrew’s for 10 years, for much of which City Academy has rehearsed and performed here.
“You have been, and continue to be, welcome – and I hope that you will be able to continue the relationship with us.
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“I can give you every assurance that the events of Friday evening will not recur, and I apologise again to performers (especially those unable to perform at the end of the evening) and the audience alike.”
Image: The choir performed their last song
The choir was performing to a 300-strong audience in Holborn when the lights were suddenly turned off, with Mr Baker declaring the concert was “over”.
A church employee then asked the crowd to leave quietly and for the musicians to step down from the stage, attracting boos from the audience.
The choir went on to perform one last song, an A cappella version of ABBA’s Dancing Queen, before bringing their show to a close.
One member of the audience, who was attending with his 10-year-old daughter, told Sky News he initially thought the interruption was a staged joke.
Benedict Collins had told Sky News: “This work deserves respect, not to be disparaged as a ‘terrible racket’. The people here had put their heart and soul into it.
“The bishop cut them off in midstream, preventing soloists who had worked their hardest from singing – and preventing the audience, which included people of all ages, from enjoying it to the end.”
The choir told Sky News it was “upsetting” that they were unable to finish their show as planned, but “hold no hard feelings and wish the bishop well”.
A spokesperson added: “If anyone is thinking of joining one of our choirs, the City Academy Voices rehearse on Mondays in central London. Dressing gowns optional.”
The Online Safety Act is putting free speech at risk and needs significant adjustments, Elon Musk’s social network X has warned.
New rules that came into force last week require platforms such as Facebook, YouTube, TikTok and X – as well as sites hosting pornography – to bring in measures to prove that someone using them is over the age of 18.
The Online Safety Act requires sites to protect children and to remove illegal content, but critics have said that the rules have been implemented too broadly, resulting in the censorship of legal content.
X has warned the act’s laudable intentions were “at risk of being overshadowed by the breadth of its regulatory reach”.
It said: “When lawmakers approved these measures, they made a conscientious decision to increase censorship in the name of ‘online safety’.
“It is fair to ask if UK citizens were equally aware of the trade-off being made.”
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What are the new online rules?
X claims the timetable for platforms to meet mandatory measures had been unnecessarily tight – and despite complying, sites still faced threats of enforcement and fines, “encouraging over-censorship”.
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“A balanced approach is the only way to protect individual liberties, encourage innovation and safeguard children. It’s safe to say that significant changes must take place to achieve these objectives in the UK,” it said.
A UK government spokesperson said it is “demonstrably false” that the Online Safety Act compromises free speech.
“As well as legal duties to keep children safe, the very same law places clear and unequivocal duties on platforms to protect freedom of expression,” they added.
Users have complained about age checks that require personal data to be uploaded to access sites that show pornography, and 468,000 people have already signed a petition asking for the new law to be repealed.
In response to the petition, the government said it had “no plans” to reverse the Online Safety Act.
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Why do people want to repeal the Online Safety Act?
Reform UK’s leader Nigel Farage likened the new rules to “state suppression of genuine free speech” and said his party would ditch the regulations.
Technology Secretary Peter Kyle said on Tuesday that those who wanted to overturn the act were “on the side of predators” – to which Mr Farage demanded an apology, calling Mr Kyle’s comments “absolutely disgusting”.
Regulator Ofcom said on Thursday it had launched an investigation into how four companies – that collectively run 34 pornography sites – are complying with new age-check requirements.
These companies – 8579 LLC, AVS Group Ltd, Kick Online Entertainment S.A. and Trendio Ltd – run dozens of sites, and collectively have more than nine million unique monthly UK visitors, the internet watchdog said.
The regulator said it prioritised the companies based on the risk of harm posed by the services they operated and their user numbers.
It adds to the 11 investigations already in progress into 4chan, as well as an unnamed online suicide forum, seven file-sharing services, and two adult websites.
Ofcom said it expects to make further enforcement announcements in the coming months.
Two siblings who drowned while on holiday in Spain have been named – with a fundraiser for their family reaching £40,000.
Ameiya and Ricardo Junior Parris, aged 13 and 11, died on Tuesday evening after getting into difficulty off Llarga beach in Salou, Catalonia.
Their father Ricardo tried to rescue them, but he also got into difficulty and was unconscious when he was pulled from the water. He was later released from hospital with a concussion.
Ricardo Senior and his partner, Shanice Del-Brocco, 31, were staying at the Hotel Best Negresco right by the beach with their six children when tragedy struck.
Image: Ameiya and Ricardo Junior have been described as “hilarious, sensitive and loving”. Pic: Kayla Del-Brocco/PA Wire
The construction worker from Birmingham had taken their two oldest children for one final swim while Shanice had taken the younger ones back to the hotel.
“They’d gone out. They were being sensible. They’re very good swimmers,” the children’s aunt, Kayla Del-Brocco, said.
“They knew it was late. However, they’d been doing this every day on holiday, so that day was no different. They didn’t go out far, but the current was just too strong and pulled them.”
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A hotel worker saw the siblings struggling in the water and called for help. When Shanice returned to the beach, emergency services were already at the scene, with Junior, nicknamed Joby, taken away in a helicopter.
“It’s breaking (Ricardo), if I’m honest, because he was in the water, and I know he said things to my sister like: ‘I had him, I had Joby in my arms, and we got smacked up the rocks, and that’s the last thing I remember,'” Shanice’s sister said.
Ricardo Senior suffered a “nasty concussion and some bumps and batters”, Ms Del-Brocco said, adding that he was the first to be rescued.
Image: Little Ameiya and her oldest brother Ricardo Junior. Pic: Kayla Del-Brocco/PA Wire
The couple were unable to see their children’s bodies until Thursday at the mortuary and are now waiting for them to be repatriated to the UK, which they were told “could be anything from seven to 15 days”, Ms Del-Rocco said.
“They are just numb. They’re holding each other up and keeping it together for the little ones at the minute; going through the motions and desperately waiting to come home now.”
The GoFundMe page to help cover the cost of repatriating the bodies of Ameiya and Ricardo Junior, which was set up by her cousin, has already raised around £40,000, which Ms Del-Rocco described as “phenomenally overwhelming”.
“Maya was intelligent, thoughtful, and growing into a strong young woman. Ricardo Junior was playful, kind, and always smiling. They brought so much love, laughter, and energy into the lives of everyone around them,” the fundraising page reads.
“Their absence has left an unbearable silence not just for their parents, but for their whole family, who were incredibly close and shared an unbreakable bond.”
Image: Ameiya and Ricardo Junior were doting older siblings. Pic: Kayla Del-Brocco/PA Wire
Ms Del-Brocco said that Ameiya and Junior, who were in Years 7 and 8 at North Birmingham Academy, were doting older siblings, with their mother describing them as “hilarious, sensitive and loving – the best big brother and sister anyone could want”.
Their aunt said that Ameiya, a talented runner with ambitions of going to the Olympics, was “unapologetically just herself” and “driven by being unique”.
Ricardo Junior was a “very, very special one-of-a-kind character” who wanted to become a famous YouTuber.
A Foreign, Commonwealth and Development Office spokesperson said: “We are supporting the family of two British children who have died in Spain and are in contact with the local authorities.”