Connect with us

Published

on

The UK economy is “headed for the worst of all worlds” as businesses expect activity to fall at the start of next year, according to the Confederation of British Industry (CBI).

The industry group’s growth indicator survey found that private sector firms expect to cut down on hiring, reduce output and for prices to rise in the first three months of 2025.

One of the main reasons given by businesses for the poor outlook was Chancellor Rachel Reeves‘ decision to raise employers’ national insurance contributions (NIC) – which is expected to raise around £25bn a year.

While the chancellor accepted the budget decision will not be “easy” for businesses, she said earlier this month the government “made a commitment during the general election… that we wouldn’t increase taxes on working people”.

Please use Chrome browser for a more accessible video player

UK economy declined in October

Alpesh Paleja, the CBI’s interim deputy chief economist, said: “There is little festive cheer in our latest surveys, which suggest that the economy is headed for the worst of all worlds – firms expect to reduce both output and hiring, and price growth expectations are getting firmer.

“Businesses continue to cite the impact of measures announced in the budget – particularly the rise in employer NICs – exacerbating an already tepid demand environment.”

He added that firms are looking for Labour “to boost confidence and to give them a reason to invest” in 2025, “whether that’s long overdue moves to reform the apprenticeship levy, supporting the health of the workforce through increased occupational health incentives or a reform of business rates”.

More on Labour

The CBI’s poll, based on responses of 899 companies between 25 November and 12 December, also found expectations for economic growth were at their weakest since November 2022, in the aftermath of Liz Truss’s resignation as prime minister.

Read more on economy:
Is chancellor playing fast and loose with inflation?
Low Christmas sales in key month, ONS finds

Please use Chrome browser for a more accessible video player

Why has growth ground to a halt?

Minister defends budget

It comes after the economy shrank by 0.1% in October, according to Office for National Statistics (ONS) figures, for the second month in a row.

Lucy Powell, leader of the House of Commons, told Sky News’ Sunday Morning with Trevor Phillips the ONS figures were “disappointing” and said that “of course we want to see these things (economic growth) happening faster”.

The Labour MP for Manchester Central said, however: “This is a bit like turning round some huge oil tanker…

“We take a fundamental view here about fixing the foundations, which is about trying to bring some economic stability, which means making sure that the budget adds up, which is something that we didn’t inherit.

“We inherited this big black hole in the public finances which we had to put right.”

Ms Powell then defended raising employers’ NICs, acknowledging while “it was a difficult decision,” it was made “to get money into the front line” of the NHS and other services.

Read more from Sky News:
Woman set on fire while on New York subway
Labour’s polling collapse is historic, but Farage has seen bigger
Albania to ban TikTok for a year

Responding to the CBI’s survey, shadow business secretary Andrew Griffith said: “Since taking office, the chancellor has made this country a hostile climate for aspiration, for investment and for growth.”

The Conservative MP added: “Rachel Reeves’s tax-raising spree and trash-talking her economic inheritance are literally killing businesses and jobs.

“If there is a recession – and based on these CBI expectations that seems increasingly likely – it will be one made in Downing Street. Labour needs to urgently change course before the damage they are doing becomes even greater.”

Continue Reading

Politics

Parliament urged to begin mandatory DBS criminal record checks on new MPs and peers

Published

on

By

Parliament urged to begin mandatory DBS criminal record checks on new MPs and peers

MPs and peers could be forced to submit to criminal record checks under proposals submitted by a new Labour MP.

In a letter seen by Sky News, Jo White urged the leader of the Commons to examine whether a new committee set up to modernise parliament should force all new members to have checks due to their access to young and vulnerable people.

She suggests in-depth background checks by the Disclosure and Barring Service – commonly known as DBS checks – as the initial stages of introducing MPs to parliament.

Candidates are currently banned from running to be an MP if they have been jailed for more than a year in the UK.

However, there is no requirement for DBS checks, something most other jobs require when applying for positions working with vulnerable people.

Ms White previously submitted an early-day motion on this issue, with cross-party signatures including 13 other Labour MPs supporting her motion.

In her letter to the committee, the Bassetlaw MP writes: “It is a privilege that, as parliamentarians, we can work with local schools, care homes and hospitals, but we must be proactive in preserving this trust.

More from Politics

“Implementing a mandatory check would protect both the people we visit and ourselves. It would be key to maintaining public trust and high workplace standards across the estate and in our constituencies.”

DBS checks are standard practices for GPs, nurses, teachers and other professions. They let potential employers know if a candidate has a criminal record or is banned from working with children or vulnerable adults.

Many local authorities already run DBS checks on elected officials but it’s not standard practice in parliament.

Prospective MPs can stand for election despite having a criminal record or appearing on the child-barred list or adult-barred list unless they have served a prison term over 12 months.

In fact, they do not need to disclose any criminal behaviour to the public prior to becoming a candidate.

