‘True’ that government tax cuts benefit the wealthiest, says finance minister Chris Philp
A government minister has admitted that scrapping the top rate of income tax would benefit only the wealthy.
Speaking to Sky News, the chief secretary to the Treasury Chris Philp said it was “true” that getting rid of the 45p rate would only help the better off.
But he claimed it was “very often those are people who are internationally mobile – they can choose where to locate people… and we want those people to locate here in the UK”.
UK economy latest news: Minister insists government won’t change course
Mr Philp also said he “respectfully disagrees” with the IMF, which had said tht the government’s economic plan would create more inequality in the UK.
His comments follow turmoil in the markets after the statement to the Commons on Friday by the chancellor Kwasi Kwarteng.
The “fiscal event” included tax cuts, such as scrapping the 44p rate for those earning over £150,000, reducing the basic rate of income tax by 1p and cancelling the planned increase to corporation tax.
But it sent the economy into a spin as economists worried about the levels of borrowing the Treasury was committing to.
On Wednesday, the Bank of England was forced to intervene, launching an emergency government bond-buying programme to prevent borrowing costs from spiralling out of control and stave off a “material risk to UK financial stability”.
Asked whether the government had made any mistakes, Mr Philp said “no one’s perfect”, but he added: “I’m not going to sort of apologise for having a plan to grow the UK’s economy.”
He also defended Mr Kwarteng, who has been facing criticism, not just from economists – including Liz Truss’s own external adviser, Gerard Lyons – but from Tory MPs too.
“The chancellor is in constant contact with the markets,” he said. “He’s meeting the governor of the Bank of England on a very regular basis.”
Please use Chrome browser for a more accessible video player
Is Liz Truss a dangerous PM?
‘Amateur bunch need to get back to their offices’
The government is facing demands from opposition parties to recall parliament from its conference recess to deal with the economic problems.
At the end of his party’s conference on Wednesday, the Labour leader Sir Keir Starmer called on Mr Kwarteng to reverse Friday’s announcements “before any more damage is done”, telling Sky News that Ms Truss was a “danger” to the economy.
Read more:
What are bonds, how are they different to gilts and where do they fit in the mini-budget crisis?
Your quick guide to what’s going on with the economy
The Liberal Democrat leader Sir Ed Davey also told Sky News that it was “a totally unnecessary crisis… caused by the incompetence of this Conservative government” and the Tories should cancel their upcoming conference.
He said Mr Philp was “was blaming everyone else but the government and no one believes him – no one believes this Conservative government anymore. They’ve lost total credibility.”
Click to subscribe to the Sky News Daily wherever you get your podcasts
Sir Ed added: “It is no good Conservative ministers going off to their conference next week, going to their cocktail parties, quaffing champagne while the country is in crisis.
“Liz Truss, Kwasi Kwarteng and the rest of this amateur bunch need to get back to their offices, stop their conference and sort this mess out – come to parliament and be held accountable.”
Sky News will have a special programme about the crisis at 12pm with economics and data editor Ed Conway, City editor Mark Kleinman and business presenter Ian King. From 1.30pm they’ll be answering your finance questions live
A 31-year-old man has been arrested on suspicion of murder after an elderly couple died following a fire at their home in St Helens.
Peter Eric Greener, 77, known as Eric, and his partner Sheila Jackson, 83, were caught in the blaze at their home on South John Street in the early hours of Tuesday.
Mr Greener died on Wednesday, while Ms Jackson died on Thursday.
Eric Greener. Pic: Merseyside Police
Sheila Jackson. Pic: Merseyside Police
Merseyside Police said an accelerant was used to start the fire.
On Sunday, the force said the suspect from St Helens had been arrested on suspicion of murder and remains in custody for questioning.
Read more from Sky News:
Man tells of dramatic escape from capsized tourist boat
Catching a ‘sadistic’ serial killer
Detective Superintendent Rachel Wilson said: “Although an arrest has been made, I would like to take this opportunity to remind people to pass on information directly to police or anonymously via Crimestoppers, and not to comment or post in any way which jeopardises this ongoing work.”
DS Wilson said “extensive enquiries” continue.
She added: “And to that end we are still appealing for anyone with information to come forward, particularly if you live in the area of South John Street and recall seeing or hearing anything suspicious at around the time of the incident.
“Please do not assume what you know has already been reported to us, as we can quickly make that assessment.”
UK
How e-bike riders are doing double the speed limit – and many of them work for fast food delivery firms
It’s lunchtime on Birmingham’s New Street.
Close to its many restaurants, food delivery riders are congregating on their bikes.
The area is packed with shoppers and workers.
PC Paige Gartlan is approaching with other officers. She’s on the lookout for illegally modified e-bikes – and she knows she’ll find them here.
“You can physically tell by looking at the bike that it’s generally going to be illegal – the battery pack is taped on to the sides and generally the size of the motor that’s on the back wheel,” she explains.
Sky News has been invited on an operation by West Midlands Police to find these bikes and get them off the streets.
PC Gartlan has been hit by one before. She’s had to tackle a rider to the floor after he drove into her.
Within minutes, she’s spotted a suspicious-looking bike. The rider makes a run for it – followed by plain-clothed officers.
PC Gartlan tests the bike – it’s showing a top speed of 52km/hr on the speedometer – just over 30mph.
PC Paige Gartlan with a seized e-bike
The speed limit for e-bikes in the UK is 15.5mph when using electric power for assistance.
I look up the street and another two riders have been detained. In less than an hour, officers have confiscated four bikes – all were being ridden by fast food delivery drivers.
The commotion is attracting a lot of attention.
“They are dangerous,” Sandra, who has just finished work, tells me.
Demoz had his bike taken by police
She’s stood watching the riders being questioned. She says she’s had near-misses herself and is worried for the safety of the elderly and children.
It’s not just West Midlands police officers here – immigration officials are carrying out checks too. They’re involved in a nationwide operation, which has seen more than 7,000 arrests in the last year – a 50% increase on last year.
Matthew Foster, the immigration enforcement lead officer for the West Midlands, tells me they’ve already found one individual who has entered the UK unlawfully.
“He’s been detained,” he says, “to affect his removal from the UK.”
Further down the street, police are loading illegally modified bikes on to a van – they’re destined to be crushed. One of them had belonged to Demoz.
Read more:
Non-folding e-bikes banned on London Tube
E-bike and e-scooter crimes soar 730% in five years
An e-bike seized by West Midlands Police
He’s on his way home, carrying a big box with the logo of one of the main fast food delivery firms on it.
He tells me he used to have an illegal bike, but he thought his new one was legal.
“I make a mistake, I have to say sorry, I will do better for the future,” he says.
I get in touch with the big delivery firms; Deliveroo, Uber Eats, and Just Eat.
Their representatives say they constantly remind workers of their safety obligations, and that they’re all working closely with the government to increase security checks on riders.
As he leaves, Demoz, now bike-free, tells me he’s thinking of changing his job.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike