‘For public to judge’ if PM’s first 100 days a success – Downing Street

Published

3 weeks ago

October 11, 2024

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It is “for the public to judge” whether Labour’s first 100 days of government has gone well, Downing Street said amid Sir Keir Starmer’s sinking poll ratings.

The prime minister’s official spokesperson declined to say if his first three months in office have been a success, ahead of the milestone being hit tomorrow.

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PM’s approval rating drops

Governments traditionally seek to set a positive, dynamic tone in their first 100 days, targeting quick, visible actions that can establish a narrative about what they are doing and where they are going.

But Sir Keir has struggled to do this amid a row over donations and freebies and backlash within his own ranks about policies like the cut to the winter fuel payment, which have damaged his approval ratings.

Asked about whether the first 100 days could be viewed as a success, a Number 10 spokeswoman said: “That is for the public to judge. The government is focused on delivery and the action that it takes.”

A drinks reception to celebrate the milestone was also ruled out.

Multiple polls suggest Labour’s popularity with the public has plunged since its general election landslide in July.

A survey published today by YouGov found 59% of people disapproved of its record so far, while just 18% approved.

Two policies in particular drew anger – scrapping the universal winter fuel allowance and releasing prisoners early to ease overcrowding.

Ministers blamed the measures on their inheritance from the Tories, including a £22bn “blackhole” in the public finances and a prison system on the brink of collapse.

The YouGov poll showed there was majority support for other policies, such as making a pay deal with junior doctors, lifting the ban on onshore wind farms, keeping the two-child benefit cap and suspending some arms sales to Israel.

But overall, four in ten said the country is in a worse state since the election, and nearly half of those who voted Labour said they had positive expectations but feel let down so far.

In a double whammy of bad polling, research by Ipsos found over half (52%) of Britons are unfavourable towards Sir Keir – the highest level since he became Labour leader.

Labour are also leading the Conservatives by just one point, down 11% from the summer, according to a survey by More In Common published earlier this week.

The prime minister’s spokeswoman cited reform of workplace rights and “action to deliver growth” when asked to list some of the new government’s achievements.

Speaking later to reporters, Sir Keir pointed to the first meeting of the Council of Nations and Regions, featuring devolved leaders from across the UK, as well as promises of up to £24bn investment in green projects.

He refused to be drawn on a separate paused £1bn investment into a port in London following comments made by ministers about P&O Ferries, saying a summit on Monday, when the funding was due to be announced, will still attract global financiers which will be “very good for the country”.

Sir Keir also dodged a question on the whereabouts of Sue Gray, who was not at the meeting of devolved leaders today despite being appointed as an envoy to the “nations and regions” following her resignation as his chief of staff.

The government will look to the budget on 30 October as an opportunity to set a more positive narrative about its direction, amid speculation Capital Gains Tax could be increased to fund crumbling public services.

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Immutable pledges to fight after SEC ‘sprayed and prayed’ Wells notice

Published

6 hours ago

November 1, 2024

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Immutable pledges to fight after SEC ‘sprayed and prayed’ Wells notice

Blockchain gaming platform Immutable says it received a Wells notice from the SEC over alleged securities law violations within “hours” of its first interaction with the regulator.

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‘Hong Kong’s FTX’ victims win lawsuit, bankers bash stablecoins: Asia Express

Published

8 hours ago

October 31, 2024

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‘Hong Kong’s FTX’ victims win lawsuit, bankers bash stablecoins: Asia Express

Victims of ‘Hong Kong’s FTX’ take aim at $29M seized by police, central bankers bash stablecoins, crypto scammers busted over luxury condo.

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Pound falls sharply and government gilt interest rates up after major budget tax rises

Published

9 hours ago

October 31, 2024

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Pound falls sharply and government gilt interest rates up after major budget tax rises

The pound has fallen sharply after the chancellor announced the biggest tax rises in a generation.

Over the last three days, sterling has dropped by 1.2% (in trade weighted terms) – the biggest fall in 18 months.

Between around 1.30pm and 5.30pm today, versus the dollar, it dropped from about 129.9c to the pound to about 128.6c. In the same period, against the euro, it went from 119.3c to the pound to about 118.4c.

In addition, yields for 10-year UK bonds – the cost or interest rate charged for long-term government borrowing – have gone past 4.5% for the first time in a year.

Ed Conway, Sky News’s economics and data editor, said those yields are “pretty much halfway towards the danger zone” – a zone identified by the Office for Budget Responsibility (OBR).

However, he said other European bonds had risen, too. “But the UK does seem to be moving faster than most of the others,” he added.

While cautioning that the budget is still very new, Conway said the “upshot” is that Rachel Reeves’s “room for manoeuvre” is already diminishing “because of market moves”.

Markets are reacting in “quite a violent way”, Conway said.

“It’s really unusual to see this after a budget, and that will have a bearing on how much this government will be able to afford in the future,” he added.

A sudden rise in the yields of 10-year UK bonds followed Liz Truss’s disastrous “mini-budget” of September 2022, which led to a surge in the cost of borrowing for ordinary consumers, while the pound slumped to a 37-year low against the dollar.

It is “certainly not like that at the moment”, Conway said.

Nonetheless, market movements will be “enough to really concern people at the Treasury”, he added, “because it suggests that a lot of traders are looking at how much money this government is borrowing, and they’re saying: ‘Hang on, maybe we’re going to charge you more’.”

While Conway said it does not feel like a “crisis point”, he said the “calculus for this government” may be changing.

Jack Meaning, UK chief economist at Barclays, said market reaction was “materially different” to what happened in 2022.

Bond yields since Ms Reeves’s budget are up by about 0.3%, while in 2022 the rise was about 1.5%, he said.

The conversation Barclays is having with its customers is also different to that in 2022, Mr Meaning added.

At that time, people were wondering whether a “big crisis point” had been reached.

This time, he said the focus is on comments from the OBR about a potential rise in inflation, and the potential knock-on effect as the Bank of England makes decisions on interest rates in the next few months.

The prime minister’s official spokesperson refused to talk about bond prices.

“We don’t comment on market movements,” they said.

“The chancellor has been very clear that first and foremost, this budget has been about restoring fiscal stability, and she’s outlined two new robust fiscal rules, which put public finances on a sustainable path.”