The main vetting process before entering the House of Commons is done through political parties, who set their own rules for carrying out any such checks.

MP James McMurdock (right) was convicted of assaulting his then girlfriend in 2006. Pic: PA
Image:
MP James McMurdock (right) was convicted of assaulting his then girlfriend in 2006. Pic: PA

None of the Reform UK MPs have signed the early-day motion and leader Nigel Farage said last election there was “no vetting” of candidates.

This has already caused some controversy.

One Reform MP, James McMurdock, was jailed 19 years ago for repeatedly kicking his then girlfriend, according to court documents disclosed by The Times.

The South Basildon and East Thurrock MP attacked her in 2006 while drunk outside a nightclub and spent 21 days in a young offenders’ institution.

He had not publicly disclosed the conviction and described it as a “teenage indiscretion” when asked about the incident last year.

Under new rules, new MPs might have to fully disclose their criminal past.

Read more from Sky News:
Musk ‘misinformed’ on grooming gangs – minister
Nick Clegg to step down from Meta role

The creation of a modernisation committee was a Labour manifesto promise and now sits as a cross-party group tasked with reforming House of Commons procedures and improving standards.

The committee said it would not be commenting on submissions until it’s had time to fully consider all options, but is due to publish an initial report early this year.

Continue Reading

Politics

Nigel Farage rejects Tommy Robinson after support from Elon Musk

Published

on

By

Nigel Farage rejects Tommy Robinson after support from Elon Musk

Nigel Farage has said Tommy Robinson “won’t be” joining Reform UK after Elon Musk showed support for the jailed far-right activist on social media.

The billionaire owner of X, who has spoken positively about Reform UK and is reportedly considering making a donation to the party, has been critical of the government’s handling of child sexual exploitation across a number of towns and cities more than a decade ago.

While the Reform UK leader described the billionaire owner of X as “an absolute hero figure, particularly to young people in this country”, he distanced himself and his party from Robinson, who is currently serving an 18-month prison sentence for contempt of court.

Mr Musk endorsed the far-right activist and claimed Robinson was “telling the truth” about grooming gangs, writing on X: “Free Tommy Robinson”.

Speaking to broadcasters ahead of the start of Reform UK’s East Midlands Conference tonight, party leader Mr Farage did not directly address Mr Musk’s comments, but said: “He has a whole range of opinions, some of which I agree with very strongly, and others of which I’m more reticent about.”

He went on to say that having Mr Musk’s support is “very helpful to our cause”, describing him as “an absolute hero figure, particularly to young people in this country”.

He continued: “Everyone says, well, what about his comments on Tommy Robinson? Look, my position is perfectly clear on that. I never wanted Tommy Robinson to join UKIP, I don’t want him to join Reform UK, and he won’t be.”

Reform UK leader Nigel Farage speaking to broadcasters
Image:
Reform UK leader Nigel Farage has said that Tommy Robinson will not be joining the party

Read more:
Musk’s comments ‘misjudged’ and ‘misinformed’, says health secretary

Later on GB News, Mr Farage added that Mr Musk “sees Robinson as one of these people that fought against the grooming gangs”.

“But of course the truth is Tommy Robinson’s in prison not for that, but for contempt of court,” he said.

Mr Farage added: “We’re a political party aiming to win the next general election. He’s not what we need.”

How did Elon Musk become involved?

The online campaign from Mr Musk began after it emerged that Home Office minister Jess Phillips had denied requests from Oldham Council to lead a public inquiry into child sexual exploitation in the borough, as the Conservatives had done in 2022.

In a letter to the authority in Greater Manchester, Ms Phillips said she believes it is “for Oldham Council alone to decide to commission an inquiry into child sexual exploitation locally, rather than for the government to intervene”.

An Oldham Council spokesman previously said: “Survivors sit at the heart of our work to end child sexual exploitation. Whatever happens in terms of future inquiries, we have promised them that their wishes will be paramount, and we will not renege on that pledge.”

Read more:
Is Kemi Badenoch dancing to Elon Musk’s tune?
Labour lose control of council as 20 councillors quit

Mr Musk posted on X multiple times about the scandal, and claimed Sir Keir Starmer had failed to bring “rape gangs” to justice when he led the Crown Prosecution Service (CPS). In 2013, Sir Keir introduced new guidelines for how child sexual abuse victims should be treated and how a case should be built and presented in court.

The SpaceX and Tesla boss also endorsed posts about Robinson.

Robinson, who is 42 years old and whose real name is Stephen Yaxley-Lennon, admitted at Woolwich Crown Court in October to breaching an injunction banning him from repeating libellous allegations against a Syrian refugee schoolboy, after he was successfully sued for libel in 2021.

Continue Reading

Politics

Base mulls launching tokenized COIN stock

Published

on

By

Base mulls launching tokenized COIN stock

The plans are not yet concrete, as Coinbase is awaiting regulatory clarity on securities tokenization.

Continue Reading

Trending